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 811-09455
---------------------
Nuveen New Jersey Dividend Advantage 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, 2004
------------------
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, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
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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KEEP.(R)
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Timothy R. Schwertfeger
Chairman of the Board
Photo: Timothy R. Schwertfeger
Chairman's
LETTER TO SHAREHOLDERS
I am pleased to report that over the six-month period covered by this semiannual
report your Fund continued to provide you with monthly tax-free income and an
attractive total return. For more details about the management strategy and
performance of your Fund, please see the Portfolio Manager's Perspective and
Performance Overview sections of this report.
As I noted in my last letter to you, our conversations with financial advisors
and investors suggest that many of you may be wondering whether long-term
interest rates will soon begin to rise substantially, how high they might go,
and whether that makes this a good time to adjust your holdings of fixed-income
investments. We can't answer that question for you - no one knows what the
future will bring.
"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."
From our experience, what we do know is that a well-balanced portfolio,
structured and carefully monitored with the help of a trusted investment
professional, can be an important component in achieving your long-term
financial goals. In fact, a well-diversified portfolio may actually help to
reduce your overall investment risk. That is one reason why we believe that a
municipal bond investment like your Nuveen Fund can be an important building
block in a comprehensive investment program designed to perform well in a
variety of market conditions.
As in past reports, I'd also like to direct your attention to the inside front
cover, which explains the quick and easy process to begin receiving these Fund
reports via e-mail and the internet. Thousands of Nuveen Fund shareholders
already have signed-up, and they are getting their Fund information faster and
more conveniently than ever. I urge you to consider joining them.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 15, 2005
Nuveen New Jersey and Pennsylvania Municipal Closed-End
Exchange-Traded Funds (NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
PERSPECTIVE
Portfolio manager Paul Brennan discusses key investment strategies and the
semiannual performance of these Nuveen New Jersey and Pennsylvania Funds. With
14 years of investment experience, including 9 at Nuveen, Paul assumed portfolio
management responsibility for these Funds in 2003.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING THE SIX MONTHS ENDED
DECEMBER 31, 2004?
Between June and December 2004, the Federal Reserve announced five quarter-point
increases in the fed funds rate, raising this short-term interest rate benchmark
to 2.25% from 1%. (On February 2, 2005, after the close of this reporting
period, the Federal Reserve raised the fed funds rate by another 0.25% to
2.50%.) At the same time, long-term municipal interest rates trended lower. In
this flattening yield curve environment, our focus centered on finding bonds
that we believed had the potential to add value to the Funds' portfolios and
perform well under a variety of market scenarios.
In general, we sought to purchase attractive bonds in parts of the yield curve
that we believed would reduce the Funds' overall interest rate risk (the risk
that the value of a Fund's portfolio will decline if market interest rates rise,
since bond prices move in the opposite direction of interest rates). To
accomplish this, we focused our purchase activity, depending on the Fund, on
finding higher quality securities that mature in 5 to 20 years. In many cases,
these bonds offered what we thought were attractive yields with less inherent
interest rate risk than longer-term bonds. NNJ, however, had a shorter duration1
than the other three New Jersey Funds throughout this period. For this Fund, we
looked for opportunities with longer maturities in an effort to extend this
Fund's duration.
While the majority of our purchases during this period focused on higher-quality
credits, we continued to diversify the Funds' holdings with the addition of
selected lower-rated issues, with special emphasis on the hospital sector. In
the New Jersey Funds, our purchases included BBB rated bonds issued by Camden
County Improvement Authority for Cooper Health Systems. These bonds offered what
we thought were attractive yields while enabling us to strategically increase
the Funds' healthcare exposure. We also added state-issued cigarette tax bonds,
which were rated BBB and backed by excise taxes on cigarettes purchased in New
Jersey. These additions to our portfolios account for the slight increase in
NQJ's and NNJ's allocations of BBB credits over the past six
1 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
4
months. The exception to this was NUJ, where we actively took advantage of
opportunities to trim the Fund's overweighting in the BBB category and reinvest
the proceeds in higher quality bonds.
In the Pennsylvania Funds, we also continued to work on increasing
diversification, adding A rated bonds issued for St. Mary's Hospital Authority
to all four Funds. In NXM and NVY, we also purchased bonds issued by the
Pennsylvania Economic Development Financing Authority (EDFA) for Reliant Energy,
a B1/B+ issue that performed very well after our purchase. Other purchases
included nonrated bonds issued by Allegheny County for the development of
Pittsburgh Mills shopping mall, which we found attractive based on the
developer's successful track record with previous projects. To finance these
additions, we sold some of our longer-term holdings, particularly in NQP and NVY
where durations were longer.
One of our longer-term goals is to position each of these Funds so that they
provide return variability and interest rate risk exposure roughly comparable to
the variability and risk of the markets in which they invest. As one strategy to
reach this goal, we attempted to manage some of its inherent interest rate risk
in NXJ, NUJ, NXM, and NVY by utilizing interest rate swaps to hedge some of this
risk. Our only objective with these hedges was to reduce the durations of these
Funds without having a negative impact on their income stream or dividend-paying
capability over the short-term. The costs of the hedges are reflected as an
addition or subtraction from the Funds' net asset value as the value of the
hedges fluctuate. While these hedge positions did reduce the Fund's exposure to
interest rate risk, they did have negative impacts on the Funds' performance for
the period ended December 31, 2004, because long-term interest rates fell and
bond prices rose during the period in which the hedges were in place. However,
this loss in value was at least partly offset by the fact that the municipal
bonds in the Funds' portfolios, because they had longer-than-target durations,
increased in value by more as a result of these interest rate decreases than
they would have if they had had durations closer to the target.
5
HOW DID THE FUNDS PERFORM?
Individual results for the Funds, as well as for comparative indexes, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 12/31/04
6-MONTH 1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
New Jersey Funds
--------------------------------------------------------------------------------
NQJ 8.18% 6.16% 8.37% 7.52%
NNJ 7.33% 5.07% 9.04% 8.44%
NXJ 8.10% 6.50% NA NA
NUJ 9.06% 7.43% NA NA
--------------------------------------------------------------------------------
Lipper New Jersey
Municipal Debt Funds
Average2 8.76% 6.68% 9.76% 7.96%
--------------------------------------------------------------------------------
Pennsylvania Funds
--------------------------------------------------------------------------------
NQP 7.97% 5.89% 8.34% 7.19%
NPY 7.60% 5.34% 9.68% 8.98%
NXM 8.19% 6.54% NA NA
NVY 8.68% 6.94% NA NA
--------------------------------------------------------------------------------
Lipper Pennsylvania
Municipal Debt Funds
Average2 7.75% 5.76% 9.47% 8.23%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index3 5.19% 4.48% 7.20% 7.06%
--------------------------------------------------------------------------------
*Six-month returns are cumulative; returns for one year, five years, and ten
years are annualized.
Past performance does not guarantee future results. Returns do not reflect the
deduction of taxes that a shareholder may have to pay on Fund distributions or
upon the sale of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the six months ended December 31, 2004, the cumulative returns on NAV for
all eight of the New Jersey and Pennsylvania Funds exceeded the return on the
Lehman Brothers Municipal Bond Index. NUJ, NQP, NXM and NVY also outperformed
the average return for their Lipper peer groups for this period, while the other
Funds trailed their Lipper group average return.
One of the primary factors benefiting the six-month performances of these Funds
relative to that of the unmanaged Lehman Brothers index was the Funds' use of
financial leverage. While leveraging can add volatility to a Fund's NAV and
share price, especially during periods of rising interest rates, this strategy
can also provide opportunities for additional income and total returns for
common shareholders when short-term interest
2 The Lipper New Jersey Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 6 months, 13 funds; 1 year, 13 funds; 5 years,
8 funds; and 10 years, 6 funds. The Lipper Pennsylvania Municipal Debt
Funds category average is calculated using the returns of all closed-end
exchange-traded funds in this category as follows: 6 months, 12 funds; 1
year, 12 funds; 5 years, 9 funds; and 10 years, 7 funds. Fund and Lipper
returns assume reinvestment of dividends.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
6
rates remain relatively low and long-term rates fall or remain relatively
constant, as they did during this reporting period.
As noted earlier, one of our key strategies during this six-month period
involved working to enhance the Funds' duration positioning. As a result, the
majority of these Funds were well positioned for the rate environment of this
period, and this played a role in their relative outperformance. However, NNJ
and NPY had relatively large exposures to short duration securities with short
calls. During this reporting period, in which yields on longer bonds dropped
even as short-term rates rose, these overweightings detracted from the
performance of these two Funds.
All of these Funds benefited from their holdings of lower quality bonds, which
generally outperformed higher quality sectors as the economy improved. Among the
lower-rated bonds making positive contributions to the Funds' cumulative returns
during this period were those issued by the healthcare sector, especially
hospital bonds, which ranked second in terms of performance among the Lehman
municipal revenue sectors for this six-month period.
All of the New Jersey Funds' returns were also boosted by the strong
double-digit performance of their holdings of BBB rated bonds backed by the 1998
master tobacco settlement agreement. These bonds produced exceptionally strong
results during this period, as the litigation environment seemed to improve and
a relative lack of supply faced continued strong demand. Over this period, NQJ
and NUJ maintained exposures of approximately 4% to tobacco bonds, while NNJ and
NXJ continued to allocate 3% to this sector.
As the airline sector began to show some signs of recovery, NXJ and NUJ also had
positive contributions from their holdings of bonds issued for Continental
Airlines, while NQJ benefited from its position in American Airlines bonds.
The Pennsylvania Funds also saw strong performance from their holdings of higher
education bonds, another sector that posted good returns during this six-month
period. NVY's performance also was helped by the pre-refunding of some of its
state-issued general obligation holdings. This resulted in improved credit
quality and price appreciation, which in turn added to NVY's return for the
period.
7
One area of the New Jersey and Pennsylvania markets that did not perform well
was the housing sector, both multifamily and single family, which ranked at the
bottom of the Lehman revenue sectors for this period. This sector's
underperformance stemmed largely from the increase in mortgage prepayments as
interest rates remained low, which resulted in a rise in bond calls. In general,
all of these Funds had only modest allocations to the housing sector, which
limited the negative impact.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
As short-term interest rates remained relatively low throughout this reporting
period, the leveraged structures of these Funds continued to help support their
dividend-paying capabilities. The extent of this benefit is tied in part to the
short-term rates these Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to their MuniPreferred shareholders, which can leave more earnings to support
common share dividends. This strategy helped to maintain the dividends of NQJ,
NNJ, NXJ, NUJ, NQP, NPY and NXM throughout the reporting period. However, the
modest rise in short-term interest rates during this period increased borrowing
costs enough to offset some of the leverage advantage in NVY, which was
initially invested during the low rate environment of 2002 and has not had the
opportunity to build reserves. As a result, NVY's dividend was cut in December
2004.
In addition, due to capital gains generated by duration management and other
portfolio management strategies, common shareholders of several of the Funds
received substantial capital gains and net ordinary income distributions at the
end of December 2004. These included shareholders of NQJ ($0.1097 per share),
NNJ ($0.2179 per share), NUJ ($0.0526 per share), NQP ($0.1422 per share), NPY
($0.1846 per share), NXM ($0.3691 per share), and NVY ($0.0429 per share). NXM's
distribution was augmented by a sizable gain that resulted from our reducing the
Fund's position in bonds issued by Pennsylvania EDFA for National Gypsum
Company, which we had originally purchased at about 50 cents on the dollar. As
the price on these bonds recovered to par with the resolution of asbestos
litigation, we decided to realize some of the gains by trimming our holdings,
thus generating a large capital gain for NXM.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay
8
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 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, 2004, all of the Funds in this report with the
exception of NVY had positive UNII balances for both financial statement and tax
purposes. NVY had a negative UNII balances for both financial statement and tax
purposes.
As of December 31, 2004, the Funds were trading at premiums or discounts to
their net asset values as shown in the accompanying chart.
FUND 12/31 PREM/DISC PERIOD AVG. PREM/DISC
--------------------------------------------------------------------------------
NQJ -0.20% -0.04%
NNJ 0.25% -3.36%
NXJ -0.85% -2.08%
NUJ -2.85% -2.63%
NQP -1.10% -4.42%
NPY 2.44% -1.62%
NXM 2.74% -2.83%
NVY -5.62% -5.17%
--------------------------------------------------------------------------------
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
DECEMBER 31, 2004?
We continued to believe that, given the current geopolitical and economic
climate, maintaining strong credit quality was an important requirement. As of
December 31, 2004, these eight Funds continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA among the
New Jersey Funds ranging from 67% in NUJ and 76% in NXJ to 80% in NQJ and 83% in
NNJ. Among the Pennsylvania Funds, these allocations ranged from 74% in NXM to
84% in NPY, 85% in NVY, and 87% in NQP.
As of December 31, 2004, potential call exposure for the New Jersey Funds ranged
from 3% in NXJ and 4% in NUJ to 7% in NNJ and 9% in NQJ during 2005 and 2006.
Over this same period, the Pennsylvania Funds faced potential calls ranging from
2% in NVY and 3% in NXM to 8% in NQP and 10% in NPY. The number of actual bond
calls in all of these Funds depends largely on future market interest rates.
9
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 5%
A 6%
BBB 11%
NR 1%
BB or Lower 2%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.08
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Jul 0.08
Aug 0.08
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.95
15.92
15.94
16
16.04
16.08
16.13
16.13
16.19
16.25
16.24
16.21
16.34
16.32
16.27
16.27
16.32
16.3
16.3
16.34
16.34
16.42
16.3
16.35
16.36
16.43
16.29
16.3
16.26
16.3
16.27
16.29
16.3
16.34
16.27
16.2
16.22
16.2
16.38
16.35
16.35
16.45
16.5
16.44
16.29
16.41
16.47
16.47
16.49
16.43
16.57
16.46
16.6
16.64
16.59
16.53
16.57
16.55
16.54
16.56
16.52
16.45
16.5
16.72
16.78
16.6
16.4
16.1
16.04
16.2
15.93
15.65
15.14
15.02
15.09
15
15
15
14.85
14.79
14.7
14.6
14.73
14.86
14.73
14.75
14.72
14.7
14.56
14.16
13.59
13.72
13.66
13.51
13.66
13.84
13.82
13.66
13.75
13.71
13.75
13.9
14.03
14.07
14.1
14.1
14.2
14.29
14.21
14.2
14.22
14.26
14.17
14.22
13.84
13.93
13.99
14
13.99
14.05
14
14.02
14.02
14.04
14.09
14.11
14.19
14.31
14.45
14.62
14.64
14.65
14.74
14.98
14.84
14.85
14.8
14.91
15.04
15.04
14.91
14.92
14.98
14.76
14.71
14.73
14.68
14.75
14.75
14.74
14.77
14.9
14.9
14.96
15.12
15.03
14.92
14.84
14.87
14.97
15
15.01
15.06
15.15
15.07
15.08
15.25
15.24
15.42
15.32
15.45
15.49
15.38
15.4
15.39
15.38
15.37
15.43
15.44
15.4
15.43
15.55
15.56
15.6
15.73
15.81
15.8
15.85
15.84
15.8
15.55
15.5
15.41
15.4
15.36
15.46
15.39
15.38
15.6
15.47
15.41
15.45
15.4
15.33
15.32
15.38
15.47
15.41
15.41
15.47
15.45
15.47
15.46
15.46
15.46
15.48
15.48
15.43
15.27
15.15
15.27
15.08
15.24
15.39
15.32
15.33
15.27
15.3
15.38
15.3
15.26
15.29
15.28
15.18
15.21
15.2
15.2
15.36
15.35
15.18
15.35
15.24
15.26
15.16
15.03
15.13
15.15
15.26
15.26
15.08
15.09
15.05
15.03
15
15.03
15.17
12/31/04 15.26
FUND SNAPSHOT
------------------------------------
Share Price $15.26
------------------------------------
Common Share
Net Asset Value $15.29
------------------------------------
Premium/(Discount) to NAV -0.20%
------------------------------------
Market Yield 6.29%
------------------------------------
Taxable-Equivalent Yield1 9.32%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $312,451
------------------------------------
Average Effective
Maturity on Securities (Years) 17.94
------------------------------------
Leverage-Adjusted Duration 8.41
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 11.76% 8.18%
------------------------------------
1-Year 2.63% 6.16%
------------------------------------
5-Year 10.95% 8.37%
------------------------------------
10-Year 8.26% 7.52%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 20.8%
------------------------------------
Transportation 20.5%
------------------------------------
Education and Civic
Organizations 12.1%
------------------------------------
Healthcare 11.5%
------------------------------------
U.S. Guaranteed 6.9%
------------------------------------
Tax Obligation/General 6.8%
------------------------------------
Utilities 4.4%
------------------------------------
Water and Sewer 3.8%
------------------------------------
Other 13.2%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1097 per share.
10
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 79%
AA 4%
A 6%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.078
Feb 0.078
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Jul 0.078
Aug 0.078
Sep 0.078
Oct 0.078
Nov 0.078
Dec 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 16.22
16.21
16.06
16.06
16.1
16.2
16.29
16.12
16.14
16.27
16.46
16.5
16.53
16.54
16.54
16.55
16.54
16.6
16.4
16.5
16.5
16.78
16.58
16.61
16.65
16.7
16.62
16.58
16.46
16.67
16.51
16.56
16.5
16.77
16.58
16.6
16.47
16.45
16.5
16.61
16.61
16.58
16.6
16.6
16.57
16.61
16.56
16.57
16.62
16.57
16.72
16.65
16.78
16.87
16.94
17.03
16.95
16.92
17.1
16.96
16.77
16.66
16.5
16.65
16.5
16.5
16.4
16.15
15.75
15.8
15.46
15.31
15.22
14.97
15.1
15.04
15.06
15.38
15.35
15.02
14.85
14.87
15
14.85
14.8
15.03
14.89
14.87
14.35
14.14
13.8
13.95
13.87
13.73
14.25
14.4
14.3
14.17
14.02
14.07
13.95
14.19
14.4
14.38
14.35
14.35
14.34
14.27
14.25
14.22
14.19
14.18
14.2
14.2
14.06
14.13
14.06
14.02
14.13
14.17
14.16
14.08
14.14
14.06
14.09
14
14.19
14.31
14.43
14.71
14.7
14.72
14.85
14.92
14.87
14.77
14.8
14.85
14.91
14.86
14.71
14.63
14.84
15.02
15.01
14.95
14.98
15.05
15.05
15.18
14.99
15.02
15.08
15.2
15.17
15.22
14.97
14.97
15.09
15.12
15.2
15.42
15.41
15.36
15.54
15.57
15.39
15.33
15.39
15.55
15.59
15.7
15.65
15.7
15.6
15.55
15.51
15.68
15.55
15.62
15.41
15.57
15.69
15.64
15.52
15.73
15.75
15.68
15.66
15.83
15.7
15.55
15.59
15.54
15.53
15.47
15.51
15.52
15.6
15.65
15.64
15.61
15.77
15.74
15.71
15.94
15.94
15.86
15.9
16
15.85
15.87
15.9
15.9
15.84
15.77
15.69
15.7
15.52
15.27
15.32
15.15
15.23
15.34
15.41
15.32
15.31
15.33
15.2
15.21
15.18
15.26
15.23
15.17
15.12
15.08
15
15.22
15.29
15.44
15.33
15.25
15.44
15.13
15.21
15.2
15.15
15.14
15.25
15.09
15.04
15.09
15.08
15.11
15.32
15.6
12/31/04 15.82
FUND SNAPSHOT
------------------------------------
Share Price $15.82
------------------------------------
Common Share
Net Asset Value $15.78
------------------------------------
Premium/(Discount) to NAV 0.25%
------------------------------------
Market Yield 5.92%
------------------------------------
Taxable-Equivalent Yield1 8.77%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $190,004
------------------------------------
Average Effective
Maturity on Securities (Years) 15.21
------------------------------------
Leverage-Adjusted Duration 8.20
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 16.46% 7.33%
------------------------------------
1-Year 4.66% 5.07%
------------------------------------
5-Year 11.96% 9.04%
------------------------------------
10-Year 10.05% 8.44%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 25.2%
------------------------------------
Transportation 16.1%
------------------------------------
Education and Civic
Organizations 10.5%
------------------------------------
Water and Sewer 9.7%
------------------------------------
U.S. Guaranteed 9.4%
------------------------------------
Tax Obligation/General 9.3%
------------------------------------
Healthcare 8.7%
------------------------------------
Other 11.1%
------------------------------------
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 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.2179 per share.
11
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 2%
A 14%
BBB 9%
BB or Lower 3%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Jul 0.0785
Aug 0.0785
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.17
15.34
15.49
15.48
15.62
15.66
15.8
15.7
15.72
15.8
15.95
15.99
15.91
15.92
15.92
15.83
15.98
16
15.85
15.61
15.61
15.6
15.5
15.4
15.32
15.45
15.36
15.48
15.49
15.66
15.67
15.75
16
15.9
15.9
15.81
15.81
15.82
16.01
16.04
16.04
16.4
15.93
16.06
16.1
15.86
15.97
15.98
15.9
15.82
15.95
15.99
15.81
15.87
15.97
15.98
16.02
16.05
16.15
16.07
16.08
15.93
15.93
15.95
15.96
15.77
15.14
14.75
14.79
14.8
14.67
14.45
14.39
14.37
14.17
14.16
14.34
14.2
14.1
14.06
14.17
14.15
14.5
14.26
14.36
14.17
14.11
14.02
13.97
13.8
13.07
13.19
13.18
13.18
13.35
13.45
13.85
13.65
13.73
13.83
13.85
13.9
13.92
14
14
14
14.24
14.2
13.95
13.94
13.9
13.75
13.77
13.8
13.61
13.72
13.67
13.72
13.76
13.73
13.58
13.55
13.6
13.53
13.7
13.6
13.63
13.92
14.2
14.2
14.2
14.22
14.22
14.49
14.51
14.51
14.3
14.55
14.4
14.37
14.22
14.07
14.13
14.15
14.17
14.11
14.15
14.29
14.29
14.4
14.42
14.44
14.42
14.49
14.57
14.51
14.27
14.31
14.35
14.34
14.49
14.59
14.61
14.66
14.64
14.54
14.56
14.67
14.68
14.76
14.81
14.89
14.9
14.77
14.96
14.95
14.91
14.91
14.9
14.85
14.92
15.08
15.15
15.13
15.4
15.27
15.39
15.3
15.14
15.15
15.13
15.04
14.94
14.71
14.63
14.65
14.51
14.62
14.64
14.69
14.6
14.69
14.85
14.79
15
15.03
14.9
14.96
15
15.05
15.04
15.14
15.08
15.08
15.2
15.07
15.17
15.34
15.24
15.07
15.2
15.01
15.2
15.23
15.07
15.33
15.37
15.22
15.05
15.06
15.07
15.03
15.05
14.95
15.06
14.8
14.77
14.92
14.93
14.9
14.92
15.01
15.18
15.17
14.98
15.04
15.25
15.15
15.23
15.13
14.96
14.9
14.93
14.87
15.24
15.28
12/31/04 15.16
FUND SNAPSHOT
------------------------------------
Share Price $15.16
------------------------------------
Common Share
Net Asset Value $15.29
------------------------------------
Premium/(Discount) to NAV -0.85%
------------------------------------
Market Yield 6.21%
------------------------------------
Taxable-Equivalent Yield1 9.20%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $100,210
------------------------------------
Average Effective
Maturity on Securities (Years) 18.47
------------------------------------
Leverage-Adjusted Duration 8.24
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 14.76% 8.10%
------------------------------------
1-Year 6.13% 6.50%
------------------------------------
Since
Inception 6.37% 7.91%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 18.0%
------------------------------------
Healthcare 15.9%
------------------------------------
Transportation 15.8%
------------------------------------
Water and Sewer 14.7%
------------------------------------
Education and Civic
Organizations 12.8%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Other 10.6%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
12
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 64%
AA 2%
A 13%
BBB 17%
NR 1%
BB or Lower 3%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.25
15.4
15.31
15.39
15.67
15.42
15.39
15.53
15.51
15.54
15.57
15.65
15.66
15.62
15.62
15.65
15.85
15.67
15.5
15.6
15.6
15.6
15.51
15.25
15.26
15.45
15.39
15.36
15.53
15.3
15.31
15.43
15.52
15.52
15.85
15.9
15.67
15.9
15.7
15.8
15.8
16.05
16.08
16.01
16.09
16.15
16.1
16.02
16.1
16.02
15.96
15.92
16.12
16
16.06
16.11
16.1
16.1
16.25
16.05
16
15.76
15.67
15.88
16.09
16.03
15.96
15.48
15.45
15.48
15.24
14.61
14.5
14.1
14.33
14.05
14.09
14.08
14.08
13.93
13.97
14.3
14.29
13.89
14.08
14.17
13.87
13.93
13.96
13.55
13.11
13.15
13.05
13.15
13.5
13.53
13.33
13.25
13.3
13.19
13.22
13.35
13.6
13.8
13.9
13.9
13.7
13.95
14.09
14.05
14.05
14.1
14
14.05
14.09
13.96
13.7
13.75
13.65
13.81
13.73
13.95
14.09
13.91
13.88
13.67
13.74
13.9
13.96
14.05
14.46
14.5
14.5
14.49
14.3
14.26
14.1
14.17
14.33
14.37
14.35
14.28
14.28
14.45
14.45
14.27
14.4
14.43
14.43
14.5
14.41
14.35
14.42
14.4
14.43
14.39
14.45
14.4
14.3
14.34
14.28
14.42
14.46
14.53
14.53
14.65
14.5
14.55
14.51
14.71
14.75
15
14.81
14.76
14.87
14.87
14.87
14.88
14.88
14.76
14.75
14.76
15
15.07
15
14.93
14.81
14.9
15.12
15
15.18
15.05
14.98
15.11
15.15
15.1
14.98
15
14.91
14.9
14.92
14.92
14.83
14.95
15.08
14.98
15.05
15.2
15.25
15.1
15.17
15.2
15.24
15.24
15.02
15.01
15.18
15.09
15.08
14.96
15
15.11
15.17
15.33
15.3
15.3
15.5
15.4
15.14
15.02
15.22
15.22
15.22
15.24
15.13
14.95
14.92
14.96
15.16
15.05
15.1
14.96
15.05
15.06
14.94
15.03
15.05
14.99
14.96
15.01
14.9
14.92
15.15
14.95
14.95
15.02
12/31/04 14.98
FUND SNAPSHOT
------------------------------------
Share Price $14.98
------------------------------------
Common Share
Net Asset Value $15.42
------------------------------------
Premium/(Discount) to NAV -2.85%
------------------------------------
Market Yield 6.13%
------------------------------------
Taxable-Equivalent Yield1 9.08%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $69,524
------------------------------------
Average Effective
Maturity on Securities (Years) 18.65
------------------------------------
Leverage-Adjusted Duration 8.38
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 12.80% 9.06%
------------------------------------
1-Year 6.12% 7.43%
------------------------------------
Since
Inception 6.38% 9.26%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.3%
------------------------------------
Healthcare 16.0%
------------------------------------
Transportation 15.8%
------------------------------------
U.S. Guaranteed 11.4%
------------------------------------
Education and Civic
Organizations 11.3%
------------------------------------
Utilities 7.3%
------------------------------------
Long-Term Care 5.2%
------------------------------------
Financials 4.1%
------------------------------------
Other 11.6%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The fund also paid shareholders a capital gains distribution in December
2004 of $0.0526 per share.
13
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 15%
A 8%
BBB 4%
NR 1%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.47
15.52
15.49
15.61
15.7
15.89
15.7
15.7
15.82
15.9
15.87
15.7
15.71
15.83
15.79
15.73
15.73
15.82
15.66
15.54
15.54
15.54
15.52
15.54
15.61
15.61
15.6
15.59
15.65
15.63
15.68
15.68
15.64
15.68
15.57
15.57
15.45
15.51
15.56
15.58
15.58
15.55
15.54
15.6
15.6
16.03
15.88
15.83
15.81
15.87
15.98
15.94
15.97
15.89
15.88
15.93
15.94
15.95
15.99
15.98
15.99
15.9
15.89
15.91
15.85
15.77
15.56
15.1
15.09
15.08
14.98
14.65
14.5
14.39
14.46
14.41
14.32
14.28
14.32
14.26
14.09
14
13.99
13.75
13.92
14
13.99
13.97
13.83
13.47
13.25
13.3
13.2
13.12
13.1
13.09
13.26
13.3
13.35
13.54
13.49
13.58
13.65
13.76
13.81
13.81
13.69
13.68
13.74
13.65
13.67
13.62
13.61
13.66
13.57
13.61
13.61
13.61
13.55
13.58
13.61
13.63
13.61
13.63
13.59
13.52
13.58
13.6
13.7
13.69
13.8
13.86
13.85
13.93
13.88
13.83
13.96
14.02
14.02
13.87
13.84
13.83
13.85
13.84
13.82
13.74
13.93
14.1
14.1
14.1
14.14
14.17
14.17
14.32
14.25
14.24
14.21
14.18
14.34
14.47
14.45
14.46
14.42
14.5
14.5
14.53
14.59
14.62
14.62
14.68
14.81
14.88
14.9
14.89
14.81
14.73
14.81
14.98
14.98
15
14.98
15
15.04
15.07
14.81
14.8
14.82
14.82
14.84
14.95
14.84
14.8
14.91
14.95
15.14
15.3
15.2
15.36
15.18
15.36
15.29
15.3
15.2
15.19
15.19
15.19
15.26
15.26
15.44
15.3
15.34
15.43
15.39
15.39
15.4
15.4
15.4
15.46
15.08
14.99
14.91
14.99
15
15.03
15.03
15.1
15.18
15.14
15.08
15.16
15.2
15.05
15.1
15.03
15.1
15.01
14.87
15.03
15.04
15.06
15.19
15.1
15.16
14.91
14.93
14.92
14.95
14.95
15.09
15.22
15.27
15.3
15.25
15.24
15.39
15.25
12/31/04 15.33
FUND SNAPSHOT
------------------------------------
Share Price $15.33
------------------------------------
Common Share
Net Asset Value $15.50
------------------------------------
Premium/(Discount) to NAV -1.10%
------------------------------------
Market Yield 5.95%
------------------------------------
Taxable-Equivalent Yield1 8.50%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $252,661
------------------------------------
Average Effective
Maturity on Securities (Years) 17.07
------------------------------------
Leverage-Adjusted Duration 8.40
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 17.45% 7.97%
------------------------------------
1-Year 4.93% 5.89%
------------------------------------
5-Year 9.72% 8.34%
------------------------------------
10-Year 7.76% 7.19%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 24.3%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
Education and Civic
Organizations 14.5%
------------------------------------
Water and Sewer 11.7%
------------------------------------
U.S. Guaranteed 8.6%
------------------------------------
Utilities 6.2%
------------------------------------
Transportation 5.9%
------------------------------------
Healthcare 5.1%
------------------------------------
Other 7.8%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1422 per share.
14
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 79%
AA 5%
A 5%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.079
Feb 0.079
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.8
15.79
15.8
15.9
15.99
16.09
15.97
15.96
16.08
16.21
16.08
15.98
16.08
16.13
16.1
16.14
16.12
16.18
16.1
15.99
15.99
15.99
16.09
16
16.09
16.1
16.08
15.97
15.92
15.92
15.94
15.95
15.93
15.95
15.89
15.86
15.92
15.92
15.93
15.9
15.9
16.05
15.87
15.93
15.85
16.02
15.92
15.98
15.94
15.83
15.94
15.95
15.9
15.96
15.9
15.96
16
16.04
16.03
16.03
15.91
15.95
15.94
15.96
15.94
15.55
15.2
14.9
14.98
15.1
15
14.72
14.53
14.56
14.65
14.59
14.52
14.4
14.45
14.46
14.1
14.05
13.9
13.61
13.73
13.75
13.78
13.86
13.77
13.45
13.27
13.33
13.24
13.09
13.18
13.18
13.24
13.4
13.41
13.63
13.66
13.7
13.81
13.94
13.92
13.92
13.95
13.99
14
14.01
14
14
13.98
13.95
13.74
13.9
13.98
13.93
13.8
13.78
13.91
13.92
13.8
13.74
13.8
13.8
13.84
13.87
13.9
13.97
14.07
14.09
14.08
14.17
14.13
14.13
14.13
14.18
14.22
14.1
14
13.94
13.99
13.91
13.9
13.92
13.95
14.09
14.09
14.13
14.18
14.21
14.27
14.46
14.46
14.48
14.39
14.38
14.48
14.54
14.67
14.74
14.71
14.9
14.86
14.75
14.87
15.01
15.01
15.2
15.08
15.15
15.18
15.11
15.15
15.15
15.19
15.17
15.19
15.15
15.15
15.15
15.15
15.02
15.05
15.13
15.1
15.14
15.23
15.23
15.18
15.12
15.02
15.15
15.25
15.2
15.17
15.37
15.5
15.49
15.35
15.38
15.41
15.24
15.2
15.22
15.22
15.23
15.21
15.4
15.31
15.5
15.44
15.44
15.48
15.45
15.38
15.37
15.3
15.21
15.17
15.1
15.25
15.24
15.16
15.21
15.36
15.41
15.38
15.29
15.21
15.31
15.3
15.26
15.24
15.16
15.18
15.13
15.3
15.51
15.43
15.44
15.49
15.3
15.45
15.4
15.34
15.54
15.44
15.55
15.59
15.44
15.43
15.55
15.52
15.63
12/31/04 15.56
FUND SNAPSHOT
------------------------------------
Share Price $15.56
------------------------------------
Common Share
Net Asset Value $15.19
------------------------------------
Premium/(Discount) to NAV 2.44%
------------------------------------
Market Yield 6.09%
------------------------------------
Taxable-Equivalent Yield1 8.70%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $239,908
------------------------------------
Average Effective
Maturity on Securities (Years) 16.60
------------------------------------
Leverage-Adjusted Duration 7.85
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 17.38% 7.60%
------------------------------------
1-Year 5.80% 5.34%
------------------------------------
5-Year 12.49% 9.68%
------------------------------------
10-Year 10.58% 8.98%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 21.1%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Healthcare 11.8%
------------------------------------
Transportation 10.9%
------------------------------------
Utilities 10.1%
------------------------------------
Education and Civic
Organizations 9.3%
------------------------------------
Water and Sewer 8.3%
------------------------------------
Tax Obligation/Limited 5.6%
------------------------------------
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 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1846 per share.
15
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 15%
A 14%
BBB 7%
NR 4%
BB or Lower 1%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0805
Feb 0.0805
Mar 0.0805
Apr 0.0805
May 0.0805
Jun 0.0805
Jul 0.0805
Aug 0.0805
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 16.27
16.5
16.28
16.22
16.25
16.49
16.3
16.4
16.49
16.33
16.4
16.21
16.45
16.49
16.49
16.49
16.43
16.22
16.18
16.18
16.18
16.1
16.12
16.16
16.4
16.4
16.4
16.48
16.56
16.65
16.35
16.28
16.29
16.2
16.25
16.19
16.23
16.1
16.21
16.22
16.22
16.22
16.23
16.24
16.24
16.28
16.26
16.3
16.69
16.48
16.7
16.63
16.63
16.62
16.64
16.43
16.5
16.5
16.59
16.59
16.59
16.47
16.47
16.4
16.69
16.55
16
15.8
15.71
15.75
15.77
15.53
15.52
15.1
15.48
15.49
15.39
15.39
15.12
15.15
15
14.79
14.64
14.45
14.55
14.54
14.64
14.64
14.46
14.38
14.07
13.99
13.68
13.69
13.76
13.77
13.82
13.84
13.95
13.95
13.96
14.54
14.54
14.59
14.6
14.6
14.57
14.52
14.61
14.51
14.51
14.34
14.38
14.47
14.37
14.6
14.67
14.27
14.28
14.48
14.45
14.39
14.3
14.26
14.4
14.3
14.39
14.48
15
14.81
14.85
14.8
14.85
14.95
14.96
14.99
15
15.1
15.15
15
14.9
14.72
14.64
14.74
14.5
14.49
14.55
14.61
14.61
14.73
14.85
14.89
14.8
14.88
14.91
14.91
14.98
14.91
14.95
14.9
14.8
14.87
14.9
15
14.95
14.9
15
15.01
14.97
15.21
15.07
15.11
15.15
15.11
15.11
15.15
15.33
15.35
15.4
15.4
15.41
15.5
15.5
15.41
15.5
15.48
15.5
15.43
15.35
15.45
15.45
15.5
15.22
15.22
15.4
15.45
15.54
15.8
15.94
15.94
15.82
15.68
15.68
15.63
15.79
15.78
15.8
15.94
16.03
16.1
16.19
15.94
16.05
16.05
15.99
15.93
15.99
15.94
15.7
15.72
15.5
15.4
15.52
15.5
15.58
15.79
15.9
15.9
15.81
15.97
15.85
15.8
15.9
16.1
16.08
15.9
15.79
15.92
15.98
15.9
16.25
16.1
16.1
15.7
15.73
15.73
15.88
15.88
15.78
15.82
15.67
15.67
15.65
15.57
15.78
16.1
12/31/04 16.14
FUND SNAPSHOT
------------------------------------
Share Price $16.14
------------------------------------
Common Share
Net Asset Value $15.71
------------------------------------
Premium/(Discount) to NAV 2.74%
------------------------------------
Market Yield 5.99%
------------------------------------
Taxable-Equivalent Yield1 8.56%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $51,944
------------------------------------
Average Effective
Maturity on Securities (Years) 17.25
------------------------------------
Leverage-Adjusted Duration 7.44
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 18.31% 8.19%
------------------------------------
1-Year 7.97% 6.54%
------------------------------------
Since
Inception 9.33% 9.79%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 25.0%
------------------------------------
Education and Civic
Organizations 20.7%
------------------------------------
Healthcare 11.4%
------------------------------------
Utilities 8.7%
------------------------------------
Long-Term Care 8.1%
------------------------------------
Transportation 7.1%
------------------------------------
Tax Obligation/Limited 6.7%
------------------------------------
Other 12.3%
------------------------------------
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%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.3691 per share.
16
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of December 31, 2004
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 22%
A 4%
BBB 7%
NR 3%
BB or Lower 1%
Bar Chart:
2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0735
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/04 15.74
15.78
15.87
15.87
15.99
16
15.99
15.89
15.9
15.89
15.92
16.05
16.03
16.02
16.03
16
16.03
16.03
16.17
15.98
15.98
16.09
16.14
16.13
16.13
16.14
16.15
16.14
16.11
16.15
16.14
16.18
16.18
16.14
16.14
16.17
15.95
15.98
15.99
16.09
16.09
16
16.07
16.16
16.2
16.25
16.03
16.05
16.03
16.03
16.11
16.14
16.2
16.26
16.06
16.02
16.18
16.17
16.24
16.06
16.16
16.21
16.15
16.17
16.19
15.78
15.3
15.15
15.1
15.15
15.18
14.71
14.3
14.29
14.4
14.5
14.4
14.3
14.28
14.05
13.69
13.73
13.72
13.81
13.81
13.97
13.92
13.6
13.6
13.23
13.24
13.26
13.2
13.14
13.1
13.03
13.07
13.09
13.1
13.14
13.31
13.36
13.4
13.5
13.35
13.35
13.35
13.4
13.59
13.47
13.59
13.48
13.45
13.44
13.47
13.67
13.68
13.57
13.65
13.6
13.35
13.36
13.48
13.52
13.64
13.44
13.48
13.6
13.68
13.78
13.9
13.85
13.99
14.15
14.1
14.08
14.17
14.16
14.2
14.25
14.15
13.94
13.97
13.9
14.07
14
13.92
14.04
14.04
14.18
14.37
14.37
14.37
14.35
14.62
14.55
14.38
14.43
14.43
14.39
14.4
14.45
14.5
14.55
14.35
14.45
14.5
14.41
14.65
14.6
14.95
14.89
14.89
14.78
14.7
14.71
15.01
14.79
14.9
14.7
14.65
14.71
14.76
14.8
14.76
14.96
14.9
14.88
14.85
14.91
14.9
14.7
14.65
14.65
14.68
14.66
14.7
14.75
14.88
15
15
14.81
14.94
15.05
15
14.9
14.95
14.9
14.9
14.81
14.8
14.93
14.99
14.99
15.11
15.25
15.25
15.17
15.1
14.91
14.85
14.72
14.73
14.68
14.77
14.85
14.87
15.28
15.21
15.02
15.05
14.91
15
14.89
14.89
15.04
14.98
15.1
15.25
15.25
15.5
15.55
15.5
15.41
15.25
14.94
14.89
14.88
14.7
14.67
14.59
14.68
14.66
14.58
14.65
14.72
12/31/04 14.77
FUND SNAPSHOT
------------------------------------
Share Price $14.77
------------------------------------
Common Share
Net Asset Value $15.65
------------------------------------
Premium/(Discount) to NAV -5.62%
------------------------------------
Market Yield 5.97%
------------------------------------
Taxable-Equivalent Yield1 8.53%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $58,311
------------------------------------
Average Effective
Maturity on Securities (Years) 16.11
------------------------------------
Leverage-Adjusted Duration 8.43
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) 13.32% 8.68%
------------------------------------
1-Year 0.44% 6.94%
------------------------------------
Since
Inception 6.03% 9.92%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 25.2%
------------------------------------
Tax Obligation/General 15.5%
------------------------------------
Education and Civic
Organizations 14.8%
------------------------------------
U.S. Guaranteed 10.5%
------------------------------------
Healthcare 8.4%
------------------------------------
Utilities 7.8%
------------------------------------
Water and Sewer 6.2%
------------------------------------
Other 11.6%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0429 per share.
17
Shareholder
MEETING REPORT
The Shareholder Meeting was held in the Embassy Room of the Mandarin Oriental
Hotel, 222 Sansome Street, San Francisco, California on November 17, 2004.
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 18,392,556 -- 11,020,113 -- 6,345,129 --
Withhold 202,888 -- 90,611 -- 42,470 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,444 -- 11,110,724 -- 6,387,599 --
====================================================================================================================================
Lawrence H. Brown
For 18,384,286 -- 11,014,646 -- 6,343,029 --
Withhold 211,158 -- 96,078 -- 44,570 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,444 -- 11,110,724 -- 6,387,599 --
====================================================================================================================================
Jack B. Evans
For 18,399,807 -- 11,019,780 -- 6,344,594 --
Withhold 195,637 -- 90,944 -- 43,005 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,444 -- 11,110,724 -- 6,387,599 --
====================================================================================================================================
William C. Hunter
For 18,398,154 -- 11,019,780 -- 6,347,095 --
Withhold 197,290 -- 90,944 -- 40,504 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,444 -- 11,110,724 -- 6,387,599 --
====================================================================================================================================
William J. Schneider
For -- 6,249 -- 3,373 -- 1,873
Withhold -- 17 -- 185 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,266 -- 3,558 -- 1,875
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,249 -- 3,373 -- 1,873
Withhold -- 17 -- 185 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,266 -- 3,558 -- 1,875
====================================================================================================================================
Judith M. Stockdale
For 18,392,375 -- 11,019,780 -- 6,344,930 --
Withhold 203,069 -- 90,944 -- 42,669 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,595,444 -- 11,110,724 -- 6,387,599 --
====================================================================================================================================
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 4,344,301 -- 14,418,696 -- 14,382,551 --
Withhold 50,325 -- 197,099 -- 107,522 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,394,626 -- 14,615,795 -- 14,490,073 --
====================================================================================================================================
Lawrence H. Brown
For 4,347,801 -- 14,402,537 -- 14,364,091 --
Withhold 46,825 -- 213,258 -- 125,982 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,394,626 -- 14,615,795 -- 14,490,073 --
====================================================================================================================================
Jack B. Evans
For 4,344,801 -- 14,399,280 -- 14,382,684 --
Withhold 49,825 -- 216,515 -- 107,389 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,394,626 -- 14,615,795 -- 14,490,073 --
====================================================================================================================================
William C. Hunter
For 4,347,051 -- 14,404,116 -- 14,384,097 --
Withhold 47,575 -- 211,679 -- 105,976 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,394,626 -- 14,615,795 -- 14,490,073 --
====================================================================================================================================
William J. Schneider
For -- 1,338 -- 4,833 -- 4,575
Withhold -- 4 -- 6 -- 16
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,342 -- 4,839 -- 4,591
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,338 -- 4,834 -- 4,576
Withhold -- 4 -- 5 -- 15
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,342 -- 4,839 -- 4,591
====================================================================================================================================
Judith M. Stockdale
For 4,347,801 -- 14,379,138 -- 14,366,390 --
Withhold 46,825 -- 236,657 -- 123,683 --
------------------------------------------------------------------------------------------------------------------------------------
Total 4,394,626 -- 14,615,795 -- 14,490,073 --
====================================================================================================================================
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 3,195,379 -- 3,621,015 --
Withhold 28,173 -- 22,742 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,223,552 -- 3,643,757 --
====================================================================================================================================
Lawrence H. Brown
For 3,188,153 -- 3,613,955 --
Withhold 35,399 -- 29,802 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,223,552 -- 3,643,757 --
====================================================================================================================================
Jack B. Evans
For 3,195,579 -- 3,621,249 --
Withhold 27,973 -- 22,508 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,223,552 -- 3,643,757 --
====================================================================================================================================
William C. Hunter
For 3,195,579 -- 3,621,987 --
Withhold 27,973 -- 21,770 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,223,552 -- 3,643,757 --
====================================================================================================================================
William J. Schneider
For -- 991 -- 1,104
Withhold -- 1 -- 29
------------------------------------------------------------------------------------------------------------------------------------
Total -- 992 -- 1,133
====================================================================================================================================
Timothy R. Schwertfeger
For -- 991 -- 1,104
Withhold -- 1 -- 29
------------------------------------------------------------------------------------------------------------------------------------
Total -- 992 -- 1,133
====================================================================================================================================
Judith M. Stockdale
For 3,179,879 -- 3,621,387 --
Withhold 43,673 -- 22,370 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,223,552 -- 3,643,757 --
====================================================================================================================================
20
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.4% (3.6% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
$ 8,855 5.750%, 6/01/32 6/12 at 100.00 BBB $ 8,461,218
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 2,725,200
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 3,167,584
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,529,529
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.2% (12.1% OF TOTAL INVESTMENTS)
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,623,350
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,190 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 3,235,681
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17
(Alternative Minimum Tax) - 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+ 961,040
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,620,395
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,024,960
Ramapo College, Series 2001D, 5.000%, 7/01/31 - 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 1,093,660
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,118,358
1,050 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 1,109,441
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,055,380
New Jersey City University, Series 2002A, 5.000%, 7/01/32 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,014,040
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,648,050
Kean University, Series 2003D, 5.250%, 7/01/20 -
FGIC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,396,265
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,614,465
Montclair State University, Series 2004L, 5.125%, 7/01/22 -
MBIA Insured
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,637,563
Ramapo College, Series 2004H, 5.000%, 7/01/16 -
FGIC Insured
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 2,467,937
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,355,924
4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,615,445
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,023,806
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 663,125
Rider University, Series 2004A, 5.500%, 7/01/23
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 517,765
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued) 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 $ 1,103,760
1,195 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 1,283,299
1,875 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 1,980,225
4,075 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 4,095,864
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 (Alternative Minimum Tax) -
MBIA Insured
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,415,919
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, New Jersey, Certificates
of Participation, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,073,176
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,447,446
University of Medicine and Dentistry, New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,198,406
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,403,840
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 5,392,050
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.4% (11.5% OF TOTAL INVESTMENTS)
1,000 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 1,043,780
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,511,145
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 5,854,938
FHA-Insured Mortgage Revenue Bonds, Jersey City
Medical Center, Series 2001, 5.000%, 8/01/41 -
AMBAC Insured
3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,183,930
Revenue Bonds, Kennedy Health System, Series 2001,
5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,211,808
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
7,860 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 8,450,915
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
3,000 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 3,037,560
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
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 A 4,162,928
2,000 5.750%, 7/01/31 7/10 at 100.00 A 2,145,260
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,443,422
Revenue Refunding Bonds, St. Barnabas Healthcare System,
West Hudson Hospital Obligated Group, Series 1998A,
5.000%, 7/01/23 - MBIA Insured
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,413,867
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 BBB+ 2,259,260
Revenue Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 3,707,550
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
1,690 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,799,208
Revenue Bonds, St. Clares Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
3,885 Newark, New Jersey, GNMA Collateralized Health Care 6/12 at 102.00 Aaa 4,085,311
Facility Revenue Bonds, New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS)
$ 995 Long Branch Housing Finance Corporation New Jersey, 4/05 at 100.00 N/R $ 1,000,801
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%,
10/01/11
4,500 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 4,616,325
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
4,500 New Jersey Housing and Mortgage Finance Agency, 5/06 at 102.00 AAA 4,658,220
Multifamily Housing Revenue Bonds, Series 1996A,
6.250%, 5/01/28 (Alternative Minimum Tax) - AMBAC Insured
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,913,025
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
3,545 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 3,670,139
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
4,135 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 4,165,599
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 (Alternative Minimum Tax) - MBIA Insured
2,740 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,820,227
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,740 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,811,569
Securities Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2% (1.5% OF TOTAL INVESTMENTS)
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 1,042,470
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,547,430
2,925 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 3,071,192
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation, Series 2001A, 5.200%, 12/20/36
1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 1,170,934
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.750%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
6,250 Salem County Pollution Control Financing Authority, 5/05 at 100.00 AA- 6,331,250
New Jersey, Waste Disposal Revenue Bonds, E.I. DuPont de
Nemours and Company - Chambers Works Project,
Series 1991A, 6.500%, 11/15/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.3% (6.8% 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 1,783,402
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,697,638
1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,076,560
Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
1,735 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,851,106
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
3,000 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 3,374,280
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
1,420 Lenape Regional High School District, Burlington County, No Opt. Call Aaa 1,575,149
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 4,926,758
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,553,085
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA- 5,784,600
6.000%, 2/15/11
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 1,539,722
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,613,428
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,285 Tinton Falls Board of Education, Monmouth County, 10/14 at 100.00 Aaa $ 1,426,530
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 10/15/15 - FSA Insured
West Deptford Township, New Jersey, General Obligation
Bonds, Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,860,606
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,978,429
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.3% (20.8% OF TOTAL INVESTMENTS)
3,320 Atlantic County Improvement Authority, New Jersey, 11/10 at 100.00 Aaa 3,580,454
Egg Harbor Township Guaranteed Revenue Bonds,
Egg Harbor Township Golf Corporation, Series 2000,
5.400%, 11/01/30 - AMBAC Insured
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,510 4.500%, 11/15/12 No Opt. Call Aaa 1,636,311
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,976,295
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,189,900
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,302,141
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 11,090,700
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
2,000 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 2,202,360
3,000 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 3,208,560
3,365 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 3,580,932
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 1,895,810
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,977,855
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,073,960
1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,575,628
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 1,115,430
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,213,600
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,097,550
2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 A+ 2,584,500
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
7,000 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 7,865,410
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
1,000 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 1,095,900
Facilities Construction Bonds, Series 2001A, 5.250%, 6/15/19 -
AMBAC Insured
New Jersey Economic Development Authority, School
Facilities Construction Bonds, Series 2002C:
4,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 4,337,680
5,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 5,301,300
4,000 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 4,163,480
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
3,000 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,282,270
Facilities Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
3,600 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 3,898,296
Facilities Construction Bonds, Series 2004G,
5.000%, 9/01/17 - MBIA Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,194,000
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
3,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,047,696
System Bonds, Series 2004B, 5.250%, 12/15/13 - FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
$ 3,000 5.500%, 6/15/17 6/13 at 100.00 A+ $ 3,325,770
3,000 5.500%, 6/15/18 6/13 at 100.00 A+ 3,316,680
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 6,017,571
System Bonds, Series 2001B, 5.000%, 12/15/21 - MBIA Insured
1,895 North Bergen Township Municipal Utilities Authority, Hudson No Opt. Call AAA 2,332,442
County, New Jersey, Sewer Revenue Refunding Bonds,
Series 1993, 7.875%, 12/15/09 - FGIC Insured
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,329,050
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 30.9% (20.5% OF TOTAL INVESTMENTS)
3,275 Delaware River and Bay Authority, Delaware and 1/10 at 101.00 AAA 3,637,870
New Jersey, Revenue Bonds, Series 2000A,
5.750%, 1/01/29 - AMBAC Insured
2,960 Delaware River Port Authority, Pennsylvania and 1/12 at 100.00 AAA 3,101,873
New Jersey, Revenue Refunding Bonds, Port District Project,
Series 2001A, 5.200%, 1/01/27 - FSA Insured
7,000 Delaware River Port Authority, Pennsylvania and New Jersey, 1/06 at 102.00 AAA 7,316,260
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
3,500 Delaware River Port Authority, Pennsylvania and New Jersey, 1/10 at 100.00 AAA 3,875,270
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 5/05 at 100.00 CCC 2,164,320
American Airlines Inc., Series 1991, 7.100%, 11/01/31
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
9,275 5.500%, 1/01/25 - MBIA Insured 1/10 at 100.00 AAA 10,017,557
10,000 5.500%, 1/01/27 1/10 at 100.00 A 10,532,500
2,000 5.500%, 1/01/30 - MBIA Insured 1/10 at 100.00 AAA 2,160,120
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,189,510
5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
665 6.500%, 1/01/16 No Opt. Call A 800,853
215 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 261,919
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 1,362,688
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
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 2,377,333
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,159,750
6,850 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,304,977
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.375%, 10/15/35 - MBIA Insured
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 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,206,860
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 7,166,491
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 12,923,423
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A- 2,048,540
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 10.4% (6.9% OF TOTAL INVESTMENTS)
4,655 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,051,234
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,570,200
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded to 10/01/10) - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
2,505 6.500%, 1/01/16 No Opt. Call A*** 3,046,180
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 924,190
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 1,379,076
Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded to
7/01/11) - FSA Insured
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 8,186,550
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
2,000 West Orange Board of Education, Essex County, New Jersey, 10/09 at 101.00 Aaa 2,307,480
Certificates of Participation, Series 1999, 6.000%, 10/01/24
(Pre-refunded to 10/01/09) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.6% (4.4% OF TOTAL INVESTMENTS)
2,205 Camden County Pollution Control Financing Authority, 6/05 at 100.00 B2 2,204,669
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
3,500 Camden County Pollution Control Financing Authority, 6/05 at 100.00 B2 3,499,475
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid 12/13 at 100.00 AAA 2,264,610
Waste Revenue Bonds, Regional Sludge Project, Series 2003,
5.000%, 12/15/14 - FGIC Insured
400 New Jersey Economic Development Authority, Pollution 1/05 at 101.50 Baa3 413,400
Control Revenue Bonds, Jersey Power and Light Company,
Series 1985, 7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101.50 AAA 6,626,332
Bonds, Series 1999FF, 5.250%, 7/01/13 - MBIA Insured
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,680,700
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 3,066,210
Facility Senior Lien Revenue Bonds, Ogden Martin Systems
of Union Inc., Series 1998A, 5.000%, 6/01/23 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.7% (3.8% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,172,260
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 (Alternative Minimum Tax) - FGIC Insured
7,500 New Jersey Economic Development Authority, Water 5/06 at 102.00 Aaa 7,927,050
Facilities Revenue Bonds, American Water Company,
Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax) -
FGIC Insured
North Hudson Sewer Authority, New Jersey, Sewer Revenue
Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa 3,325,440
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,298,290
------------------------------------------------------------------------------------------------------------------------------------
$ 442,243 Total Long-Term Investments (cost $448,836,672) - 150.6% 470,606,513
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,844,541
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 312,451,054
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
26
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS)
$ 3,395 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB $ 3,244,024
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 3,484,342
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,168,168
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.5% (10.5% OF TOTAL INVESTMENTS)
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
2,320 5.700%, 6/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 2,347,678
1,545 6.000%, 6/01/15 (Alternative Minimum Tax) - MBIA Insured 6/10 at 101.00 AAA 1,566,213
2,960 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R 3,170,870
Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18
420 New Jersey Educational Facilities Authority, Revenue Bonds, 1/05 at 100.00 A- 421,499
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 503,510
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,074,050
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,359,428
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
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 1,777,334
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,101,703
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 1,485,083
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 780,194
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,594,275
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,105,234
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 326,127
Rider University, Series 2004A, 5.500%, 7/01/23
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 310,659
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
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 998,903
400 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 429,556
305 New Jersey Higher Education Assistance Authority, Student 1/05 at 100.00 A+ 305,583
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
2,575 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 2,718,685
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,148,201
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 1,032,310
Certificates of Participation, University Housing Associates, LLC,
Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 2,831,565
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
27
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.6% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 $ 1,078,410
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.9% (8.7% OF TOTAL INVESTMENTS)
620 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 647,144
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,684,520
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,767,593
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 1,215,722
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 3,225,540
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 1,898,475
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
545 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 614,809
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A2 3,060,747
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,233,440
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
1,800 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,999,908
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
1,270 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,352,067
Revenue Bonds, St. Clares Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/05 at 102.50 Baa1 2,722,053
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.0% (4.1% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 344,308
Enhanced Multifamily Revenue Bonds, Mount Carmel
Towers, Series 2002, 4.750%, 11/01/22 (Alternative
Minimum Tax)
595 Long Branch Housing Finance Corporation New Jersey, 4/05 at 100.00 N/R 598,469
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,875 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 2,949,319
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,429,030
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.2% (1.5% OF TOTAL INVESTMENTS)
555 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 563,236
Home Buyer Program Revenue Bonds, Series 1995O,
6.300%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 2,060,401
535 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 553,886
415 New Jersey Housing and Mortgage Finance Agency, 10/08 at 101.50 AAA 423,665
Home Buyer Program Revenue Bonds, Series 1998X,
5.350%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 506,590
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.3% (0.3% OF TOTAL INVESTMENTS)
$ 750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R $ 772,650
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.6% (9.3% OF TOTAL INVESTMENTS)
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,736,430
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
1,500 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,600,380
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
1,170 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 1,315,969
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA 2,084,020
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- 2,984,854
1,560 6.000%, 2/15/13 No Opt. Call AA- 1,831,534
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,485,280
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
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 1,480,100
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,203,367
2,085 Washington Township Board of Education, Gloucester County, 2/13 at 100.00 Aaa 2,282,429
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 2/01/15 - MBIA Insured
1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aaa 1,904,493
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, Sewer 7/09 at 102.00 Aaa 1,971,018
Utility Bonds, Series 1999, 5.300%, 7/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.0% (25.2% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,000 4.500%, 11/15/12 No Opt. Call Aaa 1,083,650
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,321,200
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,253,718
1,155 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 1,271,944
Authority, Revenue Bonds, Series 2002, 5.250%, 12/01/18 -
FGIC Insured
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,302,141
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 5,984,547
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space
and Farmland Preservation Bonds, Series 2003A:
1,200 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 1,321,416
1,750 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 1,871,660
1,965 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 2,091,094
1,000 Hudson County Improvement Authority, New Jersey, 1/08 at 101.50 AAA 1,066,950
Utility System Revenue Bonds, Harrison Franchise
Acquisition Project, Series 1997, 5.350%, 1/01/27 -
FSA 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 1,115,430
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,893,096
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,097,550
2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 A+ 2,811,936
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 4,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 4,719,246
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
500 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 547,950
Construction Bonds, Series 2001A, 5.250%, 6/15/19 -
AMBAC Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2002C:
3,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 3,253,260
2,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 2,120,520
2,540 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 2,643,810
Revenue Bonds, Series 2004, 5.750%, 6/15/34
3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,747,258
Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
2,250 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 2,436,435
Construction Bonds, Series 2004G, 5.000%, 9/01/17 -
MBIA Insured
1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA 1,739,745
Center Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 -
MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,097,000
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,431,790
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
2,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,473,592
System Bonds, Series 2004B, 5.250%, 12/15/13 - FGIC Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 A+ 2,211,120
System Bonds, Series 2003C, 5.500%, 6/15/18
7,500 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 8,367,675
5.500%, 8/01/17 - FSA Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,140,610
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,200 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 1,258,404
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,571,407
Obligation Lease Revenue Bonds, Series 2003,
5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.6% (16.1% OF TOTAL INVESTMENTS)
5,000 Delaware River Port Authority, Pennsylvania and New Jersey, 1/08 at 101.00 AAA 5,315,900
Revenue Bonds, Port District Project, Series 1998B,
5.000%, 1/01/19 - MBIA Insured
2,495 New Jersey Turnpike Authority, Revenue Bonds, Series 2000A, 1/10 at 100.00 AAA 2,694,750
5.500%, 1/01/25 - MBIA Insured
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,167,335
5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,830 6.500%, 1/01/16 No Opt. Call A 2,203,851
465 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 563,245
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 925,855
750 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 817,613
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 -
MBIA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,063,900
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 10,850,100
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 11,719,510
1,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 1,507,711
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.8% (9.4% OF TOTAL INVESTMENTS)
$ 4,655 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 5,051,234
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,250 New Jersey Building Authority, State Building Revenue 6/10 at 100.00 A+*** 2,495,385
Bonds, Series 2000A, 5.125%, 6/15/20 (Pre-refunded to
6/15/10)
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 2,823,500
Princeton University, Series 2000E, 5.500%, 7/01/17
(Pre-refunded to 7/01/10)
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,379,476
System Bonds, Series 2001B, 6.000%, 12/15/19
(Pre-refunded to 12/15/11) - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
6,590 6.500%, 1/01/16 No Opt. Call A*** 8,013,704
1,760 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 2,140,230
2,745 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 3,338,030
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,285 Camden County Pollution Control Financing Authority, 6/05 at 100.00 B2 1,284,820
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
1,250 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 1,321,562
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
2,000 Puerto Rico Electric Power Authority, Power Revenue 7/09 at 101.50 AAA 2,227,340
Refunding Bonds, Series 1999FF, 5.250%, 7/01/13 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.3% (9.7% 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 1,546,222
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,307,063
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,199,200
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water Facilities 3/05 at 101.00 AAA 3,163,705
Revenue Refunding Bonds, Hackensack Water Company,
Series 1994B, 5.900%, 3/01/24 (Alternative Minimum
Tax) - MBIA Insured
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,241,135
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
7,000 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA 7,169,400
Bonds, Series 1996, 5.125%, 8/01/22 - FGIC Insured
3,500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,838,310
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,755,701
New Jersey, Sewer Revenue Refunding Bonds, Series 1993B,
5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 258,700 Total Long-Term Investments (cost $263,115,474) - 147.0% 279,238,991
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,365,145
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 190,004,136
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
31
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.2% (2.9% OF TOTAL INVESTMENTS)
$ 970 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB $ 926,864
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 2,217,309
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,084,084
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.7% (12.8% OF TOTAL INVESTMENTS)
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,542,000
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue 7/11 at 100.00 AAA 220,068
Refunding 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 3,953,280
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,653,312
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,098,820
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
300 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 316,983
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 810,908
Montclair State University, Series 2004L, 5.125%, 7/01/21 -
MBIA Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 687,903
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 1,065,230
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 258,883
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
1,255 5.000%, 7/01/12 - MBIA Insured No Opt. Call AAA 1,389,134
625 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 660,075
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 2,085,440
500 5.250%, 9/01/31 9/11 at 100.00 BBB 510,100
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 522,910
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.500%, 12/01/31
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101.50 AAA 1,949,958
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB- 1,095,840
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.3% (0.1% OF TOTAL INVESTMENTS)
250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 259,830
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.2% (15.9% OF TOTAL INVESTMENTS)
$ 310 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB $ 323,572
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,684,520
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,451,493
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21
1,000 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 1,012,520
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
1,100 New Jersey Health Care Facilities Financing Authority, No Opt. Call AAA 1,156,386
Revenue Bonds, Kennedy Health System Obligated Group,
Series 1998B, 5.750%, 7/01/06 - MBIA Insured
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 564,045
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
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 A 810,960
8,500 5.750%, 7/01/31 7/10 at 100.00 A 9,117,355
1,500 New Jersey Health Care Facilities Financing Authority, 1/09 at 101.00 AAA 1,638,750
Revenue Bonds, Virtua Health System, Series 1998,
5.250%, 7/01/10 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 A2 2,574,600
Revenue Refunding Bonds, Burdette Tomlin Memorial
Hospital, Series 1999, 5.500%, 7/01/29
845 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 899,604
Revenue Bonds, St. Clares Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7% (1.2% OF TOTAL INVESTMENTS)
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+ 1,111,120
335 5.500%, 6/01/31 6/11 at 102.00 A+ 353,797
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 257,550
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.1% (3.5% OF TOTAL INVESTMENTS)
Hamilton Township, Mercer County Board of Education, New Jersey,
General Obligation Bonds, Series 2001:
1,850 4.750%, 8/15/18 - FSA Insured 8/10 at 100.00 AAA 1,945,220
1,630 4.750%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 1,711,027
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,452,074
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.2% (18.0% OF TOTAL INVESTMENTS)
1,745 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,883,570
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
2,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 2,218,140
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space
and Farmland Preservation Bonds, Series 2003A:
550 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 605,649
900 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 962,568
1,015 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 1,080,133
2,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,471,986
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2001A:
2,000 5.250%, 6/15/19 - AMBAC Insured 6/11 at 100.00 AAA 2,191,800
2,400 5.000%, 6/15/21 - AMBAC Insured 6/11 at 100.00 AAA 2,517,912
33
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA $ 1,626,630
Construction Bonds, Series 2002C, 5.000%, 6/15/15 -
MBIA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,249,044
Revenue Bonds, Series 2004, 5.750%, 6/15/34
1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 1,094,090
Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
900 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 974,574
Construction Bonds, Series 2004G, 5.000%, 9/01/17 -
\ MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,097,000
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,143,930
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,349,232
System Bonds, Series 2004B, 5.250%, 12/15/13 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
1,000 5.500%, 6/15/17 6/13 at 100.00 A+ 1,108,590
1,000 5.500%, 6/15/18 6/13 at 100.00 A+ 1,105,560
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,604,100
Refunding Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.0% (15.8% OF TOTAL INVESTMENTS)
1,000 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 1,100,530
Revenue Bonds, Series 2003, 5.250%, 1/01/18 - MBIA Insured
35 Delaware River Port Authority, Pennsylvania and New Jersey, 1/06 at 102.00 AAA 36,581
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
1,800 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 1,591,920
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,217,740
5.000%, 1/01/19 - FGIC Insured
175 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 210,751
6.500%, 1/01/16
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 408,806
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
3,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 3,157,710
Revenue Bonds, One Hundred Ninth Series 1997,
5.375%, 1/15/32 - MBIA Insured
3,500 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,684,660
Revenue Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 (Alternative Minimum Tax) - MBIA Insured
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,425,050
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured
4,000 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 4,202,680
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 17.8% (12.2% OF TOTAL INVESTMENTS)
5,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,987,133
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
50 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 57,851
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded to 10/01/10) - FGIC Insured
1,565 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 1,747,776
Princeton University, Series 2000E, 5.250%, 7/01/16
(Pre-refunded to 7/01/10)
1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/09 at 100.00 A+*** 1,218,147
System Bonds, Series 1998A, 5.000%, 6/15/17
(Pre-refunded to 6/15/09)
530 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A*** 644,501
6.500%, 1/01/16
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001:
$ 2,150 5.250%, 7/01/27 (Pre-refunded to 7/01/11) - FSA Insured 7/11 at 100.00 AAA $ 2,426,318
1,230 5.125%, 7/01/30 (Pre-refunded to 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,379,076
4,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 4,357,520
Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.6% (1.8% OF TOTAL INVESTMENTS)
1,815 Camden County Pollution Control Financing Authority, 6/05 at 100.00 B2 1,814,728
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 792,937
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.4% (14.7% OF TOTAL INVESTMENTS)
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,804,873
Revenue Bonds, American Water Company, Series 1997B,
5.375%, 5/01/32 (Alternative Minimum Tax) - FGIC Insured
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,222,180
Revenue Bonds, Middlesex Water Company, Series 1998,
5.350%, 2/01/38 (Alternative Minimum Tax) - MBIA Insured
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,839,658
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewer Authority, New Jersey, Sewer Revenue No Opt. Call Aaa 6,554,591
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 146,350 Total Long-Term Investments (cost $138,652,785) - 145.3% 145,541,749
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS)
175 New Jersey Economic Development Authority, El Dorado VMIG-1 175,000
Terminals Lease Revenue Bonds, Dow Chemical Company,
Variable Rate Demand Obligations, Series 1999B,
2.200%, 12/01/21+
350 Puerto Rico Government Development Bank, Adjustable A-1 350,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.920%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 525 Total Short-Term Investments (cost $525,000) 525,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $139,177,785) - 145.8% 146,066,749
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 2,143,109
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 100,209,858
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT DECEMBER 31, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Morgan Stanley dated August 10, 2004, to pay
semi-annually the notional amount multiplied by 5.489%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $1,400,000 1/14/05 1/14/35 $(55,335)
------------------------------------------------------------------------------------------------------------------------------------
$(55,335)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
35
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.5% (3.7% OF TOTAL INVESTMENTS)
$ 1,090 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB $ 1,041,528
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 1,583,792
1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,204,538
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.7% (11.3% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,049,340
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,090 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 1,151,705
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,121,860
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 545,955
William Paterson University, Series 2004A,
5.125%, 7/01/19 - FGIC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 612,507
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 207,106
Fairleigh Dickinson University, Series 2004C,
5.500%, 7/01/23
875 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 968,520
Rowan University, Series 2004C, 5.000%, 7/01/12 -
MBIA Insured
2,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 2,087,300
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, New Jersey, Revenue 12/12 at 100.00 AAA 1,843,091
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.7% (1.1% OF TOTAL INVESTMENTS)
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB- 1,095,840
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 6.1% (4.1% OF TOTAL INVESTMENTS)
2,700 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 2,911,707
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
1,250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 1,299,150
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.7% (16.0% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 229,632
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 1,511,145
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 521,380
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,960,131
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA $ 1,178,175
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,081,440
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A 2,689,650
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 1,343,975
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa3 506,260
Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A 3,754,205
Bonds, Robert Wood Johnson University Hospital, Series 2000,
5.750%, 7/01/31
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 540,243
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - MBIA Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/05 at 102.50 Baa1 1,129,909
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS)
2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,368,013
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.6% (5.2% OF TOTAL INVESTMENTS)
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+ 1,083,320
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,224,440
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.1% (3.5% OF TOTAL INVESTMENTS)
3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,163,620
General Obligation Bonds, Series 2002, 5.000%, 4/15/21 -
FGIC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 415,473
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.4% (17.3% OF TOTAL INVESTMENTS)
3,000 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 3,134,430
Authority, Revenue Bonds, Series 2002, 5.000%, 12/01/25 -
FGIC Insured
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,079,410
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
1,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 1,109,070
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 550,590
625 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 668,450
700 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 744,919
535 Mansfield Township Board of Education, Warren County, 3/06 at 102.00 AAA 567,555
New Jersey, Certificates of Participation, 5.900%, 3/01/15 -
MBIA Insured
1,500 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,685,445
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 1,095,900
Construction Bonds, Series 2001A, 5.250%, 6/15/19 -
AMBAC Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA 1,060,260
Construction Bonds, Series 2002C, 5.000%, 6/15/20 -
MBIA Insured
37
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 700 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB $ 728,609
Revenue Bonds, Series 2004, 5.750%, 6/15/34
900 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 974,574
Construction Bonds, Series 2004G, 5.000%, 9/01/17 -
MBIA Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,143,930
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 787,052
System Bonds, Series 2004B, 5.250%, 12/15/13 -
FGIC Insured
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 A+ 1,105,560
System Bonds, Series 2003C, 5.500%, 6/15/18
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 721,684
System Bonds, Series 2001B, 5.000%, 12/15/21 -
MBIA Insured
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 534,694
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.3% (15.8% OF TOTAL INVESTMENTS)
770 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 847,408
Revenue Bonds, Series 2003, 5.250%, 1/01/18 -
MBIA Insured
1,200 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,061,280
Facilities Revenue Bonds, Continental Airlines Inc.,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,145,160
5.000%, 1/01/19 - FGIC Insured
675 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 812,896
6.500%, 1/01/16
250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 272,538
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 -
MBIA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 2,035,200
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 (Alternative Minimum Tax)
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,128,070
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
1,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 1,036,180
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.125%, 10/15/30 - MBIA Insured
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 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,807,840
50 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 54,251
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 16.8% (11.4% OF TOTAL INVESTMENTS)
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,444,180
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
160 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 185,123
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded to 10/01/10) - FGIC Insured
2,430 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A*** 2,954,977
6.500%, 1/01/16
615 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 689,538
Bonds, Series 2001, 5.125%, 7/01/23 (Pre-refunded
to 7/01/11) - FSA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,723,450
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,495 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+*** 1,695,943
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.7% (7.3% OF TOTAL INVESTMENTS)
$ 825 Camden County Pollution Control Financing Authority, 6/05 at 100.00 B2 $ 824,876
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,500 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 2,646,400
5.250%, 10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 792,936
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 3,189,810
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.8% (0.5% OF TOTAL INVESTMENTS)
500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 548,330
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 95,275 Total Long-Term Investments (cost $96,881,290) - 146.8% 102,013,468
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.5% OF TOTAL INVESTMENTS)
500 Puerto Rico Government Development Bank, Adjustable A-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.920%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $97,381,290) - 147.5% 102,513,468
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,510,151
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 69,523,619
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT DECEMBER 31, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Goldman Sachs dated December 6, 2004, to pay
semi-annually the notional amount multiplied by 5.324%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $200,000 7/11/05 7/11/25 $(2,227)
Agreement with Morgan Stanley dated August 4, 2004, to pay
semi-annually the notional amount multiplied by 5.660%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $900,000 2/16/05 2/16/35 (56,688)
Agreement with Morgan Stanley dated August 10, 2004, to pay
semi-annually the notional amount multiplied by 5.489%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 600,000 1/14/05 1/14/35 (23,715)
------------------------------------------------------------------------------------------------------------------------------------
$(82,630)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
39
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,068,480
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.1% (14.5% OF TOTAL INVESTMENTS)
10,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 10,303,300
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,068,100
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
2,000 Chester County Industrial Development Authority, 1/12 at 100.00 AAA 2,069,800
Pennsylvania, 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 3,358,110
Haverford College, Series 2000, 5.750%, 11/15/29
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,448,736
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 1,075,440
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 513,434
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 486,555
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 461,094
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 437,036
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 413,686
8,000 Pennsylvania Higher Education Assistance Agency, 11/11 at 100.00 Aaa 8,187,680
Capital 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 5,369,500
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,045,580
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 3,159,749
Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 -
RAAI Insured
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,184,350
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
2,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 2,254,400
Bonds, Series 2002, 5.250%, 8/15/12
6,000 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 6,087,660
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 1,816,648
Authority, Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/18
105 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/05 at 100.00 N/R 105,314
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 7.8% (5.1% OF TOTAL INVESTMENTS)
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,219,877
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,293,763
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB $ 2,545,575
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
9,000 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A+ 9,654,660
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
1,175 Philadelphia Hospitals and Higher Education Facilities 5/05 at 101.00 BBB 1,203,788
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 1,783,202
Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A 980,813
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,000 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,043,980
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.5% (0.3% OF TOTAL INVESTMENTS)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/05 at 100.00 A2 961,344
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.4% (2.3% OF TOTAL INVESTMENTS)
190 Berks County Redevelopment Authority, Pennsylvania, Senior No Opt. Call A+ 195,755
Single Family Mortgage Revenue Bonds, Series 1986A,
8.000%, 12/01/17 (Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 5,191,000
Mortgage Revenue Bonds, Series 1997-59A,
5.750%, 10/01/23 (Alternative Minimum Tax)
2,210 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,271,416
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 1,000,762
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.3% (2.8% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,214,700
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 5,691,750
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,529,400
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101.00 BBB 3,250,284
Pennsylvania, Mortgage Revenue Bonds, Waverly Heights
Ltd., Series 1996, 6.375%, 1/01/26
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,588,815
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,838,253
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.1% (23.8% OF TOTAL INVESTMENTS)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,837,763
Series 2000 C-52, 5.250%, 11/01/23 - FGIC Insured
3,120 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 3,416,088
Bonds, Series 2000 C-53, 5.250%, 11/01/20 - FGIC Insured
4,000 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 4,527,120
Series 2005C-57, 5.250%, 11/01/13 (WI, settling 1/19/05) -
FGIC Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/14 at 100.00 AAA 1,314,804
Series 2004, 5.000%, 7/15/16 - FGIC Insured
41
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa $ 2,320,670
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
1,000 Delaware County, Pennsylvania, General Obligation Bonds, 10/09 at 100.00 AA 1,083,930
Series 1999, 5.125%, 10/01/19
4,600 Delaware County, Pennsylvania, General Obligation Bonds, 8/11 at 100.00 Aaa 4,771,534
Garnet Valley School District, Series 2001A,
5.000%, 2/15/25 - FGIC Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,967,321
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 - FGIC Insured
1,500 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,665,315
Series 2004, 5.000%, 11/15/10 - MBIA Insured
7,500 Montgomery County, Pennsylvania General Obligation Bonds, 7/09 at 100.00 Aaa 7,860,375
Series 1999, 5.000%, 7/15/24
925 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,043,308
General Obligation Bonds, Series 2004, 5.250%, 11/15/12 -
FSA Insured
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,093,570
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
1,025 Norristown Area School District, Montgomery County, 3/13 at 100.00 Aaa 1,096,863
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/19 - FGIC Insured
4,500 Pennsylvania, General Obligation Bonds, First Series 2004, No Opt. Call AAA 5,008,275
5.250%, 2/01/10 - MBIA Insured
4,000 Pennsylvania, General Obligation Bonds, Third Series 2004, No Opt. Call AA 4,445,960
5.000%, 9/01/12
Pennsylvania, General Obligation Refunding Bonds,
Second Series 2002:
4,000 5.000%, 10/01/11 - FGIC Insured No Opt. Call AAA 4,449,200
1,620 5.250%, 10/01/14 - FGIC Insured No Opt. Call AAA 1,843,771
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,098,760
2,585 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,885,480
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,780,528
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,467,040
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,444,650
General Obligation Bonds, Series 2001, 5.250%, 9/15/30 -
FGIC Insured
3,390 Pocono Mountain School District, Monroe County, 2/13 at 100.00 Aaa 3,707,304
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 2/15/15 - FGIC Insured
1,590 Red Lion Area School District, York County, Pennsylvania, 10/11 at 100.00 Aaa 1,700,887
General Obligation Bonds, Series 2001, 5.000%, 4/15/20 -
FSA Insured
1,230 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 1,344,452
Revenue Bonds, Conneaut School District Project,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,574,450
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
4,020 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 4,408,895
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
Wilkes-Barre Area School District, Luzerne County,
Pennsylvania, General Obligation Bonds, Series 2003A:
1,700 5.250%, 4/01/19 - MBIA Insured 4/14 at 100.00 AAA 1,874,590
2,050 5.250%, 4/01/20 - MBIA Insured 4/14 at 100.00 AAA 2,252,192
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.2% (15.9% OF TOTAL INVESTMENTS)
5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,266,100
Pennsylvania, Revenue Bonds, Guaranteed County Building
Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured
2,900 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 2,982,128
Pennsylvania, Guaranteed Revenue Bonds, Allegheny
County Office Building Project, Series 2002B,
5.000%, 11/01/29 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Port Authority of Allegheny County, Pennsylvania, Special
Transportation Revenue Bonds, Series 2001:
$ 1,000 5.500%, 3/01/17 - FGIC Insured 3/11 at 101.00 AAA $ 1,117,150
3,500 5.000%, 3/01/29 - FGIC Insured 3/11 at 101.00 AAA 3,591,945
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa3 6,944,820
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,870,097
Special Tax Revenue Refunding Bonds, Philadelphia Funding
Program, Series 1999, 4.750%, 6/15/23 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,500 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,677,585
2,600 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,879,474
2,125 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,345,129
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,717,233
Bonds, Series 2001, 5.000%, 7/15/41 - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,491,373
Pennsylvania, 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 2,946,699
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium 8/09 at 101.00 AAA 4,088,520
Authority, 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 1,174,235
Tax Increment Financing District Bonds, Center Triangle
Project, Series 1999A, 6.100%, 5/01/19
1,800 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 1,961,874
Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.9% (5.9% OF TOTAL INVESTMENTS)
1,460 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 1,594,816
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 2,234,939
Revenue Bonds, Lehigh Valley Airport System, Series 2000A,
6.000%, 5/15/30 (Alternative Minimum Tax) - MBIA Insured
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,789,772
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 (Alternative Minimum Tax) -
ACA Insured
2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 2,274,272
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,141,100
Series 2001B, 5.250%, 6/15/31 (Alternative Minimum Tax) -
FGIC Insured
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,419,130
Revenue Bonds, Series 1999, 5.250%, 9/01/29 -
FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 2,097,176
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 13.1% (8.6% OF TOTAL INVESTMENTS)
1,355 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA 1,430,013
District, General Obligation Bonds, Series 1996,
5.850%, 7/15/12 (Pre-refunded to 7/15/06) - FGIC Insured
1,450 Indiana County Industrial Development Authority, Pennsylvania, 11/06 at 100.00 AAA 1,544,642
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 1999A, 5.875%, 11/01/29 (Pre-refunded to
11/01/06) - AMBAC Insured
1,000 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA*** 1,120,390
5.000%, 9/15/15 (Pre-refunded to 9/15/11)
15,050 Philadelphia School District, Pennsylvania, General Obligation 9/05 at 101.00 AAA 15,543,640
Bonds, Series 1995B, 5.500%, 9/01/25 (Pre-refunded to
9/01/05) - AMBAC Insured
2,000 Sto-Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,308,380
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
43
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA $ 3,827,610
Pennsylvania, Water and Sewer Revenue Bonds,
Series 1991, 7.100%, 12/01/21 (Pre-refunded to
11/15/15) - FGIC Insured
5,450 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 7,375,267
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.3% (6.2% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,313,913
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
2,565 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,782,358
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
4,000 Lehigh County Industrial Development Authority, 8/05 at 102.00 AAA 4,162,520
Pennsylvania, Pollution Control Revenue Refunding
Bonds, Pennsylvania Power and Light Company Project,
Series 1995A, 6.150%, 8/01/29 - MBIA Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,932,915
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,200,300
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 724,647
General Ordinance, Fifth Series 2004A-1,
5.000%, 9/01/26 - FSA Insured
680 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 742,805
Eighteenth Series 2004, 5.000%, 8/01/13
3,500 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 3,885,455
General Ordinance, Sixteenth Series 1999, 5.500%, 7/01/13 -
FSA Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,878,118
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.8% (11.7% OF TOTAL INVESTMENTS)
2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,378,622
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
1,000 Bucks County Water and Sewerage Authority, Pennsylvania, 12/06 at 100.00 AAA 1,056,980
Collection System Revenue Bonds, Series 1996,
5.550%, 12/01/17 - FGIC Insured
Bucks County Water and Sewerage Authority, Pennsylvania,
Sewerage System Revenue Bonds, Neshaminy Interceptor Project,
Series 2004:
655 5.250%, 6/01/14 - FSA Insured No Opt. Call AAA 741,598
530 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA 601,296
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,204,750
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company, Series 2001, 5.350%, 10/01/31 (Alternative
Minimum Tax) - AMBAC Insured
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 5,741,202
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,572,209
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,539,118
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/20 - MBIA Insured
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AAA 5,200,750
Series 2001A, 5.200%, 12/01/30 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,125,460
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,250 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,342,272
Revenue Bonds, Series 2004, 5.000%, 4/01/20 -
MBIA Insured
1,000 Lower Bucks County Joint Municipal Authority, Pennsylvania, 11/08 at 100.00 Aaa 1,069,360
Water and Sewerage Revenue Bonds, Series 1998,
5.000%, 11/15/15 - FSA Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** 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 $ 6,128,822
10,000 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 10,250,100
------------------------------------------------------------------------------------------------------------------------------------
$ 357,870 Total Long-Term Investments (cost $361,490,641) - 151.2% 381,989,963
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,000 Puerto Rico Government Development Bank, Adjustable A-1 2,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.920%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $363,490,641) - 152.0% 383,989,963
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.2% 670,576
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.2)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 252,660,539
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
45
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.9% (9.3% OF TOTAL INVESTMENTS)
$ 1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA $ 1,341,176
Pennsylvania, Revenue Bonds, Duquesne University,
Series 2004A, 5.000%, 3/01/19 - FGIC Insured
1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A 1,058,700
Pennsylvania, College Revenue Bonds, Thiel College,
Series 1999A, 5.375%, 11/15/29 - ACA Insured
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BBB- 3,036,630
Pennsylvania, College Revenue Bonds, Immaculata
College, Series 1998, 5.625%, 10/15/27
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 1,873,948
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,480,478
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,092,150
3,060 Indiana County Industrial Development Authority, Pennsylvania, 11/14 at 100.00 AAA 3,228,851
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 2004, 5.000%, 11/01/24 -AMBAC Insured
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,075,390
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 2,293,452
Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,536,390
Bonds, Temple University, Series 2001, 5.000%, 7/15/31 -
MBIA Insured
4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 4,386,882
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
5,750 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 5,848,555
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.000%, 1/01/32
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 1,411,276
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 823,013
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/19
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 2,667,775
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18
270 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/05 at 100.00 N/R 270,807
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.6% (11.8% OF TOTAL INVESTMENTS)
8,500 Allegheny County Hospital Development Authority, 5/06 at 102.00 AAA 8,998,185
Pennsylvania, Revenue Bonds, South Hills Health System,
Series 1996A, 5.875%, 5/01/26 - MBIA Insured
14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 14,997,640
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 11/12 at 100.00 AAA 1,340,220
Bonds, 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+ 5,159,800
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,293,763
Revenue Bonds, Good Shepherd Goup, Series 2004A,
5.500%, 11/01/24
2,400 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,443,752
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
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 BBB- $ 1,949,840
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,903,220
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 1,864,203
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,309,356
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A 1,037,005
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
4,345 Bucks County Redevelopment Authority, Pennsylvania, 2/05 at 100.00 Baa2 4,349,997
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 2,096,560
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Alternative Minimum Tax) (Mandatory put 4/01/22)
1,510 Luzerne County Housing Corporation, Pennsylvania, 3/05 at 100.00 Aaa 1,511,782
FHA-Insured Section 8 Assisted Revenue Refunding Bonds,
Freeland Apartments, Series 1993, 6.125%, 7/15/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS)
1,230 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 1,285,510
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,160,320
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
1,375 Pennsylvania Housing Finance Agency, Single Family 4/07 at 101.50 AA+ 1,417,515
Mortgage Revenue Bonds, Series 1997-58A,
5.950%, 10/01/28 (Alternative Minimum Tax)
1,645 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 1,656,318
Mortgage Revenue Bonds, Series 1997-59A,
5.700%, 4/01/17 (Alternative Minimum Tax)
715 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 745,137
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (Alternative Minimum Tax)
1,500 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/06 at 102.00 AAA 1,555,080
Mortgage Revenue Bonds, Series 1996C, 6.500%, 10/01/23
(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 887,149
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 802,256
155 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/05 at 100.00 AAA 155,812
Mortgage Revenue Bonds, Series 1992D, 6.500%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.0% (2.0% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/05 at 101.00 BB- 1,958,880
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 2,085,660
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 3,101,560
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.4% (2.3% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,030,940
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 918,478
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/28
47
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
$ 1,000 6.150%, 12/01/20 - RAAI Insured 2/05 at 100.00 AA $ 1,002,870
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,157,620
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 1,355,144
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,631,074
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.1% (1.5% OF TOTAL INVESTMENTS)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 530,815
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 4,726,935
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 31.5% (21.1% OF TOTAL INVESTMENTS)
3,695 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 4,181,927
Series 2005C-57, 5.250%, 11/01/13 (WI, settling
1/19/05) - FGIC Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/14 at 100.00 AAA 1,314,804
Series 2004, 5.000%, 7/15/16 - FGIC Insured
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,236,282
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 758,748
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,161,903
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,118,865
1,500 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,665,315
Series 2004, 5.000%, 11/15/10 - MBIA Insured
4,305 Montgomery County, Pennsylvania, General Obligation Bonds, 10/06 at 100.00 Aaa 4,481,677
Series 1996B, 5.375%, 10/15/21
985 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,110,982
General Obligation Bonds, Series 2004, 5.250%, 11/15/12 -
FSA Insured
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,093,570
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,000 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,070,110
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,066,520
1,735 5.000%, 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,841,737
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,114,500
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,391,922
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,728,648
3,500 Pennsylvania, General Obligation Refunding Bonds, Second No Opt. Call AAA 3,885,525
Series 2003, 5.000%, 7/01/11 - MBIA Insured
3,000 Pennsylvania, General Obligation Bonds, First Series 2004, No Opt. Call AAA 3,338,850
5.250%, 2/01/10 - MBIA Insured
4,250 Pennsylvania, General Obligation Bonds, Third Series 2004, No Opt. Call AA 4,723,833
5.000%, 9/01/12
Pennsylvania, General Obligation Refunding Bonds, Second
Series 2002:
3,500 5.000%, 10/01/11 - FGIC Insured No Opt. Call AAA 3,893,050
1,600 5.250%, 10/01/14 - FGIC Insured No Opt. Call AAA 1,821,008
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,098,760
2,000 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,232,480
2,000 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 2,300,920
Refunding Bonds, Series 1995A, 6.250%, 9/01/09 -
AMBAC Insured
1,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,148,800
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,300 Pocono Mountain School District, Monroe County, 2/13 at 100.00 Aaa $ 3,608,880
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 2/15/15 - FGIC 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 3,123,263
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,074,275
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District Project, Series 2003:
1,000 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 1,093,050
1,355 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 1,478,969
2,550 State Public School Building Authority, Pennsylvania, 5/13 at 100.00 Aaa 2,485,612
School Revenue Bonds, York City School District,
Series 2003, 4.000%, 5/01/21 - FSA Insured
4,050 State Public School Building Authority, Pennsylvania, 6/13 at 100.00 AAA 4,134,928
Lease Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/33 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,647,070
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,102,700
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.4% (5.6% OF TOTAL INVESTMENTS)
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100.00 AAA 4,231,088
Local Government Revenue Bonds, Series 1996A,
6.000%, 4/15/26 - AMBAC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,000 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,118,390
2,400 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,657,976
2,000 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,207,180
3,500 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 3,819,795
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,826,645
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,000 Southeastern Transportation Authority, Pennsylvania, 3/09 at 101.00 AAA 1,089,930
Special Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
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 1,108,250
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,116,100
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.3% (10.9% OF TOTAL INVESTMENTS)
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,415,943
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
1,500 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 1,638,510
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 4,814,682
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 (Alternative Minimum Tax) -
ACA Insured
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,695,692
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,355,800
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28
(Alternative Minimum Tax) - FGIC Insured
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 6,790,763
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed 9/13 at 100.00 AAA 2,419,244
Parking 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 6,843,983
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
49
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 18.3% (12.2% OF TOTAL INVESTMENTS)
Butler County, Pennsylvania, General Obligation Bonds,
Series 2003:
$ 1,000 5.250%, 7/15/19 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA $ 1,134,510
1,000 5.250%, 7/15/21 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,134,510
1,200 5.250%, 7/15/23 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,361,412
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,411,582
Series 2000, 5.625%, 11/15/28 (Pre-refunded to
11/15/10) - AMBAC Insured
17,895 Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100.00 AAA 19,450,433
Tax-Exempt Revenue Bonds, City of Harrisburg Project,
Series 1997-II, 5.625%, 9/15/22 (Pre-refunded to
9/15/07) - MBIA Insured
7,900 Montgomery County Higher Education and Health Authority, 1/09 at 101.00 AAA 8,695,056
Pennsylvania, Revenue Bonds, Pottstown Healthcare
Corporation, Series 1998, 5.000%, 1/01/27 (Pre-refunded
to 1/01/09) - FSA Insured
1,305 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,573,530
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15
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 No Opt. Call AAA 1,160,390
3,690 6.650%, 12/01/19 No Opt. Call AAA 4,611,725
1,650 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 2,232,879
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.1% (10.1% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,182,521
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, 6/08 at 102.00 AAA 8,270,320
Pennsylvania, Exempt Facilities Revenue Bonds,
Shippingport Project, Series 1998A, 5.375%, 6/01/28
(Alternative Minimum Tax) - AMBAC Insured
3,485 Carbon County Industrial Development Authority, No Opt. Call BBB- 3,780,319
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, 5/07 at 102.00 AAA 8,193,557
Pennsylvania, Pollution Control Revenue Bonds,
Metropolitan Edison Company Project, Series 1997A,
5.950%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 2,097,000
Pennsylvania, Pollution Control Revenue Refunding
Bonds, PSEG Power LLC Project, Series 2001A,
5.850%, 6/01/27 (Alternative Minimum Tax)
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,719,246
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A, 5.250%,
11/01/13 - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 5,878,570
General Ordinance, Second Series 1999, 5.000%, 7/01/29 -
FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,100,150
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 724,647
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
745 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 813,808
Eighteenth Series 2004, 5.000%, 8/01/13
2,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 2,486,691
General Ordinance, Sixteenth Series 1999, 5.500%, 7/01/13 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.4% (8.3% OF TOTAL INVESTMENTS)
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 2,183,360
Revenue Bonds, Series 2000, 5.500%, 12/01/30 -
MBIA Insured
1,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/11 at 101.00 AAA 1,121,680
Revenue Refunding Bonds, Series 2001, 5.375%, 12/01/13 -
MBIA Insured
2,500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,696,850
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 4,210,040
Water Facility Revenue Bonds, Pennsylvania Suburban
Water Company Project, Series 2002, 5.550%, 9/01/32
(Alternative Minimum Tax) - FGIC Insured
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
Bucks County Water and Sewerage Authority, Pennsylvania,
Sewerage System Revenue Bonds, Neshaminy Interceptor Project,
Series 2004:
$ 605 5.250%, 6/01/14 - FSA Insured No Opt. Call AAA $ 684,987
485 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA 550,242
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,761,012
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 2,125,460
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,315 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,404,749
Revenue Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, 7/10 at 100.00 AAA 3,711,322
Pennsylvania, Water Facility Revenue Bonds, Consumers
Water Company, Shenango Valley Division Project,
Series 2000, 6.000%, 7/01/30 (Alternative Minimum Tax) -
MBIA Insured
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 1,215,548
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,695,466
2,730 Philadelphia, Pennsylvania, Water and Wastewater Revenue No Opt. Call AAA 3,182,440
Bonds, Series 1995, 6.250%, 8/01/10 - MBIA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,059,200
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 339,455 Total Long-Term Investments (cost $336,969,944) - 149.3% 358,140,535
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (132,329)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 239,908,206
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
51
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.0% (1.4% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,068,480
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 30.6% (20.7% OF TOTAL INVESTMENTS)
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,323,890
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
1,325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,365,943
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,454,860
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
2,370 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 2,492,813
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,073,900
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,090 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,202,564
Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,555,305
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,402,810
Bonds, Series 2002, 5.250%, 8/15/14
1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 1,049,430
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.9% (11.4% OF TOTAL INVESTMENTS)
400 Allegheny County Hospital Development Authority, 11/10 at 102.00 B1 465,472
Pennsylvania, Revenue Bonds, West Penn Allegheny
Health System, Series 2000B, 9.250%, 11/15/30
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,570,525
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 258,753
Revenue Bonds, Good Shepherd Goup, Series 2004A,
5.500%, 11/01/24
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 610,938
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A+ 2,306,391
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A 173,686
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 1,074,920
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
1,250 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,304,975
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,795 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,836,913
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1998DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.7% (4.5% OF TOTAL INVESTMENTS)
$ 2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 $ 2,085,660
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 1,409,800
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.1% (8.1% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 1,049,020
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 2,200,107
Center Revenue Bonds, Willow Valley Retirement Communities
Project, Series 2001, 5.875%, 6/01/31
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 3,000,350
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.1% (2.1% OF TOTAL INVESTMENTS)
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 838,470
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 787,823
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.0% (23.0% OF TOTAL INVESTMENTS)
1,000 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,131,780
Series 2005C-57, 5.250%, 11/01/13 (WI, settling 1/19/05) -
FGIC Insured
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,705,211
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
250 Duquesne School District, Allegheny County, Pennsylvania, 10/05 at 100.00 AAA 254,673
General Obligation Bonds, Series 1998, 5.000%, 10/01/18 -
AMBAC Insured
595 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 660,575
Series 2004, 5.000%, 11/15/10 - MBIA Insured
750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 834,495
Series 2003A, 5.250%, 11/15/16 - MBIA Insured
250 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 282,603
General Obligation Bonds, Series 2004, 5.250%, 11/15/13 -
FSA Insured
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,235,677
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 -
FGIC Insured
750 Pennsylvania, General Obligation Bonds, Third Series 2004, No Opt. Call AA 833,618
5.000%, 9/01/12
2,000 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 2,191,160
5.000%, 9/15/13
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,779,800
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,446,400
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
1,230 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,332,422
General Obligation Bonds, Series 2001A, 5.000%, 4/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.0% (6.7% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,014,830
Redevelopment Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,118,390
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
53
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA $ 1,677,225
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A, 5.500%, 4/15/19 - FGIC Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,091,370
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
250 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 272,482
Revenue Bonds, Series 1999A, 5.250%, 3/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.6% (7.1% OF TOTAL INVESTMENTS)
300 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 327,702
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 1,046,670
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 (Alternative Minimum Tax) -
ACA Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,812,265
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 (Alternative
Minimum Tax) - FGIC Insured
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 2,302,290
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 0.4% (0.4% OF TOTAL INVESTMENTS)
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 199,749
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.0% (8.7% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 525,565
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
3,100 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,417,378
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 296,768
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
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 1,094,200
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,091,160
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 144,929
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
135 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 147,469
Eighteenth Series 2004, 5.000%, 8/01/13
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS)
500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 539,370
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 637,635
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 69,960 Total Long-Term Investments (cost $71,151,049) - 145.2% 75,409,659
=============-----------------------------------------------------------------------------------------------------------------------
54
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.9% (2.0% OF TOTAL INVESTMENTS)
$ 1,500 Puerto Rico Government Development Bank, Adjustable A-1 $ 1,500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.920%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $72,651,049) - 148.1% 76,909,659
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.1% 34,784
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 51,944,443
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT DECEMBER 31, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Goldman Sachs dated December 6, 2004, to pay
semi-annually the notional amount multiplied by 5.324%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $ 500,000 7/11/05 7/11/25 $(5,568)
Agreement with Morgan Stanley dated August 4, 2004, to pay
semi-annually the notional amount multiplied by 5.660%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 1,100,000 2/16/05 2/16/35 (69,286)
Agreement with Morgan Stanley dated August 10, 2004, to pay
semi-annually the notional amount multiplied by 5.489%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). 600,000 1/14/05 1/14/35 (23,715)
------------------------------------------------------------------------------------------------------------------------------------
$(98,569)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
55
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.8% (14.8% OF TOTAL INVESTMENTS)
$ 700 Allegheny County Higher Education Building Authority, 3/05 at 100.00 AA- $ 702,772
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,500 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,615,335
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
1,435 Delaware County Authority, Pennsylvania, Revenue 8/13 at 100.00 AAA 1,586,249
Refunding Bonds, Villanova University, Series 2003,
5.250%, 8/01/17 - FGIC Insured
20 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 21,036
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
2,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 2,048,520
Revenue Bonds, Temple University, Series 2001,
5.000%, 7/15/31 - MBIA Insured
5,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 5,636,000
Bonds, Series 2002, 5.250%, 8/15/12
1,000 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 1,095,130
Authority, Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.4% (7.7% OF TOTAL INVESTMENTS)
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 B1 116,368
300 9.250%, 11/15/30 11/10 at 102.00 B1 349,104
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,056,420
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 610,938
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
20 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 A+ 21,455
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Philadelphia Hospitals and Higher Education Facilities 5/05 at 101.00 BBB 1,024,500
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 A 229,878
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 1,597,190
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
600 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 626,388
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.8% (3.9% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,372,390
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.9% (2.6% OF TOTAL INVESTMENTS)
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,210,336
Revenue Bonds, Pennswood Village Project, Series 2002A,
6.000%, 10/01/34
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 1,049,020
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.2% (2.3% OF TOTAL INVESTMENTS)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,117,960
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
56
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R $ 787,823
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.9% (15.5% OF TOTAL INVESTMENTS)
500 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 565,890
Series 2005C-57, 5.250%, 11/01/13 (WI, settling 1/19/05) -
FGIC Insured
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,896,165
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
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 813,994
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,119,170
4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 4,663,531
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 448,558
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
275 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 310,863
General Obligation Bonds, Series 2004, 5.250%, 11/15/13 -
FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,524,786
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.2% (25.2% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,014,830
Redevelopment Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa3 4,629,880
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,105,080
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 4,192,480
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,118,390
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,208,813
Bonds, Series 2001, 5.500%, 7/15/33 - AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,100,780
Pennsylvania, 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 1,118,150
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,949,763
250 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 272,482
Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1% (2.8% OF TOTAL INVESTMENTS)
300 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 327,702
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 1,046,670
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 (Alternative Minimum Tax) -
ACA Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,011,500
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 15.5% (10.5% OF TOTAL INVESTMENTS)
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,278,140
Series 2001, 5.500%, 11/15/26 (Pre-refunded to 5/15/11) -
FGIC Insured
57
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS December 31, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 4,000 Pennsylvania, General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA*** $ 4,481,560
5.000%, 9/15/15 (Pre-refunded to 9/15/11)
2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,287,800
Obligation Bonds, Series 2002A, 5.500%, 2/01/31
(Pre-refunded to 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.6% (7.8% OF TOTAL INVESTMENTS)
3,135 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,455,961
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 328,006
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,631,435
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 150,105
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 174,778
Eighteenth Series 2004, 5.000%, 8/01/13
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.2% (6.2% OF TOTAL INVESTMENTS)
4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,736,295
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax) - FGIC Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 637,638
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 79,165 Total Long-Term Investments (cost $80,001,992) - 146.6% 85,476,007
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0% (0.7% OF TOTAL INVESTMENTS)
600 South Fork Municipal Authority, Pennsylvania, Hospital A-1 600,000
Revenue Bonds, Conemaugh Health System - South Fork
Hospital, Variable Rate Demand Obligations, Series 1998A,
2.170%, 7/01/28 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 600 Total Short-Term Investments (cost $600,000) 600,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $80,601,992) - 147.6% 86,076,007
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 735,427
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 58,311,434
====================================================================================================================
FORWARD SWAP CONTRACTS OUTSTANDING AT DECEMBER 31, 2004:
SWAP UNREALIZED
NOTIONAL EFFECTIVE TERMINATION APPRECIATION
AMOUNT DATE(2) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Agreement with Goldman Sachs dated December 6, 2004, to pay
semi-annually the notional amount multiplied by 5.324%
(annualized) and receive quarterly the notional amount
multiplied by the three-month USD-LIBOR (United States
Dollar - London Inter-Bank Offered Rates). $1,500,000 7/11/05 7/11/25 $(16,705)
------------------------------------------------------------------------------------------------------------------------------------
$(16,705)
------------------------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
(2) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
58
Statement of
ASSETS AND LIABILITIES December 31, 2004 (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 market value (cost $448,836,672,
$263,115,474, $139,177,785, and
$97,381,290, respectively) $470,606,513 $279,238,991 $146,066,749 $102,513,468
Cash -- -- 14,013 100,973
Receivables:
Interest 6,909,813 4,168,111 2,253,332 1,532,971
Investments sold -- -- -- --
Other assets 34,186 24,348 3,912 4,351
------------------------------------------------------------------------------------------------------------------------------------
Total assets 477,550,512 283,431,450 148,338,006 104,151,763
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank borrowings 2,738,346 1,571,830 -- --
Payable for investments purchased -- -- -- --
Forward swaps, at value -- -- 55,335 82,630
Accrued expenses:
Management fees 252,687 151,952 42,758 30,197
Other 88,409 96,394 22,517 13,614
Preferred share dividends payable 20,016 7,138 7,538 1,703
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,099,458 1,827,314 128,148 128,144
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $312,451,054 $190,004,136 $100,209,858 $ 69,523,619
====================================================================================================================================
Common shares outstanding 20,432,731 12,039,329 6,554,816 4,509,839
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.29 $ 15.78 $ 15.29 $ 15.42
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,327 $ 120,393 $ 65,548 $ 45,098
Paid-in surplus 288,235,332 171,866,559 93,046,329 63,945,159
Undistributed (Over-distribution of) net investment income 2,167,732 1,872,368 767,619 479,661
Accumulated net realized gain (loss) from investments and
forward swaps 73,822 21,299 (503,267) 4,153
Net unrealized appreciation of investments and
forward swaps 21,769,841 16,123,517 6,833,629 5,049,548
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $312,451,054 $190,004,136 $100,209,858 $ 69,523,619
====================================================================================================================================
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.
59
Statement of
ASSETS AND LIABILITIES December 31, 2004 (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $363,490,641,
$336,969,944, $72,651,049, and
$80,601,992, respectively) $383,989,963 $358,140,535 $76,909,659 $86,076,007
Cash 349,913 268,049 237,840 69,700
Receivables:
Interest 5,088,970 4,883,278 1,050,892 1,287,310
Investments sold -- 20,000 -- --
Other assets 26,513 37,285 4,667 4,257
------------------------------------------------------------------------------------------------------------------------------------
Total assets 389,455,359 363,349,147 78,203,058 87,437,274
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Bank borrowings -- 868,364 -- --
Payable for investments purchased 4,502,600 4,159,277 1,125,650 562,825
Forward swaps, at value -- -- 98,569 16,705
Accrued expenses:
Management fees 205,669 191,810 22,454 25,188
Other 74,631 108,184 11,942 15,311
Preferred share dividends payable 11,920 13,306 -- 5,811
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,794,820 5,340,941 1,258,615 625,840
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $252,660,539 $239,908,206 $51,944,443 $58,311,434
====================================================================================================================================
Common shares outstanding 16,301,498 15,797,321 3,306,613 3,724,790
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.50 $ 15.19 $ 15.71 $ 15.65
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 157,973 $ 33,066 $ 37,248
Paid-in surplus 230,742,390 216,071,835 46,915,090 52,797,232
Undistributed (Over-distribution of) net investment income 760,369 1,825,566 535,154 (79,117)
Accumulated net realized gain (loss) from investments and
forward swaps 495,443 682,241 301,092 98,761
Net unrealized appreciation of investments and
forward swaps 20,499,322 21,170,591 4,160,041 5,457,310
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $252,660,539 $239,908,206 $51,944,443 $58,311,434
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
60
Statement of
OPERATIONS Six Months Ended December 31, 2004 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $11,719,855 $ 6,871,020 $3,589,623 $2,554,319
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,499,486 906,272 476,477 334,949
Preferred shares - auction fees 204,165 115,442 60,494 43,479
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,042 5,042
Shareholders' servicing agent fees and expenses 25,956 15,471 1,005 990
Custodian's fees and expenses 56,132 34,046 19,983 13,988
Directors'/Trustees' fees and expenses 5,920 3,646 1,875 1,367
Professional fees 11,478 8,902 6,409 5,637
Shareholders' reports - printing and mailing expenses 27,773 13,729 10,077 6,561
Stock exchange listing fees 5,586 5,506 281 193
Investor relations expense 27,997 17,189 8,596 6,260
Other expenses 17,697 10,783 7,332 4,730
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,897,313 1,146,109 597,571 423,196
Custodian fee credit (14,574) (8,066) (3,979) (2,043)
Expense reimbursement -- -- (222,364) (155,862)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,882,739 1,138,043 371,228 265,291
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 9,837,116 5,732,977 3,218,395 2,289,028
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 271,312 998,397 563,009 162,487
Net realized gain (loss) from forward swaps -- -- (170,986) (14,189)
Change in net unrealized appreciation (depreciation)
of investments 14,971,487 7,285,603 4,354,254 3,755,594
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- (55,335) (82,630)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 15,242,799 8,284,000 4,690,942 3,821,262
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (739,269) (386,884) (262,999) (184,553)
From accumulated net realized gains from investments (107,496) (121,116) -- (13,579)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (846,765) (508,000) (262,999) (198,132)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $24,233,150 $13,508,977 $7,646,338 $5,912,158
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
OPERATIONS Six Months Ended December 31, 2004 (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,255,426 $ 8,884,634 $1,864,115 $2,032,898
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,222,697 1,142,031 251,308 279,866
Preferred shares - auction fees 166,356 148,838 31,506 35,919
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,042 5,042
Shareholders' servicing agent fees and expenses 28,764 23,603 1,344 1,298
Custodian's fees and expenses 42,241 40,935 10,824 11,051
Directors'/Trustees' fees and expenses 4,769 4,346 655 1,108
Professional fees 10,519 10,169 5,151 5,224
Shareholders' reports - printing and mailing expenses 27,070 20,089 5,548 6,798
Stock exchange listing fees 5,509 5,504 141 160
Investor relations expense 23,495 21,861 4,732 5,428
Other expenses 14,315 11,013 6,250 5,388
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,560,858 1,443,512 322,501 357,282
Custodian fee credit (5,841) (6,101) (1,578) (1,820)
Expense reimbursement -- -- (116,940) (130,230)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,555,017 1,437,411 203,983 225,232
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,700,409 7,447,223 1,660,132 1,807,666
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
Net realized gain from investments 1,542,279 2,564,828 1,422,630 148,654
Net realized gain (loss) from forward swaps -- -- (22,703) (31,216)
Change in net unrealized appreciation (depreciation)
of investments 10,748,948 8,218,904 1,289,977 3,069,421
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- (98,569) (16,705)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 12,291,227 10,783,732 2,591,335 3,170,154
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (728,084) (603,233) (104,249) (169,225)
From accumulated net realized gains from investments (138,558) (130,612) (49,380) (9,188)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (866,642) (733,845) (153,629) (178,413)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $19,124,994 $17,497,110 $4,097,838 $4,799,407
====================================================================================================================================
See accompanying notes to financial statements.
62
Statement of
CHANGES IN NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/04 6/30/04 12/31/04 6/30/04 12/31/04 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,837,116 $ 20,558,464 $ 5,732,977 $ 11,904,836 $ 3,218,395 $ 6,578,953
Net realized gain from investments 271,312 5,219,194 998,397 3,841,083 563,009 406,876
Net realized gain (loss) from
forward swaps -- -- -- -- (170,986) --
Change in net unrealized appreciation
(depreciation) of investments 14,971,487 (20,391,457) 7,285,603 (13,401,493) 4,354,254 (5,455,331)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- -- (55,335) --
Distributions to Preferred
Shareholders:
From net investment income (739,269) (1,019,897) (386,884) (596,849) (262,999) (359,649)
From accumulated net
realized gains
from investments (107,496) (272,572) (121,116) (114,819) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 24,233,150 4,093,732 13,508,977 1,632,758 7,646,338 1,170,849
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,798,727) (19,523,339) (5,638,017) (11,259,998) (3,087,319) (6,144,941)
From accumulated net realized gains
from investments (2,241,471) (4,021,804) (2,619,758) (1,617,686) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (12,040,198) (23,545,143) (8,257,775) (12,877,684) (3,087,319) (6,144,941)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- 1,664
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 586,703 2,153,223 -- 429,837 -- 121,525
Preferred shares offering costs -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares from
capital share transactions 586,703 2,153,223 -- 429,837 -- 123,189
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 12,779,655 (17,298,188) 5,251,202 (10,815,089) 4,559,019 (4,850,903)
Net assets applicable to Common
shares at the beginning
of period 299,671,399 316,969,587 184,752,934 195,568,023 95,650,839 100,501,742
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $312,451,054 $299,671,399 $190,004,136 184,752,934 $100,209,858 $ 95,650,839
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 2,167,732 $ 2,868,612 $ 1,872,368 $ 2,164,292 $ 767,619 $ 899,542
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
--------------------------------- --------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/04 6/30/04 12/31/04 6/30/04 12/31/04 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,289,028 $ 4,644,299 $ 7,700,409 $ 15,999,329 $ 7,447,223 $ 15,541,734
Net realized gain from investments 162,487 184,368 1,542,279 2,709,764 2,564,828 1,921,255
Net realized gain (loss) from
forward swaps (14,189) -- -- -- -- 1
Change in net unrealized
appreciation (depreciation)
of investments 3,755,594 (3,908,064) 10,748,948 (18,659,657) 8,218,904 (14,322,786)
Change in net unrealized
appreciation (depreciation)
of forward swaps (82,630) -- -- -- -- 1
Distributions to Preferred
Shareholders:
From net investment income (184,553) (250,791) (728,084) (958,666) (603,233) (799,594)
From accumulated net
realized gains
from investments (13,579) (18,535) (138,558) (18,006) (130,612) (131,627)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 5,912,158 651,277 19,124,994 (927,236) 17,497,110 2,208,982
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON
SHAREHOLDERS
From net investment income (2,070,016) (4,138,773) (7,443,266) (14,918,893) (7,548,763) (14,966,175)
From accumulated net realized gains
from investments (237,218) (243,881) (2,308,292) (204,569) (2,842,009) (1,741,706)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Common shareholders (2,307,234) (4,382,654) (9,751,558) (15,123,462) (10,390,772) (16,707,881)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 36,511 -- 413,637 346,805 350,285
Preferred shares offering costs -- (2,307) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 34,204 -- 413,637 346,805 350,285
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 3,604,924 (3,697,173) 9,373,436 (15,637,061) 7,453,143 (14,148,614)
Net assets applicable to Common
shares at the beginning
of period 65,918,695 69,615,868 243,287,103 258,924,164 232,455,063 246,603,677
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $69,523,619 $65,918,695 $252,660,539 $243,287,103 $239,908,206 $232,455,063
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 479,661 $ 445,202 $ 760,369 $ 1,231,310 $ 1,825,566 $ 2,530,339
====================================================================================================================================
See accompanying notes to financial statements.
64
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
-------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/04 6/30/04 12/31/04 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,660,132 $ 3,431,079 $ 1,807,666 $ 3,654,980
Net realized gain from investments 1,422,630 265,020 148,654 201,991
Net realized gain (loss) from
forward swaps (22,703) -- (31,216) --
Change in net unrealized appreciation
(depreciation) of investments 1,289,977 (2,825,573) 3,069,421 (3,455,178)
Change in net unrealized appreciation
(depreciation) of forward swaps (98,569) -- (16,705) --
Distributions to Preferred Shareholders:
From net investment income (104,249) (168,884) (169,225) (199,429)
From accumulated net realized gains
from investments (49,380) (40,997) (9,188) (49,773)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 4,097,838 660,645 4,799,407 152,591
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,613,771) (3,180,784) (1,698,505) (3,419,014)
From accumulated net realized gains
from investments (1,198,531) (570,305) (159,793) (579,472)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,812,302) (3,751,089) (1,858,298) (3,998,486)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 1,664 -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 109,745 46,581 -- 17,176
Preferred shares offering costs -- -- -- (3,394)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 109,745 48,245 -- 13,782
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,395,281 (3,042,199) 2,941,109 (3,832,113)
Net assets applicable to Common
shares at the beginning of period 50,549,162 53,591,361 55,370,325 59,202,438
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $51,944,443 $50,549,162 $58,311,434 $55,370,325
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 535,154 $ 593,042 $ (79,117) $ (19,053)
====================================================================================================================================
See accompanying notes to financial statements.
65
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.
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
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. Prices of
derivative investments 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 derivative investment each Fund may use a market
quote provided by a major broker/dealer in such investments. If it is determined
that market prices for an investment are 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 securities are valued at
amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Securities purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any securities so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At December 31, 2004,
Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY),
Pennsylvania Dividend Advantage (NXM), and Pennsylvania Dividend Advantage 2
(NVY) had outstanding when-issued purchase commitments of $4,502,600,
$4,159,277,$1,125,650 and $562,825, respectively. There were no such outstanding
purchase commitments in any of the other funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
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 applicable state
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.
66
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 on each Series is determined
every seven days, pursuant to a dutch auction process overseen by the auction
agent, and is payable weekly at the end of each rate period. The 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
================================================================================
Forward Swap Transactions
The Funds may invest in certain derivative financial instruments. The Funds' use
of forward interest rate swap transactions is intended to mitigate the negative
impact that an increase in long-term interest rates could have on Common share
net asset value. Forward interest rate swap transactions involve each Fund's
agreement with the counterparty to pay, in the future, a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment. The
amount of the payment obligation is based on the notional amount of the forward
swap contract. The Funds may close out a contract prior to the effective date at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash. 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 minimize 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 pre-determined threshold amount.
Bank Borrowings
The Funds' have an unsecured bank line of credit under which outstanding
balances bear interest at a variable rate equal to the Federal Funds Rate plus
.45% per annum. As of December 31, 2004, the Funds were paying interest at
2.7625% per year 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.
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Indemnifications
Under the Funds' organizational documents, its Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
---------------------------- ----------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 12/31/04 6/30/04 ENDED 12/31/04 6/30/04 ENDED 12/31/04 6/30/04
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 37,963 136,119 -- 26,399 -- 7,816
=======================================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
---------------------------- ----------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 12/31/04 6/30/04 ENDED 12/31/04 6/30/04 ENDED 12/31/04 6/30/04
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions -- 2,305 -- 26,180 22,344 21,918
=======================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
--------------------------- -----------------------------
SIX MONTHS YEAR ENDED SIX MONTHS YEAR ENDED
ENDED 12/31/04 6/30/04 ENDED 12/31/04 6/30/04
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 6,823 2,833 -- 1,068
=======================================================================================================================
68
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended December 31, 2004, 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 $30,460,847 $17,747,722 $12,410,330 $5,276,746
Sales and maturities 27,214,121 18,853,427 14,693,370 6,152,018
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Purchases $32,079,876 $39,226,497 $5,984,201 $4,121,099
Sales and maturities 30,792,747 39,250,503 7,446,675 3,357,903
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses on investments,
timing differences in recognizing income on taxable market discount securities
and timing differences in recognizing certain gains and losses on security
transactions.
At December 31, 2004, 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 $448,781,700 $262,991,319 $139,145,294 $97,364,848
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $363,482,852 $336,855,201 $72,634,438 $80,588,226
================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 2004, 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 $23,175,358 $16,390,549 $7,177,928 $5,283,301
Depreciation (1,350,545) (142,877) (256,473) (134,681)
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $21,824,813 $16,247,672 $6,921,455 $5,148,620
==============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $20,601,537 $21,735,227 $4,278,405 $5,487,781
Depreciation (94,426) (449,893) (3,184) --
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $20,507,111 $21,285,334 $4,275,221 $5,487,781
==============================================================================================================
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax components of undistributed net investment income and net realized gains
at June 30, 2004, the Funds' last fiscal 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 * $4,462,236 $2,976,263 $1,386,637 $780,856
Undistributed net ordinary income ** -- 2,329 -- 44
Undistributed net long-term capital gains 2,151,477 1,763,776 -- 106,865
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,462,113 $3,556,298 $822,475 $256,772
Undistributed net ordinary income ** -- 82,261 -- --
Undistributed net long-term capital gains 1,400,014 1,081,113 149,076 150,304
===============================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2004, paid on July 1, 2004.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the fiscal year ended June 30,
2004, the Funds' last fiscal year end, 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 $20,469,088 $11,842,477 $6,494,901 $4,384,953
Distributions from net ordinary income ** 41,049 4,078 -- 181,959
Distributions from net long-term capital gains 4,294,376 1,732,505 -- 80,457
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,807,419 $15,737,685 $3,347,542 $3,621,688
Distributions from net ordinary income ** 67,996 23,349 6,531 383,089
Distributions from net long-term capital gains 222,575 1,873,333 605,751 246,490
===============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
70
At June 30, 2004, the Funds' last fiscal year end, New Jersey Dividend Advantage
(NXJ) 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:
NEW JERSEY
DIVIDEND
ADVANTAGE
(NXJ)
--------------------------------------------------------------------------------
Expiration year:
2010 $278,092
2011 --
2012 617,198
--------------------------------------------------------------------------------
Total $895,290
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Trustees, effective August 1, 2004, a complex-wide
management fee structure was adopted for all funds sponsored by Nuveen Advisory
Corp. (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc.
("Nuveen") and its This fee structure separates each fund's management fee into
two components - a complex-level component, based on the aggregate amount of all
funds assets managed by the Adviser and its affiliates, and a specific
fund-level component, based only on the amount of assets within each individual
fund. This pricing structure enables Nuveen fund shareholders to benefit from
growth in the assets within each individual fund as well as from growth in the
amount of complex-wide assets managed by the Adviser and its affiliates. Under
no circumstances will this pricing structure result in a fund paying management
fees at a rate higher than would otherwise have been applicable had the
complex-wide management fee structure not been implemented. As a consequence of
this new management fee structure, the funds' effective management fees were
reduced by approximately .009% as of January 31, 2005.
Effective August 1, 2004, the annual fund-level fee, payable monthly, for each
of the Funds is based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
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
================================================================================
Effective August 1, 2004, the annual complex-level fee, payable monthly, which
is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S.,
is based on the aggregate amount of total fund assets managed as follows:
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
71
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
Each Fund paid through July 31, 2004, an annual management fee, payable monthly,
at the rates set forth below, which were based upon the average daily net assets
(including net assets attributable to Preferred shares) of each Fund as follows:
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) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
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) MANAGEMENT FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
72
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.
6. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on February 1, 2005, to shareholders of record
on January 15, 2005, 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 $.0800 $.0780 $.0785 $.0765
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0790 $.0805 $.0735
================================================================================
Adviser Merger
Effective January 1, 2005, the Adviser and its affiliate, Nuveen Institutional
Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), also
a wholly owned subsidiary of Nuveen. As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NIAC or the Adviser.
Announcement Regarding Parent Company of Adviser
After the close of trading on the New York Stock Exchange on January 31, 2005,
The St. Paul Travelers Companies, Inc. announced that it intended to explore
strategic alternatives to divest its equity stake in Nuveen.
73
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $14.69 $ .48 $ .76 $(.04) $(.01) $1.19 $(.48) $(.11) $ (.59)
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)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
2000 15.14 1.20 (.63) (.29) (.01) .27 (.92) (.04) (.96)
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 15.35 .48 .68 (.03) (.01) 1.12 (.47) (.22) (.69)
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)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
2000 14.92 1.08 (.62) (.25) -- .21 (.85) -- (.85)
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 14.59 .49 .72 (.04) -- 1.17 (.47) -- (.47)
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)
2001(a) 14.33 .14 .22 (.03) -- .33 (.14) -- (.14)
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 14.62 .51 .84 (.04) -- 1.31 (.46) (.05) (.51)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(b) 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 INVESTMENT
QUALITY (NQJ)
---------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $ -- $15.29 $15.2600 11.76% 8.18%
2004 -- 14.69 14.1900 (4.09) 1.26
2003 -- 15.65 15.9400 11.68 10.72
2002 -- 15.07 15.2200 4.19 6.56
2001 -- 15.03 15.5000 17.13 10.62
2000 -- 14.45 14.0625 (4.94) 1.94
NEW JERSEY PREMIUM
INCOME (NNJ)
---------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.78 15.8200 16.46 7.33
2004 -- 15.35 14.1900 (5.65) .85
2003 -- 16.28 16.1000 10.18 10.48
2002 -- 15.60 15.5000 7.88 7.91
2001 -- 15.27 15.1900 20.13 12.90
2000 -- 14.28 13.3750 (9.95) 1.64
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
---------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.29 15.1600 14.76 8.10
2004 -- 14.59 13.6300 (5.13) 1.20
2003 .01 15.35 15.3000 15.09 13.18
2002 -- 14.38 14.1200 (.17) 6.05
2001(a) (.13) 14.39 14.9900 .87 1.42
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
---------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.42 14.9800 12.80 9.06
2004 -- 14.62 13.7400 (4.81) 1.02
2003 -- 15.44 15.4000 9.14 13.74
2002(b) (.14) 14.46 15.0400 1.29 1.98
===================================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $312,451 1.21%* 6.27%* 1.20%* 6.28%* 6%
2004 299,671 1.21 6.64 1.21 6.64 19
2003 316,970 1.22 6.80 1.22 6.81 12
2002 304,808 1.25 7.35 1.23 7.36 22
2001 301,785 1.24 7.97 1.23 7.99 16
2000 288,810 1.22 8.27 1.21 8.28 11
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 190,004 1.19* 5.94* 1.18* 5.95* 6
2004 184,753 1.18 6.23 1.18 6.23 23
2003 195,568 1.20 6.48 1.20 6.48 13
2002 187,393 1.22 6.85 1.22 6.86 14
2001 183,451 1.25 7.14 1.24 7.15 6
2000 171,496 1.24 7.61 1.23 7.63 10
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 100,210 1.20* 5.99* .74* 6.44* 9
2004 95,651 1.20 6.26 .74 6.71 11
2003 100,502 1.19 6.56 .74 7.01 8
2002 94,130 1.24 6.76 .75 7.25 7
2001(a) 94,187 1.05* 3.65* .66* 4.03* 1
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 69,524 1.22* 6.16* .77* 6.62* 5
2004 65,919 1.25 6.41 .79 6.87 11
2003 69,616 1.23 6.53 .76 7.00 12
2002(b) 65,153 1.07* 3.86* .67* 4.25* --
====================================================================================================================================
Preferred Shares at End of Period
-------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
==============================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $162,000 $25,000 $73,218
2004 162,000 25,000 71,246
2003 162,000 25,000 73,915
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
2000 162,000 25,000 69,569
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 91,600 25,000 76,857
2004 91,600 25,000 75,424
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
2000 91,600 25,000 71,806
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 48,000 25,000 77,193
2004 48,000 25,000 74,818
2003 48,000 25,000 77,345
2002 48,000 25,000 74,026
2001(a) 48,000 25,000 74,055
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 34,500 25,000 75,379
2004 34,500 25,000 72,767
2003 34,500 25,000 75,446
2002(b) 34,500 25,000 72,213
==============================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2004.
See accompanying notes to financial statements.
74-75 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 Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $14.92 $ .47 $ .76 $(.04) $(.01) $1.18 $(.46) $(.14) $ (.60)
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)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
2000 15.33 1.25 (.83) (.29) (.02) .11 (.98) (.07) (1.05)
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 14.74 .47 .69 (.04) (.01) 1.11 (.48) (.18) (.66)
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)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
2000 14.30 1.06 (.78) (.27) -- .01 (.81) (.02) (.83)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 15.32 .50 .78 (.03) (.01) 1.24 (.49) (.36) (.85)
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)
2001(a) 14.33 .14 .35 (.03) -- .46 (.15) -- (.15)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 14.87 .49 .84 (.05) -- 1.28 (.46) (.04) (.50)
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(b) 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 INVESTMENT
QUALITY (NQP)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $ -- $15.50 $15.3300 17.45% 7.97%
2004 -- 14.92 13.5800 (9.73) (.38)
2003 -- 15.91 16.0100 11.98 14.79
2002 -- 14.70 15.1800 6.57 7.34
2001 -- 14.57 15.1300 11.99 7.75
2000 -- 14.39 14.3750 (7.39) .94
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.19 15.5600 17.38 7.60
2004 -- 14.74 13.8400 (7.22) .94
2003 -- 15.65 16.0000 15.09 12.09
2002 -- 14.83 14.7900 13.25 8.88
2001 -- 14.44 13.8700 19.04 13.25
2000 -- 13.48 12.3750 (3.87) .21
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.71 16.1400 18.31 8.19
2004 -- 15.32 14.3900 (5.95) 1.30
2003 .02 16.25 16.4600 18.13 15.95
2002 -- 14.96 14.8900 9.10 9.67
2001(a) (.16) 14.48 14.4900 (2.45) 2.06
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
-----------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) -- 15.65 14.7700 13.32 8.68
2004 -- 14.87 13.4800 (8.58) .29
2003 -- 15.90 15.8400 14.38 15.48
2002(b) (.14) 14.64 14.7400 (.73) 3.24
=====================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
------------------------------ -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===========================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) $252,661 1.23%* 6.06%* 1.22%* 6.06%* 8%
2004 243,287 1.23 6.38 1.22 6.39 17
2003 258,924 1.27 6.59 1.26 6.60 11
2002 238,926 1.31 7.42 1.30 7.44 34
2001 235,188 1.29 8.40 1.27 8.41 17
2000 231,525 1.26 8.57 1.25 8.59 8
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 239,908 1.19* 6.15* 1.19* 6.15* 11
2004 232,455 1.18 6.45 1.17 6.46 16
2003 246,604 1.20 6.76 1.19 6.77 19
2002 233,536 1.24 7.28 1.23 7.29 7
2001 227,377 1.25 7.55 1.24 7.57 10
2000 212,325 1.26 7.88 1.25 7.89 14
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 51,944 1.22* 5.84* .77* 6.29* 8
2004 50,549 1.21 6.15 .76 6.60 10
2003 53,591 1.23 6.44 .79 6.88 13
2002 49,306 1.29 7.12 .82 7.59 48
2001(a) 47,723 1.26* 3.51* .87* 3.90* --
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005(c) 58,311 1.23* 5.77* .77* 6.22* 4
2004 55,370 1.24 5.95 .78 6.40 4
2003 59,202 1.25 6.07 .78 6.53 13
2002(b) 54,481 1.09* 3.77* .70* 4.15* 8
===========================================================================================================================
Preferred Shares at End of Period
-------------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=======================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
-----------------------------------------------------------------------
Year Ended 6/30:
2005(c) $132,000 $25,000 $72,852
2004 132,000 25,000 71,077
2003 132,000 25,000 74,039
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
2000 132,000 25,000 68,849
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
-----------------------------------------------------------------------
Year Ended 6/30:
2005(c) 118,100 25,000 75,785
2004 118,100 25,000 74,207
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
2000 118,100 25,000 69,946
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
-----------------------------------------------------------------------
Year Ended 6/30:
2005(c) 25,000 25,000 76,944
2004 25,000 25,000 75,549
2003 25,000 25,000 78,591
2002 25,000 25,000 74,306
2001(a) 25,000 25,000 72,723
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
-----------------------------------------------------------------------
Year Ended 6/30:
2005(c) 28,500 25,000 76,150
2004 28,500 25,000 73,570
2003 28,500 25,000 76,932
2002(b) 28,500 25,000 72,790
=======================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common Share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2004.
See accompanying notes to financial statements.
76-77 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 EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit,nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
the dividends or distributions awaiting reinvestment. Because the market price
may increase before purchases are completed, the average purchase price per
share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
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.
78
Other Useful
INFORMATION
Effective Jan. 1, 2005, the asset management services and operations of Nuveen
Advisory Corp. (NAC) and Nuveen Institutional Advisory Corp (NIAC) became part
of Nuveen Asset Management (NAM). This internal consolidation is intended to
simplify the delivery of services to the investment management clients of Nuveen
Investments. It does not affect the investment objectives or portfolio
management of any Fund.
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
most recent 12-month period ended June 30, 2004, 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
Reference Section at 450 Fifth Street NW, Washington, D.C. 20549.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the sensitivity of a bond
or bond Fund's value to changes when interest rates change. Generally, the
longer a bond or Fund's duration, the more the price of the bond or Fund will
change as interest rates change. Leverage-adjusted duration takes into account
the leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/
TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
79
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $115 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
ESA-B-1204D
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 Schedule I 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.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
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 New Jersey Dividend Advantage Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: March 9, 2005
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: March 9, 2005
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: March 9, 2005
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* Print the name and title of each signing officer under his or her signature.