UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6265
---------------------
Nuveen Pennsylvania Investment Quality Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: June 30
------------------
Date of reporting period: December 31, 2006
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
SEMIANNUAL REPORT December 31, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN NEW JERSEY
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY
PREMIUM INCOME
MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA
INVESTMENT QUALITY
MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA
PREMIUM INCOME
MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVY
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the six-month period covered
by this report your Fund continued to provide you with attractive monthly
tax-free income. For more details about the management strategy and
performance of your Fund, please read the Portfolio Manager's Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well balanced investment portfolio.
In addition to providing attractive tax-free monthly income, a municipal
bond investment like your Fund may help you achieve and benefit from
greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with investing.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 15, 2007
Nuveen Investments Municipal Closed-End Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
COMMENTS
Portfolio manager Cathryn Steeves discusses key investment strategies and the
six month performance of the eight Funds. Cathryn, who joined Nuveen in 1996,
assumed portfolio management responsibility for the New Jersey and Pennsylvania
Funds in June 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH PERIOD
ENDED DECEMBER 31, 2006?
As the yield curve flattened during this six-month period, we continued to
emphasize a disciplined approach to duration1 management and yield curve
positioning. In selecting new additions for our portfolios, our activity focused
mainly on attractively priced bonds in the longer range of the yield curve. We
believed that bonds in this part of the curve generally offered better value and
reward opportunities more commensurate with their risk levels. To help us
maintain the Funds' durations within our preferred strategic range, we also were
selectively selling holdings with shorter durations in all the Funds.
At the same time, we maintained the Funds' weightings of lower-quality bonds.
However, since these types of bonds performed well over this period, we
generally found fewer attractive purchase opportunities in the market.
In the New Jersey Funds, we added health care bonds, with an emphasis on
hospital bonds. In the Pennsylvania Funds, we added higher education and charter
school bonds, as well as health care bonds such as Continuing Care Retirement
Community (CCRC) securities. In NQP, NPY, NXM and NVY, we also purchased inverse
floaters which had the benefit of increasing the Funds' distributable income and
bringing the duration closer to our preferred strategic range. In addition, we
also purchased zero coupon bonds which added incremental income as well.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 12/31/06
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NEW JERSEY FUNDS
--------------------------------------------------------------------------------
NQJ 5.86% 5.45% 7.21% 6.38%
--------------------------------------------------------------------------------
NNJ 5.92% 4.93% 6.79% 6.69%
--------------------------------------------------------------------------------
NXJ 6.11% 5.61% 8.17% NA
--------------------------------------------------------------------------------
NUJ 6.08% 5.92% NA NA
--------------------------------------------------------------------------------
Lipper New Jersey Municipal
Debt Fund Average2 6.69% 6.80% 7.80% 6.42%
--------------------------------------------------------------------------------
PENNSYLVANIA FUNDS
--------------------------------------------------------------------------------
NQP 6.16% 5.02% 7.39% 5.92%
--------------------------------------------------------------------------------
NPY 6.17% 5.35% 7.04% 6.66%
--------------------------------------------------------------------------------
NXM 6.04% 5.72% 8.54% NA
--------------------------------------------------------------------------------
NVY 5.94% 5.43% NA NA
--------------------------------------------------------------------------------
Lipper Pennsylvania Municipal
Debt Funds Average3 6.39% 6.17% 7.60% 6.51%
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index4 4.55% 4.84% 5.53% 5.76%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one, five and ten years are
annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
2 The Lipper New Jersey Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 14 funds, 1 year, 14 funds; 5 years, 11 funds; and 10
years, 7 funds. Fund and Lipper returns assume reinvestment of dividends.
3 The Lipper Pennsylvania Municipal Debt Funds category average is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 10 funds, 1 year, 10 funds; 5 years, 8 funds; and 10
years, 5 funds. Fund and Lipper returns assume reinvestment of dividends.
4 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman indexes do not reflect any expenses.
5
For the six months ended December 31, 2006, the total returns on net asset value
(NAV) for the New Jersey and Pennsylvania Funds outperformed the return on the
Lehman Brothers Municipal Bond Index. The four New Jersey Funds trailed the
average return for their Lipper New Jersey peer group, and the performance of
the four Pennsylvania Funds lagged the Lipper Pennsylvania average, as well.
With bonds rated BBB or lower bonds generally outperforming other credit quality
sectors during this period, all of these Funds benefited from their allocations
of lower-quality credits. The performance of this sector was largely the result
of investor demand for the higher yields typically associated with lower-quality
bonds, which drove up their value. The Dividend Advantage Funds, NXJ, NUJ, NXM,
and NVY, can invest a portion of their assets in bonds rated BB and lower, which
was particularly beneficial to performance during this period. In particular,
NUJ's overall heavier weighting to lower credit quality securities helped its
performance. NQP, which cannot invest in below investment-grade bonds, had the
smallest exposure to lower credit categories among these Funds, detracting from
its six-month performance.
Among the lower-rated holdings making contributions to the Funds' total returns
for this period were health care (including hospitals). In Pennsylvania, the
funds exposures to the single family housing sector were a minor negative, as
this sector generally underperforms in declining interest rate environments.
6
As the yield curve continued to flatten over the course of this period, bonds
with shorter maturities generally underperformed longer maturity bonds. In
general, the Funds had limited exposure to the shortest maturities which was
positive, and generally had an emphasis on intermediate duration bonds which was
also favorable. On the other hand, the Funds had limited exposure to the very
longest part of the curve, which had a slight countervailing negative impact.
Another factor in the six-month performance of these Funds, especially relative
to that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of
financial leverage. While leverage can add volatility to a Fund's NAV and share
price, this strategy can also provide opportunities for additional income and
total return for common shareholders. The Funds' leveraging strategy positively
impacted their results over this period.
7
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. While the
Fund's leveraging strategy continued to produce incremental income, the extent
of this benefit was reduced during this period as short-term rates rose, causing
the Funds' borrowing cost to rise, reducing some of the benefits of leveraging.
This resulted in one monthly dividend reduction in NQJ, NNJ and NVY. However,
our duration lengthening strategies allowed us to raise the dividend in NQP as
the period continued. NXJ, NUJ, NPY and NXM's dividend remained unchanged
throughout the six month period.
In addition, due to normal portfolio activity, common shareholders of the Funds
received capital gains and net ordinary income distributions at the end of
December 2006, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQJ $0.0342 --
--------------------------------------------------------------------------------
NNJ $0.0102 $0.003
--------------------------------------------------------------------------------
NXJ $0.0053 --
--------------------------------------------------------------------------------
NUJ $0.0033 --
--------------------------------------------------------------------------------
NQP -- --
--------------------------------------------------------------------------------
NPY -- --
--------------------------------------------------------------------------------
NXM -- --
--------------------------------------------------------------------------------
NVY $0.0244 --
--------------------------------------------------------------------------------
These distributions had a slight negative impact on the Funds' earning power per
common share and were a minor factor in the per share dividend reductions noted
above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of December 31, 2006, NNJ had
positive UNII balances for both financial statement and, based on our best
estimates,
8
tax purposes, while the rest of the Funds had positive UNII balances, based on
our best estimates, for tax purposes and negative UNII balances for financial
statement purposes.
At the end of the reporting period, the Funds' share prices were trading at
discounts to their NAVs as shown in the accompanying chart:
12/31/06 6-MONTH AVERAGE
DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NQJ -6.20% -5.86%
--------------------------------------------------------------------------------
NNJ -4.64% -3.75%
--------------------------------------------------------------------------------
NXJ 4.41% 1.46%
--------------------------------------------------------------------------------
NUJ 4.75% 3.09%
--------------------------------------------------------------------------------
NQP -11.24% -11.67%
--------------------------------------------------------------------------------
NPY -8.27% - 8.55%
--------------------------------------------------------------------------------
NXM 2.85% 2.60%
--------------------------------------------------------------------------------
NVY 0.19% -1.73%
--------------------------------------------------------------------------------
9
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 76%
AA 6%
A 4%
BBB 11%
BB or Lower 2%
N/R 1%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0655
Feb 0.0655
Mar 0.062
Apr 0.062
May 0.062
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 14.23
14.44
14.63
14.75
14.62
14.81
14.85
15.07
15.11
15.21
15
14.8
14.72
14.65
14.77
14.55
14.65
14.63
14.65
14.48
14.69
14.47
14.39
14.08
13.83
13.67
13.7
13.76
13.78
13.71
13.78
14
14.08
14.01
14.1
14.16
14.2
14.11
14.1
14.1
14.05
14.05
13.89
13.89
13.97
14.06
14.18
14.16
14.2
14.2
14.29
14.25
14.19
13.95
14.08
14.08
14.72
14.5
14.55
14.51
14.6
14.65
14.8
14.7
14.72
14.8
14.77
14.76
14.7
14.73
14.55
14.57
14.65
14.65
14.7
14.65
14.62
14.56
14.64
14.6
14.63
14.63
14.74
14.74
14.76
14.73
14.65
14.69
14.63
14.75
14.61
14.48
14.38
14.44
14.36
14.42
14.69
14.59
14.54
14.49
14.5
14.47
14.42
14.4
14.46
14.39
14.31
14.25
14.11
14.07
14.08
14.01
13.96
13.81
13.85
13.83
13.8
13.82
13.77
13.6501
13.67
13.63
13.63
13.67
13.65
13.7
13.76
13.77
13.76
13.78
13.78
13.81
13.75
13.76
13.71
13.78
13.75
13.63
13.71
13.78
13.93
13.96
13.97
14
14
14.03
14.03
14.01
14.02
14.08
14.1
14.1
14.09
14.09
14.01
13.99
13.97
14.02
14.05
14.0999
14.1
14.18
14.11
14.15
14.16
14.2
14.26
14.28
14.19
14.2
14.17
14.1
14.08
14.11
14.11
14.16
14.1
14.04
14.1
14.04
14.04
14.0601
14.09
14.1
14.1
14.14
14.2
14.08
14.05
14.05
14.06
14.09
14.11
14.1
14.05
14.05
14.02
13.94
13.87
13.89
13.88
13.85
13.86
13.9
13.89
13.84
13.9
13.94
13.95
13.97
14.04
14.08
14.13
14.1799
14.06
14.11
14.08
14.06
14.1
14.18
14.15
14.16
14.15
14.13
14.16
14.18
14.22
14.2
14.2
14.23
14.28
14.26
14.26
14.29
14.3199
14.3601
14.37
14.34
14.25
14.31
14.36
14.22
14.15
14.19
14.14
14.05
13.99
13.98
13.95
14.05
14.05
14
14.0799
12/31/06 14.0799
FUND SNAPSHOT
------------------------------------
Common Share Price $14.08
------------------------------------
Common Share
Net Asset Value $15.01
------------------------------------
Premium/(Discount) to NAV -6.20%
------------------------------------
Market Yield 4.64%
------------------------------------
Taxable-Equivalent Yield1 6.87%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $307,378
------------------------------------
Average Effective
Maturity on Securities (Years) 16.69
------------------------------------
Leverage-Adjusted Duration 7.51
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.47% 5.86%
------------------------------------
1-Year 5.05% 5.45%
------------------------------------
5-Year 5.14% 7.21%
------------------------------------
10-Year 5.54% 6.38%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Transportation 17.8%
------------------------------------
Tax Obligation/Limited 17.6%
------------------------------------
Education and Civic
Organizations 13.7%
------------------------------------
U.S. Guaranteed 12.5%
------------------------------------
Health Care 12.0%
------------------------------------
Tax Obligation/General 7.9%
------------------------------------
Water and Sewer 5.0%
------------------------------------
Other 13.5%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0342 per share.
10
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 77%
AA 7%
A 6%
BBB 7%
BB or Lower 1%
N/R 2%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.064
Feb 0.064
Mar 0.064
Apr 0.064
May 0.064
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0575
Oct 0.0575
Nov 0.0575
Dec 0.0575
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 14.63
15.01
14.83
14.93
15.24
15.38
15.5
15.65
15.44
15.51
15.44
15.26
14.84
15.13
15.08
15.26
14.97
14.74
14.88
14.57
14.6
14.35
14.75
14.6
14.42
14.25
14.16
14.26
14.25
14.35
14.6
14.46
14.61
14.4
14.68
14.68
14.96
14.88
14.77
14.59
14.75
14.65
14.48
14.53
14.71
14.77
14.75
14.57
14.72
14.73
14.8
14.89
14.71
14.54
14.59
14.59
14.84
14.77
14.9
15.08
15.01
15.13
15.04
14.96
15.06
15.1
15.08
14.95
15.07
15
15.26
14.91
14.9
14.84
14.89
14.97
14.64
14.73
14.75
14.83
14.74
14.74
14.79
14.7501
14.78
14.82
14.88
14.81
14.8
14.7
14.67
14.57
14.53
14.6
14.45
14.53
14.6
14.49
14.37
14.37
14.47
14.35
14.57
14.6
14.85
14.75
14.7
14.67
14.69
14.71
14.6
14.5499
14.55
14.4
14.48
14.42
14.58
14.7
14.39
14.31
14.25
14.15
14.12
14.19
13.99
14.16
14.26
14.16
14.21
14.25
14.26
14.3
14.21
14.3
14.35
14.35
14.47
14.58
14.53
14.6
14.68
14.68
14.58
14.55
14.46
14.46
14.55
14.54
14.5999
14.61
14.5301
14.5
14.39
14.47
14.4
14.4
14.52
14.64
14.7
14.68
14.72
14.6
14.6
14.6
14.68
14.63
14.75
14.92
14.93
14.96
15.01
14.83
14.93
14.88
14.82
14.82
14.75
14.85
14.77
14.66
14.67
14.63
14.65
14.59
14.54
14.61
14.71
14.73
14.75
14.75
14.75
14.73
14.72
14.73
14.65
14.72
14.69
14.6
14.52
14.48
14.5
14.46
14.53
14.52
14.53
14.53
14.58
14.62
14.64
14.71
14.72
14.82
14.88
14.93
14.77
14.77
14.76
14.75
14.7
14.75
14.65
14.68
14.6
14.62
14.57
14.71
14.67
14.72
14.7299
14.65
14.76
14.79
14.69
14.8
14.89
14.92
14.85
15.01
14.89
14.9
14.96
14.79
14.72
14.71
14.66
14.57
14.47
14.56
14.54
14.56
14.6
14.49
14.59
12/31/06 14.59
FUND SNAPSHOT
------------------------------------
Common Share Price $14.59
------------------------------------
Common Share
Net Asset Value $15.30
------------------------------------
Premium/(Discount) to NAV -4.64%
------------------------------------
Market Yield 4.73%
------------------------------------
Taxable-Equivalent Yield1 7.01%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $184,364
------------------------------------
Average Effective
Maturity on Securities (Years) 15.32
------------------------------------
Leverage-Adjusted Duration 7.86
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 5.58% 5.92%
------------------------------------
1-Year 6.05% 4.93%
------------------------------------
5-Year 6.34% 6.79%
------------------------------------
10-Year 7.11% 6.69%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.2%
------------------------------------
Transportation 15.1%
------------------------------------
U.S. Guaranteed 14.0%
------------------------------------
Education and Civic
Organizations 11.8%
------------------------------------
Health Care 9.7%
------------------------------------
Tax Obligation/General 9.0%
------------------------------------
Water and Sewer 8.7%
------------------------------------
Other 10.5%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0102 and $0.0003 per share,
respectively.
11
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 73%
AA 4%
A 9%
BBB 10%
BB or Lower 2%
N/R 2%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0715
Feb 0.0715
Mar 0.068
Apr 0.068
May 0.068
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.0645
Oct 0.0645
Nov 0.0645
Dec 0.0645
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 15.21
15.2
15.48
15.35
15.91
15.43
15.41
16.55
15.77
15.48
15.99
15.45
15.26
15.52
15
15.59
15.7
15.23
15.35
15.26
15.23
14.91
14.99
14.98
14.67
14.37
14.35
14.44
14.47
14.5
14.75
14.95
14.84
14.75
14.99
15.14
15.06
15.16
15.29
15.46
15.75
15.72
15.67
15.48
15.8
15.45
15.45
15.51
15.42
15.42
15.87
15.36
15.64
15.75
15.85
15.85
15.26
15.26
15.27
15.53
15.27
15.52
15.5
15.7
15.6
15.26
15
15.0601
15.4
15.2
15.59
15.4
15.3
15.37
15.33
15.7
15.25
15.6
15.7
15.55
15.23
15.23
15.15
15.25
15.34
15.34
15.35
15.35
15.3001
15.3
15.35
15.26
15.25
15.24
15.15
15.1
15.23
15.1101
14.94
14.7
15.04
14.91
14.75
14.85
14.99
14.99
14.75
14.8501
14.95
14.95
14.98
14.97
14.92
14.68
14.67
14.67
14.57
14.67
14.64
14.56
14.37
14.4
14.23
14.4
14.42
14.35
14.44
14.4
14.4
14.47
14.45
14.4
14.35
14.45
14.5
14.56
14.45
14.65
14.75
14.75
14.8
14.71
14.89
14.9899
14.95
15.15
15
14.82
14.92
14.8401
14.88
14.81
14.7799
14.87
14.75
14.83
14.9
14.86
14.88
14.99
14.94
15
14.98
15.2
15.1375
15.2
15.07
15.07
15.08
15.06
15.3
14.95
15.18
15.16
15.19
15.31
15.3368
15.2
15.29
15.29
15.21
15.3
15.35
15.46
15.4999
15.7
15.8
15.59
15.75
15.75
15.71
15.6
15.74
15.62
15.72
15.55
15.75
15.7
15.5601
15.67
15.79
15.64
15.55
15.55
15.48
15.3
15.42
15.57
15.8
15.8
15.85
15.9
15.75
15.63
15.4501
15.6226
15.59
15.38
15.45
15.45
15.45
15.45
15.55
15.57
15.51
15.7
15.39
15.42
15.42
15.51
15.58
15.61
15.69
15.87
15.8789
15.81
15.64
15.8
15.36
15.7
15.65
15.5
15.55
15.64
15.62
15.71
15.8
15.65
15.75
15.85
15.85
15.8
15.85
12/31/06 15.85
FUND SNAPSHOT
------------------------------------
Common Share Price $15.85
------------------------------------
Common Share
Net Asset Value $15.18
------------------------------------
Premium/(Discount) to NAV 4.41%
------------------------------------
Market Yield 4.88%
------------------------------------
Taxable-Equivalent Yield1 7.23%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $99,709
------------------------------------
Average Effective
Maturity on Securities (Years) 16.73
------------------------------------
Leverage-Adjusted Duration 7.35
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 13.27% 6.11%
------------------------------------
1-Year 9.48% 5.61%
------------------------------------
5-Year 7.95% 8.17%
------------------------------------
Since
Inception 7.07% 7.12%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 18.8%
------------------------------------
Transportation 16.9%
------------------------------------
Water and Sewer 15.7%
------------------------------------
Tax Obligation/Limited 14.8%
------------------------------------
Education and Civic
Organizations 11.9%
------------------------------------
Health Care 11.2%
------------------------------------
Other 10.7%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0053 per share.
12
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 62%
AA 5%
A 14%
BBB 14%
BB or Lower 3%
N/R 2%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.073
Feb 0.073
Mar 0.069
Apr 0.069
May 0.069
Jun 0.066
Jul 0.066
Aug 0.066
Sep 0.066
Oct 0.066
Nov 0.066
Dec 0.066
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 16.52
16.6
16.44
16.95
16.55
16.59
16.44
16.55
16.17
15.72
15.95
15.85
15.63
15.89
15.58
15.78
15.55
15.49
15.4
14.75
15.2
15.12
15.5
15.13
15.01
14.9
14.9
15.09
14.99
15.2
15.02
15.35
15.63
15.59
15.35
15.59
15.79
15.85
15.59
15.5
15.9
15.9
16.04
16
16.4
16.11
16.08
15.9
15.78
15.78
15.99
16.09
16
15.85
16.1
16.1
15.6301
15.58
15.97
15.83
15.79
15.89
16.02
16.1
15.9
15.83
15.58
15.9
15.75
15.9
15.78
15.71
15.6
15.61
15.87
15.55
15.41
15.71
16.11
16.01
15.49
15.49
15.4
15.4
15.36
15.56
15.4
15.4
15.15
15.23
15
14.75
14.7
15.05
15
15.01
15.2
15.21
15.21
14.94
15
15.12
15.38
15.4
15.6
15.5
15.25
15.35
15.4
15.15
15.13
15.27
15.11
15.01
15.05
15.01
14.96
15
14.96
14.96
14.9
14.95
14.79
14.8
14.88
14.9
15.09
15.07
15
14.9925
15
15.18
15.2
15.0744
15.2
15.15
15.14
15.08
15.03
15.02
15.24
15.3
15.2001
15.35
15.35
15.29
15.49
15.5
15.65
15.63
15.77
15.6
15.28
15.6
15.59
15.26
15.26
15.44
15.24
15.35
15.27
15.32
15.32
15.4
15.59
15.6
15.67
15.72
15.76
15.79
15.74
15.54
15.76
15.85
15.75
15.85
15.6299
15.57
15.59
15.48
15.59
15.59
15.59
15.5
15.586
15.96
16.05
16
15.9
15.9
15.9
16.12
16.06
15.86
15.9
15.9
16.01
16.14
16.25
16.04
16.22
16.05
16
16.15
16
16
16.1
16
16.08
16.4
16.36
16.35
16.35
16.25
16.11
16.06
16.31
16.12
16.01
16.08
16
16
16.13
15.96
15.9
15.85
15.81
15.78
15.78
15.78
15.79
15.88
15.86
15.99
15.99
16.01
16.05
16.2
16.09
15.88
15.99
15.87
15.9
16
15.99
15.99
16
16.05
15.85
15.98
16.09
16.01
16.1
12/31/06 16.1
FUND SNAPSHOT
------------------------------------
Common Share Price $16.10
------------------------------------
Common Share
Net Asset Value $15.37
------------------------------------
Premium/(Discount) to NAV 4.75%
------------------------------------
Market Yield 4.92%
------------------------------------
Taxable-Equivalent Yield1 7.29%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $69,458
------------------------------------
Average Effective
Maturity on Securities (Years) 16.86
------------------------------------
Leverage-Adjusted Duration 7.23
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 10.79% 6.08%
------------------------------------
1-Year 2.73% 5.92%
------------------------------------
Since
Inception 7.80% 7.83%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 19.6%
------------------------------------
Health Care 17.8%
------------------------------------
Transportation 15.0%
------------------------------------
Tax Obligation/Limited 11.3%
------------------------------------
Education and Civic
Organizations 10.6%
------------------------------------
Utilities 6.6%
------------------------------------
Long-Term Care 6.1%
------------------------------------
Other 13.0%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains distributions in December 2006 of
$0.0033 per share.
13
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 19%
A 5%
BBB 5%
N/R 1%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.0575
Feb 0.0575
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0515
Jul 0.0515
Aug 0.0515
Sep 0.0515
Oct 0.0515
Nov 0.0535
Dec 0.0535
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 13.75
13.93
13.94
14.01
13.85
13.92
13.73
13.72
13.72
13.7
13.64
13.68
13.67
13.82
13.64
13.52
13.55
13.39
13.4
13.27
13.17
13.24
13.34
13.21
13.09
13.04
12.95
13.04
13.08
12.83
12.75
13.1
13.21
13.2
13.21
13.16
13.35
13.33
13.27
13.49
13.55
13.54
13.4
13.37
13.48
13.61
13.71
13.65
13.67
13.69
13.81
13.83
13.76
13.58
13.58
13.58
13.67
13.66
13.7
13.74
13.75
13.82
13.8
13.75
13.67
13.66
13.64
13.5
13.54
13.46
13.52
13.5
13.55
13.5
13.55
13.55
13.62
13.54
13.55
13.44
13.39
13.39
13.43
13.43
13.35
13.35
13.4
13.42
13.37
13.3601
13.37
13.27
13.2
13.2
13.15
13.15
13.17
13.27
13.22
13.19
13.2
13.24
13.35
13.32
13.25
13.34
13.29
13.33
13.25
13.21
13.21
13.24
13.15
13.1701
13.11
13.09
13.08
13.13
13.08
13.04
13.04
13
12.95
12.9
12.96
12.9501
13.04
13.05
13.13
13.08
13.13
13.15
13.03
12.88
12.83
12.84
12.77
12.85
12.86
12.75
12.83
12.88
12.97
12.99
13.1
13.13
13.13
13.18
13.17
13.21
13.21
13.22
13.21
13.24
13.2
13.13
13.15
13.19
13.16
13.21
13.23
13.25
13.16
13.22
13.16
13.24
13.28
13.43
13.38
13.35
13.28
13.18
13.22
13.33
13.37
13.39
13.3
13.27
13.27
13.3399
13.31
13.38
13.41
13.49
13.5
13.53
13.58
13.54
13.55
13.55
13.5
13.57
13.59
13.59
13.54
13.54
13.57
13.47
13.39
13.4
13.35
13.32
13.23
13.3
13.37
13.3
13.47
13.41
13.5
13.48
13.47
13.6
13.63
13.71
13.61
13.6
13.62
13.65
13.66
13.71
13.73
13.72
13.65
13.63
13.65
13.67
13.65
13.67
13.69
13.71
13.76
13.8
13.81
13.81
13.84
13.83
13.89
13.85
13.83
13.86
13.85
13.77
13.73
13.76
13.68
13.69
13.6
13.62
13.58
13.67
13.67
13.59
13.58
12/31/06 13.58
FUND SNAPSHOT
------------------------------------
Common Share Price $13.58
------------------------------------
Common Share
Net Asset Value $15.30
------------------------------------
Premium/(Discount) to NAV -11.24%
------------------------------------
Market Yield 4.73%
------------------------------------
Taxable-Equivalent Yield1 6.76%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $249,342
------------------------------------
Average Effective
Maturity on Securities (Years) 16.96
------------------------------------
Leverage-Adjusted Duration 9.51
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.31% 6.16%
------------------------------------
1-Year 4.15% 5.02%
------------------------------------
5-Year 4.28% 7.39%
------------------------------------
10-Year 4.64% 5.92%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 16.8%
------------------------------------
Education and Civic
Organizations 16.6%
------------------------------------
Tax Obligation/Limited 15.6%
------------------------------------
U.S. Guaranteed 15.3%
------------------------------------
Water and Sewer 8.2%
------------------------------------
Transportation 6.6%
------------------------------------
Health Care 5.7%
------------------------------------
Housing/Single Family 4.9%
------------------------------------
Other 10.3%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 9%
A 6%
BBB 6%
BB or Lower 3%
N/R 2%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.063
Feb 0.063
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0555
Jul 0.0555
Aug 0.0555
Sep 0.0555
Oct 0.0555
Nov 0.0555
Dec 0.0555
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 14.14
14.36
14.33
14.25
14.23
14.18
14.21
14.13
14.17
14.06
13.84
13.86
13.69
13.71
13.65
13.47
13.41
13.46
13.61
13.3
13.33
13.32
13.34
13.21
13.01
12.87
12.96
13.06
13.04
13.13
12.99
13.11
13.26
13.32
13.38
13.34
13.4
13.4
13.4
13.46
13.48
13.54
13.46
13.31
13.36
13.46
13.57
13.51
13.54
13.44
13.59
13.62
13.55
13.58
13.54
13.54
13.69
13.72
13.69
13.78
13.67
13.71
13.7
13.75
13.72
13.73
13.65
13.64
13.65
13.55
13.47
13.44
13.48
13.41
13.45
13.41
13.5
13.53
13.44
13.4
13.46
13.46
13.47
13.5001
13.52
13.6699
13.61
13.6
13.56
13.64
13.4
13.3
13.39
13.31
13.27
13.29
13.33
13.32
13.35
13.2601
13.23
13.32
13.29
13.29
13.3
13.34
13.27
13.37
13.34
13.23
13.21
13.23
13.16
13.04
13.0699
13.01
13.01
13.03
13.13
13.02
12.87
12.89
12.8
12.78
12.9
12.96
13.06
13.08
13.14
13.04
13.05
13.07
13.06
13.08
13.13
13.06
13.05
13.06
13.05
12.99
12.9501
12.9
12.99
13.06
13.11
13.12
13.18
13.25
13.23
13.26
13.34
13.36
13.38
13.45
13.32
13.35
13.39
13.4
13.38
13.38
13.45
13.38
13.4
13.33
13.34
13.39
13.39
13.44
13.42
13.4
13.44
13.26
13.36
13.4
13.37
13.41
13.38
13.39
13.4
13.46
13.48
13.46
13.46
13.46
13.54
13.42
13.5395
13.57
13.48
13.48
13.46
13.53
13.55
13.53
13.54
13.47
13.5101
13.45
13.51
13.46
13.47
13.43
13.42
13.32
13.3099
13.3
13.33
13.33
13.37
13.36
13.43
13.4205
13.51
13.53
13.46
13.49
13.51
13.48
13.53
13.57
13.51
13.55
13.54
13.5
13.51
13.52
13.5
13.54
13.44
13.46
13.49
13.54
13.54
13.59
13.66
13.71
13.68
13.65
13.62
13.66
13.72
13.6
13.5601
13.55
13.52
13.45
13.49
13.56
13.58
13.57
13.48
13.45
13.5399
12/31/06 13.5399
FUND SNAPSHOT
------------------------------------
Common Share Price $13.54
------------------------------------
Common Share
Net Asset Value $14.76
------------------------------------
Premium/(Discount) to NAV -8.27%
------------------------------------
Market Yield 4.92%
------------------------------------
Taxable-Equivalent Yield1 7.03%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $233,657
------------------------------------
Average Effective
Maturity on Securities (Years) 16.77
------------------------------------
Leverage-Adjusted Duration 8.22
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.08% 6.17%
------------------------------------
1-Year 1.69% 5.35%
------------------------------------
5-Year 5.97% 7.04%
------------------------------------
10-Year 7.29% 6.66%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 15.0%
------------------------------------
Tax Obligation/General 14.7%
------------------------------------
Education and Civic
Organizations 13.3%
------------------------------------
Transportation 11.7%
------------------------------------
Health Care 9.6%
------------------------------------
Tax Obligation/Limited 8.6%
------------------------------------
Utilities 7.5%
------------------------------------
Water and Sewer 6.5%
------------------------------------
Other 13.1%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
15
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 58%
AA 18%
A 11%
BBB 6%
BB or Lower 3%
N/R 4%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.074
Feb 0.074
Mar 0.07
Apr 0.07
May 0.07
Jun 0.0665
Jul 0.0665
Aug 0.0665
Sep 0.0665
Oct 0.0665
Nov 0.0665
Dec 0.0665
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 15.65
17
15.8
16.8
16.49
16.8
15.7
15.7
15.49
15.8
16.08
16.25
16.1
16.05
15.9
16.1
16.05
16.2
15.96
15.95
16.1
16.1
16.21
15.61
15.28
15.2
15.1
15.28
15.18
15.14
15.3
15.45
15.54
15.46
15.55
15.72
15.77
15.39
15.61
15.75
15.83
15.96
15.61
15.9
15.8
15.95
16.28
16
16.15
16.15
16.12
16.14
16.4
15.82
15.89
15.89
16.1
15.9
15.9
15.8
15.8
16.05
16
16.24
16.22
16.08
15.9
15.9
15.9
16.1
16.1
15.9
15.9
15.8
15.8
16.05
16.3
16.39
16.15
16.32
16.2
16.2
16.1
16.45
16.3
16.15
15.96
16.62
16.35
16.32
16
15.95
15.95
16.15
16.15
16.05
16.1
16.35
16.05
16.1
16.1
16.1
16.13
16.28
16.36
16.21
16
15.78
15.84
15.75
15.61
15.56
15.5
15.34
15.36
15.28
15.28
15.19
15.27
15.3
15.2
15.2
15.2
15.01
15
15.1
15.28
14.93
15.02
15.18
15.4
15.4
15.4
15.14
15.14
15.38
15.2
15.14
15.3
15.3
15.79
15.79
15.45
15.41
15.45
15.33
15.41
15.46
15.53
15.54
15.54
15.5
15.5
15.5
15.46
15.5
15.5
15.45
15.7
15.55
15.94
15.76
15.72
15.62
15.72
15.95
15.7
15.6
15.6
15.77
15.79
15.36
15.33
15.39
15.46
15.74
15.77
15.78
15.61
15.6
15.6
15.57
15.55
15.75
15.99
15.83
15.99
15.91
15.83
15.83
15.8
15.8101
15.75
15.8
15.96
15.96
16.01
15.84
15.8
15.61
15.61
15.61
15.8
15.8
15.9
15.91
15.91
16.15
16.15
15.8
15.8
15.84
15.9
15.8726
15.95
16.15
16.08
16.2
16.07
16.28
15.85
15.95
16.01
16.1
16
16
15.87
16.15
16.15
16.05
16.07
16.24
16.16
16.12
16.14
16.05
16.09
16.07
16.14
16.34
16.34
16.34
16.34
16.4
16.15
15.85
15.87
15.88
15.82
15.91
15.9
15.83
15.89
12/31/06 15.89
FUND SNAPSHOT
------------------------------------
Common Share Price $15.89
------------------------------------
Common Share
Net Asset Value $15.45
------------------------------------
Premium/(Discount) to NAV 2.85%
------------------------------------
Market Yield 5.02%
------------------------------------
Taxable-Equivalent Yield1 7.17%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $51,383
------------------------------------
Average Effective
Maturity on Securities (Years) 16.98
------------------------------------
Leverage-Adjusted Duration 7.86
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 7.92% 6.04%
------------------------------------
1-Year 5.76% 5.72%
------------------------------------
5-Year 8.46% 8.54%
------------------------------------
Since
Inception 7.85% 8.19%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 22.2%
------------------------------------
Health Care 12.5%
------------------------------------
Tax Obligation/General 11.2%
------------------------------------
U.S. Guaranteed 11.0%
------------------------------------
Long-Term Care 7.9%
------------------------------------
Tax Obligation/Limited 7.5%
------------------------------------
Transportation 7.4%
------------------------------------
Housing/Single Family 5.0%
------------------------------------
Industrials 4.5%
------------------------------------
Other 10.8%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of December 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 20%
A 4%
BBB 9%
BB or Lower 3%
N/R 4%
Bar Chart:
2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.067
Feb 0.067
Mar 0.0635
Apr 0.0635
May 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.0635
Oct 0.0635
Nov 0.0635
Dec 0.061
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/01/06 14.6
15.3
14.75
14.9
15.08
15.2
14.8
14.62
14.83
15.01
15.22
14.98
14.94
14.62
14.37
14.37
14.28
14.5
14.27
14.15
14.37
14.5
14.79
14.72
14.75
14.5
14.16
14.24
14.12
14.16
14.15
14.99
14.7
14.86
14.95
15.19
15.08
15.23
15.33
15.25
15.31
15.36
15.35
15.3
15.34
15.16
15.34
15.26
15.35
15.18
15.49
15.35
15.54
15.75
15.44
15.44
14.94
14.9
14.9
14.75
14.7
14.62
14.63
14.53
14.59
14.63
14.37
14.37
14.2
14.36
14.37
14.26
14.2
14.3
14.35
14.28
14.24
14.35
14.57
14.66
14.5
14.5
14.43
14.37
14.26
14.35
14.27
14.39
14.26
14.26
14.15
14.15
14.38
14.5301
14.48
14.32
14.37
14.37
14.64
14.45
14.5
14.5
14.4799
14.5
14.75
14.79
14.53
14.6
14.65
14.6
14.72
14.6
14.44
14.5
14.65
14.75
14.75
14.75
14.92
14.75
14.5
14.25
14.03
14.03
14.0901
14.16
14.24
13.91
13.94
14.12
14.12
14.13
14.09
14.1
14.16
14.18
14.1
14.04
14.01
14.15
14.27
14.59
14.4951
14.5
14.99
14.99
14.8
14.91
14.71
14.7
14.7
14.7001
14.61
14.9
14.86
14.86
14.79
14.85
14.81
14.95
14.9
14.9
15.02
14.96
15.19
15.25
15.0101
15
14.95
15.08
15.08
15.07
15.18
15.23
15.18
15.1801
15.09
15.18
15.33
15.2
15.2
15.35
15.2822
15.25
15.21
15.11
15.23
15.34
15.31
15.31
15.26
15.31
15.35
15.54
15.36
15.36
15.36
15.4
15.4
15.35
15.28
15.3399
15.21
15.29
15.3
15.35
15.2
15.23
15.3
15.34
15.23
15.28
15.3
15.43
15.16
15.21
15.16
15.16
15.27
15.34
15.28
15.34
15.25
15.26
15.26
15.2
15.22
15.35
15.18
15.16
15.1601
15.3
15.3599
15.49
15.5
15.48
15.37
15.4899
15.35
15.6
15.6
15.6
15.47
15.54
15.64
15.64
15.63
15.56
15.75
15.58
15.6399
15.5
15.44
12/31/06 15.44
FUND SNAPSHOT
------------------------------------
Common Share Price $15.44
------------------------------------
Common Share
Net Asset Value $15.41
------------------------------------
Premium/(Discount) to NAV 0.19%
------------------------------------
Market Yield 4.74%
------------------------------------
Taxable-Equivalent Yield1 6.77%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,407
------------------------------------
Average Effective
Maturity on Securities (Years) 15.20
------------------------------------
Leverage-Adjusted Duration 7.99
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 11.95% 5.94%
------------------------------------
1-Year 12.00% 5.43%
------------------------------------
Since
Inception 6.96% 7.77%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 17.8%
------------------------------------
U.S. Guaranteed 17.7%
------------------------------------
Tax Obligation/Limited 16.3%
------------------------------------
Education and Civic
Organizations 12.5%
------------------------------------
Health Care 9.5%
------------------------------------
Water and Sewer 6.2%
------------------------------------
Industrials 3.8%
------------------------------------
Utilities 3.5%
------------------------------------
Other 12.7%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006 of
$0.0244 per share.
17
Shareholder
MEETING REPORT
Approval of the Board Members was the proposal voted upon at the November 14,
2006, shareholder meeting held at the offices of Nuveen Investments.
NQJ NNJ NXJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 18,692,482 -- 10,979,130 -- 6,325,506 --
Withhold 289,443 -- 263,582 -- 48,267 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
Lawrence H. Brown
For 18,688,827 -- 10,985,899 -- 6,317,409 --
Withhold 293,098 -- 256,813 -- 56,364 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
Jack B. Evans
For 18,696,261 -- 10,989,452 -- 6,321,809 --
Withhold 285,664 -- 253,260 -- 51,964 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
William C. Hunter
For 18,690,827 -- 10,981,362 -- 6,322,839 --
Withhold 291,098 -- 261,350 -- 50,934 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
David J. Kundert
For 18,695,725 -- 10,988,169 -- 6,326,872 --
Withhold 286,200 -- 254,543 -- 46,901 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
William J. Schneider
For -- 6,285 -- 3,534 -- 1,861
Withhold -- 21 -- 87 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,306 -- 3,621 -- 1,861
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,285 -- 3,534 -- 1,861
Withhold -- 21 -- 87 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,306 -- 3,621 -- 1,861
====================================================================================================================================
Judith M. Stockdale
For 18,686,029 -- 10,989,587 -- 6,325,809 --
Withhold 295,896 -- 253,125 -- 47,964 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
Eugene S. Sunshine
For 18,693,274 -- 10,975,995 -- 6,325,572 --
Withhold 288,651 -- 266,717 -- 48,201 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,981,925 -- 11,242,712 -- 6,373,773 --
====================================================================================================================================
18
NUJ NQP NPY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 4,255,135 -- 14,059,427 -- 14,403,731 --
Withhold 63,558 -- 568,565 -- 246,499 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
Lawrence H. Brown
For 4,252,133 -- 14,053,670 -- 14,394,125 --
Withhold 66,560 -- 574,322 -- 256,105 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
Jack B. Evans
For 4,251,725 -- 14,068,853 -- 14,396,583 --
Withhold 66,968 -- 559,139 -- 253,647 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
William C. Hunter
For 4,252,138 -- 14,071,261 -- 14,403,312 --
Withhold 66,555 -- 556,731 -- 246,918 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
David J. Kundert
For 4,251,534 -- 14,053,399 -- 14,407,270 --
Withhold 67,159 -- 574,593 -- 242,960 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
William J. Schneider
For -- 1,346 -- 5,197 -- 4,634
Withhold -- 3 -- 10 -- 1
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,349 -- 5,207 -- 4,635
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,348 -- 5,198 -- 4,635
Withhold -- 1 -- 9 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,349 -- 5,207 -- 4,635
====================================================================================================================================
Judith M. Stockdale
For 4,255,133 -- 14,046,240 -- 14,390,225 --
Withhold 63,560 -- 581,752 -- 260,005 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
Eugene S. Sunshine
For 4,252,475 -- 14,062,362 -- 14,405,200 --
Withhold 66,218 -- 565,630 -- 245,030 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,318,693 -- 14,627,992 -- 14,650,230 --
====================================================================================================================================
19
Shareholder
MEETING REPORT (continued)
NXM NVY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 3,177,629 -- 3,605,371 --
Withhold 54,844 -- 35,998 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
Lawrence H. Brown
For 3,176,429 -- 3,598,756 --
Withhold 56,044 -- 42,613 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
Jack B. Evans
For 3,177,929 -- 3,605,571 --
Withhold 54,544 -- 35,798 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
William C. Hunter
For 3,178,129 -- 3,606,571 --
Withhold 54,344 -- 34,798 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
David J. Kundert
For 3,176,129 -- 3,605,571 --
Withhold 56,344 -- 35,798 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
William J. Schneider
For -- 983 -- 1,131
Withhold -- 8 -- 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 991 -- 1,135
====================================================================================================================================
Timothy R. Schwertfeger
For -- 983 -- 1,131
Withhold -- 8 -- 4
------------------------------------------------------------------------------------------------------------------------------------
Total -- 991 -- 1,135
====================================================================================================================================
Judith M. Stockdale
For 3,177,933 -- 3,605,015 --
Withhold 54,540 -- 36,354 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
Eugene S. Sunshine
For 3,178,129 -- 3,604,821 --
Withhold 54,344 -- 36,548 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,232,473 -- 3,641,369 --
====================================================================================================================================
20
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 802,352
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 696,990
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 1,499,342
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (4.0% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
8,195 5.750%, 6/01/32 6/12 at 100.00 BBB 8,706,941
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 3,260,820
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 6/13 at 100.00 BBB 3,470,592
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,954,516
------------------------------------------------------------------------------------------------------------------------------------
17,020 Total Consumer Staples 18,392,869
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.7% (13.7% OF TOTAL INVESTMENTS)
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,630,975
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,000 New Jersey Economic Development Authority, Revenue Bonds,
The Seeing Eye Inc., Series 2005, 6/15 at 100.00 AAA 1,065,350
5.000%, 12/01/24 - AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,074,080
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 536,320
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,622,070
Kean University, Series 2003D, 5.250%, 7/01/20 -
FGIC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 2,056,343
Kean University, Series 2005B, 5.000%, 7/01/30 -
MBIA Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,621,605
Montclair State University, Series 2004L, 5.125%, 7/01/22 -
MBIA Insured
1,225 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,330,522
Montclair State University, Series 2005F, 5.000%, 7/01/16 -
FGIC Insured
2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 2,954,510
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,099,960
New Jersey City University, Series 2002A, 5.000%, 7/01/32 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,059,740
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,061,194
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
2,285 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 2,447,898
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,349,032
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,621,670
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,041,172
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 1,610,683
Ramapo College, Series 2004H, 5.000%, 7/01/16 -
FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 666,962
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
1,000 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 1,080,090
1,195 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 1,283,036
1,875 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 1,989,919
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 2,003,840
Rowan University, Series 2006G, 4.500%, 7/01/31 -
MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
St. Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 1,016,570
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,780,065
1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,545,930
William Paterson University, Series 2004A, 5.125%, 7/01/21 -
FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,095,885
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
3,175 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 3,177,032
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 - MBIA Insured
(Alternative Minimum Tax)
2,365 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,407,263
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17 -
MBIA Insured (Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,377,127
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child
Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,069,422
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,447,049
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,216,487
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,342,000
------------------------------------------------------------------------------------------------------------------------------------
60,575 Total Education and Civic Organizations 63,681,801
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 5,531,250
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.2% (12.0% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue
Bonds, Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 206,254
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 1,079,490
5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 5,925,433
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 5.000%, 8/01/41 - AMBAC Insured
1,265 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aa1 1,346,377
Revenue Bonds, CentraState Medical Center, Series 2006A,
5.000%, 7/01/30 - AGC Insured
400 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 424,672
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
1,200 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 1,254,960
Revenue Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
615 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 643,979
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,173,070
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.500%, 7/01/21
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 3,652,915
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 4,106,603
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,133,300
2,600 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 2,729,454
Revenue Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 - RAAI Insured
1,985 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 2,056,162
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,301,626
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 3,436,191
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
980 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 1,017,936
Revenue Bonds, South Jersey Hospital System,
Series 2006, 5.000%, 7/01/36
1,690 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,810,531
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa1 2,188,740
Revenue Bonds, St. Peter's University Hospital,
Series 2000A, 6.875%, 7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,249,647
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,413,226
Revenue Refunding Bonds, St. Barnabas Healthcare
System - West Hudson Hospital Obligated Group,
Series 1998A, 5.000%, 7/01/23 - MBIA Insured
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds, St. Elizabeth Hospital
Obligated Group, Series 1997:
70 6.000%, 7/01/20 7/07 at 102.00 BBB- 71,993
1,605 6.000%, 7/01/27 7/07 at 102.00 BBB- 1,650,277
3,785 Newark, New Jersey, GNMA Collateralized Healthcare 6/12 at 102.00 Aaa 4,033,788
Facility Revenue Bonds, New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
53,290 Total Health Care 55,906,624
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
775 Long Branch Housing Finance Corporation New Jersey, 4/07 at 100.00 N/R 779,921
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,893,032
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,518 Total Housing/Multifamily 3,672,953
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.8% (2.5% OF TOTAL INVESTMENTS)
3,545 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 3,626,677
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
2,745 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 2,770,995
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 - MBIA Insured (Alternative Minimum Tax)
2,590 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,667,208
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,585 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,679,895
Securities Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,465 Total Housing/Single Family 11,744,775
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.8% (1.9% OF TOTAL INVESTMENTS)
1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 1,220,434
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.750%, 11/01/24
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 2,855 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa $ 3,049,740
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation, Series 2001A, 5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 647,265
Masonic Charity Foundation of New Jersey, Series 2001,
5.875%, 6/01/18
1,100 New Jersey Economic Development Authority, Revenue Bonds, 6/13 at 102.00 A- 1,172,743
Masonic Charity Foundation of New Jersey, Series 2002,
5.250%, 6/01/32
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,036,300
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,556,310
------------------------------------------------------------------------------------------------------------------------------------
8,175 Total Long-Term Care 8,682,792
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.0% (7.9% OF TOTAL INVESTMENTS)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,773,508
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,691,251
1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,021,030
Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
4,300 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 4,640,087
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,735 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,849,684
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
1,420 Lenape Regional High School District, Burlington County, No Opt. Call Aaa 1,538,329
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 4/01/14 - FGIC Insured
Middletown Township Board of Education, Monmouth County, New
Jersey, Refunding School Bonds, Series 2001:
4,725 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 4,894,155
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,554,705
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,438,850
6.000%, 2/15/11
2,040 Ocean City Board of Education, Cape May County, New Jersey, 4/16 at 100.00 Aaa 2,205,403
General Obligation Bonds, Series 2005, 5.000%, 4/01/20 -
MBIA Insured
Sayreville School District, Middlesex County, New Jersey,
General Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,542,192
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,620,875
1,285 Tinton Falls Board of Education, Monmouth County, 10/14 at 100.00 Aaa 1,395,240
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 10/15/15 - FSA Insured
1,745 Washington Township Board of Education, Mercer County, 1/16 at 100.00 Aaa 1,887,532
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 1/01/19 - FSA Insured
West Deptford Township, New Jersey, General Obligation
Bonds, Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,828,698
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,973,972
------------------------------------------------------------------------------------------------------------------------------------
34,645 Total Tax Obligation/General 36,855,511
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.7% (17.6% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,942,675
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,160,000
1,775 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 2,002,324
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,352,737
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa $ 10,686,799
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
2,650 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 2,964,688
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
Gloucester County Improvement Authority, New Jersey,
Lease Revenue Bonds, Series 2005A:
1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA 1,184,722
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,071,480
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AAA 1,519,357
Hudson County Improvement Authority, New Jersey, County
Secured Lease Revenue Bonds, County Services Building
Project, Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,156,872
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,665,441
1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,548,448
County, New Jersey, Revenue Bonds, Series 2003D,
5.000%, 12/01/16 - FGIC Insured
Middlesex County Improvement Authority, New Jersey,
County Guaranteed Open Space Trust Fund
Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,089,640
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,169,640
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,082,050
4,000 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 4,305,440
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
4,675 New Jersey Economic Development Authority, Lease Revenue 3/15 at 100.00 AAA 4,959,427
Bonds, Liberty State Park Project, Series 2005C,
5.000%, 3/01/27 - FSA Insured
5,000 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AAA 5,467,850
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,094,516
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,606,100
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
2,885 New Jersey Health Care Facilities Financing Authority, 9/15 at 100.00 AAA 3,116,867
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2005,
5.000%, 9/15/18 - AMBAC Insured
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 3,655,233
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 1,169,213
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 2,060,873
4,200 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 4,774,770
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 4,181,283
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 4,975,272
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
1,625 Passaic County Improvement Authority, New Jersey, Lease 5/15 at 100.00 Aaa 1,718,503
Revenue Bonds, Preakness Healthcare Center Project,
Series 2005, 5.000%, 5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 1,331,753
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
75,720 Total Tax Obligation/Limited 82,013,973
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.9% (17.8% OF TOTAL INVESTMENTS)
2,250 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,453,558
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
$ 2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA $ 2,129,500
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,309,403
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,592,910
2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,651,350
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,698,240
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,122,415
Revenue Refunding Bonds, Port District Project,
Series 2001A, 5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 5/07 at 100.00 CCC+ 3,004,500
American Airlines Inc., Series 1991, 7.100%, 11/01/31
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
495 6.500%, 1/01/16 No Opt. Call A 574,081
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 186,443
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,126,239
5.000%, 1/01/19 - FGIC Insured
4,660 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 4,929,068
5.000%, 1/01/35 - FSA Insured
1,250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 1,347,413
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 -
MBIA Insured
7,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 7,471,170
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - XLCA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 2,109,080
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,414,018
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,293,900
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,061,050
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 6,850,772
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,346,880
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,087,440
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
78,340 Total Transportation 82,759,430
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.9% (12.5% OF TOTAL INVESTMENTS) (4)
3,320 Atlantic County Improvement Authority, New Jersey, 11/10 at 100.00 Aaa 3,528,031
Egg Harbor Township Golf Corporation Township Guaranteed
Revenue Bonds, Series 2000, 5.400%, 11/01/30
(Pre-refunded 11/01/10) - AMBAC Insured
3,275 Delaware River and Bay Authority, Delaware and 1/10 at 101.00 AAA 3,499,927
New Jersey, Revenue Bonds, Series 2000A, 5.750%, 1/01/29
(Pre-refunded 1/01/10) - AMBAC Insured
3,365 Garden State Preservation Trust, New Jersey, Open Space 11/13 at 100.00 AAA 3,636,522
and Farmland Preservation Bonds, Series 2003A,
5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured
3,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,273,120
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,163,040
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 3,104,135
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,590,188
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,055,830
Ramapo College, Series 2001D, 5.000%, 7/01/31
(Pre-refunded 7/01/11) - AMBAC Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA $ 1,409,759
Rowan University, Series 2003I, 5.125%, 7/01/21
(Pre-refunded 7/01/13) - FGIC Insured
7,860 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 8,661,326
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21 (Pre-refunded 7/01/12)
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 6,015,700
System Bonds, Series 2001B, 5.000%, 12/15/21
(Pre-refunded 12/15/11) - MBIA Insured
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,315,930
System Bonds, Series 2003C, 5.500%, 6/15/17
(Pre-refunded 6/15/13)
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 3,393,352
System Bonds, Series 2005D, 5.000%, 6/15/19
(Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 198,206
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 64,126
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,920,630
760 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 886,099
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 8,051,925
Obligation Bonds, Series 2000A, 5.500%, 10/01/34 (ETM)
1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,308,167
Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
53,430 Total U.S. Guaranteed 58,076,013
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.3% (2.8% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 3,551,170
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
1,250 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 1,268,275
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, 12/13 at 100.00 AAA 2,206,638
Solid Waste Revenue Bonds, Regional Sludge Project,
Series 2003, 5.000%, 12/15/14 - FGIC Insured
400 New Jersey Economic Development Authority, Pollution 1/07 at 100.50 Baa1 406,024
Control Revenue Bonds, Jersey Central Power and Light
Company, Series 1985, 7.100%, 7/01/15
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,677,000
New Jersey, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31
(Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,055,770
Facility Senior Lien Revenue Bonds, Ogden Martin Systems
of Union Inc., Series 1998A, 5.000%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,705 Total Utilities 13,164,877
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.6% (5.0% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,108,720
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 - FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County,
New Jersey, Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,873,970
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,962,679
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,069,580
7,500 New Jersey Economic Development Authority, 5/07 at 101.00 Aaa 7,637,625
Water Facilities Revenue Bonds, American Water
Company, Series 1996, 6.000%, 5/01/36 - FGIC Insured
(Alternative Minimum Tax)
27
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
North Hudson Sewerage Authority, New Jersey, Sewerage
Revenue Refunding Bonds, Series 2002A:
$ 3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa $ 3,223,950
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,216,300
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,314,325
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 23,407,149
------------------------------------------------------------------------------------------------------------------------------------
$ 437,708 Total Investments (cost $446,871,039) - 151.4% 465,389,359
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,988,833
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.7)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 307,378,192
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
28
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 481,411
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 419,204
------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 900,615
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3% (3.6% OF TOTAL INVESTMENTS)
3,145 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,341,468
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 6/13 at 100.00 BBB 3,817,651
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,532,443
------------------------------------------------------------------------------------------------------------------------------------
8,915 Total Consumer Staples 9,691,562
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.8% OF TOTAL INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,198,519
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
2,705 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R 3,223,278
Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 518,520
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 321,792
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
595 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 635,597
Kean University, Series 2005B, 5.000%, 7/01/30 -
MBIA Insured
1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,349,306
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 1,034,612
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 1,473,024
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 776,229
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,598,070
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,114,718
New Jersey Educational Facilities Authority, Revenue Bonds,
Ramapo College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 1,764,132
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,105,125
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 328,014
Rider University, Series 2004A, 5.500%, 7/01/23 -
RAAI Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
905 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 977,481
400 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 429,468
1,150 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 1,152,208
Rowan University, Series 2006G, 4.500%, 7/01/31 -
MBIA Insured
235 New Jersey Educational Facilities Authority, Revenue Bonds, 1/07 at 100.00 A- 235,477
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 10 New Jersey Higher Education Assistance Authority, Student 1/07 at 100.00 A+ $ 10,017
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
1,765 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 1,775,431
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
1,730 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 1,753,788
1,155 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,174,439
2,000 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,111,940
Series 2004E, 5.000%, 5/01/34 - FGIC Insured
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,154,539
Certificates of Participation, Child Health Institute, LLC,
Series 2003, 5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AAA 1,055,030
Certificates of Participation, University Housing Associates,
LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AAA 2,896,603
Revenue Bonds, Series 2002A, 5.000%, 12/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,300 Total Education and Civic Organizations 32,167,357
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,659,375
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.3% (9.7% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey,
Revenue Bonds, Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 190,785
620 5.750%, 2/15/34 8/14 at 100.00 BBB 669,284
240 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 254,803
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A3 3,079,568
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
700 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 732,060
Revenue Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
375 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 392,670
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,712,380
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,700 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,793,330
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 517,433
Revenue Bonds, Palisades Medical Center of New York
Presbyterian Healthcare System, Series 2002, 6.625%, 7/01/31
1,500 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 1,574,685
Revenue Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 - RAAI Insured
1,160 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 1,201,586
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,117,440
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 1,952,381
Revenue Bonds, Somerset Medical Center,
Series 2003, 5.500%, 7/01/33
550 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 571,291
Revenue Bonds, South Jersey Hospital System,
Series 2006, 5.000%, 7/01/36
1,270 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,360,576
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 545 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- $ 605,043
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 1,213,857
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,768,448
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
25 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 25,705
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/07 at 101.50 Aa3 2,692,586
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American
Home Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
25,100 Total Health Care 26,425,911
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, 11/12 at 100.00 Aaa 344,740
FNMA Enhanced Multifamily Revenue Bonds, Mount
Carmel Towers, Series 2002, 4.750%, 11/01/22
(Alternative Minimum Tax)
460 Long Branch Housing Finance Corporation New Jersey, 4/07 at 100.00 N/R 462,921
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%,
10/01/11
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,200,689
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,800 Total Housing/Multifamily 8,008,350
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 2,010,667
535 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 547,326
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 507,855
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Housing/Single Family 3,065,848
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.7% OF TOTAL INVESTMENTS)
750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 814,943
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,071,730
Masonic Charity Foundation of New Jersey, Series 2001,
5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Long-Term Care 1,886,673
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.4% (9.0% OF TOTAL INVESTMENTS)
2,075 Egg Harbor Township School District, Atlantic County, 4/15 at 100.00 Aaa 2,205,289
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 4/01/27 - MBIA Insured
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,720,563
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 2,697,725
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,500 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,599,150
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA 2,114,820
New Jersey, General Obligation Bonds, Series 2003,
5.000%, 10/01/27 - MBIA Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,806,447
1,560 6.000%, 2/15/13 No Opt. Call AA 1,750,944
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,227,160
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
31
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Stafford Township Board of Education, Ocean County, New Jersey,
General Obligation Bonds, Series 2003:
$ 1,350 5.250%, 1/15/18 - FSA Insured 1/12 at 100.00 Aaa $ 1,438,749
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,172,314
1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aaa 1,890,556
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,905 Total Tax Obligation/General 24,623,717
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.3% (21.2% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,298,724
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,236,600
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,128,070
Lease Revenue Bonds, County Administration Complex
Project, Series 2005, 5.000%, 11/15/26
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,352,737
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
5,515 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,945,942
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
1,225 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 1,370,469
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series
2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,257,700
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,908,233
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,089,640
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,850,658
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,082,050
2,540 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 2,733,954
Revenue Bonds, Series 2004, 5.750%, 6/15/34
3,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 3,499,424
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,835,437
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
4,000 New Jersey Health Care Facilities Financing Authority, 9/15 at 100.00 AAA 4,247,680
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2005,
5.000%, 9/15/28 - AMBAC Insured
1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA 1,745,580
Center Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 -
MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,329,700
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 2,012,794
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 435,056
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 775,539
2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,955,810
System Bonds, Series 2004B, 5.500%, 12/15/16 -
MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AAA 2,200,140
System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA $ 1,193,117
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,966,968
System Bonds, Series 2006A, 5.500%, 12/15/22
780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 789,937
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aaa 2,890,595
Obligation Lease Revenue Bonds, Plainfield Park Madison
Redevelopment Project, Series 2003, 5.000%, 3/01/34 -
FSA Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,585,808
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
53,285 Total Tax Obligation/Limited 57,718,362
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.3% (15.1% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,998,793
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,654,850
4,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 4,242,160
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,365 6.500%, 1/01/16 No Opt. Call A 1,583,072
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 658,378
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 402,498
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,129,039
5.000%, 1/01/19 - FGIC Insured
1,995 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 2,110,191
5.000%, 1/01/35 - FSA Insured
750 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 808,448
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 -
MBIA Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue 4/15 at 100.00 Aaa 2,893,715
Bonds, Paterson Parking Deck Facility, Series 2005,
5.000%, 4/15/35 - FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 4,269,240
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - XLCA Insured
1,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 1,054,540
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,117,560
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
8,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 8,297,677
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
850 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 900,864
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,620 Total Transportation 41,121,025
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.8% (14.0% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space
and Farmland Preservation Bonds, Series 2003A:
1,750 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,891,208
1,965 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 2,123,556
3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,736,812
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,081,520
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) -
AMBAC Insured
2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,265,474
Montclair State University, Series 2005F, 5.000%, 7/01/32
(Pre-refunded 7/01/15) - FGIC Insured
33
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA $ 1,084,430
Rowan University, Series 2003I, 5.125%, 7/01/21
(Pre-refunded 7/01/13) - FGIC Insured
3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 3,305,850
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21 (Pre-refunded 7/01/12)
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,239,610
System Bonds, Series 2001B, 6.000%, 12/15/19
(Pre-refunded 12/15/11) - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 2,210,620
System Bonds, Series 2003C, 5.500%, 6/15/18
(Pre-refunded 6/15/13)
890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 971,088
System Bonds, Series 2005D, 5.000%, 6/15/19
(Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 542,153
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 227,354
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 139,910
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,683,412
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,052,019
2,745 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 3,200,450
1,155 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 1,252,909
Authority, Revenue Bonds, Series 2002, 5.250%, 12/01/18
(Pre-refunded 12/01/12) - FGIC Insured
350 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 377,937
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 (Pre-refunded 10/01/13) - FGIC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, Sewer 7/09 at 102.00 Aaa 1,908,504
Utility Bonds, Series 1999, 5.300%, 7/01/20 (Pre-refunded
7/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
34,315 Total U.S. Guaranteed 38,294,816
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,250 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 1,285,738
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,263,529
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,375 Total Utilities 3,549,267
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8% (8.7% OF TOTAL INVESTMENTS)
Bayonne Municipal Utilities Authority, New Jersey, Water
System Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa 1,531,345
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,311,088
1,000 Hudson County Improvement Authority, New Jersey, Utility 1/08 at 101.50 AAA 1,030,030
System Revenue Bonds, Harrison Franchise Acquisition
Project, Series 1997, 5.350%, 1/01/27 - FSA Insured
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,121,370
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water 3/07 at 100.00 AAA 3,143,710
Facilities Revenue Refunding Bonds, Hackensack Water
Company, Series 1994B, 5.900%, 3/01/24 - MBIA Insured
(Alternative Minimum Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,232,030
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AAA 1,752,234
Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 -
MBIA Insured
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa $ 3,752,350
Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,057,870
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,697,430
New Jersey, Sewer Revenue Refunding Bonds, Series 1993B,
5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,400 Total Water and Sewer 23,629,457
------------------------------------------------------------------------------------------------------------------------------------
$ 254,160 Total Investments (cost $260,706,955) - 147.9% 272,742,335
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 3,221,261
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 184,363,596
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
35
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.6% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 260,764
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 232,330
45 New Jersey Economic Development Authority, General Motors No Opt. Call B- 44,889
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 537,983
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS)
895 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 950,911
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
2,240 6.125%, 6/01/24 6/13 at 100.00 BBB 2,429,414
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,266,221
------------------------------------------------------------------------------------------------------------------------------------
4,260 Total Consumer Staples 4,646,546
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.5% (11.9% OF TOTAL INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 268,160
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 411,269
Kean University, Series 2005B, 5.000%, 7/01/30 -
MBIA Insured
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 810,803
Montclair State University, Series 2004L, 5.125%, 7/01/21 -
MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 1,034,612
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,059,740
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 1,068,760
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,563,300
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 663,306
Rowan University, Series 2004C, 5.000%, 7/01/24 -
MBIA Insured
650 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 651,248
Rowan University, Series 2006G, 4.500%, 7/01/31 -
MBIA Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 682,781
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 313,110
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 212,672
Bonds, Seton Hall University Project, Series 2001A,
5.250%, 7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Refunding
Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 3,949,383
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,660,352
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series
2001:
$ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 2,067,120
500 5.250%, 9/01/31 9/11 at 100.00 BBB 515,290
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 529,590
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez University
System, Series 2002, 5.500%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
16,680 Total Education and Civic Organizations 17,461,496
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,129,170
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 864,076
Development Revenue Bonds, Glimcher Properties LP,
Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 258,728
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 829,688
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,952,492
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.5% (11.2% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 334,642
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
1,500 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aa1 1,596,495
Revenue Bonds, CentraState Medical Center, Series 2006A,
5.000%, 7/01/30 - AGC Insured
130 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 138,018
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 418,320
Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 188,482
Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,712,380
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
750 5.750%, 7/01/25 7/10 at 100.00 A2 799,988
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,199,950
610 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 631,869
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 1,041,270
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
295 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 306,419
Bonds, South Jersey Hospital System, Series 2006,
5.000%, 7/01/36
845 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 905,265
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 555,085
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,595,125
Refunding Bonds, Burdette Tomlin Memorial Hospital,
Series 1999, 5.500%, 7/01/29
37
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 40 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- $ 41,128
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
15,560 Total Health Care 16,464,436
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.1% (2.1% OF TOTAL INVESTMENTS)
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 271,648
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
880 New Jersey Economic Development Authority, Retirement 11/16 at 100.00 N/R 891,114
Community Revenue Bonds, Seabrook Village, Series 2006,
5.250%, 11/15/36
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A- 1,100,290
335 5.500%, 6/01/31 6/11 at 102.00 A- 357,200
500 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 494,405
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,965 Total Long-Term Care 3,114,657
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 1,079,090
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,429,218
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,508,308
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.7% (14.8% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 676,842
Lease Revenue Bonds, County Administration Complex
Project, Series 2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,866,417
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
1,500 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,628,625
Guaranteed Lease Revenue Bonds, Series 2005A,
5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 1,214,059
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
500 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 534,340
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 911,781
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
1,055 Gloucester County Improvement Authority, New Jersey, Lease 9/15 at 100.00 AAA 1,132,015
Revenue Bonds, Series 2005A, 5.000%, 9/01/20 -
MBIA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,291,632
Revenue Bonds, Series 2004, 5.750%, 6/15/34
1,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,312,284
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 571,232
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
925 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 999,342
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 -
AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,109,900
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,073,490
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
$ 350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA $ 380,674
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 661,649
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,477,905
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,375,846
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,504,152
System Bonds, Series 2006A, 5.500%, 12/15/22
405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 410,160
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,551,030
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
19,910 Total Tax Obligation/Limited 21,683,375
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.8% (16.9% OF TOTAL INVESTMENTS)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 1,064,750
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,064,050
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 530,970
1,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 1,060,540
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 963,864
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
180 6.500%, 1/01/16 No Opt. Call A 208,757
50 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 58,264
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,197,760
5.000%, 1/01/19 - FGIC Insured
1,195 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 1,263,999
5.000%, 1/01/35 - FSA Insured
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 404,224
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 2,022,560
Revenue Bonds, One Hundred Ninth Series 1997,
5.375%, 1/15/32 - MBIA Insured
500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 527,270
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
3,500 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,579,730
Revenue Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 - MBIA Insured (Alternative Minimum Tax)
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,186,050
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 3,582,362
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,635 Total Transportation 24,715,150
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.7% (18.8% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
900 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 972,621
1,015 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,096,900
1,630 Hamilton Township, Mercer County Board of Education, 8/10 at 100.00 AAA 1,691,190
New Jersey, General Obligation Bonds, Series 2001,
4.750%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,532,744
Construction Bonds, Series 2001A, 5.000%, 6/15/21
(Pre-refunded 6/15/11) - AMBAC Insured
39
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA $ 1,091,040
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,081,520
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,307,004
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,089,170
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 566,368
1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 (4) 1,487,633
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21 (Pre-refunded 7/01/12)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
1,000 5.500%, 6/15/17 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 1,105,310
1,000 5.500%, 6/15/18 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 1,105,310
1,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 1,112,932
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 151,570
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 23,318
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,055,158
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,609,845
Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001:
2,150 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 2,297,705
1,000 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,063,550
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,236,670
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
1,905 University of Puerto Rico, University System Revenue Bonds, 3/07 at 100.75 AAA 1,925,555
Series 1995M, 5.250%, 6/01/25 (Pre-refunded 3/12/07) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,645 Total U.S. Guaranteed 27,603,113
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,030 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 1,045,059
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 771,443
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
1,780 Total Utilities 1,816,502
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.0% (15.7% OF TOTAL INVESTMENTS)
225 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 246,717
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,805,244
Revenue Bonds, American Water Company, Series 1997B,
5.375%, 5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,212,800
Revenue Bonds, Middlesex Water Company, Series 1998,
5.350%, 2/01/38 - MBIA Insured (Alternative Minimum Tax)
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA $ 2,826,143
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage No Opt. Call Aaa 7,884,516
Revenue Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,475 Total Water and Sewer 22,975,420
------------------------------------------------------------------------------------------------------------------------------------
$ 146,645 Total Investments (cost $139,998,983) - 147.0% 146,608,648
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 1,100,047
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.1)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 99,708,695
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
41
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.6% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 180,529
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 151,520
40 New Jersey Economic Development Authority, General Motors No Opt. Call B- 39,902
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 371,951
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.1% (4.1% OF TOTAL INVESTMENTS)
1,005 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,067,782
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,600 6.125%, 6/01/24 6/13 at 100.00 BBB 1,735,296
1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,406,913
------------------------------------------------------------------------------------------------------------------------------------
3,855 Total Consumer Staples 4,209,991
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.8% (10.6% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,052,390
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,114,690
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 214,528
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 186,940
Kean University, Series 2005B, 5.000%, 7/01/30 -
MBIA Insured
710 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 757,293
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 614,537
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
450 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 450,864
Rowan University, Series 2006G, 4.500%, 7/01/31 -
MBIA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 541,890
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,137,633
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 1,022,790
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 1,885,425
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,490 Total Education and Civic Organizations 10,978,980
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,129,170
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 5.0% (3.4% OF TOTAL INVESTMENTS)
$ 600 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R $ 609,936
Development Revenue Bonds, Glimcher Properties LP,
Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 1,293,638
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
1,450 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,604,063
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 3,507,637
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.4% (17.8% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 237,488
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 520,310
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,983,732
1,000 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aa1 1,064,330
Revenue Bonds, CentraState Medical Center, Series 2006A,
5.000%, 7/01/30 - AGC Insured
90 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 95,551
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
250 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 261,450
Revenue Bonds, Hunterdon Medical Center,
Series 2006B, 5.000%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 125,654
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Kennedy Health System Obligated Group, Series 2001:
400 5.500%, 7/01/21 7/11 at 100.00 A2 423,076
140 5.625%, 7/01/31 7/11 at 100.00 A2 148,495
510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 532,282
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,318,621
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A2 3,733,274
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
435 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 450,595
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
700 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 728,889
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
195 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 202,548
Revenue Bonds, South Jersey Hospital System,
Series 2006, 5.000%, 7/01/36
2,500 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 2,685,525
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,192,056
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,542,315
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/07 at 101.50 Aa3 1,117,677
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American
Home Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
17,420 Total Health Care 18,363,868
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,315,768
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.1% (6.1% OF TOTAL INVESTMENTS)
$ 620 New Jersey Economic Development Authority, Retirement 11/16 at 100.00 N/R $ 627,831
Community Revenue Bonds, Seabrook Village, Series 2006,
5.250%, 11/15/36
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A- 1,071,730
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 4,265,079
375 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 370,804
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,995 Total Long-Term Care 6,335,444
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.7% (1.1% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 755,363
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 405,778
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,161,141
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 16.8% (11.3% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 451,228
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,069,580
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 827,768
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
530 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 592,938
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
535 Mansfield Township Board of Education, Warren County, 3/07 at 101.00 AAA 546,604
New Jersey, Certificates of Participation, Series 1995,
5.900%, 3/01/15 - MBIA Insured
700 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 753,452
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 380,821
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
655 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 707,642
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 -
AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,109,900
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 821,220
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 320,854
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 569,452
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,023,165
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 714,795
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 925,632
System Bonds, Series 2006A, 5.500%, 12/15/22
290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 293,695
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- $ 536,204
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
10,665 Total Tax Obligation/Limited 11,644,950
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.3% (15.0% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 530,970
Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 642,576
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
505 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call A 585,679
Series 1991C, 6.500%, 1/01/16
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,131,840
5.000%, 1/01/19 - FGIC Insured
820 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 867,347
5.000%, 1/01/35 - FSA Insured
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 269,483
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 527,270
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,176,340
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 2,096,760
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,641,197
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 51,861
------------------------------------------------------------------------------------------------------------------------------------
14,225 Total Transportation 15,521,323
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.1% (19.6% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 547,850
625 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 675,431
700 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 756,483
3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,193,950
General Obligation Bonds, Series 2002, 5.000%, 4/15/21
(Pre-refunded 4/15/12) - FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
800 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 871,336
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 343,089
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 1,377,438
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21 (Pre-refunded 7/01/12)
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 721,460
System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded
12/15/11) - MBIA Insured
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 1,105,310
System Bonds, Series 2003C, 5.500%, 6/15/18
(Pre-refunded 6/15/13)
535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 583,744
System Bonds, Series 2005D, 5.000%, 6/15/19
(Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 198,206
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,833,186
3,000 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 3,214,679
Authority, Revenue Bonds, Series 2002, 5.000%, 12/01/25
(Pre-refunded 12/01/12) - FGIC Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,073,230
Bonds, Series 2000A, 5.500%, 10/01/40 (ETM)
45
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,495 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa $ 1,624,153
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,078,890
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
18,500 Total U.S. Guaranteed 20,198,435
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.9% (6.6% OF TOTAL INVESTMENTS)
470 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 476,871
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 2,404,604
5.250%, 10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 771,443
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,196,469
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,520 Total Utilities 6,849,387
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.0% (0.7% OF TOTAL INVESTMENTS)
150 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 164,478
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 536,050
Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 700,528
------------------------------------------------------------------------------------------------------------------------------------
$ 96,325 Total Investments (cost $97,870,150) - 148.7% 103,288,573
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 669,871
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.7)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 69,458,444
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
46
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,141,710
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.1% (16.6% OF TOTAL INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,054,900
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 238,858
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,150,390
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,255,069
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,089,920
Educational Facilities Revenue Bonds, Westtown School,
Series 2002, 5.000%, 1/01/26 - AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,234,870
Haverford College, Series 2000, 5.750%, 11/15/29
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,841,482
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 903,899
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,424,776
Bonds, Villanova University, Series 2003, 5.250%, 8/01/18 -
FGIC Insured
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,048,590
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project, Series
1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 574,428
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 548,960
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 523,825
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 499,408
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 476,164
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,492,336
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 8,307,360
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 5,289,550
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,465,867
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,242,000
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 4,174,453
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,043,420
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA 2,117,520
Revenue Bonds, University of Pennsylvania, Series 2005C,
5.000%, 7/15/38
47
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA $ 3,147,969
Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 -
RAAI Insured
6,500 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 6,915,610
Series 2005, 5.000%, 9/01/29
510 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 527,039
Revenue Bonds, Franklin Towne Charter High School,
Series 2006A, 5.250%, 1/01/27
6,000 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 Aaa 6,082,560
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,785,063
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/18
5 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/07 at 100.00 N/R 5,016
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
65,820 Total Education and Civic Organizations 67,461,302
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 9.3% (5.7% OF TOTAL INVESTMENTS)
1,555 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,604,294
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,192,147
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,631,350
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,333,850
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 9,788,219
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,225 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 1,230,611
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 AAA 1,728,276
Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 550,589
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 389,151
960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,022,218
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,608,495
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
21,615 Total Health Care 23,079,200
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 3,485,955
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 -
XLCA Insured
800 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 835,520
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A,
5.625%, 7/01/35
430 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/07 at 100.00 A2 430,529
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,530 Total Housing/Multifamily 4,752,004
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.0% (4.9% OF TOTAL INVESTMENTS)
10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 10,163,799
Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
2,805 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,880,342
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 3,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ $ 3,624,950
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 970,099
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,210,556
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,405 Total Housing/Single Family 19,849,746
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.3% (2.7% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,361,700
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,440,700
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 10,802,400
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4% (1.4% OF TOTAL INVESTMENTS)
1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,552,350
Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,550 5.000%, 11/01/26 11/16 at 100.00 A+ 1,624,168
840 5.000%, 11/01/36 11/16 at 100.00 A+ 877,464
230 Philadelphia Authority for Industrial Development, 5/08 at 102.00 N/R 234,986
Pennsylvania, Health Care Facilities Revenue Bonds,
Paul's Run, Series 1998A, 5.875%, 5/15/28
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,586,295
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,620 Total Long-Term Care 5,875,263
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 1,279,807
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,830,098
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 3,109,905
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.4% (16.8% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,905,246
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,325,202
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
1,255 Cumberland Valley School District, Cumberland County, No Opt. Call Aaa 1,370,297
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/15 - FSA Insured
2,345 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,524,721
Series 2005, 5.000%, 10/01/20
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 6,851,940
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
7,500 Montgomery County, Pennsylvania, General Obligation Bonds, 7/09 at 100.00 Aaa 7,697,850
Series 1999, 5.000%, 7/15/24
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,058,780
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
Pennsylvania, General Obligation Bonds, Second Series 2005:
1,500 5.000%, 1/01/18 1/16 at 100.00 AA 1,627,260
2,100 5.000%, 1/01/19 1/16 at 100.00 AA 2,271,528
49
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA $ 4,359,720
5.000%, 10/01/18
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,374,100
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
2,475 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,750,789
Series 2006B, 5.250%, 9/01/16 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 Aaa 1,152,454
General Obligation Bonds, Series 2006A, 5.000%, 4/01/22 -
FGIC Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 483,377
Revenue Bonds, Conneaut School District, Series 2003,
5.250%, 11/01/21 - FGIC Insured
21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA 24,798,060
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.500%, 6/01/28 - FSA Insured (UB)
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,546,879
General Obligation Bonds, Series 2001A, 5.000%, 4/01/18 -
FSA Insured
415 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 447,955
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
1,600 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 1,734,736
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
61,170 Total Tax Obligation/General 68,280,894
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.4% (15.6% OF TOTAL INVESTMENTS)
5,045 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,321,264
Pennsylvania, Revenue Bonds, Guaranteed County Building
Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured
3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AAA 3,642,800
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29 -
FGIC Insured
9,050 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 9,568,203
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured (UB)
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,876,814
Special Tax Revenue Refunding Bonds, Philadelphia Funding
Program, Series 1999, 4.750%, 6/15/23 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue
Bonds, Series 2006B:
6,775 4.750%, 12/01/30 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,021,712
7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,896,412
100 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 111,634
Bonds, Series 2005A, 5.250%, 7/15/16 - FSA Insured
10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,579,835
Lease Revenue Bonds, Series 2001B, 5.250%, 10/01/30 -
FSA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,902,392
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium Authority, 8/09 at 101.00 AAA 4,136,400
Pennsylvania, Sales Tax Revenue Bonds, Regional Asset
District, Series 1999, 5.000%, 2/01/29 - AMBAC Insured
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 1,140,434
Tax Increment Financing District Bonds, Center Triangle
Project, Series 1999A, 6.100%, 5/01/19
3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 1,023,703
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
62,685 Total Tax Obligation/Limited 63,221,603
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.8% (6.6% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 675,272
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,163,958
Revenue Bonds, Lehigh Valley Airport System, Series 2000A,
6.000%, 5/15/30 - MBIA Insured (Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,854,464
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 - ACA Insured
(Alternative Minimum Tax)
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA $ 2,317,458
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds,
Series 2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 4,121,971
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,152,094
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,241,300
Series 2001B, 5.250%, 6/15/31 - FGIC Insured (Alternative
Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,389,458
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,265 Total Transportation 26,915,975
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.9% (15.3% OF TOTAL INVESTMENTS) (4)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,778,052
Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) -
FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 1,404,797
Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded
5/01/11) - FGIC Insured
830 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 904,534
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded 7/01/13)
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AAA 5,349,650
Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) -
MBIA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,781,330
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC Insured
1,025 Norristown Area School District, Montgomery County, 3/13 at 100.00 Aaa 1,101,096
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/19 (Pre-refunded 3/01/13) - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,500 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 1,646,070
2,600 5.250%, 12/01/17 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,853,188
2,125 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,331,933
2,125 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,331,933
Subordinate Lien Revenue Bonds, Series 2003B,
5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,887,907
Bonds, Series 2001, 5.000%, 7/15/41 (Pre-refunded 7/15/11) -
AMBAC Insured
760 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 909,895
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,739,320
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,506,382
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
(Pre-refunded 9/15/11) - FGIC Insured
785 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 860,619
Revenue Bonds, Conneaut School District, Series 2003,
5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,152,260
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded 12/15/10) - MBIA Insured
3,605 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 (4) 3,920,041
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19 (Pre-refunded 2/15/13)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,622,410
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
5,020 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 6,236,848
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
1,700 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,870,204
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
56,370 Total U.S. Guaranteed 62,188,469
------------------------------------------------------------------------------------------------------------------------------------
51
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.6% (4.1% OF TOTAL INVESTMENTS)
$ 1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA $ 1,295,863
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
2,015 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,110,551
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,491,649
Pollution Control Revenue Bonds, Pennsylvania Power and
Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,804,710
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 736,603
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,168,060
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,911,862
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
15,595 Total Utilities 16,519,298
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.4% (8.2% OF TOTAL INVESTMENTS)
2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,359,571
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,294,350
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company, Series 2001, 5.350%, 10/01/31 -
AMBAC Insured (Alternative Minimum Tax)
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,628,312
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,548,446
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,521,408
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/20 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 2,129,780
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,331,613
Revenue Bonds, Series 2004, 5.000%, 4/01/20 - MBIA Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 2001A:
$ 5,525 5.375%, 11/01/20 - FGIC Insured 11/12 at 100.00 AAA $ 5,981,032
5,000 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 5,244,550
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,291,750
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
31,320 Total Water and Sewer 33,330,812
------------------------------------------------------------------------------------------------------------------------------------
$ 383,405 Total Investments (cost $386,801,576) - 163.0% 406,528,581
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.9)% (29,610,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 4,423,742
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 249,342,323
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
53
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.1% (13.3% OF TOTAL INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,087,437
Pennsylvania, College Revenue Bonds, Thiel College,
Series 1999A, 5.375%, 11/15/29 - ACA Insured
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 238,858
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA 1,328,540
Pennsylvania, Revenue Bonds, Duquesne University,
Series 2004A, 5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,158,525
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BB+ 3,031,320
Pennsylvania, College Revenue Bonds, Immaculata College,
Series 1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,685,333
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 828,574
Delaware County Authority, Pennsylvania, Revenue Refunding
Bonds, Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AAA 1,847,333
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,462,698
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,083,480
3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 AAA 3,256,605
Pennsylvania, Revenue Bonds, Student Cooperative
Association Inc./Indiana University of Pennsylvania - Student
Union Project, Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,551,438
Pennsylvania, Revenue Bonds, Arcadia University,
Series 2006, 4.500%, 4/01/30 - RAAI Insured
2,500 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 2,670,425
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/25 - MBIA Insured
4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 4,321,562
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,312,640
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,028,210
Bonds, LaSalle University, Series 1998, 5.250%, 5/01/23 -
MBIA Insured
2,100 Pennsylvania Higher Educational Facilities Authority, Revenue 6/10 at 100.00 AA 2,233,350
Bonds, Philadelphia University, Series 2000, 6.000%, 6/01/29 -
RAAI Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 3,236,010
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
5,750 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 5,977,988
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA 2,117,520
Bonds, University of Pennsylvania, Series 2005C,
5.000%, 7/15/38
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 1,415,730
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 1,028,730
University of the Sciences in Philadelphia Revenue Bonds,
Series 2005, 4.750%, 11/01/33 - XLCA Insured
470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 485,703
Revenue Bonds, Franklin Towne Charter High School,
Series 2006A, 5.250%, 1/01/27
1,545 State Public School Building Authority, Pennsylvania, 5/15 at 100.00 Aaa 1,661,725
College Revenue Bonds, Montgomery County Community
College, Series 2005, 5.000%, 5/01/18 - AMBAC Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,270 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa $ 2,429,354
Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 810,645
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/19
10 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/07 at 100.00 N/R 10,033
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
46,730 Total Education and Civic Organizations 49,299,766
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.2% (9.6% OF TOTAL INVESTMENTS)
1,455 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 1,501,124
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 14,336,418
Pennsylvania, Revenue Bonds, University of Pittsburgh
Medical Center System, Series 1997A, 5.625%, 4/01/27 -
MBIA Insured
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,312,459
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 5,398,650
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
2,425 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,552,410
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,333,850
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BB+ 2,006,860
2,000 5.625%, 7/01/24 7/08 at 100.00 BB+ 2,006,980
Sayre Health Care Facility Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 AAA 1,815,753
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,279,260
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 498,152
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 347,081
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,080,782
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
------------------------------------------------------------------------------------------------------------------------------------
34,080 Total Health Care 35,469,779
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (3.4% OF TOTAL INVESTMENTS)
4,005 Bucks County Redevelopment Authority, Pennsylvania, 2/07 at 100.00 Baa2 4,010,126
Section 8 Assisted Second Lien Multifamily Mortgage
Revenue Bonds, Country Commons Apartments,
Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 2,081,620
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Mandatory put 4/01/22) (Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A:
2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 AAA 2,185,041
3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 AAA 3,591,590
740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 772,856
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
12,180 Total Housing/Multifamily 12,641,233
------------------------------------------------------------------------------------------------------------------------------------
55
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.1% (3.2% OF TOTAL INVESTMENTS)
$ 1,025 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa $ 1,065,590
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 4,065,520
Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
350 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 359,587
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (Alternative Minimum Tax)
1,440 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,478,678
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
3,300 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,417,810
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
Pittsburgh Urban Redevelopment Authority, Pennsylvania,
Mortgage Revenue Bonds, Series 1997A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA 853,475
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 782,794
------------------------------------------------------------------------------------------------------------------------------------
11,725 Total Housing/Single Family 12,023,454
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.0% (1.9% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/07 at 100.00 BB- 1,999,840
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,144,320
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,009,078
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 7,153,238
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.6% (2.9% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,037,550
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,637,334
620 5.000%, 11/01/36 11/16 at 100.00 A+ 647,652
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 2/07 at 100.00 AA 1,001,780
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,135,780
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 1,202,116
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/28
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,375,988
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,685,772
------------------------------------------------------------------------------------------------------------------------------------
10,415 Total Long-Term Care 10,723,972
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.7% (1.7% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 1,208,707
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 528,725
Environmental Improvement Revenue Refunding Bonds,
Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 4,705,965
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 6,443,397
------------------------------------------------------------------------------------------------------------------------------------
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.3% (14.7% OF TOTAL INVESTMENTS)
$ 2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa $ 2,240,649
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
1,250 Cumberland Valley School District, Cumberland County, No Opt. Call Aaa 1,364,838
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/15 - FSA Insured
2,315 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,492,422
Series 2005, 5.000%, 10/01/20
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 875,070
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,340,075
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,300,255
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,058,780
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
2,115 Owen J. Roberts School District, Chester County, Pennsylvania, 5/16 at 100.00 Aaa 2,272,948
General Obligation Bonds, Series 2006, 5.000%, 5/15/24 -
FSA Insured
10,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 10,000,000
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
Pennsylvania, General Obligation Bonds, Second Series 2005:
2,000 5.000%, 1/01/18 1/16 at 100.00 AA 2,169,680
1,900 5.000%, 1/01/19 1/16 at 100.00 AA 2,055,192
3,200 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 3,487,776
5.000%, 10/01/18
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 3,000,861
Series 2006B, 5.250%, 9/01/16 - FSA Insured
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
2,930 5.000%, 2/01/20 - FGIC Insured 2/13 at 100.00 Aaa 3,115,323
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,078,654
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 391,046
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 529,651
2,550 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 2,491,325
Revenue Bonds, York City School District, Series 2003,
4.000%, 5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,620,791
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
8,900 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 8,965,371
Counties, Pennsylvania, General Obligation Bonds,
Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB)
1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 1,517,894
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
55,970 Total Tax Obligation/General 54,368,601
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.6% (8.6% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 1,585,890
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue
Bonds, Series 2006B:
6,780 4.750%, 12/01/30 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,026,894
7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,896,412
1,700 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,897,778
Bonds, Series 2005A, 5.250%, 7/15/16 - FSA Insured
7,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 7,540,843
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 938,938
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,784,269
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
57
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
York County School of Technology Authority, Pennsylvania,
Lease Revenue Bonds, Series 2003:
$ 1,000 5.375%, 2/15/20 - FGIC Insured 2/13 at 100.00 Aaa $ 1,084,480
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,087,550
------------------------------------------------------------------------------------------------------------------------------------
31,905 Total Tax Obligation/Limited 31,843,054
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.6% (11.7% OF TOTAL INVESTMENTS)
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,350,048
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 - MBIA Insured (Alternative Minimum Tax)
650 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 696,709
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,981,524
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,765,869
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,883,144
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,520,399
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 -
FGIC Insured (Alternative Minimum Tax)
6,525 Pittsburgh and Allegheny County Sports and Exhibition 6/07 at 100.00 Aaa 6,532,895
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,140,260
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 -
FGIC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,488,010
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,987,296
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,385 Total Transportation 43,346,154
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.8% (15.0% OF TOTAL INVESTMENTS) (4)
1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 1,823,600
Revenue Bonds, Series 2000, 5.500%, 12/01/30
(Pre-refunded 12/01/10) - MBIA Insured
Butler County, Pennsylvania, General Obligation Bonds,
Series 2003:
1,000 5.250%, 7/15/21 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,092,680
1,200 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,311,216
850 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 926,330
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded 7/01/13)
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,259,705
Series 2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) -
AMBAC Insured
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,000 5.000%, 9/01/19 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,074,240
1,000 5.000%, 9/01/20 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,074,240
1,735 5.000%, 9/01/21 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,863,806
2,000 5.000%, 9/01/22 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,148,480
2,270 5.000%, 9/01/23 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,438,525
2,600 5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,793,024
1,110 North Hills School District, Allegheny County, Pennsylvania, 12/15 at 100.00 AAA 1,215,284
General Obligation Bonds, Series 2005, 5.000%, 12/15/20
(Pre-refunded 12/15/15) - FSA Insured
1,140 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,304,228
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,597,770
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
$ 1,000 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA $ 1,097,380
2,400 5.250%, 12/01/17 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,633,712
2,000 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,194,760
1,000 5.250%, 12/01/19 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 1,097,380
2,000 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,194,760
Subordinate Lien Revenue Bonds, Series 2003B,
5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 6,000,125
General Ordinance, Second Series 1999, 5.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 (ETM) No Opt. Call AAA 1,077,320
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,541,407
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,361,607
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
640 5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 701,651
865 5.250%, 11/01/22 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 948,325
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,745,375
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,520 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,888,448
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,100,120
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
50,675 Total U.S. Guaranteed 55,505,498
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.0% (7.5% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,166,276
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,298,719
Exempt Facilities Revenue Bonds, Shippingport Project,
Series 1998A, 5.375%, 6/01/28 - AMBAC Insured
(Alternative Minimum Tax)
2,735 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,864,694
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/07 at 102.00 AAA 7,791,817
Pollution Control Revenue Bonds, Metropolitan Edison
Company, Series 1997A, 5.950%, 5/01/27 - AMBAC Insured
(Alternative Minimum Tax)
2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 2,119,500
Pennsylvania, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC, Series 2001A, 5.850%, 6/01/27
(Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,204,546
Pollution Control Revenue Bonds, Pennsylvania Power and
Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,663,202
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 736,603
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,084,030
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,830 Total Utilities 27,929,387
------------------------------------------------------------------------------------------------------------------------------------
59
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.4% (6.5% OF TOTAL INVESTMENTS)
$ 305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA $ 326,350
Revenue Bonds, Series 2000, 5.500%, 12/01/30 -
MBIA Insured
2,500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,675,250
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,257,040
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,753,971
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/23 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,129,780
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,399,160
Revenue Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,585,120
Water Facility Revenue Bonds, Consumers Water Company,
Shenango Valley Division Project, Series 2000,
6.000%, 7/01/30 - MBIA Insured (Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania, Sewer
Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,212,664
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,691,891
2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,131,860
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,114,400
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,770 Total Water and Sewer 24,277,486
------------------------------------------------------------------------------------------------------------------------------------
$ 357,605 Total Investments (cost $353,719,214) - 158.8% 371,025,019
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.5)% (22,185,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,917,139
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.5)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 233,657,158
====================================================================================================================
60
FORWARD SWAPS OUTSTANDING AT DECEMBER 31, 2006:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $4,500,000 Receive 3-Month USD-LIBOR 5.073% Semi-Annually 12/01/07 6/01/32 $135,762
------------------------------------------------------------------------------------------------------------------------------------
$135,762
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
61
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,141,710
Solid Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 33.6% (22.2% OF TOTAL INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 119,429
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 238,819
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,360,520
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 708,750
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,058,010
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 317,683
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 156,030
1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,425,647
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 295,512
Pennsylvania, Revenue Bonds, Arcadia University,
Series 2006, 4.500%, 4/01/30 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 1,065,180
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,057,910
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
220 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 224,732
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,572,600
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
700 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 755,069
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,176,819
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,298,710
Bonds, Series 2002, 5.250%, 8/15/14
105 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 108,508
Revenue Bonds, Franklin Towne Charter High School,
Series 2006A, 5.250%, 1/01/27
470 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 471,208
Pennsylvania, Revenue Bonds, Leadership Learning Partners,
Series 2005A, 5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 232,976
Revenue Bonds, Richard Allen Preparatory Charter School,
Series 2006, 6.250%, 5/01/33
565 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa 604,663
Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30
------------------------------------------------------------------------------------------------------------------------------------
16,215 Total Education and Civic Organizations 17,248,775
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.0% (12.5% OF TOTAL INVESTMENTS)
260 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 268,242
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 400 Allegheny County Hospital Development Authority, 11/10 at 102.00 Ba3 $ 475,984
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/30
700 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 727,755
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,566,975
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
230 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 238,740
Hospital Revenue Bonds, Fulton County Medical Center
Project, Series 2006, 5.900%, 7/01/40
100 Jeannette Health Services Authority, Pennsylvania, Hospital 5/07 at 101.50 BB- 100,300
Revenue Bonds, Jeannette District Memorial Hospital,
Series 1996A, 6.000%, 11/01/18
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 631,524
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 266,770
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 Aa3 2,338,297
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
70 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 70,321
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
25 Pottsville Hospital Authority, Pennsylvania, Hospital Revenue 7/08 at 100.00 BB+ 25,087
Bonds, Pottsville Hospital and Warne Clinic, Series 1998,
5.625%, 7/01/24
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 181,018
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,064,540
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 804,248
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
9,205 Total Health Care 9,759,801
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.0% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AAA 739,445
Revenue Bonds, Slippery Rock University Foundation Inc.,
Student Housing Project, Series 2005A, 5.000%, 7/01/37 -
XLCA Insured
100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 104,440
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 843,885
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.6% (5.0% OF TOTAL INVESTMENTS)
1,610 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,654,001
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1998DD-2,
5.400%, 11/01/29 (Alternative Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 1,016,380
Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
505 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 518,564
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
700 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 724,990
Mortgage Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,815 Total Housing/Single Family 3,913,935
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.8% (4.5% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,144,320
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,367,763
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 3,512,083
------------------------------------------------------------------------------------------------------------------------------------
63
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.9% (7.9% OF TOTAL INVESTMENTS)
$ 285 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ $ 297,711
Health Center Revenue Bonds, Masonic Homes Project,
Series 2006, 5.000%, 11/01/36
2,100 Lancaster County Hospital Authority, Pennsylvania, 12/11 at 100.00 A- 2,229,465
Health Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 292,000
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A:
240 5.250%, 6/01/14 6/08 at 100.00 BB+ 240,379
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,551
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 3,025,823
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,835 Total Long-Term Care 6,134,929
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.2% (2.8% OF TOTAL INVESTMENTS)
350 Allegheny County Industrial Development Authority, No Opt. Call Ba1 370,671
Pennsylvania, Revenue Bonds, United States Steel
Corporation, Series 2005, 5.500%, 11/01/16
210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 213,301
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
750 Bucks County Industrial Development Authority, 11/17 at 100.00 BBB+ 799,050
Pennsylvania, Environmental Improvement Revenue Bonds,
USX Corporation Project, Series 1995, 5.400%, 11/01/17
(Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 784,328
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 2,167,350
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.0% (11.2% OF TOTAL INVESTMENTS)
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,617,160
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
300 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 326,979
5.000%, 10/01/18
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,339,026
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
450 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 500,144
Series 2006B, 5.250%, 9/01/16 - FSA Insured
1,960 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 1,974,396
Counties, Pennsylvania, General Obligation Bonds,
Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
8,125 Total Tax Obligation/General 8,757,705
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.3% (7.5% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,063,230
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
450 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 475,767
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,126,990
Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,074,960
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,619,295
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A, 5.500%, 4/15/19 - FGIC Insured
630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 205,393
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 256,333
Tanger Outlet Victory Center Tax Increment Bonds,
Series 2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
5,830 Total Tax Obligation/Limited 5,821,968
------------------------------------------------------------------------------------------------------------------------------------
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.1% (7.4% OF TOTAL INVESTMENTS)
$ 130 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 $ 139,342
New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,940
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 451,836
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,841,070
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 -
FGIC Insured (Alternative Minimum Tax)
2,210 Pittsburgh and Allegheny County Sports and Exhibition 6/07 at 100.00 Aaa 2,212,740
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,510 Total Transportation 5,727,928
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.6% (11.0% OF TOTAL INVESTMENTS) (4)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,169,460
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
(Pre-refunded 1/01/13)
170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 185,266
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded 7/01/13)
750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 817,920
Series 2003A, 5.250%, 11/15/16 (Pre-refunded 5/15/13) -
MBIA Insured
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,200,571
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17
(Pre-refunded 2/15/12) - FGIC Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,097,380
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15
(Pre-refunded 12/01/13) - MBIA Insured
180 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 215,501
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,749,500
Bonds, Series 2002B, 5.625%, 8/01/18
(Pre-refunded 8/01/12) - FGIC Insured
1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 1,102,640
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11)
------------------------------------------------------------------------------------------------------------------------------------
7,705 Total U.S. Guaranteed 8,538,238
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.1% (4.0% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 518,345
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 313,355
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 147,321
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 - FSA Insured 8/13 at 100.00 AAA 1,072,880
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,071,680
------------------------------------------------------------------------------------------------------------------------------------
2,925 Total Utilities 3,123,581
------------------------------------------------------------------------------------------------------------------------------------
65
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA $ 535,050
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 638,934
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,173,984
------------------------------------------------------------------------------------------------------------------------------------
$ 73,375 Total Investments (cost $73,619,389) - 151.5% 77,865,872
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.5)% (1,305,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (178,064)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.7)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 51,382,808
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements.
66
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.1% (12.5% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 1,194,290
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
700 Allegheny County Higher Education Building Authority, 3/27 at 100.00 AA- 701,799
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 810,000
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 343,853
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 366,143
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 177,552
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,555,669
Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 -
FGIC Insured
450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 443,268
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 291,130
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
800 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 862,936
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
1,500 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 1,619,850
Bonds, Series 2002, 5.250%, 8/15/12
115 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 118,842
Pennsylvania, Revenue Bonds, Franklin Towne Charter
High School, Series 2006A, 5.250%, 1/01/27
530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 531,362
Pennsylvania, Revenue Bonds, Leadership Learning Partners,
Series 2005A, 5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 273,494
Pennsylvania, Revenue Bonds, Richard Allen Preparatory
Charter School, Series 2006, 6.250%, 5/01/33
565 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa 604,663
Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,080,860
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
10,280 Total Education and Civic Organizations 10,975,711
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.4% (9.5% OF TOTAL INVESTMENTS)
295 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 304,352
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
100 9.250%, 11/15/22 11/10 at 102.00 Ba3 119,194
300 9.250%, 11/15/30 11/10 at 102.00 Ba3 356,988
800 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 831,720
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,053,580
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
270 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 280,260
Hospital Revenue Bonds, Fulton County Medical Center
Project, Series 2006, 5.900%, 7/01/40
120 Jeannette Health Services Authority, Pennsylvania, Hospital 5/07 at 101.50 BB- 120,360
Revenue Bonds, Jeannette District Memorial Hospital,
Series 1996A, 6.000%, 11/01/18
67
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 $ 631,524
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 76,131
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 1,004,580
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 239,582
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,593,594
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 26,809
600 6.250%, 1/01/32 1/12 at 100.00 BBB 643,398
------------------------------------------------------------------------------------------------------------------------------------
7,855 Total Health Care 8,282,072
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 845,080
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 -
XLCA Insured
120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 125,328
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 970,408
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS)
1,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 1,016,380
Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
575 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 590,445
Mortgage Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 828,560
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,375 Total Housing/Single Family 2,435,385
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.7% (3.8% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,281,070
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.8% (2.5% OF TOTAL INVESTMENTS)
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,245,229
Revenue Bonds, Pennswood Village Project, Series 2002A,
6.000%, 10/01/34
305 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ 318,603
Health Center Revenue Bonds, Masonic Homes Project,
Series 2006, 5.000%, 11/01/36
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 292,000
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A:
260 5.250%, 6/01/14 6/08 at 100.00 BB+ 260,411
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,551
------------------------------------------------------------------------------------------------------------------------------------
2,055 Total Long-Term Care 2,165,794
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.5% (2.9% OF TOTAL INVESTMENTS)
400 Allegheny County Industrial Development Authority, No Opt. Call Ba1 423,624
Pennsylvania, Revenue Bonds, United States Steel
Corporation, Series 2005, 5.500%, 11/01/16
280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 284,402
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 1,000 Bucks County Industrial Development Authority, Pennsylvania, 11/17 at 100.00 BBB+ $ 1,065,400
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 784,328
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 2,557,754
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL -27.1% (17.8% OF TOTAL INVESTMENTS)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,870,135
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
625 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 672,900
Series 2005, 5.000%, 10/01/20
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 4,567,959
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 785,915
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,081,340
3,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 3,464,073
Series 2001, 5.000%, 11/15/15
300 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 333,429
Series 2006B, 5.250%, 9/01/16 - FSA Insured
2,200 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 2,216,159
Counties, Pennsylvania, General Obligation Bonds,
Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB)
500 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 542,105
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
14,370 Total Tax Obligation/General 15,534,015
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.9% (16.3% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,063,230
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,119,100
Pennsylvania, Revenue Bonds, County Guaranteed,
Woodland Place Project, Series 2002, 5.400%, 3/01/31 -
FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed 9/11 at 100.00 Aaa 4,182,599
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,352,388
Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured
2,000 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 2,113,180
Lease Revenue Bonds, Series 2001B, 5.125%, 10/01/26 -
FSA Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AAA 1,079,530
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,887,008
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 231,474
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 256,333
Tanger Outlet Victory Center Tax Increment Bonds,
Series 2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
13,910 Total Tax Obligation/Limited 14,284,842
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.2% (3.4% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 139,342
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,940
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 720,786
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
69
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa $ 1,035,100
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Transportation 2,978,168
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.0% (17.7% OF TOTAL INVESTMENTS) (4)
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,149,620
Series 2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) -
FGIC Insured
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,169,460
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
(Pre-refunded 1/01/13)
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 496,045
Series 2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) -
MBIA Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,597,770
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,097,380
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15
(Pre-refunded 12/01/13) - MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,198,123
Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) -
AMBAC Insured
75 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 89,792
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,171,800
Bonds, Series 2002A, 5.500%, 2/01/31
(Pre-refunded 2/01/12) - FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,486,365
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
35 West Cornwall Township Municipal Authority, 12/11 at 100.00 BBB+ (4) 38,592
Pennsylvania, College Revenue Bonds, Elizabethtown College
Project, Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11)
------------------------------------------------------------------------------------------------------------------------------------
14,825 Total U.S. Guaranteed 15,494,947
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4% (3.5% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 346,339
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 152,582
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,591,433
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,880 Total Utilities 3,090,354
------------------------------------------------------------------------------------------------------------------------------------
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.5% (6.2% OF TOTAL INVESTMENTS)
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA $ 4,789,167
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 638,934
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 5,428,101
------------------------------------------------------------------------------------------------------------------------------------
$ 82,800 Total Investments (cost $82,758,172) - 152.4% 87,478,621
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.5)% (1,460,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (111,251)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,407,370
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates. Certain mortgage-backed securities may be
subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's or
Moody's rating. Ratings below BBB by Standard & Poor's
Group or Baa by Moody's Investor Service, Inc. are
considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust
reflected as a financing transaction pursuant to the
provisions of SFAS No. 140.
See accompanying notes to financial statements
71
Statement of
ASSETS AND LIABILITIES December 31, 2006 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $446,871,039, $260,706,955,
$139,998,983 and $97,870,150, respectively) $465,389,359 $272,742,335 $146,608,648 $103,288,573
Receivables:
Interest 6,627,974 3,999,902 2,187,719 1,518,366
Investments sold -- 165,000 -- --
Unrealized appreciation on forward swaps -- -- -- --
Other assets 47,498 35,531 4,335 4,220
------------------------------------------------------------------------------------------------------------------------------------
Total assets 472,064,831 276,942,768 148,800,702 104,811,159
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank borrowings 2,258,268 730,126 995,216 788,910
Floating rate obligations -- -- -- --
Accrued expenses:
Management fees 248,007 147,437 48,153 29,637
Other 110,888 73,935 30,233 22,860
Preferred share dividends payable 69,476 27,674 18,405 11,308
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,686,639 979,172 1,092,007 852,715
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $307,378,192 $184,363,596 $ 99,708,695 $ 69,458,444
====================================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,570,163 4,519,480
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.01 $ 15.30 $ 15.18 $ 15.37
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,702 $ 45,195
Paid-in surplus 289,027,855 172,022,510 93,284,252 64,099,461
Undistributed (Over-distribution of) net investment income (395,042) 188,461 (62,265) (67,018)
Accumulated net realized gain (loss) from investments and
derivative transactions 22,216 (3,250) (188,659) (37,617)
Net unrealized appreciation (depreciation) of
investments and derivative transactions 18,518,320 12,035,380 6,609,665 5,418,423
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $307,378,192 $184,363,596 $ 99,708,695 $ 69,458,444
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
72
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $386,801,576, $353,719,214,
$73,619,389 and $82,758,172, respectively) $406,528,581 $371,025,019 $77,865,872 $87,478,621
Receivables:
Interest 4,954,231 4,542,723 1,122,659 1,330,659
Investments sold -- -- -- --
Unrealized appreciation on forward swaps -- 135,762 -- --
Other assets 37,328 40,554 4,053 4,081
------------------------------------------------------------------------------------------------------------------------------------
Total assets 411,520,140 375,744,058 78,992,584 88,813,361
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank borrowings 275,505 1,459,006 1,247,671 1,381,011
Floating rate obligations 29,610,000 22,185,000 1,305,000 1,460,000
Accrued expenses:
Management fees 202,308 186,763 25,040 24,510
Other 36,741 101,411 19,736 22,197
Preferred share dividends payable 53,263 54,720 12,329 18,273
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 30,177,817 23,986,900 2,609,776 2,905,991
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $249,342,323 $233,657,158 $51,382,808 $57,407,370
====================================================================================================================================
Common shares outstanding 16,301,498 15,826,751 3,326,799 3,724,790
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.30 $ 14.76 $ 15.45 $ 15.41
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 158,268 $ 33,268 $ 37,248
Paid-in surplus 230,741,367 216,526,365 47,218,292 52,797,234
Undistributed (Over-distribution of) net investment income (476,993) (360,141) (39,298) (107,980)
Accumulated net realized gain (loss) from investments and
derivative transactions (812,071) (108,901) (75,937) (39,581)
Net unrealized appreciation (depreciation) of
investments and derivative transactions 19,727,005 17,441,567 4,246,483 4,720,449
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $249,342,323 $233,657,158 $51,382,808 $57,407,370
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
73
Statement of
OPERATIONS Six Months Ended December 31, 2006 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $11,071,859 $ 6,445,380 $3,500,502 $2,509,396
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,464,323 870,080 469,871 331,682
Preferred shares - auction fees 204,165 115,442 60,494 43,479
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 19,248 11,154 877 834
Floating rate obligations interest expense and fees -- -- -- --
Custodian's fees and expenses 53,286 37,427 23,694 14,643
Directors'/Trustees' fees and expenses 5,278 3,042 1,805 1,245
Professional fees 12,863 9,627 7,285 6,759
Shareholders' reports - printing and mailing expenses 26,032 12,712 9,999 7,775
Stock exchange listing fees 5,010 4,961 281 194
Investor relations expense 29,668 17,980 9,226 6,745
Other expenses 16,632 11,203 8,545 7,843
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,851,628 1,108,751 597,118 426,240
Custodian fee credit (16,125) (7,267) (4,303) (6,554)
Expense reimbursement -- -- (185,236) (156,449)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,835,503 1,101,484 407,579 263,237
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 9,236,356 5,343,896 3,092,923 2,246,159
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 290,371 (3,236) 1,886 18,467
Change in net unrealized appreciation (depreciation)
of investments 10,475,281 6,645,330 3,480,475 2,374,648
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 10,765,652 6,642,094 3,482,361 2,393,115
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,472,716) (1,438,213) (752,827) (565,769)
From accumulated net realized gains (168,265) (27,732) (7,661) (3,395)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,640,981) (1,465,945) (760,488) (569,164)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations $17,361,027 $10,520,045 $5,814,796 $4,070,110
====================================================================================================================================
See accompanying notes to financial statements.
74
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,250,462 $ 8,498,226 $1,859,287 $2,092,296
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,191,692 1,101,180 243,801 274,506
Preferred shares - auction fees 166,356 148,838 31,506 35,919
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 21,087 17,971 960 800
Floating rate obligations interest expense and fees 252,887 82,666 7,329 8,199
Custodian's fees and expenses 85,262 55,906 16,199 17,992
Directors'/Trustees' fees and expenses 4,371 4,155 982 1,068
Professional fees 11,643 10,941 6,141 6,319
Shareholders' reports - printing and mailing expenses 25,972 17,561 6,582 8,258
Stock exchange listing fees 4,952 5,034 142 160
Investor relations expense 25,005 23,151 5,025 5,852
Other expenses 13,481 11,053 7,621 7,872
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,817,831 1,493,579 331,329 371,986
Custodian fee credit (18,201) (11,275) (3,615) (1,512)
Expense reimbursement -- -- (95,831) (129,480)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,799,630 1,482,304 231,883 240,994
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,450,832 7,015,922 1,627,404 1,851,302
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 9,398 33,072 47,310 107,174
Change in net unrealized appreciation (depreciation)
of investments 9,488,061 8,617,175 1,694,561 1,840,884
Change in net unrealized appreciation (depreciation)
of forward swaps -- 135,762 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 9,497,459 8,786,009 1,741,871 1,948,058
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,221,885) (1,995,569) (408,650) (466,025)
From accumulated net realized gains -- -- -- (22,241)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,221,885) (1,995,569) (408,650) (488,266)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations $14,726,406 $13,806,362 $2,960,625 $3,311,094
====================================================================================================================================
See accompanying notes to financial statements.
75
Statement of
CHANGES IN NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,236,356 $ 18,688,118 $ 5,343,896 $ 10,793,726 $ 3,092,923 $ 6,237,805
Net realized gain (loss)
from investments 290,371 2,924,752 (3,236) 1,016,202 1,886 484,326
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of
investment restrictions -- -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 10,475,281 (18,288,152) 6,645,330 (11,273,653) 3,480,475 (5,541,649)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (2,472,716) (3,729,225) (1,438,213) (1,991,793) (752,827) (1,154,022)
From accumulated net
realized gains (168,265) (599,726) (27,732) (454,296) (7,661) (82,061)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 17,361,027 (1,004,233) 10,520,045 (1,909,814) 5,814,796 (55,601)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,821,281) (16,230,307) (4,232,991) (9,510,935) (2,541,512) (5,512,880)
From accumulated net realized gains (700,564) (4,917,869) (122,903) (3,721,776) (34,822) (678,056)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (7,521,845) (21,148,176) (4,355,894) (13,232,711) (2,576,334) (6,190,936)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 608,791 -- 159,660 92,709 122,384
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 608,791 -- 159,660 92,709 122,384
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 9,839,182 (21,543,618) 6,164,151 (14,982,865) 3,331,171 (6,124,153)
Net assets applicable to Common
shares at the beginning
of period 297,539,010 319,082,628 178,199,445 193,182,310 96,377,524 102,501,677
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $307,378,192 $297,539,010 $184,363,596 $178,199,445 $99,708,695 $ 96,377,524
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (395,042) $ (337,401) $ 188,461 $ 515,769 $ (62,265) $ 139,151
====================================================================================================================================
See accompanying notes to financial statements.
76
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
---------------------------- ----------------------------- ----------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,246,159 $ 4,467,174 $ 7,450,832 $ 14,590,128 $ 7,015,922 $ 14,058,368
Net realized gain (loss)
from investments 18,467 178,837 9,398 (822,081) 33,072 (44,620)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of
investment restrictions -- -- -- -- -- 27,169
Change in net unrealized
appreciation (depreciation)
of investments 2,374,648 (3,595,338) 9,488,061 (13,473,894) 8,617,175 (12,682,405)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- 135,762 --
Distributions to Preferred Shareholders:
From net investment income (565,769) (861,957) (2,221,885) (3,413,477) (1,995,569) (2,800,234)
From accumulated net
realized gains (3,395) (57,711) -- (261,069) -- (435,619)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 4,070,110 131,005 14,726,406 (3,380,393) 13,806,362 (1,877,341)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,789,190) (3,899,566) (5,102,372) (11,533,314) (5,270,312) (12,127,724)
From accumulated net realized gains (14,915) (424,522) -- (1,732,849) -- (3,389,440)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,804,105) (4,324,088) (5,102,372) (13,266,163) (5,270,312) (15,517,164)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 42,413 111,985 -- -- -- 142,460
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 42,413 111,985 -- -- -- 142,460
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,308,418 (4,081,098) 9,624,034 (16,646,556) 8,536,050 (17,252,045)
Net assets applicable to Common
shares at the beginning
of period 67,150,026 71,231,124 239,718,289 256,364,845 225,121,108 242,373,153
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $69,458,444 $67,150,026 $249,342,323 $239,718,289 $233,657,158 $225,121,108
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (67,018) $ 41,782 $ (476,993) $ (603,568) $ (360,141) $ (110,182)
====================================================================================================================================
See accompanying notes to financial statements.
77
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
----------------------------- ----------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,627,404 $ 3,240,349 $ 1,851,302 $ 3,667,111
Net realized gain (loss) from investments 47,310 (47,126) 107,174 239,396
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of
investment restrictions -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 1,694,561 (2,528,439) 1,840,884 (3,414,928)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (408,650) (637,236) (466,025) (715,207)
From accumulated net realized gains -- (40,350) (22,241) (47,059)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets applicable
to Common shares
from operations 2,960,625 (12,802) 3,311,094 (270,687)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,326,456) (2,902,469) (1,409,833) (2,942,584)
From accumulated net realized gains -- (336,361) (90,885) (363,540)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,326,456) (3,238,830) (1,500,718) (3,306,124)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 88,940 199,614 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 88,940 199,614 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,723,109 (3,052,018) 1,810,376 (3,576,811)
Net assets applicable to Common
shares at the beginning of period 49,659,699 52,711,717 55,596,994 59,173,805
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $51,382,808 $49,659,699 $57,407,370 $55,596,994
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (39,298) $ 68,404 $ (107,980) $ (83,424)
====================================================================================================================================
See accompanying notes to financial statements.
78
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund,
Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common
shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
are traded on the New York Stock Exchange while Common shares of New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or a forward
swap contract, each Fund may use a market price or fair market value quote
provided by a major broker/dealer in such investments. If it is determined that
the market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At December 31, 2006, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
79
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
---------------------------------------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
---------------------------------------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
===============================================================================================================
Inverse Floating Rate Securities
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of
80
Liabilities". In such instances, a fixed-rate bond deposited into a special
purpose trust is identified in the Portfolio of Investments as an "Underlying
bond of an inverse floating rate trust", with the Fund accounting for the
short-term floating rate certificates issued by the trust as "Floating rate
obligations" on the Statement of Assets and Liabilities. In addition, the Fund
reflects in Investment Income the entire earnings of the underlying bond and
accounts for the related interest paid to the holders of the short-term floating
rate certificates as "Floating rate obligations interest expense and fees" in
the Statement of Operations.
During the six months ended December 31, 2006, Pennsylvania Investment Quality
(NQP), Pennsylvania Premium Income 2 (NPY), Pennsylvania Dividend Advantage
(NXM) and Pennsylvania Dividend Advantage 2 (NVY) invested in externally
deposited inverse floaters and/or self-deposited inverse floaters. New Jersey
Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend
Advantage (NXJ) and New Jersey Dividend Advantage 2 (NUJ) did not invest in any
such instruments during the six months ended December 31, 2006.
The average floating rate obligations outstanding and average annual interest
rate related to self-deposited inverse floaters during the six months ended
December 31, 2006, were as follows:
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Average floating rate obligations $13,060,707 $4,250,489 $375,897 $420,543
Average annual interest rate 3.84% 3.86% 3.87% 3.87%
===============================================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
Bank Borrowings
The Funds have an unsecured bank line of credit under which outstanding balances
bear interest at a variable rate. As of December 31, 2006, the Funds were paying
an annualized interest rate of 5.76% on their respective outstanding borrowings.
No compensating balances are required.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
81
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
2. FUND SHARES
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
------------------------ ------------------------ --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 39,742 -- 10,167 5,995 7,907
========================================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
-------------------------- ------------------------ --------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 2,668 6,973 -- -- -- 9,155
========================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ --------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
12/31/06 6/30/06 12/31/06 6/30/06
------------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 5,661 12,400 -- --
========================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended December 31, 2006, were
as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Purchases $ 9,769,611 $4,694,805 $5,035,123 $3,794,268
Sales and maturities 11,045,146 5,495,328 5,065,822 3,166,116
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Purchases $66,663,057 $44,003,151 $4,962,069 $4,763,828
Sales and maturities 36,867,069 21,990,736 2,822,427 2,782,344
===============================================================================================================
82
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No.140. To the
extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their Federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At December 31, 2006, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Cost of investments $446,853,591 $260,565,303 $139,968,463 $97,876,247
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Cost of investments $357,232,498 $331,328,096 $72,321,325 $81,302,984
===============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 2006, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $18,759,101 $12,258,591 $6,708,641 $5,464,264
Depreciation (223,333) (81,559) (68,456) (51,938)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $18,535,768 $12,177,032 $6,640,185 $5,412,326
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $19,785,531 $17,684,488 $4,301,786 $4,771,449
Depreciation (46,578) (193,911) (62,199) (55,661)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation)
of investments $19,738,953 $17,490,577 $4,239,587 $4,715,788
===============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at June 30, 2006, the Funds' last tax year end,
were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $872,824 $1,111,531 $530,422 $323,035
Undistributed net ordinary income ** -- 3,495 -- 127
Undistributed net long-term capital gains 600,674 150,621 42,218 18,098
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $250,835 $638,543 $272,260 $142,807
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- 1,345 -- 39,039
===============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2006, paid on July 3, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
83
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax character of distributions paid during the Funds' last tax year ended
June 30, 2006, was designated for purposes of the dividends paid deduction as
follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,266,148 $11,621,963 $6,701,392 $4,803,247
Distributions from net ordinary income ** -- 9,989 -- 124
Distributions from net long-term capital gains 5,517,595 4,174,209 760,117 482,233
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,205,803 $15,141,147 $3,570,220 $3,664,279
Distributions from net ordinary income ** 8,580 41,520 -- --
Distributions from net long-term capital gains 1,984,315 3,816,421 357,090 410,598
===============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At June 30, 2006, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
PENNSYLVANIA PENNSYLVANIA
INVESTMENT DIVIDEND
QUALITY ADVANTAGE
(NQP) (NXM)
--------------------------------------------------------------------------------
Expiration year
2014 $124,650 $15,555
--------------------------------------------------------------------------------
Total $124,650 $15,555
================================================================================
The following Funds elected to defer net realized losses from investments
incurred from November 1, 2005 through June 30, 2006 ("post-October losses") in
accordance with Federal income tax regulations. Post-October losses are treated
as having arisen on the first day of the current fiscal year:
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
DIVIDEND DIVIDEND INVESTMENT PREMIUM DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NXJ) (NUJ) (NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------
$167,478 $22,828 $696,819 $143,520 $72,480 $43,833
==================================================================================================================
84
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA INVESTMENT QUALITY (NQP)
(INCLUDING NET ASSETS PENNSYLVANIA PREMIUM INCOME 2 (NPY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
(INCLUDING NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of December 31, 2006, the complex-level fee rate was .1845%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level fee
rate for such complex-wide Managed Assets shall be .1400% until such time as
a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
85
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
As a result of certain trading errors that occurred during the fiscal year ended
June 30, 2006, Pennsylvania Premium Income 2 (NPY) was reimbursed $27,169 by the
Adviser to offset losses on the disposal of investments in violation of
investment restrictions.
6. NEW ACCOUNTING PRONOUNCEMENTS
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
on June 29, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
86
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of December 31, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENT
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on February 1, 2007, to shareholders of record
on January 15, 2007, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Dividend per share $.0545 $.0575 $.0645 $.0660
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Dividend per share $.0535 $.0555 $.0665 $.0610
===============================================================================================================
87
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $14.53 $ .45 $ .52 $(.12) $(.01) $ .84 $(.33) $(.03) $ (.36)
2006 15.61 .91 (.75) (.18) (.03) (.05) (.79) (.24) (1.03)
2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
NEW JERSEY
PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 14.79 .44 .55 (.12) -- .87 (.35) (.01) (.36)
2006 16.05 .90 (.85) (.17) (.04) (.16) (.79) (.31) (1.10)
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
====================================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
========================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
----------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $ -- $15.01 $14.08 5.47% 5.86%
2006 -- 14.53 13.70 (3.62) (.31)
2005 -- 15.61 15.25 15.13 13.81
2004 -- 14.69 14.19 (4.09) 1.26
2003 -- 15.65 15.94 11.68 10.72
2002 -- 15.07 15.22 4.19 6.56
NEW JERSEY
PREMIUM
INCOME (NNJ)
----------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) -- 15.30 14.59 5.58 5.92
2006 -- 14.79 14.16 (3.36) (1.04)
2005 -- 16.05 15.76 19.43 12.31
2004 -- 15.35 14.19 (5.65) .85
2003 -- 16.28 16.10 10.18 10.48
2002 -- 15.60 15.50 7.88 7.91
========================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------------------- ----------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $307,378 1.20%* 1.20%* 5.98%* 1.19%* 1.19%* 5.99%* 2%
2006 297,539 1.21 1.21 6.05 1.19 1.19 6.08 17
2005 319,083 1.21 1.21 6.22 1.20 1.20 6.23 15
2004 299,671 1.21 1.21 6.64 1.21 1.21 6.64 19
2003 316,970 1.22 1.22 6.80 1.22 1.22 6.81 12
2002 304,808 1.25 1.25 7.35 1.23 1.23 7.36 22
NEW JERSEY
PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 184,364 1.20* 1.20* 5.78* 1.19* 1.19* 5.78* 2
2006 178,199 1.19 1.19 5.81 1.18 1.18 5.83 12
2005 193,182 1.18 1.18 5.91 1.17 1.17 5.92 21
2004 184,753 1.18 1.18 6.23 1.18 1.18 6.23 23
2003 195,568 1.20 1.20 6.48 1.20 1.20 6.48 13
2002 187,393 1.22 1.22 6.85 1.22 1.22 6.86 14
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
NEW JERSEY INVESTMENT QUALITY (NQJ)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $162,000 $25,000 $72,435 $ -- $ --
2006 162,000 25,000 70,917 -- --
2005 162,000 25,000 74,241 -- --
2004 162,000 25,000 71,246 -- --
2003 162,000 25,000 73,915 -- --
2002 162,000 25,000 72,038 -- --
NEW JERSEY PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 91,600 25,000 75,318 -- --
2006 91,600 25,000 73,635 -- --
2005 91,600 25,000 77,724 -- --
2004 91,600 25,000 75,424 -- --
2003 91,600 25,000 78,376 -- --
2002 91,600 25,000 76,144 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended December 31, 2006.
See accompanying notes to financial statements.
88-89 spread
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $14.68 $ .47 $ .54 $(.11) $ -- $ .90 $ (.39) $ (.01) $ (.40)
2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94)
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 14.87 .50 .53 (.13) -- .90 (.40) -- (.40)
2006 15.79 .99 (.76) (.19) (.01) .03 (.86) (.09) (.95)
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(c) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
====================================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
======================================================================================
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $ -- $15.18 $15.85 13.27% 6.11%
2006 -- 14.68 14.35 (.78) (.05)
2005 -- 15.63 15.38 19.97 13.80
2004 -- 14.59 13.63 (5.13) 1.20
2003 .01 15.35 15.30 15.09 13.18
2002 -- 14.38 14.12 (.17) 6.05
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) -- 15.37 16.10 10.79 6.08
2006 -- 14.87 14.90 (.49) .25
2005 -- 15.79 15.90 23.39 15.00
2004 -- 14.62 13.74 (4.81) 1.02
2003 -- 15.44 15.40 9.14 13.74
2002(c) (.14) 14.46 15.04 1.29 1.98
======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW JERSEY
DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $ 99,709 1.20%* 1.20%* 5.82%* .82%* .82%* 6.20%* 3%
2006 96,378 1.19 1.19 5.83 .75 .75 6.28 16
2005 102,502 1.19 1.19 5.94 .74 .74 6.39 17
2004 95,651 1.20 1.20 6.26 .74 .74 6.71 11
2003 100,502 1.19 1.19 6.56 .74 .74 7.01 8
2002 94,130 1.24 1.24 6.76 .75 .75 7.25 7
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 69,458 1.23* 1.23* 5.99* .76* .76* 6.46* 3
2006 67,150 1.23 1.23 5.99 .76 .76 6.47 13
2005 71,231 1.23 1.23 6.09 .77 .77 6.54 11
2004 65,919 1.25 1.25 6.41 .79 .79 6.87 11
2003 69,616 1.23 1.23 6.53 .76 .76 7.00 12
2002(c) 65,153 1.07* 1.07* 3.86* .67* .67* 4.25* --
====================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $48,000 $25,000 $76,932 $ -- $ --
2006 48,000 25,000 75,197 -- --
2005 48,000 25,000 78,386 -- --
2004 48,000 25,000 74,818 -- --
2003 48,000 25,000 77,345 -- --
2002 48,000 25,000 74,026 -- --
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 34,500 25,000 75,332 -- --
2006 34,500 25,000 73,659 -- --
2005 34,500 25,000 76,617 -- --
2004 34,500 25,000 72,767 -- --
2003 34,500 25,000 75,446 -- --
2002(c) 34,500 25,000 72,213 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended December 31, 2006.
(c) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
90-91 spread
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $14.71 $ .46 $ .58 $(.14) $ -- $ .90 $(.31) $ -- $ (.31)
2006 15.73 .90 (.87) (.21) (.02) (.20) (.71) (.11) (.82)
2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
PENNSYLVANIA
PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 14.22 .44 .56 (.13) -- .87 (.33) -- (.33)
2006 15.32 .89 (.80) (.18) (.03) (.12) (.77) (.21) (.98)
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
====================================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=======================================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $ -- $15.30 $13.58 7.31% 6.16%
2006 -- 14.71 12.95 (9.47) (1.34)
2005 -- 15.73 15.16 19.53 12.67
2004 -- 14.92 13.58 (9.73) (.38)
2003 -- 15.91 16.01 11.98 14.79
2002 -- 14.70 15.18 6.57 7.34
PENNSYLVANIA
PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) -- 14.76 13.54 7.08 6.17
2006 -- 14.22 12.96 (8.42) (.80)****
2005 -- 15.32 15.16 17.79 11.80
2004 -- 14.74 13.84 (7.22) .94
2003 -- 15.65 16.00 15.09 12.09
2002 -- 14.83 14.79 13.25 8.88
=======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- -------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
PENNSYLVANIA
INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $249,342 1.46%* 1.26%* 5.96%* 1.44%* 1.24%* 5.98%* 9%
2006 239,718 1.23 1.23 5.87 1.21 1.21 5.89 20
2005 256,365 1.23 1.23 5.96 1.22 1.22 5.97 18
2004 243,287 1.23 1.23 6.38 1.22 1.22 6.39 17
2003 258,924 1.27 1.27 6.59 1.26 1.26 6.60 11
2002 238,926 1.31 1.31 7.42 1.30 1.30 7.44 34
PENNSYLVANIA
PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 233,657 1.28* 1.21* 5.99* 1.27* 1.20* 6.00* 6
2006 225,121 1.20 1.20 6.01 1.18 1.18 6.03 18
2005 242,373 1.19 1.19 6.09 1.19 1.19 6.10 22
2004 232,455 1.18 1.18 6.45 1.17 1.17 6.46 16
2003 246,604 1.20 1.20 6.76 1.19 1.19 6.77 19
2002 233,536 1.24 1.24 7.28 1.23 1.23 7.29 7
====================================================================================================================================
================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $132,000 $25,000 $72,224 $29,610 $13,879
2006 132,000 25,000 70,401 -- --
2005 132,000 25,000 73,554 -- --
2004 132,000 25,000 71,077 -- --
2003 132,000 25,000 74,039 -- --
2002 132,000 25,000 70,251 -- --
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 118,100 25,000 74,462 22,185 16,856
2006 118,100 25,000 72,655 -- --
2005 118,100 25,000 76,307 -- --
2004 118,100 25,000 74,207 -- --
2003 118,100 25,000 77,202 -- --
2002 118,100 25,000 74,436 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Funds' Total Return on Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended December 31, 2006.
See accompanying notes to financial statements.
92-93 spread
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $14.95 $ .49 $ .53 $(.12) $ -- $ .90 $(.40) $ -- $ (.40)
2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98)
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 14.93 .50 .52 (.13) (.01) .88 (.38) (.02) (.40)
2006 15.89 .98 (.85) (.19) (.01) (.07) (.79) (.10) (.89)
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(c) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
====================================================================================================================================
Total Returns
----------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=================================================================================
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $ -- $15.45 $15.89 7.92% 6.04%
2006 -- 14.95 15.10 (.56) (.01)
2005 -- 15.93 16.14 21.84 13.02
2004 -- 15.32 14.39 (5.95) 1.30
2003 .02 16.25 16.46 18.13 15.95
2002 -- 14.96 14.89 9.10 9.67
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) -- 15.41 15.44 11.95 5.94
2006 -- 14.93 14.16 .88 (.46)
2005 -- 15.89 14.90 17.63 13.37
2004 -- 14.87 13.48 (8.58) .29
2003 -- 15.90 15.84 14.38 15.48
2002(c) (.14) 14.64 14.74 (.73) 3.24
=================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
-------------------------------------------- --------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
PENNSYLVANIA
DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $51,383 1.29%* 1.26%* 5.94%* .90%* .87%* 6.32%* 4%
2006 49,660 1.25 1.25 5.90 .80 .80 6.35 12
2005 52,712 1.23 1.23 5.82 .78 .78 6.28 13
2004 50,549 1.21 1.21 6.15 .76 .76 6.60 10
2003 53,591 1.23 1.23 6.44 .79 .79 6.88 13
2002 49,306 1.29 1.29 7.12 .82 .82 7.59 48
PENNSYLVANIA
DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 57,407 1.29* 1.26* 5.97* .84* .81* 6.43* 3
2006 55,597 1.24 1.24 5.93 .77 .77 6.40 13
2005 59,174 1.23 1.23 5.80 .78 .78 6.25 8
2004 55,370 1.24 1.24 5.95 .78 .78 6.40 4
2003 59,202 1.25 1.25 6.07 .78 .78 6.53 13
2002(c) 54,481 1.09* 1.09* 3.77* .70* .70* 4.15* 8
====================================================================================================================================
================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- --------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) $25,000 $25,000 $76,383 $1,305 $59,531
2006 25,000 25,000 74,660 -- --
2005 25,000 25,000 77,712 -- --
2004 25,000 25,000 75,549 -- --
2003 25,000 25,000 78,591 -- --
2002 25,000 25,000 74,306 -- --
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------
Year Ended 6/30:
2007(b) 28,500 25,000 75,357 1,460 59,841
2006 28,500 25,000 73,769 -- --
2005 28,500 25,000 76,907 -- --
2004 28,500 25,000 73,570 -- --
2003 28,500 25,000 76,932 -- --
2002(c) 28,500 25,000 72,790 -- --
================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended December 31, 2006.
(c) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
94-95 spread
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
96
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on April 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
97
Notes
98
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
99
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing approximately $162 billion in assets, as of December 31, 2006, Nuveen
Investments offers access to a number of different asset classes and investing
solutions through a variety of products. Nuveen Investments markets its
capabilities under four distinct brands: Nuveen, a leader in fixed-income
investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in
growth-style equities; and Symphony, a leading institutional manager of
market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
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Learn more o Fund details
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WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-1206D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Pennsylvania Investment Quality Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: March 9, 2007
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: March 9, 2007
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By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: March 9, 2007
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* Print the name and title of each signing officer under his or her signature.