UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09455
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Nuveen New Jersey Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
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: April 30
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Date of reporting period: October 31, 2007
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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.
Semi-Annual Report | Nuveen Investments
October 31, 2007 | Municipal Closed-End Funds
Photo of: small child.
NUVEEN NEW JERSEY
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY
PREMIUM INCOME
MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA
INVESTMENT QUALITY
MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA
PREMIUM INCOME
MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVY
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) | [LOGO]
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INVESTMENTS
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Chairman's
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------
Photo of: Timothy R. Schwertfeger.
| Timothy R. Schwertfeger | Chairman of the Board
Once again, I am pleased to report that over the six-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
I also wanted to take this opportunity to report some important news about
Nuveen Investments. The firm recently was acquired by a group led by Madison
Dearborn Partners, LLC. While this affects the corporate structure of Nuveen
Investments, it has no impact on the investment objectives, portfolio management
strategies or dividend policy of your Fund.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
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 investments like your Nuveen
Investments Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the internet. The inside front cover of this report
contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 14, 2007
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Portfolio Manager's COMMENTS
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Nuveen Investments Municipal Closed-End Funds | NQJ, NNJ, NXJ, NUJ,
| NQP, NPY, NXM, NVY
PORTFOLIO MANAGER CATHRYN STEEVES DISCUSSES KEY INVESTMENT STRATEGIES AND THE
SIX-MONTH PERFORMANCE OF THESE NUVEEN NEW JERSEY AND PENNSYLVANIA FUNDS.
CATHRYN, WHO JOINED NUVEEN IN 1996, ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY
FOR THESE EIGHT FUNDS IN 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN NEW JERSEY AND PENNSYLVANIA
FUNDS DURING THIS REPORTING PERIOD?
Over the course of this reporting period, we saw the municipal yield curve
steepen, as interest rates at the short end of the curve declined and longer
rates generally rose. In this environment, we continued to emphasize a
disciplined approach to duration(1) management and yield curve positioning.
In general, our investment strategies continued to focus on relative value, as
we looked for undervalued sectors and credits with the potential to perform well
over the long term. The majority of our purchases were attractively-priced
longer maturity bonds (i.e., bonds in the 25-year to 30-year part of the yield
curve). These purchases helped to offset the shortening of the Funds' portfolio
duration due to bond calls and the natural tendency of bond durations to shorten
as time passes.
When the liquidity crisis in August led the market to discount lower-quality
bonds, we took advantage of good opportunities to add lower-rated hospitals
securities, to both the New Jersey and Pennsylvania Funds. The New Jersey Funds
also purchased single-family housing bonds. Toward the end of the period, we
added some short-term insured bonds to the Pennsylvania Funds. These bonds, many
of which had underlying credits with which we were familiar through our research
efforts, offered attractive yields and pricing in the aftermath of the liquidity
crisis.
To help generate cash for purchases and move the Funds' durations closer to our
strategic target, we selectively sold holdings with shorter durations. Selling
these shorter duration bonds and reinvesting further out on the yield curve also
helped to improve the Funds' overall call protection profile. We took advantage
of strong bids to sell bonds that were attractive to the retail market in both
the New Jersey and Pennsylvania Funds.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
(1) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
As another part of our duration management strategy, we used inverse floating
rate securities,(2) a type of derivative financial instrument, in all four of
the Pennsylvania Funds. The inverse floaters had the dual benefit of bringing
the durations of these four Funds closer to our preferred strategic target and
enhancing their income-generation capabilities. In addition, NQP and NPY and the
four New Jersey Funds used forward interest rate swaps, another type of
derivative financial instrument. The goal of this strategy was to help us manage
net asset value (NAV) volatility without having a negative impact on the Funds'
income streams or common share dividends over the short term.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
Total Returns on Net Asset Value*
For periods ended 10/31/07
6-MONTH 1-YEAR 5-YEAR 10-YEAR
NEW JERSEY FUNDS
NQJ 0.07% 1.55% 5.73% 5.79%
NNJ 0.42% 1.78% 5.15% 5.98%
NXJ -0.05% 1.46% 6.51% NA
NUJ 0.09% 1.92% 6.60% NA
LIPPER NEW JERSEY
MUNICIPAL DEBT FUNDS
AVERAGE(3) -0.83% 0.90% 6.21% 5.67%
PENNSYLVANIA FUNDS
NQP -0.33% 0.65% 5.22% 5.33%
NPY -0.47% 1.01% 5.20% 5.90%
NXM -0.10% 1.36% 6.27% NA
NVY 0.25% 1.70% 5.96% NA
LIPPER PENNSYLVANIA
MUNICIPAL DEBT FUNDS
AVERAGE(3) -0.54% 1.14% 5.55% 5.69%
LEHMAN BROTHERS
MUNICIPAL BOND INDEX(4) 1.30% 2.91% 4.46% 5.29%
* Annualized.
Six-month returns are cumulative; all other returns are annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
(2) An inverse floating rate security is a financial instrument designed to
pay long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse
floating rate securities in which the Funds invested during the reporting
period, are further defined within the "Notes to Financial Statements" and
"Glossary of Terms Used in This Report" sections of this shareholder
report.
(3) The Lipper New Jersey Municipal Debt Funds Average category is calculated
using the returns of all closed-end funds in this category for each period
as follows: 6 months, 13 funds; 1 year, 13 funds; 5 years, 12 funds; and
10 years, 6 funds. The Lipper Pennsylvania Municipal Debt Funds Average
category is calculated using the returns of all closed-end funds for each
period as follows: 6 months, 9 funds; 1 year, 9 funds; 5 years, 8 funds;
and 10 years, 4 funds. Fund and Lipper returns assume reinvestment of
dividends.
(4) The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
5
For the six months ended October 31, 2007, the cumulative returns on NAV for the
New Jersey and Pennsylvania Funds underperformed the return on the national
Lehman Brothers Municipal Bond Index. The four New Jersey Funds outperformed the
Lipper New Jersey Municipal Debt Funds Average return, and the performance of
the four Pennsylvania Funds exceeded that of their Lipper Pennsylvania Municipal
Debt Funds Average.
One of the key factors in the six-month performance of these Funds relative to
that of the unleveraged Lehman Brothers Municipal Bond Index was the use of
financial leverage. The returns of all of these Funds were negatively impacted
by their use of leverage. Although leveraging provides opportunities for
additional income and total returns for common shareholders, it can also expose
shareholders to additional risk when market conditions are unfavorable. With the
dramatic increases in yields on longer municipal bonds, the impact of the
valuation changes in these bonds was magnified by the use of leverage. However,
we firmly believe that the use of this strategy should work to the benefit of
the Funds over the long term. This is demonstrated by the five-year and ten-year
return performances--both absolute and relative to the Lehman Brothers Municipal
Bond Index--of these eight Funds.
Other factors that influenced the Funds' returns included yield curve and
duration positioning, the use of derivatives in some Funds, credit exposure, and
sector allocations.
During this six-month period, bonds in the Lehman Brothers Municipal Bond Index
with maturities of less than eight years, especially those maturing in
approximately three to five years, benefited the most from changes in the
interest rate environment. As a result, these bonds generally outperformed
credits with longer maturities. Bonds having the longest maturities (22 years
and longer) posted the worst returns for the period. For the most part, the
Funds' yield curve positioning was a net positive for performance. Although the
New Jersey Funds were underexposed to the outperforming shorter maturity
categories, this was generally offset by the Funds' heavier weightings in the
intermediate part of the curve, which performed relatively well, and lower
allocations to the underperforming long part of the curve (except in NXJ).
Similarly, the Pennsylvania Funds had greater exposure to the intermediate part
of the curve and less exposure to the shorter end. While the exposure to longer
bonds in NXM and NVY was in line with the market, NQP and NPY were overexposed
to this part of the curve.
Because they effectively increased exposure to longer maturity bonds during a
period when shorter maturities were in favor in the market, the inverse floaters
in place in the four Pennsylvania Funds had a negative impact on the return
performance of these Funds for the six-month period. At the same time, however,
the inverse floaters benefited these Funds by helping to support their income
streams. We believed that, over time, these derivative financial instruments
would work to the advantage of the Funds.
While yield curve and duration positioning played an important role in
performance, especially during the last part of this period, credit exposure was
also a dominant factor over these six months. As interest rates on longer
municipal bonds rose, lower
6
credit quality bonds generally underperformed the municipal market as a whole
for the first time in several years. As of October 31, 2007, the New Jersey
Funds had weightings of bonds rated BBB or lower and non-rated bonds ranging
from approximately 10% in NNJ, 13% in NQJ to 14% in NXJ, and 17% in NUJ, while
the Pennsylvania Funds' allocations totaled approximately 5% in NQP, 12% in NPY,
13% in NXM, and 14% in NVY. This lower-rated credit exposure was a negative
influence on Funds' performances for this period. Conversely, the Funds'
weightings in bonds rated AAA and AA were generally positive for performance.
Overall, the Pennsylvania Funds were slightly better positioned in terms of
credit quality than the New Jersey Funds.
Sectors of the market that performed well included water and sewer,
transportation and education. Pre-refunded bonds, especially those that were
advance refunded(5) before longer municipal interest rates began to rise in
mid-2007, also performed well. This was especially true in NNJ, which benefited
from the price appreciation and enhanced credit quality associated with a major
advance refunding. In addition, the short-term insured bonds that we added to
the Pennsylvania Funds later in the period posted positive returns.
(5) Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
7
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Dividend and Share Price
INFORMATION
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As previously noted, all eight of these Funds use leverage to potentially
enhance opportunities for additional income for common shareholders. Although
the Funds' use of this strategy continued to provide incremental income, the
extent of this benefit was reduced due to short-term interest rates that
remained relatively high during most of this period. This, in turn, kept the
Funds' borrowing costs high. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds currently available in the market, which generally offered
lower yields during much of this period. These factors resulted in one monthly
dividend reduction in NNJ, NPY, and NVY and two reductions in NXJ, NUJ, and NXM
over the six-month period ended October 31, 2007. The dividend of NQJ remained
stable throughout this reporting period. In NQP, the use of derivatives helped
us to increase the dividend of this Fund effective August 2007.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2007, all of
the Funds in this report had negative UNII balances for financial statement
purposes and positive UNII balances, based upon our best estimate, for tax
purposes.
SHARE REPURCHASE AND SHARE PRICE INFORMATION
On July 10, 2007, the Board of Trustees of NQP and NPY approved an open market
share repurchase program. This was part of a broad, ongoing effort designed to
support the market prices of the Funds' common shares. Repurchases not only help
to support the market price but, because such purchases are made at a discount
to NAV, they have the effect of augmenting NAV. Under the terms of the program,
NQP and NPY may repurchase up to 10% of its outstanding common shares. As of
October 31, 2007, NQP and NPY had repurchased 120,900 and 142,000 common shares,
respectively, representing 1% of each Fund's total common shares outstanding.
8
As of October 31, 2007, the Funds' share prices were trading at discounts to
their NAVs as shown in the accompanying chart:
10/31/07 Six-Month Average
Discount Premium/Discount
NQJ -9.70% -7.07%
NNJ -9.56% -5.79%
NXJ -8.01% -3.99%
NUJ -5.69% +0.05%
NQP -8.91% -8.69%
NPY -11.67% -8.28%
NXM -9.08% -3.39%
NVY -9.06% -3.68%
9
NQJ | Nuveen New Jersey
Performance | Investment Quality
OVERVIEW | Municipal Fund, Inc.
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.22
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.64
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.70%
--------------------------------------------------------------------------------
Market Yield 4.95%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.34%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $299,955
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.24
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.39
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -5.30% 0.07%
--------------------------------------------------------------------------------
1-Year -1.37% 1.55%
--------------------------------------------------------------------------------
5-Year 4.13% 5.73%
--------------------------------------------------------------------------------
10-Year 4.36% 5.79%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.5%
--------------------------------------------------------------------------------
Transportation 17.1%
--------------------------------------------------------------------------------
Health Care 13.3%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.7%
--------------------------------------------------------------------------------
Tax Obligation/General 5.5%
--------------------------------------------------------------------------------
Water and Sewer 5.1%
--------------------------------------------------------------------------------
Other 12.2%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 75%
AA 6%
A 6%
BBB 10%
BB or Lower 2%
N/R 1%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545 0.0545
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
14.13
14.06
14.18
14.16
14.20
14.29
14.25
14.19
13.95
14.08
14.11
14.14
14.24
14.10
14.19
14.21
14.29
14.19
14.33
14.30
14.37
14.40
14.33
14.36
14.26
14.25
14.29
14.36
14.43
14.26
14.00
13.99
13.81
13.63
13.45
13.72
13.65
13.55
13.38
13.47
13.37
13.22
13.01
13.21
13.28
13.49
13.55
13.42
13.62
13.52
13.10
13.13
13.19
13.22
10/31/07
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2006
of $0.0342 per share.
10
NNJ | Nuveen New Jersey
Performance | Premium Income
OVERVIEW | Municipal Fund, Inc.
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 76%
AA 7%
A 7%
BBB 8%
BB or Lower 1%
N/R 1%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0575 0.0575 0.0575 0.0575 0.0575 0.0575 0.0575 0.0545 0.0545 0.0545 0.0545 0.0545
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
14.88
14.77
14.75
14.57
14.73
14.80
14.89
14.71
14.54
14.59
14.54
14.60
14.71
14.70
14.69
14.78
14.65
14.75
15.00
15.17
15.07
15.15
15.12
15.07
14.84
14.84
15.06
15.30
15.19
15.12
15.00
14.94
14.42
14.02
13.90
13.94
13.95
13.80
13.63
13.61
13.85
13.59
13.25
13.62
13.72
13.89
14.04
13.74
13.78
13.75
13.59
13.50
13.44
13.53
10/31/07
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.53
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.96
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.56%
--------------------------------------------------------------------------------
Market Yield 4.83%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.17%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $180,261
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 14.96
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.35
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -8.39% 0.42%
--------------------------------------------------------------------------------
1-Year -4.28% 1.78%
--------------------------------------------------------------------------------
5-Year 4.16% 5.15%
--------------------------------------------------------------------------------
10-Year 5.36% 5.98%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.6%
--------------------------------------------------------------------------------
Transportation 14.3%
--------------------------------------------------------------------------------
Health Care 12.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.8%
--------------------------------------------------------------------------------
Water and Sewer 8.7%
--------------------------------------------------------------------------------
Tax Obligation/General 7.6%
--------------------------------------------------------------------------------
Other 8.0%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0102 and $0.0003 per share,
respectively.
11
NXJ | Nuveen New Jersey
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.55
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.73
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.01%
--------------------------------------------------------------------------------
Market Yield 4.87%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.23%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $96,868
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.82
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.39
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -11.80% -0.05%
--------------------------------------------------------------------------------
1-Year -10.45% 1.46%
--------------------------------------------------------------------------------
5-Year 5.87% 6.51%
--------------------------------------------------------------------------------
Since
Inception 4.30% 6.36%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.1%
--------------------------------------------------------------------------------
Water and Sewer 16.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.1%
--------------------------------------------------------------------------------
Transportation 14.3%
--------------------------------------------------------------------------------
Health Care 13.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.5%
--------------------------------------------------------------------------------
Other 10.1%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[BAR CHART]
AAA/U.S. Guaranteed 72%
AA 4%
A 10%
BBB 11%
BB or Lower 2%
N/R 1%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0645 0.0645 0.0645 0.0645 0.0620 0.0620 0.0620 0.0580 0.0580 0.0580 0.0580 0.0550
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
15.75
15.45
15.45
15.51
15.42
15.87
15.36
15.64
15.75
15.85
15.65
15.95
16.09
15.85
15.75
16.40
15.76
15.63
16.06
15.84
15.72
15.77
15.66
15.96
15.59
15.54
15.78
15.60
15.36
15.25
14.93
15.33
14.51
14.01
13.98
14.17
14.08
13.74
13.75
13.66
13.71
13.70
13.10
13.67
13.69
14.07
14.40
13.70
13.90
13.49
13.68
13.42
13.33
13.55
10/31/07
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2006
of $0.0053 per share.
12
NUJ | Nuveen New Jersey
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 65%
AA 4%
A 14%
BBB 13%
BB or Lower 3%
N/R 1%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0660 0.0660 0.0660 0.0660 0.0660 0.0660 0.0660 0.0615 0.0615 0.0615 0.0615 0.0575
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
16.35
16.11
16.08
15.90
15.78
15.99
16.09
16.00
15.85
16.10
16.05
15.93
16.03
15.99
16.30
16.35
15.92
15.99
16.34
16.29
16.32
16.23
16.09
16.24
16.19
16.35
16.38
16.34
16.25
16.39
15.87
15.65
15.33
14.84
14.98
14.96
15.10
14.82
14.68
14.85
14.72
14.59
13.94
14.21
14.30
14.62
14.75
14.58
14.81
14.60
14.47
14.40
14.02
14.10
10/31/07
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $14.10
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.95
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -5.69%
--------------------------------------------------------------------------------
Market Yield 4.89%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.26%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $67,602
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.33
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.18
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -12.38% 0.09%
--------------------------------------------------------------------------------
1-Year -9.35% 1.92%
--------------------------------------------------------------------------------
5-Year 6.01% 6.60%
--------------------------------------------------------------------------------
Since
Inception 4.89% 6.90%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 18.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.8%
--------------------------------------------------------------------------------
Transportation 15.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.3%
--------------------------------------------------------------------------------
Long-Term Care 5.7%
--------------------------------------------------------------------------------
Tax Obligation/General 3.6%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders capital gains in December 2006 of $0.0033 per
share.
13
NQP | Nuveen Pennsylvania
Performance | Investment Quality
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.49
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.81
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.91%
--------------------------------------------------------------------------------
Market Yield 4.89%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.01%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $239,556
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.93
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.63
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -1.38% -0.33%
--------------------------------------------------------------------------------
1-Year 3.97% 0.65%
--------------------------------------------------------------------------------
5-Year 4.70% 5.22%
--------------------------------------------------------------------------------
10-Year 4.05% 5.33%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 20.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 19.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 16.1%
--------------------------------------------------------------------------------
Transportation 7.8%
--------------------------------------------------------------------------------
Health Care 7.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 5.4%
--------------------------------------------------------------------------------
Housing/Single Family 5.4%
--------------------------------------------------------------------------------
Utilities 4.5%
--------------------------------------------------------------------------------
Other 14.3%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 67%
AA 23%
A 5%
BBB 4%
N/R 1%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0550 0.0550 0.0550
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
13.63
13.61
13.71
13.65
13.69
13.81
13.83
13.76
13.58
13.58
13.63
13.72
13.71
13.62
13.75
13.75
13.80
13.79
14.00
14.07
14.00
13.95
14.05
14.03
13.95
13.94
14.00
14.10
14.01
13.97
13.85
13.86
13.51
13.48
13.33
13.40
13.51
13.27
13.31
13.24
13.37
13.15
13.08
13.20
13.28
13.46
13.50
13.31
13.65
13.50
13.44
13.34
13.47
13.49
10/31/07
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
14
NPY | Nuveen Pennsylvania
Performance | Premium Income
OVERVIEW | Municipal Fund 2
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 68%
AA 16%
A 4%
BBB 6%
BB or Lower 3%
N/R 3%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.0555 0.0555 0.0555 0.0555 0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0535 0.0495
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
13.51
13.46
13.57
13.51
13.44
13.59
13.62
13.55
13.58
13.54
13.51
13.46
13.50
13.55
13.62
13.65
13.79
13.67
13.84
13.88
13.75
13.71
13.87
13.91
13.71
13.66
13.74
13.76
13.61
13.70
13.51
13.54
13.28
13.16
13.04
13.16
13.06
12.97
13.01
13.07
13.18
12.93
12.43
12.73
12.95
13.10
13.37
13.05
12.97
12.91
12.74
12.77
12.60
12.64
10/31/07
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $12.64
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.31
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.67%
--------------------------------------------------------------------------------
Market Yield 4.70%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.73%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $224,463
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.65
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.66
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -5.27% -0.47%
--------------------------------------------------------------------------------
1-Year -1.17% 1.01%
--------------------------------------------------------------------------------
5-Year 4.37% 5.20%
--------------------------------------------------------------------------------
10-Year 5.60% 5.90%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 14.2%
--------------------------------------------------------------------------------
Tax Obligation/General 14.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 14.0%
--------------------------------------------------------------------------------
Transportation 12.3%
--------------------------------------------------------------------------------
Utilities 8.6%
--------------------------------------------------------------------------------
Water and Sewer 7.5%
--------------------------------------------------------------------------------
Health Care 6.9%
--------------------------------------------------------------------------------
Long-Term Care 6.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 4.9%
--------------------------------------------------------------------------------
Other 10.9%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
15
NXM | Nuveen Pennsylvania
Performance | Dividend Advantage
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.62
--------------------------------------------------------------------------------
Common Share
Net Asset Value $14.98
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.08%
--------------------------------------------------------------------------------
Market Yield 5.02%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.19%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $49,913
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 17.21
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.68
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -11.04% -0.10%
--------------------------------------------------------------------------------
1-Year -9.60% 1.36%
--------------------------------------------------------------------------------
5-Year 5.45% 6.27%
--------------------------------------------------------------------------------
Since
Inception 5.02% 7.28%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 19.6%
--------------------------------------------------------------------------------
Health Care 12.4%
--------------------------------------------------------------------------------
Tax Obligation/General 11.8%
--------------------------------------------------------------------------------
Long-Term Care 10.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 9.8%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.6%
--------------------------------------------------------------------------------
Transportation 7.6%
--------------------------------------------------------------------------------
Housing/Single Family 5.4%
--------------------------------------------------------------------------------
Other 14.1%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 55%
AA 22%
A 10%
BBB 6%
BB or Lower 2%
N/R 5%
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.0665 0.0665 0.0665 0.0665 0.0640 0.0640 0.0640 0.0600 0.0600 0.0600 0.0600 0.0570
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
15.90
15.95
16.28
16.00
16.15
16.12
16.14
16.40
15.82
15.89
15.90
15.88
15.80
15.50
15.73
15.75
16.15
15.87
15.96
15.90
15.99
15.94
15.88
15.86
15.81
15.66
15.68
15.53
15.45
15.37
15.30
15.50
15.25
15.06
14.81
14.77
14.77
14.51
14.25
14.25
14.37
14.09
13.32
13.60
13.90
14.17
14.19
14.08
13.98
13.90
13.83
13.88
13.57
13.62
10/31/07
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16
NVY | Nuveen Pennsylvania
Performance | Dividend Advantage
OVERVIEW | Municipal Fund 2
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 65%
AA 17%
A 4%
BBB 7%
BB or Lower 2%
N/R 5%
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0635 0.0610 0.0610 0.0610 0.0610 0.0610 0.0610 0.0610 0.0610 0.0610 0.0610 0.0575
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
Share Price Performance -- Weekly Closing Price
[LINE CHART]
11/01/06
15.30
15.16
15.34
15.26
15.18
15.49
15.35
15.54
15.75
15.44
15.38
14.95
14.70
14.50
14.70
14.67
14.86
14.80
14.93
15.09
14.75
14.83
14.86
15.35
15.16
15.11
15.24
15.09
15.50
15.45
14.90
15.30
14.72
14.78
14.43
14.51
14.56
14.35
14.43
14.50
14.20
13.99
13.60
13.78
13.86
14.16
14.65
14.24
14.14
14.10
13.84
13.97
13.89
13.65
10/31/07
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.65
--------------------------------------------------------------------------------
Common Share
Net Asset Value $15.01
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.06%
--------------------------------------------------------------------------------
Market Yield 5.05%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.23%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $55,908
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 14.78
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.09
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
6-Month
(Cumulative) -7.77% 0.25%
--------------------------------------------------------------------------------
1-Year -5.97% 1.70%
--------------------------------------------------------------------------------
5-Year 4.29% 5.96%
--------------------------------------------------------------------------------
Since
Inception 4.37% 6.84%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.6%
--------------------------------------------------------------------------------
Tax Obligation/General 16.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.9%
--------------------------------------------------------------------------------
Health Care 9.1%
--------------------------------------------------------------------------------
Water and Sewer 6.1%
--------------------------------------------------------------------------------
Housing/Single Family 4.4%
--------------------------------------------------------------------------------
Long-Term Care 3.9%
--------------------------------------------------------------------------------
Other 13.2%
--------------------------------------------------------------------------------
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(2) The Fund also paid shareholders a capital gains distribution in December
2006 of $0.0244 per share.
17
NQJ | Shareholder MEETING REPORT
NNJ | The special meeting of shareholders was held in the offices of
NXJ | Nuveen Investments on October 12, 2007; the meeting for Nuveen New
Jersey Dividend Advantage Municipal Fund (NXJ) was subsequently
adjourned to October 22, 2007 and additionally to November 8, 2007.
NQJ NNJ NXJ
-------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
-------------------------------------------------------------------------------------------------------------------------------
For 10,079,221 -- 6,077,136 -- 3,390,845 --
Against 530,881 -- 287,369 -- 202,863 --
Abstain 393,109 -- 245,906 -- 110,672 --
Broker Non-Votes 3,851,571 -- 2,387,881 -- 1,413,052 --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- 5,117,432 --
===============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 14,313,097 -- 8,626,168 -- -- --
Withhold 541,685 -- 372,124 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- -- --
===============================================================================================================================
Jack B. Evans
For 14,317,426 -- 8,629,502 -- -- --
Withhold 537,356 -- 368,790 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- -- --
===============================================================================================================================
William C. Hunter
For 14,319,686 -- 8,631,177 -- -- --
Withhold 535,096 -- 367,115 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- -- --
===============================================================================================================================
David J. Kundert
For 14,314,020 -- 8,628,647 -- -- --
Withhold 540,762 -- 369,645 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- -- --
===============================================================================================================================
William J. Schneider
For -- 4,476 -- 2,593 -- 1,357
Withhold -- 212 -- 145 -- 45
-------------------------------------------------------------------------------------------------------------------------------
Total -- 4,688 -- 2,738 -- 1,402
===============================================================================================================================
Timothy R. Schwertfeger
For -- 4,476 -- 2,597 -- 1,357
Withhold -- 212 -- 141 -- 45
-------------------------------------------------------------------------------------------------------------------------------
Total -- 4,688 -- 2,738 -- 1,402
===============================================================================================================================
Judith M. Stockdale
For 14,307,890 -- 8,629,193 -- 4,954,163 --
Withhold 546,892 -- 369,099 -- 163,269 --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- 5,117,432 --
===============================================================================================================================
Carole E. Stone
For 14,306,597 -- 8,632,527 -- 4,953,529 --
Withhold 548,185 -- 365,765 -- 163,903 --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- 5,117,432 --
===============================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 14,402,294 -- 8,758,702 -- 4,962,554 --
Against 233,947 -- 105,902 -- 88,333 --
Abstain 218,541 -- 133,688 -- 66,545 --
-------------------------------------------------------------------------------------------------------------------------------
Total 14,854,782 -- 8,998,292 -- 5,117,432 --
===============================================================================================================================
18
NUJ
NQP
NPY
NUJ NQP NPY
-------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
-------------------------------------------------------------------------------------------------------------------------------
For 2,376,570 -- 8,550,428 -- 8,569,219 --
Against 103,230 -- 536,125 -- 308,319 --
Abstain 51,542 -- 345,900 -- 225,418 --
Broker Non-Votes 966,380 -- 3,129,569 -- 3,112,168 --
-------------------------------------------------------------------------------------------------------------------------------
Total 3,497,722 -- 12,562,022 -- 12,215,124 --
===============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===============================================================================================================================
Jack B. Evans
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===============================================================================================================================
William C. Hunter
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===============================================================================================================================
David J. Kundert
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===============================================================================================================================
William J. Schneider
For -- 998 -- 4,433 -- 3,502
Withhold -- 60 -- 18 -- 42
-------------------------------------------------------------------------------------------------------------------------------
Total -- 1,058 -- 4,451 -- 3,544
===============================================================================================================================
Timothy R. Schwertfeger
For -- 998 -- 4,434 -- 3,503
Withhold -- 60 -- 17 -- 41
-------------------------------------------------------------------------------------------------------------------------------
Total -- 1,058 -- 4,451 -- 3,544
===============================================================================================================================
Judith M. Stockdale
For 3,385,687 -- 12,069,580 -- 11,817,918 --
Withhold 112,035 -- 492,442 -- 397,206 --
-------------------------------------------------------------------------------------------------------------------------------
Total 3,497,722 -- 12,562,022 -- 12,215,124 --
===============================================================================================================================
Carole E. Stone
For 3,384,300 -- 12,064,042 -- 11,812,391 --
Withhold 113,422 -- 497,980 -- 402,733 --
-------------------------------------------------------------------------------------------------------------------------------
Total 3,497,722 -- 12,562,022 -- 12,215,124 --
===============================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 3,387,905 -- 12,225,511 -- 11,926,208 --
Against 66,626 -- 120,942 -- 116,021 --
Abstain 43,191 -- 215,569 -- 172,895 --
-------------------------------------------------------------------------------------------------------------------------------
Total 3,497,722 -- 12,562,022 -- 12,215,124 --
===============================================================================================================================
19
NXM | Shareholder MEETING REPORT (continued)
NVY |
NXM NVY
-------------------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
-------------------------------------------------------------------------------------------------------------------------------
For 1,867,738 -- 2,112,650 --
Against 101,153 -- 74,209 --
Abstain 39,483 -- 41,086 --
Broker Non-Votes 545,734 -- 635,078 --
-------------------------------------------------------------------------------------------------------------------------------
Total 2,554,108 -- 2,863,023 --
===============================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For -- -- -- --
Withhold -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
===============================================================================================================================
Jack B. Evans
For -- -- -- --
Withhold -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
===============================================================================================================================
William C. Hunter
For -- -- -- --
Withhold -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
===============================================================================================================================
David J. Kundert
For -- -- -- --
Withhold -- -- -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- --
===============================================================================================================================
William J. Schneider
For -- 912 -- 1,052
Withhold -- 1 -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- 913 -- 1,052
===============================================================================================================================
Timothy R. Schwertfeger
For -- 912 -- 1,052
Withhold -- 1 -- --
-------------------------------------------------------------------------------------------------------------------------------
Total -- 913 -- 1,052
===============================================================================================================================
Judith M. Stockdale
For 2,386,506 -- 2,789,056 --
Withhold 167,602 -- 73,967 --
-------------------------------------------------------------------------------------------------------------------------------
Total 2,554,108 -- 2,863,023 --
===============================================================================================================================
Carole E. Stone
For 2,386,035 -- 2,788,056 --
Withhold 168,073 -- 74,967 --
-------------------------------------------------------------------------------------------------------------------------------
Total 2,554,108 -- 2,863,023 --
===============================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 2,448,722 -- 2,800,350 --
Against 34,264 -- 26,207 --
Abstain 71,122 -- 36,466 --
-------------------------------------------------------------------------------------------------------------------------------
Total 2,554,108 -- 2,863,023 --
===============================================================================================================================
20
| Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.2% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 751,384
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 654,003
-----------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 1,405,387
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.1% (2.7% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A:
4,300 4.750%, 6/01/34 6/17 at 100.00 BBB 3,587,576
10,000 5.000%, 6/01/41 6/17 at 100.00 BBB 8,580,799
-----------------------------------------------------------------------------------------------------------------------------------
14,300 Total Consumer Staples 12,168,375
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.3% (10.7% OF TOTAL
INVESTMENTS)
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,046,500
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC
Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 1,976,680
Fairleigh Dickinson University, Series 2002D, 5.250%,
7/01/32 - ACA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 513,845
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 1,003,360
Georgian Court University, Series 2007D, 5.000%, 7/01/27
3,555 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 3,719,845
Kean University, Series 2007D, 5.000%, 7/01/32 - FGIC Insured
120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 127,724
Montclair State University, Series 2004L, 5.125%, 7/01/22 -
MBIA Insured
1,225 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 1,319,374
Montclair State University, Series 2005F, 5.000%, 7/01/16 -
FGIC Insured
2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 2,881,437
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
New Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,050,710
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,043,631
New Jersey Educational Facilities Authority, Revenue Bonds,
New Jersey Institute of Technology, Series 2004B:
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,332,425
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,593,131
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,027,246
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,596,974
Ramapo College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured
21
| Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
NQJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA $ 634,071
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
690 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 690,380
Rider University, Series 2007C, 5.000%, 7/01/37 - RAAI Insured
New Jersey Educational Facilities Authority, Revenue Bonds, St.
Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 1,004,110
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,751,138
1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,525,138
William Paterson University, Series 2004A, 5.125%, 7/01/21 - FGIC
Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,067,840
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI
Insured
2,640 New Jersey Higher Education Assistance Authority, Student Loan 12/07 at 102.00 AAA 2,663,074
Revenue Bonds, New Jersey Class Loan Program, Series 1997A,
5.800%, 6/01/16 - MBIA Insured (Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 2,062,240
Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured
(Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,295,984
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,045,770
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,433,116
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,190,363
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,273,400
------------------------------------------------------------------------------------------------------------------------------------
47,260 Total Education and Civic Organizations 48,869,506
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 5,257,050
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.2% (13.3% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 196,914
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 1,027,870
5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 5,821,070
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001, 5.000%, 8/01/41 - AMBAC Insured
3,750 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 3,765,450
Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%,
7/01/37
2,840 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 2,808,590
Bonds, Capital Health System Obligated Group, Series 2003A,
5.375%, 7/01/33
1,265 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,321,634
Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30
- AGC Insured
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 404,580
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
1,200 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 1,199,916
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
615 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 620,738
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
$ 3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 $ 3,089,430
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.500%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,602,445
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 3,995,376
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,075,520
2,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 2,584,400
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%,
7/01/35 - RAAI Insured
1,985 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 1,919,832
Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%,
7/01/29
5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 5,212,066
Bonds, Society of the Valley Hospital Obligated Group, Series
2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 3,147,210
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
2,160 5.000%, 7/01/36 7/16 at 100.00 A3 2,175,725
1,965 5.000%, 7/01/46 7/16 at 100.00 A3 1,968,144
1,690 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,752,344
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 BBB 2,101,260
Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,138,856
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
2,605 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101.00 Aaa 2,648,061
Refunding Bonds, St. Barnabas Healthcare System - West Hudson
Hospital Obligated Group, Series 1998A, 5.000%, 7/01/23 -
MBIA Insured
3,730 Newark, New Jersey, GNMA Collateralized Healthcare Facility 6/12 at 102.00 Aaa 3,886,474
Revenue Bonds, New Community Urban Renewal Corporation, Series
2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
59,580 Total Health Care 60,463,905
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
645 Long Branch Housing Finance Corporation New Jersey, Housing 4/08 at 100.00 N/R 648,993
Revenue Bonds, Washington Manor Associates Ltd. Section 8
Assisted Elderly Project, Series 1980, 10.000%, 10/01/11
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,859,544
Housing Revenue Bonds, Fairview Apartments Project, Series
2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,388 Total Housing/Multifamily 3,508,537
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,655 New Jersey Housing and Mortgage Finance Agency, Home Buyer 4/08 at 101.50 AAA 2,696,338
Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA
Insured (Alternative Minimum Tax)
2,085 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 AAA 2,123,552
Program Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA
Insured (Alternative Minimum Tax)
1,025 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 967,631
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,587,680
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
23
| Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
NQJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (CONTINUED)
$ 2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA $ 2,582,564
Securities Home Mortgage Revenue Bonds, Series 2001B, 5.300%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,855 Total Housing/Single Family 10,957,765
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.2% (0.1% OF TOTAL INVESTMENTS)
980 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 1,030,940
Waste Resource Recovery Revenue Refunding Bonds, Waste
Management Inc. Project, Series 1999B, 6.850%, 12/01/29
(Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,080 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 1,069,837
Development Revenue Bonds, The Evergreens Project, Series 2007,
5.625%, 1/01/38
1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 1,156,601
Revenue Bonds, Winchester Gardens at Wards Homestead, Series
2004A, 5.750%, 11/01/24
2,840 New Jersey Economic Development Authority, GNMA Collateralized 12/11 at 103.00 Aaa 2,944,768
Mortgage Revenue Bonds, Victoria Health Corporation, Series
2001A, 5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 636,418
Masonic Charity Foundation of New Jersey, Series 2001, 5.875%,
6/01/18
1,100 New Jersey Economic Development Authority, Revenue Bonds, 6/13 at 102.00 A- 1,136,047
Masonic Charity Foundation of New Jersey, Series 2002, 5.250%,
6/01/32
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,010,580
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,507,440
------------------------------------------------------------------------------------------------------------------------------------
9,240 Total Long-Term Care 9,461,691
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.4% (5.5% OF TOTAL INVESTMENTS)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,760,673
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,675,814
1,000 Essex County, New Jersey, General Obligation Refunding Bonds, 11/07 at 101.00 Aaa 1,011,140
Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
4,300 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 AAA 4,546,562
2006A, 5.000%, 9/01/22 - AMBAC Insured
1,500 Middletown Township Board of Education, Monmouth County, New 8/10 at 100.00 AAA 1,535,775
Jersey, Refunding School Bonds, Series 2001, 5.000%, 8/01/27 -
FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, 6.000%, No Opt. Call AA 5,385,650
2/15/11
2,040 Ocean City Board of Education, Cape May County, New Jersey, 4/16 at 100.00 Aaa 2,170,254
General Obligation Bonds, Series 2005, 5.000%, 4/01/20 - MBIA
Insured
1,285 Tinton Falls Board of Education, Monmouth County, New Jersey, 10/14 at 100.00 Aaa 1,385,705
General Obligation Bonds, Series 2004, 5.000%, 10/15/15 - FSA
Insured
1,745 Washington Township Board of Education, Mercer County, New 1/16 at 100.00 Aaa 1,861,077
Jersey, General Obligation Bonds, Series 2005, 5.000%, 1/01/19
- FSA Insured
West Deptford Township, New Jersey, General Obligation Bonds,
Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,812,846
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,955,546
------------------------------------------------------------------------------------------------------------------------------------
23,750 Total Tax Obligation/General 25,101,042
------------------------------------------------------------------------------------------------------------------------------------
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.2% (18.6% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
$ 1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa $ 1,930,469
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,129,180
1,775 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,934,164
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
1,965 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 2,176,670
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22
- AMBAC Insured
2,650 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 2,919,903
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18
- FSA Insured
Gloucester County Improvement Authority, New Jersey, Lease
Revenue Bonds, Series 2005A:
1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA 1,171,610
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,053,220
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AAA 1,490,730
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project,
Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,136,216
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,607,795
1,445 Lower Township Municipal Utilities Authority, Cape May County, No Opt. Call Aaa 1,535,602
New Jersey, Revenue Bonds, Series 2003D, 5.000%, 12/01/16 -
FGIC Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,080,000
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,144,180
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,069,110
4,000 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 4,207,360
Revenue Bonds, Series 2004, 5.750%, 6/15/34
4,675 New Jersey Economic Development Authority, Lease Revenue Bonds, 3/15 at 100.00 AAA 4,865,273
Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 -
FSA Insured
5,000 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AAA 5,424,700
Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds, Newark
Downtown District Management Corporation Project, Series 2007:
205 5.125%, 6/15/27 6/17 at 100.00 Baa3 206,070
345 5.125%, 6/15/37 6/17 at 100.00 Baa3 338,279
1,965 New Jersey Economic Development Authority, School Facilities 9/17 at 100.00 AAA 2,052,580
Construction Financing Program Bonds, Series 2007U, 5.000%,
9/01/37 - AMBAC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,083,120
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,561,800
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
2,885 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 3,065,053
4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 4,662,692
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 3,611,139
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
25
| Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
NQJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (CONTINUED)
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
$ 1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA $ 1,156,431
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 2,034,463
4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,720,044
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 4,127,485
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,861,451
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
10,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 3,037,300
15,310 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 4,206,882
1,625 Passaic County Improvement Authority, New Jersey, Lease Revenue 5/15 at 100.00 Aaa 1,684,085
Bonds, Preakness Healthcare Center Project, Series 2005,
5.000%, 5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 1,297,195
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
97,740 Total Tax Obligation/Limited 84,582,251
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.1% (17.1% OF TOTAL INVESTMENTS)
2,250 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AAA 2,420,910
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 2,088,580
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,226,823
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,561,740
2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,599,775
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,642,695
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,087,073
Revenue Refunding Bonds, Port District Project, Series 2001A,
5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 11/07 at 100.00 CCC+ 3,001,770
American Airlines Inc., Series 1991, 7.100%, 11/01/31
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
495 6.500%, 1/01/16 No Opt. Call A 567,023
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 184,062
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,008,914
5.000%, 1/01/19 - FGIC Insured
1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,414,827
5.250%, 1/01/29 - FSA Insured
7,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AAA 7,325,290
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 -
XLCA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 2,062,300
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,375,806
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,144,250
1,330 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,516,240
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
7.511%, 8/15/32 - FSA Insured (IF)
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
$ 3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA $ 4,001,340
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 6,746,215
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,147,587
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,045,860
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
75,025 Total Transportation 78,169,080
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.5% (17.5% OF TOTAL INVESTMENTS) (4)
2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R (4) 2,751,575
Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27
(Pre-refunded 9/01/12)
3,275 Delaware River and Bay Authority, Delaware and New Jersey, 1/10 at 101.00 AAA 3,462,952
Revenue Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded
1/01/10) - AMBAC Insured
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,395,124
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 (Pre-refunded
10/01/13) - FGIC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,629,375
Kean University, Series 2003D, 5.250%, 7/01/20 (Pre-refunded
7/01/13) - FGIC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 2,099,309
Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded
7/01/16) - MBIA Insured
1,380 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 Aaa 1,502,406
Montclair State University, Series 2004L, 5.125%, 7/01/22
(Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 3,098,178
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,587,137
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/12 at 100.00 AAA 2,126,720
Jersey City University, Series 2002A, 5.000%, 7/01/32
(Pre-refunded 7/01/12) - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,051,680
Ramapo College, Series 2001D, 5.000%, 7/01/31 (Pre-refunded
7/01/11) - AMBAC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,403,857
Rowan University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded
7/01/13) - FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
1,195 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 1,292,213
1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 2,027,531
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3 (4) 8,605,520
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,996,989
System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded
12/15/11) - MBIA Insured
3,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 3,281,683
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 196,085
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 63,439
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,889,367
760 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 876,614
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 1,362,000
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
27
| Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
NQJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA $ 7,921,124
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
1,230 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,301,857
Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA
Insured
Sayreville School District, Middlesex County, New Jersey,
General Obligation Bonds, Series 2002:
680 5.000%, 3/01/24 (Pre-refunded 3/01/12) - FGIC Insured 3/12 at 100.00 Aaa 720,229
790 5.000%, 3/01/24 (Pre-refunded 3/01/12) - FGIC Insured 3/12 at 100.00 AAA 836,736
715 5.000%, 3/01/25 (Pre-refunded 3/01/12) - FGIC Insured 3/12 at 100.00 Aaa 757,299
830 5.000%, 3/01/25 (Pre-refunded 3/01/12) - FGIC Insured 3/12 at 100.00 AAA 879,103
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
7,275 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 7,804,620
3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,302,280
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,420,576
2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,982,551
------------------------------------------------------------------------------------------------------------------------------------
73,620 Total U.S. Guaranteed 79,626,129
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.0% (2.7% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, New 12/07 at 100.00 Baa3 3,548,930
Jersey, Solid Waste Disposal and Resource Recovery System
Revenue Bonds, Series 1991A, 7.500%, 12/01/10 (Alternative
Minimum Tax)
755 Camden County Pollution Control Financing Authority, New 12/07 at 100.00 Baa3 765,555
Jersey, Solid Waste Disposal and Resource Recovery System
Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative
Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AAA 2,197,165
Revenue Bonds, Regional Sludge Project, Series 2003, 5.000%,
12/15/14 - FGIC Insured
2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,544,750
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 3,034,260
Facility Senior Lien Revenue Bonds, Ogden Martin Systems of
Union Inc., Series 1998A, 5.000%, 6/01/23 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,810 Total Utilities 12,090,660
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.7% (5.1% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, New 7/08 at 102.00 AAA 3,074,160
Jersey, Sewer Revenue Bonds, Series 2001A-2, 5.200%, 7/15/21
- FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,869,910
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,939,760
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,057,090
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 7,500 New Jersey Economic Development 11/07 at 101.00 Aaa $ 7,501,350
Authority, Water Facilities Revenue Bonds, American Water
Company, Series 1996, 6.000%, 5/01/36 - FGIC Insured
(Alternative Minimum Tax)
North Hudson Sewerage Authority, New Jersey, Sewerage Revenue
Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa 3,204,720
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,187,920
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,304,775
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 23,139,685
------------------------------------------------------------------------------------------------------------------------------------
$ 456,373 Total Investments (cost $445,863,354) - 152.0% 455,832,003
================--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 6,122,988
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.0)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 299,954,991
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5)
-----------------------------------------------------------------------------------------------------------
JPMorgan $6,350,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08
Royal Bank of Canada 9,400,000 Pay SIFM 4.335 Quarterly 8/06/08
-----------------------------------------------------------------------------------------------------------
===========================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
UNREALIZED
TERMINATION APPRECIATION
COUNTERPARTY DATE (DEPRECIATION)
-------------------------------------------------
JPMorgan 4/25/35 $ 26,348
Royal Bank of Canada 8/06/37 296,386
-------------------------------------------------
$322,734
=================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29
| Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 450,830
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 393,349
-----------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 844,179
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.7% (2.5% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
2,520 4.750%, 6/01/34 6/17 at 100.00 BBB 2,102,486
5,300 5.000%, 6/01/41 6/17 at 100.00 BBB 4,547,824
-----------------------------------------------------------------------------------------------------------------------------------
7,820 Total Consumer Staples 6,650,310
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.7% (9.8% OF TOTAL
INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 AAA 1,177,313
Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 494,170
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32
- ACA Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 308,307
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
600 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 592,272
Georgian Court University, Series 2007D, 5.000%, 7/01/33
New Jersey Educational Facilities Authority, Revenue Bonds,
Kean University, Series 2007D:
2,090 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 AAA 2,186,913
2,000 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AAA 2,084,260
100 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 106,883
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 1,009,023
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 1,454,035
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 766,673
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,580,674
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,107,113
New Jersey Educational Facilities Authority, Revenue Bonds,
Ramapo College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 1,740,958
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,086,342
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 311,838
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
405 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 405,223
Rider University, Series 2007C, 5.000%, 7/01/37 - RAAI Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 115 New Jersey Educational Facilities Authority, Revenue Bonds, 1/08 at 100.00 A- $ 115,248
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
1,405 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 101.00 AAA 1,407,431
Revenue Bonds, Series 1999A, 5.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
New Jersey Higher Education Assistance Authority, Student Loan
Revenue Bonds, Series 2000A:
1,470 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 1,484,494
985 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,015,407
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,129,915
Certificates of Participation, Child Health Institute, LLC,
Series 2003, 5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AAA 1,034,970
Certificates of Participation, University Housing Associates,
LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 2,830,383
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
25,575 Total Education and Civic Organizations 26,429,845
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 1,577,115
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.1% (12.1% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 182,145
620 5.750%, 2/15/34 8/14 at 100.00 BBB 637,279
1,615 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 1,621,654
Bonds, Atlanticare Regional Medical Center, Series 2007,
5.000%, 7/01/37
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Capital Health System Obligated Group, Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 723,915
1,670 5.375%, 7/01/33 7/13 at 100.00 Baa1 1,651,530
240 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 242,748
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, Revenue 1/10 at 101.00 A3 2,994,018
Bonds, Hackensack University Medical Center, Series 2000,
6.000%, 1/01/34
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 699,951
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
375 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 378,499
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,585,715
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
1,700 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 1,772,539
Bonds, Meridian Health System Obligated Group, Series 1999,
5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 491,803
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 1,491,000
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%,
7/01/35 - RAAI Insured
1,160 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 1,121,917
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
31
| Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
NNJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA $ 2,098,420
Bonds, Society of the Valley Hospital Obligated Group, Series
2000, 5.750%, 7/01/15 - AMBAC Insured
1,875 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 1,788,188
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
1,245 5.000%, 7/01/36 7/16 at 100.00 A3 1,254,064
1,155 5.000%, 7/01/46 7/16 at 100.00 A3 1,156,848
1,270 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,316,850
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
2,050 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 BBB 2,153,792
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
630 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 658,596
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,722,021
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.000%, 7/01/22 - RAAI Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 12/07 at 101.00 A3 2,797,791
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
-----------------------------------------------------------------------------------------------------------------------------------
31,965 Total Health Care 32,541,283
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.9% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA Enhanced 11/12 at 100.00 Aaa 335,515
Multifamily Revenue Bonds, Mount Carmel Towers, Series 2002,
4.750%, 11/01/22 (Alternative Minimum Tax)
385 Long Branch Housing Finance Corporation New Jersey, Housing 4/08 at 100.00 N/R 387,383
Revenue Bonds, Washington Manor Associates Ltd. Section 8
Assisted Elderly Project, Series 1980, 10.000%, 10/01/11
4,445 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 4,516,876
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC
Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
5,170 Total Housing/Multifamily 5,239,774
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,515 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 4/08 at 101.50 AAA 1,539,058
400 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 4/08 at 101.50 AAA 406,228
430 New Jersey Housing and Mortgage Finance Agency, Home Buyer No Opt. Call AAA 438,161
Program Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 - MBIA
Insured
605 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 571,138
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,950 Total Housing/Single Family 2,954,585
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
575 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 604,889
Waste Resource Recovery Revenue Refunding Bonds, Waste
Management Inc. Project, Series 1999B, 6.850%, 12/01/29
(Mandatory put 12/01/09)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4% (0.9% OF TOTAL INVESTMENTS)
635 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 629,025
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R $ 764,453
Revenue Bonds, Winchester Gardens at Wards Homestead, Series
2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,053,510
Masonic Charity Foundation of New Jersey, Series 2001,
5.500%, 6/01/21
-----------------------------------------------------------------------------------------------------------------------------------
2,385 Total Long-Term Care 2,446,988
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.4% (7.6% OF TOTAL INVESTMENTS)
2,460 Freehold Regional High School District, Monmouth County Board No Opt. Call AAA 2,690,625
of Education, New Jersey, School District Refunding Bonds,
Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 AAA 2,643,350
2006A, 5.000%, 9/01/22 - AMBAC Insured
2,000 Manalapan-Englishtown Regional Board of Education, New Jersey, 10/13 at 100.00 AAA 2,076,500
General Obligation Bonds, Series 2003, 5.000%, 10/01/27 -
MBIA Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,778,995
1,560 6.000%, 2/15/13 No Opt. Call AA 1,735,578
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,214,480
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
Stafford Township Board of Education, Ocean County, New
Jersey, General Obligation Bonds, Series 2003:
1,350 5.250%, 1/15/18 - FSA Insured 1/12 at 100.00 Aaa 1,425,614
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,161,611
1,780 West Deptford Township, New Jersey, General Obligation Bonds, 9/14 at 100.00 Aaa 1,873,397
Series 2004, 4.750%, 9/01/17 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,330 Total Tax Obligation/General 20,600,150
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.3% (22.9% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,290,564
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,218,956
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,089,670
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
5,385 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa 5,739,440
Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
1,155 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 1,279,417
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
1,225 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 1,349,766
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18
- FSA Insured
Hudson County Improvement Authority, New Jersey, County
Secured Lease Revenue Bonds, County Services Building
Project, Series 2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,235,244
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,845,336
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,080,000
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,835,808
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,069,110
33
| Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
NNJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,540 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB $ 2,671,674
Revenue Bonds, Series 2004, 5.750%, 6/15/34
3,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 3,471,808
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds,
Newark Downtown District Management Corporation Project,
Series 2007:
120 5.125%, 6/15/27 6/17 at 100.00 Baa3 120,626
205 5.125%, 6/15/37 6/17 at 100.00 Baa3 201,007
1,155 New Jersey Economic Development Authority, School Facilities 9/17 at 100.00 AAA 1,206,478
Construction Financing Program Bonds, Series 2007U, 5.000%,
9/01/37 - AMBAC Insured
2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,787,238
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
2,615 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 2,736,911
3,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AAA 3,127,650
1,500 New Jersey Sports and Exposition Authority, Convention Center No Opt. Call AAA 1,698,765
Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 - MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,304,830
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,988,513
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 430,300
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 765,601
2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,921,932
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AAA 2,168,220
System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured
1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,177,766
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,921,969
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
6,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 1,822,380
4,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,099,120
780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 769,439
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aaa 2,816,590
Obligation Lease Revenue Bonds, Plainfield Park Madison
Redevelopment Project, Series 2003, 5.000%, 3/01/34 -
FSA Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,552,751
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
-----------------------------------------------------------------------------------------------------------------------------------
65,180 Total Tax Obligation/Limited 61,794,879
-----------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.3% (14.3% OF TOTAL INVESTMENTS)
$ 2,750 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AAA $ 2,958,890
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,602,900
4,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 4,159,640
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,365 6.500%, 1/01/16 No Opt. Call A 1,563,608
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 649,970
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 396,885
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,058,027
5.000%, 1/01/19 - FGIC Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue 4/15 at 100.00 Aaa 2,831,813
Bonds, Paterson Parking Deck Facility, Series 2005, 5.000%,
4/15/35 - FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AAA 4,185,880
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 -
XLCA Insured
1,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 1,031,150
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 2,057,700
Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 4/15/32
- FSA Insured
780 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 889,223
Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516,
7.511%, 8/15/32 - FSA Insured (IF)
8,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 8,171,035
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
850 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 886,491
Guaranteed Parking System Revenue Bonds, Series 2003, 5.000%,
10/01/24 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
36,655 Total Transportation 38,443,212
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.8% (16.6% OF TOTAL INVESTMENTS) (4)
2,075 Egg Harbor Township School District, Atlantic County, New 4/15 at 100.00 Aaa 2,250,607
Jersey, General Obligation Bonds, Series 2005, 5.000%,
4/01/27 (Pre-refunded 4/01/15) - MBIA Insured
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,395,124
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 (Pre-refunded
10/01/13) - FGIC Insured
130 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa 141,136
Bonds, Series 2003, 5.125%, 12/15/19 (Pre-refunded 12/15/13)
- FSA Insured
2,705 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R (4) 3,304,455
Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18 (ETM)
595 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 648,877
Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded
7/01/16) - MBIA Insured
1,145 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 Aaa 1,246,562
Montclair State University, Series 2004L, 5.125%, 7/01/19
(Pre-refunded 7/01/14) - MBIA Insured
2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,261,126
Montclair State University, Series 2005F, 5.000%, 7/01/32
(Pre-refunded 7/01/15) - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,079,890
Rowan University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded
7/01/13) - FGIC Insured
400 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 432,540
Rowan University, Series 2004C, 5.000%, 7/01/20 (Pre-refunded
7/01/14) - MBIA Insured
35
| Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
NNJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3 (4) $ 3,284,550
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 603,871
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30 (Pre-refunded 7/01/10)
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 546,560
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25 (Pre-refunded 7/01/12)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 536,350
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 224,921
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 138,413
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,601,169
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,030,054
2,745 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 3,166,193
750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 817,200
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,317,461
Series 2005RR, 5.000%, 7/01/35 (Pre-refunded 7/01/15) - FGIC
Insured
2,795 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 2,998,476
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,762,634
2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,556,473
350 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 376,761
Guaranteed Parking System Revenue Bonds, Series 2003, 5.000%,
10/01/24 (Pre-refunded 10/01/13) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
40,065 Total U.S. Guaranteed 44,721,403
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,276,500
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.0% (8.7% OF TOTAL INVESTMENTS)
Bayonne Municipal Utilities Authority, New Jersey, Water System
Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa 1,512,974
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,291,538
1,000 Hudson County Improvement Authority, New Jersey, Utility System 1/08 at 101.50 AAA 1,017,150
Revenue Bonds, Harrison Franchise Acquisition Project, Series
1997, 5.350%, 1/01/27 - FSA Insured
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, Sewer No Opt. Call AAA 1,109,090
Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 - AMBAC
Insured
3,100 New Jersey Economic Development Authority, Water Facilities 3/08 at 100.00 Aaa 3,104,588
Revenue Refunding Bonds, Hackensack Water Company, Series
1994B, 5.900%, 3/01/24 - MBIA Insured (Alternative Minimum
Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,291,522
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AAA 1,714,862
Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 -
MBIA Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 3,500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 Aaa $ 3,719,240
Refunding Bonds, Series 2002A,5.250%, 8/01/19 - FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,051,510
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, New No Opt. Call AAA 1,681,980
Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%,
9/01/18 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
22,400 Total Water and Sewer 23,494,454
-----------------------------------------------------------------------------------------------------------------------------------
$ 263,715 Total Investments (cost $262,218,796) - 149.6% 269,619,566
================-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,241,803
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (91,600,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 180,261,369
===================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $2,500,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 10,373
Royal Bank
of Canada 4,100,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 129,275
------------------------------------------------------------------------------------------------------------------------------------
$ 139,648
------------------------------------------------------------------------------------------------------------------------------------
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
37
| Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 244,200
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 218,001
45 New Jersey Economic Development Authority, General Motors No Opt. Call B- 44,774
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 506,975
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.8% (2.6% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
1,345 4.750%, 6/01/34 6/17 at 100.00 BBB 1,122,160
3,000 5.000%, 6/01/41 6/17 at 100.00 BBB 2,574,240
------------------------------------------------------------------------------------------------------------------------------------
4,345 Total Consumer Staples 3,696,400
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.6% (11.5% OF TOTAL
INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 256,923
Fairleigh Dickinson University,
Series 2004C, 5.500%, 7/01/23
325 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 327,672
Georgian Court University, Series
2007D, 5.250%, 7/01/37
1,115 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/17 at 100.00 AAA 1,166,703
University, Series 2007D,
5.000%, 7/01/32 - FGIC Insured
60 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 63,992
Montclair State University, Series
2004L, 5.125%, 7/01/21 - MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 1,009,023
Montclair State University, Series
2006, 5.000%, 7/01/36 - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/11 at 100.00 AAA 1,050,710
Jersey Institute of
Technology, Series 2001G, 5.250%, 7/01/18 - MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 AAA 1,055,850
Jersey Institute of
Technology, Series 2004B, 5.000%, 7/01/21 - AMBAC Insured
215 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 215,118
Rider University, Series 2007C,
5.000%, 7/01/37 - RAAI Insured
1,085 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,113,232
Rowan College, Series 2001C,
5.000%, 7/01/31 - FGIC Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 673,363
William Paterson University,
Series 2004A, 5.125%, 7/01/19 - FGIC Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 305,097
Bonds, Rider University, Series
2002A, 5.000%, 7/01/17 - RAAI Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 211,302
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 3,912,443
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,638,352
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (CONTINUED)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred
Heart, Series 2001:
$ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 2,028,800
500 5.250%, 9/01/31 9/11 at 100.00 BBB 501,250
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 507,325
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.500%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
15,570 Total Education and Civic Organizations 16,037,155
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,062,570
Refinery Facilities - Hovensa LLC
Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.9% (1.3% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R 824,279
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 256,920
Development Revenue Refunding Bonds,
Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 788,558
Bonds, Kapkowski Road Landfill
Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,869,757
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.8% (13.7% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 318,640
Cooper Health System, Series 2004A, 5.750%, 2/15/34
865 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 868,564
Bonds, Atlanticare Regional Medical Center, Series
2007, 5.000%, 7/01/37
890 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 880,157
Bonds, Capital Health System
Obligated Group, Series 2003A, 5.375%, 7/01/33
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,567,155
Bonds, CentraState Medical
Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured
130 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 131,489
Bonds, Children's Specialized
Hospital, Series 2005A, 5.500%, 7/01/36
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 399,972
Bonds, Hunterdon Medical
Center, Series 2006B, 5.000%, 7/01/36
180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 181,679
Bonds, Hunterdon Medical
Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,585,715
Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Robert Wood Johnson University
Hospital, Series 2000:
750 5.750%, 7/01/25 7/10 at 100.00 A2 778,320
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,113,280
610 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 589,974
Bonds, Saint Barnabas Health
Care System, Series 2006A, 5.000%, 7/01/29
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 953,700
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
665 5.000%, 7/01/36 7/16 at 100.00 A3 669,841
615 5.000%, 7/01/46 7/16 at 100.00 A3 615,984
39
| Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
NXJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
$ 845 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA $ 876,172
Bonds, St. Clare's Hospital,
Series 2004A, 5.250%, 7/01/20 - RAAI Insured
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 BBB 1,155,693
Bonds, St. Peter's University
Hospital, Series 2000A, 6.875%, 7/01/20
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,539,700
Refunding Bonds, Burdette
Tomlin Memorial Hospital, Series 1999, 5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
18,860 Total Health Care 19,226,035
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.4% (0.2% OF TOTAL INVESTMENTS)
325 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 306,810
Housing Revenue Bonds, Series
2007T, 4.700%, 10/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS)
310 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 326,114
Resource Recovery Revenue Refunding Bonds, Waste Management
Inc. Project, Series 1999B, 6.850%, 12/01/29
(Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.6% (1.8% OF TOTAL INVESTMENTS)
340 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 336,801
Development Revenue Bonds, The
Evergreens Project, Series 2007, 5.625%, 1/01/38
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 254,818
Revenue Bonds, Winchester Gardens at
Wards Homestead, Series 2004A, 5.800%, 11/01/31
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A- 1,079,100
335 5.500%, 6/01/31 6/11 at 102.00 A- 349,181
500 New Jersey Economic Development Authority, Revenue Bonds, United 1/08 at 102.00 BB+ 465,050
Methodist Homes of New Jersey
Obligated Group, Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,425 Total Long-Term Care 2,484,950
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.5% (1.8% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 1,057,340
5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,411,628
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,468,968
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.1% (18.1% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 653,802
Lease Revenue Bonds, County
Administration Complex Project, Series 2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,844,622
Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
1,000 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,076,940
Guaranteed Lease Revenue Bonds, Series
2005A, 5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 AAA 1,207,382
Room Fee Revenue Bonds, Series
2004, 5.250%, 1/01/16 - AMBAC Insured
500 Essex County Improvement Authority, New Jersey, Lease Revenue No Opt. Call Aaa 533,060
Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
620 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 686,786
Consolidation Revenue Bonds, Series
2007, 5.250%, 12/15/22 - AMBAC Insured
815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 898,008
Farmland Preservation Bonds,
Series 2005C, 5.125%, 11/01/18 - FSA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,262,208
Revenue Bonds, Series 2004, 5.750%, 6/15/34
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (CONTINUED)
$ 1,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AAA $ 1,301,928
Vehicle Surcharge, Series
2004A, 5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds, Newark
Downtown District Management Corporation Project, Series 2007:
65 5.125%, 6/15/27 6/17 at 100.00 Baa3 65,339
115 5.125%, 6/15/37 6/17 at 100.00 Baa3 112,760
615 New Jersey Economic Development Authority, School Facilities 9/17 at 100.00 AAA 642,411
Construction Financing Program
Bonds, Series 2007U, 5.000%, 9/01/37 - AMBAC Insured
525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 568,124
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005:
925 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 982,729
1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,465,268
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,101,610
Federal Transit Administration
Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,060,540
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 376,513
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 653,170
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,460,966
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,358,144
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,469,741
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
3,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 911,190
6,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,648,680
405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 399,516
Occupancy Tax Revenue Bonds, Series
2006A, 4.500%, 7/01/36 - CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,531,125
Refunding Bonds, Matching Fund
Loan Note, Series 1998A, 5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
30,170 Total Tax Obligation/Limited 25,272,562
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 20.7% (14.3% OF TOTAL INVESTMENTS)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 1,044,290
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,043,660
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 520,580
1,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 1,039,910
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 933,795
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
180 6.500%, 1/01/16 No Opt. Call A 206,190
50 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 57,520
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,160,710
5.000%, 1/01/19 - FGIC Insured
300 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 335,532
5.250%, 1/01/29 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/08 at 101.00 AAA 2,022,300
Bonds, One Hundred Ninth Series 1997, 5.375%,
1/15/32 - MBIA Insured
41
| Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
NXJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (CONTINUED)
$ 500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- $ 515,575
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
420 Port Authority of New York and New Jersey, One Hundred and Forty 8/17 at 100.00 AAA 478,813
Eighth Consolidated Revenue
Bonds, RITES Trust 1516, 7.511%, 8/15/32 - FSA Insured (IF)
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,106,899
Bonds, JFK International Air Terminal LLC, Sixth Series
1997, 5.750%, 12/01/22 - MBIA Insured
(Alternative Minimum Tax)
3,435 South Jersey Transportation Authority New Jersey, Transportation 11/09 at 101.00 AAA 3,551,034
System Revenue Bonds, Series
1999, 5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
19,285 Total Transportation 20,016,808
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.3% (16.1% OF TOTAL INVESTMENTS) (4)
1,630 Hamilton Township, Mercer County Board of Education, New Jersey, 8/10 at 100.00 AAA 1,687,115
General Obligation Bonds, Series 2001, 4.750%, 8/15/19
(Pre-refunded 8/15/10) - FSA Insured
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,522,640
Construction Bonds, Series 2001A,
5.000%, 6/15/21 (Pre-refunded 6/15/11) - AMBAC Insured
385 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA 419,862
University, Series 2005B,
5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured
690 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 Aaa 751,203
Montclair State University, Series
2004L, 5.125%, 7/01/21 (Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,304,496
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,087,080
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 565,282
415 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 Aaa 440,103
Rowan College, Series 2001C,
5.000%, 7/01/31 (Pre-refunded 7/01/11) - FGIC Insured
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 675,844
Rowan University, Series 2004C,
5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured
1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3 (4) 1,478,048
Bonds, South Jersey Hospital
System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 554,010
Bonds, Trinitas Hospital Obligated Group, Series
2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 149,947
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 23,069
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,043,863
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 408,600
Revenue Bonds, Series 2004,
5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,582,530
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001:
2,150 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 2,284,784
1,000 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,058,420
795 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 852,876
Settlement Asset-Backed Bonds, Series 2002, 5.750%,
6/01/32 (Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,240 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,394,403
1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,278,236
------------------------------------------------------------------------------------------------------------------------------------
20,955 Total U.S. Guaranteed 22,562,411
------------------------------------------------------------------------------------------------------------------------------------
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.4% (1.0% OF TOTAL INVESTMENTS)
$ 625 Camden County Pollution Control Financing Authority, New 12/07 at 100.00 Baa3 $ 633,738
Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 765,900
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
1,375 Total Utilities 1,399,638
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.4% (16.2% OF TOTAL INVESTMENTS)
225 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 234,295
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,752,589
Revenue Bonds, American Water Company, Series 1997B, 5.375%,
5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,113,609
Revenue Bonds, Middlesex Water Company, Series 1998,
5.350%, 2/01/38 - MBIA Insured (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,813,850
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage No Opt. Call Aaa 7,798,661
Revenue Refunding Bonds, Series 2001A,
0.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,475 Total Water and Sewer 22,713,004
------------------------------------------------------------------------------------------------------------------------------------
$ 149,830 Total Investments (cost $136,664,502) - 144.5% 139,950,157
================--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.1% 4,918,003
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 96,868,160
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
JPMorgan $ 1,500,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 6,224
Royal Bank
of Canada 3,000,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 94,591
------------------------------------------------------------------------------------------------------------------------------------
$ 100,815
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
43
| Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 169,061
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 142,175
40 New Jersey Economic Development Authority, General Motors No Opt. Call B- 39,799
Corporation, Series 1984, 5.350%, 4/01/09
-----------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 351,035
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.0% (2.6% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
950 4.750%, 6/01/34 6/17 at 100.00 BBB 792,604
2,200 5.000%, 6/01/41 6/17 at 100.00 BBB 1,887,776
-----------------------------------------------------------------------------------------------------------------------------------
3,150 Total Consumer Staples 2,680,380
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.4% (10.3% OF TOTAL
INVESTMENTS)
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,085,739
College of New Jersey Project,
Series 2002C, 4.750%, 7/01/19 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 205,538
Fairleigh Dickinson University,
Series 2004C, 5.500%, 7/01/23
280 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 276,394
Georgian Court University, Series 2007D, 5.000%, 7/01/33
790 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 826,632
Kean University, Series 2007D, 5.000%, 7/01/32 - FGIC Insured
710 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 738,563
Montclair State University, Series
2006, 5.000%, 7/01/36 - AMBAC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 AAA 607,114
Jersey Institute of Technology, Series 2004B, 5.000%,
7/01/21 - AMBAC Insured
150 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 150,083
Rider University, Series 2007C, 5.000%, 7/01/37 - RAAI Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 534,415
William Paterson University,
Series 2004A, 5.125%, 7/01/19 - FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,108,519
Bonds, Rider University, Series
2002A, 5.000%, 7/01/17 - RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 1,015,380
Environmental Control Facilities Financing
Authority, Higher Education Revenue Bonds, Ana G. Mendez
University System, Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 1,842,322
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,085 Total Education and Civic Organizations 10,390,699
-----------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,062,570
Refinery Facilities - Hovensa LLC
Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 5.0% (3.3% OF TOTAL INVESTMENTS)
$ 600 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R $ 581,844
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 1,284,600
Development Revenue Refunding Bonds,
Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14
1,450 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 1,524,545
Bonds, Kapkowski Road Landfill
Project, Series 2002, 5.750%, 10/01/21
-----------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 3,390,989
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 27.7% (18.4% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 226,131
Cooper Health System, Series 2004A, 5.750%, 2/15/34
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 523,555
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,948,793
610 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 612,513
Bonds, Atlanticare Regional
Medical Center, Series 2007, 5.000%, 7/01/37
New Jersey Health Care Facilities Financing Authority,
Revenue Bonds, Capital Health System Obligated Group,
Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 723,915
630 5.375%, 7/01/33 7/13 at 100.00 Baa1 623,032
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aaa 1,044,770
Bonds, CentraState Medical
Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured
90 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 91,031
Bonds, Children's Specialized
Hospital, Series 2005A, 5.500%, 7/01/36
250 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 249,983
Bonds, Hunterdon Medical
Center, Series 2006B, 5.000%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 121,120
Bonds, Hunterdon Medical
Center, Series 2006, 5.125%, 7/01/35
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Kennedy Health System Obligated Group, Series 2001:
400 5.500%, 7/01/21 7/11 at 100.00 A2 411,924
140 5.625%, 7/01/31 7/11 at 100.00 A2 143,429
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 524,928
Bonds, Meridian Health System
Obligated Group, Series 1999, 5.250%, 7/01/29 - FSA Insured
1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,253,303
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A2 3,632,159
Bonds, Robert Wood Johnson
University Hospital, Series 2000, 5.750%, 7/01/31
435 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 420,719
Bonds, Saint Barnabas Health
Care System, Series 2006A, 5.000%, 7/01/29
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 667,590
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
455 5.000%, 7/01/36 7/16 at 100.00 A3 458,312
435 5.000%, 7/01/46 7/16 at 100.00 A3 435,696
775 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 BBB 814,238
Bonds, St. Peter's University
Hospital, Series 2000A, 6.875%, 7/01/20
1,390 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 1,453,092
Refunding Bonds, Atlantic City
Medical Center, Series 2002, 5.750%, 7/01/25
45
| Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
NUJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
$ 1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA $ 1,151,415
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 12/07 at 101.00 A3 1,161,347
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
-----------------------------------------------------------------------------------------------------------------------------------
18,270 Total Health Care 18,692,995
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,920 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 1,951,181
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC
Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2% (0.3% OF TOTAL INVESTMENTS)
225 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 212,407
Housing Revenue Bonds, Series
2007T, 4.700%, 10/01/37 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.3% OF TOTAL INVESTMENTS)
220 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 231,436
Waste Resource Recovery Revenue
Refunding Bonds, Waste Management Inc. Project, Series 1999B,
6.850%, 12/01/29 (Mandatory put 12/01/09)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.6% (5.7% OF TOTAL INVESTMENTS)
240 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 237,742
Development Revenue Bonds, The
Evergreens Project, Series 2007, 5.625%, 1/01/38
New Jersey Economic Development Authority, Revenue Bonds, Masonic
Charity Foundation of New Jersey, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A- 1,053,510
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 4,169,319
375 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 348,788
United Methodist Homes of New Jersey
Obligated Group, Series 1998, 5.125%, 7/01/25
-----------------------------------------------------------------------------------------------------------------------------------
5,615 Total Long-Term Care 5,809,359
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.7% (1.1% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 AAA 740,138
2006A, 5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 401,216
Series 2001, 5.125%, 7/01/23 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,141,354
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.2% (14.8% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 435,868
Lease Revenue Bonds, County
Administration Complex Project, Series 2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,057,090
Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 AAA 823,215
Room Fee Revenue Bonds, Series
2004, 5.250%, 1/01/16 - AMBAC Insured
435 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 481,858
Consolidation Revenue Bonds, Series
2007, 5.250%, 12/15/22 - AMBAC Insured
530 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 583,981
Farmland Preservation Bonds,
Series 2005C, 5.125%, 11/01/18 - FSA Insured
510 Mansfield Township Board of Education, Warren County, New 3/08 at 100.00 AAA 513,912
Jersey, Certificates of
Participation, Series 1995, 5.900%, 3/01/15 - MBIA Insured
700 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 736,288
Revenue Bonds, Series 2004,
5.750%, 6/15/34
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (CONTINUED)
New Jersey Economic Development Authority, Revenue Bonds,
Newark Downtown District Management Corporation Project,
Series 2007:
$ 50 5.125%, 6/15/27 6/17 at 100.00 Baa3 $ 50,261
75 5.125%, 6/15/37 6/17 at 100.00 Baa3 73,539
435 New Jersey Economic Development Authority, School Facilities 9/17 at 100.00 AAA 454,388
Construction Financing Program
Bonds, Series 2007U, 5.000%, 9/01/37 - AMBAC Insured
350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 378,749
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005:
655 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AAA 695,879
985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,030,921
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,101,610
Federal Transit Administration
Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 811,313
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 317,346
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 562,154
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,011,438
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 705,598
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 904,456
System Bonds, Series 2006A, 5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
2,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 607,460
5,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,373,900
290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 286,073
Occupancy Tax Revenue Bonds, Series
2006A, 4.500%, 7/01/36 - CIFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,115 Total Tax Obligation/Limited 14,997,297
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.4% (15.6% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 520,580
Revenue Bonds, Series 2005, 5.000%,
1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 622,530
Revenue Bonds, Continental
Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative
Minimum Tax)
505 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 578,478
6.500%, 1/01/16
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,107,140
5.000%, 1/01/19 - FGIC Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,677,660
5.250%, 1/01/29 - FSA Insured
500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 515,575
Bonds, One Hundred
Thirty-Fourth Series 2004, 5.000%, 7/15/34
3,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 3,126,059
Bonds, One Hundred
Twenty-Fifth Series 2002, 5.000%, 10/15/26 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/14 at 100.00 AAA 2,030,720
Bonds, One Hundred
Twenty-Seventh Series 2002, 5.125%, 6/15/37 - AMBAC Insured
(Alternative Minimum Tax)
47
| Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
NUJ | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (CONTINUED)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
$ 4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA $ 4,572,959
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 51,069
-----------------------------------------------------------------------------------------------------------------------------------
14,655 Total Transportation 15,802,770
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.6% (17.8% OF TOTAL INVESTMENTS) (4)
1,000 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R (4) 1,100,630
Yeshiva Ktana of Passaic
Project, Series 2002, 6.000%, 9/15/27 (Pre-refunded 9/01/12)
500 Garden State Preservation Trust, New Jersey, Open Space and 11/13 at 100.00 AAA 545,430
Farmland Preservation Bonds,
Series 2003A, 5.250%, 11/01/19 (Pre-refunded 11/01/13) - FSA
Insured
2,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 2,121,460
General Obligation Bonds, Series
2002, 5.000%, 4/15/21 (Pre-refunded 4/15/12) - FGIC Insured
175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 190,846
Kean University, Series 2005B,
5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
800 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 869,664
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 342,430
1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A3 (4) 1,368,563
Bonds, South Jersey Hospital
System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
1,110 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 1,213,363
Refunding Bonds, Atlantic City
Medical Center, Series 2002, 5.750%, 7/01/25 (Pre-refunded
7/01/12)
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 719,216
System Bonds, Series 2001B,
5.000%, 12/15/21 (Pre-refunded 12/15/11) - MBIA Insured
535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 581,358
System Bonds, Series 2005D,
5.000%, 6/15/19 (Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 196,085
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,802,859
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 272,400
Revenue Bonds, Series 2004,
5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,055,020
Obligation Bonds, Series 2000A,
5.500%, 10/01/40
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- (4) 543,809
Appropriation Bonds, Series 2002E,
5.500%, 8/01/29 (Pre-refunded 2/01/12)
895 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 960,156
Settlement Asset-Backed Bonds,
Series 2002, 5.750%, 6/01/32 (Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
1,600 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,710,288
1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,420,263
-----------------------------------------------------------------------------------------------------------------------------------
16,465 Total U.S. Guaranteed 18,013,840
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.1% (3.4% OF TOTAL INVESTMENTS)
285 Camden County Pollution Control Financing Authority, New 12/07 at 100.00 Baa3 288,984
Jersey, Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/09 at 101.00 AAA 2,375,072
10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 765,900
Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
-----------------------------------------------------------------------------------------------------------------------------------
3,335 Total Utilities 3,429,956
-----------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.0% (0.7% OF TOTAL INVESTMENTS)
$ 150 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 156,197
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 Aaa 531,320
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 687,517
-----------------------------------------------------------------------------------------------------------------------------------
$ 99,460 Total Long-Term Investments (cost $96,202,064) - 146.2% 98,845,785
================-------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.7% (2.5% OF TOTAL INVESTMENTS)
Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 2,500,000
Bonds, Variable Rate Demand
Obligations, Series 1985, 3.200%, 12/01/15 - MBIA Insured (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,500 Total Short-Term Investments (cost $2,500,000) 2,500,000
================-------------------------------------------------------------------------------------------------------------------
Total Investments (cost $98,702,064) - 149.9% 101,345,785
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 756,398
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (34,500,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 67,602,183
===================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------------------------
JPMorgan $ 750,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ 3,112
Royal Bank
of Canada 1,600,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 50,449
-----------------------------------------------------------------------------------------------------------------------------------
$ 53,561
===================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
49
| Nuveen Pennsylvania Investment Quality Municipal Fund
NQP | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,089,740
Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 26.5% (16.1% OF TOTAL
INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,032,980
Pennsylvania, College Revenue Bonds,
Chatham College, Series 1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 221,504
Pennsylvania, College Revenue Refunding
Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,110,520
Pennsylvania, Revenue Bonds, Carnegie
Mellon University, Series 2002, 5.125%, 3/01/32
1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,167,742
Pennsylvania, Revenue Bonds, Robert
Morris University, Series 2006A, 4.750%, 2/15/26
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,068,200
Educational Facilities Revenue
Bonds, Westtown School, Series 2002, 5.000%, 1/01/26 - AMBAC
Insured
1,195 Cumberland County, Pennsylvania, Municipal Authority College 5/17 at 100.00 AAA 1,159,855
Revenue Bonds, Dickinson College,
Series 2007G-G1, 4.500%, 5/01/37 - MBIA Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,180,930
Haverford College, Series 2000, 5.750%, 11/15/29
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,802,152
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 884,016
Erie Higher Education Building Authority, Pennsylvania, College
Revenue Bonds, Gannon University, Series 2007-GG3:
790 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 AA 777,937
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 AA 245,238
1,000 Harveys Lake General Municipal Authority, Pennsylvania, College 11/09 at 100.00 A 1,021,960
Revenue Bonds, College of Misericordia Project, Series 1999,
6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project, Series
1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 592,383
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 564,225
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 536,881
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 510,516
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 485,707
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,386,770
Pennsylvania, Revenue Bonds, Arcadia
University, Series 2006, 4.500%, 4/01/30 - RAAI Insured
355 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 AA 354,247
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 AAA 8,204,960
Acquisition Revenue Refunding Bonds,
Series 2001, 5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 5,242,200
Revenue Bonds, State System of
Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,393,457
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,050,050
Bonds, Moravian College, Series
2001, 5.375%, 7/01/31 - RAAI Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (CONTINUED)
$ 3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA $ 4,094,499
Bonds, Temple University, First
Series of 2006, 5.000%, 4/01/21 - MBIA Insured
320 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 330,186
Bonds, Thomas Jefferson
University, Series 2002, 5.000%, 1/01/20
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA 2,061,100
Bonds, University of Pennsylvania,
Series 2005C, 5.000%, 7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 3,035,294
Bonds, Ursinus College, Series
2003, 5.375%, 1/01/20 - RAAI Insured
6,500 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 6,762,210
2005, 5.000%, 9/01/29 (UB)
510 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 507,827
Pennsylvania, Revenue Bonds, Franklin Towne
Charter High School, Series 2006A, 5.250%, 1/01/27
2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore College 9/08 at 100.00 Aaa 2,859,092
Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,759,838
Pennsylvania, Revenue Bonds,
Bucknell University, Series 2002A, 5.250%, 4/01/18
------------------------------------------------------------------------------------------------------------------------------------
63,240 Total Education and Civic Organizations 63,404,476
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.9% (6.6% OF TOTAL INVESTMENTS)
1,555 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,471,808
Revenue Bonds, Ohio Valley
General Hospital, Series 2005A, 5.125%, 4/01/35
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,182,156
Hamot Health Foundation, Series
2002, 5.250%, 11/01/15 - AMBAC Insured
1,280 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 AAA 1,304,730
Hamot Health Foundation, Series
2007, 5.000%, 11/01/37 - CIFG Insured
Lancaster County Hospital Authority, Pennsylvania, Hospital
Revenue Bonds, The Lancaster
General Hospital Project, Series 2007A:
1,890 5.000%, 3/15/26 3/17 at 100.00 AA- 1,928,896
750 5.000%, 3/15/31 3/17 at 100.00 AA- 759,758
800 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 744,128
Revenue Bonds, The Lancaster
General Hospital Project, Series 2007B, 4.500%, 3/15/36
250 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 260,085
Revenue Bonds, Good Samaritan
Hospital Project, Series 2002, 5.800%, 11/15/22
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,298,113
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
710 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 BBB+ 682,942
Revenue Bonds, Pocono Medical Center,
Series 2007, 5.125%, 1/01/37
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 9,612,360
Bonds, UPMC Health System,
Series 2001A, 6.000%, 1/15/31
1,500 Philadelphia Hospitals and Higher Education Facilities 7/17 at 100.00 AA 1,425,630
Authority, Pennsylvania, Hospital
Revenue Bonds, Children's Hospital of Philadelphia, Series
2007, 4.500%, 7/01/33
1,225 Philadelphia Hospitals and Higher Education Facilities 11/07 at 100.00 BBB 1,227,438
Authority, Pennsylvania, Hospital
Revenue Bonds, Temple University Hospital, Series 1993A,
6.625%, 11/15/23
1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 AAA 1,718,812
Bonds, Latrobe Area Hospital,
Series 2002A, 5.250%, 7/01/13 - AMBAC Insured
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 527,058
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 368,513
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,560,750
Pennsylvania, Hospital Revenue Bonds,
Holy Spirit Hospital of the Sisters of Christian Charity
Project, Series 2001, 6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
25,335 Total Health Care 26,073,177
------------------------------------------------------------------------------------------------------------------------------------
51
| Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
NQP | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.0% (2.4% OF TOTAL INVESTMENTS)
$ 5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/17 at 100.00 AAA $ 5,136,650
Bonds, Slippery Rock University
Foundation Inc., Series 2007A, 5.000%, 7/01/39 - XLCA Insured
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 3,383,193
Bonds, Slippery Rock University
Foundation Inc., Student Housing Project, Series 2005A, 5.000%,
7/01/37 - XLCA Insured
800 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 810,888
Pennsylvania, Multifamily Housing Revenue
Bonds, Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
355 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/08 at 100.00 A2 355,458
Mortgage Revenue Bonds, Series 1992C,
7.125%, 8/01/13 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,455 Total Housing/Multifamily 9,686,189
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.9% (5.4% OF TOTAL INVESTMENTS)
9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 8,691,480
Revenue Bonds, Series 1995A,
4.900%, 10/01/37 (Alternative Minimum Tax)
2,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,738,175
Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
3,495 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,500,487
Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,283,971
Revenue Bonds, Series 2007-97A,
4.600%, 10/01/27 (Alternative Minimum Tax)
2,130 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 2,061,095
Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/08 at 101.00 AAA 970,109
Mortgage Revenue Bonds, Series 1997A,
6.250%, 10/01/28 (Alternative Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,165,059
Mortgage Revenue Bonds, Series 2001B,
5.450%, 10/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
21,830 Total Housing/Single Family 21,410,376
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.4% (2.7% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 5,194,500
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 5,392,250
Development Revenue Bonds, Series
2002, 5.500%, 7/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 10,586,750
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9% (1.8% OF TOTAL INVESTMENTS)
1,330 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 1,250,599
Bonds, Diakon Lutheran Social
Ministries, Series 2007, 5.000%, 1/01/36
1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,504,605
Bonds, Presbyterian Homes Inc.,
Series 2003A, 5.000%, 12/01/26 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,550 5.000%, 11/01/26 11/16 at 100.00 A+ 1,571,871
840 5.000%, 11/01/36 11/16 at 100.00 A+ 840,302
230 Philadelphia Authority for Industrial Development, 5/08 at 102.00 N/R 230,396
Pennsylvania, Health Care Facilities
Revenue Bonds, Paul's Run, Series 1998A, 5.875%, 5/15/28
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,554,660
Pennsylvania, Revenue Bonds, Philadelphia
Corporation for the Aging Project, Series 2001B, 5.250%,
7/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,950 Total Long-Term Care 6,952,433
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,259,156
Solid Waste Disposal Revenue
Bonds, International Paper Company, Series 2005B, 5.200%,
12/01/19 (Alternative Minimum Tax)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (CONTINUED)
$ 1,750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R $ 1,780,625
Facilities Revenue Bonds,
National Gypsum Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 3,039,781
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.6% (19.8% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,887,498
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,296,624
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call Aa2 6,757,680
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call AAA 2,482,904
Obligation Bonds, Series 2000,
0.000%, 9/01/30 - AMBAC Insured (4)
2,345 Lower Merion School District, Montgomery County, Pennsylvania, 9/17 at 100.00 Aaa 2,489,874
General Obligation Bonds, Series 2007, 5.000%, 9/01/24
7,500 Montgomery County, Pennsylvania, General Obligation Bonds, 7/09 at 100.00 Aaa 7,630,725
Series 1999, 5.000%, 7/15/24
4,960 Montour School District, Allegheny County, Pennsylvania, 4/17 at 100.00 AAA 5,146,546
General Obligation Bonds, Series
2007, 5.000%, 4/01/37 - FSA Insured
1,000 New Castle Area School District, Lawrence County, Pennsylvania, 3/10 at 100.00 AAA 1,042,040
General Obligation Bonds,
Series 2000, 5.600%, 3/01/25 - MBIA Insured
5,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 5,188,700
Bonds, School District of
Philadelphia, Series 2006B, 5.000%, 6/01/33 - FSA Insured (UB)
4,830 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,174,959
Residuals 1986, 6.938%, 3/01/27 (IF)
4,000 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 4,296,760
5.000%, 10/01/18
1,500 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 1,604,085
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 1,602,225
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,345,150
General Obligation Refunding
Bonds, Series 2002A, 5.500%, 9/01/15 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 Aaa 1,128,957
General Obligation Bonds,
Series 2006A, 5.000%, 4/01/22 - FGIC Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 477,481
Revenue Bonds, Conneaut School
District, Series 2003, 5.250%, 11/01/21 - FGIC Insured
21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA 23,905,560
Revenue Bonds, Philadelphia
School District, Series 2003, 5.500%, 6/01/28 - FSA Insured (UB)
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,533,079
General Obligation Bonds,
Series 2001A, 5.000%, 4/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
76,965 Total Tax Obligation/General 77,990,847
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.0% (5.4% OF TOTAL INVESTMENTS)
3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AAA 3,595,305
Transportation Revenue Bonds, Series
2001, 5.000%, 3/01/29 - FGIC Insured
8,725 Pennsylvania Intergovernmental Cooperative Authority, Special 6/09 at 100.00 AAA 8,784,766
Tax Revenue Refunding Bonds,
Philadelphia Funding Program, Series 1999, 4.750%, 6/15/23 -
FGIC Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,899,638
Bonds, Series 2003B, 5.250%,
11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium Authority, 8/09 at 101.00 AAA 4,091,240
Pennsylvania, Sales Tax Revenue
Bonds, Regional Asset District, Series 1999, 5.000%, 2/01/29 -
AMBAC Insured
53
| Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
NQP | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (CONTINUED)
$ 1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Tax 5/09 at 100.00 A1 $ 1,120,684
Increment Financing District
Bonds, Center Triangle Project, Series 1999A, 6.100%, 5/01/19
3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 963,321
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,155 Total Tax Obligation/Limited 21,454,954
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8% (7.8% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 665,450
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,124,540
Revenue Bonds, Lehigh Valley
Airport System, Series 2000A, 6.000%, 5/15/30 - MBIA Insured
(Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 A 5,637,978
Bonds, Amtrak 30th Street
Station Parking Garage, Series 2002, 5.800%, 6/01/23 - ACA
Insured (Alternative Minimum Tax)
2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 2,261,358
Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds,
Series 2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 4,036,785
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,083,327
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,085,800
Series 2001B, 5.250%, 6/15/31 - FGIC
Insured (Alternative Minimum Tax)
3,750 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AAA 3,583,200
Series 2005A, 4.750%, 6/15/35 - MBIA
Insured (Alternative Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,349,418
Revenue Bonds, Series 1999,
5.250%, 9/01/29 - FSA Insured
800 Scranton Parking Authority, Pennsylvania , Guaranteed Revenue 6/17 at 100.00 AA 806,560
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
29,815 Total Transportation 30,634,416
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.0% (19.5% OF TOTAL INVESTMENTS) (5)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,753,593
Series 2000C-52, 5.250%, 11/01/23
(Pre-refunded 5/01/11) - FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 1,395,702
Bonds, Series 2000C-53, 5.250%,
11/01/20 (Pre-refunded 5/01/11) - FGIC Insured
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001:
5,325 5.100%, 5/01/20 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 AAA 5,641,465
1,465 5.100%, 5/01/21 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 AAA 1,552,065
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,529,850
Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%,
5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AAA 5,321,650
Series 2001A, 5.200%, 12/01/30
(Pre-refunded 12/01/11) - MBIA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,733,012
Pennsylvania, General Obligation Bonds,
Series 2002, 5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC
Insured
2,500 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (5) 2,721,025
Revenue Bonds, St. Luke's
Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33
(Pre-refunded 8/15/13)
680 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (5) 724,982
Bonds, Thomas Jefferson
University, Series 2002, 5.000%, 1/01/20 (Pre-refunded 1/01/13)
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,871,300
Bonds, Series 2001, 5.000%, 7/15/41
(Pre-refunded 7/15/11) - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,718,602
Pennsylvania, Lease Revenue Bonds, Series
2001B, 5.250%, 10/01/30 (Pre-refunded 10/01/11) - FSA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (CONTINUED)
$ 725 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA $ 863,497
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,727,625
Bonds, Series 2002B, 5.625%,
8/01/18 (Pre-refunded 8/01/12) - FGIC Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds,
Series 2001A:
5,525 5.375%, 11/01/20 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 AAA 5,989,818
3,185 5.000%, 11/01/31 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 Aaa 3,398,650
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,475,211
General Obligation Bonds, Series
2001, 5.250%, 9/15/30 (Pre-refunded 9/15/11) - FGIC Insured
960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (5) 1,057,891
Revenue Bonds, Catholic Health East,
Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14)
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,135,760
General Obligation Bonds, Series
2000, 5.800%, 6/15/30 (Pre-refunded 12/15/10) - MBIA Insured
415 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 (5) 448,412
Pennsylvania, General Obligation Bonds,
Series 2003, 5.250%, 2/15/19 (Pre-refunded 2/15/13)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,586,950
Pennsylvania, Water and Sewer Revenue
Bonds, Series 1991, 7.100%, 12/01/21 (Pre-refunded 11/15/15) -
FGIC Insured
4,175 West View Borough Municipal Authority, Allegheny County, No Opt. Call Aaa 5,083,397
Pennsylvania, Special Obligation
Bonds, Series 1985A, 9.500%, 11/15/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
70,685 Total U.S. Guaranteed 76,730,457
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.4% (4.5% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,294,413
Pennsylvania, Pollution Control Revenue
Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%,
12/01/13 - AMBAC Insured
1,680 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,744,226
Resource Recovery Revenue
Refunding Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
2,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,472,525
Pollution Control Revenue Bonds,
Pennsylvania Power and Light Company, Series 2005, 4.750%,
2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 723,051
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 2,152,259
Ordinance, Seventeenth Series
2003, 5.375%, 7/01/19 - FSA Insured
5,490 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 5,638,889
Series 1998, 5.000%, 10/01/37 -
AMBAC Insured (UB)
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,785,987
Pollution Control Revenue
Refunding Bonds, PSEG Power Project, Series 2001A, 5.500%,
9/01/20
------------------------------------------------------------------------------------------------------------------------------------
17,250 Total Utilities 17,811,350
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.2% (4.4% OF TOTAL INVESTMENTS)
2,100 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,221,442
Revenue Bonds, Series 2005A,
5.000%, 12/01/21 - MBIA Insured
2,205 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,337,961
Pennsylvania, Guaranteed Water Revenue
Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured
5,000 Delaware County Industrial Development Authority, Pennsylvania, 10/12 at 100.00 AAA 5,124,249
Water Facilities Revenue
Bonds, Philadelphia Water Company, Series 2001, 5.350%,
10/01/31 - AMBAC Insured (Alternative Minimum Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,104,599
Revenue Refunding Bonds, Series
2004, 5.000%, 7/15/22 - FSA Insured
1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,321,537
Revenue Bonds, Series 2004, 5.000%,
4/01/20 - MBIA Insured
55
| Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
NQP | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (CONTINUED)
$ 1,815 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 11/12 at 100.00 AAA $ 1,862,824
Series 2001A, 5.000%, 11/01/31 - FGIC Insured
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 7/15 at 100.00 AAA 2,243,717
Series 2005A, 5.000%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
16,520 Total Water and Sewer 17,216,329
------------------------------------------------------------------------------------------------------------------------------------
$ 375,210 Total Long-Term Investments (cost $372,080,658) - 160.3% 384,081,275
================-------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.2% (2.5% OF TOTAL INVESTMENTS)
3,550 Cumberland County Municipal Authority, Pennsylvania, Auction AA 3,550,000
Rate Revenue Bonds, Variable Rate
Demand Obligations, Diakon Lutheran Social Ministries Project,
Series 2007B, 6.000%, 1/01/25 - RAAI Insured (6)
1,000 Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 1,000,000
Bonds, Variable Rate Demand
Obligations, Series 1985, 3.200%, 12/01/15 - MBIA Insured (6)
1,650 South Fork Municipal Authority, Pennsylvania, Hospital Revenue AA 1,650,000
Bonds, Variable Rate Demand Obligations,
Conemaugh Valley Memorial Hospital, Series 2005C, 5.000%,
7/01/29 - RAAI Insured (6)
3,725 Washington County Industrial Development Authority, A-1 3,724,739
Pennsylvania, Health Care Facilities Revenue
Bonds, Variable Rate Demand Obligations, Presbyterian Senior
Care Southminster Project,
Series 2000, 5.750%, 1/01/30 - RAAI Insured (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 9,925 Total Short-Term Investments (cost $9,924,739) 9,924,739
================--------------------------------------------------------------------------------------------------------------------
Total Investments (cost $382,005,397) - 164.5% 394,006,014
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.6)% (25,330,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,880,075
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 239,556,089
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (7) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $ 8,750,000 Receive 3-Month USD-LIBOR 5.593% Semi-Annually 10/01/08 10/01/37 $ (255,748)
JPMorgan 31,000,000 Receive SIFM 3.698 Quarterly 2/04/08 2/02/13 (416,850)
------------------------------------------------------------------------------------------------------------------------------------
$ (672,598)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
SIFM - The daily arithmetic average of the weekly SIFM (Securities Industry and
Financial Markets) Municipal Swap Index.
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Portion of investment, with an aggregate market value of $1,855,253, has
been pledged to collateralize the net payment obligations under forward
swap contracts.
(5) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(6) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(7) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
56
| Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.1% (14.0% OF TOTAL
INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,047,978
Pennsylvania, College Revenue Bonds,
Thiel College, Series 1999A, 5.375%, 11/15/29 - ACA Insured
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 221,504
Pennsylvania, College Revenue Refunding
Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA 1,315,405
Pennsylvania, Revenue Bonds, Duquesne
University, Series 2004A, 5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,077,916
Pennsylvania, Revenue Bonds, Robert
Morris University, Series 2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BB+ 2,982,120
Pennsylvania, College Revenue Bonds,
Immaculata College, Series 1998, 5.625%, 10/15/27
1,070 Cumberland County, Pennsylvania, Municipal Authority College 5/17 at 100.00 AAA 1,038,531
Revenue Bonds, Dickinson College,
Series 2007G-G1, 4.500%, 5/01/37 - MBIA Insured
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,649,338
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 810,348
Delaware County Authority, Pennsylvania, Revenue Refunding
Bonds, Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AAA 1,824,708
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,444,784
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,070,210
Erie Higher Education Building Authority, Pennsylvania,
College Revenue Bonds, Gannon
University, Series 2007-GG3:
725 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 AA 713,929
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 AA 245,238
3,060 Indiana County Industrial Development Authority, Pennsylvania, 11/14 at 100.00 AAA 3,174,260
Revenue Bonds, Student
Cooperative Association Inc./Indiana University of
Pennsylvania - Student Union Project,
Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,441,692
Pennsylvania, Revenue Bonds, Arcadia
University, Series 2006, 4.500%, 4/01/30 - RAAI Insured
325 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 AA 324,311
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 4,282,877
Revenue Bonds, State System of Higher Education, Series
2002W, 5.000%, 6/15/19 - AMBAC Insured
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,247,799
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,017,080
Bonds, LaSalle University, Series 1998, 5.250%,
5/01/23 - MBIA Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 3,174,030
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
1,845 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,872,970
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA 2,061,100
Bonds, University of Pennsylvania, Series 2005C,
5.000%, 7/15/38
57
| Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
NPY | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (CONTINUED)
$ 1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA $ 1,353,623
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 1,002,940
University of the Sciences in Philadelphia Revenue Bonds,
Series 2005, 4.750%, 11/01/33 - XLCA Insured
10,600 Pennsylvania State University, General Revenue Bonds, Series 8/16 at 100.00 AA 10,291,116
2007A, 4.500%, 8/15/36 (UB)
470 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 467,998
Pennsylvania, Revenue Bonds, Franklin Towne Charter High
School, Series 2006A, 5.250%, 1/01/27
1,545 State Public School Building Authority, Pennsylvania, College 5/15 at 100.00 Aaa 1,639,322
Revenue Bonds, Montgomery County Community College,
Series 2005, 5.000%, 5/01/18 - AMBAC Insured
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 800,685
Pennsylvania, Revenue Bonds, Bucknell University, Series
2002A, 5.250%, 4/01/19
-----------------------------------------------------------------------------------------------------------------------------------
48,915 Total Education and Civic Organizations 49,593,812
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.1% (6.4% OF TOTAL INVESTMENTS)
1,455 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,377,158
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 1/12 at 100.00 AAA 1,298,363
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
1,175 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 AAA 1,197,701
Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 -
CIFG Insured
Lancaster County Hospital Authority, Pennsylvania, Hospital
Revenue Bonds, The Lancaster General Hospital Project,
Series 2007A:
1,885 5.000%, 3/15/26 3/17 at 100.00 AA- 1,923,793
750 5.000%, 3/15/31 3/17 at 100.00 AA- 759,758
800 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 744,128
Revenue Bonds, The Lancaster
General Hospital Project, Series 2007B, 4.500%, 3/15/36
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 5,193,700
Revenue Bonds, Good Samaritan Hospital Project, Series 2002,
5.900%, 11/15/28
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,298,113
Bonds, Good Shepherd Group,Series 2004A, 5.500%, 11/01/24
650 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 BBB+ 625,229
Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%,
1/01/37
500 Philadelphia Hospitals and Higher Education Facilities 7/17 at 100.00 AA 475,210
Authority, Pennsylvania, Hospital Revenue Bonds, Children's
Hospital of Philadelphia, Series 2007, 4.500%, 7/01/33
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BB+ 1,980,760
2,000 5.625%, 7/01/24 7/08 at 100.00 BB+ 1,925,560
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 1,803,292
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,268,184
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 476,862
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 328,673
-----------------------------------------------------------------------------------------------------------------------------------
22,400 Total Health Care 22,676,484
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.4% (3.4% OF TOTAL INVESTMENTS)
3,645 Bucks County Redevelopment Authority, Pennsylvania, Section 8 2/08 at 100.00 Baa2 3,649,228
Assisted Second Lien Multifamily Mortgage Revenue Bonds,
Country Commons Apartments, Series 1993A, 6.200%, 8/01/14
(Alternative Minimum Tax)
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (CONTINUED)
$ 2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA $ 2,043,460
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32 (Mandatory
put 4/01/22) (Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A:
2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 AAA 2,144,076
3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 AAA 3,485,714
740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 750,071
Pennsylvania, Multifamily Housing Revenue
Bonds, Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
-----------------------------------------------------------------------------------------------------------------------------------
11,820 Total Housing/Multifamily 12,072,549
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.1% (3.9% OF TOTAL INVESTMENTS)
915 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 937,042
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,862,880
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
280 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 283,550
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,410 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,403,937
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
3,295 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,300,173
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,283,971
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27
(Alternative Minimum Tax)
1,960 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,896,594
Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31
(Alternative Minimum Tax)
765 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/08 at 101.00 AAA 776,705
Mortgage Revenue Bonds, Series 1997A, 6.200%, 10/01/21
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
13,980 Total Housing/Single Family 13,744,852
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (2.0% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/08 at 100.00 BB- 2,002,480
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 2,065,900
Facilities Revenue Bonds, Amtrak Project, Series 2001A,
6.250%, 11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 2,974,785
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 7,043,165
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.2% (4.5% OF TOTAL INVESTMENTS)
1,100 Chester County Health and Education Facilities Authority, 12/08 at 100.00 BBB- 1,101,034
Pennsylvania, Mortgage Revenue Refunding Bonds, Tel Hai
Obligated Group, Series 1998, 5.500%, 6/01/25
4,905 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 4,612,172
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,007,990
Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%,
12/01/22 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,571,197
620 5.000%, 11/01/36 11/16 at 100.00 A+ 620,223
59
| Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
NPY | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (CONTINUED)
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
$ 1,000 6.150%, 12/01/20 - RAAI Insured 2/08 at 100.00 AA $ 1,046,520
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,054,300
1,230 Pennsylvania Economic Development Financing Authority, Revenue 6/08 at 100.00 BB+ 1,130,567
Bonds, Northwestern Human Services Inc., Series 1998A,
5.250%, 6/01/28
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run,
Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,357,223
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,652,838
-----------------------------------------------------------------------------------------------------------------------------------
16,420 Total Long-Term Care 16,154,064
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.9% (1.8% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 1,189,203
Pennsylvania, Solid Waste Disposal Revenue
Bonds, International Paper Company, Series 2005B, 5.200%,
12/01/19 (Alternative Minimum Tax)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 517,700
Environmental Improvement Revenue Refunding Bonds, Series
2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 4,578,750
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 6,285,653
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.4% (14.2% OF TOTAL INVESTMENTS)
8,800 Bensalem Township School District, Bucks County, Pennsylvania, 6/17 at 100.00 Aaa 8,723,704
General Obligation Bonds, Series 2007, 4.500%, 6/15/28 -
FGIC Insured (UB)
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,213,110
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 868,578
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,330,120
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,286,945
Lower Merion School District, Montgomery County, Pennsylvania,
General Obligation Bonds, Series 2007:
2,260 5.000%, 9/01/23 9/17 at 100.00 Aaa 2,403,352
55 5.000%, 9/01/24 9/17 at 100.00 Aaa 58,398
4,565 Montour School District, Allegheny County, Pennsylvania, 4/17 at 100.00 AAA 4,736,690
General Obligation Bonds, Series 2007, 5.000%, 4/01/37 -
FSA Insured
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,042,040
Pennsylvania, General Obligation Bonds, Series 2000, 5.600%,
3/01/25 - MBIA Insured
2,115 Owen J. Roberts School District, Chester County, Pennsylvania, 5/16 at 100.00 Aaa 2,223,690
General Obligation Bonds, Series 2006, 5.000%, 5/15/24 -
FSA Insured
4,835 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,180,316
Residuals 1986, 6.938%, 3/01/27 (IF)
3,200 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 3,437,408
5.000%, 10/01/18
2,000 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 2,138,780
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 1,602,225
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 2,974,698
2006B, 5.250%, 9/01/16 - FSA Insured
6,710 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 2,128,613
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 -
FGIC Insured
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (CONTINUED)
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
$ 360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA $ 386,276
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 523,462
1,500 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 1,457,415
Revenue Bonds, York City School District, Series 2003,
4.000%, 5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,606,331
General Obligation Bonds, Series 2001A, 5.000%, 4/01/19 -
FSA Insured
1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 1,507,226
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
2,400 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AAA 2,485,584
2006, 5.000%, 6/01/33 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
56,795 Total Tax Obligation/General 50,314,961
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.8% (4.9% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 1,535,880
Convention Center Revenue Bonds, Series 2005, 5.000%,
1/15/36 - FGIC Insured
5,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 5,385,809
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 6,901,680
Revenue Bonds, Series 2007N, 5.500%, 7/01/29 - AMBAC Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 883,555
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,727,751
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
17,800 Total Tax Obligation/Limited 17,434,675
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.5% (12.3% OF TOTAL INVESTMENTS)
650 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 686,576
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 A 4,746,418
Bonds, Amtrak 30th Street Station Parking Garage, Series
2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,674,707
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,820,244
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
3,250 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AAA 3,105,440
Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative
Minimum Tax)
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,175,000
Pennsylvania, Airport Revenue Bonds, Philadelphia
Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC
Insured (Alternative Minimum Tax)
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/07 at 100.00 Aaa 6,532,047
Authority, Pennsylvania, Parking Revenue Bonds, Series
2001A, 5.350%, 12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,093,980
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
730 Scranton Parking Authority, Pennsylvania , Guaranteed Revenue 6/17 at 100.00 AA 735,986
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,416,277
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,832,392
Airport System Revenue Bonds, Series 2003B, 5.000%,
1/01/33 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
43,065 Total Transportation 43,819,067
-----------------------------------------------------------------------------------------------------------------------------------
61
| Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
NPY | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.5% (14.2% OF TOTAL INVESTMENTS) (4)
$ 1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA $ 1,809,209
Revenue Bonds, Series 2000, 5.500%, 12/01/30
(Pre-refunded 12/01/10) - MBIA Insured
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,328,612
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Pre-refunded 1/01/08) - MBIA Insured
(Alternative Minimum Tax)
Butler County, Pennsylvania, General Obligation Bonds, Series 2003:
1,000 5.250%, 7/15/21 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,086,240
1,200 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,303,488
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,764,791
Pennsylvania, Sewerage Revenue
Bonds, Series 2004, 5.250%, 5/01/23 (Pre-refunded 5/01/14) -
MBIA Insured
2,110 Fayette County, Pennsylvania, General Obligation Bonds, Series 11/10 at 100.00 AAA 2,242,234
2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) - AMBAC Insured
2,425 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 (4) 2,639,394
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13)
2,600 Norristown Area School District, Montgomery County, 3/13 at 100.00 Aaa 2,779,634
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured
1,060 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,203,641
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
2,100 Pennsylvania Higher Educational Facilities Authority, Revenue 6/10 at 100.00 AA (4) 2,232,531
Bonds, Philadelphia University, Series 2000, 6.000%,
6/01/29 (Pre-refunded 6/01/10) - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,590,945
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
3,905 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (4) 4,163,316
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/32 (Pre-refunded 1/01/13)
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/09 at 101.00 AAA 5,949,583
Ordinance, Second Series 1999, 5.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Presbyterian Medical Center
of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 (ETM) No Opt. Call AAA 1,058,550
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,484,559
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,118,500
Revenue Bonds, Catholic Health East, Series 2004B, 5.375%,
11/15/34 (Pre-refunded 11/15/14)
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
1,930 5.000%, 2/01/20 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 Aaa 2,061,433
1,955 5.000%, 2/01/21 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 Aaa 2,088,136
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,341,762
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,724,850
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,265 West View Borough Municipal Authority, Allegheny County, No Opt. Call Aaa 1,540,239
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
-----------------------------------------------------------------------------------------------------------------------------------
46,715 Total U.S. Guaranteed 50,511,647
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.7% (8.6% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,164,971
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,208,320
Exempt Facilities Revenue Bonds, Shippingport Project,
Series 1998A, 5.375%, 6/01/28 - AMBAC Insured (Alternative
Minimum Tax)
2,280 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,367,164
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
$ 7,590 Indiana County Industrial Development Authority, Pennsylvania, 11/07 at 102.00 AAA $ 7,752,806
Pollution Control Revenue Bonds, Metropolitan Edison Company,
Series 1997A, 5.950%, 5/01/27 - AMBAC Insured (Alternative
Minimum Tax)
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 2,059,800
Pollution Control Revenue Refunding Bonds, PSEG Power LLC,
Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,187,625
Pollution Control Revenue Bonds, Pennsylvania Power and
Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 723,051
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 1,076,130
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 -
FSA Insured
5,050 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 5,186,956
Series 1998, Series 42P, 5.000%, 10/01/37 - AMBAC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
29,895 Total Utilities 30,726,823
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.9% (7.5% OF TOTAL INVESTMENTS)
305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 321,217
Revenue Bonds, Series 2000, 5.500%, 12/01/30 - MBIA Insured
Allegheny County Sanitary Authority, Pennsylvania, Sewerage
Revenue Bonds, Series 2005A:
1,900 5.000%, 12/01/21 - MBIA Insured 12/15 at 100.00 AAA 2,009,877
2,545 5.000%, 12/01/30 - MBIA Insured 12/15 at 100.00 AAA 2,646,953
2,500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,650,750
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,128,280
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,104,600
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,386,220
Revenue Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,518,189
Water Facility Revenue Bonds, Consumers Water Company,
Shenango Valley Division Project, Series 2000, 6.000%,
7/01/30 - MBIA Insured (Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania, Sewer
Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,190,582
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,643,371
2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,087,179
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,061,839
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
25,600 Total Water and Sewer 26,749,057
-----------------------------------------------------------------------------------------------------------------------------------
$ 346,345 Total Long-Term Investments (cost $337,092,332) - 154.7% 347,126,809
============-----------------------------------------------------------------------------------------------------------------------
63
| Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
NPY | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.7% (2.3% OF TOTAL INVESTMENTS)
$ 3,250 Cumberland County Municipal Authority, Pennsylvania, Auction AA $ 3,250,000
Rate Revenue Bonds, Variable RateDemand Obligations, Diakon
Lutheran Social Ministries Project, Series 2007B, 5.750%,
1/01/25 - RAAI Insured (5)
1,650 South Fork Municipal Authority, Pennsylvania, Hospital Revenue AA 1,650,000
Bonds, Variable Rate Demand Obligations, Conemaugh Valley
Memorial Hospital, Series 2005C, 5.000%, 7/01/29 -
RAAI Insured (5)
3,425 Washington County Industrial Development Authority, A-1 3,424,760
Pennsylvania, Health Care Facilities Revenue Bonds,
Variable Rate Demand Obligations, Presbyterian Senior Care
Southminster Project, Series 2000, 5.750%, 1/01/30 -
RAAI Insured (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 8,325 Total Short-Term Investments (cost $8,324,760) 8,324,760
============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $345,417,092) - 158.4% 355,451,569
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.1)% (16,020,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 3,131,059
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.6)% (118,100,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 224,462,628
===================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (6) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs $ 5,750,000 Receive 3-Month USD-LIBOR 5.593% Semi-Annually 10/01/08 10/01/37 $(168,063)
Morgan Stanley 4,500,000 Receive 3-Month USD-LIBOR 5.073 Semi-Annually 12/03/07 6/01/32 165,457
------------------------------------------------------------------------------------------------------------------------------------
$ (2,606)
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
64
| Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,089,740
Solid Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum
Tax)
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.6% (19.5% OF TOTAL
INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 110,752
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 222,202
Pennsylvania, Revenue Bonds, Robert
Morris University, Series 2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, 9/11 at 100.00 Aaa 2,328,750
Pennsylvania, Revenue Bonds, George School
Project, Series 2001, 5.125%, 9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 680,925
Pennsylvania, Revenue Bonds,
Immaculata University, Series 2005, 5.500%, 10/15/25
440 Cumberland County, Pennsylvania, Municipal Authority 5/17 at 100.00 AAA 427,060
College Revenue Bonds, Dickinson College,
Series 2007G-G1, 4.500%, 5/01/37 - MBIA Insured
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,030,290
Refunding Bonds, Neumann College,
Series 2001, 6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 310,898
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 152,598
160 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 AA 157,557
College Revenue Bonds, Gannon
University, Series 2007-GG3, 5.000%, 5/01/32 - RAAI Insured
300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 274,608
Pennsylvania, Revenue Bonds, Arcadia
University, Series 2006, 4.500%, 4/01/30 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 1,042,150
Pennsylvania, Revenue Bonds, Hill School,
Series 2005, 5.000%, 8/15/27 - MBIA Insured
75 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 AA 74,841
Series 2007G, 5.125%, 5/01/33 -
RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,048,440
General Revenue Bonds, State System of
Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC
Insured
220 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 213,631
Revenue Bonds, Allegheny College, Series
2006, 4.750%, 5/01/31
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 AA 1,515,015
Revenue Bonds, Moravian College, Series
2001, 5.375%, 7/01/31 - RAAI Insured
700 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AAA 740,607
Revenue Bonds, Temple University, First
Series of 2006, 5.000%, 4/01/21 - MBIA Insured
350 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 373,174
Revenue Bonds, Thomas Jefferson
University, Series 2002, 5.500%, 1/01/16
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,279,180
Bonds, Series 2002, 5.250%, 8/15/14
105 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 104,553
Pennsylvania, Revenue Bonds, Franklin Towne
Charter High School, Series 2006A, 5.250%, 1/01/27
470 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 457,898
Pennsylvania, Revenue Bonds, Leadership
Learning Partners, Series 2005A, 5.375%, 7/01/36
65
| Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
NXM | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (CONTINUED)
$ 230 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ $ 235,552
Pennsylvania, Revenue Bonds, Richard Allen
Preparatory Charter School, Series 2006, 6.250%, 5/01/33
-----------------------------------------------------------------------------------------------------------------------------------
14,275 Total Education and Civic Organizations 14,780,681
-----------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.7% (12.4% OF TOTAL INVESTMENTS)
260 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 246,090
Pennsylvania, Revenue Bonds, Ohio Valley
General Hospital, Series 2005A, 5.125%, 4/01/35
700 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 703,857
Bonds, Sacred Heart Hospital, Series
2005, 6.000%, 11/15/16
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,539,025
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
255 Erie County Hospital Authority, Pennsylvania, Revenue 11/17 at 100.00 AAA 259,927
Bonds, Hamot Health Foundation, Series
2007, 5.000%, 11/01/37 - CIFG Insured
230 Fulton County, Pennsylvania, Industrial Development 7/16 at 100.00 N/R 228,330
Authority Hospital Revenue Bonds, Fulton
County Medical Center Project, Series 2006, 5.900%, 7/01/40
105 Jeannette Health Services Authority, Pennsylvania, Hospital 11/07 at 101.00 BB- 103,590
Revenue Bonds, Jeannette District
Memorial Hospital, Series 1996A, 6.000%, 11/01/18
200 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 186,032
Revenue Bonds, The Lancaster
General Hospital Project, Series 2007B, 4.500%, 3/15/36
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 259,623
Revenue Bonds, Good Shepherd Group,
Series 2004A, 5.500%, 11/01/24
140 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 BBB+ 134,665
Revenue Bonds, Pocono Medical Center,
Series 2007, 5.125%, 1/01/37
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 2,296,286
Revenue Bonds, UPMC Health System,
Series 2001A, 6.000%, 1/15/31
500 Philadelphia Hospitals and Higher Education Facilities 7/17 at 100.00 AA 475,210
Authority, Pennsylvania, Hospital
Revenue Bonds, Children's Hospital of Philadelphia, Series
2007, 4.500%, 7/01/33
70 Philadelphia Hospitals and Higher Education Facilities 11/07 at 100.00 BBB 70,139
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
25 Pottsville Hospital Authority, Pennsylvania, Hospital 7/08 at 100.00 BB+ 24,070
Revenue Bonds, Pottsville Hospital and
Warne Clinic, Series 1998, 5.625%, 7/01/24
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,047,630
Bonds, Monongahela Valley Hospital
Project, Series 2002, 5.500%, 6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 780,375
Pennsylvania, Hospital Revenue Bonds,
Holy Spirit Hospital of the Sisters of Christian Charity
Project, Series 2001, 6.250%, 1/01/32
-----------------------------------------------------------------------------------------------------------------------------------
9,135 Total Health Care 9,354,849
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AAA 717,647
Revenue Bonds, Slippery Rock University
Foundation Inc., Student Housing Project, Series 2005A,
5.000%, 7/01/37 - XLCA Insured
100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 101,361
Pennsylvania, Multifamily Housing Revenue
Bonds, Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
-----------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 819,008
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.3% (5.5% OF TOTAL INVESTMENTS)
1,535 Allegheny County Residential Finance Authority, 11/08 at 102.00 Aaa 1,548,723
Pennsylvania, GNMA Mortgage-Backed Securities
Program Single Family Mortgage Revenue Bonds, Series
1998DD-2, 5.400%, 11/01/29 (Alternative
Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 965,720
Revenue Bonds, Series 1995A,
4.900%, 10/01/37 (Alternative Minimum Tax)
66
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (CONTINUED)
$ 495 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ $ 492,872
Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
700 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 701,099
Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
430 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 416,090
Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
4,160 Total Housing/Single Family 4,124,504
-----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.8% (4.5% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 2,065,900
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 1,352,175
Development Revenue Bonds, Series
2002, 5.500%, 7/01/17 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 3,418,075
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 13.4% (8.8% OF TOTAL INVESTMENTS)
265 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 249,180
Bonds, Diakon Lutheran Social
Ministries, Series 2007, 5.000%, 1/01/36
285 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A+ 285,103
Center Revenue Bonds, Masonic Homes
Project, Series 2006, 5.000%, 11/01/36
2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 2,168,565
Center Revenue Bonds, Willow Valley
Retirement Communities Project, Series 2001, 5.875%, 6/01/31
785 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 740,812
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human
Services Inc., Series 1998A:
240 5.250%, 6/01/14 6/08 at 100.00 BB+ 235,610
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 48,372
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 2,968,926
Pennsylvania, Revenue Bonds, Philadelphia
Corporation for the Aging Project, Series 2001B, 5.250%,
7/01/31 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,600 Total Long-Term Care 6,696,568
-----------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.2% (2.8% OF TOTAL INVESTMENTS)
350 Allegheny County Industrial Development Authority, No Opt. Call Baa3 362,509
Pennsylvania, Revenue Bonds, United States
Steel Corporation, Series 2005, 5.500%, 11/01/16
210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 209,859
Pennsylvania, Solid Waste Disposal Revenue
Bonds, International Paper Company, Series 2005B, 5.200%,
12/01/19 (Alternative Minimum Tax)
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 783,608
Environmental Improvement Revenue
Bonds, USX Corporation Project, Series 1995, 5.400%, 11/01/17
(Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 763,125
Facilities Revenue Bonds,
National Gypsum Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 2,119,101
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.5% (10.9% OF TOTAL INVESTMENTS)
1,860 Bensalem Township School District, Bucks County, 6/17 at 100.00 Aaa 1,843,874
Pennsylvania, General Obligation Bonds,
Series 2007, 4.500%, 6/15/28 - FGIC Insured (UB)
995 Montour School District, Allegheny County, Pennsylvania, 4/17 at 100.00 AAA 1,032,422
General Obligation Bonds, Series
2007, 5.000%, 4/01/37 - FSA Insured
67
| Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
NXM | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (CONTINUED)
$ 300 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA $ 322,257
5.000%, 10/01/18
375 Philadelphia School District, Pennsylvania, General No Opt. Call AAA 400,556
Obligation Bonds, Series 2007A, 5.000%,
6/01/34 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,321,720
General Obligation Refunding
Bonds, Series 2002A, 5.500%, 9/01/14 - FSA Insured
2,220 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 704,251
Obligation Bonds, Series 2003B,
0.000%, 1/15/32 - FGIC Insured
600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AAA 621,396
2006, 5.000%, 6/01/33 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,350 Total Tax Obligation/General 8,246,476
-----------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.1% (8.6% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 1,012,580
Revenue Bonds, Pittsburg Mills
Project, Series 2004, 5.600%, 7/01/23
450 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 460,764
Convention Center Revenue Bonds, Series
2005, 5.000%, 1/15/36 - FGIC Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,107,470
Bonds, Series 2005A, 5.250%,
7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,073,940
Bonds, Series 2003B, 5.250%,
11/15/17 - FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,605,810
Bonds, Philadelphia Neighborhood
Transformation Initiative, Series 2002A, 5.500%, 4/15/19 -
FGIC Insured
750 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 838,133
Revenue Bonds, Series 2007N, 5.250%,
7/01/33 - MBIA Insured
630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 193,278
Revenue Bonds, Series 2005A,
0.000%, 7/01/32 - FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 246,293
Tanger Outlet Victory Center Tax
Increment Bonds, Series 2006A, 5.450%, 7/01/35
-----------------------------------------------------------------------------------------------------------------------------------
6,580 Total Tax Obligation/Limited 6,538,268
-----------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.6% (7.6% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 137,315
Pennsylvania, Revenue Bonds,
Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,031,830
Revenue Bonds, Amtrak 30th Street
Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA
Insured (Alternative Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 441,979
Series 2006A, 5.000%, 12/01/24 -
AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,780,625
Pennsylvania, Airport Revenue Bonds, Philadelphia
Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC
Insured (Alternative Minimum Tax)
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/07 at 100.00 Aaa 2,212,431
Authority, Pennsylvania, Parking Revenue
Bonds, Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
160 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue 6/17 at 100.00 AA 161,312
Bonds, Series 2007, 5.250%,
6/01/39 - RAAI Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,670 Total Transportation 5,765,492
-----------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.9% (9.8% OF TOTAL INVESTMENTS) (4)
$ 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) $ 1,154,670
Retirement Community Revenue Bonds,
Wesley Affiliated Services Inc., Series 2002A, 7.125%,
1/01/25 (Pre-refunded 1/01/13)
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 (4) 653,046
Hospital Revenue Bonds, St. Luke's
Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33
(Pre-refunded 8/15/13)
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,191,102
General Obligation Bonds, Series
2001A, 5.500%, 2/15/17 (Pre-refunded 2/15/12) - FGIC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,087,930
1,000 5.250%, 8/01/19 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,087,930
170 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 202,475
Series 1990B, 7.000%, 5/15/20 -
MBIA Insured (ETM)
1,700 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 AAA 1,854,785
Obligation Bonds, Series 2002B, 5.625%,
8/01/18 (Pre-refunded 8/01/12) - FGIC Insured
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 187,334
Revenue Bonds, Catholic Health East,
Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14)
-----------------------------------------------------------------------------------------------------------------------------------
6,745 Total U.S. Guaranteed 7,419,272
-----------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2% (2.8% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 517,764
Pennsylvania, Pollution Control Revenue
Refunding Bonds, Duquesne Light Company, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 B2 305,542
Facilities Revenue Bonds,
Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36
(Alternative Minimum Tax)
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 144,609
Ordinance, Fifth Series 2004A-1,
5.000%, 9/01/26 - FSA Insured
1,105 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 1,134,968
Series 1998, Series 42P,
5.000%, 10/01/37 - AMBAC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
2,030 Total Utilities 2,102,883
-----------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS)
500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 530,149
Pennsylvania, Guaranteed Water Revenue
Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 631,378
Revenue Refunding Bonds, Series
2004, 5.000%, 7/15/22 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,161,527
-----------------------------------------------------------------------------------------------------------------------------------
$ 72,755 Total Long-Term Investments (cost $71,138,375) - 147.5% 73,636,444
============-----------------------------------------------------------------------------------------------------------------------
69
| Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
NXM | Portfolio of INVESTMENTS
October 31, 2007 (Unaudited)
PRINCIPAL
AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 4.3% (2.8% OF TOTAL INVESTMENTS)
$ 700 Cumberland County Municipal Authority, Pennsylvania, Auction Rate AA $ 700,000
Revenue Bonds, Variable Rate
Demand Obligations, Diakon Lutheran Social Ministries Project, Series
2007B, 6.000%, 1/01/25 - RAAI Insured (5)
700 Puerto Rico Government Development Bank, Adjustable Refunding Bonds, VMIG-1 700,000
Variable Rate Demand Obligations, Series 1985, 3.200%,
12/01/15 - MBIA Insured (5)
750 Washington County Industrial Development Authority, Pennsylvania, A-1 749,948
Health Care Facilities Revenue Bonds, Variable Rate Demand
Obligations, Presbyterian Senior Care Southminster Project,
Series 2000, 5.750%, 1/01/30 - RAAI Insured (5)
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,150 Total Short-Term Investments (cost $2,149,948) 2,149,948
============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $73,288,323) - 151.8% 75,786,392
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.8)% (1,915,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,042,041
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.1)% (25,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 49,913,433
===================================================================================================================
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
70
| Nuveen Pennsylvanina Dividend Advantage Muncipal Fund 2
NVY | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (9.9% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 1,107,520
Pennsylvania, College Revenue Refunding Bonds, Robert Morris
College, Series 1998A, 6.000%, 5/01/28
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 778,200
Pennsylvania, Revenue Bonds, Immaculata University, Series
2005, 5.500%, 10/15/25
500 Cumberland County, Pennsylvania, Municipal Authority College 5/17 at 100.00 AAA 485,295
Revenue Bonds, Dickinson College, Series 2007G-G1, 4.500%,
5/01/37 - MBIA Insured
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 334,844
Refunding Bonds, Neumann College, Series 2001, 6.000%,
10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 358,323
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 173,646
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,547,633
Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 -
FGIC Insured
180 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 AA 177,251
College Revenue Bonds, Gannon University, Series 2007-GG3,
5.000%, 5/01/32 - RAAI Insured
450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 411,912
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
80 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 AA 79,830
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 276,749
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
800 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 846,408
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
115 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 114,510
Pennsylvania, Revenue Bonds, Franklin Towne Charter High
School, Series 2006A, 5.250%, 1/01/27
530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 516,353
Pennsylvania, Revenue Bonds, Leadership Learning Partners,
Series 2005A, 5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 276,518
Pennsylvania, Revenue Bonds, Richard Allen Preparatory
Charter School, Series 2006, 6.250%, 5/01/33
1,000 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,067,580
Authority, Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
8,275 Total Education and Civic Organizations 8,552,572
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.1% (9.1% OF TOTAL INVESTMENTS)
295 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 279,218
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
800 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 804,408
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,031,220
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
290 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 AAA 295,603
Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG
Insured
71
| Nuveen Pennsylvanina Dividend Advantage Muncipal Fund 2(continued)
NVY | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
$ 270 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R $ 268,040
Hospital Revenue Bonds, Fulton County Medical Center Project,
Series 2006, 5.900%, 7/01/40
115 Jeannette Health Services Authority, Pennsylvania, Hospital 11/07 at 101.00 BB- 113,456
Revenue Bonds, Jeannette District Memorial Hospital, Series
1996A, 6.000%, 11/01/18
200 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 186,032
Revenue Bonds, The Lancaster General Hospital Project, Series
2007B, 4.500%, 3/15/36
160 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 BBB+ 153,902
Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%,
1/01/37
70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 74,763
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
500 Philadelphia Hospitals and Higher Education Facilities 7/17 at 100.00 AA 475,210
Authority, Pennsylvania, Hospital Revenue Bonds, Children's
Hospital of Philadelphia, Series 2007, 4.500%, 7/01/33
1,000 Philadelphia Hospitals and Higher Education Facilities 11/07 at 100.00 BBB 1,001,990
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,552,428
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 26,107
600 6.250%, 1/01/32 1/12 at 100.00 BBB 624,300
------------------------------------------------------------------------------------------------------------------------------------
7,775 Total Health Care 7,886,677
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 820,168
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 121,633
Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian
Homes Germantown - Morrisville Project, Series 2005A, 5.625%,
7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 941,801
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.9% (4.4% OF TOTAL INVESTMENTS)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 965,720
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
565 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 562,571
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 801,256
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative
Minimum Tax)
1,100 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,042,338
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative
Minimum Tax)
480 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 464,472
Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,945 Total Housing/Single Family 3,836,357
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.8% (3.8% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,253,950
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9% (1.9% OF TOTAL INVESTMENTS)
300 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 282,090
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
305 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A+ 305,110
Center Revenue Bonds, Masonic Homes Project, Series 2006,
5.000%, 11/01/36
72
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 785 Lebanon County Health Facilities Authority, 12/14 at 100.00 N/R $ 740,812
Pennsylvania, Health Center Revenue Bonds, Pleasant View
Retirement Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc., Series 1998A:
260 5.250%, 6/01/14 6/08 at 100.00 BB+ 255,245
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 48,372
------------------------------------------------------------------------------------------------------------------------------------
1,700 Total Long-Term Care 1,631,629
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.5% (2.9% OF TOTAL INVESTMENTS)
400 Allegheny County Industrial Development Authority, No Opt. Call Baa3 414,296
Pennsylvania, Revenue Bonds, United States Steel Corporation,
Series 2005, 5.500%, 11/01/16
280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 279,812
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,044,810
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory put
11/01/11)
750 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R 763,125
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 2,502,043
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.2% (16.9% OF TOTAL INVESTMENTS)
2,040 Bensalem Township School District, Bucks County, 6/17 at 100.00 Aaa 2,022,313
Pennsylvania, General Obligation Bonds, Series 2007, 4.500%,
6/15/28 - FGIC Insured (UB)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,842,590
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,505,120
Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 779,324
1,000 5.375%, 9/15/16 - FGIC Insured AAA 1,074,930
9/12 at 100.00
625 Lower Merion School District, Montgomery County, 9/17 at 100.00 Aaa 663,613
Pennsylvania, General Obligation Bonds, Series 2007, 5.000%,
9/01/24
1,125 Montour School District, Allegheny County, Pennsylvania, 4/17 at 100.00 AAA 1,167,311
General Obligation Bonds, Series 2007, 5.000%, 4/01/37 - FSA
Insured
375 Philadelphia School District, Pennsylvania, General No Opt. Call AAA 400,556
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC
Insured
225 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 247,892
2006B, 5.250%, 9/01/16 - FSA Insured
2,510 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 796,247
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC
Insured
500 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 538,295
Pennsylvania, General Obligation Bonds, Series 2005D, 5.000%,
9/01/17 - FSA Insured
600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AAA 621,396
2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,465 Total Tax Obligation/General 14,659,587
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.0% (14.9% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 1,012,580
Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%,
7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,072,960
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 4,144,960
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 - MBIA
Insured
73
| Nuveen Pennsylvanina Dividend Advantage Muncipal Fund 2(continued)
NVY | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,200 Pennsylvania Turnpike Commission, Registration No Opt. Call AAA $ 1,328,964
Fee Revenue Bonds, Series 2005A, 5.250%, 7/15/18 - 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 1,070,540
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,859,795
800 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 894,008
Revenue Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 217,821
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 246,293
Tanger Outlet Victory Center Tax Increment Bonds, Series
2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
12,710 Total Tax Obligation/Limited 12,847,921
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.5% (3.5% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 137,315
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,031,830
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 705,061
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
180 Scranton Parking Authority, Pennsylvania, Guaranteed Revenue 6/17 at 100.00 AA 181,476
Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,010,360
Airport System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Transportation 3,066,042
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 33.4% (21.6% OF TOTAL INVESTMENTS) (4)
2,000 Adams County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 AAA 2,132,360
2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) - FGIC Insured
Allegheny County Hospital Development Authority,
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B:
100 9.250%, 11/15/22 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 118,110
300 9.250%, 11/15/30 (Pre-refunded 11/15/10) 11/10 at 102.00 AAA 354,330
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+(4) 1,285,503
Revenue Bonds, Pennswood Village Project, Series 2002A,
6.000%, 10/01/34 (Pre-refunded 10/01/12)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R(4) 1,154,670
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded
1/01/13)
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1(4) 653,046
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13)
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 529,628
Series 2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) - MBIA
Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,174,298
Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) -
AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,134,260
Pennsylvania, Lease Revenue Bonds, Series 2001B, 5.125%,
10/01/26 (Pre-refunded 10/01/11) - FSA Insured
74
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA $ 2,632,791
Ordinance, Fourth Series 1998, 5.250%, 8/01/20 (Pre-refunded
8/01/13) - FSA Insured
70 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 83,372
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,154,520
Obligation Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded
2/01/12) - FSA Insured
1,870 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 AAA 2,040,264
Obligation Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded
8/01/12) - FGIC Insured
225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 247,943
Revenue Bonds, Catholic Health East, Series 2004B, 5.375%,
11/15/34 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
17,785 Total U.S. Guaranteed 18,695,095
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.2% (2.0% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 B2 337,705
Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A,
6.750%, 12/01/36 (Alternative Minimum Tax)
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 149,775
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA
Insured
1,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 AAA 1,273,629
Series 1998, Series 42P, 5.000%, 10/01/37 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
1,700 Total Utilities 1,761,109
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.4% (6.1% OF TOTAL INVESTMENTS)
4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,644,315
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 631,379
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 5,275,694
------------------------------------------------------------------------------------------------------------------------------------
$ 83,785 Total Long-Term Investments (cost $81,931,972) - 151.9% 84,910,477
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.9% (1.9% OF TOTAL INVESTMENTS)
800 Cumberland County Municipal Authority, Pennsylvania, Auction AA 800,000
Rate Revenue Bonds, Variable Rate Demand Obligations, Diakon
Lutheran Social Ministries Project, Series 2007B, 6.000%,
1/01/25 - RAAI Insured (5)
840 Washington County Industrial Development Authority, A-1 839,941
Pennsylvania, Health Care Facilities Revenue Bonds, Variable
Rate Demand Obligations, Presbyterian Senior Care
Southminster Project, Series 2000, 5.750%, 1/01/30 - RAAI
Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,640 Total Short-Term Investments (cost $1,639,941) 1,639,941
============------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $83,571,913) - 154.8% 86,550,418
--------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.8)% (2,125,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% (17,727)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.0)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,907,691
===================================================================================================================
75
| Nuveen Pennsylvanina Dividend Advantage Muncipal Fund 2(continued)
NVY | Portfolio of INVESTMENTS October 31, 2007 (Unaudited)
The Fund may invest in "zero coupon" securities. A zero coupon security
does not pay a regular interest coupon to its holders during the life of
the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the
security at issuance and the par value of the security at maturity and is
effectively paid at maturity. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions: Dates (month and year) and prices of the
earliest optional call or redemption. There may be other call provisions
at varying prices at later dates. Certain mortgage-backed securities may
be subject to periodic principal paydowns.
(3) Ratings: Using the higher of Standard & Poor's Group ("Standard & Poor's")
or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by
Standard & Poor's or Baa by Moody's are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76
Statement of
ASSETS & LIABILITIES
October 31, 2007 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $445,863,354, $262,218,796,
$136,664,502 and $98,702,064, respectively) $ 455,832,003 $ 269,619,566 $ 139,950,157 $ 101,345,785
Cash -- -- -- --
Unrealized appreciation on forward swaps 322,734 139,648 100,815 53,561
Receivables:
Interest 7,248,168 4,059,078 2,202,475 1,609,919
Investments sold 1,084,971 2,957,460 3,956,042 519,950
Other assets 61,475 36,618 5,933 5,904
-----------------------------------------------------------------------------------------------------------------------------
Total assets 464,549,351 276,812,370 146,215,422 103,535,119
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,241,716 4,132,240 917,250 1,110,845
Floating rate obligations -- -- -- --
Unrealized depreciation on forward swaps -- -- -- --
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 242,321 144,195 53,044 33,199
Other 123,868 76,833 31,152 20,591
Common share dividends payable 942,940 557,446 340,563 249,189
Preferred share dividends payable 43,515 40,287 5,253 19,112
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,594,360 4,951,001 1,347,262 1,432,936
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 299,954,991 $ 180,261,369 $ 96,868,160 $ 67,602,183
=============================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,577,112 4,523,121
=============================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.64 $ 14.96 $ 14.73 $ 14.95
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,771 $ 45,231
Paid-in surplus 289,027,855 172,022,510 93,392,198 64,156,796
Undistributed (Over-distribution of) net investment income (402,892) (95,255) (187,534) (164,700)
Accumulated net realized gain (loss) from investments and
derivative transactions 833,802 673,201 211,255 867,574
Net unrealized appreciation (depreciation) of
investments and derivative transactions 10,291,383 7,540,418 3,386,470 2,697,282
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 299,954,991 $ 180,261,369 $ 96,868,160 $ 67,602,183
=============================================================================================================================
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.
77
Statement of
ASSETS & LIABILITIES (continued)
October 31, 2007 (Unaudited)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $382,005,397, $345,417,092,
$73,288,323 and $83,571,913, respectively) $ 394,006,014 $ 355,451,569 $ 75,786,392 $ 86,550,418
Cash 346,537 -- 508,236 --
Unrealized appreciation on forward swaps -- 165,457 -- --
Receivables:
Interest 5,688,260 5,642,945 1,155,401 1,145,476
Investments sold 3,797,011 3,955,390 642,417 720,000
Other assets 49,954 42,757 5,760 5,767
-----------------------------------------------------------------------------------------------------------------------------
Total assets 403,887,776 365,258,118 78,098,206 88,421,661
-----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 689,122 -- 452,890
Floating rate obligations 25,330,000 16,020,000 1,915,000 2,125,000
Unrealized depreciation on forward swaps 672,598 168,063 -- --
Payable for investments purchased 5,220,769 4,805,002 1,047,312 1,184,146
Accrued expenses:
Management fees 195,759 181,008 27,548 27,444
Other 103,482 114,141 22,293 14,655
Common share dividends payable 740,599 672,555 170,428 205,254
Preferred share dividends payable 68,480 45,599 2,192 4,581
-----------------------------------------------------------------------------------------------------------------------------
Total liabilities 32,331,687 22,695,490 3,184,773 4,013,970
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 239,556,089 $ 224,462,628 $ 49,913,433 $ 55,907,691
=============================================================================================================================
Common shares outstanding 16,180,598 15,684,751 3,332,584 3,725,809
=============================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.81 $ 14.31 $ 14.98 $ 15.01
=============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
-----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 161,806 $ 156,848 $ 33,326 $ 37,258
Paid-in surplus 229,131,395 214,679,724 47,308,740 52,812,837
Undistributed (Over-distribution of) net investment income (426,047) (521,341) (123,883) (130,507)
Accumulated net realized gain (loss) from investments and
derivative transactions (639,084) 115,526 197,181 209,598
Net unrealized appreciation (depreciation) of
investments 11,328,019 10,031,871 2,498,069 2,978,505
-----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 239,556,089 $ 224,462,628 $ 49,913,433 $ 55,907,691
=============================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
=============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
78
Statement of
OPERATIONS
Six Months Ended October 31, 2007 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 11,111,333 $ 6,466,996 $ 3,500,633 $ 2,470,158
-----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,433,801 852,321 459,653 324,909
Preferred shares - auction fees 204,165 115,442 60,494 43,479
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 18,219 10,993 842 783
Interest expense on floating rate obligations -- -- -- --
Custodian's fees and expenses 58,493 42,884 19,777 16,751
Directors'/Trustees' fees and expenses 5,759 3,532 1,923 1,399
Professional fees 16,546 12,455 7,201 5,988
Shareholders' reports - printing and mailing expenses 33,613 21,239 9,718 7,619
Stock exchange listing fees 4,890 4,865 281 194
Investor relations expense 19,626 12,397 9,456 7,940
Other expenses 20,476 11,077 7,927 7,348
-----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 1,830,711 1,102,328 582,313 421,451
Custodian fee credit (20,223) (6,451) (6,827) (7,191)
Expense reimbursement -- -- (145,493) (128,208)
-----------------------------------------------------------------------------------------------------------------------------
Net expenses 1,810,488 1,095,877 429,993 286,052
-----------------------------------------------------------------------------------------------------------------------------
Net investment income 9,300,845 5,371,119 3,070,640 2,184,106
-----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments 424,978 163,060 93,970 395,520
Forward swaps (28,085) -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (7,069,996) (3,439,940) (2,547,278) (2,071,983)
Forward swaps 319,881 138,664 100,225 53,266
-----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (6,353,222) (3,138,216) (2,353,083) (1,623,197)
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,696,176) (1,534,708) (791,111) (548,791)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,696,176) (1,534,708) (791,111) (548,791)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 251,447 $ 698,195 $ (73,554) $ 12,118
=============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
79
Statement of
OPERATIONS (continued) (Unaudited)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,718,314 $ 8,827,238 $ 1,891,763 $ 2,125,736
-----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,161,651 1,074,177 238,375 268,145
Preferred shares - auction fees 166,356 148,838 31,506 35,919
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041
Shareholders' servicing agent fees and expenses 19,762 17,188 944 808
Interest expense on floating rate obligations 541,218 404,992 37,303 41,499
Custodian's fees and expenses 70,025 63,495 12,880 12,863
Directors'/Trustees' fees and expenses 4,927 4,483 1,053 1,219
Professional fees 13,090 11,912 5,455 5,571
Shareholders' reports - printing and mailing expenses 29,145 27,059 6,881 7,998
Stock exchange listing fees 4,857 4,856 141 160
Investor relations expense 22,071 19,271 4,457 5,181
Other expenses 17,719 10,461 6,853 7,014
-----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 2,065,944 1,801,855 350,889 391,418
Custodian fee credit (12,100) (8,189) (5,626) (4,138)
Expense reimbursement -- -- (75,249) (105,809)
-----------------------------------------------------------------------------------------------------------------------------
Net expenses 2,053,844 1,793,666 270,014 281,471
-----------------------------------------------------------------------------------------------------------------------------
Net investment income 7,664,470 7,033,572 1,621,749 1,844,265
-----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (343,547) (840,452) 107,887 26,810
Forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (5,768,227) (5,171,027) (1,359,289) (1,249,106)
Forward swaps (331,952) (184,073) -- --
-----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (6,443,726) (6,195,552) (1,251,402) (1,222,296)
-----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,406,554) (2,175,885) (442,159) (515,015)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,406,554) (2,175,885) (442,159) (515,015)
-----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ (1,185,810) $ (1,337,865) $ (71,812) $ 106,954
=============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
80
Statement of
CHANGES in NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ)
-------------------------------------------- --------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,300,845 $ 15,440,608 $ 18,688,118 $ 5,371,119 $ 8,918,431 $ 10,793,726
Net realized gain (loss) from:
Investments 424,978 705,064 2,924,752 163,060 510,558 1,016,202
Forward swaps (28,085) -- -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment
restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (7,069,996) 8,995,606 (18,288,152) (3,439,940) 5,450,660 (11,273,653)
Forward swaps 319,881 2,853 -- 138,664 984 --
Distributions to Preferred Shareholders:
From net investment income (2,696,176) (4,125,527) (3,729,225) (1,534,708) (2,385,561) (1,991,793)
From accumulated net realized gains -- (168,273) (599,726) -- (27,729) (454,296)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 251,447 20,850,331 (1,004,233) 698,195 12,467,343 (1,909,814)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,698,375) (11,286,866) (16,230,307) (3,976,335) (7,003,612) (9,510,935)
From accumulated net realized gains -- (700,556) (4,917,869) -- (123,667) (3,721,776)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (6,698,375) (11,987,422) (21,148,176) (3,976,335) (7,127,279) (13,232,711)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- 608,791 -- -- 159,660
Repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions -- -- 608,791 -- -- 159,660
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (6,446,928) 8,862,909 (21,543,618) (3,278,140) 5,340,064 (14,982,865)
Net assets applicable to Common
shares at the beginning of period 306,401,919 297,539,010 319,082,628 183,539,509 178,199,445 193,182,310
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $299,954,991 $306,401,919 $297,539,010 $180,261,369 $183,539,509 $178,199,445
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (402,892) $ (309,186) $ (337,401) $ (95,255) $ 44,669 $ 515,769
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
81
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
-------------------------------------------- --------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,070,640 $ 5,144,398 $ 6,237,805 $ 2,184,106 $ 3,733,391 $ 4,467,174
Net realized gain (loss) from:
Investments 93,970 307,186 484,326 395,520 526,783 178,837
Forward swaps -- -- -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (2,547,278) 2,703,743 (5,541,649) (2,071,983) 1,671,929 (3,595,338)
Forward swaps 100,225 590 -- 53,266 295 --
Distributions to Preferred Shareholders:
From net investment income (791,111) (1,250,055) (1,154,022) (548,791) (919,957) (861,957)
From accumulated net realized gains -- (7,668) (82,061) -- (3,401) (57,711)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (73,554) 6,898,194 (55,601) 12,118 5,009,040 131,005
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,295,340) (4,204,503) (5,512,880) (1,671,195) (2,982,781) (3,899,566)
From accumulated net realized gains -- (34,815) (678,056) -- (14,809) (424,522)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,295,340) (4,239,318) (6,190,936) (1,671,195) (2,997,590) (4,324,088)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 34,444 166,210 122,384 23,494 76,290 111,985
Repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 34,444 166,210 122,384 23,494 76,290 111,985
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (2,334,450) 2,825,086 (6,124,153) (1,635,583) 2,087,740 (4,081,098)
Net assets applicable to Common
shares at the beginning of period 99,202,610 96,377,524 102,501,677 69,237,766 67,150,026 71,231,124
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 96,868,160 $ 99,202,610 $ 96,377,524 $ 67,602,183 $ 69,237,766 $ 67,150,026
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (187,534) $ (171,723) $ 139,151 $ (164,700) $ (128,820) $ 41,782
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
82
PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM
QUALITY (NQP) INCOME 2 (NPY)
-------------------------------------------- --------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,664,470 $ 12,522,643 $ 14,590,128 $ 7,033,572 $ 11,784,988 $ 14,058,368
Net realized gain (loss) from:
Investments (343,547) 525,913 (822,081) (840,452) 1,099,235 (44,620)
Forward swaps -- -- -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- -- -- -- 27,169
Change in net unrealized appreciation
(depreciation) of:
Investments (5,768,227) 7,529,900 (13,473,894) (5,171,027) 6,516,874 12,682,405
Forward swaps (331,952) (340,646) -- (184,073) 181,467 --
Distributions to Preferred Shareholders:
From net investment income (2,406,554) (3,721,535) (3,413,477) (2,175,885) (3,333,169) (2,800,234)
From accumulated net realized gains -- -- (261,069) -- -- (435,619)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (1,185,810) 16,516,275 (3,380,393) (1,337,865) 16,249,395 (1,877,341)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,290,590) (8,590,894) (11,533,314) (5,001,404) (8,720,545) (12,127,724)
From accumulated net realized gains -- -- (1,732,849) -- -- (3,389,440)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (5,290,590) (8,590,894) (13,266,163) (5,001,404) (8,720,545) (15,517,164)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions -- -- -- -- -- 142,460
Repurchased (1,611,181) -- -- (1,848,061) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions (1,611,181) -- -- (1,848,061) -- 142,460
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (8,087,581) 7,925,381 (16,646,556) (8,187,330) 7,528,850 (17,252,045)
Net assets applicable to Common
shares at the beginning of period 247,643,670 239,718,289 256,364,845 232,649,958 225,121,108 242,373,153
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $239,556,089 $247,643,670 $239,718,289 $224,462,628 $232,649,958 $225,121,108
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (426,047) $ (393,373) $ (603,568) $ (521,341) $ (377,624) $ (110,182)
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
83
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
PENNSYLVANIA DIVIDEND PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM) ADVANTAGE 2 (NVY)
-------------------------------------------- --------------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,621,749 $ 2,711,602 $ 3,240,349 $ 1,844,265 $ 3,086,215 $ 3,667,111
Net realized gain (loss) from:
Investments 107,887 212,309 (47,126) 26,810 328,218 239,396
Forward swaps -- -- -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of:
Investments (1,359,289) 1,305,436 (2,528,439) (1,249,106) 1,348,046 (3,414,928)
Forward swaps -- -- -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (442,159) (684,854) (637,236) (515,015) (791,861) (715,207)
From accumulated net realized gains -- -- (40,350) -- (22,246) (47,059)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (71,812) 3,544,493 (12,802) 106,954 3,948,372 (270,687)
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,203,007) (2,195,386) (2,902,469) (1,350,584) (2,318,778) (2,942,584)
From accumulated net realized gains -- -- (336,361) -- (90,880) (363,540)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (1,203,007) (2,195,386) (3,238,830) (1,350,584) (2,409,658) (3,306,124)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to
shareholders due to reinvestment
of distributions 28,148 151,298 199,614 9,541 6,072 --
Repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from capital share transactions 28,148 151,298 199,614 9,541 6,072 --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (1,246,671) 1,500,405 (3,052,018) (1,234,089) 1,544,786 (3,576,811)
Net assets applicable to Common
shares at the beginning of period 51,160,104 49,659,699 52,711,717 57,141,780 55,596,994 59,173,805
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 49,913,433 $ 51,160,104 $ 49,659,699 $ 55,907,691 $ 57,141,780 $ 55,596,994
===================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (123,883) $ (100,466) $ 68,404 $ (130,507) $ (109,173) $ (83,424)
===================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
84
Statement of
CASH FLOWS
Six Months Ended October 31, 2007 (Unaudited)
PENNSYLVANIA
INVESTMENT
QUALITY
(NQP)
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ (1,185,810)
Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations
to net cash provided by (used in) operating activities:
Purchases of investments (46,509,622)
Proceeds from sales and maturities of investments 63,129,061
Proceeds from sales of forward swaps --
Proceeds from (purchase of) short-term investments (9,924,739)
Amortization/(Accretion) of premiums and discounts, net 223,544
(Increase) Decrease in receivable for interest 135,700
(Increase) Decrease in receivable for investments sold 5,811,440
(Increase) Decrease in other assets (6,004)
Increase (Decrease) in payable for investments purchased (4,197,456)
Increase (Decrease) in accrued management fees 2,492
Increase (Decrease) in accrued other liabilities 2,043
Increase (Decrease) in Preferred shares dividends payable 5,291
Net realized (gain) loss from investments 343,547
Net realized (gain) loss from forward swaps --
Change in net unrealized (appreciation) depreciation of investments 5,768,227
Change in net unrealized (appreciation) depreciation of forward swaps 331,952
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 13,929,666
-----------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in floating rate obligations (7,045,000)
Cash distributions paid to Common shareholders (4,549,991)
Cost of Common shares repurchases (1,611,181)
-----------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (13,206,172)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH 723,494
Cash at the beginning of year (376,957)
-----------------------------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ 346,537
=============================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
85
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund,
Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common
shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
are traded on the New York Stock Exchange while Common shares of New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
In February 2007, the Board of Directors/Trustees of the Funds approved a change
in the Funds' fiscal year end from June 30 to April 30.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment or derivative transaction is
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At of October 31, 2007, there
were no such outstanding purchase commitments in any of the Funds.
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
86
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
=============================================================================================================================
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
87
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the six months ended October 31, 2007, New Jersey Investment Quality
(NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ),
Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY),
Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2
(NVY) invested in externally deposited inverse floaters and/or self-deposited
inverse floaters. New Jersey Dividend Advantage 2 (NUJ) did not invest in any
such instruments during the six months ended October 31, 2007.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended October 31, 2007, were as follows:
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $27,936,168 $20,619,212 $1,907,908 $2,122,446
Average annual interest rate and fees 3.84% 3.90% 3.88% 3.88%
=============================================================================================================================
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward
88
swaps before the effective date. Accordingly, the risk of loss with respect to
the swap counterparty on such transactions is limited to the credit risk
associated with a counterparty failing to honor its commitment to pay any
realized gain to the Fund upon termination. To reduce such credit risk, all
counterparties are required to pledge collateral daily (based on the daily
valuation of each swap) on behalf of each Fund with a value approximately equal
to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which the Fund overdraws its account at the custodian bank.
INDEMNIFICATIONS
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
On July 10, 2007, the Board of Trustees of Pennsylvania Investment Quality (NQP)
and Pennsylvania Premium Income 2 (NPY) approved an open-market share repurchase
program, as part of a broad, ongoing effort designed to support the market
prices of the Funds' Common shares. Under the terms of the new program, each
Fund may repurchase up to 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ)
------------------------------------ ------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due to
reinvestment of distributions -- -- 39,742 -- -- 10,167
Shares repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
===================================================================================================================================
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------ ------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due to
reinvestment of distributions 2,302 10,642 7,907 1,545 4,764 6,973
Shares repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
===================================================================================================================================
89
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
PENNSYLVANIA PENNSYLVANIA
INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
------------------------------------ ------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 9,155
Shares repurchased (120,900) -- -- (142,000) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased $13.31 -- -- $12.99 -- --
Weighted average discount per Common share repurchased 9.08% -- -- 8.45% -- --
===================================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------ ------------------------------------
SIX MONTHS TEN MONTHS SIX MONTHS TEN MONTHS
ENDED ENDED YEAR ENDED ENDED ENDED YEAR ENDED
10/31/07 4/30/07 6/30/06 10/31/07 4/30/07 6/30/06
-----------------------------------------------------------------------------------------------------------------------------------
Common shares:
Shares issued to shareholders due to
reinvestment of distributions 1,846 9,600 12,400 626 393 --
Shares repurchased -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- -- -- --
Weighted average discount per Common share repurchased -- -- -- -- -- --
===================================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended October 31, 2007, 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 $33,244,477 $23,835,288 $11,187,464 $8,345,758
Sales and maturities 31,767,394 21,511,082 14,122,835 9,949,558
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Purchases $46,509,622 $55,064,451 $7,407,045 $8,724,266
Sales and maturities 63,129,061 74,687,194 9,620,188 9,394,144
=============================================================================================================================
90
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No.140. To the
extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At October 31, 2007, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Cost of investments $445,842,040 $262,061,545 $136,624,358 $98,706,314
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Cost of investments $356,660,961 $329,156,276 $71,362,488 $81,454,111
=============================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2007, 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 $13,383,312 $9,374,962 $4,428,571 $3,454,444
Depreciation (3,393,349) (1,816,941) (1,102,772) (814,973)
Net unrealized appreciation (depreciation) of investments $9,989,963 $7,558,021 $3,325,799 $2,639,471
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $14,255,135 $12,367,952 $2,933,552 $3,456,469
Depreciation (2,240,489) (2,114,125) (430,277) (482,304)
Net unrealized appreciation (depreciation) of investments $12,014,646 $10,253,827 $2,503,275 $2,974,165
=============================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2007, the Funds' last tax year end,
were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $866,264 $621,055 $207,777 $154,139
Undistributed net ordinary income ** -- 11,923 -- 886
Undistributed net long-term capital gains 436,909 510,142 133,483 505,099
=============================================================================================================================
91
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $529,184 $313,702 $ 98,160 $112,624
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- 955,975 118,117 211,623
=============================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 2, 2007, paid on May 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the ten months ended April 30,
2007, the Funds' last tax year end, and during the tax year ended June 30, 2006,
was designated for purposes of the dividends paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
TEN MONTHS ENDED APRIL 30, 2007 (NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,443,038 $9,395,450 $5,456,484 $3,895,191
Distributions from net ordinary income ** -- 3,495 -- 127
Distributions from net long-term capital gains 868,829 151,396 42,483 18,210
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
TEN MONTHS ENDED APRIL 30, 2007 (NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $12,242,231 $12,079,079 $2,880,245 $3,111,211
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- -- -- 113,126
=============================================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
YEAR ENDED JUNE 30, 2006 (NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,266,148 $11,621,963 $6,701,392 $4,803,247
Distributions from net ordinary income ** -- 9,989 -- 124
Distributions from net long-term capital gains 5,517,595 4,174,209 760,117 482,233
=============================================================================================================================
92
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
YEAR ENDED JUNE 30, 2006 (NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,205,803 $15,141,147 $3,570,220 $3,664,279
Distributions from net ordinary income ** 8,580 41,520 -- --
Distributions from net long-term capital gains 1,984,315 3,816,421 357,090 410,598
=============================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At April 30, 2007, the Funds' last tax year-end, Pennsylvania Investment Quality
(NQP) had unused capital loss carryforwards of $295,537 available for federal
income tax purposes to be applied against future capital gains, if any. If not
applied $124,650 of the carryforward will expire in 2014 and $170,887 will
expire in 2015.
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual Fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
PENNSYLVANIA INVESTMENT QUALITY (NQP)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
===================================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
-----------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
===================================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of October 31, 2007, the complex-level fee rate was .1828%.
93
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
94
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
As a result of certain trading errors that occurred during the fiscal year ended
June 30, 2006, Pennsylvania Premium Income 2 (NPY) was reimbursed $27,169 by the
Adviser to offset losses realized upon the disposal of investments purchased in
violation of investment restrictions.
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors/Trustees of each
Fund considered and approved a new investment management agreement with the
Adviser at the same fee rate. The new ongoing agreement was approved by the
shareholders of each Fund and took effect on November 13, 2007.
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation will
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
95
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
Effective October 31, 2007, the Funds adopted Financial Accounting Standards
Board Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance regarding how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Funds' tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Management of
the Funds has concluded that there are no significant uncertain tax positions
that require recognition in the Funds' financial statements. Consequently, the
adoption of FIN 48 had no impact on the net assets or results of operations of
the Funds.
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2007, management does not believe the adoption
of SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 3, 2007, to shareholders of record
on November 15, 2007, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-----------------------------------------------------------------------------------------------------------------------------
Dividend per share $.0545 $.0545 $.0550 $.0575
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-----------------------------------------------------------------------------------------------------------------------------
Dividend per share $.0550 $.0495 $.0570 $.0575
=============================================================================================================================
96
Financial
HIGHLIGHTS (Unaudited)
97
| Financial
| HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $14.96 $ .45 $ (.31) $(.13) $ -- $ .01 $ (.33) $ -- $ (.33)
2007(c) 14.53 .75 .47 (.20) (.01) 1.01 (.55) (.03) (.58)
Year Ended 6/30:
2006 15.61 .91 (.75) (.18) (.03) (.05) (.79) (.24) (1.03)
2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
NEW JERSEY PREMIUM INCOME (NNJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 15.23 .45 (.26) (.13) -- .06 (.33) -- (.33)
2007(c) 14.79 .74 .49 (.20) --** 1.03 (.58) (.01) (.59)
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16) (.79) (.31) (1.10)
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
===================================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value*** Value***
-------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $ -- $14.64 $13.22 (5.30)% 0.07%
2007(c) -- 14.96 14.30 8.75 7.05
Year Ended 6/30:
2006 -- 14.53 13.70 (3.62) (.31)
2005 -- 15.61 15.25 15.13 13.81
2004 -- 14.69 14.19 (4.09) 1.26
2003 -- 15.65 15.94 11.68 10.72
2002 -- 15.07 15.22 4.19 6.56
NEW JERSEY PREMIUM INCOME (NNJ)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) -- 14.96 13.53 (8.39) 0.42
2007(c) -- 15.23 15.12 11.10 7.03
Year Ended 6/30:
2006 -- 14.79 14.16 (3.36) (1.04)
2005 -- 16.05 15.76 19.43 12.31
2004 -- 15.35 14.19 (5.65) .85
2003 -- 16.28 16.10 10.18 10.48
2002 -- 15.60 15.50 7.88 7.91
=========================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $299,955 1.21%* 1.21%* 6.16%* 1.20%* 1.20%* 6.17%* 7%
2007(c) 306,402 1.20* 1.20* 6.04* 1.19* 1.19* 6.06* 7
Year Ended 6/30:
2006 297,539 1.21 1.21 6.05 1.19 1.19 6.08 17
2005 319,083 1.21 1.21 6.22 1.20 1.20 6.23 15
2004 299,671 1.21 1.21 6.64 1.21 1.21 6.64 19
2003 316,970 1.22 1.22 6.80 1.22 1.22 6.81 12
2002 304,808 1.25 1.25 7.35 1.23 1.23 7.36 22
NEW JERSEY PREMIUM INCOME (NNJ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 180,261 1.22* 1.22* 5.94* 1.21* 1.21* 5.94* 8
2007(c) 183,540 1.21* 1.21* 5.83* 1.20* 1.20* 5.84* 6
Year Ended 6/30:
2006 178,199 1.19 1.19 5.81 1.18 1.18 5.83 12
2005 193,182 1.18 1.18 5.91 1.17 1.17 5.92 21
2004 184,753 1.18 1.18 6.23 1.18 1.18 6.23 23
2003 195,568 1.20 1.20 6.48 1.20 1.20 6.48 13
2002 187,393 1.22 1.22 6.85 1.22 1.22 6.86 14
==================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- -----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $162,000 $ 25,000 $71,289 $ -- $ --
2007(c) 162,000 25,000 72,284 -- --
Year Ended 6/30:
2006 162,000 25,000 70,917 -- --
2005 162,000 25,000 74,241 -- --
2004 162,000 25,000 71,246 -- --
2003 162,000 25,000 73,915 -- --
2002 162,000 25,000 72,038 -- --
NEW JERSEY PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 91,600 25,000 74,198 -- --
2007(c) 91,600 25,000 75,093 -- --
Year Ended 6/30:
2006 91,600 25,000 73,635 -- --
2005 91,600 25,000 77,724 -- --
2004 91,600 25,000 75,424 -- --
2003 91,600 25,000 78,376 -- --
2002 91,600 25,000 76,144 -- --
====================================================================================
* Annualized.
** Per share Distributions from Capital Gains to Preferred Shareholders
rounds to less than $.01 per share.
*** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized. Total Return on Common
Share Net Asset Value is the combination of changes in Common share net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net
asset value. The actual reinvest price for the last dividend declared in
the period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2007.
(c) For the ten months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
98-99
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $15.09 $ .47 $ (.36) $(.12) $ -- $ (.01) $ (.35) $ -- $(.35)
2007(c) 14.68 .78 .47 (.19) --** 1.06 (.64) (.01) (.65)
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94)
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 15.31 .48 (.35) (.12) -- .01 (.37) -- (.37)
2007(c) 14.87 .83 .47 (.20) --** 1.10 (.66) --** (.66)
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03 (.86) (.09) (.95)
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(d) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
===================================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value*** Value***
-------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $ -- $14.73 $13.55 (11.80)% (0.05)%
2007(c) -- 15.09 15.75 14.37 7.26
Year Ended 6/30:
2006 -- 14.68 14.35 (.78) (.05)
2005 -- 15.63 15.38 19.97 13.80
2004 -- 14.59 13.63 (5.13) 1.20
2003 .01 15.35 15.30 15.09 13.18
2002 -- 14.38 14.12 (.17) 6.05
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) -- 14.95 14.10 (12.38) 0.09
2007(c) -- 15.31 16.50 15.40 7.50
Year Ended 6/30:
2006 -- 14.87 14.90 (.49) .25
2005 -- 15.79 15.90 23.39 15.00
2004 -- 14.62 13.74 (4.81) 1.02
2003 -- 15.44 15.40 9.14 13.74
2002(d) (.14) 14.46 15.04 1.29 1.98
=========================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $ 96,868 1.19%* 1.19%* 5.99%* .88%* .88%* 6.30%* 8%
2007(c) 99,203 1.20* 1.20* 5.85* .83* .83* 6.23* 9
Year Ended 6/30:
2006 96,378 1.19 1.19 5.83 .75 .75 6.28 16
2005 102,502 1.19 1.19 5.94 .74 .74 6.39 17
2004 95,651 1.20 1.20 6.26 .74 .74 6.71 11
2003 100,502 1.19 1.19 6.56 .74 .74 7.01 8
2002 94,130 1.24 1.24 6.76 .75 .75 7.25 7
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 67,602 1.24* 1.24* 6.02* .84* .84* 6.42* 8
2007(c) 69,238 1.24* 1.24* 6.03* .78* .78* 6.49* 11
Year Ended 6/30:
2006 67,150 1.23 1.23 5.99 .76 .76 6.47 13
2005 71,231 1.23 1.23 6.09 .77 .77 6.54 11
2004 65,919 1.25 1.25 6.41 .79 .79 6.87 11
2003 69,616 1.23 1.23 6.53 .76 .76 7.00 12
2002(d) 65,153 1.07* 1.07* 3.86* .67* .67* 4.25* --
==================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- -----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $48,000 $25,000 $ 75,452 $ -- $ --
2007(c) 48,000 25,000 76,668 -- --
Year Ended 6/30:
2006 48,000 25,000 75,197 -- --
2005 48,000 25,000 78,386 -- --
2004 48,000 25,000 74,818 -- --
2003 48,000 25,000 77,345 -- --
2002 48,000 25,000 74,026 -- --
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 34,500 25,000 73,987 -- --
2007(c) 34,500 25,000 75,172 -- --
Year Ended 6/30:
2006 34,500 25,000 73,659 -- --
2005 34,500 25,000 76,617 -- --
2004 34,500 25,000 72,767 -- --
2003 34,500 25,000 75,446 -- --
2002(d) 34,500 25,000 72,213 -- --
====================================================================================
* Annualized.
** Per share Distributions from Capital Gains to Preferred Shareholders
rounds to less than $.01 per share.
*** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized. Total Return on Common
Share Net Asset Value is the combination of changes in Common share net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net
asset value. The actual reinvest price for the last dividend declared in
the period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2007.
(c) For the ten months ended April 30, 2007.
(d) For the period March 25, 2002 (commencement of operations) through June
30, 2002.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
100-101
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $15.19 $ .47 $ (.37) $(.15) $ -- $ (.05) $ (.33) $ -- $ (.33)
2007(c) 14.71 .77 .47 (.23) -- 1.01 (.53) -- (.53)
Year Ended 6/30:
2006 15.73 .90 (.87) (.21) (.02) (.20) (.71) (.11) (.82)
2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 14.70 .45 (.38) (.14) -- (.07) (.32) -- (.32)
2007(c) 14.22 .74 .50 (.21) -- 1.03 (.55) -- (.55)
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12) (.77) (.21) (.98)
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
==================================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value*** Value***
-------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
-------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $ -- $14.81 $13.49 (1.38)% (0.33)%
2007(c) -- 15.19 14.01 12.41 6.89
Year Ended 6/30:
2006 -- 14.71 12.95 (9.47) (1.34)
2005 -- 15.73 15.16 19.53 12.67
2004 -- 14.92 13.58 (9.73) (.38)
2003 -- 15.91 16.01 11.98 14.79
2002 -- 14.70 15.18 6.57 7.34
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) -- 14.31 12.64 (5.27) (0.47)
2007(c) -- 14.70 13.67 9.83 7.31
Year Ended 6/30:
2006 -- 14.22 12.96 (8.42) (.80)****
2005 -- 15.32 15.16 17.79 11.80
2004 -- 14.74 13.84 (7.22) .94
2003 -- 15.65 16.00 15.09 12.09
2002 -- 14.83 14.79 13.25 8.88
===============================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $239,556 1.71%* 1.26%* 6.33%* 1.70%* 1.25%* 6.34%* 12%
2007(c) 247,644 1.54* 1.25* 6.06* 1.53* 1.23* 6.07* 16
Year Ended 6/30:
2006 239,718 1.23 1.23 5.87 1.21 1.21 5.89 20
2005 256,365 1.23 1.23 5.96 1.22 1.22 5.97 18
2004 243,287 1.23 1.23 6.38 1.22 1.22 6.39 17
2003 258,924 1.27 1.27 6.59 1.26 1.26 6.60 11
2002 238,926 1.31 1.31 7.42 1.30 1.30 7.44 34
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 224,463 1.59* 1.23* 6.19* 1.58* 1.22* 6.19* 16
2007(c) 232,650 1.40* 1.21* 6.08* 1.39* 1.20* 6.09* 15
Year Ended 6/30:
2006 225,121 1.20 1.20 6.01 1.18 1.18 6.03 18
2005 242,373 1.19 1.19 6.09 1.19 1.19 6.10 22
2004 232,455 1.18 1.18 6.45 1.17 1.17 6.46 16
2003 246,604 1.20 1.20 6.76 1.19 1.19 6.77 19
2002 233,536 1.24 1.24 7.28 1.23 1.23 7.29 7
==================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
--------------------------------------- -----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $132,000 $25,000 $ 70,370 $ 25,330 $ 15,669
2007(c) 132,000 25,000 71,902 28,715 14,221
Year Ended 6/30:
2006 132,000 25,000 70,401 -- --
2005 132,000 25,000 73,554 -- --
2004 132,000 25,000 71,077 -- --
2003 132,000 25,000 74,039 -- --
2002 132,000 25,000 70,251 -- --
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 118,100 25,000 72,515 16,020 22,383
2007(c) 118,100 25,000 74,249 22,585 16,530
Year Ended 6/30:
2006 118,100 25,000 72,655 -- --
2005 118,100 25,000 76,307 -- --
2004 118,100 25,000 74,207 -- --
2003 118,100 25,000 77,202 -- --
2002 118,100 25,000 74,436 -- --
====================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized. Total Return on Common
Share Net Asset Value is the combination of changes in Common share net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net
asset value. The actual reinvest price for the last dividend declared in
the period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Funds' Total Return on Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2007.
(c) For the ten months ended April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
102-103
| Financial
| HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ ---------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $15.36 $ .49 $ (.38) $(.13) $ -- $ (.02) $ (.36) $ -- $ (.36)
2007(c) 14.95 .82 .46 (.21) -- 1.07 (.66) -- (.66)
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98)
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 15.34 .50 (.33) (.14) -- .03 (.36) -- (.36)
2007(c) 14.93 .83 .44 (.21) (.01) 1.05 (.62) (.02) (.64)
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07) (.79) (.10) (.89)
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(d) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
==================================================================================================================================
Total Returns
--------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value*** Value***
-------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $ -- $ 14.98 $13.62 (11.04)% (0.10)%
2007(c) -- 15.36 15.70 8.40 7.22
Year Ended 6/30:
2006 -- 14.95 15.10 (.56) (.01)
2005 -- 15.93 16.14 21.84 13.02
2004 -- 15.32 14.39 (5.95) 1.30
2003 .02 16.25 16.46 18.13 15.95
2002 -- 14.96 14.89 9.10 9.67
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
-------------------------------------------------------------------------
Year Ended 4/30:
2008(b) -- 15.01 13.65 (7.77) 0.25
2007(c) -- 15.34 15.18 11.88 7.14
Year Ended 6/30:
2006 -- 14.93 14.16 .88 (.46)
2005 -- 15.89 14.90 17.63 13.37
2004 -- 14.87 13.48 (8.58) .29
2003 -- 15.90 15.84 14.38 15.48
2002(d) (.14) 14.64 14.74 (.73) 3.24
=========================================================================
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
------------------------------------------ ------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $49,913 1.40%* 1.25%* 6.13%* 1.07%* .93%* 6.46%* 10%
2007(c) 51,160 1.33* 1.27* 5.99* .95* .89* 6.37* 11
Year Ended 6/30:
2006 49,660 1.25 1.25 5.90 .80 .80 6.35 12
2005 52,712 1.23 1.23 5.82 .78 .78 6.28 13
2004 50,549 1.21 1.21 6.15 .76 .76 6.60 10
2003 53,591 1.23 1.23 6.44 .79 .79 6.88 13
2002 49,306 1.29 1.29 7.12 .82 .82 7.59 48
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 55,908 1.39* 1.25* 6.18* 1.00* .85* 6.57* 10
2007(c) 57,142 1.33* 1.27* 6.03* .88* .82* 6.48* 13
Year Ended 6/30:
2006 55,597 1.24 1.24 5.93 .77 .77 6.40 13
2005 59,174 1.23 1.23 5.80 .78 .78 6.25 8
2004 55,370 1.24 1.24 5.95 .78 .78 6.40 4
2003 59,202 1.25 1.25 6.07 .78 .78 6.53 13
2002(d) 54,481 1.09* 1.09* 3.77* .70* .70* 4.15* 8
==================================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -----------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) $25,000 $25,000 $74,913 $ 1,915 $ 40,119
2007(c) 25,000 25,000 76,160 1,305 59,360
Year Ended 6/30:
2006 25,000 25,000 74,660 -- --
2005 25,000 25,000 77,712 -- --
2004 25,000 25,000 75,549 -- --
2003 25,000 25,000 78,591 -- --
2002 25,000 25,000 74,306 -- --
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------
Year Ended 4/30:
2008(b) 28,500 25,000 74,042 2,125 40,721
2007(c) 28,500 25,000 75,124 1,460 59,659
Year Ended 6/30:
2006 28,500 25,000 73,769 -- --
2005 28,500 25,000 76,907 -- --
2004 28,500 25,000 73,570 -- --
2003 28,500 25,000 76,932 -- --
2002(d) 28,500 25,000 72,790 -- --
====================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period takes place over
several days, and in some instances may not be based on the market price,
so the actual reinvestment price may be different from the price used in
the calculation. Total returns are not annualized. Total Return on Common
Share Net Asset Value is the combination of changes in Common share net
asset value, reinvested dividend income at net asset value and reinvested
capital gains distributions at net asset value, if any. The last dividend
declared in the period, which is typically paid on the first business day
of the following month, is assumed to be reinvested at the ending net
asset value. The actual reinvest price for the last dividend declared in
the period may often be based on the Fund's market price (and not its net
asset value), and therefore may be different from the price used in the
calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2007.
(c) For the ten months ended April 30, 2007.
(d) For the period March 25, 2002 (commencement of operations) through June
30, 2002.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
104-105
--------------------------------------------------------------------------------
Annual Investment
Management Agreement
APPROVAL PROCESS
--------------------------------------------------------------------------------
The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At the annual review meeting held on May 21, 2007 (the "May
Meeting"), the Board Members of the Funds, including the Independent Board
Members, unanimously approved the continuance of the Investment Management
Agreement between each Fund (each, a "Fund") and Nuveen Asset Management
("NAM"). The foregoing Investment Management Agreements with NAM are hereafter
referred to as the "Original Investment Management Agreements."
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement, as required by
Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for
its automatic termination in the event of its "assignment" (as defined in the
1940 Act). Any change in control of the adviser is deemed to be an assignment.
The consummation of the Transaction will result in a change of control of NAM as
well as its affiliated sub-advisers and therefore cause the automatic
termination of each Original Investment Management Agreement, as required by the
1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on
July 31, 2007 (the "July Meeting"), the Board Members, including the Independent
Board Members, unanimously approved new Investment Management Agreements (the
"New Investment Management Agreements") with NAM on behalf of each Fund to take
effect immediately after the Transaction or shareholder approval of the new
advisory contracts, whichever is later. The 1940 Act also requires that each New
Investment Management Agreement be approved by the respective Fund's
shareholders in order for it to become effective. Accordingly, to ensure
continuity of advisory services, the Board Members, including the Independent
Board Members, unanimously approved Interim Investment Management Agreements to
take effect upon the closing of the Transaction if shareholders have not yet
approved the New Investment Management Agreements.
Because the information provided and considerations made at the annual review
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements, the Board considered the foregoing as part of its
deliberations of the New Investment Management Agreements. Accordingly, as
indicated, the discussions immediately below outline the materials and
information presented to the Board in connection with the Board's prior annual
review and the analysis undertaken and the conclusions reached by Board Members
when determining to continue the Original Investment Management Agreements.
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by NAM and the performance of the Funds. At
each of its quarterly meetings, the Board reviewed investment performance and
various matters relating to the operations of the Funds and other Nuveen funds,
including the compliance program, shareholder services, valuation, custody,
distribution and other information relating to the nature, extent and quality of
services provided by NAM. Between the regularly scheduled quarterly meetings,
the Board Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
o the nature, extent and quality of services provided by NAM;
o the organization and business operations of NAM, including the
responsibilities of various departments and key personnel;
106
o each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to customized benchmarks;
o the profitability of Nuveen and certain industry profitability analyses
for unaffiliated advisers;
o the expenses of Nuveen in providing the various services;
o the advisory fees and total expense ratios of each Fund, including
comparisons of such fees and expenses with those of comparable,
unaffiliated funds based on information and data provided by an
independent third party (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") of the
respective Fund (as applicable);
o the advisory fees NAM assesses to other types of investment products or
clients;
o the soft dollar practices of NAM, if any; and
o from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. Prior to and after the presentations and reviewing the written
materials, the Independent Board Members met privately with their legal counsel
to review the Board's duties in reviewing advisory contracts and considering the
renewal of the advisory contracts. The Independent Board Members, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and Securities and Exchange Commission ("SEC") directives relating to
the renewal of advisory contracts. As outlined in more detail below, the Board
Members considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by NAM; (b) the investment performance of the
Fund and NAM; (c) the costs of the services to be provided and profits to be
realized by Nuveen and its affiliates; (d) the extent to which economies of
scale would be realized; and (e) whether fee levels reflect those economies of
scale for the benefit of the Fund's investors. In addition, as noted, the Board
Members met regularly throughout the year to oversee the Funds. In evaluating
the Original Investment Management Agreements, the Board Members also relied
upon their knowledge of NAM, its services and the Funds resulting from their
meetings and other interactions throughout the year. It is with this background
that the Board Members considered each Original Investment Management Agreement.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements, the
Board Members considered the nature, extent and quality of NAM's services. The
Board Members reviewed materials outlining, among other things, Nuveen's
organization and business; the types of services that NAM or its affiliates
provide and are expected to provide to the Funds; the performance record of the
applicable Fund (as described in further detail below); and, any initiatives
Nuveen had taken for the municipal fund product line. As noted, at the annual
review, the Board Members were already familiar with the organization,
operations and personnel of NAM due to the Board Members' experience in
governing the respective Funds and working with NAM on matters relating to the
Funds. With respect to personnel, the Board Members recognized NAM's investment
in additional qualified personnel throughout the various groups in the
organization and recommended to NAM that it continue to review staffing needs as
necessary. In addition, the Board Members reviewed materials describing the
current status and, in particular, the developments in 2006 with respect to
NAM's investment process, investment strategies (including additional tools used
in executing such strategies), personnel (including portfolio management and
research teams), trading process, hedging activities, risk management operations
(e.g., reviewing credit quality, duration limits, and derivatives use, as
applicable), and investment operations (such as enhancements to trading
procedures, pricing procedures, and client services). The Board Members
recognized NAM's investment of resources and efforts to continue to enhance and
refine its investment process.
107
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
o product management;
o fund administration;
o oversight by shareholder services and other fund service providers;
o administration of Board relations;
o regulatory and portfolio compliance; and
o legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, Nuveen's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of Nuveen's compliance team. The Board Members
further noted Nuveen's negotiations with other service providers and the
corresponding reduction in certain service providers' fees at the May Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include:
o maintaining shareholder communications;
o providing advertising for the Nuveen closed-end funds;
o maintaining its closed-end fund website;
o maintaining continual contact with financial advisers;
o providing educational symposia;
o conducting research with investors and financial analysis regarding
closed-end funds; and
o evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through the
issuance of preferred shares ("Preferred Shares"), the Board Members noted
Nuveen's continued support for the holders of Preferred Shares by, among other
things:
o maintaining an in-house trading desk;
o maintaining a product manager for the Preferred Shares;
o developing distribution for Preferred Shares with new market participants;
o maintaining an orderly auction process;
o managing leverage and risk management of leverage; and
o maintaining systems necessary to test compliance with rating agency
criteria.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the respective
Funds under the Original Investment Management Agreements were satisfactory.
108
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
At the May Meeting, the Board considered the investment performance for each
Fund, including the Fund's historic performance as well as its performance
compared to funds with similar investment objectives (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's portfolio level
performance (which does not reflect fund level fees and expenses, and leverage)
against customized benchmarks, described in further detail below.
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state-specific municipal funds, the Board Members also
recognized that certain funds do not have a corresponding state-specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. With respect to municipal
closed-end funds, funds that do not have corresponding state-specific
Performance Peer Groups are from states other than New York, California,
Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds
based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be
so small or the Nuveen funds may dominate the category to such an extent that
performance information for such funds was also compared to the more general
category for all states (other than New York and California).
The Board Members reviewed performance information including, among other
things, total return information compared with the Fund's Performance Peer Group
for the one-, three- and five-year periods (as applicable) ending December 31,
2006. The Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses, and leverage) compared to
customized portfolio level benchmarks for the one- and three-year periods ending
December 31, 2006 (as applicable). The analysis was used to assess the efficacy
of investment decisions against appropriate measures of risk and total return,
within specific market segments. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
Based on their review, the Board Members determined that each Fund's investment
performance over time had been satisfactory, subject to the following. With
respect to various municipal closed-end funds, the Board Members noted relative
total return underperformance in recent years compared to peers. The Board
Members reviewed materials and discussed with NAM the factors contributing to
the shift in performance including, among other things, the degree of risk
undertaken by peers compared to the municipal closed-end funds (such as through
the increased use of leverage or taking concentrated positions in high risk
credits). In addition, the Board Members also considered a fund's dividend
performance and the extent of any secondary market discounts. The Board Members
noted NAM's efforts to evaluate the factors affecting performance and determine
whether modification to a fund's investment strategy is necessary or
appropriate, and concluded that they were satisfied with the steps being taken.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
During the annual review, in evaluating the management fees and expenses
of a Fund, the Board reviewed, among other things, the Fund's advisory
fees (net and gross management fees) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
comparisons to the gross management fees (before waivers), net management
fees (after waivers) and total expense ratios (before and after waivers)
of comparable funds in the Peer Universe and the Peer Group. In reviewing
the fee schedule for a Fund, the Board Members considered the fund-level
and complex-wide breakpoint schedules (described in further detail below)
and any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). The Board Members
further reviewed data regarding the construction of Peer Groups as well as
the methods of measurement for the fee and expense analysis and the
performance analysis. In certain cases, due to the small number of peers
in the Peer Universe, the Peer Universe and Peer Group had significant
overlap or even consisted entirely of the same unaffiliated funds. In
reviewing the comparisons of fee and expense information, the Board
Members recognized that in certain cases, the fund size relative to peers,
the small size and odd composition of the Peer Group (including
differences
109
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
in objectives and strategies), expense anomalies, timing of information
used or other factors impacting the comparisons thereby limited some of
the usefulness of the comparative data. The Board Members also considered
the differences in the use of leverage. Based on their review of the fee
and expense information provided, the Board Members determined that each
Fund's net total expense ratio was within an acceptable range compared to
peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
At the annual review, the Board Members further reviewed data comparing
the advisory fees of NAM with fees NAM charges to other clients. With
respect to municipal funds, such clients include NAM's municipal
separately managed accounts. In general, the advisory fees charged for
separate accounts are somewhat lower than the advisory fees assessed to
the Funds. The Board Members considered the differences in the product
types, including, but not limited to, the services provided, the structure
and operations, product distribution and costs thereof, portfolio
investment policies, investor profiles, account sizes and regulatory
requirements. The Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. As described in further
detail above, such additional services include, but are not limited to:
product management, fund administration, oversight of third party service
providers, administration of Board relations, and legal support. The Board
Members noted that the Funds operate in a highly regulated industry
requiring extensive compliance functions compared to other investment
products. Given the inherent differences in the products, particularly the
extensive services provided to the Funds, the Board Members believe such
facts justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Board Members also considered
the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. At the annual review, the Board Members reviewed the
revenues and expenses of Nuveen's advisory activities for the last three
years, the allocation methodology used in preparing the profitability data
as well as the 2006 Annual Report for Nuveen. The Board Members noted this
information supplemented the profitability information requested and
received during the year to help keep them apprised of developments
affecting profitability (such as changes in fee waivers and expense
reimbursement commitments). In this regard, the Board Members noted the
enhanced dialogue and information regarding profitability with NAM during
the year, including more frequent meetings and updates from Nuveen's
corporate finance group. The Board Members also reviewed data comparing
Nuveen's profitability with other fund sponsors prepared by three
independent third party service providers as well as comparisons of the
revenues, expenses and profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective
nature of determining profitability which may be affected by numerous
factors, including the allocation of expenses. Further, the Board Members
recognized the difficulties in making comparisons as the profitability of
other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may
not be representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
and assumptions for allocating expenses across product lines to determine
profitability. Last year, the Board Members also designated an Independent Board
Member as a point person for the Board to review the methodology determinations
during the year and any refinements thereto, which relevant information produced
from such process was reported to the full Board. In reviewing profitability,
the Board Members recognized Nuveen's increased investment in its fund business.
Based on its review, the Board Members concluded that Nuveen's level of
profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to NAM by the Funds as well as any indirect
benefits (such as soft dollar arrangements, if any) NAM and its affiliates
receive, or are expected to receive, that are directly attributable to the
management of the
110
Funds, if any. See Section E below for additional information on indirect
benefits NAM may receive as a result of its relationship with the Funds. Based
on their review of the overall fee arrangements of each Fund, the Board Members
determined that the advisory fees and expenses of the Funds were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D - "Approval of the New Investment Management Agreements -
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for
information regarding subsequent modifications to the complex-wide fee.
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. With respect to closed-end funds, the Board Members considered the
revenues received by affiliates of NAM for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Board Members considered whether NAM received any
benefits from soft dollar arrangements whereby a portion of the commissions paid
by a Fund for brokerage may be used to acquire research that may be useful to
NAM in managing the assets of the Funds and other clients. With respect to NAM,
the Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Board Members concluded that any indirect benefits
received by NAM as a result of its relationship with the Funds were reasonable
and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the renewal of the Original
Investment Management Agreements be approved.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements. Accordingly, at the July
Meeting, the Board of each Fund, including the Independent Board Members,
unanimously approved the New Investment Management Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members
111
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
updated with developments regarding the Transaction. On June 15, 2007, the ad
hoc committee discussed with representatives of NAM the Transaction and
modifications to the complex-wide fee schedule that would generate additional
fee savings at specified levels of complex-wide asset growth. Following the
foregoing meetings and several subsequent telephonic conferences among
Independent Board Members and independent counsel, and between Independent Board
Members and representatives of Nuveen, the Board met on June 18, 2007 to further
discuss the proposed Transaction. Immediately prior to and then again during the
June 18, 2007 meeting, the Independent Board Members met privately with their
independent legal counsel. At that meeting, the Board met with representatives
of MDP, of Goldman Sachs, Nuveen's financial adviser in the Transaction, and of
the Nuveen Board to discuss, among other things, the history and structure of
MDP, the terms of the proposed Transaction (including the financing terms), and
MDP's general plans and intentions with respect to Nuveen (including with
respect to management, employees, and future growth prospects). On July 9, 2007,
the Board also met to be updated on the Transaction as part of a special
telephonic Board meeting. The Board Members were further updated at a special
in-person Board meeting held on July 19, 2007 (one Independent Board Member
participated telephonically). Subsequently, on July 27, 2007, the ad hoc
committee held a telephonic conference with representatives of Nuveen and MDP to
further discuss, among other things, the Transaction, the financing of the
Transaction, retention and incentive plans for key employees, the effect of
regulatory restrictions on transactions with affiliates after the Transaction,
and current volatile market conditions and their impact on the Transaction.
In connection with their review of the New Investment Management Agreements, the
Independent Board Members, through their independent legal counsel, also
requested in writing and received additional information regarding the proposed
Transaction and its impact on the provision of services by NAM and its
affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
o the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
o the strategic plan for Nuveen following the Transaction;
o the governance structure for Nuveen following the Transaction;
o any anticipated changes in the operations of the Nuveen funds following
the Transaction, including changes to NAM's and Nuveen's day-to-day
management, infrastructure and ability to provide advisory, distribution
or other applicable services to the Funds;
o any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
o any anticipated effect on each Fund's expense ratio (including advisory
fees) following the Transaction;
o any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
o any legal issues for the Funds as a result of the Transaction;
o the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and
policies affecting the Funds, and cost-cutting efforts, if any, that may
impact such services or policies;
o any conflicts of interest that may arise for Nuveen or MDP with respect to
the Funds;
o the costs associated with obtaining necessary shareholder approvals and
who would bear those costs; and
o from legal counsel, a memorandum describing the applicable laws,
regulations and duties in approving advisory contracts, including, in
particular, with respect to a change of control.
112
Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels reflect those economies of scale for the benefit of investors. As
noted above, the Board Members had completed their annual review of the
respective Original Investment Management Agreements at the May Meeting and many
of the factors considered at the annual review were applicable to their
evaluation of the New Investment Management Agreements. Accordingly, in
evaluating the New Investment Management Agreements, the Board Members relied
upon their knowledge and experience with NAM and considered the information
received and their evaluations and conclusions drawn at the annual review. While
the Board reviewed many Nuveen funds at the July Meeting, the Independent Board
Members evaluated all information available to them on a fund-by-fund basis, and
their determinations were made separately in respect of each Fund.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by NAM under the New Investment Management Agreements, the Independent
Board Members considered, among other things, the expected impact, if any, of
the Transaction on the operations, facilities, organization and personnel of
NAM; the potential implications of regulatory restrictions on the Funds
following the Transaction; the ability of NAM and its affiliates to perform
their duties after the Transaction; and any anticipated changes to the current
investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). The Board considered that the services to be provided and the
standard of care under the New Investment Management Agreements are the same as
the Original Investment Management Agreements. The Board Members further noted
that key personnel who have responsibility for the Funds in each area, including
portfolio management, investment oversight, fund management, fund operations,
product management, legal/compliance and board support functions, are expected
to be the same following the Transaction. The Board Members considered and are
familiar with the qualifications, skills and experience of such personnel. The
Board also considered certain information regarding anticipated retention or
incentive plans designed to retain key personnel. Further, the Board Members
noted that no changes to Nuveen's infrastructure or operations as a result of
the Transaction were anticipated other than potential enhancements as a result
of an expected increase in the level of investment in such infrastructure and
personnel. The Board noted MDP's representations that it does not plan to have a
direct role in the management of Nuveen, appointing new management personnel, or
directly impacting individual staffing decisions. The Board Members also noted
that there were not any planned "cost cutting" measures that could be expected
to reduce the nature, extent or quality of services. After consideration of the
foregoing, the Board Members concluded that no diminution in the nature, quality
and extent of services provided to the Funds and their shareholders is expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds' ability to invest in securities of
issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if
not bought directly from MDP or Merrill
113
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
Lynch as principal. They also recognized that various regulations may require
the Nuveen funds to apply investment limitations on a combined basis with
affiliates of Merrill Lynch. The Board Members considered information provided
by NAM regarding the potential impact on the Nuveen funds' operations as a
result of these regulatory restrictions. The Board Members considered, in
particular, the Nuveen funds that may be impacted most by the restricted access
to Merrill Lynch, including: municipal funds (particularly certain
state-specific funds), senior loan funds, taxable fixed income funds, preferred
security funds and funds that heavily use derivatives. The Board Members
considered such funds' historic use of Merrill Lynch as principal in their
transactions and information provided by NAM regarding the expected impact
resulting from Merrill Lynch's affiliation with Nuveen and available measures
that could be taken to minimize such impact. NAM informed the Board Members
that, although difficult to determine with certainty, its management did not
believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would
have a material adverse effect on any Nuveen fund's ability to pursue its
investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by NAM and
that the expected nature, quality and extent of such services supported approval
of the New Investment Management Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined that Fund performance was
satisfactory or better, subject to the following. With respect to certain
municipal closed-end funds with relative short-term underperformance, the Board
Members concluded NAM was taking steps to evaluate the factors affecting
performance and those steps would continue following the Transaction. Further,
the investment policies and strategies were not expected to change as a result
of the Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements.
C. FEES, EXPENSES AND PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the costs of services
to be provided by NAM under the New Investment Management Agreements and the
profitability of Nuveen for its advisory activities, the Board Members
considered their prior conclusions at the annual review and whether the
management fees or other expenses would change as a result of the Transaction.
As described above, the investment management fee is composed of two
components--a fund-level component and complex-wide level component. The fee
schedule under the New Investment Management Agreements to be paid to NAM is
identical to that under the Original Investment Management Agreements, including
the modified complex-wide fee schedule. As noted above, the Board recently
approved a modified complex-wide fee schedule that would generate additional fee
savings on complex-wide assets above $80 billion. The modifications have an
effective date of August 20, 2007 and are part of the Original Investment
Management Agreements. Accordingly, the terms of the complex-wide component
under the New Investment Management Agreements are the same as under the
Original Investment Management Agreements. The Board Members also noted that
Nuveen has committed for a period of two years from the
114
date of closing of the Transaction that it will not increase gross management
fees for any Nuveen fund and will not reduce voluntary expense reimbursement
levels for any Nuveen fund from their currently scheduled prospective levels.
Based on the information provided, the Board Members did not expect that overall
Fund expenses would increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability, at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements. Accordingly, the Board Members believe
that the breakpoint schedules and revised complex-wide fee schedule are
appropriate and desirable in ensuring that shareholders participate in the
benefits derived from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that NAM may receive as a result of its relationship with the Funds, as
described above. As the policies and operations of Nuveen are not anticipated to
change significantly after the Transaction, such indirect benefits should remain
after the Transaction. The Board Members further considered any additional
indirect benefits to be received by NAM or its affiliates after the Transaction.
The Board Members noted that other than benefits from its ownership interest in
Nuveen and indirect benefits from fee revenues paid by the Funds under the
management agreements and other Board-approved relationships, it was currently
not expected that MDP or its affiliates would derive any benefit from the Funds
as a result of the Transaction or transact any business with or on behalf of the
Funds (other than perhaps potential Fund acquisitions, in secondary market
transactions, of securities issued by MDP portfolio companies); or that Merrill
Lynch or its affiliates would derive any benefits from the Funds as a result of
the Transaction (noting that, indeed, Merrill Lynch would stand to experience
the discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
115
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
o Nuveen would rely on the provisions of Section 15(f) of the 1940 Act.
Section 15(f) provides, in substance, that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of
its affiliated persons may receive any amount or benefit in connection
with the sale so long as (i) during the three-year period following the
consummation of a transaction, at least 75% of the investment company's
board of directors must not be "interested persons" (as defined in the
1940 Act) of the investment adviser or predecessor adviser and (ii) an
"unfair burden" (as defined in the 1940 Act, including any interpretations
or no-action letters of the SEC) must not be imposed on the investment
company as a result of the transaction relating to the sale of such
interest, or any express or implied terms, conditions or understanding
applicable thereto. In this regard, to help ensure that an unfair burden
is not imposed on the Nuveen funds, Nuveen has committed for a period of
two years from the date of the closing of the Transaction (i) not to
increase gross management fees for any Nuveen fund; (ii) not to reduce
voluntary expense reimbursement levels for any Nuveen fund from their
currently scheduled prospective levels during that period; (iii) that no
Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use
Merrill Lynch as a broker with respect to portfolio transactions done on
an agency basis, except as may be approved in the future by the Compliance
Committee of the Board; and (iv) that NAM shall not cause the Funds and
other municipal funds that NAM manages, as a whole, to enter into
portfolio transactions with or through the other minority owners of
Nuveen, on either a principal or an agency basis, to a significantly
greater extent than both what one would expect an investment team to use
such firm in the normal course of business, and what NAM has historically
done, without prior Board or Compliance Committee approval (excluding the
impact of proportionally increasing the use of such other "minority
owners" to fill the void necessitated by not being able to use Merrill
Lynch).
o The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements (except for any
costs attributed to seeking shareholder approvals of Fund specific matters
unrelated to the Transaction, such as approval of Board Members, in which
case a portion of such costs will be borne by the applicable Funds).
o The reputation, financial strength and resources of MDP.
o The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
o The benefits to the Nuveen funds as a result of the Transaction including:
(i) as a private company, Nuveen may have more flexibility in making
additional investments in its business; (ii) as a private company, Nuveen
may be better able to structure compensation packages to attract and
retain talented personnel; (iii) as certain of Nuveen's distribution
partners are expected to be equity or debt investors in Nuveen, Nuveen may
be able to take advantage of new or enhanced distribution arrangements
with such partners; and (iv) MDP's experience, capabilities and resources
that may help Nuveen identify and acquire investment teams or firms and
finance such acquisitions.
o The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums
and discounts after the announcement of the Transaction, taking into
consideration recent volatile market conditions and steps or initiatives
considered or undertaken by NAM to address discount levels.
116
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements are fair and reasonable, that the fees therein are reasonable in
light of the services to be provided to each Fund and that the New Investment
Management Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements. If necessary to assure continuity of advisory services,
the Interim Investment Management Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements. The terms of each Interim Investment Management Agreement
are substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement, respectively,
except for certain term and escrow provisions. In light of the foregoing, the
Board Members, including the Independent Board Members, unanimously determined
that the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement are at least equivalent to
the scope and quality of services provided under the applicable Original
Investment Management Agreement.
117
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Reinvest Automatically
EASILY and CONVENIENTLY
--------------------------------------------------------------------------------
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of 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. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
118
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
119
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Glossary of
TERMS USED in this REPORT
--------------------------------------------------------------------------------
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated
by subtracting the liabilities of the Fund (including any MuniPreferred
shares issued in order to leverage the Fund) from its total assets and
then dividing the remainder by the number of shares outstanding. Fund NAVs
are calculated at the end of each business day.
o 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.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
126
| Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
twelve-month period ended June 30, 2007, and (iii) a description of the policies
and procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the Exchange the annual CEO
certification as required by Section 303A.12(a) of the NYSE Listed Company
Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
INVESTMENT POLICY CHANGES
In May 2007, the Funds' Board of Directors/Trustees voted to permit the Funds'
to make loans from Fund assets to certain bond issuers. The amounts of these
loans are subject to strict limits. This policy is designed to enhance the
Funds' ability to meet their Funds' investment objectives by providing for
increased portfolio management flexibility, greater diversification potential,
and opportunities for increased capital appreciation over time.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carole E. Stone
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common stock in the future at
such times and in such amounts as is deemed advisable. During the period covered
by this report, NQP and NPY repurchased 120,900, and 142,000 common shares,
respectively. Any future repurchases will be reported to shareholders in the
next annual or semi-annual report.
127
Nuveen Investments:
-------------------
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $170 billion in assets, as of September 30, 2007, 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
six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader
in value-style equities; Rittenhouse, a leader in growth-style equities;
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios; Santa Barbara, a leader in growth equities; and
Tradewinds, a leader in global equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest. Be sure to obtain a
prospectus, where applicable. Investors should consider the investment objective
and policies, risk considerations, charges and expenses of the Fund carefully
before investing. The prospectus contains this and other information relevant to
an investment in the Fund. For a prospectus, please contact your securities
representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606.
Please read the prospectus carefully before you invest or send money.
Learn more about Nuveen Funds at: www.nuveen.com/etf
Share prices
Fund details
Daily financial news
Investor education
Interactive planning tools
ESA-B-1007D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: January 7, 2008
-------------------------------------------------------------------
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: January 7, 2008
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 7, 2008
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.