UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6265
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Nuveen Pennsylvania Investment Quality Municipal Fund
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
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, 2003
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Date of reporting period: June 30, 2003
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
ANNUAL REPORT June 30, 2003
NEW JERSEY
NQJ
NNJ
NXJ
NUJ
PENNSYLVANIA
NQP
NPY
NXM
NVY
PHOTO OF: WOMAN AND CHILD RIDING BIKES.
PHOTO OF: 2 WOMEN AND CHILD.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
By registering for electronic delivery, you will receive an e-mail as soon as
your Nuveen Fund information is available. Click on the link and you will be
taken directly to the report. Your Fund report can be viewed and saved on your
computer. Your report will arrive faster via e-mail than by traditional mail.
Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
--------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Timothy R. Schwertfeger
Chairman of the Board
Photo of: Timothy R. Schwertfeger
Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A
WELL-BALANCED PORTFOLIO ..... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR
LONG-TERM FINANCIAL GOALS."
Dear
SHAREHOLDER
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with tax-free monthly income and an
attractive total return. For more specific information about the performance of
your Fund, please see the Portfolio Manager's Comments and Performance Overview
sections of this report.
With interest rates at historically low levels, many have begun to wonder
whether interest rates will rise, and whether that possibility should cause them
to adjust their holdings of fixed-income investments. No one knows what the
future will bring, which is why we think a well-balanced portfolio that is
structured and carefully monitored with the help of an investment professional
is an important component in achieving your long-term financial goals. A
well-diversified portfolio may actually help to reduce your overall investment
risk, and we believe that municipal bond investments like your Nuveen Fund can
be important building blocks in a portfolio crafted to perform well through a
variety of market conditions.
I'd also like to direct your attention to the inside front cover of this report,
which explains the quick and easy process to begin receiving Fund reports like
this via e-mail and the internet. Thousands of Nuveen Fund shareholders already
have signed-up, and they are getting their Fund information faster and more
conveniently than ever. I urge you to consider joining them.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. 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, 2003
1
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 economic and market conditions, key
investment strategies and the recent performance of the Funds. With 12 years of
investment experience, Paul assumed portfolio management responsibility for
these Funds in January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH PERIOD ENDED JUNE 30, 2003?
As has been the case for some time, we believe the two biggest influences on the
general economy and the municipal market for this reporting period were the slow
pace of economic recovery and historically low interest rates. We don't yet see
a change in this pattern. In late June 2003, the Federal Reserve, citing a U.S.
economy that "has yet to exhibit sustainable growth," cut the fed funds rate by
25 basis points to 1.0%, its lowest level since 1958. A few days later, the GDP
for the first quarter of 2003 was revised downward to 1.4%.
In addition to historically low interest rates and sluggish economic growth, the
core rate of inflation continued to hover around 1.5% throughout the second
quarter of 2003, the smallest year-over-year increase in 37 years. This
combination of low interest rates, slow economic recovery and the lack of
inflationary pressures created conditions that helped many municipal bonds
perform well over the period covered by this report.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
Aided by a diverse economic base and highly skilled workforce, New Jersey's
economy performed reasonably well during the reporting period, adding jobs in
sectors such as construction, retail, education and healthcare. The state also
benefited from an influx of financial services jobs from New York City as well
as growth in its sizable pharmaceutical industry. However, like many other
states, New Jersey continues to grapple with budgetary stress resulting from
falling tax revenues. Since 1996, New Jersey's debt levels have increased 60%.
During the first six months of 2003, New Jersey issued $9.2 billion in new
municipal bonds, up 115% over the same period in 2002. As of June 30, 2003, the
state's credit rating remained at Aa2 with a negative outlook, while Standard &
Poor's rated the state AA with a stable outlook.
Pennsylvania's economy continued to reflect the national slowdown, faring about
the same as other large Northeastern states. Although Pennsylvania is working to
improve its business environment and develop value-added industries, employment
trends in most of its major industry groups remained weak, with only the health
services and leisure/hospitality sectors showing modest growth. Manufacturing,
in particular the commonwealth's makers of steel, industrial machinery, and
electronic and electrical equipment, continued to suffer, with employment in
this sector declining 5% from the previous year. After exhausting its rainy day
reserves in fiscal 2002, the commonwealth managed to avoid a major tax increase
for fiscal 2004 by relying primarily on $1.6 billion in spending cuts to close a
$2.4 billion gap in the $21 billion budget. Municipal issuance in Pennsylvania
during the first six months of 2003 totaled $7.6 billion, an increase of 6% over
the same period in 2002. As of June 30, 2003, the commonwealth's credit rating
with Moody's and Standard & Poor's was Aa2/AA, respectively, with stable
outlooks.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE MONTHS ENDED JUNE 30, 2003?
Individual results for the Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
2
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
--------------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
6/30/03 EQUIVALENT3 6/30/03 6/30/03 6/30/03
--------------------------------------------------------------------------------
NQJ 5.95% 8.81% 10.72% 8.74% 11.86%
--------------------------------------------------------------------------------
NNJ 5.81% 8.61% 10.48% 8.74% 11.86%
--------------------------------------------------------------------------------
NXJ 6.00% 8.89% 13.18% 8.74% 11.86%
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NUJ 5.96% 8.83% 13.74% 8.74% 11.86%
--------------------------------------------------------------------------------
NQP 5.70% 8.14% 14.79% 8.74% 13.76%
--------------------------------------------------------------------------------
NPY 5.93% 8.47% 12.09% 8.74% 13.76%
--------------------------------------------------------------------------------
NXM 5.80% 8.29% 15.95% 8.74% 13.76%
--------------------------------------------------------------------------------
NVY 5.80% 8.29% 15.48% 8.74% 13.76%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the twelve months ended June 30, 2003, all of the Funds in this report
outperformed the national, unleveraged Lehman Brothers Municipal Bond Index.
Much of this outperformance is attributable to the Funds use of leverage, a
strategy that can provide the opportunity for additional income for common
shareholders. Leverage can work especially well during periods of low short-term
interest rates, as was the case for the twelve months ended June 30, 2003.
In addition, a number of these Funds benefited from the length of their
durations.4 During periods of declining interest rates, such as that we
experienced over most of the reporting period, longer duration investments
generally performed well. As of June 30, 2003, the durations of NXJ, NUJ, NQP,
NXM and NVY ranged from 10.05 to 11.12, compared with 7.94 for the Lehman index
(see the individual Performance Overview pages for each Fund for their
individual durations). NQJ, NNJ, and NPY had relatively higher exposures to
bonds with short call positions over the reporting period. This tended to
shorten their durations and modestly affected their performance relative to the
longer duration Funds.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-payment capabilities of these Funds benefited from their use of
leverage. The extent of this benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable
the Funds to reduce the amount of income paid to MuniPreferred shareholders,
which can potentially leave more earnings to support common share dividends.
During the 12 months ended June 30, 2003, the continued low level of short-term
interest rates enabled us to implement three dividend increases in NNJ, NXJ and
NXM, and two in NQJ and NPY. As of June 2003, NQP had paid stable, attractive
dividends for 37 consecutive months, while NUJ and NVY had offered shareholders
steady dividends for 14 consecutive months.
Over the course of this reporting period, strong investor demand and favorable
market conditions helped to boost the share prices and net asset values of all
of these Funds. As of June 30, 2003, NQJ, NQP, NPY and NXM were trading at
premiums to their common share NAVs, while NNJ, NXJ, NUJ and NVY were trading at
discounts (see charts on the individual Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE YEAR ENDED JUNE
30, 2003?
Over this reporting period, we continued to place strong emphasis on
diversifying the Funds' portfolios, enhancing their call protection and
supporting their dividend-paying capabilities. Strategically, our focus centered
on systematically shortening the Funds' durations, which we believe will enhance
our ability to manage the Funds' interest rate risk over time. Interest rate
risk is the risk that the value of the bonds in a Fund's portfolio will decline
if interest rates rise (since bond prices move in the opposite direction of
interest rates). The longer the duration of a Fund's portfolio, the greater its
interest rate risk.
In line with our desire to shorten durations, we concentrated on finding value
in the long-intermediate part of the yield curve (i.e., bonds
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, 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 total returns of the Nuveen New Jersey Funds are compared with the average
annualized return of the 12 funds in the Lipper New Jersey Municipal Debt
Funds category, while the total returns of the Nuveen Pennsylvania Funds are
compared with the average annualized return of the 11 funds in the Lipper
Pennsylvania Municipal Debt Funds category. Fund and Lipper returns assume
reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 28% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: New Jersey 32.5% and Pennsylvania 30%.
4 Duration is a measure of a Fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a Fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
Fund. References to duration in this commentary are intended to indicate Fund
duration unless otherwise noted.
3
that mature in about 15 years). In many cases, bonds in this part of the curve
were offering yields similar to those of longer-term bonds but, in our opinion,
had less inherent interest rate risk. In the older Funds, especially NQJ, NNJ
and NPY, general market trends over the reporting period caused a number of
holdings to be priced to call dates, rather than to maturity. This also served
to shorten duration.
In general, continued strong issuance in the New Jersey and Pennsylvania
municipal markets over the past year helped us find additional opportunities to
purchase the types of bond structures we favor. However, some of the benefits of
increased issuance were offset by the fact that many of the new New Jersey bonds
came predominately from the tobacco and transportation sectors. Pennsylvania
issuance was dominated by unusually heavy issuance of general obligation debt by
smaller local governments.
Over the reporting period, the New Jersey and Pennsylvania Funds generally had
meaningful holdings of education and healthcare bonds, which were among the top
performing Lehman revenue sectors for this reporting period. In addition, we
purchased a sizable number of new New Jersey Turnpike Authority bonds. As part
of a merger of the turnpike authorities in New Jersey, some of the older New
Jersey Turnpike bonds were advance refunded, which enhanced the credit quality
of our Funds' holdings.
As of June 30, 2003, each of the New Jersey Funds held less than 5% of its
portfolio in bonds backed by the 1998 master tobacco settlement agreement.
Driven mainly by ongoing budget problems, the state followed an August 2002
issuance of $1.8 billion in tobacco bonds with an additional $1.7 billion
issuance in February 2003. We participated in both offerings, taking advantage
of the relatively higher yields (approximately 7% versus 4.5% for similarly
rated bonds at that time) provided by these credits. In recent months, we have
seen the prices of tobacco bonds weaken as the result of lawsuits involving the
major tobacco companies as well as the increased issuance of such bonds by
different states. Although the sector as a whole produced negative returns over
the twelve months ended June 30, 2003, tobacco bonds showed some recovery toward
the end of the reporting period. At the present time, we plan to maintain our
current tobacco holdings while we continue to regularly evaluate the situation.
Over the course of the reporting period, we reduced our exposure to bonds issued
by U. S. territories, such as Puerto Rico or Guam. These bonds were initially
purchased to add diversity and yield at times of tighter municipal supply. With
bonds now more plentiful, this need is not as acute.
In addition, in light of the ongoing weakness in the airline industry, we also
trimmed the New Jersey Funds' exposure to airline-backed bonds, selling
approximately half of NXJ's holdings backed by Continental Airlines and
eliminating NQJ's and NUJ's positions in Delta-backed bonds. NQJ continues to
hold less than 1% of its portfolio's par value in bonds backed by American
Airlines, while we have maintained an exposure of approximately 2% to the
Newark/Continental bonds in both NXJ and NUJ.
In the Pennsylvania Funds, we worked to reduce our allocations of general
obligation bonds (GOs), although this has been somewhat difficult given the
recent preponderance of GOs in the Pennsylvania market. In addition, we have
begun to limit or modestly reduce our exposure to AMT (alternative minimum tax)
bonds, following a consistent widening of spreads relative to Treasuries over
the reporting period.
Given the geopolitical and economic climate, we believed that strong credit
quality remained a vital requirement. As of June 30, 2003, each of the New
Jersey and Pennsylvania Funds offered
4
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 60% to 89%. In general, our weightings in insured and AAA
bonds benefited the performance of these Funds during the past year.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THE FUNDS IN
PARTICULAR?
Nationally, we think the supply of new municipal bonds should remain strong, as
issuers continue to take advantage of the low rate environment. In addition,
many states continue to face budget problems and the ongoing need to raise money
to cover the costs of essential services, including infrastructure and
healthcare.
Looking ahead, we will continue to reduce some of the Funds' call exposure. As
of June 30, 2003, the call exposure of the older Funds--NQJ, NNJ, NQP and
NPY--ranged from 9% to 17% through 2005. The number of actual calls will depend
largely on market interest rates in coming months. The newer Funds--NXJ, NUJ,
NXM, and NVY--will not face any significant call exposure for several years.
In the months ahead, our primary goal will be to continue managing the Funds'
durations. We also plan to continue to closely monitor the New Jersey Funds'
holdings of tobacco and airline bonds as well as the budgetary situations in
both states for any potential impact on credit ratings. Overall, we plan to
continue to emphasize strategies that we think will add value for our
shareholders and provide support for the Funds' long-term dividend-paying
capabilities.
5
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of June 30, 2003
NQJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 74%
AA 8%
A 9%
BBB 6%
NR 1%
BB or lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.94
--------------------------------------------------
Common Share Net Asset Value $15.65
--------------------------------------------------
Market Yield 5.95%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.26%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.81%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $316,970
--------------------------------------------------
Average Effective Maturity (Years) 20.65
--------------------------------------------------
Leverage-Adjusted Duration 8.11
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.68% 10.72%
--------------------------------------------------
5-Year 4.82% 6.47%
--------------------------------------------------
10-Year 5.72% 6.47%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 25%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Tax Obligation/Limited 11%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Tax Obligation/General 8%
--------------------------------------------------
Bar Chart:
2002-2003 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 0.078
Apr 0.078
May 0.078
Jun 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 15.57
15.68
15.75
15.44
15.55
15.47
15.79
15.6
15.55
15.88
15.64
15.5
14.84
14.6
15.03
15
15.19
14.94
15.08
15.13
14.79
14.73
14.86
15.14
15.02
14.75
14.88
15.12
15.48
15.36
15.31
15.46
15.68
15.4
15.14
15.3
15.42
15.21
15.42
15.47
15.52
15.73
15.92
15.91
16.12
16.1
6/30/03 15.94
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0664 per share.
6
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of June 30, 2003
NNJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 78%
AA 9%
A 9%
BBB 2%
NR 1%
BB OR LOWER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.10
--------------------------------------------------
Common Share Net Asset Value $16.28
--------------------------------------------------
Market Yield 5.81%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.07%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.61%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $195,568
--------------------------------------------------
Average Effective Maturity (Years) 15.61
--------------------------------------------------
Leverage-Adjusted Duration 7.78
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 10.18% 10.48%
--------------------------------------------------
5-Year 6.62% 7.07%
--------------------------------------------------
10-Year 6.78% 7.02%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 23%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.073
Aug 0.073
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0755
Jan 0.0755
Feb 0.0755
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 15.58
15.45
15.52
15.3
15.35
15.42
15.5
15.37
15.45
15.55
15.58
15.6
16
15.86
15.58
15.21
15.07
15.14
15.09
15.01
15.01
15.02
14.83
14.82
14.85
15.18
15.42
15.2
14.94
15.04
15.1
15.15
15.28
15.23
15.55
15.64
15.6
15.2
15.34
15.34
15.16
15.38
15.52
15.58
15.9
16.03
15.95
16.22
16
6/30/03 16.14
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0099 per share.
7
Nuveen New Jersey Dividend Advantage Municipal Fund
Performance
OVERVIEW As of June 30, 2003
NXJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 70%
AA 1%
A 19%
BBB 6%
BB OR LOWER 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.30
--------------------------------------------------
Common Share Net Asset Value $15.35
--------------------------------------------------
Market Yield 6.00%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.33%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.89%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $100,502
--------------------------------------------------
Average Effective Maturity (Years) 22.94
--------------------------------------------------
Leverage-Adjusted Duration 10.05
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.09% 13.18%
--------------------------------------------------
Since Inception 6.76% 9.11%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 21%
--------------------------------------------------
Water and Sewer 18%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jul 0.071
Aug 0.071
Sep 0.071
Oct 0.071
Nov 0.071
Dec 0.072
Jan 0.072
Feb 0.072
Mar 0.075
Apr 0.075
May 0.075
Jun 0.0765
LINE CHART:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 14.49
14.3
14.55
14.26
14.5
14.62
14.4
14.55
14.59
14.71
14.66
14.75
14.82
14.63
14.5
13.91
13.6
13.94
13.67
13.86
13.29
13.38
13.6
13.69
13.8
14.16
14
13.99
14
14.02
14.13
14.1
14.06
13.95
14.22
14.6
14.43
14.05
14.29
14.43
14.39
14.49
14.5
14.71
14.8
15.19
15.04
15.16
15.12
6/30/03 15.12
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32.5%.
8
Nuveen New Jersey Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of June 30, 2003
NUJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 2%
A 16%
BBB 19%
NR 1%
BB or lower 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.40
--------------------------------------------------
Common Share Net Asset Value $15.44
--------------------------------------------------
Market Yield 5.96%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.28%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.83%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $69,616
--------------------------------------------------
Average Effective Maturity (Years) 21.97
--------------------------------------------------
Leverage-Adjusted Duration 10.81
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.14% 13.74%
--------------------------------------------------
Since Inception 8.26% 12.48%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 19%
--------------------------------------------------
Healthcare 18%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Education and Civic Organizations 11%
--------------------------------------------------
U.S. Guaranteed 10%
--------------------------------------------------
Bar Chart:
2002-2003 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.
7/1/02 15.55
15.2
15.13
15.22
15.85
15.37
15.16
15.32
15.16
15.48
15.52
15.47
15.54
15.57
15.37
14.84
14.4
14.28
14.2
14.26
13.92
14.03
14.01
14.42
14.35
14.65
14.72
14.25
14.45
14.65
14.66
14.61
14.57
14.78
14.7
14.82
14.5
14.22
14.57
14.88
14.62
14.54
14.78
15
15.04
15.15
15.2
15.29
15.35
6/30/03 15.39
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 32.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0319 per share.
9
Nuveen Pennsylvania Investment Quality Municipal Fund
Performance
OVERVIEW As of June 30, 2003
NQP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 70%
AA 19%
A 7%
BBB 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.01
--------------------------------------------------
Common Share Net Asset Value $15.91
--------------------------------------------------
Market Yield 5.70%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.92%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.14%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $258,924
--------------------------------------------------
Average Effective Maturity (Years) 21.51
--------------------------------------------------
Leverage-Adjusted Duration 10.36
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 11.98% 14.79%
--------------------------------------------------
5-Year 4.89% 6.55%
--------------------------------------------------
10-Year 5.70% 6.48%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 22%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Transportation 8%
--------------------------------------------------
Bar Chart:
2002-2003 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 0.078
Apr 0.078
May 0.078
Jun 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 15.4
15.3
15.15
15.15
15.24
15.32
15.1
15.12
15.15
15.47
15.4
15.48
15.65
15.6
15.22
14.76
14.25
14.3
14.75
14.6
14.44
14.56
14.89
14.4
14.28
14.5
14.75
14.54
14.8
14.7
14.81
15.04
14.9
14.9
15.02
15.1
14.91
15.01
15.23
15.24
15.03
15.15
15.24
15.58
15.91
15.96
15.92
16.02
16.01
6/30/03 15.95
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 30%.
10
Nuveen Pennsylvania Premium Income Municipal Fund 2
Performance
OVERVIEW As of June 30, 2003
NPY
Pie Chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 73%
AA 10%
A 5%
BBB 9%
NR 2%
BB OR LOWER 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.00
--------------------------------------------------
Common Share Net Asset Value $15.65
--------------------------------------------------
Market Yield 5.93%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.24%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.47%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $246,604
--------------------------------------------------
Average Effective Maturity (Years) 18.84
--------------------------------------------------
Leverage-Adjusted Duration 8.93
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.09% 12.09%
--------------------------------------------------
5-Year 10.00% 7.00%
--------------------------------------------------
10-Year 7.20% 6.82%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Transportation 10%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0755
Aug 0.0755
Sep 0.0755
Oct 0.0755
Nov 0.0755
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 14.95
15.17
14.84
15.06
15.05
15.1
14.92
14.8
14.79
14.89
14.95
15.14
15.13
15.08
14.74
14.33
13.93
14.02
14.27
14.18
14.23
14.04
14.27
14.09
14.15
14.22
14.34
14.52
14.39
14.83
14.59
14.75
14.56
14.7
14.9
15
15.03
14.74
14.91
14.7
14.88
15.04
15
15.54
15.42
15.9
15.86
16
16.06
6/30/03 16
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 30%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.0053 per share.
11
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Performance
OVERVIEW As of June 30, 2003
NXM
Pie Chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 56%
AA 16%
A 14%
BBB 9%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.46
--------------------------------------------------
Common Share Net Asset Value $16.25
--------------------------------------------------
Market Yield 5.80%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.29%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $53,591
--------------------------------------------------
Average Effective Maturity (Years) 20.81
--------------------------------------------------
Leverage-Adjusted Duration 11.12
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 18.13% 15.95%
--------------------------------------------------
Since Inception 10.69% 12.23%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 28%
--------------------------------------------------
Education and Civic Organizations 20%
--------------------------------------------------
Healthcare 13%
--------------------------------------------------
Long-Term Care 8%
--------------------------------------------------
Transportation 7%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0735
Aug 0.0735
Sep 0.0745
Oct 0.0745
Nov 0.0745
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.0795
Apr 0.0795
May 0.0795
Jun 0.0795
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/02 15.19
15.2
14.92
14.92
15.5
15.28
15.25
15.1
15.09
15.3
15.25
15.3
15.65
15.7
15.4
14.83
14.68
14.3
14.49
14.59
14.27
14.6
14.59
14.31
14.32
14.42
15.04
14.82
14.68
15
15.13
15.17
14.97
15.4
15.6
15.46
15.5
15.32
15.36
15.32
15.33
15.48
15.43
15.44
15.85
16.06
16.22
16.33
16.18
6/30/03 16.4
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 30%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0995 per share.
12
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of June 30, 2003
NVY
Pie Chart:
CREDIT QUALITY
AAA/U.S. GUARANTEED 59%
AA 28%
A 3%
BBB 9%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.84
--------------------------------------------------
Common Share Net Asset Value $15.90
--------------------------------------------------
Market Yield 5.80%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.06%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.29%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $59,202
--------------------------------------------------
Average Effective Maturity (Years) 18.60
--------------------------------------------------
Leverage-Adjusted Duration 10.74
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 14.38% 15.48%
--------------------------------------------------
Since Inception 10.56% 14.92%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 27%
--------------------------------------------------
Tax Obligation/Limited 24%
--------------------------------------------------
Education and Civic Organizations 13%
--------------------------------------------------
Utilities 7%
--------------------------------------------------
Healthcare 7%
--------------------------------------------------
Bar Chart:
2002-2003 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.
7/1/02 14.74
15.15
15.2
15.83
14.99
14.2
14.58
15.01
15.13
15.19
15.26
15.79
6/30/03 15.84
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 28%. The rate shown for federal and state highlights the added value of
owning shares that are also exempt from state income taxes. It is based on
a combined federal and state income tax rate of 30%.
2 The Fund also paid shareholders a capital gains distribution in December
2002 of $0.0295 per share.
13
Report of
INDEPENDENT AUDITORS
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, 2003, and the related statements of operations, changes
in net assets 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 auditing standards generally accepted
in the 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. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned as of June 30, 2003, by correspondence with the
custodian and brokers or by other appropriate auditing procedures where replies
from brokers were not received. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. 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, 2003,
and the results of their operations, changes in their net assets and their
financial highlights for the periods indicated therein in conformity with
accounting principles generally accepted in the United States.
Ernst & Young LLP
Chicago, Illinois
August 8, 2003
14
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.0%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
$ 9,125 5.750%, 6/01/32 6/12 at 100.00 A- $ 8,042,958
3,000 6.000%, 6/01/37 6/12 at 100.00 A- 2,471,010
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 A- 2,950,528
2,625 6.375%, 6/01/32 6/13 at 100.00 A- 2,368,774
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.1%
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,591,650
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
4,390 New Jersey Higher Education Student Assistance Authority, 6/10 at 101.00 AAA 4,842,214
Student Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17
(Alternative Minimum Tax) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Saint Peter's College Issue, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 909,710
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,507,503
1,250 New Jersey Educational Facilities Authority, Revenue Refunding 7/08 at 101.00 AAA 1,303,588
Bonds, Seton Hall University Project, Series 1998F,
5.000%, 7/01/21 - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,043,190
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 1,083,670
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,091,478
1,250 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 1,250,163
Princeton University, Series 2000E, 5.500%, 7/01/03
750 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 804,765
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
2,000 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AAA 2,095,220
Bonds, 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 2,052,440
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 -
ACA Insured
5,120 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 5,382,246
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 4,395,591
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart
Project, Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry, New Jersey, Certificates
of Participation, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,087,335
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,452,077
University of Medicine and Dentistry, New Jersey, Revenue
Bonds, Series 2002A:
2,000 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,101,900
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,432,480
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.0%
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,507,110
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
15
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 4,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/03 at 100.00 AAA $ 4,368,879
Bonds, Mercer Medical Center Issue, Series 1991,
6.500%, 7/01/10 - MBIA Insured
2,535 New Jersey Health Care Facilities Financing Authority, Revenue 7/03 at 102.00 Baa2 2,581,669
Bonds, Deborah Heart and Lung Center Issue, Series 1993,
6.200%, 7/01/13
6,150 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 6,377,796
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center Issue, Series 2001, 5.000%, 8/01/41 - AMBAC Insured
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 3,133,110
Bonds, Kennedy Health System, Series 2001, 5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,264,287
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
7,400 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 7,728,412
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 Baa2 3,003,420
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
2,155 New Jersey Health Care Facilities Financing Authority, No Opt. Call AAA 2,340,179
Revenue Bonds, Kennedy Health System Obligated Group,
Series 1998B, 5.750%, 7/01/05 - MBIA Insured
New Jersey Health 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+ 4,188,107
2,000 5.750%, 7/01/31 7/10 at 100.00 A+ 2,170,620
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,475,045
Revenue and Refunding Bonds, Saint Barnabas Health Care
System, West Hudson Hospital Obligated Group,
Series 1998A, 5.000%, 7/01/23 - MBIA Insured
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,290,337
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
2,000 New Jersey Health Facilities Financing Authority, Revenue 7/10 at 100.00 Baa1 2,192,080
Bonds, Saint 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 3,635,940
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
3,945 Newark, New Jersey, GNMA Collateralized Health Care Facility 6/12 at 102.00 Aaa 4,208,763
Revenue Bonds, New Community Urban Renewal Corporation,
Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 9.4%
3,790 Hudson County Improvement Authority, New Jersey, 6/04 at 100.00 AA- 3,853,710
Multifamily Housing Revenue Bonds, Conduit Financing -
Observer Park Project, Series 1992A, 6.900%, 6/01/22
(Alternative Minimum Tax)
1,175 Long Branch Housing Finance Corporation New Jersey, 10/03 at 100.00 N/R 1,180,616
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
12,000 New Jersey Housing and Mortgage Finance Agency, 11/03 at 100.00 AAA 12,339,000
Multifamily Housing Revenue Refunding Bonds, Presidential
Plaza at Newport Project, FHA-Insured Mortgages,
Series 1991-1, 7.000%, 5/01/30
4,500 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 4,723,560
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
4,500 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/06 at 102.00 AAA 4,739,580
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 2,938,641
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.8%
1,585 New Jersey Housing and Mortgage Finance Agency, Home 10/05 at 101.50 AAA 1,653,662
Buyer Revenue Bonds, Series 1995-O, 6.350%, 10/01/27
(Alternative Minimum Tax) - MBIA Insured
1,690 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/07 at 101.50 AAA 1,776,038
Revenue Bonds, Series 1996S, 6.050%, 10/01/28 (Alternative
Minimum Tax) - MBIA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 10,000 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/07 at 101.50 AAA $ 10,474,100
Revenue Bonds, Series 1997U, 5.850%, 4/01/29 (Alternative
Minimum Tax) - MBIA Insured
10,285 New Jersey Housing and Mortgage Finance Agency, Home 10/10 at 100.00 AAA 10,864,354
Buyer Revenue Bonds, Series 2000CC, 5.875%,10/01/31
(Alternative Minimum Tax) - MBIA Insured
2,965 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 3,081,643
Securities, Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,965 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 3,067,915
Securities, Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6%
5,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 5,195,150
Development Revenue Refunding Bonds, Kapkowski Road
Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8%
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 1,051,680
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,568,775
2,965 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 3,158,110
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation Project, Series 2001A, 5.200%, 12/20/36
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.0%
6,250 Salem County Pollution Control Financing Authority, 11/03 at 100.00 AA- 6,312,250
New Jersey, Waste Disposal Revenue Bonds, E.I. DuPont
de Nemours and Company - Chambers Works Project,
Series 1991A, 6.500%, 11/15/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.5%
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,781,396
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,706,656
Essex County, New Jersey, General Obligation Refunding Bonds,
Series 1996A-1:
3,000 6.000%, 11/15/07 - FGIC Insured No Opt. Call Aaa 3,499,530
1,000 5.000%, 11/15/11 - FGIC Insured 11/07 at 101.00 Aaa 1,128,150
2,320 Hoboken, New Jersey, Fiscal Year Adjustment, General No Opt. Call AAA 2,825,899
Obligation Bonds, Series 1991, 8.900%, 8/01/06 - FSA Insured
3,675 Jersey City, New Jersey, Hudson County, Fiscal Year Adjustment No Opt. Call AAA 4,368,840
Bonds, Series 1991B, 8.400%, 5/15/06 - FSA Insured
Middleton Township Board of Education, Monmouth County,
New Jersey, Refunding School Bonds:
3,500 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 3,671,045
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,565,265
2,000 Morristown, New Jersey, General Obligation Bonds, 8/05 at 102.00 AAA 2,226,580
Series 1995 Refunding, 6.500%, 8/01/19 - FSA Insured
New Jersey, General Obligation Bonds, Series 1992D:
4,000 5.750%, 2/15/06 No Opt. Call AA 4,434,800
5,000 6.000%, 2/15/11 No Opt. Call AA 5,993,900
2,000 Puerto Rico Public Improvement, General Obligation Refunding 7/11 at 100.00 AAA 2,114,480
Bonds, Series 2001, 5.125%, 7/01/30 - FSA 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 1,547,528
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,624,428
900 West Deptford Township, Gloucester County, New Jersey, 3/06 at 102.00 AAA 986,499
General Obligation Bonds, Series 1996, 5.250%, 3/01/14 -
AMBAC Insured
17
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.1%
$ 3,320 Atlantic County, New Jersey, Improvement Authority, 11/10 at 100.00 Aaa $ 3,546,623
Egg Harbor Township Guaranteed Revenue Bonds, The Egg
Harbor Township Golf Corporation Project, Series 2000,
5.400%, 11/01/30 - AMBAC Insured
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,339,321
Obligation Lease Bonds, Correctional Facilities Project,
Series 2003A, 5.000%, 10/01/28 - FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,583,000
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000,
6.000%, 10/01/25 - FGIC 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 2,217,880
3,000 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 3,229,380
3,365 5.000% 11/01/21 - FSA Insured 11/13 at 100.00 AAA 3,598,868
2,535 Mansfield Township Board of Education, Warren County, 3/06 at 102.00 AAA 2,835,195
New Jersey, Certificates of Participation, 5.900%, 3/01/15 -
MBIA Insured
1,500 Middlesex County, New Jersey, Certificates of Participation, 8/11 at 100.00 AAA 1,570,500
Series 2001, 5.000%, 8/01/31 - MBIA Insured
New Jersey Economic Development Authority, Lease Revenue Bonds,
Bergen County Administration Complex, Series 1998:
500 4.050%, 11/15/03 - MBIA Insured No Opt. Call Aaa 505,830
4,000 4.750%, 11/15/26 - MBIA Insured 11/08 at 101.00 Aaa 4,073,280
5,000 New Jersey Economic Development Authority, School 6/12 at 100.00 AAA 5,332,550
Facilities Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/20 - MBIA Insured
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,950,892
System Bonds, Series 2001B, 5.000%, 12/15/21 -
MBIA Insured
1,895 North Bergen Township Municipal Utilities Authority, No Opt. Call AAA 2,485,463
Hudson County, New Jersey, Sewer Revenue Refunding
Bonds, Series 1993, 7.875%, 12/15/09 - FGIC Insured
1,000 Ocean County Utilities Authority, New Jersey, Wastewater 1/07 at 102.00 Aa1 1,122,770
Revenue Refunding Bonds, Series 1997, 5.125%, 1/01/10
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,345,088
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
2,000 West Orange Board of Education, Essex County, New Jersey, 10/09 at 101.00 Aaa 2,319,760
Certificates of Participation, Series 1999, 6.000%, 10/01/24 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 38.5%
3,275 Delaware River and Bay Authority, States of Delaware and 1/10 at 101.00 AAA 3,666,330
New Jersey, Revenue Bonds, Series 2000A, 5.750%, 1/01/29 -
AMBAC Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,141,330
Port District Project Revenue Refunding Bonds, Series 2001A,
5.200%, 1/01/27 - FSA Insured
7,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102.00 AAA 7,562,310
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,936,695
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
3,000 New Jersey Economic Development Authority, Economic 11/03 at 100.00 CCC 1,605,000
Development Bonds, American Airlines, Inc. Project,
7.100%, 11/01/31 (Alternative Minimum Tax)
3,000 New Jersey Highway Authority, Garden State Senior Parkway, 1/10 at 101.00 AA- 3,275,580
Revenue Refunding Bonds, Series 1999, 5.625%, 1/01/30
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
9,000 6.500%, 1/01/08 - MBIA Insured No Opt. Call AAA 10,622,880
740 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 930,713
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 2000A:
9,275 5.500%, 1/01/25 - MBIA Insured 1/10 at 100.00 AAA 10,059,758
10,000 5.500%, 1/01/27 1/10 at 100.00 A 10,747,800
2,000 5.500%, 1/01/30 - MBIA Insured 1/10 at 100.00 AAA 2,163,740
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 9,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA $ 10,280,900
Series 2003A, 5.000%, 1/01/19 (WI, settling 7/09/03) -
FGIC Insured
5,000 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AAA 5,391,750
Revenue Bonds, One Hundredth Series 1995,
5.750%, 6/15/30 - MBIA Insured
3,150 Port Authority of New York and New Jersey, Consolidated 7/04 at 101.00 AA- 3,302,366
Revenue Bonds, Ninety-Fifth Series 1994, 6.125%, 7/15/29
(Alternative Minimum Tax)
3,930 Port Authority of New York and New Jersey, Consolidated 7/08 at 101.00 AA- 3,979,715
Revenue Bonds, One Hundred Twenty-Second Series 2001,
5.125%, 1/15/36 (Alternative Minimum Tax)
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 2,406,722
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,259,900
6,850 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,298,881
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.375%, 10/15/35 - MBIA Insured
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC Project, Series 6:
3,500 7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,375,630
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 7,118,407
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 13,151,831
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,051,640
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.9%
5,175 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 5,806,919
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Monmouth County Improvement Authority, New Jersey, 7/07 at 101.00 AAA 1,163,560
Revenue Bonds, Howell Township Board of Education
Project, Series 1997, 5.800%, 7/15/17 (Pre-refunded to
7/15/07) - AMBAC Insured
2,770 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A*** 3,425,105
Series 1991C, 6.500%, 1/01/16
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 8,289,900
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.0%
3,255 Camden County Pollution Control Financing Authority, 12/03 at 100.00 B2 3,116,044
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, 12/03 at 100.00 B2 3,349,220
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
400 New Jersey Economic Development Authority, Adjustable 7/03 at 102.00 A2 420,680
Fixed-Rate Pollution Control Revenue Bonds, Jersey Central
Power and Light Company Project, Series 1985,
7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue 7/09 at 101.50 AAA 6,818,760
Refunding Bonds, Series FF, 5.250%, 7/01/13 - MBIA Insured
5,000 Puerto Rico Electric Power Authority, Power Revenue Refunding No Opt. Call AAA 5,979,450
Bonds, Series 1995Y, 7.000%, 7/01/07 - MBIA Insured
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,504,725
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 3,065,850
Facility Senior Lease Revenue Bonds, Ogden Martin Systems
of Union, Inc. Lessee, Series 1998A, 5.000%, 6/01/23
(Alternative Minimum Tax) - AMBAC Insured
19
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.3%
$ 3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA $ 3,085,350
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 8,020,725
Facilities Revenue Bonds, American Water Works
Company Project, Series 1996, 6.000%, 5/01/36 (Alternative
Minimum Tax) - FGIC Insured
5,250 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 5,463,465
Facilities Revenue Bonds, American Water Works Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative
Minimum Tax) - FGIC Insured
3,000 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,313,286
Refunding Bonds, Series 2002A, 5.250%, 8/01/18 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 447,238 Total Long-Term Investments (cost $448,199,531) - 150.0% 475,389,341
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 3,580,246
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.1)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $316,969,587
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
20
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.3%
$ 3,500 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- $ 3,084,970
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 A- 3,245,581
2,250 6.375%, 6/01/32 6/13 at 100.00 A- 2,030,378
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.1%
New Jersey Higher Education Student Assistance Authority,
Student Loan Revenue Bonds, Series 2000A:
3,180 5.700%, 6/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 3,550,311
2,140 6.000%, 6/01/15 (Alternative Minimum Tax) - MBIA Insured 6/10 at 101.00 AAA 2,375,678
3,180 New Jersey Economic Development Authority, Economic No Opt. Call N/R 3,459,204
Development Bonds, Yeshiva Ktana of Passaic 1992 Project,
8.000%, 9/15/18
515 New Jersey Educational Facilities Authority, Revenue Bonds, 7/03 at 100.00 A- 517,292
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
1,000 New Jersey Educational Facilities Authority, Revenue 7/04 at 102.00 AAA 1,059,950
Bonds, New Jersey Institute of Technology Issue,
Series 1994A, 6.000%, 7/01/24 - MBIA Insured
3,330 New Jersey Educational Facilities Authority, Revenue 7/06 at 101.00 AAA 3,722,108
Bonds, Montclair State University, Dormitory/Cafeteria
Facility, Series 1996C, 5.400%, 7/01/12 - AMBAC Insured
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 2,816,425
Princeton University, Series 2000E, 5.500%, 7/01/17
500 New Jersey Educational Facilities Authority, Revenue 7/13 at 100.00 A 513,110
Bonds, Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
445 New Jersey Higher Education Assistance Authority, Student 7/03 at 101.00 A+ 450,229
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
3,640 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 3,891,488
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
2,025 University of Medicine and Dentistry, New Jersey, 4/13 at 100.00 AAA 2,159,703
Certificates of Participation, Series 2003, 5.000%, 4/15/21 -
AMBAC Insured
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,148,110
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.0%
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 3,658,060
Bonds, Kennedy Health System, Series 2001, 5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,779,050
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- 1,208,151
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
2,500 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 2,610,950
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 Baa2 1,877,138
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A2 3,061,965
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 2,282,680
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
21
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,800 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 2,085,102
Revenue Bonds, Meridian Health System Obligated
Group, Series 1999, 5.625%, 7/01/12 - FSA Insured
2,900 Puerto Rico Industrial, Medical, Educational, and 12/03 at 103.00 A2 2,992,626
Environmental Pollution Control Facilities Financing
Authority, Adjustable Rate Industrial Revenue Bonds,
American Home Products Corporation,
Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.9%
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 343,815
Multifamily Enhanced Revenue Bonds, Mount Carmel
Towers Project, Series 2002, 4.750%, 11/01/22 (Alternative
Minimum Tax)
710 Long Branch Housing Finance Corporation, New Jersey, 10/03 at 100.00 N/R 713,394
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
4,000 New Jersey Housing and Mortgage Finance Agency, 11/03 at 100.00 AAA 4,113,000
Multifamily Housing Revenue Refunding Bonds, Presidential
Plaza at Newport Project, FHA-Insured Mortgages,
Series 1991-1, 7.000%, 5/01/30
2,875 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 3,017,830
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,293,510
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.6%
1,000 New Jersey Housing and Mortgage Finance Agency, Home 10/05 at 101.50 AAA 1,044,970
Buyer Revenue Bonds, Series 1995-O, 6.300%, 10/01/23
(Alternative Minimum Tax) - MBIA Insured
155 New Jersey Housing and Mortgage Finance Agency, Home 4/06 at 101.50 AAA 163,533
Buyer Revenue Bonds, Series 1996-P, 5.650%, 4/01/14 -
MBIA Insured
2,345 New Jersey Housing and Mortgage Finance Agency, Home 4/07 at 101.50 AAA 2,464,384
Buyer Revenue Bonds, Series 1996S, 6.050%, 10/01/28
(Alternative Minimum Tax) - MBIA Insured
New Jersey Housing and Mortgage Finance Agency, Home
Buyer Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 2,085,081
1,500 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 1,571,115
1,000 New Jersey Housing and Mortgage Finance Agency, Home 10/08 at 101.50 AAA 1,030,430
Buyer Revenue Bonds, Series 1998X, 5.350%, 4/01/29
(Alternative Minimum Tax) - MBIA Insured
500 New Jersey Housing and Mortgage Finance Agency, Home No Opt. Call AAA 540,125
Buyer Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5%
1,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 1,039,030
Development Revenue Refunding Bonds, Kapkowski Road
Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
3,255 New Jersey Economic Development Authority, Revenue 10/03 at 103.00 A+ 3,358,476
Bonds, Morris Hall-St. Lawrence, Inc. Project, Series 1993A,
6.150%, 4/01/13
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.3%
600 New Jersey Economic Development Authority, Economic 12/03 at 102.00 Aa3 619,332
Growth Bonds, Composite Issue - Second Series 1992T,
5.300%, 12/01/07 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.4%
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,793,478
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,000 Jersey City, New Jersey, General Obligation Bonds, Refunding No Opt. Call AAA 2,323,220
and School Improvements, Series 2002B, 5.250%, 3/01/13 -
AMBAC Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,760 5.750%, 2/15/06 No Opt. Call AA 3,060,012
4,000 5.800%, 2/15/07 No Opt. Call AA 4,543,880
2,500 6.000%, 2/15/11 No Opt. Call AA 2,996,950
1,560 6.000%, 2/15/13 No Opt. Call AA 1,905,571
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA $ 4,649,640
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, 7/09 at 102.00 Aaa 1,949,544
Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.2%
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,339,321
Obligation Lease Bonds, Correctional Facilities Project,
Series 2003A, 5.000%, 10/01/28 - FGIC 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 1,330,728
1,750 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 1,883,805
1,965 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 2,101,568
1,000 Hudson County Improvement Authority, New Jersey, Utility 1/08 at 101.50 AAA 1,064,140
System Revenue Bonds, Harrison Franchise Acquisition
Project, Series 1997, 5.350%, 1/01/27 - FSA Insured
2,250 New Jersey Building Authority, State Building Revenue 6/10 at 100.00 AA- 2,404,508
Bonds, Series 2000A, 5.125%, 6/15/20
2,000 New Jersey Economic Development Authority, Lease Revenue 11/08 at 101.00 Aaa 2,036,640
Bonds, Bergen County Administration Complex,
Series 1998, 4.750%, 11/15/26 - MBIA Insured
1,000 New Jersey Economic Development Authority, Revenue 8/03 at 102.00 AAA 1,025,170
Bonds, Public Schools Small Project Loan Program,
Series 1993, 5.400%, 8/15/12
2,000 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA 2,133,020
Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/20 - MBIA Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 1995A:
385 5.500%, 6/15/12 - MBIA Insured 6/05 at 102.00 AAA 422,203
5,000 5.000%, 6/15/15 - MBIA Insured 6/05 at 102.00 AAA 5,373,750
685 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 745,520
System Bonds, Series 1995B, 5.500%, 6/15/15 - MBIA Insured
7,500 Puerto Rico Municipal Finance Agency, Loan Pool Bonds, 8/09 at 101.00 AAA 8,545,725
Series 1999A, 5.500%, 8/01/17 - FSA Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call AA- 1,183,220
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,581,407
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
2,250 Western Monmouth Utilities Authority, Monmouth County, 2/05 at 102.00 AAA 2,423,475
New Jersey, Revenue Refunding Bonds, Series 1995A,
5.600%, 2/01/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 33.3%
5,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/08 at 101.00 AAA 5,263,950
Port District Project Bonds, Series 1998B, 5.000%, 1/01/19 -
MBIA Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
1,340 6.500%, 1/01/08 No Opt. Call A 1,575,358
2,185 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 2,748,118
3,505 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 4,408,309
2,495 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100.00 AAA 2,706,102
Series 2000A, 5.500%, 1/01/25 - MBIA Insured
5,750 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 6,222,650
Series 2003A, 5.000%, 1/01/19 (WI, settling 7/09/03) -
FGIC Insured
3,000 Port Authority of New York and New Jersey, Consolidated 10/04 at 101.00 AAA 3,185,490
Revenue Bonds, Ninety-Sixth Series 1994,
6.600%, 10/01/23 (Alternative Minimum Tax) - FGIC Insured
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, Ninety-Ninth Series 1995:
1,200 5.750%, 11/01/09 (Alternative Minimum Tax) - FGIC Insured 5/05 at 101.00 AAA 1,296,360
2,500 5.750%, 11/01/14 (Alternative Minimum Tax) - FGIC Insured 5/05 at 101.00 AAA 2,664,525
1,500 Port Authority of New York and New Jersey, Consolidated 7/06 at 101.00 AA- 1,660,275
Revenue Bonds, One Hundred Sixth Series 1996,
6.000%, 7/01/16 (Alternative Minimum Tax)
23
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundredth Series 1995:
$ 2,500 5.750%, 12/15/20 - FGIC Insured 6/05 at 101.00 AAA $ 2,696,650
2,000 5.750%, 6/15/30 - MBIA Insured 6/05 at 101.00 AAA 2,156,700
2,000 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AA- 2,071,240
Revenue Bonds, One Hundred Twelfth Series 1998,
5.250%, 12/01/13 (Alternative Minimum Tax)
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,103,960
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC Project, Series 6:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 10,777,300
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 11,926,640
1,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 1,517,068
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.3%
1,275 Camden County Improvement Authority, New Jersey, County 10/05 at 102.00 AAA 1,422,836
Guaranteed Lease Revenue Bonds, Series 1995,
5.625%, 10/01/15 (Pre-refunded to 10/01/05) -
MBIA Insured
5,175 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 5,806,919
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Essex County Utilities Authority, New Jersey, Solid Waste 4/06 at 102.00 AAA 1,131,230
System Revenue Bonds, Secured by a Count Deficiency
Agreement, Series 1996A, 5.600%, 4/01/16 (Pre-refunded
to 4/01/06) - FSA Insured
685 New Jersey Health Care Facilities Financing Authority, 8/04 at 102.00 Aa2*** 733,745
FHA-Insured Mortgage Revenue Refunding Bonds,
Wayne General Hospital Issue, Series 1994B,
5.750%, 8/01/11 (Pre-refunded to 8/01/04)
3,750 New Jersey Educational Facilities Authority, Revenue 7/06 at 101.00 AAA 4,187,663
Bonds, Trenton State College Issue, Series 1996A,
5.125%, 7/01/24 (Pre-refunded to 7/01/06) - MBIA Insured
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101.00 AAA 2,855,800
Rowan College Issue, Series 1996E, 6.000%, 7/01/21
(Pre-refunded to 7/01/06) - AMBAC Insured
2,000 New Jersey Transit Corporation, Federal Transit 9/09 at 100.00 AAA 2,425,200
Administration Grants, Certificates of Participation,
Series 2000A, 6.125%, 9/15/15 (Pre-refunded to
9/15/09) - AMBAC Insured
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,503,811
System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded
to 12/15/11) - MBIA Insured
115 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 126,770
System Bonds, Series 1995A, 5.500%, 6/15/12 - MBIA Insured
415 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 457,475
System Bonds, Series 1995B, 5.500%, 6/15/15 (Pre-refunded
to 6/15/05) - MBIA Insured
8,420 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A*** 10,411,330
Series 1991C, 6.500%, 1/01/16
Sparta Township School District, Sussex County,
New Jersey, General Obligation Bonds, Series 1996:
1,100 5.800%, 9/01/19 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA 1,246,652
1,100 5.800%, 9/01/20 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA 1,246,652
1,100 5.800%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA 1,246,652
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.3%
2,330 Camden County Pollution Control Financing Authority, 12/03 at 100.00 B2 2,237,289
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101.50 AAA 2,292,020
Bonds, Series FF, 5.250%, 7/01/13 - MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.8%
Bayonne Municipal Utilities Authority, New Jersey, Water
System Revenue Bonds, Series 2003A Refunding:
$ 1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa $ 1,554,545
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,307,363
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,242,450
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water 3/04 at 102.00 AAA 3,197,929
Facilities Revenue Refunding Bonds, Hackensack Water
Company Project, Series 1994B, 5.900%, 3/01/24
(Alternative Minimum Tax) - MBIA Insured
3,250 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 3,382,145
Facilities Revenue Bonds, American Water Works Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative
Minimum Tax) - FGIC Insured
6,950 New Jersey Environmental Infrastructure Trust, 9/11 at 101.00 AAA 7,253,785
Environmental Infrastructure Bonds, Series 2001A,
4.750%, 9/01/20
7,000 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA 7,241,780
Bonds, Series 1996, 5.125%, 8/01/22 - FGIC Insured
3,500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,843,000
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,808,678
New Jersey, Sewer Revenue Refunding Bond, Series 1993B,
5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 262,420 Total Long-Term Investments (cost $262,699,786) - 145.7% 284,939,193
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,228,830
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.8)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $195,568,023
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
25
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.2%
$ 250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 248,333
Development Revenue Bonds, Newark Airport Marriott
Hotel, Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.9%
1,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 881,420
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 A- 2,065,370
1,125 6.375%, 6/01/32 6/13 at 100.00 A- 1,015,189
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.4%
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 2,095,220
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue 7/11 at 100.00 AAA 222,652
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 3,968,713
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,671,856
1,000 New Jersey Educational Facilities Authority, Revenue 7/11 at 100.00 AAA 1,097,510
Bonds, New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
1,565 New Jersey Educational Facilities Authority, Revenue 7/10 at 100.00 AAA 1,742,017
Bonds, Princeton University, Series 2000E,
5.250%, 7/01/16
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart Project,
Series 2001:
2,000 5.250%, 9/01/21 9/11 at 100.00 BBB 2,075,840
2,000 5.250%, 9/01/31 9/11 at 100.00 BBB 2,058,060
500 Puerto Rico Industrial, Tourist, Educational, Medical, and 12/12 at 101.00 BBB 519,060
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project, Refunding Series 2002, 5.500%, 12/01/31
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101.50 AAA 2,026,082
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.0%
1,000 Virgin Islands Government Refinery Facilities, Senior 1/13 at 100.00 BBB- 1,023,100
Secured Revenue Bonds, Hovensa LLC Coker Project,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 31.1%
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,658,060
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,409,913
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 Baa2 1,001,140
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
1,100 New Jersey Health Care Facilities Financing Authority, No Opt. Call AAA 1,232,110
Revenue Bonds, Kennedy Health System Obligated Group,
Series 1998B, 5.750%, 7/01/06 - MBIA Insured
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 551,095
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
$ 3,000 5.750%, 7/01/25 7/10 at 100.00 A+ $ 3,263,460
12,000 5.750%, 7/01/31 7/10 at 100.00 A+ 13,023,720
4,500 New Jersey Health Care Facilities Financing Authority, 1/09 at 101.00 AAA 4,453,335
Revenue Bonds, Virtua Health System, Series 1998,
4.500%, 7/01/28 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 A2 2,569,375
Revenue Refunding Bonds, Burdette Tomlin Memorial
Hospital, Series 1999, 5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3%
275 New Jersey Economic Development Authority, District 12/03 at 102.00 BBB- 277,302
Heating and Cooling Revenue Bonds, Trigen-Trenton
Project, Series 1993B, 6.100%, 12/01/04 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds, Masonic Charity Foundation Project, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A+ 1,132,740
335 5.500%, 6/01/31 6/11 at 102.00 A+ 361,415
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.4%
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 1,935,785
1,630 4.750%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 1,697,368
1,000 Jersey City, New Jersey, General Obligation Bonds, No Opt. Call AAA 1,161,610
Refunding and School Improvements, Series 2002B,
5.250%, 3/01/13 - AMBAC Insured
Puerto Rico Public Improvement, General Obligation
Refunding Bonds, Series 2001:
3,500 5.250%, 7/01/27 - FSA Insured 7/11 at 100.00 AAA 3,753,995
8,500 5.125%, 7/01/30 - FSA Insured 7/11 at 100.00 AAA 8,986,540
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.9%
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 609,917
900 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 968,814
1,015 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 1,085,543
New Jersey Economic Development Authority, School
Facilities Construction Bonds, Series 2001A:
2,000 5.250%, 6/15/19 - AMBAC Insured 6/11 at 100.00 AAA 2,181,880
2,400 5.000%, 6/15/21 - AMBAC Insured 6/11 at 100.00 AAA 2,516,784
1,500 Virgin Islands Public Finance Authority, Revenue Refunding 10/08 at 101.00 AA 1,591,725
Senior Lien Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.2%
1,000 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 1,108,440
Revenue Bonds, Series 2003, 5.250%, 1/01/18 - MBIA Insured
3,000 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 2,505,240
Facilities Revenue Bonds, Continental Airlines, Inc. Project,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 3,246,600
Series 2003A, 5.000%, 1/01/19 (WI, settling 7/09/03) -
FGIC Insured
3,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 3,186,210
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 3,693,200
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 12/07 at 102.00 AAA 5,388,650
Project Bonds, JFK International Air Terminal LLC Project,
Series 6, 5.750%, 12/01/22 (Alternative Minimum Tax) -
MBIA Insured
27
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 4,000 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA $ 4,228,760
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.2%
5,215 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 6,332,366
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/09 at 100.00 AA-*** 3,554,730
System Bonds, Series 1998A, 5.000%, 6/15/17 (Pre-refunded
to 6/15/09)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,414,080
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.6%
2,680 Camden County Pollution Control Financing Authority, 12/03 at 100.00 B2 2,565,591
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 26.4%
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,903,227
Revenue Bonds, American Water Works Company Project,
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 7,355,530
Facilities Revenue Bonds, Middlesex Water Company
Project, Series 1998, 5.350%, 2/01/38 (Alternative
Minimum Tax) - MBIA Insured
5,000 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 5,203,300
Facilities Revenue Bonds, American Water Works Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative
Minimum Tax) - FGIC Insured
2,775 New Jersey Environmental Infrastructure Trust, 9/08 at 101.00 AAA 2,856,252
Environmental Infrastructure Bonds, Series 1998A,
4.500%, 9/01/18
15,840 North Hudson Sewer Authority, New Jersey, Sewer Revenue No Opt. Call Aaa 6,163,341
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 150,865 Total Long-Term Investments (cost $140,849,524) - 148.1% 148,839,565
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.3)% (337,823)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.8)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $100,501,742
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): 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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
28
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.8%
$ 1,250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 1,241,663
Development Revenue Bonds, Newark Airport Marriott
Hotel, Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.1%
1,125 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 A- 991,598
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
1,600 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 A- 1,475,264
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.125%, 6/01/24
1,325 Tobacco Settlement Financing Corporation, Virgin Islands, 5/11 at 100.00 Baa2 1,073,436
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.7%
1,000 Bergen County Improvement Authority, New Jersey, 9/12 at 101.00 N/R 1,036,660
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 1,169,592
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
3,000 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AAA 3,139,800
Bonds, College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System
Project, Series 1999:
2,000 5.375%, 2/01/19 2/09 at 101.00 BBB 2,083,500
1,000 5.375%, 2/01/29 2/09 at 101.00 BBB 1,023,070
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,148,110
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.5%
1,000 Virgin Islands Government Refinery Facilities, Senior 1/13 at 100.00 BBB- 1,023,100
Secured Revenue Bonds, Hovensa LLC Coker Project,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 27.3%
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,507,110
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
Issue, Series 2001:
1,000 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 1,040,760
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,996,302
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,197,426
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- 1,047,650
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- 2,672,900
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
2,460 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 2,569,175
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 Baa2 500,570
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+ 3,798,585
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
29
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 529,808
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - MBIA Insured
2,100 Puerto Rico Industrial, Medical, Educational, and 12/03 at 103.00 A2 2,167,074
Environmental Pollution Control Facilities Financing
Authority, Adjustable Rate Industrial Revenue Bonds,
American Home Products Corporation, Series 1983A,
5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.4%
2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,344,275
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.0%
2,700 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 2,805,381
Development Revenue Refunding Bonds, Kapkowski Road
Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.8%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds, Masonic Charity Foundation Project, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A+ 1,093,710
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,315,400
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.6%
3,000 Jackson Township School District, Ocean County, 4/12 at 100.00 AAA 3,182,640
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 4/15/21 - FGIC Insured
1,225 Jersey City, New Jersey, General Obligation Bonds, No Opt. Call AAA 1,422,972
Refunding and School Improvements, Series 2002B,
5.250%, 3/01/13 - AMBAC Insured
1,000 Old Bridge Township Board of Education, Middlesex 7/11 at 100.00 AAA 1,047,490
County, New Jersey, General Obligation Bonds,
Series 2002, 5.000%, 7/15/30 - MBIA Insured
1,000 Puerto Rico Public Improvement, General Obligation Bonds, 7/11 at 100.00 AAA 1,063,440
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.6%
3,000 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa 3,154,980
Utilities Authority, Revenue Bonds, Series 2002,
5.000%, 12/01/25 - FGIC Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 554,470
625 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 672,788
700 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 748,650
1,000 New Jersey Economic Development Authority, School 6/12 at 100.00 AAA 1,066,510
Facilities Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/20 - MBIA Insured
680 New Jersey Transportation Trust Fund Authority, 12/11 at 100.00 AAA 713,687
Transportation System Bonds, Series 2001B,
5.000%, 12/15/21 - MBIA Insured
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,119,690
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
4,000 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 4,248,440
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.9%
770 Delaware River and Bay Authority, Delaware and 1/13 at 100.00 AAA 853,499
New Jersey, Revenue Bonds, Series 2003, 5.250%, 1/01/18 -
MBIA Insured
2,000 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,670,160
Facilities Revenue Bonds, Continental Airlines, Inc.
Project, Series 2000, 7.000%, 11/15/30 (Alternative
Minimum Tax)
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 2,164,400
Series 2003A, 5.000%, 1/01/19 (WI, settling 7/09/03) -
FGIC Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 4,119,360
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 (Alternative Minimum Tax)
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Twenty-Fifth Series 2002:
$ 3,000 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA $ 3,166,740
2,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 2,103,960
1,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 1,038,490
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.125%, 10/15/30 - MBIA Insured
4,000 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 5,000,720
Bonds, JFK International Air Terminal LLC Project, Series 6,
7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.7%
3,000 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100.00 AAA 3,642,780
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
3,105 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A*** 3,839,333
Series 1991C, 6.500%, 1/01/16
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,758,800
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.7%
1,220 Camden County Pollution Control Financing Authority, 12/03 at 100.00 B2 1,167,918
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 2,667,400
5.250%, 10/01/34 - MBIA Insured
2,500 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 2,518,200
Control Revenue Refunding Bonds, PSEG Power LLC Project,
Series 2001A, 5.000%, 3/01/12
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,213,868
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 99,810 Total Long-Term Investments (cost $100,628,657) - 152.1% 105,913,304
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (2.5)% (1,797,436)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $69,615,868
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
31
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.6%
$ 13,300 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $14,560,707
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.6%
10,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 10,411,100
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,028,460
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 2,087,960
Pennsylvania, Educational Facilities Revenue Bonds,
The Westtown School Project, Series 2002,
5.000%, 1/01/26 - AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,364,710
Haverford College, Series 2000, 5.750%, 11/15/29
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,069,600
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
1,450 Indiana County Industrial Development Authority, 11/06 at 100.00 AAA 1,592,607
Pennsylvania, Revenue Bonds, The Student Cooperative
Association, Inc.- Indiana University of Pennsylvania
Student Union Project, Series 1999A, 5.875%, 11/01/29 -
AMBAC Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, The 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 495,186
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 465,145
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 439,155
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 412,488
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 387,084
8,000 Pennsylvania Higher Education Assistance Agency, 11/11 at 100.00 Aaa 8,322,960
Capital Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,036,360
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,303,350
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
8,445 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 8,686,358
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 1,847,934
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/18
275 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/03 at 101.00 N/R 281,234
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 6.8%
1,115 Erie County Hospital Authority, Pennsylvania, Revenue 11/12 at 100.00 AAA 1,228,574
Bonds, Hamot Health Foundation, Series 2002,
5.250%, 11/01/15 - AMBAC Insured
1,000 Montour County Geisinger Authority, Pennsylvania, Health 8/08 at 101.00 Aa2 1,011,050
System Revenue Bonds, Penn State Geisinger
Health System, Series 1998A, 5.000%, 8/15/28
2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,432,575
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (WI, settling 7/01/03)
9,500 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A 10,062,210
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,000 Philadelphia Hospitals and Higher Education Facilities 11/03 at 102.00 BBB $ 1,007,080
Authority, Pennsylvania, Hospital Revenue Bonds,
Temple University Hospital, Series 1993A,
6.625%, 11/15/23
1,615 Sayre Health Care Facility Authority, Pennsylvania, 7/12 at 100.00 AAA 1,812,418
Revenue Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4%
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/03 at 101.00 A2 976,080
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.1%
4,990 Allegheny County Residential Finance Authority, Pennsylvania, No Opt. Call Aaa 886,923
Single Family Mortgage Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Series 1994Z,
0.000%, 5/01/27 (Alternative Minimum Tax)
490 Berks County Redevelopment Authority, Pennsylvania, No Opt. Call A+ 531,621
Senior Single Family Mortgage Revenue Bonds,
Series 1986A, 8.000%, 12/01/17 (Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family 10/05 at 102.00 AA+ 2,096,900
Mortgage Revenue Bonds, Series 1995-46,
6.200%, 10/01/14 (Alternative Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102.00 AA+ 1,044,970
Mortgage Revenue Bonds, Series 1996-48,
6.150%, 4/01/25 (Alternative Minimum Tax)
5,725 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102.00 AA+ 6,022,414
Mortgage Revenue Bonds, Series 1996-49,
6.450%, 4/01/25 (Alternative Minimum Tax)
220 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102.00 AA+ 231,207
Mortgage Revenue Bonds, Series 1996-50B,
6.350%, 10/01/27 (Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102.00 AA+ 5,244,400
Mortgage Revenue Bonds, Series 1996-52B,
6.250%, 10/01/24 (Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 5,245,600
Mortgage Revenue Bonds, Series 1997-59A,
5.750%, 10/01/23 (Alternative Minimum Tax)
2,215 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,289,114
Mortgage Revenue Bonds, Series 2001B,
5.450%, 10/01/32 (Alternative Minimum Tax)
1,250 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/06 at 102.00 AAA 1,299,875
Mortgage Revenue Bonds, Series 1996C,
6.550%, 4/01/28 (Alternative Minimum Tax)
1,030 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 1,088,762
Mortgage Revenue Bonds, Series 1997A,
6.250%, 10/01/28 (Alternative Minimum Tax)
180 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/03 at 100.00 AAA 180,574
Mortgage Revenue Bonds, Series 1991G,
7.050%, 4/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.0%
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 4,572,600
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 5,891,250
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4%
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,508,340
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
3,225 Montgomery County Higher Education and Health 1/06 at 101.00 BBB 3,225,000
Authority, Pennsylvania, Mortgage Revenue Bonds,
Waverly Heights Project, Series 1996, 6.375%, 1/01/26
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,599,480
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
33
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.2%
$ 3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA $ 3,784,549
Series C-52, 5.250%, 11/01/23 - FGIC Insured
3,120 Allegheny County, Pennsylvania, General Obligation 5/11 at 100.00 AAA 3,384,108
Refunding Bonds, Series C-53, 5.250%, 11/01/20 -
FGIC Insured
2,000 Canon-McMillan School District, Washington County, No Opt. Call AAA 652,220
Pennsylvania, General Obligation Bonds, Series 2001A,
0.000%, 12/01/25 - FGIC Insured
Carlisle Area School District, Cumberland County,
Pennsylvania, General Obligation Bonds, Series 2002:
1,665 4.750%, 3/01/20 - MBIA Insured 3/12 at 100.00 Aaa 1,726,588
5,760 5.000%, 3/01/22 - MBIA Insured 3/12 at 100.00 Aaa 6,063,782
2,200 Central Bucks School District, Bucks County, Pennsylvania, 5/13 at 100.00 Aaa 2,321,836
General Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
2,000 Claysburg-Kimmel School District, Blair County, Pennsylvania, 1/09 at 100.00 AAA 2,055,940
General Obligation Bonds, Series 2002 Refunding,
5.000%, 1/15/31 - FGIC Insured
4,600 Delaware County, Pennsylvania, General Obligation Bonds, 8/11 at 100.00 Aaa 4,810,588
Garnet Valley School District, Series 2001A,
5.000%, 2/15/25 - FGIC Insured
2,750 Harrisburg Redevelopment Authority, Dauphin County, 5/16 at 68.04 AAA 904,255
Pennsylvania, Guaranteed Revenue Bonds, Series1998B,
0.000%, 5/01/24 - FSA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,959,226
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 - FGIC Insured
McKeesport Area School District, Allegheny County,
Pennsylvania, General Obligation Bonds, Series 1999C:
3,430 0.000%, 10/01/23 - AMBAC Insured No Opt. Call AAA 1,274,108
3,380 0.000%, 10/01/24 - AMBAC Insured No Opt. Call AAA 1,180,837
3,420 0.000%, 10/01/25 - AMBAC Insured No Opt. Call AAA 1,127,300
2,340 0.000%, 10/01/26 - AMBAC Insured No Opt. Call AAA 730,478
2,340 0.000%, 10/01/27 - AMBAC Insured No Opt. Call AAA 693,646
2,340 0.000%, 10/01/29 - AMBAC Insured No Opt. Call AAA 625,388
7,500 Montgomery County, Pennsylvania, General Obligation 7/09 at 100.00 Aaa 7,816,725
Bonds, Series 1999, 5.000%, 7/15/24
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,025 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,101,793
1,125 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,203,705
1,000 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AA 1,105,010
Series 2001, 5.000%, 9/15/15
1,700 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 1,768,782
Series 2001, 5.000%, 9/15/31 - FSA Insured
3,400 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 AAA 3,849,140
Obligation Bonds, Series 2002B, 5.625%, 8/01/18 -
FGIC Insured
15,000 Philadelphia School District, Pennsylvania, General 9/05 at 101.00 AAA 16,039,950
Obligation Bonds, Series 1995B, 5.500%, 9/01/25 -
AMBAC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,572,220
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
6,100 Plum Borough School District, Allegheny County, 9/11 at 100.00 AAA 6,465,207
Pennsylvania, General Obligation Bonds, Series 2001,
5.250%, 9/15/30 - FGIC Insured
1,590 Red Lion Area School District, York County, Pennsylvania, 10/11 at 100.00 Aaa 1,677,514
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 1,337,859
School Revenue Bonds, Conneaut School District Project,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,573,879
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.7%
$ 5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA $ 5,268,500
Pennsylvania, Guaranteed Revenue Bonds, County Building
Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured
2,900 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 3,030,732
Pennsylvania, Guaranteed Revenue Bonds, Allegheny County
Office Building Project, Series 2002B, 5.000%, 11/01/29 -
MBIA Insured
5,750 Port Authority of Allegheny County, Pennsylvania, Special 3/11 at 101.00 AAA 5,993,972
Transportation Revenue Bonds, Series 2001,
5.000%, 3/01/29 - FGIC Insured
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 7,149,480
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,844,533
Special Tax Revenue Refunding Bonds, Philadelphia
Funding Program, Series 1999, 4.750%, 6/15/23 -
FGIC Insured
3,500 Pennsylvania Turnpike Commission, Oil Franchise Revenue 12/08 at 100.00 AAA 3,550,960
Bonds, Series 1998A, 4.750%, 12/01/27 - AMBAC Insured
4,150 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 4,330,235
Bonds, Series 2001, 5.000%, 7/15/41 - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,591,756
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.250%, 10/01/30 - FSA Insured
5,000 Pittsburgh and Allegheny County Public Auditorium Authority, 8/09 at 101.00 AAA 5,179,200
Pennsylvania, Regional Asset District, Sales Tax Revenue
Bonds, Series 1999, 5.000%, 2/01/29 - AMBAC Insured
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 1,198,084
Tax Increment Bonds, Center Triangle Tax Increment Financing
District, PNC Bank Corp. Project, Series 1999A,
6.100%, 5/01/19
1,410 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,668,143
Revenue Bonds, Series 2003AA, 5.500%, 7/01/20 -
MBIA Insured
6,000 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 6,090,180
Revenue Bonds, Series 1999A, 4.750%, 3/01/29 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.2%
2,000 Lehigh-Northampton Airport Authority, Pennsylvania, 5/10 at 100.00 Aaa 2,171,280
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 5,639,652
Revenue Bonds, Amtrak 30th Street Station Parking
Garage Project, Series 2002, 5.800%, 6/01/23 - ACA Insured
2,500 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/11 at 101.00 AAA 2,624,525
Revenue Bonds, Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
5,000 Philadelphia, Pennsylvania, Airport Revenue Bonds, 6/11 at 101.00 AAA 5,131,000
Philadelphia Airport System, Series 2001B, 5.250%, 6/15/31
(Alternative Minimum Tax) - FGIC Insured
Philadelphia Authority for Industrial Development, Pennsylvania,
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 1998A:
7,315 5.000%, 7/01/23 (Alternative Minimum Tax) - FGIC Insured 7/08 at 101.00 AAA 7,425,018
3,085 5.125%, 7/01/28 (Alternative Minimum Tax) - FGIC Insured 7/08 at 101.00 AAA 3,131,213
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,379,577
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 2,156,855
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.7%
1,355 Bensalem Township School District, Bucks County, 7/06 at 100.00 AAA 1,530,987
Pennsylvania, General Obligation Bonds, Series 1996,
5.850%, 7/15/12 (Pre-refunded to 7/15/06) - FGIC Insured
2,000 Hampton Township School District, Allegheny County, 11/04 at 100.00 AAA 2,156,620
Pennsylvania, General Obligation Bonds, Series 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04) -
AMBAC Insured
1,980 Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,065,675
and Sewer System Revenue Refunding Bonds, Series 1986,
7.625%, 9/01/04 - FGIC Insured
2,000 Sto-Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,414,160
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
35
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA $ 4,000,650
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 7,848,763
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4%
1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,327,138
Pennsylvania, Pollution Control Revenue Refunding
Bonds, Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
2,785 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,989,113
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 4,409,800
Pennsylvania, Pollution Control Revenue Refunding
Bonds, Pennsylvania Power & Light Company Project,
Series 1995A, 6.150%, 8/01/29 - MBIA Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 4,036,410
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,729,415
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.0%
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,220,600
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company Project, Series 2001, 5.350%, 10/01/31
(Alternative Minimum Tax) - AMBAC Insured
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewer Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,675,438
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,550,717
Erie Water Authority, Pennsylvania, Water Revenue Bonds,
Series 2001A:
2,670 0.000%, 12/01/23 - MBIA Insured No Opt. Call AAA 979,837
5,000 5.200%, 12/01/30 - MBIA Insured 12/11 at 100.00 AAA 5,269,350
5,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102.00 AAA 5,423,000
Facilities Revenue Refunding Bonds, Pennsylvania Gas and
Water Company Project, Series 1994A, 7.000%, 12/01/17
(Alternative Minimum Tax) - AMBAC 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 6,086,837
10,750 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 11,242,992
------------------------------------------------------------------------------------------------------------------------------------
$ 382,180 Total Long-Term Investments (cost $355,190,415) - 148.1% 383,600,445
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
2,000 Chester County Industrial Development Authority, VMIG-1 2,000,000
Pennsylvania, Archdiocese of Philadelphia, Variable Rate
Demand Revenue Bonds, Series 2001, 1.000%, 7/01/31+
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $357,190,415) - 148.9% 385,600,445
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 5,323,719
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $258,924,164
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
36
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.7%
$ 4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R $ 4,206,285
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.7%
1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A 1,066,433
Commonwealth of 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- 3,053,520
Pennsylvania, College Revenue Bonds, Immaculata College,
Series 1998, 5.625%, 10/15/27
1,000 Pennsylvania Higher Educational Facilities Authority, 5/08 at 101.00 Aaa 1,056,700
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 2,289,588
Revenue Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 - RAAI Insured
4,615 Pennsylvania Higher Educational Facilities Authority, 7/03 at 102.00 AAA 4,722,437
Revenue Bonds, Widener University, Series 1993A,
5.250%, 7/15/11 - CONNIE LEE/AMBAC Insured
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 1,563,675
Revenue Bonds, Temple University, Series 2001,
5.000%, 7/15/31 - MBIA Insured
5,750 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 5,878,743
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
750 Union County Higher Education Facilities Financing 4/13 at 100.00 Aa3 826,642
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+ 2,645,625
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18
700 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/03 at 101.00 N/R 715,869
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 21.7%
8,500 Allegheny County Hospital Development Authority, 5/06 at 102.00 AAA 9,414,005
Pennsylvania, Hospital 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 15,054,900
Pennsylvania, Health Center Revenue Bonds, University of
Pittsburgh Medical Center System, Series 1997A,
5.625%, 4/01/27 - MBIA Insured
1,230 Erie County Hospital Authority, Pennsylvania, Revenue 11/12 at 100.00 AAA 1,340,233
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+ 5,112,900
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
2,400 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,335,272
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (WI, settling 7/01/03)
7,900 Montgomery County Higher Education and Health 1/09 at 101.00 AAA 8,096,078
Authority, Pennsylvania, Revenue Bonds, Pottstown
Healthcare Corporation, Series 1998, 5.000%, 1/01/27 -
FSA Insured
485 Montgomery County Higher Education and Health Authority, 12/03 at 102.00 AAA 496,291
Pennsylvania, Hospital Revenue Bonds, Abington Memorial
Hospital, Series 1993A, 6.000%, 6/01/22 - AMBAC Insured
4,700 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101.00 A 4,852,045
University of Pennsylvania Health Services Revenue Bonds,
Series 1996A, 5.750%, 1/01/22
37
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
$ 2,000 5.500%, 7/01/18 7/08 at 100.00 BBB- $ 1,809,260
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,767,280
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 1,887,136
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,318,656
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.2%
4,345 Bucks County Redevelopment Authority, Pennsylvania, 8/03 at 100.00 Baa2 4,296,771
Second Lien Multifamily Mortgage Revenue Bonds,
Section 8 Assisted, Country Commons Apartments,
Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, No Opt. Call AAA 2,119,460
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Alternative Minimum Tax) (Mandatory put 4/01/22)
1,575 Luzerne County Housing Corporation, Pennsylvania, 9/03 at 100.00 Aaa 1,576,717
Mortgage Revenue Refunding Bonds, FHA-Insured Mortgage
Loan - Section 8 Assisted Project, Freeland Apartments,
Series 1993, 6.125%, 7/15/23
2,345 Swissvale Housing Development Corporation, Allegheny 7/03 at 100.00 Aa2 2,346,290
County, Pennsylvania, Multifamily Mortgage Revenue
Refunding Bonds, FHA-Insured Mortgage Loan - Section 8
Assisted Swissvale Project, Series 1993C, 6.100%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 11.3%
1,315 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 1,387,654
Single Family Mortgage Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Series 2000-II-2,
5.900%, 11/01/32 (Alternative Minimum Tax)
2,000 Pennsylvania Housing Finance Agency, Single Family 10/03 at 102.00 AA+ 2,053,880
Mortgage Revenue Bonds, Series 1993-37A,
5.450%, 10/01/17
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,219,546
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
2,815 Pennsylvania Housing Finance Agency, Single Family 4/06 at 102.00 AA+ 2,948,910
Mortgage Revenue Bonds, Series 1996-51, 6.375%, 4/01/28
(Alternative Minimum Tax)
1,990 Pennsylvania Housing Finance Agency, Single Family 10/06 at 102.00 AA+ 2,096,783
Mortgage Revenue Bonds, Series 1997-54A,6.150%, 10/01/22
(Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1997-56A:
1,500 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 1,596,135
4,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 4,214,400
1,565 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101.50 AA+ 1,628,664
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+ 1,711,507
Mortgage Revenue Bonds, Series 1997-59A,
5.700%, 4/01/17 (Alternative Minimum Tax)
1,190 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 1,238,159
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (Alternative Minimum Tax)
1,500 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/06 at 102.00 AAA 1,562,460
Mortgage Revenue Bonds, Series 1996C,
6.500%, 10/01/23 (Alternative Minimum Tax)
Pittsburgh Urban Redevelopment Authority, Pennsylvania,
Mortgage Revenue Bonds, Series 1997A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA 902,038
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 813,088
1,375 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/03 at 102.00 AAA 1,408,866
Mortgage Revenue Bonds, Series 1992D, 6.500%, 4/01/17
2,450 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/03 at 102.00 AAA 2,508,114
Mortgage Revenue Bonds, Series 1992C-1,
6.800%, 10/01/25 (Alternative Minimum Tax)
615 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/04 at 102.00 AAA 635,215
Mortgage Revenue Bonds, Series 1994B,
6.950%, 10/01/10 (Alternative Minimum Tax)
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.9%
$ 2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/04 at 102.00 BB- $ 1,812,360
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company, Inc. Project, Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 1,822,820
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 - AMBAC Insured No Opt. Call AAA 2,312,540
1,550 7.000%, 1/01/07 - AMBAC Insured No Opt. Call AAA 1,811,780
1,000 7.000%, 7/01/07 - AMBAC Insured No Opt. Call AAA 1,189,930
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,133,378
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.3%
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,011,570
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 905,624
Revenue Bonds, Northwestern Human Services Inc. Project,
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 8/03 at 100.00 AA 1,003,100
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,158,260
Philadelphia Authority for Industrial Development, Pennsylvania,
Healthcare Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,270,188
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,515,921
2,700 Philadelphia Hospitals and Higher Education Facilities 8/03 at 102.00 BBB+ 2,757,969
Authority, Pennsylvania, Revenue Refunding Bonds,
Philadelphia MR Project, Series 1992, 5.625%, 8/01/04
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.2%
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 536,500
Environmental Improvement Revenue Refunding Bonds,
Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.5%
2,120 Central Bucks School District, Bucks County, Pennsylvania, 5/13 at 100.00 Aaa 2,237,406
General Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
2,000 Centre County, Pennsylvania, General Obligation Bonds, 7/13 at 100.00 Aaa 2,052,700
Series 2003, 4.500%, 7/01/19 - MBIA Insured
Chichester School District, Delaware County, Pennsylvania,
General Obligation Bonds, Series 1999:
3,125 0.000%, 3/01/23 - FGIC Insured No Opt. Call AAA 1,223,406
3,125 0.000%, 3/01/24 - FGIC Insured No Opt. Call AAA 1,150,094
3,125 0.000%, 3/01/25 - FGIC Insured No Opt. Call AAA 1,084,281
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 654,273
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,001,633
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 962,885
2,750 0.000%, 11/01/23 - FSA Insured 5/16 at 69.88 AAA 937,750
1,500 Lancaster County, Pennsylvania, General Obligation Bonds, 11/12 at 100.00 Aaa 1,552,305
Series 2002A, 4.700%, 11/01/20 - FGIC Insured
4,305 Montgomery County, Pennsylvania, General Obligation 10/06 at 100.00 Aaa 4,655,858
Bonds, Series 1996B, 5.375%, 10/15/21
39
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2003
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 $ 1,074,920
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,069,960
1,735 5.000%, 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,843,559
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,115,360
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,393,579
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,739,438
2,000 Philadelphia School District, Pennsylvania, General No Opt. Call AAA 2,419,240
Obligation Refunding Bonds, Series 1995A, 6.250%, 9/01/09 -
AMBAC Insured
1,700 Pine-Richland School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 1,772,216
General Obligation Refunding Bonds, Series 2001,
5.000%, 9/01/29 - FSA Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District Project, Series 2003:
1,000 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 1,087,690
1,355 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 1,467,899
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, York City School District, Series 2003:
1,575 5.000%, 5/01/18 - FSA Insured 5/13 at 100.00 Aaa 1,701,284
1,655 5.000%, 5/01/19 - FSA Insured 5/13 at 100.00 Aaa 1,777,950
2,550 4.000%, 5/01/21 - FSA Insured 5/13 at 100.00 Aaa 2,435,352
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,640,884
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.9%
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100.00 AAA 4,464,944
Local Government Revenue Bonds, Series 1996A,
6.000%, 4/15/26 - AMBAC Insured
8,500 Pittsburgh and Allegheny County Public Auditorium 8/09 at 101.00 AAA 8,391,540
Authority, Pennsylvania, Hotel Room Excise Tax Revenue
Bonds, Series 1999, 4.500%, 2/01/29 - AMBAC Insured
2,405 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,861,469
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
11,225 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 11,393,712
Revenue Bonds, Series 1999A, 4.750%, 3/01/29 -
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 1,100,090
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,106,590
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 14.4%
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,420,497
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) -
MBIA Insured
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,785,932
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.875%, 6/01/33 - ACA Insured
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,753,071
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,318,400
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 6,931,638
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
7,000 Susquehanna Area Regional Airport Authority, 1/13 at 100.00 Aaa 7,238,070
Pennsylvania, Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.3%
$ 2,000 Bangor Area School District, Northampton County, 3/06 at 100.00 AAA $ 2,215,500
Pennsylvania, General Obligation Bonds, Series 1996B,
5.500%, 3/15/18 (Pre-refunded to 3/15/06) - FGIC Insured
2,500 Bensalem Township School District, Bucks County, 7/06 at 100.00 AAA 2,826,550
Pennsylvania, General Obligation Bonds, Series 1996,
5.875%, 7/15/16 (Pre-refunded to 7/15/06) - FGIC Insured
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,516,871
Series 2000, 5.625%, 11/15/28 (Pre-refunded to
11/15/10) - AMBAC Insured
17,895 Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100.00 AAA 20,612,714
Tax-Exempt Revenue Bonds, City of Harrisburg Project,
Series 1997-II, 5.625%, 9/15/22 (Pre-refunded to 9/15/07) -
MBIA Insured
1,500 Ligonier Valley School District, Westmoreland County, 3/04 at 100.00 AAA 1,551,075
Pennsylvania, General Obligation Bonds, Series 1994,
6.000%, 3/01/23 (Pre-refunded to 3/01/04) - MBIA Insured
1,380 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,727,801
College Revenue Bonds, Ninth Series 1976,
7.625%, 7/01/15
1,005 Philadelphia Hospitals and Higher Education Facilities 5/04 at 102.00 AAA 1,068,275
Authority, Pennsylvania, Revenue Bonds, Philadelphia
Community College, Series 1994, 6.100%, 5/01/10
(Pre-refunded to 5/01/04) - MBIA Insured
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 12/03 at 102.00 AAA 1,212,470
3,690 6.650%, 12/01/19 12/03 at 102.00 AAA 4,776,152
1,750 Pine-Richland School District, Allegheny County, 9/03 at 100.00 AAA 1,765,243
Pennsylvania, General Obligation Bonds, Series 1993A,
6.100%, 9/01/18 (Pre-refunded to 9/01/03) - AMBAC Insured
1,650 West View Borough, Municipal Authority, Allegheny No Opt. Call AAA 2,376,231
County, Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.8%
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,194,424
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 8,300,720
Pennsylvania, Exempt Facilities Revenue Bonds, Shippingport
Project, Series 1998A, 5.375%, 6/01/28 (Alternative
Minimum Tax) - AMBAC Insured
3,785 Carbon County Industrial Development Authority, No Opt. Call BBB- 4,062,403
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, 5/07 at 102.00 AAA 8,370,100
Pennsylvania, Pollution Control Revenue Bonds,
Metropolitan Edison Company Project, Series 1997A,
5.950%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 2,013,520
Pennsylvania, Pollution Control Revenue Refunding
Bonds, PSEG Power LLC Project, Series 2001A,
5.850%, 6/01/27 (Alternative Minimum Tax)
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,764,488
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay/Montgomery County Project,
Series 2002A, 5.250%, 11/01/13 - MBIA Insured
5,750 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/09 at 101.00 AAA 5,936,760
General Ordinance, Second Series 1999, 5.000%, 7/01/29 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.2%
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewer 12/10 at 101.00 AAA 2,160,300
Revenue Bonds, Series 2000, 5.500%, 12/01/30 -
MBIA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,244,200
Water Facility Revenue Bonds, Pennsylvania Suburban
Water Company Project, Series 2002, 5.550%, 9/01/32
(Alternative Minimum Tax) - FGIC Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,673,589
Water Facility Revenue Bonds, Consumers Water Company,
Shenango Valley Division Project, Series 2000,
6.000%, 7/01/30 (Alternative Minimum Tax) -
MBIA Insured
41
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 5,500 Northumberland County Industrial Development Authority, 10/03 at 102.00 AA- $ 5,672,700
Pennsylvania, Exempt Facilities Revenue Bonds, Roaring
Creek Water Company Project, Series 1993, 6.375%, 10/15/23
(Alternative Minimum Tax)
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 1995:
3,000 6.750%, 8/01/05 - MBIA Insured No Opt. Call AAA 3,332,220
2,730 6.250%, 8/01/10 - MBIA Insured No Opt. Call AAA 3,322,082
10,000 Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,784,294
and Sewer System First Lien Revenue Bonds, Series 1998B,
0.000%, 9/01/28 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 350,575 Total Long-Term Investments (cost $323,040,254) - 142.1% 350,314,727
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2%
500 Puerto Rico Government Development Bank, Adjustable VMIG-1 500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 0.870%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 500 Total Short-Term Investments (cost $500,000) 500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $323,540,254) - 142.3% 350,814,727
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.6% 13,888,950
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $246,603,677
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
42
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 5.2%
$ 3,000 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R $ 2,804,190
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5%
2,200 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- 2,408,538
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.3%
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,362,320
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
1,825 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,895,117
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
2,370 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 2,516,821
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,206,837
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,591,005
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,511,920
Bonds, Series 2002, 5.250%, 8/15/14
2,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 2,084,000
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.9%
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,556,025
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 583,818
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (WI, settling 7/01/03)
2,900 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 A 3,071,622
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,061,080
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
2,250 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 2,339,393
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0%
2,090 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 2,152,303
Single Family Mortgage Revenue Bonds, Series 1998-DD2,
5.400%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.1%
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 1,822,820
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 1,424,263
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
43
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.5%
$ 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R $ 996,620
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- 2,173,836
Center Revenue Bonds, Willow Valley Retirement Communities
Project, Series 2001, 5.875%, 6/01/31
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 3,018,923
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 39.4%
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,728,515
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
Lake-Lehman School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2001:
1,315 0.000%, 4/01/25 - MBIA Insured No Opt. Call AAA 442,511
1,315 0.000%, 4/01/26 - MBIA Insured No Opt. Call AAA 419,038
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,247,633
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 -
FGIC Insured
2,000 Pennsylvania General Obligation Bonds, Second 9/11 at 101.00 AA 2,255,000
Series 2001, 5.000%, 9/15/13
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,830,250
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,582,810
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
9,270 Reading School District, Berks County, Pennsylvania, General 7/11 at 54.58 AAA 3,438,243
Obligation Bonds, Series 2001A, 0.000%, 1/15/22 -
FGIC Insured
2,625 Sto-Rox School District, Allegheny County, Pennsylvania, 12/11 at 100.00 AAA 2,768,955
General Obligation Refunding Bonds, Series 2001,
5.125%, 12/15/29 - FGIC Insured
1,230 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,354,845
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.7%
1,500 Philadelphia Redevelopment Authority, Pennsylvania, 4/12 at 100.00 AAA 1,675,320
Revenue Bonds, Philadelphia Neighborhood Transformation
Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 832,860
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.7%
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,040,420
Revenue Bonds, Amtrak 30th Street Station Parking
Garage Project, Series 2002, 5.875%, 6/01/33 - ACA Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,805,720
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 2,344,589
Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A,
5.375%, 12/01/30 - AMBAC Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.6%
$ 500 Allegheny County Industrial Development Authority, No Opt. Call AAA $ 530,855
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 3,512,424
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay/Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
1,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 1,097,219
General Ordinance, Fourth Series 1998, 5.250%, 8/01/19 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 78,335 Total Long-Term Investments (cost $69,694,452) - 140.9% 75,488,658
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.7% 3,102,703
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.6)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $53,591,361
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
45
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.1%
$ 700 Allegheny County Higher Education Building Authority, No Opt. Call AA- $ 701,253
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,500 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,603,965
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
2,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 2,084,900
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 5,802,400
Bonds, Series 2002, 5.250%, 8/15/12
1,000 Union County Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 1,095,410
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 9.9%
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,044,820
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 583,818
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (WI, settling 7/01/03)
1,000 Philadelphia Hospitals and Higher Education Facilities 11/03 at 102.00 BBB 1,007,080
Authority, Pennsylvania, Hospital Revenue Bonds,
Temple University Hospital, Series 1993A, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,581,950
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+ 623,838
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.7%
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,379,020
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.4%
965 Allegheny County Residential Finance Authority, Pennsylvania, 5/12 at 102.00 Aaa 1,020,410
Healthcare Facilities Revenue Bonds - GNMA Collateralized,
Lemington Home for the Aged Project, Series 2002A,
5.750%, 5/20/37
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,204,561
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 996,620
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.1%
2,190 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 2,412,614
Environmental Improvement Revenue Bonds, USX Corp.
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 38.1%
2,500 Ambridge Area School District, Beaver County, Pennsylvania, 11/12 at 100.00 AAA 2,656,475
General Obligation Bonds, Series 2002B, 5.125%, 5/01/23 -
FGIC Insured
1,740 Butler Area School District, Butler County, Pennsylvania, 10/12 at 100.00 AAA 1,894,599
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
765 Butler Area School District, Butler County, Pennsylvania, 10/12 at 100.00 AAA 831,134
General Obligation Bonds, Series 2002B, 5.375%, 10/01/29 -
FGIC Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Bonds, Series 2002 Refunding:
$ 725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA $ 823,542
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,126,740
4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 4,696,444
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 415,019
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
4,000 Pennsylvania General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 4,420,040
5.000%, 9/15/15
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,174,460
Bonds, Series 2002A, 5.500%, 2/01/31 - FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,588,757
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.2%
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,766,320
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 2,118,320
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 4,171,320
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,220,593
Bonds, Series 2001, 5.500%, 7/15/33 - AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,107,080
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 1,123,200
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,923,110
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 832,860
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.5%
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,040,420
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.875%, 6/01/33 - ACA Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,008,660
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.0%
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,365,540
Series 2001, 5.500%, 11/15/26 (Pre-refunded to 5/15/11) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.5%
3,135 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,552,080
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay/Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
2,420 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 2,636,445
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
47
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS June 30, 2003
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.1%
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA $ 4,774,725
Water Facility Revenue Bonds, Pennsylvania Suburban
Water Company Project, Series 2002, 5.550%, 9/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 77,890 Total Long-Term Investments (cost $78,550,771) - 142.6% 84,410,542
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.5% 3,291,896
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.1)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $59,202,438
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent auditors): 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
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
48
Statement of
ASSETS AND LIABILITIES June 30, 2003
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $448,199,531, $262,699,786,
$140,849,524 and $100,628,657, respectively) $475,389,341 $284,939,193 $148,839,565 $105,913,304
Cash 3,467,846 -- 443,827 --
Receivables:
Interest 7,621,938 4,488,192 2,536,206 1,575,257
Investments sold 3,115,000 7,958,358 -- --
Other assets 13,067 18,539 8,221 9,950
------------------------------------------------------------------------------------------------------------------------------------
Total assets 489,607,192 297,404,282 151,827,819 107,498,511
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 3,728,720 -- 1,164,253
Payable for investments purchased 10,258,860 6,209,310 3,239,640 2,159,760
Accrued expenses:
Management fees 252,431 152,853 51,722 34,881
Other 115,374 139,148 29,185 20,910
Preferred share dividends payable 10,940 6,228 5,530 2,839
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 10,637,605 10,236,259 3,326,077 3,382,643
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $316,969,587 $195,568,023 $100,501,742 $ 69,615,868
====================================================================================================================================
Common shares outstanding 20,258,649 12,012,930 6,547,000 4,507,534
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.65 $ 16.28 $ 15.35 $ 15.44
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 202,586 $ 120,129 $ 65,470 $ 45,075
Paid-in surplus 285,497,149 171,436,986 92,923,228 63,910,979
Undistributed (Over-distribution of) net investment income 2,854,424 2,138,313 831,478 193,421
Accumulated net realized gain (loss) from investments 1,225,618 (366,812) (1,308,475) 181,746
Net unrealized appreciation of investments 27,189,810 22,239,407 7,990,041 5,284,647
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $316,969,587 $195,568,023 $100,501,742 $ 69,615,868
====================================================================================================================================
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.
49
Statement of
ASSETS AND LIABILITIES June 30, 2003 (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $357,190,415, $323,540,254,
$69,694,452 and $78,550,771, respectively) $385,600,445 $350,814,727 $75,488,658 $84,410,542
Cash 2,881,293 -- 336,625 --
Receivables:
Interest 5,187,102 5,260,387 1,109,374 1,329,701
Investments sold -- 13,690,673 2,284,800 2,652,000
Other assets 19,931 31,265 9,466 9,904
------------------------------------------------------------------------------------------------------------------------------------
Total assets 393,688,771 369,797,052 79,228,923 88,402,147
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 2,402,121 -- 53,682
Payable for investments purchased 2,429,025 2,331,864 582,966 582,966
Accrued expenses:
Management fees 206,997 193,142 31,675 30,197
Organization and offering costs -- -- -- --
Other 112,345 156,101 20,127 27,403
Preferred share dividends payable 16,240 10,147 2,794 5,461
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,764,607 5,093,375 637,562 699,709
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $258,924,164 $246,603,677 $53,591,361 $59,202,438
====================================================================================================================================
Common shares outstanding 16,275,318 15,753,059 3,296,957 3,723,722
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.91 $ 15.65 $ 16.25 $ 15.90
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 162,753 $ 157,531 $ 32,970 $ 37,237
Paid-in surplus 230,329,016 215,375,462 46,757,196 52,783,463
Undistributed (Over-distribution of) net investment income 1,125,245 2,790,848 513,680 (55,552)
Accumulated net realized gain (loss) from investments (1,102,880) 1,005,363 493,309 577,519
Net unrealized appreciation of investments 28,410,030 27,274,473 5,794,206 5,859,771
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $258,924,164 $246,603,677 $53,591,361 $59,202,438
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
OPERATIONS Year Ended June 30, 2003
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $25,040,498 $14,788,463 $ 7,522,491 $5,233,470
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 3,009,119 1,822,624 940,082 662,395
Preferred shares - auction fees 405,133 225,380 120,140 84,940
Preferred shares - dividend disbursing agent fees 30,000 30,000 10,000 10,000
Shareholders' servicing agent fees and expenses 66,433 40,149 2,583 2,747
Custodian's fees and expenses 120,493 75,492 36,731 31,974
Directors'/Trustees' fees and expenses 6,432 3,758 1,970 1,472
Professional fees 20,279 16,469 11,475 11,121
Shareholders' reports - printing and mailing expenses 60,653 29,273 8,370 9,883
Stock exchange listing fees 16,378 16,224 759 205
Investor relations expense 55,526 35,182 13,432 9,931
Other expenses 32,030 20,677 10,274 5,683
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 3,822,476 2,315,228 1,155,816 830,351
Custodian fee credit (20,645) (9,764) (10,065) (15,051)
Expense reimbursement -- -- (426,238) (301,086)
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,801,831 2,305,464 719,513 514,214
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 21,238,667 12,482,999 6,802,978 4,719,256
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,346,875 1,350,825 (1,018,294) 345,915
Change in net unrealized appreciation (depreciation) of investments 10,671,351 6,255,134 6,715,619 4,054,385
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 12,018,226 7,605,959 5,697,325 4,400,300
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,419,468) (886,855) (452,229) (345,886)
From accumulated net realized gains from investments (169,479) -- -- (20,192)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,588,947) (886,855) (452,229) (366,078)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $31,667,946 $19,202,103 $12,048,074 $8,753,478
===================================================================================================================================
See accompanying notes to financial statements.
51
Statement of
OPERATIONS Year Ended June 30, 2003 (continued)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $19,692,120 $19,193,515 $3,961,852 $4,176,560
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,437,870 2,291,689 497,911 556,399
Preferred shares - auction fees 330,036 295,164 62,573 74,076
Preferred shares - dividend disbursing agent fees 30,000 30,000 10,000 10,000
Shareholders' servicing agent fees and expenses 75,625 60,532 3,183 3,886
Custodian's fees and expenses 115,102 96,544 29,712 34,288
Directors'/Trustees' fees and expenses 5,832 3,489 630 1,321
Professional fees 18,939 16,582 10,394 10,140
Shareholders' reports - printing and mailing expenses 62,956 33,810 4,636 6,028
Stock exchange listing fees 16,339 16,234 438 168
Investor relations expense 52,853 41,158 6,546 11,238
Other expenses 26,857 16,769 9,589 4,217
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 3,172,409 2,901,971 635,612 711,761
Custodian fee credit (16,230) (30,084) (5,881) (15,777)
Expense reimbursement -- -- (221,005) (252,149)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,156,179 2,871,887 408,726 443,835
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 16,535,941 16,321,628 3,553,126 3,732,725
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investments 1,884,672 1,698,255 685,967 618,914
Change in net unrealized appreciation (depreciation) of investments 17,527,987 10,810,137 3,644,254 4,220,745
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 19,412,659 12,508,392 4,330,221 4,839,659
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,392,205) (1,223,173) (246,805) (317,893)
From accumulated net realized gains from investments -- -- (47,322) (17,220)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (1,392,205) (1,223,173) (294,127) (335,113)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $34,556,395 $27,606,847 $7,589,220 $8,237,271
====================================================================================================================================
See accompanying notes to financial statements.
52
Statement of
CHANGES IN NET ASSETS
NEW JERSEY INVESTMENT NEW JERSEY PREMIUM NEW JERSEY DIVIDEND
QUALITY (NQJ) INCOME (NNJ) ADVANTAGE (NXJ)
----------------------------- ------------------------------ ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/03 6/30/02 6/30/03 6/30/02 6/30/03 6/30/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 21,238,667 $ 22,266,375 $ 12,482,999 $ 12,692,718 $ 6,802,978 $ 6,785,279
Net realized gain (loss)
from investments 1,346,875 2,008,530 1,350,825 1,446,786 (1,018,294) (285,894)
Change in net unrealized
appreciation (depreciation)
of investments 10,671,351 (2,377,570) 6,255,134 1,407,496 6,715,619 (122,252)
Distributions to Preferred Shareholders:
From net investment
income (1,419,468) (2,560,820) (886,855) (1,417,848) (452,229) (855,272)
From accumulated net
realized gains
from investments (169,479) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 31,667,946 19,336,515 19,202,103 14,129,152 12,048,074 5,521,861
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (18,736,412) (18,508,380) (11,026,672) (10,187,469) (5,713,922) (5,578,064)
From accumulated net
realized gains
from investments (1,345,170) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares from
distributions to
Common shareholders (20,081,582) (18,508,380) (11,026,672) (10,187,469) (5,713,922) (5,578,064)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale
of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders
due to reinvestment
of distributions 575,330 2,194,939 -- -- -- --
Preferred shares offering costs -- -- -- -- 37,290 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares
from capital
share transactions 575,330 2,194,939 -- -- 37,290 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares 12,161,694 3,023,074 8,175,431 3,941,683 6,371,442 (56,203)
Net assets applicable
to Common
shares at the
beginning of period 304,807,893 301,784,819 187,392,592 183,450,909 94,130,300 94,186,503
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common
shares at the
end of period $316,969,587 $304,807,893 $195,568,023 $187,392,592 $100,501,742 $94,130,300
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income
at the end of period $ 2,854,424 $ 1,768,070 $ 2,138,313 $ 1,610,542 $ 831,478 $ 184,283
====================================================================================================================================
See accompanying notes to financial statements.
53
Statement of
CHANGES IN NET ASSETS (continued)
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
----------------------------- ----------------------------- ---------------------------
FOR THE PERIOD
3/26/02
(COMMENCEMENT
YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/03 THROUGH 6/30/02 6/30/03 6/30/02 6/30/03 6/30/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,719,256 $ 698,933 $ 16,535,941 $ 17,648,265 $ 16,321,628 $ 16,894,284
Net realized gain (loss)
from investments 345,915 (213) 1,884,672 2,590,369 1,698,255 1,191,174
Change in net unrealized
appreciation
(depreciation)
of investments 4,054,385 1,230,987 17,527,987 (1,250,135) 10,810,137 3,570,190
Distributions to Preferred Shareholders:
From net investment
income (345,886) (52,247) (1,392,205) (2,216,547) (1,223,173) (1,898,830)
From accumulated
net realized gains
from investments (20,192) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 8,753,478 1,877,460 34,556,395 16,771,952 27,606,847 19,756,818
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,137,816) (689,572) (14,842,385) (14,777,891) (14,623,151) (13,598,132)
From accumulated net
realized gains
from investments (143,736) -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares
from distributions
to Common shareholders (4,281,552) (689,572) (14,842,385) (14,777,891) (14,623,151) (13,598,132)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from
sale of shares -- 64,327,500 -- -- -- --
Net proceeds from shares
issued to shareholders
due to reinvestment
of distributions 7,924 122 283,963 1,744,182 84,070 --
Preferred shares
offering costs (17,393) (462,374) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares
from capital share
transactions (9,469) 63,865,248 283,963 1,744,182 84,070 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to
Common shares 4,462,457 65,053,136 19,997,973 3,738,243 13,067,766 6,158,686
Net assets applicable
to Common
shares at the
beginning of period 65,153,411 100,275 238,926,191 235,187,948 233,535,911 227,377,225
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common
shares at the
end of period $69,615,868 $65,153,411 $258,924,164 $238,926,191 $246,603,677 $233,535,911
====================================================================================================================================
Undistributed
(Over-distribution of)
net investment income
at the end of period $ 193,421 $ (42,886) $ 1,125,245 $ 847,477 $ 2,790,848 $ 2,445,025
====================================================================================================================================
See accompanying notes to financial statements.
54
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------------ ----------------------------
FOR THE
PERIOD 3/25/02
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
6/30/03 6/30/02 6/30/03 THROUGH 6/30/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,553,126 $ 3,696,942 $ 3,732,725 $ 568,127
Net realized gain (loss) from investments 685,967 226,686 618,914 85,308
Change in net unrealized appreciation
(depreciation) of investments 3,644,254 1,011,994 4,220,745 1,639,929
Distributions to Preferred Shareholders:
From net investment income (246,805) (436,152) (317,893) (51,479)
From accumulated net realized gains
from investments (47,322) (9,362) (17,220) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 7,589,220 4,490,108 8,237,271 2,241,885
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,033,667) (2,880,695) (3,418,107) (569,467)
From accumulated net realized gains
from investments (322,656) (41,536) (109,844) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,356,323) (2,922,231) (3,527,951) (569,467)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 53,105,925
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions -- 15,496 25,883 198
Preferred shares offering costs 51,983 -- (13,359) (398,222)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 51,983 15,496 12,524 52,707,901
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 4,284,880 1,583,373 4,721,844 54,380,319
Net assets applicable to Common
shares at the beginning of period 49,306,481 47,723,108 54,480,594 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $53,591,361 $49,306,481 $59,202,438 $54,480,594
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 513,680 $ 272,643 $ (55,552) $ (52,819)
====================================================================================================================================
See accompanying notes to financial statements.
55
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). 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 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.
Prior to the commencement of operations of New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY), each Fund had no operations other
than those related to organizational matters, the initial capital contribution
of $100,275 per Fund by Nuveen Advisory Corp. (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments, Inc. (formerly, The John Nuveen Company), and
the recording of the organization expenses ($11,500 per Fund) and their
reimbursement by Nuveen Investments, LLC (formerly, Nuveen Investments), also a
wholly owned subsidiary of Nuveen Investments, Inc.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the security. Temporary investments
in securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At June 30, 2003, New
Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) had an
outstanding when-issued purchase commitments of $10,258,860, $6,209,310,
$3,239,640, $2,159,760, $2,429,025, $2,331,864, $582,966, and $582,966,
respectively.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. 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 and local income 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, 2003, have been designated
Exempt Interest Dividends.
56
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid 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 such distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near 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
================================================================================
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended June 30, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for New Jersey Dividend
Advantage 2 (NUJ) and Pennsylvania Dividend Advantage 2 (NVY). New Jersey
Dividend Advantage 2's (NUJ) and Pennsylvania Dividend Advantage 2's (NVY) share
of Common share offering costs ($135,000 and $111,450, respectively) were
recorded as a reduction of the proceeds from the sale of Common shares.
Costs incurred by New Jersey Dividend Advantage 2 (NUJ) and Pennsylvania
Dividend Advantage 2 (NVY) in connection with their offering of Preferred shares
($479,767 and $411,581, respectively) were recorded as a reduction to paid-in
surplus.
57
Notes to
FINANCIAL STATEMENTS (continued)
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred 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
6/30/03 6/30/02 6/30/03 6/30/02 6/30/03 6/30/02
--------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 37,370 141,510 -- -- -- --
--------------------------------------------------------------------------------------------------------
37,370 141,510 -- -- -- --
========================================================================================================
Preferred shares sold -- -- -- -- -- --
========================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
-------------------------- ------------------------ -------------------------
FOR THE
PERIOD 3/26/02
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED THROUGH YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/03 6/30/02 6/30/03 6/30/02 6/30/03 6/30/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- 4,500,000 -- -- -- --
Shares issued to shareholders
due to reinvestment of
distributions 526 8 18,725 115,618 5,597 --
---------------------------------------------------------------------------------------------------------
526 4,500,008 18,725 115,618 5,597 --
=========================================================================================================
Preferred shares sold -- 1,380 -- -- -- --
=========================================================================================================
58
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ ---------------------------
FOR THE
PERIOD 3/25/02
(COMMENCEMENT
OF OPERATIONS)
YEAR ENDED YEAR ENDED YEAR ENDED THROUGH
6/30/03 6/30/02 6/30/03 6/30/02
----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 3,715,000
Shares issued to shareholders
due to reinvestment of
distributions -- 1,057 1,709 13
----------------------------------------------------------------------------------------------------------
-- 1,057 1,709 3,715,013
==========================================================================================================
Preferred shares sold -- -- -- 1,140
==========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended June 30, 2003, 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 $59,641,989 $38,214,481 $14,781,056 $14,433,798
Sales and maturities 56,551,685 37,450,009 11,768,310 11,847,470
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Purchases $39,970,806 $64,424,788 $ 9,668,549 $11,297,284
Sales and maturities 43,707,376 74,516,537 16,069,723 14,069,969
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At June 30, 2003, the cost of investments were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Cost of investments $448,166,377 $262,554,955 $140,825,794 $100,619,805
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $357,136,594 $323,314,583 $69,669,261 $78,545,240
================================================================================
59
Notes to
FINANCIAL STATEMENTS (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2003, 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 $30,573,696 $23,175,410 $8,936,212 $5,883,414
Depreciation (3,350,732) (791,172) (922,441) (589,915)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $27,222,964 $22,384,238 $8,013,771 $5,293,499
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $28,868,204 $28,816,102 $6,014,057 $5,865,302
Depreciation (404,353) (1,315,958) (194,660) --
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments $28,463,851 $27,500,144 $5,819,397 $5,865,302
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2003, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $4,388,218 $2,935,001 $1,314,052 $532,021
Undistributed net ordinary income * 41,048 1,718 72 181,959
Undistributed net long-term capital gains 1,228,997 -- -- --
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,277,915 $3,796,469 $752,413 $228,907
Undistributed net ordinary income * 46,683 23,349 6,531 383,089
Undistributed net long-term capital gains -- 1,005,363 487,758 194,764
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
60
The tax character of distributions paid during the fiscal years ended June 30,
2003 and June 30, 2002, 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
2003 (NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,112,448 $11,722,514 $6,130,175 $4,484,545
Distributions from net ordinary income * -- 133,874 -- 163,988
Distributions from net long-term capital gains 1,514,649 -- -- --
=========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2003 (NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,232,380 $15,704,179 $3,253,465 $3,737,200
Distributions from net ordinary income * -- 93,494 107,098 127,064
Distributions from net long-term capital gains -- -- 269,069 --
=========================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2002 (NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $21,088,032 $11,570,615 $6,441,891 $393,252
Distributions from net ordinary income * -- -- -- --
Distributions from net long-term capital gains -- -- -- --
=========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2002 (NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,999,987 $15,403,533 $3,318,131 $329,421
Distributions from net ordinary income * -- -- 50,898 --
Distributions from net long-term capital gains -- -- -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At June 30, 2003, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
NEW JERSEY NEW JERSEY PENNSYLVANIA
PREMIUM DIVIDEND INVESTMENT
INCOME ADVANTAGE QUALITY
(NNJ) (NXJ) (NQP)
--------------------------------------------------------------------------------
Expiration year:
2009 $366,812 $ -- $ --
2010 -- 278,092 1,102,880
--------------------------------------------------------------------------------
Total $366,812 $278,092 $1,102,880
================================================================================
New Jersey Dividend Advantage (NXJ) has elected to defer $1,030,383 of net
realized losses from investments incurred from November 1, 2002 through June 30,
2003 ("post-October losses") in accordance with Federal income tax regulations.
These post-October losses are treated as having arisen in the following fiscal
year.
61
Notes to
FINANCIAL STATEMENTS (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under New Jersey Investment Quality's (NQJ), New Jersey Premium Income's (NNJ),
Pennsylvania Investment Quality's (NQP) and Pennsylvania Premium Income 2's
(NPY) investment management agreements with the Adviser, each Fund pays an
annual management fee, payable monthly, at the rates set forth below, which are
based upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
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
================================================================================
Under New Jersey Dividend Advantage's (NXJ), New Jersey Dividend Advantage 2's
(NUJ), Pennsylvania Dividend Advantage's (NXM) and Pennsylvania Dividend
Advantage 2's (NVY) investment management agreements with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
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
================================================================================
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.
62
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.
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.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid August 1, 2003, to shareholders of record on
July 15, 2003, 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 $.0790 $.0780 $.0765 $.0765
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0790 $.0795 $.0765
================================================================================
63
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
Year Ended 6/30:
2003 $15.07 $1.05 $ .61 $(.07) $(.01) $1.58 $(.93) $(.07) $(1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
2000 15.14 1.20 (.63) (.29) (.01) .27 (.92) (.04) (.96)
1999 15.65 1.14 (.46) (.20) (.01) .47 (.93) (.03) (.96)
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
2000 14.92 1.08 (.62) (.25) -- .21 (.85) -- (.85)
1999 15.34 1.08 (.41) (.22) -- .45 (.87) -- (.87)
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
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:
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:
2003 $-- $15.65 $15.9400 11.68% 10.72%
2002 -- 15.07 15.2200 4.19 6.56
2001 -- 15.03 15.5000 17.13 10.62
2000 -- 14.45 14.0625 (4.94) 1.94
1999 (.02) 15.14 15.8125 (2.33) 2.82
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------
Year Ended 6/30:
2003 -- 16.28 16.1000 10.18 10.48
2002 -- 15.60 15.5000 7.88 7.91
2001 -- 15.27 15.1900 20.13 12.90
2000 -- 14.28 13.3750 (9.95) 1.64
1999 -- 14.92 15.8125 7.17 2.87
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------
Year Ended 6/30:
2003 .01 15.35 15.3000 15.09 13.18
2002 -- 14.38 14.1200 (.17) 6.05
2001(a) (.13) 14.39 14.9900 .87 1.42
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------
Year Ended 6/30:
2003 -- 15.44 15.4000 9.14 13.74
2002(b) (.14) 14.46 15.0400 1.29 1.98
====================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
Year Ended 6/30:
2003 $316,970 1.22% 6.80% 1.22% 6.81% 12%
2002 304,808 1.25 7.35 1.23 7.36 22
2001 301,785 1.24 7.97 1.23 7.99 16
2000 288,810 1.22 8.27 1.21 8.28 11
1999 301,329 1.13 7.27 1.13 7.27 8
NEW JERSEY PREMIUM
INCOME (NNJ)
----------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 195,568 1.20 6.48 1.20 6.48 13
2002 187,393 1.22 6.85 1.22 6.86 14
2001 183,451 1.25 7.14 1.24 7.15 6
2000 171,496 1.24 7.61 1.23 7.63 10
1999 178,704 1.24 7.00 1.24 7.00 10
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
----------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
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:
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:
2003 $162,000 $25,000 $73,915
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
2000 162,000 25,000 69,569
1999 162,000 25,000 71,501
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------
Year Ended 6/30:
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
2000 91,600 25,000 71,806
1999 91,600 25,000 73,773
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------
Year Ended 6/30:
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:
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 reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 28, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 26, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
64-65 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 Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 $14.70 $1.02 $1.19 $(.09) $-- $2.12 $ (.91) $-- $ (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
2000 15.33 1.25 (.83) (.29) (.02) .11 (.98) (.07) (1.05)
1999 15.94 1.22 (.59) (.21) -- .42 (1.01) -- (1.01)
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
2000 14.30 1.06 (.78) (.27) -- .01 (.81) (.02) (.83)
1999 14.86 1.04 (.61) (.23) -- .20 (.76) -- (.76)
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
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:
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:
2003 $-- $15.91 $16.0100 11.98% 14.79%
2002 -- 14.70 15.1800 6.57 7.34
2001 -- 14.57 15.1300 11.99 7.75
2000 -- 14.39 14.3750 (7.39) .94
1999 (.02) 15.33 16.6875 2.56 2.50
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2003 -- 15.65 16.0000 15.09 12.09
2002 -- 14.83 14.7900 13.25 8.88
2001 -- 14.44 13.8700 19.04 13.25
2000 -- 13.48 12.3750 (3.87) .21
1999 -- 14.30 13.7500 7.98 1.27
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2003 .02 16.25 16.4600 18.13 15.95
2002 -- 14.96 14.8900 9.10 9.67
2001(a) (.16) 14.48 14.4900 (2.45) 2.06
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------------------------
Year Ended 6/30:
2003 -- 15.90 15.8400 14.38 15.48
2002(b) (.14) 14.64 14.7400 (.73) 3.24
=======================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
--------------------------- -----------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 $258,924 1.27% 6.59% 1.26% 6.60% 11%
2002 238,926 1.31 7.42 1.30 7.44 34
2001 235,188 1.29 8.40 1.27 8.41 17
2000 231,525 1.26 8.57 1.25 8.59 8
1999 245,468 1.16 7.61 1.16 7.61 16
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2003 246,604 1.20 6.76 1.19 6.77 19
2002 233,536 1.24 7.28 1.23 7.29 7
2001 227,377 1.25 7.55 1.24 7.57 10
2000 212,325 1.26 7.88 1.25 7.89 14
1999 225,235 1.24 6.93 1.24 6.93 9
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
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:
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:
2003 $132,000 $25,000 $74,039
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
2000 132,000 25,000 68,849
1999 132,000 25,000 71,490
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
--------------------------------------------------------------------
Year Ended 6/30:
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
2000 118,100 25,000 69,946
1999 118,100 25,000 72,679
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------
Year Ended 6/30:
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:
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 reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 29, 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.
66-67 spread
Directors/Trustees
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board of
Directors/ Trustees of the Funds. The number of directors/trustees of the Funds
is currently set at eight. None of the directors/trustees who are not
"interested" persons of the Funds has ever been a director or employee of, or
consultant to, Nuveen or its affiliates. The names and business addresses of the
directors/trustees and officers of the Funds, their principal occupations and
other affiliations during the past five years, the number of portfolios each
oversees and other directorships they hold are set forth below.
NUMBER OF
PORTFOLIOS
IN FUND
COMPLEX
YEAR FIRST PRINCIPAL OCCUPATION(S) OVERSEEN
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS BY DIRECTOR/
AND ADDRESS WITH THE FUND APPOINTED(2) DURING PAST 5 YEARS TRUSTEE
------------------------------------------------------------------------------------------------------------------------------------
DIRECTOR/TRUSTEE WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of the 1994 Chairman and Director (since 1996) of Nuveen 140
3/28/49 Board and Investments, Inc. and Nuveen Investments, LLC;
333 W. Wacker Drive Director/Trustee Director (since 1992) and Chairman (since 1996) of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.; Chairman and Director (since 1997)
of Nuveen Asset Management, Inc.; 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).
DIRECTORS/TRUSTEES WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
William E. Bennett Director/Trustee 2001 Private Investor; previously, President and Chief 140
10/16/46 Executive Officer, Draper & Kramer, Inc., a private
333 W. Wacker Drive company that handles mortgage banking, real estate
Chicago, IL 60606 development, pension advisory and real estate
management (1995-1998). Prior thereto, Executive Vice
President and Chief Credit Officer of First Chicago
Corporation and its principal subsidiary, The
First National Bank of Chicago.
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Director/Trustee 1997 Private Investor and Management Consultant. 134
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Director/Trustee 1993 Retired (since 1989) as Senior Vice President of The 134
7/29/34 Northern Trust Company; Director of the United Way of
333 W. Wacker Drive Highland Park-Highwood (since 2002).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Anne E. Impellizzeri Director/Trustee 1994 Retired, formerly, Executive Director (since 1998) 134
1/26/33 of Manitoga/The Russel Wright Design Center; prior
333 W. Wacker Drive thereto, President and Chief Executive Officer of
Chicago, IL 60606 Blanton-Peale Institute (since 1990); prior thereto,
Vice President, Metropolitan Life Insurance Co.
------------------------------------------------------------------------------------------------------------------------------------
Peter R. Sawers Director/Trustee 1991 Adjunct Professor of Business and Economics, 134
4/3/33 University of Dubuque, Iowa; formerly (1991-2000)
333 W. Wacker Drive Adjunct Professor, Lake Forest Graduate School of
Chicago, IL 60606 Management, Lake Forest, Illinois; prior thereto,
Executive Director, Towers Perrin Australia, a
management consulting firm; Chartered Financial Analyst;
Certified Management Consultant; Director, Executive
Service Corps of Chicago, a not-for-profit organization.
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Director/Trustee 1997 Senior Partner and Chief Operating Officer, 134
9/24/44 Miller-Valentine Group, Vice President,
333 W. Wacker Drive Miller-Valentine Realty, a development and contract
Chicago, IL 60606 company; Chair, MiamiValley Hospital; Chair, Miami
Valley Economic Development Coalition; formerly,
Member, Community Advisory Board, National City Bank,
Dayton, Ohio and Business Advisory Council, Cleveland
Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Director/Trustee 1997 Executive Director, Gaylord and Dorothy Donnelley 134
12/29/47 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990
Chicago, IL 60606 to 1994).
68
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 140
9/9/56 Administrative and Associate General Counsel, formerly, Vice President
333 W. Wacker Drive Officer and Assistant General Counsel of Nuveen Investments,
Chicago, IL 60606 LLC; Managing Director (since 2002), General Counsel
and Assistant Secretary, formerly, Vice President of
Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.; Managing Director (since 2002), Assistant
Secretary and Associate General Counsel, formerly,
Vice President (since 2000), of Nuveen Asset
Management, Inc.; Assistant Secretary of Nuveen
Investments, Inc. (since 1994); 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 May 2003); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant 140
2/3/66 and Assistant Vice President (since 2000), previously, Associate of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Paul L. Brennan Vice President 1999 Vice President (since 2002), formerly, Assistant 122
11/10/66 Vice President (since 1997), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager of Flagship Financial
Chicago, IL 60606 Inc.; Chartered Financial Analyst and Certified
Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 140
11/28/67 and Treasurer 1999), prior thereto, Assistant Vice President (since
333 W. Wacker Drive 1997); Vice President and Treasurer of Nuveen
Chicago, IL 60606 Investments, Inc. (since 1999); Vice President and
Treasurer of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp. (since 1999); Vice
President and Treasurer of Nuveen Asset Management,
Inc. (since 2002) and of Nuveen Investments Advisers
Inc. (since 2002); Assistant Treasurer of NWQ Investment
Management Company, LLC (since 2002); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Susan M. DeSanto Vice President 2001 Vice President of Nuveen Advisory Corp. (since 2001); 140
9/8/54 previously, Vice President of Van Kampen Investment
333 W. Wacker Drive Advisory Corp. (since 1998); Vice President of Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 2002); prior
thereto, Assistant Vice President of Van Kampen
Investment Advisory Corp. (since 1994).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General 140
9/24/64 and Secretary Counsel (since 1998); formerly, Assistant Vice
333 W. Wacker Drive President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (since 2002) and Assistant Secretary
(since 1998), formerly Assistant Vice President of
Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.
69
Trustees
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Vice President of Nuveen Investments, LLC; Vice 140
10/24/45 President (since 1998) of Nuveen Advisory Corp. and
333 W. Wacker Drive Nuveen Institutional Advisory Corp.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 140
3/2/64 LLC; Managing Director (since 2001), formerly Vice
333 W. Wacker Drive President of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp. (since 1995); Managing
Director of Nuveen Asset Management, Inc. (since 2001);
Vice President of Nuveen Investment Advisers Inc.
(since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 140
5/31/54 and Controller (since 1998) of Nuveen Investments, LLC and Vice
333 W. Wacker Drive President and Funds Controller (since 1998) of Nuveen
Chicago, IL 60606 Investments, Inc.; Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
J. Thomas Futrell Vice President 1988 Vice President of Nuveen Advisory Corp.; 122
7/5/55 Chartered Financial Analyst.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Richard A. Huber Vice President 1997 Vice President of Nuveen Institutional Advisory Corp. 122
3/26/63 (since 1998) and Nuveen Advisory Corp. (since 1997);
333 W. Wacker Drive prior thereto, Vice President and Portfolio Manager of
Chicago, IL 60606 Flagship Financial, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Steven J. Krupa Vice President 1990 Vice President of Nuveen Advisory Corp. 122
8/21/57
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 140
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant 140
8/27/61 Vice President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant 140
7/27/51 and Assistant General Counsel of Nuveen Investments, LLC;
333 W. Wacker Drive Secretary Vice President and Assistant Secretary of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.;
Assistant Secretary of Nuveen Investments, Inc. and
(since 1997) Nuveen Asset Management, Inc.; Vice
President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of
Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); Assistant Secretary
of NWQ Investment Management Company, LLC
(since 2002).
70
NUMBER OF
PORTFOLIOS
IN FUND
YEAR FIRST PRINCIPAL OCCUPATION(S) COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN
AND ADDRESS WITH THE FUND APPOINTED(3) DURING PAST 5 YEARS BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, 140
7/7/65 LLC; Managing Director (since 1997), formerly Vice
333 W. Wacker Drive President (since 1996) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.; Managing Director
of Nuveen Asset Management, Inc. (since 1999).
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Thomas J. O'Shaughnessy Vice President 1999 Vice President (since 2002), formerly, Assistant 122
9/4/60 Vice President (since 1998), of Nuveen Advisory Corp.;
333 W. Wacker Drive prior thereto, portfolio manager.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Thomas C. Spalding Vice President 1982 Vice President of Nuveen Advisory Corp. and Nuveen 122
7/31/51 Institutional Advisory Corp.; Chartered Financial
333 W. Wacker Drive Analyst.
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and trustee of the
Adviser.
(2) Directors/Trustees serve a one-year term until his/her successor is elected.
The year first elected or appointed represents the year in which the
Directors/Trustee was first elected or appointed to any fund in the Nuveen
Complex.
(3) Officers serve a one-year term 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.
71
Build Your Wealth
AUTOMATICALLY
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
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
72
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
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 andCutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance 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 a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
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 NAV is calculated by subtracting the liabilities
of 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.
---------
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 ended June 30, 2003. Any future repurchases
will be reported to shareholders in the next annual or semiannual report.
73
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $80 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 tax-free 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.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
EAN-B-0603D
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEMS 5-6. [RESERVED]
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,
Nuveen Advisory Corp. (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. 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 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the Board of Directors or Trustees and
made available to shareholders as required by applicable rules.
ITEM 8. [RESERVED]
ITEM 9. 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 these
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
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 registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 10. 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.
(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 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certification required by Rule 30a-2(b) under the 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 he Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Pennsylvania Investment Quality Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: September 9, 2003
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: September 9, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: September 9, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.