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
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Nuveen New Jersey Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: June 30
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Date of reporting period: June 30, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT June 30, 2005
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
Photo of: Man, woman and child at the beach.
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
report your Fund continued to provide you with 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 Comments and
Performance Overview sections of this report.
As I noted in my last letter to you, many market observers are wondering whether
longer-term interest rates will soon begin to rise substantially, mirroring the
rise that has taken place over the past year in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin adjusting your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future. But from our experience, we
do know that a well-balanced portfolio, structured and carefully monitored with
the help of a trusted investment professional, can be an important component in
helping you achieve your long-term financial goals. In fact, a well-diversified
portfolio may actually help to reduce your overall investment risk over the long
term. That is one reason why we believe that a municipal bond investment like
your 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 urge you to consider receiving future Fund reports and
other Fund information by e-mail and the Internet. Not only will you be able to
receive the information faster, but this also may help lower your Fund's
expenses. Sign up is quick and easy - see the inside front cover of this report
for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares in Nuveen to us or to others. Please be assured that these
transactions only affect Nuveen's corporate structure, and they do not have any
impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 15, 2005
Nuveen New Jersey and Pennsylvania Municipal Closed-End Exchange-Traded Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan reviews the economic and municipal market
environments, key investment strategies and the performance of these Nuveen
Funds. Paul, who has 14 years of investment experience, including 8 years with
Nuveen, has managed the New Jersey and Pennsylvania Funds since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
PERIOD ENDED JUNE 30, 2005?
One factor affecting nearly all fixed-income investments over this reporting
period was the general flattening of the yield curve. Between June 30, 2004, and
June 30, 2005, the Federal Reserve implemented nine quarter-point increases in
the fed funds rate, raising this short-term rate benchmark to 3.25% from 1.00%
(On August 9, 2005, after the close of this reporting period, the fed funds rate
was raised to 3.50%.) These fed funds rate increases led to increases in many
shorter-term municipal market rates over the 12-month reporting period. At the
same time, longer-term yields declined. The yield on the benchmark 10-year U.S.
Treasury note stood at 3.92% on June 30, 2005, compared with 4.59% one year
earlier. Longer-term yields in the municipal market followed a similar pattern.
The yield of the Bond Buyer 25 Revenue Bond Index, a widely-followed measure of
longer-term municipal market rates, declined by approximately 60 basis points
during this 12-month reporting period.
This rise in shorter-term rates and decline in longer-term rates generally
helped the performance of bonds with longer effective maturities and tended to
hurt the performance of securities with shorter maturities or short call dates.
Despite the increases in shorter-term rates and an upsurge in energy costs, the
economic expansion continued through the reporting period. After expanding at an
annualized rate of 4.0% in the third quarter of 2004, the U.S. Gross Domestic
Product (GDP) grew by an annualized rate of 3.8% in the fourth quarter of 2004
and 3.8% again in the first three months of 2005. (On July 29, 2005, after the
close of this reporting period, the Commerce Department said the GDP grew at an
annualized rate of 3.4% in the second quarter of the year.)
4
The year-over-year increase in the Consumer Price Index (CPI) as of June 30,
2005, was a relatively mild 2.5%. The national unemployment rate dropped to 5.0%
in June 2005, its lowest level since September 2001. Over the 12-month period,
municipal new issue supply nationwide remained strong, as $377.1 billion in new
securities came to market. The flattening yield curve increased the
attractiveness of refundings, which were 57% higher during January-June 2005
than in the same six-month period of 2004.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
New Jersey continued to benefit from its strong and diverse economic base, led
by the pharmaceutical, biotech and finance sectors. Over the 12-month period,
the state's economy outperformed the nation as a whole, adding jobs in the
financial services, business services and healthcare sectors. In June 2005, the
unemployment rate in New Jersey was 4.0%, down from 4.8% in June 2004. Despite
structural imbalances and legal challenges, preliminary numbers indicated that
New Jersey ended fiscal 2005, with a surplus of $1.2 billion to $1.5 billion,
due largely to tax revenues that exceeded expectations. As of June 30, 2005, New
Jersey's general obligation debt carried Aa3/AA- ratings with stable outlooks
from Moody's and Standard & Poor's, respectively, reflecting downgrades from Aa2
and AA, respectively in July 2004. (On July 19, 2005, after the close of this
reporting period, S&P returned New Jersey to an AA rating, citing the fiscal
2006 budget that "makes significant strides toward structural balance.") During
the 12-month period ended June 30, 2005, the issuers in the state offered $18.9
billion of new municipal debt, an increase of 47% from the previous 12-month
period, making New Jersey the fourth largest state issuer in the country.
Over this period, Pennsylvania's mature economy exhibited modest but steady
recovery, led by the education, healthcare, manufacturing and retail trade
sectors. Business services and construction also were strong, although the
old-line manufacturing sector,
5
while somewhat improved, continued to lag. Despite the healthier economy, steel
production, which is important in western Pennsylvania, remained flat. In June
2005, Pennsylvania's unemployment rate was 5.0%, down from 5.5% in June 2004. As
of June 30, 2005, Moody's and S&P rated Pennsylvania's general obligation debt
at Aa2/AA, respectively, with stable outlooks. During this 12-month reporting
period, municipal issuance in Pennsylvania jumped $16.9 billion, an increase of
24% from the previous 12-month period, ranking the commonwealth as the sixth
largest issuer in the nation.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW JERSEY AND PENNSYLVANIA FUNDS
DURING THE 12 MONTHS ENDED JUNE 30, 2005?
With many market participants anticipating higher interest rates, our focus in
the New Jersey and Pennsylvania Funds throughout this period centered on finding
bonds that we believed would add immediate value to the Funds' portfolios and
that, in our judgment, also had the potential to perform well under a variety of
future market scenarios, regardless of economic or interest rate trends.
In general, our purchase activity in these Funds emphasized bonds in the
intermediate part of the yield curve - that is, bonds that mature in 10 to 20
years. In our opinion, this part of the curve generally offered more attractive
opportunities and the best values during this period. For most of the Funds,
these purchases resulted in relatively small changes in their overall yield
curve positioning. In NNJ and NPY, which were more heavily weighted in bonds
with shorter effective maturities than the other Funds, we sold some of these
short maturity bonds and reinvested the proceeds in longer-term bonds (i.e., 20
years or longer) to bring the overall yield curve exposures of these two Funds
more closely in line with our desired positioning. Conversely, NQP had a
relatively heavy exposure to the longest part of the curve, and we sold some of
the longer maturity bonds from this Fund's portfolio and replaced them with
intermediate maturity securities.
6
For all of the Funds in this report, we continued to place an emphasis on
purchasing premium bonds - those with prices above par and coupons above current
market rates. These bonds have been in great demand recently, since historically
they have held their value better than current coupon bonds when long-term
interest rates rise.
Both NUJ and NXM had several concentrated positions in relatively lower-rated
holdings, and we worked during this period to reduce the overall risk of these
Funds by trimming these concentrated positions and adding more diversification
by purchasing other lower-rated securities. On the other hand, NNJ and NVY began
the period with relatively small positions in bonds rated BBB or lower, and we
watched the market for suitable opportunities to add lower-rated bonds to their
portfolios. These efforts in the Pennsylvania Funds were aided by an increased
number of smaller lower-rated and non-rated offerings in the commonwealth. As a
result, for several of the Funds we were able to purchase B+ rated bonds issued
by the Pennsylvania Economic Development Financing Authority (EDFA) for Reliant
Energy, non-rated bonds issued by Allegheny County for the Pittsburgh Mills
shopping mall, and non-rated bonds issued by Lebanon County for Pleasant View
Retirement Community. NXJ also had a very large concentrated position in A rated
bonds issued for Robert Wood Johnson University Hospital, which we cut by more
than 60% over this period. Although this holding had performed well for the
Fund, we believed it was prudent to trim our exposure and increase
diversification within the Fund by redeploying some of these assets among other
lower-rated credits.
As discussed in our last shareholder report, in late 2004 we began using forward
interest rate swaps, a type of derivative financial instrument, in an attempt to
hedge some of the interest rate risk in NXJ, NUJ, NXM and NVY. It is important
to note that the hedges were not used in an attempt to profit from correctly
predicting the timing and direction of interest rate movements. Instead, our
sole objective was to reduce the durations of these four Funds (and therefore
their price sensitivity to interest rate changes) without having a negative
impact on the Funds' income streams or common share dividends over the short
term. The gain or loss from each Fund's hedging activity
7
was reflected as an addition or subtraction to the Fund's net asset value (NAV)
as the market value of each hedge fluctuated. The hedges were effective in
achieving their intended goal of helping to reduce the NAV volatility of these
Funds. However, they did have negative impacts on each Fund's total return
during this period because declining long-term interest rates caused the value
of the hedges to decline as the value of each Fund's portfolio rose. All of the
hedges for these Funds were removed before the end of the reporting period
because their interest rate risk exposures and durations had achieved our
desired levels.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for comparative indexes and
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 6/30/05
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
New Jersey Funds
--------------------------------------------------------------------------------
NQJ 13.81% 8.50% 7.03%
NNJ 12.31% 8.80% 7.58%
NXJ 13.80% NA NA
NUJ 15.00% NA NA
--------------------------------------------------------------------------------
Lipper New Jersey
Municipal Debt Funds
Average2 14.41% 9.44% 7.15%
--------------------------------------------------------------------------------
Pennsylvania Funds
--------------------------------------------------------------------------------
NQP 12.67% 8.30% 6.57%
NPY 11.80% 9.30% 7.67%
NXM 13.02% NA NA
NVY 13.37% NA NA
--------------------------------------------------------------------------------
Lipper Pennsylvania
Municipal Debt Funds
Average2 12.24% 9.08% 7.30%
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index1 8.24% 6.88% 6.38%
--------------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 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.
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: 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 for each
period as follows: 1 year, 12 funds; 5 years, 9 funds; and 10 years, 7 funds.
Fund and Lipper returns assume reinvestment of dividends.
8
For the 12 months ended June 30, 2005, the total returns on NAV for all eight of
these Funds outperformed the return on the Lehman Brothers Municipal Bond Index.
NUJ also outperformed the average return for the Lipper New Jersey peer group,
and NQP, NXM and NVY beat their Lipper Pennsylvania group average. NQJ, NNJ, NXJ
and NPY trailed their respective Lipper group averages.
One of the primary factors benefiting the 12-month performance of these Funds
relative to that of the unleveraged Lehman Brothers index was the Funds' use of
financial leverage. While leveraging can add volatility to the Funds' NAVs and
share prices, especially during periods when interest rates rise, this strategy
can also provide opportunities for additional income and total returns for
common shareholders when short-term interest rates remain relatively low and
long-term rates fall or remain fairly constant.
As noted earlier, yields fell - and therefore prices rose - for many longer-term
bonds over the course of this reporting period. Quite often, these longer-term
bonds had longer durations, which meant they had relatively more price
volatility as interest rates changed. More exposure to bonds with longer
durations helped the performances of NXJ, NUJ, NXM and NVY. To a lesser extent,
this also helped the return of NQJ over this period. While we made strides in
increasing the average durations of NNJ and NPY, their relatively greater
exposure to bonds with shorter effective maturities or short embedded call
option provisions over this period hampered their performances when compared
with the other Funds in this report.
All of the Funds benefited from their allocations of lower quality bonds during
this period, since bonds rated BBB and lower generally outperformed higher
credit quality sectors as the economy improved and demand for these bonds
increased. Among the sectors making positive contributions to the Funds'
12-month returns were several that tended to have a greater number of
lower-quality bonds, such as healthcare (including hospitals), industrial
development and resource recovery. Bonds backed by the 1998 master tobacco
settlement agreement also produced solid performance during this period, as the
litigation environment improved and supply/demand dynamics drove tobacco bond
prices higher. As
9
of June 30, 2005, the New Jersey Funds held between 3% and 4% of their
portfolios in unenhanced and uninsured New Jersey tobacco bonds. (The
Pennsylvania Funds did not hold any tobacco credits.) In addition to the tobacco
bonds, the New Jersey Funds benefited from their holdings of BBB rated cigarette
tax bonds issued by the state and backed by excise taxes on cigarettes purchased
in New Jersey. NXJ and NUJ also held small positions in B rated bonds issued by
the New Jersey Economic Development Authority for Continental Airlines, which
had double-digit returns during this 12-month period.
As mentioned earlier, refinancings rose during this period, and the performances
of these Funds were boosted by several advance refundings of their holdings,
which resulted in price appreciation as well as enhanced credit quality. In New
Jersey, major refunding transactions involved bonds issued by the New Jersey
Turnpike Authority, the New Jersey Transportation Trust Fund Authority, and the
Delaware River and Bay Authority. Each of the New Jersey Funds held one or more
of these pre-refunded issues. In Pennsylvania, in addition to large refundings
by the commonwealth (Pennsylvania general obligation debt) and by Allegheny
County, a number of smaller issuers engaged in pre-refunding transactions that
benefited the Pennsylvania Funds to varying degrees.
At the same time, however, the Funds' holdings of older pre-refunded bonds
tended to underperform the general municipal market, due primarily to the
shorter effective maturities of these bonds. This was especially true in NPY.
Housing was another sector that lagged the market during this period, largely as
the result of the increased risk of prepayments and bond calls in the current
interest rate environment.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2005?
Given the current geopolitical and economic environment, we continued to believe
that maintaining strong credit quality was an important requirement. As of June
30, 2005, all eight of these Funds continued to offer excellent credit quality,
with allocations of bonds
10
rated AAA/U.S. Guaranteed and AA ranging from 68% in NUJ to 73% in NXM, 78% in
NXJ, 82% in NQJ and NVY, 83% in NPY, 84% in NNJ and 87% in NQP.
As of June 30, 2005, potential call exposure for the period July 2005 through
the end of 2006 ranged from 1% in NVY to 3% in NNJ and NXJ, 4% in NUJ, NQP and
NXM, 6% in NQJ and 8% in NPY. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
11
Dividend and Share Price
INFORMATION
All eight of these Funds use leverage to provide opportunities for additional
income for common shareholders. The extent of this benefit is tied in part to
the short-term rates the Funds pay their MuniPreferred(R) shareholders. During
periods of low short-term rates, leveraged Funds generally pay lower dividends
to MuniPreferred shareholders, which can leave more earnings to support common
share dividends. However, when short-term interest rates rise, as they did
during this reporting period, the Funds' borrowing costs also rise. While
leveraging can still provide benefits for common shareholders as short-term
rates rise, the extent of the benefit may be less. Over the 12-month period
ended June 30, 2005, NXM experienced one dividend cut, while the dividends of
NQJ, NNJ, NXJ, NQP and NPY were cut twice and NVY had three reductions in its
dividend. The dividend of NUJ remained unchanged during this period.
In addition, due to normal portfolio management activity, common shareholders of
the following Funds received capital gains and/or net ordinary income
distributions at the end of December 2004 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQJ $0.1097 --
--------------------------------------------------------------------------------
NNJ $0.2176 $0.0003
--------------------------------------------------------------------------------
NUJ $0.0526 --
--------------------------------------------------------------------------------
NQP $0.1412 $0.0010
--------------------------------------------------------------------------------
NPY $0.1791 $0.0055
--------------------------------------------------------------------------------
NXM $0.3631 $0.0060
--------------------------------------------------------------------------------
NVY $0.0429 --
--------------------------------------------------------------------------------
The relatively large distributions from several of these Funds represented
important parts of the Funds' total returns for this period. Generally, these
distributions were generated by bond calls or by sales of appreciated securities
that occurred in the course of normal portfolio management activities. The
proceeds of these calls or sales then were reinvested in bonds paying lower,
current interest rates. On balance, this had a slight negative impact on these
Funds' earning power per share and was a minor factor in the dividend reductions
noted above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund
12
may pay dividends at a rate that may be more or less than the amount of net
investment income actually earned by the Fund during the period. If a Fund has
cumulatively earned more than it has paid in dividends, it holds the excess in
reserve as undistributed net investment income (UNII) as part of the Fund's NAV.
Conversely, if a Fund has cumulatively paid dividends in excess of its earnings,
the excess constitutes negative UNII that is likewise reflected in the Fund's
NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of June 30, 2005, NQJ, NNJ, NXJ, NUJ, NPY and NXM
all had positive UNII balances for both financial statement and income tax
purposes. NQP and NVY had negative UNII balances for financial statement
purposes and positive UNII balances for income tax purposes.
At the end of the reporting period, the Funds' shares were trading at premiums
or discounts to their NAVs as shown in the accompanying chart:
6/30/05 12-MONTH AVERAGE
PREMIUM/DISCOUNT DISCOUNT
--------------------------------------------------------------------------------
NQJ -2.31% -0.53%
NNJ -1.81% -2.79%
NXJ -1.60% -2.44%
NUJ +0.70% -2.71%
NQP -3.62% -4.05%
NPY -1.04% -0.29%
NXM +1.32% -0.92%
NVY -6.23% -5.30%
--------------------------------------------------------------------------------
13
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 77%
AA 5%
A 4%
BBB 11%
BB or Lower 2%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.08
Aug 0.08
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.077
Apr 0.077
May 0.077
Jun 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.48
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
15.26
15.37
15.33
15.46
15.44
15.52
15.6
15.52
15.51
15.4
15.37
15.46
15.45
15.51
15.38
15.44
15.4
15.4
15.37
15.66
15.73
15.95
15.99
15.78
15.83
15.8
15.95
15.9
15.93
15.86
15.83
15.7
15.63
15.51
15.43
15.6
15.64
15.5
15.63
15.5
15.55
15.6
15.64
15.72
15.75
15.75
15.49
15.39
15.29
15.32
15.1
15.13
15.04
15.05
14.97
14.92
14.64
14.69
14.58
14.54
14.69
14.75
14.82
14.77
14.72
14.75
14.84
14.88
14.9
14.92
14.8
14.82
14.75
14.92
14.88
14.79
14.73
14.81
14.8
14.85
14.98
15.06
14.96
14.96
14.96
14.98
15.08
15.08
15
14.98
15.01
14.91
14.95
15
15.09
15.05
15.09
15.11
15.05
15.06
15.08
15.07
15.07
15.15
15.4
15.38
15.4
15.35
15.27
15.25
15.25
15.21
15.17
15.01
15.09
15.09
15.14
15.21
15.16
15.18
15.22
15.24
15.2
15.27
15.26
15.31
6/30/05 15.25
FUND SNAPSHOT
------------------------------------
Common Share Price $15.25
------------------------------------
Common Share
Net Asset Value $15.61
------------------------------------
Premium/(Discount) to NAV -2.31%
------------------------------------
Market Yield 5.74%
------------------------------------
Taxable-Equivalent Yield1 8.50%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $319,083
------------------------------------
Average Effective
Maturity on Securities (Years) 16.72
------------------------------------
Leverage-Adjusted Duration 8.01
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 15.13% 13.81%
------------------------------------
5-Year 8.52% 8.50%
------------------------------------
10-Year 6.96% 7.03%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.2%
------------------------------------
U.S. Guaranteed 16.5%
------------------------------------
Transportation 15.6%
------------------------------------
Education and Civic
Organizations 12.2%
------------------------------------
Healthcare 12.0%
------------------------------------
Tax Obligation/General 7.7%
------------------------------------
Consumer Staples 3.8%
------------------------------------
Water and Sewer 3.7%
------------------------------------
Other 11.3%
------------------------------------
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 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.1097 per share.
14
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 79%
AA 5%
A 5%
BBB 9%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.078
Aug 0.078
Sep 0.078
Oct 0.078
Nov 0.078
Dec 0.078
Jan 0.078
Feb 0.078
Mar 0.075
Apr 0.075
May 0.075
Jun 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.84
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
15.82
15.8
15.7
15.64
15.59
15.54
15.67
15.74
15.73
15.71
15.71
15.68
15.85
15.87
15.88
15.81
15.92
15.93
15.86
15.84
15.85
15.99
16.1
16.04
16.14
16.06
16.12
16.13
16.25
15.77
15.81
15.67
15.6
15.55
15.48
15.45
15.51
15.79
15.75
15.7
15.68
15.71
15.7
15.69
15.66
15.7
15.57
15.42
15.35
15.4
15.21
15.2
15.39
15.24
15.21
14.91
14.85
14.96
14.86
14.85
14.72
14.96
15.19
15.1
15.05
15
14.99
14.9
14.92
15.12
14.98
15.04
14.96
15.03
15.1
15.07
15.07
15.08
15.28
15.3
15.49
15.54
15.55
15.55
15.55
15.67
15.51
15.52
15.34
15.4
15.41
15.36
15.39
15.38
15.39
15.39
15.54
15.58
15.5
15.52
15.45
15.44
15.48
15.56
15.71
15.81
15.7
15.71
15.67
15.64
15.58
15.62
15.62
15.56
15.52
15.51
15.53
15.54
15.48
15.5
15.59
15.6
15.62
15.59
15.52
15.51
6/30/05 15.76
FUND SNAPSHOT
------------------------------------
Common Share Price $15.76
------------------------------------
Common Share
Net Asset Value $16.05
------------------------------------
Premium/(Discount) to NAV -1.81%
------------------------------------
Market Yield 5.41%
------------------------------------
Taxable-Equivalent Yield1 8.01%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $193,182
------------------------------------
Average Effective
Maturity on Securities (Years) 15.71
------------------------------------
Leverage-Adjusted Duration 8.43
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 19.43% 12.31%
------------------------------------
5-Year 9.97% 8.80%
------------------------------------
10-Year 8.07% 7.58%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.4%
------------------------------------
Transportation 16.2%
------------------------------------
U.S. Guaranteed 12.1%
------------------------------------
Education and Civic
Organizations 11.6%
------------------------------------
Tax Obligation/General 10.7%
------------------------------------
Healthcare 9.2%
------------------------------------
Water and Sewer 7.1%
------------------------------------
Other 10.7%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.2179 per share.
15
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 76%
AA 2%
A 8%
BBB 10%
BB or Lower 3%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.0785
Aug 0.0785
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0755
Apr 0.0755
May 0.0755
Jun 0.0715
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.2
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
15.16
15.14
15.23
15.15
15.05
15.23
15.22
15.03
15.09
15.35
15.35
15.23
15.09
15.23
15.43
15.54
15.55
15.58
15.55
15.6
15.55
15.9
15.61
15.43
15.62
15.77
15.75
15.8
15.88
15.69
15.7
15.74
15.68
15.41
15.11
15
15.17
15.21
15.4
15.12
15.23
15.26
15.46
15.5
15.54
15.27
15.08
15
14.91
15.08
14.7
14.77
14.8
14.83
14.91
14.9
14.1
14.2
13.85
13.75
13.96
14.09
14.15
14.17
14.32
14.42
14.4
14.31
14.36
14.37
14.3
14.36
14.36
14.43
14.52
14.44
14.34
14.38
14.43
14.82
14.7
14.86
14.96
14.96
14.63
14.65
14.65
14.76
14.7
15
14.94
14.75
14.92
14.92
15.06
14.96
14.85
14.98
14.9
14.99
14.93
15.01
15.25
15.3
15.3
15.25
15.15
15.16
15.05
15.22
15.12
14.87
14.9
14.82
14.84
15
14.94
14.82
15.14
15.06
15.33
15.1
15.07
15.23
15.13
15.12
6/30/05 15.38
FUND SNAPSHOT
------------------------------------
Common Share Price $15.38
------------------------------------
Common Share
Net Asset Value $15.63
------------------------------------
Premium/(Discount) to NAV -1.60%
------------------------------------
Market Yield 5.58%
------------------------------------
Taxable-Equivalent Yield1 8.27%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $102,502
------------------------------------
Average Effective
Maturity on Securities (Years) 17.56
------------------------------------
Leverage-Adjusted Duration 8.16
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 19.97% 13.80%
------------------------------------
Since
Inception 6.71% 8.25%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
U.S. Guaranteed 17.7%
------------------------------------
Transportation 16.4%
------------------------------------
Tax Obligation/Limited 15.3%
------------------------------------
Water and Sewer 15.0%
------------------------------------
Education and Civic
Organizations 12.6%
------------------------------------
Healthcare 11.0%
------------------------------------
Other 12.0%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
16
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 66%
AA 2%
A 12%
BBB 15%
BB or Lower 3%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.02
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
14.98
15.2
15.04
15.1
15.1
15.08
15.13
15.24
15.15
15
14.99
14.95
15.21
15.12
15
15
14.93
15
14.95
15.21
15.46
15.73
15.65
15.69
15.56
15.53
15.57
15.75
15.87
15.8
15.95
15.91
15.7
15.39
14.97
14.91
15.03
15.2
15.46
15.31
15.3
15.45
15.5
15.57
15.65
15.61
15.52
15.41
15.29
15.29
14.9
14.86
14.82
14.75
14.46
14.36
13.89
14.05
14.08
14.05
14.18
14.22
14.29
14.29
14.18
14.11
14.23
14.26
14.34
14.52
14.5
14.57
14.62
14.67
14.9
14.74
14.55
14.6
14.47
14.44
14.55
14.7
14.74
14.74
14.82
15.18
15.1
15.3
15.09
15.13
15.12
15.08
14.99
14.96
15.21
15.06
14.96
14.93
15.03
15.09
15.02
15.04
15.14
15.47
15.78
15.8
15.7
15.57
15.58
15.66
15.79
15.59
15.77
15.79
15.79
15.9
15.83
15.65
15.65
15.8
15.76
15.62
15.64
15.61
15.61
15.47
6/30/05 15.9
FUND SNAPSHOT
------------------------------------
Common Share Price $15.90
------------------------------------
Common Share
Net Asset Value $15.79
------------------------------------
Premium/(Discount) to NAV 0.70%
------------------------------------
Market Yield 5.77%
------------------------------------
Taxable-Equivalent Yield1 8.55%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $71,231
------------------------------------
Average Effective
Maturity on Securities (Years) 18.11
------------------------------------
Leverage-Adjusted Duration 8.24
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 23.39% 15.00%
------------------------------------
Since
Inception 8.31% 9.56%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Healthcare 16.2%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
U.S. Guaranteed 15.2%
------------------------------------
Transportation 14.8%
------------------------------------
Education and Civic
Organizations 10.2%
------------------------------------
Utilities 7.3%
------------------------------------
Long-Term Care 5.2%
------------------------------------
Consumer Staples 4.0%
------------------------------------
Other 11.2%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0526 per share.
17
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 72%
AA 15%
A 7%
BBB 5%
NR 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.072
Apr 0.072
May 0.072
Jun 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.4
15.41
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
15.33
15.32
15.38
15.47
15.46
15.47
15.51
15.55
15.51
15.47
15.62
15.5
15.58
15.54
15.45
15.43
15.42
15.48
15.42
15.44
15.47
15.5
15.49
15.55
15.58
15.56
15.68
15.92
15.78
15.57
15.72
15.5
15.51
15.47
15.51
15.25
15.24
15.33
15.36
15.41
15.6
15.55
15.58
15.76
15.8
15.7
15.49
15.55
15.29
15.01
14.85
14.8
14.75
14.7
14.64
14.19
13.86
14.15
13.9
13.91
14.02
14.16
14.27
14.45
14.28
14.26
14.27
14.32
14.34
14.38
14.24
14.28
14.3
14.36
14.44
14.42
14.28
14.36
14.5
14.41
14.42
14.49
14.53
14.53
14.48
14.5
14.57
14.67
14.67
14.78
14.83
14.79
14.82
14.78
14.76
14.82
14.88
14.92
14.93
14.87
14.95
14.89
14.97
14.98
15.13
15.16
15.12
15.04
15
15
15.02
14.85
14.86
14.92
14.72
14.7
14.71
14.8
14.69
14.7
14.74
14.81
14.84
14.89
14.91
14.91
6/30/05 15.16
FUND SNAPSHOT
------------------------------------
Common Share Price $15.16
------------------------------------
Common Share
Net Asset Value $15.73
------------------------------------
Premium/(Discount) to NAV -3.62%
------------------------------------
Market Yield 5.30%
------------------------------------
Taxable-Equivalent Yield1 7.57%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $256,365
------------------------------------
Average Effective
Maturity on Securities (Years) 15.82
------------------------------------
Leverage-Adjusted Duration 8.27
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 19.53% 12.67%
------------------------------------
5-Year 7.59% 8.30%
------------------------------------
10-Year 6.31% 6.57%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 17.0%
------------------------------------
Education and Civic
Organizations 16.3%
------------------------------------
Tax Obligation/Limited 15.4%
------------------------------------
U.S. Guaranteed 12.2%
------------------------------------
Water and Sewer 11.6%
------------------------------------
Utilities 7.3%
------------------------------------
Healthcare 6.5%
------------------------------------
Transportation 5.7%
------------------------------------
Other 8.0%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1422 per share.
18
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 78%
AA 5%
A 5%
BBB 9%
BB or Lower 1%
NR 2%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.075
Apr 0.075
May 0.075
Jun 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.48
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
15.56
15.54
15.37
15.28
15.44
15.4
15.36
15.38
15.46
15.48
15.66
15.46
15.48
15.56
15.6
15.78
15.85
15.85
15.76
15.83
15.69
15.77
15.67
15.8
15.84
15.9
15.83
15.89
15.82
15.76
15.7
15.56
15.68
15.66
15.62
15.47
15.7
15.81
15.79
15.85
15.95
15.9
16
16.02
15.92
15.71
15.65
15.48
15.52
15.45
15.14
15.22
15.34
15.26
15.2
15.19
15.11
15.3
14.93
14.9
15
14.8
14.9
14.87
14.83
14.84
14.83
14.9
15.13
15.06
15.06
15
14.96
14.86
14.86
14.88
14.87
14.92
14.88
14.85
14.94
15.21
15.05
15.05
15.05
15
14.95
15.01
15.06
15.1
15.21
15.08
15.16
15.12
15.1
15.09
15.07
15.13
15.14
15.12
15.16
15.19
15.24
15.22
15.33
15.37
15.54
15.48
15.4
15.35
15.38
15.39
15.32
15.3
15.2
15.2
15.3
15.25
15.15
15.02
15.15
15.22
15.21
15.13
15.16
15.19
6/30/05 15.16
FUND SNAPSHOT
------------------------------------
Common Share Price $15.16
------------------------------------
Common Share
Net Asset Value $15.32
------------------------------------
Premium/(Discount) to NAV -1.04%
------------------------------------
Market Yield 5.62%
------------------------------------
Taxable-Equivalent Yield1 8.03%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $242,373
------------------------------------
Average Effective
Maturity on Securities (Years) 17.23
------------------------------------
Leverage-Adjusted Duration 7.90
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 17.79% 11.80%
------------------------------------
5-Year 11.13% 9.30%
------------------------------------
10-Year 8.17% 7.67%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 21.4%
------------------------------------
Healthcare 13.1%
------------------------------------
Education and Civic
Organizations 11.6%
------------------------------------
Transportation 10.6%
------------------------------------
Utilities 10.6%
------------------------------------
Water and Sewer 10.0%
------------------------------------
Tax Obligation/Limited 7.1%
------------------------------------
U.S. Guaranteed 5.1%
------------------------------------
Other 10.5%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1846 per share.
19
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 58%
AA 15%
A 14%
BBB 7%
BB or Lower 1%
NR 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0805
Aug 0.0805
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0775
Apr 0.0775
May 0.0775
Jun 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
15.29
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
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
16.14
16.06
16.06
16.38
16.38
16.38
16.13
15.97
15.94
15.92
16.36
16.5
16.42
16.32
16.15
16.15
16.1
16.2
16.14
16.14
16.46
16.27
16.3
16.4
16.5
16.5
16.6
16.75
16.67
16.67
16.35
16.18
16.06
16.08
16.08
15.84
15.76
15.78
15.79
15.78
16.18
16.19
16.24
16.36
16.35
16.28
16.21
16.43
16.2
16.08
16.01
15.82
15.51
15.5
15.53
15.5
15.44
14.89
14.88
14.78
14.78
15.02
14.97
14.9
15.25
15.36
15.15
15.16
15.13
15.13
15.08
15.2
15.46
15.66
15.56
15.49
15.41
15.45
15.32
15.33
15.65
15.83
15.87
15.87
16.55
16.38
16.32
16.06
16.38
16.3
16.33
16.3
16.3
16.29
16.12
15.75
15.72
15.72
15.7
15.74
15.67
15.69
15.61
15.69
15.73
16.2
16.25
16.25
16.17
16.19
16.14
16.12
16.19
16.18
16.18
16.12
16.15
15.86
15.99
15.99
15.99
15.99
16.1
16.18
16.12
16.02
6/30/05 16.14
FUND SNAPSHOT
------------------------------------
Common Share Price $16.14
------------------------------------
Common Share
Net Asset Value $15.93
------------------------------------
Premium/(Discount) to NAV 1.32%
------------------------------------
Market Yield 5.76%
------------------------------------
Taxable-Equivalent Yield1 8.23%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $52,712
------------------------------------
Average Effective
Maturity on Securities (Years) 16.76
------------------------------------
Leverage-Adjusted Duration 8.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 21.84% 13.02%
------------------------------------
Since
Inception 8.94% 9.72%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 19.9%
------------------------------------
Tax Obligation/General 19.5%
------------------------------------
Healthcare 12.2%
------------------------------------
Long-Term Care 9.0%
------------------------------------
Utilities 8.8%
------------------------------------
Transportation 7.0%
------------------------------------
Tax Obligation/Limited 6.8%
------------------------------------
Industrials 4.6%
------------------------------------
Other 12.2%
------------------------------------
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 30%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.3691 per share.
20
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of June 30, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 60%
AA 22%
A 4%
BBB 8%
BB or Lower 1%
NR 5%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.0705
Apr 0.0705
May 0.0705
Jun 0.067
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/04 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
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
14.77
14.79
14.9
14.87
14.92
14.92
15.01
15.13
15.05
15.19
15.18
15.28
15.6
15.53
15.43
15.63
15.5
15.43
15.4
15.32
15.4
15.56
15.73
16.2
16.11
16.1
15.9
15.82
15.64
15.58
15.58
15.63
15.53
15.41
15.3
15.06
15.06
15.16
15.16
14.9
14.91
14.91
14.98
15.1
15.28
15.35
15.21
15.21
14.9
14.64
14.65
14.45
14.4
14.34
14.1
14.06
13.73
13.7
13.67
13.71
13.8
14.05
14.1
13.97
13.99
14.11
14.17
14.17
14.14
14.1
14.07
14.17
14.21
14.23
14.46
14.4
14.25
14.45
14.41
14.42
14.47
14.53
14.67
14.67
14.67
14.68
14.7
14.72
14.79
14.75
14.64
14.71
14.64
14.68
14.77
14.8
14.75
14.75
14.83
14.74
14.86
14.93
14.9
14.9
15
15.15
15.2
14.88
14.92
14.9
14.84
14.84
14.78
14.8
14.68
14.66
14.7
14.67
14.74
14.7
14.73
14.75
14.98
14.85
14.78
14.76
6/30/05 14.9
FUND SNAPSHOT
------------------------------------
Common Share Price $14.90
------------------------------------
Common Share
Net Asset Value $15.89
------------------------------------
Premium/(Discount) to NAV -6.23%
------------------------------------
Market Yield 5.40%
------------------------------------
Taxable-Equivalent Yield1 7.71%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $59,174
------------------------------------
Average Effective
Maturity on Securities (Years) 15.88
------------------------------------
Leverage-Adjusted Duration 8.50
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 17.63% 13.37%
------------------------------------
Since
Inception 6.30% 9.75%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 25.5%
------------------------------------
Education and Civic
Organizations 15.5%
------------------------------------
U.S. Guaranteed 13.5%
------------------------------------
Tax Obligation General 11.4%
------------------------------------
Healthcare 8.8%
------------------------------------
Utilities 6.5%
------------------------------------
Water and Sewer 6.4%
------------------------------------
Other 12.4%
------------------------------------
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the taxable-equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0429 per share.
21
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New
Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage
Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend
Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal
Fund 2, as of June 30, 2005, and the related statements of operations for the
year then ended, the statements of changes in net assets for each of the two
years in the period then ended, and the financial highlights for the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of June 30, 2005, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen
Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium
Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund
and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 at June 30, 2005,
and the results of their operations for the year then ended, the changes in
their net assets for each of the two years in the period then ended, and their
financial highlights for the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
August 12, 2005
22
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.1% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 400 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 402,104
400 5.125%, 1/01/37 1/15 at 100.00 Baa3 403,596
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.7% (3.8% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
8,450 5.750%, 6/01/32 6/12 at 100.00 BBB 8,791,465
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 3,144,930
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 3,426,400
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,831,824
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.3% (12.2% OF TOTAL INVESTMENTS)
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,667,975
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,010 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 3,094,912
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17
(Alternative Minimum Tax) - MBIA Insured
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,076,520
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
St. Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 1,003,910
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,735,668
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,048,270
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 1,085,550
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,111,395
1,050 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 1,116,549
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 2,109,860
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 2,066,340
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 1,663,065
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 1,425,424
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 1,633,035
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 1,646,877
Ramapo College, Series 2004H, 5.000%, 7/01/16 -
FGIC Insured
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
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 $ 2,490,444
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,368,511
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,647,322
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,066,571
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 668,456
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 530,405
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
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 1,107,250
1,195 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 1,298,248
1,875 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 2,011,913
3,905 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 4,035,388
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 4,396,099
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,111,959
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,487,409
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,243,325
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,466,600
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.7% (1.1% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 5,519,450
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.1% (12.0% OF TOTAL INVESTMENTS)
1,000 Camden County Improvement Authority, New Jersey, 8/14 at 100.00 BBB 1,072,910
Revenue 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- 1,571,400
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 5,994,605
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 A2 3,199,290
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,283,975
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 8,567,007
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 3,104,940
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 4,188,223
2,000 5.750%, 7/01/31 7/10 at 100.00 A 2,175,700
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,469,429
Revenue Refunding Bonds, St. Barnabas Healthcare System -
West Hudson Hospital Obligated Group, Series 1998A,
5.000%, 7/01/23 - MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA $ 5,460,638
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+ 2,250,660
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 3,771,530
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 1,819,268
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
2,600 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 2,715,726
Revenue Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 (WI, settling 7/14/05) - RAAI Insured
3,860 Newark, New Jersey, GNMA Collateralized Healthcare 6/12 at 102.00 Aaa 4,169,032
Facility Revenue Bonds, New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.7% (1.8% OF TOTAL INVESTMENTS)
995 Long Branch Housing Finance Corporation New Jersey, 10/05 at 100.00 N/R 1,000,811
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, 5/06 at 102.00 AAA 4,643,325
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 2,937,873
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.6% OF TOTAL INVESTMENTS)
3,545 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 3,678,540
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
3,280 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 3,303,911
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 (Alternative Minimum Tax) - MBIA Insured
2,680 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,777,284
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,675 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,775,607
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 1,050,080
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,576,905
2,910 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 3,147,747
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 1,203,266
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, 11/05 at 100.00 AA- 6,354,688
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 - 11.1% (7.4% 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 1,809,786
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,729,943
1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,056,930
Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
1,735 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,889,606
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA $ 3,366,390
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
1,420 Lenape Regional High School District, Burlington County, No Opt. Call Aaa 1,578,756
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 5,038,835
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,590,315
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA- 5,698,150
6.000%, 2/15/11
1,200 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 1,371,420
5.250%, 7/15/16 - AMBAC Insured
Sayreville School District, Middlesex County, New Jersey,
General Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,567,726
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,646,398
1,285 Tinton Falls Board of Education, Monmouth County, 10/14 at 100.00 Aaa 1,430,552
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 10/15/15 - FSA Insured
1,745 Washington Township Board of Education, Mercer County, 1/16 at 100.00 Aaa 1,916,219
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 1/01/19 - FSA Insured
West Deptford Township, New Jersey, General Obligation
Bonds, Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,871,219
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 2,000,250
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.0% (17.2% OF TOTAL INVESTMENTS)
3,320 Atlantic County Improvement Authority, New Jersey, 11/10 at 100.00 Aaa 3,618,368
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 1,631,298
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,992,630
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,211,820
2,225 Essex County Improvement Authority, New Jersey, 10/13 at 100.00 Aaa 2,366,265
General 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 11,044,700
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 2,222,040
3,000 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 3,272,910
3,365 11/01/21 - FSA Insured 11/13 at 100.00 AAA 3,671,114
Hudson County Improvement Authority, New Jersey, County
Secured Lease Revenue Bonds, County Services Building
Project, Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,169,505
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,696,599
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 1,914,570
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 2,004,774
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,091,770
1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,588,561
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 1,119,320
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,232,620
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,114,050
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 A+ $ 2,631,275
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
1,925 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AAA 2,129,377
Construction Bonds, Series 2005N-1, 5.000%, 9/01/17 -
AMBAC Insured
7,000 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AAA 7,872,830
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
4,000 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 4,308,680
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
4,815 New Jersey Economic Development Authority, School Facility No Opt. Call AAA 5,462,329
Construction Bonds, Series 2005K, 5.250%, 12/15/14 -
FGIC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,215,460
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
3,350 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 3,767,611
Transportation System Bonds, Series 2004B,
5.250%, 12/15/13 - FGIC Insured
5,275 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 5,932,581
Transportation System Bonds, Series 2005B,
5.250%, 12/15/13 - MBIA Insured
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,355,338
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.4% (15.6% OF TOTAL INVESTMENTS)
2,250 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,479,320
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and
New Jersey, Revenue Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 2,162,580
1,300 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,403,532
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,154,472
Revenue Refunding Bonds, Port District Project,
Series 2001A, 5.200%, 1/01/27 - FSA Insured
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,846,850
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue 11/05 at 100.00 CCC 2,482,830
Bonds, American Airlines Inc., Series 1991,
7.100%, 11/01/31 (Alternative Minimum Tax)
4,660 New Jersey Turnpike Authority, Revenue Bonds, 1/15 at 100.00 AAA 4,989,229
Series 2005C, 5.000%, 1/01/35 - FSA Insured
9,500 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AAA 10,334,955
Series 2003A, 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 802,243
215 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 262,257
1,250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 1,369,700
Terminal 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 2,421,223
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,299,600
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 4,198,530
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 7,115,434
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 12,842,880
7,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 7,540,960
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 (DD, settling 7/1/05) - XLCA Insured
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A- 2,103,780
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
27
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 24.9% (16.5% OF TOTAL INVESTMENTS)
$ 4,105 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA $ 4,359,920
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
3,275 Delaware River and Bay Authority, Delaware and 1/10 at 101.00 AAA 3,679,594
New Jersey, Revenue Bonds, Series 2000A,
5.750%, 1/01/29 (Pre-refunded to 1/01/10) - AMBAC Insured
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,429,100
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 Economic Development Authority, School Facilities
Construction Bonds, Series 2002C:
4,000 5.000%, 6/15/15 (Pre-refunded to 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 4,443,000
5,000 5.000%, 6/15/20 (Pre-refunded to 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 5,553,750
3,000 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,395,040
Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 (Pre-refunded to 6/15/13) - FGIC Insured
3,600 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 4,014,504
Facilities Construction Bonds, Series 2004G,
5.000%, 9/01/17 (Pre-refunded to 9/01/13) - MBIA Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
3,000 5.500%, 6/15/17 (Pre-refunded to 6/15/13) 6/13 at 100.00 AAA 3,447,030
3,000 5.500%, 6/15/18 (Pre-refunded to 6/15/13) 6/13 at 100.00 AAA 3,447,030
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 6,264,273
System Bonds, Series 2001B, 5.000%, 12/15/21
(Pre-refunded to 12/15/11) - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
10,000 5.500%, 1/01/27 (Pre-refunded to 1/01/10) 1/10 at 100.00 A*** 11,030,100
2,000 5.500%, 1/01/30 (Pre-refunded to 1/01/10) - MBIA Insured 1/10 at 100.00 AAA 2,210,460
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
2,505 6.500%, 1/01/16 No Opt. Call AAA 3,025,339
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 917,867
1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,363,701
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 8,308,500
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
2,000 West Orange Board of Education, Essex County, 10/09 at 101.00 Aaa 2,258,400
New Jersey, Certificates of Participation, Series 1999,
6.000%, 10/01/24 (Pre-refunded to 10/01/09) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.4% (2.9% OF TOTAL INVESTMENTS)
2,205 Camden County Pollution Control Financing Authority, 12/05 at 100.00 B2 2,216,223
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, 12/05 at 100.00 B2 3,517,815
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, 12/13 at 100.00 AAA 2,265,843
Solid Waste Revenue Bonds, Regional Sludge Project,
Series 2003, 5.000%, 12/15/14 - FGIC Insured
400 New Jersey Economic Development Authority, Pollution 7/05 at 101.00 Baa3 413,320
Control Revenue Bonds, Jersey Central Power and Light
Company, Series 1985, 7.100%, 7/01/15
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,670,250
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 3,083,850
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 - 5.5% (3.7% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,174,900
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 7,816,423
Facilities Revenue Bonds, American Water Company,
Series 1996, 6.000%, 5/01/36 (Alternative Minimum Tax) -
FGIC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
North Hudson Sewerage Authority, New Jersey, Sewerage
Revenue Refunding Bonds, Series 2002A:
$ 3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa $ 3,323,880
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,319,920
------------------------------------------------------------------------------------------------------------------------------------
$ 443,383 Total Long-Term Investments (cost $452,829,495) - 150.2% 479,160,686
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,600 Puerto Rico Government Development Bank, Adjustable A-1 1,600,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 2.140%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,600 Total Short-Term Investments (cost $1,600,000) 1,600,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $454,429,495) - 150.7% 480,760,686
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.1% 321,942
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 319,082,628
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 240 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 241,262
240 5.125%, 1/01/37 1/15 at 100.00 Baa3 242,158
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.0% (3.4% OF TOTAL INVESTMENTS)
3,240 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,370,928
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 3,769,040
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,427,278
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.0% (11.6% OF TOTAL INVESTMENTS)
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
2,190 5.700%, 6/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 2,242,232
1,455 6.000%, 6/01/15 (Alternative Minimum Tax) - MBIA Insured 6/10 at 101.00 AAA 1,494,430
1,125 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,211,085
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
2,960 New Jersey Economic Development Authority, Revenue No Opt. Call N/R 3,539,509
Bonds, Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18
330 New Jersey Educational Facilities Authority, Revenue Bonds, 7/05 at 100.00 A- 331,059
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 516,585
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 1,096,480
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 1,370,284
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 1,794,750
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,118,385
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 1,498,626
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 787,437
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,613,706
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,128,589
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 328,749
Rider University, Series 2004A, 5.500%, 7/01/23 -
RAAI Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 318,243
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 1,002,061
400 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 434,560
275 New Jersey Higher Education Assistance Authority, Student 7/05 at 100.00 A+ 275,726
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,410 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA $ 2,506,954
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
2,000 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,132,960
Series 2004E, 5.000%, 5/01/34 - FGIC Insured
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,198,826
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 1,063,420
Certificates of Participation, University Housing
Associates, LLC, Series 2004, 5.000%, 6/15/29 -
MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AAA 2,909,583
Revenue Bonds, Series 2002A, 5.000%, 12/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,655,835
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 13.6% (9.2% OF TOTAL INVESTMENTS)
620 Camden County Improvement Authority, New Jersey, 8/14 at 100.00 BBB 665,204
Revenue 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 A2 3,761,240
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,785,650
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 1,231,384
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 3,269,850
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 1,940,588
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- 619,125
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 3,131,855
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 2,215,040
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 1,973,286
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 1,367,142
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured
1,500 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 1,566,765
Revenue Bonds, RWJ Health Care Corporation,
Series 2005B, 5.000%, 7/01/35 (WI, settling 7/14/05) -
RAAI Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical 12/05 at 102.00 Baa1 2,720,941
and Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American
Home Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 345,987
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, 10/05 at 100.00 N/R 598,475
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%,
10/01/11
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,418,110
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
35 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 35,438
Home Buyer Program Revenue Bonds, Series 1995O,
6.300%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured
31
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
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 $ 2,043,855
535 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 555,153
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 513,450
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.4% (0.3% OF TOTAL INVESTMENTS)
750 New Jersey Economic Development Authority, 11/14 at 100.00 N/R 796,050
First Mortgage Revenue Bonds, Winchester Gardens at
Wards Homestead, Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.0% (10.2% OF TOTAL INVESTMENTS)
2,075 Egg Harbor Township School District, Atlantic County, 4/15 at 100.00 Aaa 2,229,795
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 4/01/27 - MBIA Insured
2,460 Freehold Regional High School District, Monmouth No Opt. Call AAA 2,791,952
County 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 9/11 at 102.00 AAA 1,633,665
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
1,170 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 1,312,892
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA 2,137,100
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- 2,940,245
1,560 6.000%, 2/15/13 No Opt. Call AA- 1,819,865
720 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 822,852
5.250%, 7/15/16 - AMBAC Insured
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,462,760
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 1,484,150
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,209,307
2,085 Washington Township Board of Education, Gloucester County, 2/13 at 100.00 Aaa 2,285,911
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 1,920,531
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, 7/09 at 102.00 Aaa 1,955,466
Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.9% (22.4% 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 1,080,330
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,332,120
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,266,267
1,155 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa 1,283,251
Utilities Authority, Revenue Bonds, Series 2002,
5.250%, 12/01/18 - FGIC Insured
2,225 Essex County Improvement Authority, New Jersey, 10/13 at 100.00 Aaa 2,366,265
General 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 6,072,787
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 1,333,224
1,750 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 1,909,197
1,965 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 2,143,756
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
$ 1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA $ 1,271,434
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,942,230
1,000 Hudson County Improvement Authority, New Jersey, 1/08 at 101.50 AAA 1,064,920
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 1,119,320
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,903,309
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,114,050
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 A+ 2,862,827
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
4,200 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AAA 4,723,698
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
2,540 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 2,736,012
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
2,925 New Jersey Economic Development Authority, School No Opt. Call AAA 3,318,237
Facility Construction Bonds, Series 2005K,
5.250%, 12/15/14 - FGIC Insured
1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA 1,770,735
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 1,107,730
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
3,000 New Jersey Transit Corporation, Certificates of No Opt. Call AAA 3,432,330
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
2,200 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 2,474,252
Transportation System Bonds, Series 2004B,
5.250%, 12/15/13 - FGIC Insured
2,000 New Jersey Transportation Trust Fund Authority, 12/15 at 100.00 AAA 2,251,080
Transportation System Bonds, Series 2005B,
5.250%, 12/15/18 - FGIC Insured
2,500 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 2,745,025
5.500%, 8/01/17 - FSA Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, No Opt. Call Aa2 1,135,650
New Jersey, 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 1,292,928
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
2,745 Union County Improvement Authority, New Jersey, 3/13 at 100.00 Aaa 2,906,955
General Obligation Lease Revenue Bonds, Plainfield
Park Madison Redevelopment Project, Series 2003,
5.000%, 3/01/34 - FSA Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,645,001
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.9% (16.2% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 3,030,280
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,697,050
2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,697,050
5,000 Delaware River Port Authority, Pennsylvania and 1/08 at 101.00 AAA 5,261,600
New Jersey, Revenue Bonds, Port District Project,
Series 1998B, 5.000%, 1/01/19 - MBIA Insured
1,995 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 2,135,947
5.000%, 1/01/35 - FSA Insured
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,255,368
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 2,207,675
465 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 564,078
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 927,048
33
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 750 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA $ 821,820
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 -
MBIA Insured
2,750 Passaic County Improvement Authority, New Jersey, 4/15 at 100.00 Aaa 2,926,110
Revenue Bonds, Paterson Parking Deck Facility, Series 2005,
5.000%, 4/15/35 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,119,840
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
8,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 8,618,240
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 4,309,120
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 (DD, settling 7/1/05) - XLCA Insured
1,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 1,542,740
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 17.8% (12.1% OF TOTAL INVESTMENTS)
4,105 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 4,359,920
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
New Jersey Economic Development Authority, School
Facilities Construction Bonds, Series 2002C:
3,000 5.000%, 6/15/15 (Pre-refunded to 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 3,332,250
2,000 5.000%, 6/15/20 (Pre-refunded to 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 2,221,500
3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,876,004
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded to 6/15/13) - FGIC Insured
2,250 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 2,509,065
Construction Bonds, Series 2004G, 5.000%, 9/01/17
(Pre-refunded to 9/01/13) - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 2,298,020
System Bonds, Series 2003C, 5.500%, 6/15/18
(Pre-refunded to 6/15/13)
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,354,589
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 AAA 7,958,875
1,760 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 2,125,587
2,745 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 3,315,191
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.1% (2.1% OF TOTAL INVESTMENTS)
1,285 Camden County Pollution Control Financing Authority, 12/05 at 100.00 B2 1,291,554
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 1,334,238
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
3,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 3,376,531
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.4% (7.1% 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 1,559,258
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,325,275
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,197,080
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water 9/05 at 101.00 AAA 3,135,867
Facilities 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 7,304,103
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
3,500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 3,873,240
Revenue Refunding Bonds, Series 2002A,
5.250%, 8/01/19 - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA $ 1,760,550
New Jersey, Sewer Revenue Refunding Bonds,
Series 1993B, 5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 258,565 Total Long-Term Investments (cost $265,745,699) - 146.2% 282,409,402
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Government Development Bank, Adjustable A-1 1,500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 2.140%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $267,245,699) - 147.0% 283,909,402
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.4% 872,908
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 193,182,310
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
See accompanying notes to financial statements.
35
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.1% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 130 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 130,684
130 5.125%, 1/01/37 1/15 at 100.00 Baa3 131,169
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5% (3.1% OF TOTAL INVESTMENTS)
925 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 962,379
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 2,398,480
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,213,639
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.4% (12.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,582,860
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue 7/11 at 100.00 AAA 219,766
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 3,989,570
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,679,840
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,097,700
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 319,014
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
750 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AAA 819,488
Bonds, 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 693,397
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 1,077,830
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 265,203
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 1,384,541
625 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 670,638
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 2,076,080
500 5.250%, 9/01/31 9/11 at 100.00 BBB 514,140
500 Puerto Rico Industrial, Tourist, Educational, Medical 12/12 at 101.00 BBB 536,780
and 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, 12/05 at 101.50 AAA 1,936,794
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
$ 1,000 Virgin Islands Government Refinery Facilities, Senior 1/13 at 100.00 BBB $ 1,144,640
Secured Revenue Bonds, Hovensa LLC Coker Project,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.9% (1.3% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 868,564
Development Revenue Bonds, Glimcher Properties Limited
Partnership Project, Series 1998, 6.000%, 11/01/28
(Alternative Minimum Tax)
750 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 827,918
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 260,208
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.0% (11.0% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 332,602
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 A2 3,761,240
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,471,433
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 1,034,980
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 568,005
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 815,888
3,000 5.750%, 7/01/31 7/10 at 100.00 A 3,263,550
1,500 New Jersey Health Care Facilities Financing Authority, 1/09 at 101.00 AAA 1,616,880
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 2,619,525
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 909,634
Revenue Bonds, St. Clare's 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+ 1,124,510
335 5.500%, 6/01/31 6/11 at 102.00 A+ 362,822
250 New Jersey Economic Development Authority, First 11/14 at 100.00 N/R 265,350
Mortgage Revenue Bonds, Winchester Gardens at Wards
Homestead, Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.4% (3.7% 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 1,949,123
1,630 4.750%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 1,717,335
360 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 411,426
5.250%, 7/15/16 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,461,713
Bonds, Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.3% (15.3% OF TOTAL INVESTMENTS)
1,745 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,906,447
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
1,500 Camden County Improvement Authority, New Jersey, 9/15 at 100.00 AAA 1,661,925
Guaranteed Lease Revenue Bonds, Series 2005A,
5.000%, 9/01/16 - FSA Insured
37
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,100 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA $ 1,232,517
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
2,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 2,208,940
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 611,061
900 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 981,873
1,015 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 1,107,335
525 New Jersey Economic Development Authority, School 9/15 at 100.00 AAA 580,739
Facilities Construction Bonds, Series 2005N-1,
5.000%, 9/01/17 - AMBAC Insured
2,200 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AAA 2,474,318
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,292,604
Revenue Bonds, Series 2004, 5.750%, 6/15/34
1,550 New Jersey Economic Development Authority, School No Opt. Call AAA 1,758,382
Facility Construction Bonds, Series 2005K,
5.250%, 12/15/14 - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue 9/12 at 100.00 AAA 1,107,730
Bonds, Higher Education Capital Improvement Bonds,
Fund Issue, Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of No Opt. Call AAA 1,144,110
Participation, 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 1,349,592
System Bonds, Series 2004B, 5.250%, 12/15/13 - FGIC Insured
1,635 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,838,819
System Bonds, Series 2005B, 5.250%, 12/15/13 -
MBIA Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,595,490
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.9% (16.4% OF TOTAL INVESTMENTS)
1,000 Delaware River and Bay Authority, Delaware and 1/15 at 100.00 AAA 1,081,290
New Jersey, Revenue Bonds, Series 2005, 5.000%, 1/01/25 -
MBIA Insured
1,800 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,675,278
Facilities Revenue Bonds, Continental Airlines Inc.,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
1,195 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 1,279,427
5.000%, 1/01/35 - FSA Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,263,670
5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
175 6.500%, 1/01/16 No Opt. Call A 211,117
70 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 85,386
375 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 410,910
Terminal 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 3,138,420
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 3,692,535
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 5,386,400
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 4,300,320
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 25.7% (17.7% OF TOTAL INVESTMENTS)
5,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,904,423
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,000 Delaware River and Bay Authority, Delaware and 1/13 at 100.00 AAA $ 1,124,780
New Jersey, Revenue Bonds, Series 2003, 5.250%, 1/01/18
(Pre-refunded to 1/01/13) - MBIA Insured
50 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 57,146
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded to 10/01/10) - FGIC Insured
2,400 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 2,642,064
Facilities Construction Bonds, Series 2001A,
5.000%, 6/15/21 (Pre-refunded to 6/15/11) - AMBAC Insured
1,500 New Jersey Economic Development Authority, School 6/12 at 100.00 AAA 1,666,125
Facilities Construction Bonds, Series 2002C,
5.000%, 6/15/15 (Pre-refunded to 6/15/12) - MBIA Insured
1,000 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 1,131,680
Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 (Pre-refunded to 6/15/13) - FGIC Insured
900 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 1,003,626
Facilities Construction Bonds, Series 2004G,
5.000%, 9/01/17 (Pre-refunded to 9/01/13) - MBIA Insured
1,565 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 1,727,071
Princeton University, Series 2000E, 5.250%, 7/01/16
(Pre-refunded to 7/01/10)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
1,000 5.500%, 6/15/17 (Pre-refunded to 6/15/13) 6/13 at 100.00 AAA 1,149,010
1,000 5.500%, 6/15/18 (Pre-refunded to 6/15/13) 6/13 at 100.00 AAA 1,149,010
550 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AAA 664,246
6.500%, 1/01/16
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 2,398,304
1,230 5.125%, 7/01/30 (Pre-refunded to 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,363,701
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,421,040
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.6% (1.8% OF TOTAL INVESTMENTS)
1,815 Camden County Pollution Control Financing Authority, 12/05 at 100.00 B2 1,824,238
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 800,543
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 21.8% (15.0% OF TOTAL INVESTMENTS)
4,635 New Jersey Economic Development Authority, Water 5/08 at 102.00 Aaa 4,914,537
Facilities 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 2/08 at 102.00 AAA 7,319,200
Facilities 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 2,852,362
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage No Opt. Call Aaa 7,220,822
Revenue Refunding Bonds, Series 2001A,
0.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 147,375 Total Long-Term Investments (cost $140,527,062) - 145.6% 149,197,901
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,303,776
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.8)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 102,501,677
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
39
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 90 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 90,473
90 5.125%, 1/01/37 1/15 at 100.00 Baa3 90,809
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.8% (4.0% OF TOTAL INVESTMENTS)
1,040 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,082,026
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 1,713,200
1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,348,488
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (10.2% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, 9/12 at 101.00 N/R 1,067,190
Revenue 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 1,159,084
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 3,150,270
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 550,315
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 619,752
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 212,162
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
875 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 965,318
Rowan University, Series 2004C, 5.000%, 7/01/12 -
MBIA Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 1,039,860
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 1,893,874
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB 1,144,640
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 4.9% (3.4% OF TOTAL INVESTMENTS)
600 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 613,104
Development Revenue Bonds, Glimcher Properties Limited
Partnership Project, Series 1998, 6.000%, 11/01/28
(Alternative Minimum Tax)
1,450 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,600,641
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 1,301,038
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 23.7% (16.2% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 236,040
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- $ 1,571,400
Revenue 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 532,760
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 2,006,890
140 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 150,450
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,204,648
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 1,108,340
Revenue 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, 7/12 at 100.00 A 2,724,300
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,362,438
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21
500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 517,490
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A 3,807,475
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 549,566
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 12/05 at 102.00 Baa1 1,129,447
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 2,388,353
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+ 1,091,100
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,332,200
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 5.5% (3.7% OF TOTAL INVESTMENTS)
3,000 Jackson Township School District, Ocean County, 4/12 at 100.00 AAA 3,211,710
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 4/15/21 - FGIC Insured
240 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 274,284
5.250%, 7/15/16 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 416,012
Bonds, Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.3% (15.9% OF TOTAL INVESTMENTS)
3,000 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa 3,206,940
Utilities Authority, Revenue Bonds, Series 2002,
5.000%, 12/01/25 - FGIC Insured
1,000 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,092,520
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 840,353
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
1,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 1,104,470
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
41
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
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 $ 555,510
625 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 681,856
700 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 763,679
535 Mansfield Township Board of Education, Warren County, 3/06 at 102.00 AAA 556,571
New Jersey, Certificates of Participation, Series 1995,
5.900%, 3/01/15 - MBIA Insured
350 New Jersey Economic Development Authority, School 9/15 at 100.00 AAA 387,160
Facilities Construction Bonds, Series 2005N-1,
5.000%, 9/01/17 - AMBAC Insured
1,500 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,687,035
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
700 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 754,019
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
1,010 New Jersey Economic Development Authority, School No Opt. Call AAA 1,145,784
Facility Construction Bonds, Series 2005K, 5.250%, 12/15/14 -
FGIC Insured
1,000 New Jersey Transit Corporation, Certificates of No Opt. Call AAA 1,144,110
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
700 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 787,262
Transportation System Bonds, Series 2004B,
5.250%, 12/15/13 - FGIC Insured
1,180 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 1,327,099
Transportation System Bonds, Series 2005B,
5.250%, 12/15/13 - MBIA Insured
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 544,824
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.6% (14.8% OF TOTAL INVESTMENTS)
1,200 New Jersey Economic Development Authority, 11/10 at 101.00 B 1,116,852
Special Facilities Revenue Bonds, Continental Airlines
Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
820 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 877,933
5.000%, 1/01/35 - FSA Insured
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,175,780
5.000%, 1/01/19 - FGIC Insured
675 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 814,307
6.500%, 1/01/16
250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 273,940
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 2,119,980
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 (Alternative Minimum Tax) -
AMBAC Insured
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,185,820
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA 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 4,798,320
50 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 53,864
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 22.2% (15.2% OF TOTAL INVESTMENTS)
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,396,600
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
770 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 866,081
Revenue Bonds, Series 2003, 5.250%, 1/01/18
(Pre-refunded to 1/01/13) - MBIA Insured
160 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 182,866
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25
(Pre-refunded to 10/01/10) - FGIC Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA 1,110,750
Construction Bonds, Series 2002C, 5.000%, 6/15/20
(Pre-refunded to 6/15/12) - MBIA Insured
900 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 1,003,626
Facilities Construction Bonds, Series 2004G, 5.000%, 9/01/17
(Pre-refunded to 9/01/13) - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA $ 1,149,010
System Bonds, Series 2003C, 5.500%, 6/15/18
(Pre-refunded to 6/15/13)
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 751,271
System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded
to 12/15/11) - MBIA Insured
2,430 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call AAA 2,934,760
Series 1991C, 6.500%, 1/01/16
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,763,150
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,495 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,684,641
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded to 2/01/12)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.6% (7.3% OF TOTAL INVESTMENTS)
825 Camden County Pollution Control Financing Authority, 12/05 at 100.00 B2 829,199
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 2,696,522
5.250%, 10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 800,540
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 3,243,720
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.8% (0.5% OF TOTAL INVESTMENTS)
500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 553,320
Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 95,630 Total Long-Term Investments (cost $97,580,078) - 146.3% 104,219,191
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,511,933
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.4)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 71,231,124
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest.
N/R Investment is not rated.
See accompanying notes to financial statements.
43
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4% (0.2% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,138,140
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 24.3% (16.3% OF TOTAL INVESTMENTS)
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,173,910
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
975 Allegheny County Higher Education Building Authority, 2/06 at 102.00 Baa3 1,010,129
Pennsylvania, College Revenue Bonds, Robert Morris
College, Series 1996A, 6.250%, 2/15/26
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 226,590
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,069,300
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 2,104,740
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 3,338,850
Haverford College, Series 2000, 5.750%, 11/15/29
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,460,163
Bonds, Villanova University, Series 2003, 5.250%, 8/01/18 -
FGIC Insured
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2005:
1,000 5.000%, 8/01/12 - MBIA Insured No Opt. Call AAA 1,101,830
1,240 5.000%, 8/01/13 - MBIA Insured No Opt. Call AAA 1,372,730
1,305 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 1,448,433
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,077,390
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 539,579
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 513,882
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 488,650
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 464,534
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 441,624
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 8,395,440
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
3,450 Pennsylvania Higher Educational Facilities Authority, No Opt. Call AA 3,855,065
Revenue Bonds, University of Pennsylvania, Series 2005A,
5.000%, 9/01/14
5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 5,448,300
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,058,280
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 3,188,522
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 5,281,700
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
2,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 2,242,380
Bonds, Series 2002, 5.250%, 8/15/12
Pennsylvania State University, General Revenue Bonds,
Series 2005:
1,040 5.000%, 9/01/14 No Opt. Call AA 1,162,106
1,560 5.000%, 9/01/15 No Opt. Call AA 1,748,495
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 6,000 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ $ 6,155,880
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
Union County, Higher Education Facilities Financing Authority,
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A:
1,665 5.250%, 4/01/18 4/13 at 100.00 Aa3 1,827,471
1,000 5.250%, 4/01/20 4/13 at 100.00 Aa3 1,105,710
105 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/05 at 100.00 N/R 105,362
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.8% (6.5% OF TOTAL INVESTMENTS)
1,555 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 1,602,676
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,221,862
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 1,335,013
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,609,300
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 A+ 10,013,400
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
2,360 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 2,618,090
Revenue Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
1,225 Philadelphia Hospitals and Higher Education Facilities 11/05 at 100.00 BBB 1,248,030
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 1,781,797
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 A1 1,019,693
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,642,590
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.7% (0.5% OF TOTAL INVESTMENTS)
800 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 808,672
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/05 at 100.00 A2 961,258
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 5,185,200
Mortgage Revenue Bonds, Series 1997-59A,
5.750%, 10/01/23 (Alternative Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,224,402
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 978,576
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.3% (2.9% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,336,900
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 5,657,750
Development Revenue Bonds, Series 2002,
5.500%, 7/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.6% (1.7% OF TOTAL INVESTMENTS)
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,550,640
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
45
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101.00 BBB $ 3,277,793
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 1,608,525
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured
230 Philadelphia Authority for Industrial Development, 5/08 at 102.00 N/R 233,333
Pennsylvania, Health Care Facilities Revenue Bonds,
Paul's Run, Series 1998A, 5.875%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,874,058
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.5% (17.0% OF TOTAL INVESTMENTS)
4,000 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 4,522,200
Series 2005C-57, 5.250%, 11/01/13 - FGIC Insured
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,950,066
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
1,640 Bensalem Township, Pennsylvania, General Obligation Bonds, No Opt. Call Aaa 1,825,599
Series 2004, 5.000%, 12/01/13 - FGIC Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/14 at 100.00 AAA 1,328,172
Series 2004, 5.000%, 7/15/16 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, 5/13 at 100.00 Aaa 2,379,366
General 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 1,075,300
Series 1999, 5.125%, 10/01/19
1,500 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,641,840
Series 2004, 5.000%, 11/15/10 - MBIA Insured
7,500 Montgomery County, Pennsylvania General Obligation Bonds, 7/09 at 100.00 Aaa 7,929,150
Series 1999, 5.000%, 7/15/24
925 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,040,579
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 1,092,120
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 1,111,797
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/19 - FGIC Insured
2,000 Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,191,420
First Series 2004, 5.250%, 2/01/10 - MBIA Insured
4,000 Pennsylvania, General Obligation Bonds, No Opt. Call AA 4,431,080
Third Series 2004, 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 4,413,240
1,620 5.250%, 10/01/14 - FGIC Insured No Opt. Call AAA 1,849,910
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,091,560
2,585 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,877,674
2,725 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,969,323
Series 2005A, 5.000%, 9/01/11 - MBIA Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,270,960
General Obligation Bonds, Series 2005A, 5.000%, 9/01/10 -
FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,486,660
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
3,390 Pocono Mountain School District, Monroe County, 2/13 at 100.00 Aaa 3,718,084
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 1,704,989
General Obligation Bonds, Series 2001, 5.000%, 4/15/20 -
FSA Insured
1,230 State Public School Building Authority, Pennsylvania, 11/13 at 100.00 AAA 1,366,555
School Revenue Bonds, Conneaut School District,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,592,851
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,020 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 $ 4,438,964
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.0% (15.4% OF TOTAL INVESTMENTS)
5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,377,450
Pennsylvania, Revenue Bonds, Guaranteed County
Building Project, Series 2002A, 5.000%, 11/01/22 -
MBIA Insured
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 1,113,750
3,500 5.000%, 3/01/29 - FGIC Insured 3/11 at 101.00 AAA 3,680,950
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa3 7,015,020
Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 9,008,999
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 1,685,295
2,600 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,897,154
2,125 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,367,866
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,827,719
Bonds, Series 2001, 5.000%, 7/15/41 - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,741,019
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.250%, 10/01/30 - FSA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 2,979,477
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium 8/09 at 101.00 AAA 4,219,840
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 1,172,110
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 1,943,064
Revenue Bonds, Series 1999A, 5.250%, 3/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.6% (5.7% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 691,614
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, 5/10 at 100.00 Aaa 2,239,558
Airport 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 5,872,338
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 12/11 at 101.00 AAA 2,330,834
Bonds, Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,275,250
Series 2001B, 5.250%, 6/15/31 (Alternative
Minimum Tax) - FGIC Insured
3,250 Philadelphia Parking Authority, Pennsylvania, Airport 9/09 at 101.00 AAA 3,496,838
Parking Revenue Bonds, Series 1999, 5.250%, 9/01/29 -
FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 2,088,033
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 18.2% (12.2% OF TOTAL INVESTMENTS)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,944,050
Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded
to 5/01/11) - FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation 5/11 at 100.00 AAA 1,466,520
Refunding Bonds, Series 2000C-53, 5.250%, 11/01/20
(Pre-refunded to 5/01/11) - FGIC Insured
1,355 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA 1,400,365
District, General Obligation Bonds, Series 1996,
5.850%, 7/15/12 (Pre-refunded to 7/15/06) - FGIC Insured
47
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** (continued)
$ 830 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2*** $ 933,393
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded to 7/01/13)
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 7,063,767
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 (Pre-refunded to 2/15/12) - FGIC Insured
1,450 Indiana County Industrial Development Authority, 11/06 at 100.00 AAA 1,511,031
Pennsylvania, 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*** 1,108,910
5.000%, 9/15/15 (Pre-refunded to 9/15/11)
760 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 942,256
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,898,508
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded to
8/01/12) - FGIC Insured
6,100 Plum Borough School District, Allegheny County, 9/11 at 100.00 AAA 6,752,395
Pennsylvania, General Obligation Bonds, Series 2001,
5.250%, 9/15/30 (Pre-refunded to 9/15/11) - FGIC Insured
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,272,340
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,793,740
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 7,250,735
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
Wilkes-Barre Area School District, Luzerne County,
Pennsylvania, General Obligation Bonds, Series 2003A:
1,700 5.250%, 4/01/19 (Pre-refunded to 4/01/14) - MBIA Insured 4/14 at 100.00 AAA 1,927,324
2,050 5.250%, 4/01/20 (Pre-refunded to 4/01/14) -MBIA Insured 4/14 at 100.00 AAA 2,324,126
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.9% (7.3% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,310,587
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
1,820 Beaver Falls Municipal Authority, Pennsylvania, Water No Opt. Call AAA 2,008,770
and Hydroelectric Revenue Bonds, Series 2002A,
5.000%, 6/01/12 - AMBAC Insured
2,320 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,527,408
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 4,092,320
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Pennsylvania Power and Light Company, Series 1995A,
6.150%, 8/01/29 (Pre-refunded to 8/01/05) - MBIA Insured (a)
2,430 Lehigh County Industrial Development Authority, 2/15 at 100.00 AAA 2,514,370
Pennsylvania, Pollution Control Revenue Bonds, Pennsylvania
Power and Light Company, Series 2005, 4.750%, 2/15/27 -
FGIC Insured (a)
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,929,940
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,210,520
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 741,937
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
680 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 742,764
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
3,500 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 3,833,095
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 3,932,915
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 17.3% (11.6% OF TOTAL INVESTMENTS)
$ 2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA $ 2,403,781
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 1,036,300
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 743,117
530 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA 604,195
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,310,350
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 5,747,379
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,581,204
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,551,634
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 5,362,000
Series 2001A, 5.200%, 12/01/30 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 2,151,240
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
1,540 Hempfield Township Municipal Authority, Westmoreland No Opt. Call Aaa 1,726,078
County, Pennsylvania, Guaranteed Sewerage Revenue
Bonds, Series 2005, 5.000%, 9/01/15 - FSA Insured
1,250 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,355,400
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 1,058,590
Water and Sewerage Revenue Bonds, Series 1998,
5.000%, 11/15/15 - FSA Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 2001A:
5,525 5.375%, 11/01/20 - FGIC Insured 11/12 at 100.00 AAA 6,110,811
5,000 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 5,271,000
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,321,204
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 353,645 Total Long-Term Investments (cost $359,713,911) - 149.6% 383,426,749
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 4,938,096
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.5)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 256,364,845
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
See accompanying notes to financial statements.
49
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.6% OF TOTAL INVESTMENTS)
$ 1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA $ 1,354,884
Pennsylvania, Revenue Bonds, Duquesne University,
Series 2004A, 5.000%, 3/01/19 - FGIC Insured
900 Allegheny County Higher Education Building Authority, 2/06 at 102.00 Baa3 932,427
Pennsylvania, College Revenue Bonds, Robert Morris
College, Series 1996A, 6.250%, 2/15/26
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 226,590
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A 1,079,704
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- 3,082,470
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 1,889,447
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,496,043
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,108,180
3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 AAA 3,285,185
Pennsylvania, Revenue Bonds, Student Cooperative
Association Inc./Indiana University of Pennsylvania - Student
Union Project, Series 2004, 5.000%, 11/01/24 -
AMBAC Insured
2,500 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 2,696,625
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/25 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 5/08 at 101.00 Aaa 1,059,770
Revenue Bonds, LaSalle University, Series 1998,
5.250%, 5/01/23 - MBIA Insured
2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 AA 2,308,908
Revenue Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 1,579,470
Revenue 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 4,451,261
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
5,750 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 6,020,825
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 1,023,230
Revenue Bonds, University of Pennsylvania Sciences,
Series 2005A, 4.750%, 11/01/33 - XLCA Insured
1,310 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 AA 1,421,953
Revenue Bonds, Ursinus College, Series 2003,
5.500%, 1/01/24 - RAAI Insured
State Public School Building Authority, Pennsylvania, College
Revenue Bonds, Montgomery County Community College Project,
Series 2005:
1,545 5.000%, 5/01/18 - AMBAC Insured 5/15 at 100.00 Aaa 1,691,250
1,625 5.000%, 5/01/19 - AMBAC Insured 11/05 at 100.00 Aaa 1,770,470
750 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 829,283
Authority, 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+ 2,680,475
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18
270 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/05 at 100.00 N/R 270,932
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.0% (12.6% OF TOTAL INVESTMENTS)
$ 1,455 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 $ 1,499,610
Pennsylvania, Revenue Bonds, Ohio Valley General
Hospital, Series 2005A, 5.125%, 4/01/35
8,500 Allegheny County Hospital Development Authority, 5/06 at 102.00 AAA 8,853,430
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 14,832,860
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 1,344,009
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+ 5,433,850
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 1,335,013
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
2,400 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,504,928
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,765 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 1,958,020
Revenue Bonds, University of Pennsylvania Health
Services, Series 2005B, 5.000%, 8/15/16 - FGIC Insured
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- 1,990,820
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,953,260
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 1,867,841
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,311,504
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,078,113
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.0% (2.0% OF TOTAL INVESTMENTS)
4,345 Bucks County Redevelopment Authority, Pennsylvania, 8/05 at 100.00 Baa2 4,350,344
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 2,101,540
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Alternative Minimum Tax) (Mandatory put 4/01/22)
740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 748,022
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,230 Allegheny County Residential Finance Authority, 11/10 at 100.00 Aaa 1,296,076
Pennsylvania, 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 No Opt. Call AA+ 1,149,714
Mortgage Revenue Bonds, Series 1996-47,
6.750%, 10/01/06 (Alternative Minimum Tax)
1,365 Pennsylvania Housing Finance Agency, Single Family 4/07 at 101.50 AA+ 1,408,857
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+ 1,655,923
Mortgage Revenue Bonds, Series 1997-59A,
5.700%, 4/01/17 (Alternative Minimum Tax)
555 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 577,744
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (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 870,282
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 798,247
51
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.0% (2.0% OF TOTAL INVESTMENTS)
$ 2,000 New Morgan Industrial Development Authority, Pennsylvania, 10/05 at 101.00 BB- $ 2,000,920
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 2,133,120
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 3,104,145
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.3% (2.8% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,040,160
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
1,835 Dormitory Authority of the State of New York, Insured 7/15 at 100.00 AAA 1,968,625
Revenue Bonds, NYSARC Inc., Series 2005A,
5.000%, 7/01/34 (DD, settling 7/1/05) - FSA Insured
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 1,057,123
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/28
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 8/05 at 100.00 AA 1,002,370
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,199,260
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 1,367,037
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,673,909
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.2% (1.6% OF TOTAL INVESTMENTS)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 536,630
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 4,819,005
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.1% (21.4% OF TOTAL INVESTMENTS)
3,695 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 4,177,382
Series 2005C-57, 5.250%, 11/01/13 - FGIC Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/14 at 100.00 AAA 1,328,172
Series 2004, 5.000%, 7/15/16 - FGIC Insured
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,292,844
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
3,325 Cumberland Valley School District, Cumberland County, 11/15 at 100.00 Aaa 3,714,225
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/16 (WI, settling 7/15/05) - FSA 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 810,390
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,241,020
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,200,925
1,500 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,641,840
Series 2004, 5.000%, 11/15/10 - MBIA Insured
2,080 Meadville, Crawford County, Pennsylvania, General Obligation 10/15 at 100.00 Aaa 2,230,779
Bonds, Series 2005, 5.000%, 10/01/25 - XLCA Insured
985 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,108,076
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 1,092,120
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 $ 1,084,680
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,084,680
1,735 5.000%, 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,881,920
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,169,360
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,457,025
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,800,564
3,500 Pennsylvania, General Obligation Refunding Bonds, Second No Opt. Call AAA 3,852,625
Series 2003, 5.000%, 7/01/11 - MBIA Insured
4,250 Pennsylvania, General Obligation Bonds, Third Series 2004, No Opt. Call AA 4,708,023
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 3,861,585
1,600 5.250%, 10/01/14 - FGIC Insured No Opt. Call AAA 1,827,072
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,091,560
2,000 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,226,440
2,000 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 2,247,440
Refunding Bonds, Series 1995A, 6.250%, 9/01/09 -
AMBAC Insured
3,045 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,320,024
General Obligation Bonds, Series 2005A, 5.000%, 9/01/10 -
FGIC Insured
1,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,150,420
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
3,300 Pocono Mountain School District, Monroe County, 2/13 at 100.00 Aaa 3,619,374
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 3,175,827
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,119,025
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
1,000 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 1,111,020
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 544,400
2,550 State Public School Building Authority, Pennsylvania, 5/13 at 100.00 Aaa 2,530,671
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 4,278,785
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 1,668,959
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
2,005 Woodland Hills School District, Allegheny County, No Opt. Call AAA 2,247,264
Pennsylvania, General Obligation Bonds, Series 2005C,
5.000%, 9/01/15 (WI, settling 7/20/05) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.6% (7.1% OF TOTAL INVESTMENTS)
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100.00 AAA 4,155,004
Local Government Revenue Bonds, Series 1996A,
6.000%, 4/15/26 - AMBAC Insured
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 1,597,770
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC 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 1,123,530
2,400 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,674,296
2,000 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,228,580
7,015 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 7,741,123
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
53
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA $ 2,861,685
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
1,000 Southeastern Transportation Authority, Pennsylvania, 3/09 at 101.00 AAA 1,079,480
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 1,108,950
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,122,120
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 15.9% (10.6% OF TOTAL INVESTMENTS)
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,405,179
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
650 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 713,570
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 4,979,776
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 3,787,605
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,452,300
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 6,724,404
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 2,497,101
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 7,052,889
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 7.6% (5.1% 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 1,128,600
1,000 5.250%, 7/15/21 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,128,600
1,200 5.250%, 7/15/23 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,354,320
850 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2*** 955,884
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded to 7/01/13)
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,375,733
Series 2000, 5.625%, 11/15/28 (Pre-refunded to
11/15/10) - AMBAC Insured
1,225 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,456,317
College 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 1,136,930
3,740 6.650%, 12/01/19 No Opt. Call AAA 4,673,803
865 State Public School Building Authority, Pennsylvania, 11/13 at 100.00 AAA 961,032
School Revenue Bonds, Conneaut School District,
Series 2003, 5.250%, 11/01/22 (Pre-refunded
to 11/01/13) - FGIC Insured
1,650 West View Borough Municipal Authority, Allegheny No Opt. Call AAA 2,195,177
County, Pennsylvania, Special Obligation Bonds,
Series 1985A, 9.500%, 11/15/14
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,133,720
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 (Pre-refunded to 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 15.9% (10.6% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,179,529
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 8,490,880
Pennsylvania, Exempt Facilities Revenue Bonds,
Shippingport Project, Series 1998A, 5.375%, 6/01/28
(Alternative Minimum Tax) - AMBAC Insured
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,150 Carbon County Industrial Development Authority, No Opt. Call BBB- $ 3,431,610
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/07 at 102.00 AAA 8,087,373
Pollution Control Revenue Bonds, Metropolitan Edison
Company, 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 2,113,000
Pennsylvania, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC, Series 2001A, 5.850%, 6/01/27
(Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, 2/15 at 100.00 AAA 2,224,648
Pennsylvania, Pollution Control Revenue Bonds,
Pennsylvania Power and Light Company, Series 2005,
4.750%, 2/15/27 - FGIC Insured (a)
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,717,945
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montgomery County Montenay Project,
Series 2002A, 5.250%, 11/01/13 - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 6,069,240
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 1,105,260
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 741,937
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
745 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 813,764
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
2,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 2,453,181
General Ordinance, Sixteenth Series 1999,
5.500%, 7/01/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.0% (10.0% OF TOTAL INVESTMENTS)
2,000 Allegheny County Sanitary Authority, Pennsylvania, 12/10 at 101.00 AAA 2,251,540
Sewerage Revenue Bonds, Series 2000,
5.500%, 12/01/30 - MBIA Insured
1,000 Allegheny County Sanitary Authority, Pennsylvania, 12/11 at 101.00 AAA 1,124,830
Sewerage 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 2,725,375
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, 3/12 at 100.00 AAA 4,307,400
Pennsylvania, Water Facility Revenue Bonds,
Pennsylvania Suburban Water Company Project,
Series 2002, 5.550%, 9/01/32 (Alternative Minimum
Tax) - FGIC Insured
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 686,391
485 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,774,659
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 2,151,240
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 1,419,792
Revenue Bonds, Series 2004, 5.000%, 4/01/21 -
MBIA Insured
3,870 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/15 at 100.00 Aaa 4,286,876
Revenue Bonds, Series 2005, 5.000%, 4/01/17 - FGIC Insured
3,360 Mercer County Industrial Development Authority, 7/10 at 100.00 AAA 3,712,430
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 1,230,208
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,729,967
2,730 Philadelphia, Pennsylvania, Water and Wastewater Revenue No Opt. Call AAA 3,127,540
Bonds, Series 1995, 6.250%, 8/01/10 - MBIA Insured
55
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA $ 2,159,260
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, 12/14 at 100.00 AAA 2,135,380
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/34 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 339,710 Total Long-Term Investments (cost $340,216,802) - 149.2% 361,587,837
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7% (0.5% OF TOTAL INVESTMENTS)
400 Lehigh County General Purpose Authority, Pennsylvania, AAA 400,000
Hospital Revenue Bonds, Lehigh Valley Health Network,
Variable Rate Demand Obligations, Series 1999B,
2.260%, 7/01/29 - MBIA Insured+
1,370 South Fork Municipal Authority, Pennsylvania, Hospital AAA 1,370,000
Revenue Bonds, Conemaugh Health System South
Fork Hospital, Variable Rate Demand Obligations,
Series 1998A, 2.260%, 7/01/28 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,770 Total Short-Term Investments (cost $1,770,000) 1,770,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $341,986,802) - 149.9% 363,357,837
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.2)% (2,884,684)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.7)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 242,373,153
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(a) The issuer has received a preliminary adverse
determination from the Internal Revenue Service (the
"IRS") regarding the tax-exempt status of the bonds'
coupon payments. The Fund will continue to treat coupon
payments as tax-exempt income until such time that it
is formally determined that the interest on the bonds
should be treated as taxable.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that in
effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index. See accompanying notes to
financial statements.
56
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,138,140
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.0% (19.9% OF TOTAL INVESTMENTS)
125 Allegheny County Higher Education Building Authority, 2/06 at 102.00 Baa3 129,504
Pennsylvania, College Revenue Bonds, Robert Morris
College, Series 1996A, 6.250%, 2/15/26
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 113,295
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
2,250 Bucks County Industrial Development Authority, 9/11 at 100.00 Aaa 2,376,270
Pennsylvania, Revenue Bonds, George School Project,
Series 2001, 5.125%, 9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 689,423
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,058,320
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 1,458,488
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 1,078,650
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,089,660
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,205,486
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 AA 1,584,510
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
3,000 Pennsylvania State University, General Obligation No Opt. Call AA 3,409,470
Refunding Bonds, Series 2002, 5.250%, 8/15/14
1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 1,060,530
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.6% (12.2% OF TOTAL INVESTMENTS)
260 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 267,972
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
400 Allegheny County Hospital Development Authority, 11/10 at 102.00 B1 481,548
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- 2,620,575
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 267,003
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 626,232
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+ 2,392,090
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
465 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 515,852
Revenue Bonds, University of Pennsylvania Health
Services, Series 2005B, 5.000%, 8/15/16 - FGIC Insured
40 Philadelphia Hospitals and Higher Education Facilities 11/05 at 100.00 BBB 40,752
Authority, Pennsylvania, Hospital Revenue Bonds,
Temple University Hospital, Series 1993A, 6.625%, 11/15/23
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 180,571
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
57
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 $ 1,083,010
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 821,295
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 101,084
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.5% (2.4% OF TOTAL INVESTMENTS)
1,795 Allegheny County Residential Finance Authority, 11/08 at 102.00 Aaa 1,856,048
Pennsylvania, GNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series 1998DD-2,
5.400%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.7% (4.6% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,133,120
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 1,410,975
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 13.1% (9.0% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 1,092,190
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- 2,242,590
Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 293,040
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
240 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 235,241
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/14
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 3,057,678
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+ 820,508
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 803,168
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.3% (19.5% OF TOTAL INVESTMENTS)
1,000 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,130,550
Series 2005C-57, 5.250%, 11/01/13 - FGIC Insured
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,702,288
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 251,293
General Obligation Bonds, Series 1998, 5.000%, 10/01/18 -
AMBAC Insured
595 Lehigh County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 651,263
Series 2004, 5.000%, 11/15/10 - MBIA Insured
750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 833,085
Series 2003A, 5.250%, 11/15/16 - MBIA Insured
250 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 282,868
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 1,232,208
General Obligation Bonds, Series 2001A,
5.500%, 2/15/17 - FGIC Insured
750 Pennsylvania, General Obligation Bonds, Third No Opt. Call AA 830,828
Series 2004, 5.000%, 9/01/12
2,000 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AA 2,204,020
Series 2001, 5.000%, 9/15/13
58
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA $ 3,451,260
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
1,230 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,340,429
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.9% (6.8% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,054,030
Redevelopment Bonds, Pittsburg Mills Project,
Series 2004, 5.600%, 7/01/23
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 1,123,530
Senior Lien Revenue Bonds, Series 2003A,
5.250%, 12/01/15 - MBIA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, 4/12 at 100.00 AAA 1,670,760
Revenue Bonds, Philadelphia Neighborhood Transformation
Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 1,103,510
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
250 Southeastern Transportation Authority, Pennsylvania, 3/09 at 101.00 AAA 269,870
Special Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.1% (7.0% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 142,714
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,560
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 1,829,153
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 2,278,289
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 6.4% (4.4% OF TOTAL INVESTMENTS)
170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2*** 191,177
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded to 7/01/13)
185 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 229,365
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,866,550
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded
to 8/01/12) - FGIC Insured
100 Philadelphia Hospitals and Higher Education Facilities 7/07 at 102.00 AAA 107,953
Authority, Pennsylvania, Hospital Revenue Refunding Bonds,
Jeanes Hospital, Series 1997, 5.875%, 7/01/17
(Pre-refunded to 7/01/07)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.7% (8.8% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 524,235
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 3,372,397
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 307,980
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 1,101,200
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,096,820
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 148,387
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
135 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 147,461
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
59
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA $ 545,070
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 645,372
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 70,205 Total Long-Term Investments (cost $71,402,402) - 145.1% 76,482,763
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 1,228,954
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.4)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 52,711,717
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
60
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.6% (15.5% OF TOTAL INVESTMENTS)
$ 700 Allegheny County Higher Education Building Authority, No Opt. Call AA- $ 702,548
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,132,950
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 787,912
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25 (DD, settling 7/1/05)
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 343,954
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,593,410
Bonds, Villanova University, Series 2003,
5.250%, 8/01/17 - FGIC Insured
2,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 2,105,960
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 5,605,950
Bonds, Series 2002, 5.250%, 8/15/12
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 1,105,710
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 12.8% (8.8% OF TOTAL INVESTMENTS)
295 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 304,045
Pennsylvania, Revenue Bonds, Ohio Valley General
Hospital, Series 2005A, 5.125%, 4/01/35
Allegheny County Hospital Development Authority,
Pennsylvania, Revenue Bonds, West Penn Allegheny
Health System, Series 2000B:
100 9.250%, 11/15/22 11/10 at 102.00 B1 120,854
300 9.250%, 11/15/30 11/10 at 102.00 B1 361,161
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,096,460
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 626,232
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
20 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A+ 22,252
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
465 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 515,852
Revenue Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
1,000 Philadelphia Hospitals and Higher Education Facilities 11/05 at 100.00 BBB 1,018,800
Authority, Pennsylvania, Hospital Revenue Bonds,
Temple University Hospital, Series 1993A,
6.625%, 11/15/23
225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 238,991
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,450 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,615,068
Revenue 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+ 657,036
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.2% (0.2% OF TOTAL INVESTMENTS)
120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 121,301
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.7% (3.9% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,386,340
Development Revenue Bonds, Series 2002,
5.500%, 7/01/19 - AMBAC Insured
61
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS June 30, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.9% (3.3% OF TOTAL INVESTMENTS)
$ 1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ $ 1,242,214
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 1,092,190
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 293,040
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
260 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 254,844
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/14
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.2% (2.3% OF TOTAL INVESTMENTS)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,094,010
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 803,168
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.7% (11.4% OF TOTAL INVESTMENTS)
500 Allegheny County, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 565,275
Series 2005C-57, 5.250%, 11/01/13 - FGIC Insured
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,911,042
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 811,152
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,117,480
4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 4,670,636
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 475,838
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
275 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 311,154
General Obligation Bonds, Series 2004, 5.250%, 11/15/13 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.2% (25.5% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,054,030
Redevelopment Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa3 4,676,680
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 2,147,840
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 4,284,280
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 1,123,530
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 3,258,260
Bonds, Series 2001, 5.500%, 7/15/33 - AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,149,100
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 1,113,840
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,937,548
250 Southeastern Transportation Authority, Pennsylvania, 3/09 at 101.00 AAA 269,870
Special Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
62
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.8% (2.7% OF TOTAL INVESTMENTS)
$ 130 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 $ 142,714
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,560
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 1,040,260
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED *** - 19.7% (13.5% OF TOTAL INVESTMENTS)
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,249,640
Series 2001, 5.500%, 11/15/26 (Pre-refunded
to 5/15/11) - FGIC Insured
170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2*** 191,177
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded to 7/01/13)
3,000 Pennsylvania, General Obligation Bonds, Second Series 9/11 at 101.00 AA*** 3,326,730
2001, 5.000%, 9/15/15 (Pre-refunded to 9/15/11)
2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,265,060
Obligation Bonds, Series 2002A, 5.500%, 2/01/31
(Pre-refunded to 2/01/12) - FSA Insured
3,170 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 AAA 3,634,785
Obligation Bonds, Series 2002B, 5.625%, 8/01/18
(Pre-refunded to 8/01/12) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.5% (6.5% OF TOTAL INVESTMENTS)
2,135 Montgomery County Industrial Development Authority, No Opt. Call AAA 2,322,602
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montgomery County Montenay Project,
Series 2002A, 5.000%, 11/01/10 - MBIA Insured
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B+ 340,398
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 2,650,771
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 153,687
General Ordinance, Fifth Series 2004A-1,
5.000%, 9/01/26 - FSA Insured
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 174,768
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.3% (6.4% OF TOTAL INVESTMENTS)
4,500 Bucks County Industrial Development Authority, 3/12 at 100.00 AAA 4,845,825
Pennsylvania, 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, 7/14 at 100.00 AAA 645,371
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 79,195 Total Long-Term Investments (cost $79,891,662) - 145.6% 86,186,155
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 1,487,650
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.2)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 59,173,805
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
63
Statement of
ASSETS AND LIABILITIES June 30, 2005
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 $454,429,495,
$267,245,699, $140,527,062, and $97,580,078,
respectively) $480,760,686 $283,909,402 $149,197,901 $104,219,191
Cash 5,762,596 2,305,185 -- --
Receivables:
Interest 6,622,804 4,083,333 2,247,668 1,561,421
Investments sold 550,000 640,000 -- --
Other assets 26,111 17,650 8,651 8,580
------------------------------------------------------------------------------------------------------------------------------------
Total assets 493,722,197 290,955,570 151,454,220 105,789,192
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- 881,757 7,243
Payables:
Investments purchased 12,241,171 5,912,620 -- --
Forward swaps closed -- -- -- --
Accrued expenses:
Management fees 246,504 147,572 41,737 29,506
Other 112,357 94,996 24,315 18,861
Preferred share dividends payable 39,537 18,072 4,734 2,458
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,639,569 6,173,260 952,543 58,068
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $319,082,628 $193,182,310 $102,501,677 $71,231,124
====================================================================================================================================
Common shares outstanding 20,444,580 12,039,329 6,556,261 4,509,839
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.61 $ 16.05 $ 15.63 $ 15.79
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,446 $ 120,393 $ 65,563 $ 45,098
Paid-in surplus 288,419,461 171,866,559 93,069,298 63,945,160
Undistributed (Over-distribution of) net investment income 934,719 1,224,771 568,730 337,234
Accumulated net realized gain from investments and
forward swaps 3,192,811 3,306,884 127,247 264,519
Net unrealized appreciation of investments 26,331,191 16,663,703 8,670,839 6,639,113
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $319,082,628 $193,182,310 $102,501,677 $71,231,124
====================================================================================================================================
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.
64
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $359,713,911,
$341,986,802, $71,402,402, and $79,891,662,
respectively) $383,426,749 $363,357,837 $76,482,763 $86,186,155
Cash 243,440 716,267 251,539 1,124,909
Receivables:
Interest 4,997,397 4,495,996 1,053,071 1,320,254
Investments sold -- 80,000 -- --
Other assets 27,930 23,437 8,492 8,512
------------------------------------------------------------------------------------------------------------------------------------
Total assets 388,695,516 368,673,537 77,795,865 88,639,830
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payables:
Investments purchased -- 7,853,181 -- 785,411
Forward swaps closed -- -- 44,375 133,125
Accrued expenses:
Management fees 199,913 185,693 21,694 24,473
Other 98,826 124,042 14,996 17,509
Preferred share dividends payable 31,932 37,468 3,083 5,507
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 330,671 8,200,384 84,148 966,025
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $256,364,845 $242,373,153 $52,711,717 $59,173,805
====================================================================================================================================
Common shares outstanding 16,301,498 15,817,596 3,308,738 3,724,790
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.73 $ 15.32 $ 15.93 $ 15.89
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 158,176 $ 33,087 $ 37,248
Paid-in surplus 230,742,390 216,385,838 46,949,541 52,797,234
Undistributed (Over-distribution of) net investment income (246,293) 759,544 367,990 (92,744)
Accumulated net realized gain from investments and
forward swaps 1,992,895 3,698,560 280,738 137,574
Net unrealized appreciation of investments 23,712,838 21,371,035 5,080,361 6,294,493
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $256,364,845 $242,373,153 $52,711,717 $59,173,805
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
65
Statement of
OPERATIONS Year Ended June 30, 2005
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $23,224,883 $13,549,712 $ 7,136,990 $5,074,838
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,979,532 1,792,913 949,314 667,852
Preferred shares - auction fees 405,000 229,000 120,000 86,250
Preferred shares - dividend disbursing agent fees 30,000 30,000 10,000 10,000
Shareholders' servicing agent fees and expenses 49,438 29,524 2,210 1,951
Custodian's fees and expenses 102,615 65,715 37,347 29,010
Directors'/Trustees' fees and expenses 10,360 6,113 3,145 2,235
Professional fees 27,321 19,596 14,423 12,754
Shareholders' reports - printing and mailing expenses 46,491 23,240 15,405 13,955
Stock exchange listing fees 11,035 10,689 558 384
Investor relations expense 62,948 32,537 19,810 14,718
Other expenses 41,897 18,896 15,057 12,793
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,766,637 2,258,223 1,187,269 851,902
Custodian fee credit (22,991) (14,923) (7,030) (4,760)
Expense reimbursement -- -- (444,164) (311,530)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,743,646 2,243,300 736,075 535,612
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 19,481,237 11,306,412 6,400,915 4,539,226
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 3,339,508 4,268,639 1,221,262 545,334
Net realized gain (loss) from forward swaps -- -- (201,571) (143,801)
Change in net unrealized appreciation (depreciation)
of investments 19,532,836 7,825,789 6,136,129 5,262,530
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 22,872,344 12,094,428 7,155,820 5,664,063
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,081,219) (1,150,783) (658,577) (500,033)
From accumulated net realized gains from investments (107,515) (121,121) -- (13,577)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,188,734) (1,271,904) (658,577) (513,610)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $40,164,847 $22,128,936 $12,898,158 $9,689,679
====================================================================================================================================
See accompanying notes to financial statements.
66
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $18,163,976 $17,483,668 $3,682,320 $4,078,638
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,423,772 2,258,985 496,304 556,336
Preferred shares - auction fees 330,000 295,250 62,500 71,250
Preferred shares - dividend disbursing agent fees 30,000 30,000 10,000 10,000
Shareholders' servicing agent fees and expenses 55,323 45,430 2,765 2,601
Custodian's fees and expenses 87,305 85,176 22,381 22,319
Directors'/Trustees' fees and expenses 8,351 7,673 1,683 1,818
Professional fees 23,641 22,274 11,693 11,949
Shareholders' reports - printing and mailing expenses 44,935 32,432 11,273 13,786
Stock exchange listing fees 10,689 10,690 281 317
Investor relations expense 53,017 49,271 10,719 12,388
Other expenses 28,381 28,214 13,225 12,953
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,095,414 2,865,395 642,824 715,717
Custodian fee credit (12,471) (10,866) (4,262) (3,900)
Expense reimbursement -- -- (231,502) (259,509)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,082,943 2,854,529 407,060 452,308
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,081,033 14,629,139 3,275,260 3,626,330
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain from investments 3,033,351 5,554,834 1,620,266 320,219
Net realized gain (loss) from forward swaps -- -- (232,654) (164,341)
Change in net unrealized appreciation (depreciation)
of investments 13,962,464 8,419,347 2,111,728 3,889,901
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain 16,995,815 13,974,181 3,499,340 4,045,779
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,017,435) (1,647,195) (327,355) (416,243)
From accumulated net realized gains from investments (138,958) (131,391) (58,447) (9,192)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,156,393) (1,778,586) (385,802) (425,435)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $29,920,455 $26,824,734 $6,388,798 $7,246,674
====================================================================================================================================
See accompanying notes to financial statements.
67
Statement of
CHANGES IN NET ASSETS
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
----------------------------- ------------------------------ ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04 6/30/05 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 19,481,237 $ 20,558,464 $ 11,306,412 $ 11,904,836 $ 6,400,915 $ 6,578,953
Net realized gain from investments 3,339,508 5,219,194 4,268,639 3,841,083 1,221,262 406,876
Net realized gain (loss) from
forward swaps -- -- -- -- (201,571) --
Change in net unrealized appreciation
(depreciation) of investments 19,532,836 (20,391,457) 7,825,789 (13,401,493) 6,136,129 (5,455,331)
Distributions to Preferred
Shareholders:
From net investment income (2,081,219) (1,019,897) (1,150,783) (596,849) (658,577) (359,649)
From accumulated net
realized gains
from investments (107,515) (272,572) (121,121) (114,819) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 40,164,847 4,093,732 22,128,936 1,632,758 12,898,158 1,170,849
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,283,118) (19,523,339) (11,079,485) (11,259,998) (6,070,304) (6,144,941)
From accumulated net
realized gains
from investments (2,241,452) (4,021,804) (2,620,075) (1,617,686) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (21,524,570) (23,545,143) (13,699,560) (12,877,684) (6,070,304) (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 770,952 2,153,223 -- 429,837 22,984 121,525
Preferred shares offering costs -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares
from capital
share transactions 770,952 2,153,223 -- 429,837 22,984 123,189
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 19,411,229 (17,298,188) 8,429,376 (10,815,089) 6,850,838 (4,850,903)
Net assets applicable
to Common shares
at the beginning of year 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 year $319,082,628 $299,671,399 $193,182,310 $184,752,934 $102,501,677 $ 95,650,839
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of year $ 934,719 $ 2,868,612 $ 1,224,771 $ 2,164,292 $ 568,730 $ 899,542
====================================================================================================================================
See accompanying notes to financial statements.
68
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
---------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04 6/30/05 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,539,226 $ 4,644,299 $ 15,081,033 $ 15,999,329 $ 14,629,139 $ 15,541,734
Net realized gain from investments 545,334 184,368 3,033,351 2,709,764 5,554,834 1,921,255
Net realized gain (loss) from
forward swaps (143,801) -- -- -- -- --
Change in net unrealized
appreciation (depreciation)
of investments 5,262,530 (3,908,064) 13,962,464 (18,659,657) 8,419,347 (14,322,786)
Distributions to Preferred
Shareholders:
From net investment income (500,033) (250,791) (2,017,435) (958,666) (1,647,195) (799,594)
From accumulated net
realized gains
from investments (13,577) (18,535) (138,958) (18,006) (131,391) (131,627)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common
shares from operations 9,689,679 651,277 29,920,455 (927,236) 26,824,734 2,208,982
-------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,140,074) (4,138,773) (14,534,163) (14,918,893) (14,724,745) (14,966,175)
From accumulated net
realized gains
from investments (237,176) (243,881) (2,308,550) (204,569) (2,842,911) (1,741,706)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,377,250) (4,382,654) (16,842,713) (15,123,462) (17,567,656) (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 -- 413,637 661,012 350,285
Preferred shares offering costs -- (2,307) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 34,204 -- 413,637 661,012 350,285
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares 5,312,429 (3,697,173) 13,077,742 (15,637,061) 9,918,090 (14,148,614)
Net assets applicable to Common
shares at the beginning of year 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 year $71,231,124 $65,918,695 $256,364,845 $243,287,103 $242,373,153 $232,455,063
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 337,234 $ 445,202 $ (246,293) $ 1,231,310 $ 759,544 $ 2,530,339
====================================================================================================================================
See accompanying notes to financial statements.
69
Statement of
CHANGES IN NET ASSETS (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,275,260 $ 3,431,079 $ 3,626,330 $ 3,654,980
Net realized gain from investments 1,620,266 265,020 320,219 201,991
Net realized gain (loss) from forward
swaps (232,654) -- (164,341) --
Change in net unrealized appreciation
(depreciation) of investments 2,111,728 (2,825,573) 3,889,901 (3,455,178)
Distributions to Preferred Shareholders:
From net investment income (327,355) (168,884) (416,243) (199,429)
From accumulated net realized gains
from investments (58,447) (40,997) (9,192) (49,773)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 6,388,798 660,645 7,246,674 152,591
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,171,680) (3,180,784) (3,283,404) (3,419,014)
From accumulated net realized gains
from investments (1,198,780) (570,305) (159,790) (579,472)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,370,460) (3,751,089) (3,443,194) (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 144,217 46,581 -- 17,176
Preferred shares offering costs -- -- -- (3,394)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common shares from
capital share transactions 144,217 48,245 -- 13,782
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,162,555 (3,042,199) 3,803,480 (3,832,113)
Net assets applicable to Common
shares at the beginning of year 50,549,162 53,591,361 55,370,325 59,202,438
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $52,711,717 $50,549,162 $59,173,805 $55,370,325
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 367,990 $ 593,042 $ (92,744) $ (19,053)
====================================================================================================================================
See accompanying notes to financial statements.
70
Notes to
FINANCIAL STATEMENTS
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
applicable state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
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 June 30, 2005, New
Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), Pennsylvania
Premium Income 2 (NPY), and Pennsylvania Dividend Advantage 2 (NVY) had
outstanding when-issued and/or delayed delivery purchase commitments of
$10,321,025, $5,912,620, $7,853,181, and $785,411, respectively. There were no
such outstanding purchase commitments in any of the other funds.
71
Notes to
FINANCIAL STATEMENTS (continued)
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. All monthly tax-exempt income dividends paid during the fiscal year ended
June 30, 2005, have been designated Exempt Interest Dividends. Net realized
capital gains and ordinary income distributions paid by the Funds are subject to
federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards. Distributions to Common shareholders of
tax-exempt net investment income, net realized capital gains and/or market
discount, if any, are recorded on the ex-dividend date. The amount and timing of
distributions are determined in accordance with federal income tax regulations,
which may differ from U.S. generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in 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
===============================================================================================================
72
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, and would increase (or decrease) in value based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swaps' termination date were to increase (or decrease). 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 on a net basis. Each Fund intends, but is not obligated to,
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To 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 predetermined threshold amount. At June 30, 2005, the
Funds did not have any forward swap contracts outstanding.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Indemnifications
Under the Funds' organizational documents, 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)
------------------------ ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04 6/30/05 6/30/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 49,812 136,119 -- 26,399 1,445 7,816
=========================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
-------------------------- ------------------------ -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04 6/30/05 6/30/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions -- 2,305 -- 26,180 42,619 21,918
=========================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/05 6/30/04 6/30/05 6/30/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 8,948 2,833 -- 1,068
=========================================================================================================
73
Notes to
FINANCIAL STATEMENTS (continued)
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended June 30, 2005, 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 $73,834,890 $59,823,825 $24,210,835 $11,024,984
Sales and maturities 69,102,963 61,246,019 25,271,967 11,450,188
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Purchases $69,344,822 $79,998,320 $10,033,879 $7,209,414
Sales and maturities 70,770,703 79,402,858 11,333,717 6,641,405
===============================================================================================================
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 investment
transactions.
At June 30, 2005, 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 $454,418,037 $267,114,148 $140,646,590 $97,646,286
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Cost of investments $359,704,963 $341,856,383 $71,478,721 $80,025,867
===============================================================================================================
74
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2005, 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 $26,956,819 $16,850,974 $8,857,010 $6,710,804
Depreciation (614,170) (55,720) (305,699) (137,899)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $26,342,649 $16,795,254 $8,551,311 $6,572,905
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $23,829,272 $21,685,840 $5,100,743 $6,310,737
Depreciation (107,486) (184,386) (96,701) (150,449)
---------------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $23,721,786 $21,501,454 $5,004,042 $6,160,288
===============================================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2005, 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 * $2,455,252 $1,957,962 $1,005,406 $666,880
Undistributed net ordinary income ** -- 8,126 -- 124
Undistributed net long-term capital gains 3,192,811 3,306,884 283,535 348,418
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 868,902 $1,756,762 $608,163 $146,085
Undistributed net ordinary income ** 8,580 41,520 -- --
Undistributed net long-term capital gains 1,984,315 3,689,922 376,400 288,023
===============================================================================================================
* Undistributed net tax exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2005, paid on July 1, 2005.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
75
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended June 30,
2005, and June 30, 2004, 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
2005 (NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $21,476,819 $12,307,476 $6,771,438 $4,644,877
Distributions from net ordinary income ** -- 3,453 -- 44
Distributions from net long-term capital gains 2,348,967 2,741,196 -- 250,753
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2005 (NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,672,670 $16,397,456 $3,485,060 $3,731,320
Distributions from net ordinary income ** 17,181 90,448 20,509 --
Distributions from net long-term capital gains 2,440,428 2,957,194 1,257,227 168,982
===============================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2004 (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
2004 (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.
76
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
As approved by the Board of Directors/Trustees, effective August 1, 2004, a
complex-wide management fee structure was adopted for all funds sponsored by the
Adviser, or its predecessor and its affiliates. This fee structure separates
each fund's management fee into two components - a complex-level component,
based on the aggregate amount of all fund assets managed by the Adviser, and a
specific fund-level component, based only on the amount of assets within each
individual fund. This pricing structure enables Nuveen fund shareholders to
benefit from growth in the assets within each individual fund as well as from
growth in the amount of complex-wide assets managed by the Adviser. 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 of July 31, 2005,
the complex-level fee rate was .1899%; that is, the funds' effective management
fees were reduced by approximately .0101%.
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
================================================================================
77
Notes to
FINANCIAL STATEMENTS (continued)
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
================================================================================
(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
================================================================================
78
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.
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. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors/Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
79
Notes to
FINANCIAL STATEMENTS (continued)
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on August 1, 2005, to shareholders of record
on July 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 $.0730 $.0710 $.0715 $.0765
===============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------------
Dividend per share $.0670 $.0710 $.0775 $.0670
===============================================================================================================
80
Financial
HIGHLIGHTS
81
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- --------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 $14.69 $ .95 $1.13 $(.10) $(.01) $1.97 $(.94) $(.11) $(1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
2001(a) 14.33 .14 .22 (.03) -- .33 (.14) -- (.14)
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(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 $-- $15.61 $15.25 15.13% 13.81%
2004 -- 14.69 14.19 (4.09) 1.26
2003 -- 15.65 15.94 11.68 10.72
2002 -- 15.07 15.22 4.19 6.56
2001 -- 15.03 15.50 17.13 10.62
NEW JERSEY PREMIUM
INCOME (NNJ)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 16.05 15.76 19.43 12.31
2004 -- 15.35 14.19 (5.65) .85
2003 -- 16.28 16.10 10.18 10.48
2002 -- 15.60 15.50 7.88 7.91
2001 -- 15.27 15.19 20.13 12.90
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.63 15.38 19.97 13.80
2004 -- 14.59 13.63 (5.13) 1.20
2003 .01 15.35 15.30 15.09 13.18
2002 -- 14.38 14.12 (.17) 6.05
2001(a) (.13) 14.39 14.99 .87 1.42
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.79 15.90 23.39 15.00
2004 -- 14.62 13.74 (4.81) 1.02
2003 -- 15.44 15.40 9.14 13.74
2002(b) (.14) 14.46 15.04 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 $319,083 1.21% 6.22% 1.20% 6.23% 15%
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
NEW JERSEY PREMIUM
INCOME (NNJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 193,182 1.18 5.91 1.17 5.92 21
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
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 102,502 1.19 5.94 .74 6.39 17
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 71,231 1.23 6.09 .77 6.54 11
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 $162,000 $25,000 $74,241
2004 162,000 25,000 71,246
2003 162,000 25,000 73,915
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
NEW JERSEY PREMIUM
INCOME (NNJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2005 91,600 25,000 77,724
2004 91,600 25,000 75,424
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2005 48,000 25,000 78,386
2004 48,000 25,000 74,818
2003 48,000 25,000 77,345
2002 48,000 25,000 74,026
2001(a) 48,000 25,000 74,055
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
---------------------------------------------------------------------------
Year Ended 6/30:
2005 34,500 25,000 76,617
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.
See accompanying notes to financial statements.
82-83 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------- ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 $14.92 $ .92 $1.05 $(.12) $(.01) $1.84 $(.89) $(.14) $(1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
2001(a) 14.33 .14 .35 (.03) -- .46 (.15) -- (.15)
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(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 $ -- $15.73 $15.16 19.53% 12.67%
2004 -- 14.92 13.58 (9.73) (.38)
2003 -- 15.91 16.01 11.98 14.79
2002 -- 14.70 15.18 6.57 7.34
2001 -- 14.57 15.13 11.99 7.75
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.32 15.16 17.79 11.80
2004 -- 14.74 13.84 (7.22) .94
2003 -- 15.65 16.00 15.09 12.09
2002 -- 14.83 14.79 13.25 8.88
2001 -- 14.44 13.87 19.04 13.25
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.93 16.14 21.84 13.02
2004 -- 15.32 14.39 (5.95) 1.30
2003 .02 16.25 16.46 18.13 15.95
2002 -- 14.96 14.89 9.10 9.67
2001(a) (.16) 14.48 14.49 (2.45) 2.06
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
-------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 -- 15.89 14.90 17.63 13.37
2004 -- 14.87 13.48 (8.58) .29
2003 -- 15.90 15.84 14.38 15.48
2002(b) (.14) 14.64 14.74 (.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 $256,365 1.23% 5.96% 1.22% 5.97% 18%
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
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 242,373 1.19 6.09 1.19 6.10 22
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
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2005 52,712 1.23 5.82 .78 6.28 13
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 59,174 1.23 5.80 .78 6.25 8
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 $132,000 $25,000 $73,554
2004 132,000 25,000 71,077
2003 132,000 25,000 74,039
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
--------------------------------------------------------------------------
Year Ended 6/30:
2005 118,100 25,000 76,307
2004 118,100 25,000 74,207
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------
Year Ended 6/30:
2005 25,000 25,000 77,712
2004 25,000 25,000 75,549
2003 25,000 25,000 78,591
2002 25,000 25,000 74,306
2001(a) 25,000 25,000 72,723
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------
Year Ended 6/30:
2005 28,500 25,000 76,907
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.
See accompanying notes to financial statements.
84-85 SPREAD
Board Members
AND OFFICERS
The management of the Fund, including general supervision of the duties
performed for the Fund by the Adviser, is the responsibility of the Board
Members of the Fund. The number of board members of the Fund is currently set at
nine. None of the board members who are not "interested" persons of the Fund has
ever been a director or employee of, or consultant to, Nuveen or its affiliates.
The names and business addresses of the board members and officers of the Fund,
their principal occupations and other affiliations during the past five years,
the number of portfolios each oversees and other directorships they hold are set
forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 155
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Chairman and Director (since
1997) of Nuveen Asset Management; Director (since 1996)
of Institutional Capital Corporation; Chairman and Director
(since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 155
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 155
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155
3/6/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously, Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at
Georgetown University; Director of Xerox Corporation
(since 2004).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (2004) as Chairman, JPMorgan Asset Management, 153
10/28/42 President and CEO, Banc One Investment Advisors Corporation,
333 W. Wacker Drive and President, One Group Mutual Funds; prior thereto,
Chicago, IL 60606 Executive Vice President, Banc One Corporation and Chairman
and CEO, Banc One Investment Management Group; Board
of Regents, Luther College; currently a member of the American
and Wisconsin Bar Associations.
86
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUND APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155
9/24/44 Officer, Miller-Valentine Partners Ltd., a real estate
333 W. Wacker Drive investment company; formerly, Vice President, Miller-Valentine
Chicago, IL 60606 Realty, a construction company; Board Member and Chair of the
Finance Committee, member of the Audit Committee of Premier
Health Partners, the not-for-profit company of Miami
Valley Hospital; Board Member, formerly Chair, Dayton
Development Coalition; President, Dayton Philharmonic
Orchestra Association; formerly, Member, Community Advisory
Board, National City Bank, Dayton, Ohio and Business
Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 155
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance (since 1997), 155
1/22/50 Northwestern University; Director (since 2003), Chicago
333 W. Wacker Drive Board of Options Exchange; Director (since 2003), National
Chicago, IL 60606 Mentor Holdings, a privately-held, national provider of home
and community-based services; Chairman (since 1997), Board
of Directors, Rubicon, an insurance company owned by
Northwestern University; Director (since 1997), Evanston
of Commerce and Evanston Inventure, a business
development organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President
(since 2000), of Nuveen Asset Management; Managing Director
(since 2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
87
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), previously, Vice President 155
9/22/63 (since 2002), formerly, Assistant Vice President (since 1999)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); 155
11/28/67 and Treasurer Vice President and Treasurer of Nuveen Investments, Inc.
333 W. Wacker Drive (since 1999); Vice President and Treasurer of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp (since 1999)(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc.;
Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002) and Assistant General Counsel 155
9/24/64 and Secretary (since 1998), formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); and (since 2005) Nuveen
Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 155
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory Corp.
Chicago, IL 60606 and Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 155
3/2/64 LLC; Managing Director (since 2001), formerly, Vice President
333 W. Wacker Drive (since 1995) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.(3); Managing Director (since 2001) of Nuveen
Asset Management; Vice President (since 2002) of Nuveen
Investment Advisers Inc.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp. (3); formerly, Senior Attorney (1994 to 2004), The Northern
Trust Company.
88
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999) of Nuveen Investments, LLC. 155
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc. and
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel
(since 1998) of Rittenhouse Asset Management; Vice
President and Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); Assistant Secretary of NWQ
Investment Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Fund, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
89
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of each Fund,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group") and if available, with recognized or, in certain
cases, customized benchmarks; the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the advisory fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contract. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group and, if available, recognized
benchmarks or, in certain cases, customized benchmarks (as described in further
detail in Section B below); information describing NAM's organization and its
various departments, the experience and responsibilities of key personnel, and
available resources. In the discussion of key personnel, the Trustees received
materials regarding the changes or additions in personnel of NAM. The Trustees
further noted the willingness of the personnel of NAM to engage in open, candid
discussions with the Board. The Trustees further considered the quality of NAM's
investment process in making portfolio management decisions, including any
refinements or improvements to the portfolio management processes, enhancements
to technology and systems that are available to portfolio managers, and any
additions of new personnel which may strengthen or expand the research and
investment capabilities of NAM. In their review of advisory contracts for the
fixed income funds, the Trustees also noted that Nuveen won the Lipper Award for
Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the Trustees'
experience with the Funds, other Nuveen funds and NAM, the Trustees noted that
they were familiar with and continue to have a good understanding of the
organization, operations and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Fund with such administrative and other services (exclusive of,
and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the
90
activities of other service providers; administering and organizing Board
meetings and preparing the Board materials for such meetings; providing legal
support (such as helping to prepare registration statements, amendments thereto
and proxy statements and responding to regulatory inquiries); and performing
other Fund administrative tasks necessary for the operation of the respective
Fund (such as tax reporting and fulfilling regulatory filing requirements). In
addition, in evaluating the administrative services, the Trustees considered, in
particular, NAM's policies and procedures for assuring compliance with
applicable laws and regulations in light of the new SEC regulations governing
compliance. The Trustees noted NAM's focus on compliance and its compliance
systems. In their review, the Trustees considered, among other things, the
additions of experienced personnel to NAM's compliance group and modifications
and other enhancements to NAM's computer systems. In addition to the foregoing,
the Trustees also noted that NAM outsources certain services that cannot be
replicated without significant costs or at the same level of expertise. Such
outsourcing has been a beneficial and efficient use of resources by keeping
expenses low while obtaining quality services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, such as the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
Funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable Fund's duration within certain benchmarks.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the Funds under
the Investment Management Agreements were of a high level and were quite
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group, if available. Among other things, the
Board received materials reflecting a Fund's historic performance, the Fund's
performance compared to its Peer Group and, if available, its performance
compared to recognized and, in certain cases, customized benchmarks. Further, in
evaluating the performance information, in certain limited instances, the
Trustees noted that the closest Peer Group for a Fund still would not adequately
reflect such Fund's investment objectives and strategies, thereby limiting the
usefulness of the comparisons of such Fund's performance with that of the Peer
Group.
For state municipal funds, such as the Funds, the performance data included,
among other things, the respective Fund's performance relative to its peers.
More specifically, a Fund's one, three and five year total returns (as
available) for the periods ending December 31, 2004 were evaluated relative to
the unaffiliated funds in its respective Peer Group (including the returns of
individual peers as well as the Peer Group average) as well as additional
performance information with respect to all the funds in the Peer Group, subject
to the following. Certain state municipal Funds do not have a corresponding Peer
Group in which case their performance is measured against a state-specific
municipal index compiled by an independent third party. Such indices measure
bond performance rather than fund performance. The closed-end Funds that utilize
such indices are from Connecticut, Georgia, Maryland, Missouri, North Carolina,
Texas and Virginia. Based on their review, the Trustees determined that each
Fund's absolute and relative investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the Fund's current management fee structure and
the Fund's expected expense ratios in absolute terms as well as compared with
the fees and expense ratios of the unaffiliated funds in its Peer Group. The
Trustees reviewed the financial information of NAM, including its respective
revenues, expenses and profitability. In reviewing fees, the Trustees, among
other things, reviewed comparisons of the Fund's gross management fees (fees
after fund-level and complex-wide level breakpoints but before reimbursement
and fee waivers), net management fees (after breakpoints and reimbursements
and fee waivers) and total expense ratios (before and after waivers) with
those of the unaffiliated funds in the Peer Group and peer averages. In this
regard, the Trustees noted that the relative ranking of the Nuveen Funds on
fees and expenses was aided by the significant level of fee reductions
provided by the fund-level and complex-wide breakpoint schedules, and the fee
waivers and reimbursements provided by Nuveen for certain Funds launched
since 1999. The complex-wide breakpoint schedule was instituted in 2004 and
is described in further detail below in Section D entitled "Economies of
Scale." In their review of the fee and expense information provided,
including, in particular, the expense ratios of the unaffiliated funds in the
respective Peer Group, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to such peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts
91
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
are generally lower than those charged to the comparable Fund. The Trustees
noted, however, the additional services that are provided and the costs
incurred by Nuveen in managing and operating registered investment companies,
such as the Funds, compared to individually managed separate accounts. For
instance, as described above, NAM and its affiliates provide numerous
services to the Funds including, but not limited to, preparing shareholder
reports; providing daily accounting; preparing quarterly financial
statements; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the
Board materials for such meetings; providing legal support; and administering
all other aspects of the Fund's operations. Further, the Trustees noted the
increased compliance requirements for funds in light of new SEC regulations
and other legislation. These services are generally not required to the same
extent, if at all, for separate accounts. In addition to the differences in
services, the Trustees also considered, among other things, the differences
in product distribution, investment policies, investor profiles and account
sizes. Accordingly, the Trustees believe that the nature and number of
services provided to operate a Fund merit the higher fees than those to
separate managed accounts.
3. PROFITABILITY OF ADVISER
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grows and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Funds for the period of August 1, 2004 to December
31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all Funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently was acceptable and desirable in providing benefits from
economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM
92
typically manages the portfolios of the municipal funds in the Nuveen complex
and municipal bonds generally trade on a principal basis. Accordingly, NAM does
not currently have any soft dollar arrangements and does not pay excess
brokerage commissions (or spreads on principal transactions) in order to receive
research services. In addition to soft dollar arrangements, the Trustees also
considered any other revenues, if any, received by NAM or its affiliates. With
respect to Funds with outstanding preferred shares and new Funds, the Trustees
considered revenues received by Nuveen for serving as agent for broker-dealers
at its preferred trading desk and for acting as co-manager in the initial public
offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers.
As noted, St. Paul earlier this year announced its intention to divest its
equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of
transactions, St. Paul has begun to reduce its interest in Nuveen which will
ultimately result in a change of control of Nuveen and therefore NAM. As
mandated by the 1940 Act, such a change in control would result in an assignment
of the advisory agreement with NAM and the automatic termination of such
agreement. Accordingly, the Board also considered for each Fund the approval of
a New Investment Management Agreement with each Fund in light of, and which
would take effect upon, the anticipated change of control. More specifically,
the Board considered for each Fund a New Investment Management Agreement on
substantially identical terms to the existing Investment Management Agreement,
to take effect after the change of control has occurred and the contract has
been approved by Fund shareholders. In its review, the Board considered whether
the various transactions necessary to divest St. Paul's interest will have an
impact on the various factors they considered in approving NAM, such as the
scope and quality of services to be provided following the change of control. In
reviewing the St. Paul transactions, the Board considered, among other things,
the impact, if any, on the operations and organizational structure of NAM; the
possible benefits and costs of the transactions to the respective Fund; the
potential implications of any arrangements used by Nuveen to finance certain of
the transactions; the ability of NAM to perform its duties after the
transactions; whether a Fund's fee structure or expense ratio would change; any
changes to the current practices of the respective Fund; any changes to the
terms of the advisory agreement; and any anticipated changes to the operations
of NAM. Based on its review, the Board determined that St. Paul's divestiture
would not affect the nature and quality of services provided by NAM, the terms
of the Investment Management Agreement, including the fees thereunder, and would
not materially affect the organization or operations of NAM. Accordingly, the
Board determined that their analysis of the various factors regarding their
approval of NAM would continue to apply after the change of control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the respective Fund Adviser's fees are reasonable in
light of the services provided to each Fund, that the renewal of the NAM
Investment Management Agreements should be approved, and that the new,
post-change of control NAM Investment Management Agreements be approved and
recommended to shareholders.
93
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
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
94
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26. 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
Fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
95
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 $120 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-B-0605D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen New Jersey Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 9,138 $ 0 $ 624 $ 2,700
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 8,677 $ 0 $ 1,212 $ 2,500
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. The
above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
---------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 0 $ 282,575 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 3,324 $ 282,575 $ 0 $ 285,899
June 30, 2004 $ 3,712 $ 0 $ 0 $ 3,712
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") (15 U.S.C.
78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner,
Lawrence H. Brown, Jack B. Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen 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: September 7, 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: September 7, 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: September 7, 2005
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* Print the name and title of each signing officer under his or her signature.