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
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(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: June 30
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Date of reporting period: December 31
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT December 31, 2003
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND
NQJ
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND
NNJ
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NVY
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
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Registering is easy and only takes a few minutes (see instructions at right).
--------------------------------------------------------------------------------
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WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
--------------------------------------------------------------------------------
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM and follow the simple instructions, using
the address sheet that accompanied this report as a guide.
2 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen and follow the simple instructions.
3 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
PHOTO OF: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND
CAN BE IMPORTANT BUILDING BLOCKS IN A PORTFOLIO DESIGNED TO PERFORM WELL THROUGH
A VARIETY OF MARKET CONDITIONS."
Dear
SHAREHOLDER
I am very pleased to report that for the period ended December 31, 2003, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
Your Fund is managed with a value investing strategy that puts an emphasis on
finding securities that we think are undervalued or underrated. We believe there
are always some municipal bonds that the market is not properly valuing, and
that by using a consistent, research-oriented management approach we have the
opportunity to find them for your Fund.
In the current environment, many have begun to wonder whether interest rates
will soon start to rise, and whether that possibility should cause them to
adjust their holdings of fixed-income investments. We believe that by
constructing a carefully balanced portfolio with the help of a trusted
investment professional you may be able to reduce your overall investment risk
and give yourself a better chance to meet your financial goals. We think that
municipal bond investments like your Nuveen Fund can be important building
blocks in a portfolio designed to perform well through a variety of market
conditions.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
February 13, 2004
1
Nuveen New Jersey and Pennsylvania Municipal Closed-End Exchange-Traded Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan discusses national and state economic and market
conditions, key investment strategies, and the recent performance of these eight
Nuveen Funds. Paul, who has 12 years of investment experience, assumed portfolio
management responsibility for these New Jersey and Pennsylvania Funds in January
2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
12-MONTHS ENDED DECEMBER 31, 2003?
Over the past 12 months, the two greatest influences on the general economy and
the municipal market continued to be historically low interest rates and the
overall pace of economic improvement. Since its last credit easing in June 2003,
the Federal Reserve has maintained the fed funds rate at 1.0%, the lowest level
since 1958. This accommodative monetary policy, coupled with Washington's tax
relief measures and increased spending for defense and national security, helped
to fuel a jump of 8.2% (annualized) in the third-quarter gross domestic product
(GDP), up from 3.3% in the second quarter. Throughout 2003, inflation remained
under control, with the 1.1% annual change in the core rate representing the
slowest pace in more than 40 years. The recovering economy also generated some
improvement in the labor markets, although progress remained halting, making
2003 only the second non-recession year on record in which the economy posted a
net loss of jobs.
In combination, the pace of recovery over the majority of this reporting period,
low interest rates, and lack of inflationary pressures helped many municipal
bonds perform well. During the summer of 2003, however, stronger-than-expected
economic data precipitated a spike in bond yields and a corresponding drop in
bond prices that impacted results across all fixed-income markets. Despite the
increased volatility in June and July, the municipal market enjoyed generally
solid performance during the 12-month period ended December 31, 2003.
In 2003, municipal supply nationally broke the record set just last year, with
$382.7 billion in new bonds, up 7% over 2002. However, the issuance of new paper
slowed somewhat in the last half of the year, with national volume for
July-December 2003 down $13.7 billion, or 7%, from the preceding six months.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
Benefiting from the solid base provided by the state's diverse economy, central
location, and high income levels, New Jersey's economy performed better than the
nation as a whole in recent months. In addition to increased employment in the
financial services and pharmaceutical industries, the state added jobs in
construction, retail, education, and healthcare. Over the 12 months ended
December 2003, unemployment in New Jersey fell from 6.0% to 5.3%, its lowest
level in two years, compared with the current national average of 5.7%. This
good news was offset to some degree by New Jersey's higher debt levels, which
have risen 60% since 1996, and increased spending pressures at the state level,
especially for Medicaid and pensions. On July 1, 2003, New Jersey approved a
$24.1 billion fiscal 2004 budget, eliminating the $4 billion deficit through the
use of higher cigarette, hotel, and casino taxes, reduced
2
property tax rebates, and additional borrowing against tobacco settlement
proceeds. In 2003, New Jersey issued $16.6 billion in new municipal debt, up 49%
over 2002. As of December 2003, Moody's rated New Jersey's general obligation
debt Aa2 with a negative outlook, while Standard & Poor's maintained its rating
of AA with a stable outlook.
Led by strength in the services sector and a decrease in manufacturing job
losses, Pennsylvania's diverse economy continued to improve over the past 12
months. Despite its still-substantial exposure to declining old-line
manufacturing industries, the commonwealth demonstrated modest economic
expansion, including the creation of new jobs in pharmaceuticals, software,
tourism, and business services. In December 2003, Pennsylvania's unemployment
rate fell to 5.1%, its lowest level in 26 months, down from 6.1% a year earlier.
Although conservative financial practices and low debt burdens helped the
commonwealth weather the budget problems of the past few years, Pennsylvania's
aging infrastructure has resulted in increasing budgetary pressures, and the
commonwealth has undertaken aggressive development efforts in an attempt to spur
growth. Pennsylvania's $21.4 billion fiscal 2004 budget was balanced using
measures including higher personal income and cigarette taxes. For the year,
Pennsylvania issued $15.3 billion of municipal debt, a 5% increase over 2002.
Both Moody's and S&P reaffirmed the commonwealth's Aa2/AA general obligation
rating and stable outlook in 2003. In October, however, the rating agencies
moved to downgrade the credit rating of Pittsburgh, Pennsylvania's second
largest city, to Baa1/BB from A3/A- based on the city's continuing budget
shortfalls.
HOW DID THESE NUVEEN FUNDS PERFORM OVER THIS REPORTING PERIOD?
Individual results for these Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
12/31/03 EQUIVALENT3 12/31/03 12/31/03 12/31/03
----------------------------------------------------------------------
NQJ 6.17% 9.14% 7.84% 5.31% 8.61%
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NNJ 5.78% 8.56% 7.11% 5.31% 8.61%
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NXJ 6.19% 9.17% 9.06% 5.31% 8.61%
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NUJ 6.10% 9.04% 8.80% 5.31% 8.61%
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NQP 6.11% 8.73% 7.61% 5.31% 8.37%
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NPY 6.09% 8.70% 8.47% 5.31% 8.37%
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NXM 5.96% 8.51% 9.87% 5.31% 8.37%
----------------------------------------------------------------------
NVY 5.86% 8.37% 8.42% 5.31% 8.37%
----------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended December 31, 2003, all eight of the Funds in this report
outperformed the unleveraged Lehman Brothers Municipal Bond Index. The use of
leverage was one of the factors that influenced the performance of the Nuveen
Funds relative to the Lehman index over the past 12 months. While leveraging can
add volatility, this strategy can also provide opportunities for additional
income for common shareholders, especially during periods of low short-term
interest rates. For municipal bond funds, as with any fixed-income investment,
income is an important component of total return.
In addition to leverage, factors such as call exposure, portfolio trading
activity, and the price movement of specific sectors and holdings also had an
impact on the Funds' relative performances during this period. For example, NXJ
and NUJ benefited from several advance refundings as well as higher allocations
of airline-backed bonds, which rebounded strongly in the last part of 2003 due
to the airline industry's cost and capacity reductions and restructuring.
1 The total annual returns on common share net asset value (NAV) for these
Nuveen Funds are compared with the total annual return of the Lehman Brothers
Municipal Bond Index, an unleveraged, unmanaged national index comprising a
broad range of investment-grade municipal bonds. Results for the Lehman index
do not reflect any expenses.
2 The total returns of the four Nuveen New Jersey Funds are compared with the
average annualized return of the 13 funds in the Lipper New Jersey Municipal
Debt Funds category, while the total returns of the four Nuveen Pennsylvania
Funds are compared with the average annualized return of the 12 funds in the
Lipper Pennsylvania Municipal Debt Funds category. Fund and Lipper returns
assume reinvestment of dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income taxable at a maximum rate of 15%, the taxable-equivalent yield is
lower. The taxable-equivalent yield is calculated using the current yield and
a federal income tax rate of 28% plus the applicable state income tax rate.
The combined federal and state tax rates used in this report are as follows:
New Jersey 32.5% and Pennsylvania 30%. The yields shown highlight the added
value of owning shares that are exempt from state as well as federal income
taxes.
3
NQJ's and NNJ's performances were negatively affected by their relatively short
average durations.4 Generally, in a falling interest rate environment such as
the one we experienced over much of 2003, longer duration investments would be
expected to perform better than shorter duration investments.
Among the Pennsylvania Funds, NPY, NXM, and NVY were helped by their holdings of
several corporate-backed industrial development revenue (IDR) bonds that
performed well over the past year. NQP's ability to gain the full benefit of
these types of price increases was lessened to a degree by the need to invest
called bond proceeds at today's generally lower rates.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels, the
dividend-payment capabilities of these Funds benefited from their use of
leverage. The extent of this benefit is tied in part to the short-term rates the
Funds pay their MuniPreferred(R) shareholders. Low short-term rates can enable
the Funds to reduce the amount of income paid to MuniPreferred shareholders,
which can potentially leave more earnings to support common share dividends.
During the 12 months ended December 2003, continued low short-term rates enabled
us to implement three dividend increases in NQJ and NXJ, two in NXM, and one
each in NNJ and NPY. Leverage also helped to support the dividend of NQP,
which--as of December 31, 2003--had offered shareholders 43 consecutive months
of stable, attractive dividends, while NUJ and NVY, which were introduced in
March 2002, had provided 20 consecutive months of steady dividends.
Each Fund seeks to pay a stable dividend at a rate that reflects the Fund's past
results and projected future performance. The 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 the 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 net asset value (NAV).
Conversely, if the Fund has cumulatively paid dividends in excess of its
earnings, the excess constitutes negative UNII that is likewise reflected in the
Fund's NAV. Each Fund will, over time, pay all of its net investment income as
dividends to shareholders. As of December 31, 2003, all of the Funds in this
report had positive UNII with the exception of NVY which had negative UNII.
Over the 12-month period ended December 31, 2003, the share prices and NAVs of
all of these Funds performed well, ending the period higher than they had been
at the beginning. As of December 31, 2003, NQJ, NNJ, and all four of the
Pennsylvania Funds had moved to trading at premiums to their common share NAVs,
while the discounts on NXJ and NUJ had narrowed (see charts on individual
Performance Overview pages).
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12-MONTHS ENDED
DECEMBER 31, 2003?
For this 12-month reporting period, we continued to place strong emphasis on
keeping the Funds fully invested and well diversified, improving call
protection, and enhancing dividend-payment capabilities. A major focus continued
to be the management of the Funds' durations as a way of mitigating interest
rate risk and producing potentially more consistent returns over time. Interest
rate risk is the risk that the value of a Fund's portfolio will decline when
market interest rates rise (since bond prices move in the opposite direction of
interest rates). The longer the duration of a Fund's portfolio, the greater its
interest rate risk. In general, our efforts focused on moderating risk by
shortening the durations of the four newer New Jersey and Pennsylvania Funds,
while slightly extending the durations of the older Funds
4 Duration is a measure of a fund's NAV volatility in reaction to interest rate
movements. Fund duration, also known as leverage-adjusted duration, takes into
account the leveraging process for a fund and therefore is generally longer
than the duration of the actual portfolio of individual bonds that make up the
fund. References to duration in this commentary are intended to indicate fund
duration unless otherwise noted.
4
(with the exception of NQP) as we reinvested proceeds from bond calls. In the
older NQP, we also worked to reduce the duration, which had lengthened
considerably as the Fund moved through the period of heavier bond calls
associated with its 10-year anniversary in 2001.
The majority of our purchase activity over the past year focused on value
opportunities in the long intermediate part of the yield curve (i.e., bonds that
mature in 15 to 20 years). In many cases, bonds in this part of the curve
offered yields similar to those of longer-term bonds but had less inherent
interest rate risk.
Although the heavy volume of municipal issuance during 2003 provided selected
opportunities to make trades that would benefit the Funds, in recent months we
have seen supply soften. This was especially true in New Jersey, where issuance
during July-December 2003 declined 20% from the levels of the previous six
months. However, it was equally challenging to find issues that would help
diversify the Funds and add value in the Pennsylvania market. Overall,
therefore, the turnover level in all of these Funds was reasonably low. In
general, as opportunities arose in the market, our focus was on purchasing
higher quality issues, particularly in the essential services and general
obligation categories, reflecting the increased issuance in these sectors. We
also looked for purchase opportunities in the secondary market to enhance the
Funds' diversification.
As of December 31, 2003, each of the New Jersey Funds held less than 5% of its
portfolio in bonds backed by revenues from the 1998 master tobacco settlement
agreement. In the earlier part of the 12-month period, the prices of these bonds
weakened as the result of several high-profile events, including lawsuits
involving the major tobacco companies. In August 2003, S&P downgraded the credit
rating on New Jersey tobacco bonds to BBB from A-, which resulted in a slight
increase in these Funds' allocations to the BBB credit quality category. Over
the last four months of 2003, however, in the wake of legal developments more
favorable to the tobacco companies, these bonds recovered quite well.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
DECEMBER 31, 2003?
We believe that, given the current geopolitical and economic climate,
maintaining strong credit quality remains a vital requirement. As of December
31, 2003, these Nuveen Funds offered excellent credit quality, with allocations
of bonds rated AAA/U.S. guaranteed and AA ranging from 64% to 90%. This
represents a steady or growing allocation in the AAA/U.S. guaranteed category
across all of the Funds over the 12 months.
Looking at bond calls, these Funds generally offer good levels of call
protection over the next three years, with potential call exposure (as of
December 31, 2003) ranging from 1% in NVY to 18% in NNJ during 2004-2006. In
coming months, the number of actual bond calls in all of these Funds will depend
largely on market interest rates.
In general, we believe that these Nuveen Funds can continue to serve as
attractive sources of tax-free income, while simultaneously offering the
potential for portfolio diversification. In our opinion, the Funds represent a
quality component of a well-balanced core investment portfolio that can continue
to benefit shareholders over time.
5
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2003
NQJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 74%
AA 8%
A 5%
BBB 10%
NR 1%
BB or lower 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.94
--------------------------------------------------
Common Share Net Asset Value $15.45
--------------------------------------------------
Premium/(Discount) to NAV 3.17%
--------------------------------------------------
Market Yield 6.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.57%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.14%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $313,787
--------------------------------------------------
Average Effective Maturity (Years) 20.15
--------------------------------------------------
Leverage-Adjusted Duration 8.81
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 14.02% 7.84%
--------------------------------------------------
5-Year 5.36% 6.42%
--------------------------------------------------
10-Year 6.12% 6.28%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Tax Obligation/Limited 20%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Tax Obligation/General 7%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.078
Apr 0.078
May 0.078
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 15.14
15.02
14.75
14.88
15.12
15.48
15.36
15.31
15.46
15.68
15.4
15.14
15.3
15.42
15.21
15.42
15.47
15.52
15.73
15.92
15.91
16.12
16.1
15.94
16
16.15
15.4
15.05
15.1
14.94
14.9
14.87
14.94
15.04
15.08
15.22
15.65
15.47
15.42
15.54
15.78
15.53
15.56
15.55
15.6
15.62
15.54
15.75
12/31/03 15.95
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1999 per share.
6
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Performance
OVERVIEW As of December 31, 2003
NNJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 81%
AA 7%
A 4%
BBB 6%
NR 1%
BB or lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.27
--------------------------------------------------
Common Share Net Asset Value $16.15
--------------------------------------------------
Premium/(Discount) to NAV 0.74%
--------------------------------------------------
Market Yield 5.78%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.03%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.56%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $194,175
--------------------------------------------------
Average Effective Maturity (Years) 15.70
--------------------------------------------------
Leverage-Adjusted Duration 8.21
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 13.68% 7.11%
--------------------------------------------------
5-Year 5.68% 6.87%
--------------------------------------------------
10-Year 7.94% 6.76%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 23%
--------------------------------------------------
Transportation 19%
--------------------------------------------------
U.S. Guaranteed 12%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Education and Civic Organizations 8%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0755
Feb 0.0755
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Jul 0.078
Aug 0.078
Sep 0.078
Oct 0.078
Nov 0.078
Dec 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 15.42
15.2
14.94
15.04
15.1
15.15
15.28
15.23
15.55
15.64
15.6
15.2
15.34
15.34
15.16
15.38
15.52
15.58
15.9
16.03
15.95
16.22
16
16.14
16.2
16.22
15.95
15.36
15.22
15.12
15.15
15.25
15.22
15.4
15.47
15.64
15.97
15.75
15.8
15.95
16.08
16
15.77
15.68
15.65
15.54
15.8
16.05
12/31/03 16.22
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1349 per share.
7
Nuveen New Jersey Dividend Advantage Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NXJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 69%
AA 3%
A 16%
BBB 9%
BB or lower 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.21
--------------------------------------------------
Common Share Net Asset Value $15.28
--------------------------------------------------
Premium/(Discount) to NAV -0.46%
--------------------------------------------------
Market Yield 6.19%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.60%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.17%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $100,116
--------------------------------------------------
Average Effective Maturity (Years) 21.20
--------------------------------------------------
Leverage-Adjusted Duration 9.57
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 14.34% 9.06%
--------------------------------------------------
Since Inception 6.47% 8.43%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Healthcare 20%
--------------------------------------------------
Water and Sewer 17%
--------------------------------------------------
Transportation 16%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Jan 0.072
Feb 0.072
Mar 0.075
Apr 0.075
May 0.075
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 14
13.99
14
14.02
14.13
14.1
14.06
13.95
14.22
14.6
14.43
14.05
14.29
14.43
14.39
14.49
14.5
14.71
14.8
15.19
15.04
15.16
15.12
15.12
15.5
15.3
15.03
14.86
14.44
14.3
14.6
14.05
14.04
14.33
14.6
14.78
14.95
14.78
14.88
15.03
15.06
15.11
14.87
14.78
14.69
14.75
15.1
14.96
12/31/03 15.17
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
8
Nuveen New Jersey Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of December 31, 2003
NUJ
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 61%
AA 3%
A 12%
BBB 20%
NR 1%
BB or lower 3%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.06
--------------------------------------------------
Common Share Net Asset Value $15.30
--------------------------------------------------
Premium/(Discount) to NAV -1.57%
--------------------------------------------------
Market Yield 6.10%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.47%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 9.04%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $68,967
--------------------------------------------------
Average Effective Maturity (Years) 20.85
--------------------------------------------------
Leverage-Adjusted Duration 10.61
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 9.01% 8.80%
--------------------------------------------------
Since Inception 6.54% 10.31%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 18%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Education and Civic Organizations 10%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 14.72
14.25
14.45
14.65
14.66
14.61
14.57
14.78
14.7
14.82
14.5
14.22
14.57
14.88
14.62
14.54
14.78
15
15.04
15.15
15.2
15.29
15.35
15.39
15.75
15.67
15
15.01
15.04
15
14.4
14.69
14.8
14.8
14.57
14.77
15.1
14.97
14.95
15.07
15.3
15.19
15
14.83
14.85
14.89
15.05
15.24
12/31/03 15.25
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 32.5%.
2 The Fund also paid shareholders a capital gains distribution in December 2003
of $0.0541 per share.
9
Nuveen Pennsylvania Investment Quality Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NQP
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 73%
AA 17%
A 6%
BBB 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.68
--------------------------------------------------
Common Share Net Asset Value $15.67
--------------------------------------------------
Premium/(Discount) to NAV 0.06%
--------------------------------------------------
Market Yield 6.11%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.49%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.73%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $255,222
--------------------------------------------------
Average Effective Maturity (Years) 20.04
--------------------------------------------------
Leverage-Adjusted Duration 10.23
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 12.95% 7.61%
--------------------------------------------------
5-Year 3.54% 6.21%
--------------------------------------------------
10-Year 5.28% 5.98%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 27%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Water and Sewer 11%
--------------------------------------------------
Transportation 6%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 14.75
14.54
14.8
14.7
14.81
15.04
14.9
14.9
15.02
15.1
14.91
15.01
15.23
15.24
15.03
15.15
15.24
15.58
15.91
15.96
15.92
16.02
16.01
15.95
16.07
15.87
15.44
14.65
14.55
14.49
14.34
14.2
14.22
14.35
14.55
14.65
15.07
15.06
14.97
15.1
15.35
15.29
15.24
15.37
15.42
15.36
15.45
15.46
12/31/03 15.47
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.0164 per share.
10
Nuveen Pennsylvania Premium Income Municipal Fund 2
Performance
OVERVIEW As of December 31, 2003
NPY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 76%
AA 8%
A 5%
BBB 8%
NR 2%
BB or lower 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.85
--------------------------------------------------
Common Share Net Asset Value $15.53
--------------------------------------------------
Premium/(Discount) to NAV 2.06%
--------------------------------------------------
Market Yield 6.09%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.46%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.70%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $244,664
--------------------------------------------------
Average Effective Maturity (Years) 18.27
--------------------------------------------------
Leverage-Adjusted Duration 9.15
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 17.66% 8.47%
--------------------------------------------------
5-Year 8.87% 6.84%
--------------------------------------------------
10-Year 7.88% 6.65%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Transportation 11%
--------------------------------------------------
Tax Obligation/Limited 9%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 14.34
14.52
14.39
14.83
14.59
14.75
14.56
14.7
14.9
15
15.03
14.74
14.91
14.7
14.88
15.04
15
15.54
15.42
15.9
15.86
16
16.06
16
16.16
15.91
15.5
14.96
14.97
14.77
14.52
14.41
14.65
14.67
14.81
14.99
15.22
15.17
14.95
15.06
15.2
15.3
15.34
15.38
15.32
15.29
15.46
15.42
12/31/03 15.8
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1119 per share.
11
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Performance
OVERVIEW As of December 31, 2003
NXM
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 58%
AA 16%
A 13%
BBB 8%
NR 5%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.27
--------------------------------------------------
Common Share Net Asset Value $16.04
--------------------------------------------------
Premium/(Discount) to NAV 1.43%
--------------------------------------------------
Market Yield 5.96%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.28%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.51%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $52,905
--------------------------------------------------
Average Effective Maturity (Years) 19.45
--------------------------------------------------
Leverage-Adjusted Duration 10.31
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.98% 9.87%
--------------------------------------------------
Since Inception 9.83% 11.00%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 24%
--------------------------------------------------
Education and Civic Organizations 23%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Utilities 8%
--------------------------------------------------
Long-Term Care 8%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.0795
Apr 0.0795
May 0.0795
Jun 0.0795
Jul 0.0795
Aug 0.0795
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 15.04
14.82
14.68
15
15.13
15.17
14.97
15.4
15.6
15.46
15.5
15.32
15.36
15.32
15.33
15.48
15.43
15.44
15.85
16.06
16.22
16.33
16.18
16.4
16.49
16.4
15.85
14.44
14.62
14.77
14.59
14.52
14.6
14.8
14.88
15.18
15.31
15.5
15.63
15.4
15.9
16
15.91
15.73
15.71
15.7
15.73
15.75
12/31/03 16.27
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1732 per share.
12
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
Performance
OVERVIEW As of December 31, 2003
NVY
Pie Chart:
CREDIT QUALITY
AAA/U.S. Guaranteed 60%
AA 27%
A 3%
BBB 9%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.69
--------------------------------------------------
Common Share Net Asset Value $15.57
--------------------------------------------------
Premium/(Discount) to NAV 0.77%
--------------------------------------------------
Market Yield 5.86%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.14%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.37%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $57,978
--------------------------------------------------
Average Effective Maturity (Years) 17.93
--------------------------------------------------
Leverage-Adjusted Duration 10.34
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.43% 8.42%
--------------------------------------------------
Since Inception 9.34% 11.64%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 25%
--------------------------------------------------
Tax Obligation/Limited 25%
--------------------------------------------------
Education and Civic Organizations 15%
--------------------------------------------------
Utilities 7%
--------------------------------------------------
Healthcare 7%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
1/1/03 14.58
14.95
15
15.35
15.01
14.89
15.2
15.52
15.13
15.25
15.44
14.97
15.1
15.43
15.25
15.4
15.07
15.29
15.6
15.79
15.87
16
15.81
15.82
15.79
15.79
15.41
14.33
14.27
14.13
14.21
14.52
14.95
14.55
14.53
14.7
14.76
14.74
14.82
14.88
15.23
15.26
14.9
15.16
15.25
15.28
15.7
15.57
12/31/03 15.74
1 Taxable-equivalent yield represents the yield that must be earned on a fully
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. With respect to investments that generate qualified dividend
income that is taxable at a maximum rate of 15%, the taxable-equivalent yield
is lower. The taxable-equivalent yield is calculated using the current market
yield and a federal income tax rate of 28%. The rate shown for federal and
state highlights the added value of owning shares that are also exempt from
state income taxes. It is based on a combined federal and state income tax
rate of 30%.
2 The Fund also paid shareholders a capital gains and net ordinary income
distribution in December 2003 of $0.1557 per share.
13
Shareholder
MEETING REPORT
The Shareholder Meeting was held on November 17, 2003, in Chicago at Nuveen's
headquarters.
NQJ NNJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 18,517,207 -- 11,036,353 --
Withhold 194,726 -- 151,213 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Robert P. Bremner
For 18,533,041 -- 11,025,987 --
Withhold 178,892 -- 161,579 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Lawrence H. Brown
For 18,520,350 -- 11,034,188 --
Withhold 191,583 -- 153,378 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Jack B. Evans
For 18,536,254 -- 11,039,093 --
Withhold 175,679 -- 148,473 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Anne E. Impellizzeri
For 18,513,423 -- 11,028,847 --
Withhold 198,510 -- 158,719 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
William L. Kissick
For 18,507,299 -- 11,027,552 --
Withhold 204,634 -- 160,014 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Thomas E. Leafstrand
For 18,508,319 -- 11,026,851 --
Withhold 203,614 -- 160,715 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Peter R. Sawers
For 18,511,683 -- 11,030,410 --
Withhold 200,250 -- 157,156 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
14
NQJ NNJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
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
====================================================================================================================================
William J. Schneider
For -- 6,143 -- 3,411
Withhold -- 22 -- 124
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,165 -- 3,535
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,143 -- 3,411
Withhold -- 22 -- 124
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,165 -- 3,535
====================================================================================================================================
Judith M. Stockdale
For 18,539,171 -- 11,027,792 --
Withhold 172,762 -- 159,774 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
Sheila W. Wellington
For 18,506,999 -- 11,025,852 --
Withhold 204,934 -- 161,714 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,711,933 -- 11,187,566 --
====================================================================================================================================
15
Shareholder
MEETING REPORT (continued)
NXJ NUJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 6,393,262 -- 4,381,930 --
Withhold 47,583 -- 48,316 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Robert P. Bremner
For 6,385,670 -- 4,384,028 --
Withhold 55,175 -- 46,218 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Lawrence H. Brown
For 6,388,669 -- 4,387,361 --
Withhold 52,176 -- 42,885 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Jack B. Evans
For 6,393,262 -- 4,384,028 --
Withhold 47,583 -- 46,218 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Anne E. Impellizzeri
For 6,388,669 -- 4,384,026 --
Withhold 52,176 -- 46,220 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
William L. Kissick
For 6,388,669 -- 4,384,028 --
Withhold 52,176 -- 46,218 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Thomas E. Leafstrand
For 6,388,669 -- 4,383,278 --
Withhold 52,176 -- 46,968 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Peter R. Sawers
For 6,388,669 -- 4,384,028 --
Withhold 52,176 -- 46,218 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
16
NXJ NUJ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
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
====================================================================================================================================
William J. Schneider
For -- 1,687 -- 1,370
Withhold -- -- -- 6
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,687 -- 1,376
====================================================================================================================================
Timothy R. Schwertfeger
For -- 1,687 -- 1,370
Withhold -- -- -- 6
------------------------------------------------------------------------------------------------------------------------------------
Total -- 1,687 -- 1,376
====================================================================================================================================
Judith M. Stockdale
For 6,393,262 -- 4,385,927 --
Withhold 47,583 -- 44,319 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
Sheila W. Wellington
For 6,386,869 -- 4,384,029 --
Withhold 53,976 -- 46,217 --
------------------------------------------------------------------------------------------------------------------------------------
Total 6,440,845 -- 4,430,246 --
====================================================================================================================================
17
Shareholder
MEETING REPORT (continued)
NQP NPY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 14,513,219 -- 14,368,030 --
Withhold 193,256 -- 141,511 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Robert P. Bremner
For 14,518,933 -- 14,370,126 --
Withhold 187,542 -- 139,415 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Lawrence H. Brown
For 14,508,649 -- 14,361,976 --
Withhold 197,826 -- 147,565 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Jack B. Evans
For 14,515,512 -- 14,376,154 --
Withhold 190,963 -- 133,387 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Anne E. Impellizzeri
For 14,487,391 -- 14,340,456 --
Withhold 219,084 -- 169,085 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
William L. Kissick
For 14,484,208 -- 14,342,529 --
Withhold 222,267 -- 167,012 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Thomas E. Leafstrand
For 14,483,675 -- 14,346,370 --
Withhold 222,800 -- 163,171 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Peter R. Sawers
For 14,499,223 -- 14,355,448 --
Withhold 207,252 -- 154,093 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
18
NQP NPY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
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
====================================================================================================================================
William J. Schneider
For -- 5,006 -- 4,463
Withhold -- 20 -- 30
------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,026 -- 4,493
====================================================================================================================================
Timothy R. Schwertfeger
For -- 5,007 -- 4,464
Withhold -- 19 -- 29
------------------------------------------------------------------------------------------------------------------------------------
Total -- 5,026 -- 4,493
====================================================================================================================================
Judith M. Stockdale
For 14,505,818 -- 14,360,428 --
Withhold 200,657 -- 149,113 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
Sheila W. Wellington
For 14,465,312 -- 14,332,381 --
Withhold 241,163 -- 177,160 --
------------------------------------------------------------------------------------------------------------------------------------
Total 14,706,475 -- 14,509,541 --
====================================================================================================================================
19
Shareholder
MEETING REPORT (continued)
NXM NVY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
====================================================================================================================================
William E. Bennett
For 3,165,724 -- 3,574,458 --
Withhold 28,018 -- 31,104 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Robert P. Bremner
For 3,165,524 -- 3,578,012 --
Withhold 28,218 -- 27,550 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Lawrence H. Brown
For 3,162,024 -- 3,576,458 --
Withhold 31,718 -- 29,104 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Jack B. Evans
For 3,165,724 -- 3,574,666 --
Withhold 28,018 -- 30,896 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Anne E. Impellizzeri
For 3,160,950 -- 3,573,256 --
Withhold 32,792 -- 32,306 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
William L. Kissick
For 3,161,749 -- 3,578,624 --
Withhold 31,993 -- 26,938 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Thomas E. Leafstrand
For 3,160,950 -- 3,574,455 --
Withhold 32,792 -- 31,107 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Peter R. Sawers
For 3,160,949 -- 3,578,624 --
Withhold 32,793 -- 26,938 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
20
NXM NVY
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS: (CONTINUED)
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
====================================================================================================================================
William J. Schneider
For -- 965 -- 1,118
Withhold -- 3 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 968 -- 1,120
====================================================================================================================================
Timothy R. Schwertfeger
For -- 965 -- 1,118
Withhold -- 3 -- 2
------------------------------------------------------------------------------------------------------------------------------------
Total -- 968 -- 1,120
====================================================================================================================================
Judith M. Stockdale
For 3,165,324 -- 3,576,465 --
Withhold 28,418 -- 29,097 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
Sheila W. Wellington
For 3,160,950 -- 3,574,956 --
Withhold 32,792 -- 30,606 --
------------------------------------------------------------------------------------------------------------------------------------
Total 3,193,742 -- 3,605,562 --
====================================================================================================================================
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
$ 9,125 5.750%, 6/01/32 6/12 at 100.00 BBB $ 8,389,160
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 2,682,840
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 6/13 at 100.00 BBB 3,062,752
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,518,005
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 13.3%
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,568,950
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,720 New Jersey Higher Education Student Assistance Authority, 6/10 at 101.00 AAA 3,911,134
Student Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17
(Alternative Minimum Tax) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Saint Peter's College Issue, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 904,530
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,513,348
1,250 New Jersey Educational Facilities Authority, Revenue Refunding 7/08 at 101.00 AAA 1,294,000
Bonds, Seton Hall University Project, Series 1998F,
5.000%, 7/01/21 - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,026,730
Ramapo College, Series 2001D, 5.000%, 7/01/31 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,081,990
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,093,637
750 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 796,103
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,058,600
New Jersey City University, Series 2002A, 5.000%, 7/01/32 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,047,320
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,636,455
Kean University, Series 2003D, 5.250%, 7/01/20 -
FGIC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,390,779
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
4,810 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 4,983,930
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 (Alternative Minimum Tax) -
MBIA Insured
4,235 Puerto Rico Industrial, Tourist, Educational, Medical, and 9/11 at 100.00 BBB 4,403,934
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart
Project, Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry, New Jersey, Certificates
of Participation, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,067,379
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,441,103
University of Medicine and Dentistry, New Jersey,
Revenue Bonds, Series 2002A:
2,000 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,074,940
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,354,080
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.2%
$ 1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- $ 1,476,810
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
2,535 New Jersey Health Care Facilities Financing Authority, 1/04 at 102.00 Baa2 2,583,393
Revenue Bonds, Deborah Heart and Lung Center Issue,
Series 1993, 6.200%, 7/01/13
6,150 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 6,274,599
FHA-Insured Mortgage Revenue Bonds, Jersey City
Medical Center Issue, Series 2001, 5.000%, 8/01/41 -
AMBAC Insured
3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,128,100
Revenue Bonds, Kennedy Health System, Series 2001,
5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,204,127
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
7,860 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 8,240,031
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21
3,000 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 3,009,900
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
New Jersey Health Facilities Financing Authority, Revenue Bonds,
Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A+ 4,124,236
2,000 5.750%, 7/01/31 7/10 at 100.00 A+ 2,135,480
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,435,862
Revenue and Refunding Bonds, Saint Barnabas Health Care
System, West Hudson Hospital Obligated Group,
Series 1998A, 5.000%, 7/01/23 - MBIA Insured
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,389,474
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
2,000 New Jersey Health Facilities Financing Authority, Revenue 7/10 at 100.00 Baa1 2,187,380
Bonds, Saint Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 3,676,085
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
3,925 Newark, New Jersey, GNMA Collateralized Health Care 6/12 at 102.00 Aaa 4,131,651
Facility Revenue Bonds, New Community Urban
Renewal Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.5%
3,790 Hudson County Improvement Authority, New Jersey, 6/04 at 100.00 AA- 3,817,591
Multifamily Housing Revenue Bonds, Conduit Financing -
Observer Park Project, Series 1992A, 6.900%, 6/01/22
(Alternative Minimum Tax)
1,090 Long Branch Housing Finance Corporation, New Jersey, 4/04 at 100.00 N/R 1,096,518
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
4,500 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 4,686,120
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
4,500 New Jersey Housing and Mortgage Finance Agency, 5/06 at 102.00 AAA 4,711,410
Multifamily Housing Revenue Bonds, Series 1996A,
6.250%, 5/01/28 (Alternative Minimum Tax) -
AMBAC Insured
2,743 Newark Housing Authority, New Jersey, GNMA 10/09 at 102.00 Aaa 2,851,372
Collateralized Housing Revenue Bonds, Fairview
Apartments Project, Series 2000A, 6.400%, 10/20/34
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.2%
710 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 735,716
Home Buyer Revenue Bonds, Series 1995-O,
6.350%, 10/01/27 (Alternative Minimum Tax) -
MBIA Insured
9,150 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 9,555,620
Home Buyer Revenue Bonds, Series 1997U,
5.850%, 4/01/29 (Alternative Minimum Tax) -
MBIA Insured
8,875 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 9,350,789
Home Buyer Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 (Alternative Minimum Tax) -
MBIA Insured
2,880 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,983,594
Securities, Home Mortgage Revenue Bonds,
Series 2001A, 5.200%, 12/01/33
2,880 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,969,568
Securities, Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.6%
$ 5,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 $ 5,134,300
Development Revenue Refunding Bonds, Kapkowski Road
Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.8%
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,039,060
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,545,135
2,950 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 3,096,408
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation Project, Series 2001A, 5.200%, 12/20/36
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.0%
6,250 Salem County Pollution Control Financing Authority, 5/04 at 100.00 AA- 6,290,313
New Jersey, Waste Disposal Revenue Bonds, E.I.
DuPont de Nemours and Company - Chambers Works
Project, Series 1991A, 6.500%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.6%
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,784,745
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,694,924
1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,105,190
Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
2,320 Hoboken, New Jersey, Fiscal Year Adjustment, General No Opt. Call AAA 2,739,595
Obligation Bonds, Series 1991, 8.900%, 8/01/06 -
FSA Insured
1,735 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,844,964
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
3,000 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 3,416,580
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
Middleton Township Board of Education, Monmouth County,
New Jersey, Refunding School Bonds:
4,725 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 4,930,632
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,545,630
2,000 Morristown, New Jersey, General Obligation Bonds, 8/05 at 102.00 AAA 2,190,720
Series 1995 Refunding, 6.500%, 8/01/19 - FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,931,700
6.000%, 2/15/11
2,000 Puerto Rico, Public Improvement General Obligation Refunding 7/11 at 100.00 AAA 2,083,740
Bonds, Series 2001, 5.125%, 7/01/30 - FSA Insured
Sayreville School District, Middlesex County, New Jersey,
General Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,531,417
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,604,174
900 West Deptford Township, Gloucester County, New Jersey, 3/06 at 102.00 AAA 980,775
General Obligation Bonds, Series 1996, 5.250%, 3/01/14 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.3%
3,320 Atlantic County, New Jersey, Improvement Authority, 11/10 at 100.00 Aaa 3,559,837
Egg Harbor Township Guaranteed Revenue Bonds, The
Egg Harbor Township Golf Corporation Project, Series 2000,
5.400%, 11/01/30 - AMBAC Insured
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,510 4.500%, 11/15/12 No Opt. Call Aaa 1,654,416
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,987,837
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,196,140
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,302,630
Obligation Lease Bonds, Correctional Facilities Project,
Series 2003A, 5.000%, 10/01/28 - FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 11,473,300
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000,
6.000%, 10/01/25 - FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa $11,240,200
Revenue Bonds, Series 2003, 5.000%, 12/15/12 -
FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
2,000 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 2,204,060
3,000 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 3,197,760
3,365 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 3,564,545
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 (DD, settling 1/08/04) - FGIC Insured 12/13 at 100.00 Aaa 1,906,258
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,983,158
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,072,280
1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,587,737
County, New Jersey, Revenue Bonds, Series 2003D,
5.000%, 12/01/16 - FGIC Insured
2,535 Mansfield Township Board of Education, Warren County, 3/06 at 102.00 AAA 2,793,012
New Jersey, Certificates of Participation, 5.900%, 3/01/15 -
MBIA Insured
1,500 Middlesex County, New Jersey, Certificates of Participation, 8/11 at 100.00 AAA 1,545,255
Series 2001, 5.000%, 8/01/31 - MBIA Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,121,470
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,217,160
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,088,330
2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,558,725
Department of Human Services Lease Revenue Bonds,
Greystone Park Psychiatric Hospital Project, Series 2003,
5.000%, 9/15/25 (DD, settling 1/02/04)
1,000 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 1,087,740
Facilities Construction Bonds, Series 2001A,
5.250%, 6/15/19 - AMBAC Insured
New Jersey Economic Development Authority, School Facilities
Construction Financing Act Bonds, Series 2002C:
4,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 4,379,080
5,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 5,291,250
3,000 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,259,530
Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 - FGIC Insured
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2003C:
3,000 5.500%, 6/15/17 6/13 at 100.00 AA- 3,380,280
3,000 5.500%, 6/15/18 6/13 at 100.00 AA- 3,360,120
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,932,975
System Bonds, Series 2001B, 5.000%, 12/15/21 -
MBIA Insured
1,895 North Bergen Township Municipal Utilities Authority, No Opt. Call AAA 2,432,687
Hudson County, New Jersey, Sewer Revenue Refunding
Bonds, Series 1993, 7.875%, 12/15/09 - FGIC Insured
1,000 Ocean County Utilities Authority, New Jersey, Wastewater 1/07 at 102.00 Aa1 1,103,970
Revenue Refunding Bonds, Series 1997, 5.125%, 1/01/10
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,334,425
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
2,000 West Orange Board of Education, Essex County, New Jersey, 10/09 at 101.00 Aaa 2,290,600
Certificates of Participation, Series 1999, 6.000%, 10/01/24 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 33.6%
3,275 Delaware River and Bay Authority, Delaware and New Jersey, 1/10 at 101.00 AAA 3,652,084
Revenue Bonds, Series 2000A, 5.750%, 1/01/29 -
AMBAC Insured
2,960 Delaware River Port Authority, New Jersey and Pennsylvania, 1/12 at 100.00 AAA 3,102,169
Port District Project Revenue Refunding Bonds, Series 2001A,
5.200%, 1/01/27 - FSA Insured
7,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102.00 AAA 7,472,010
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA $ 3,933,545
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
3,000 New Jersey Economic Development Authority, Economic 5/04 at 100.00 CCC 2,022,300
Development Bonds, American Airlines, Inc. Project,
7.100%, 11/01/31 (Alternative Minimum Tax)
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 2000A:
9,275 5.500%, 1/01/25 - MBIA Insured 1/10 at 100.00 AAA 10,086,934
10,000 5.500%, 1/01/27 1/10 at 100.00 A 10,593,500
2,000 5.500%, 1/01/30 - MBIA Insured 1/10 at 100.00 AAA 2,171,400
9,500 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 10,178,775
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
600 6.500%, 1/01/16 No Opt. Call A 732,474
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 197,776
5,000 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AAA 5,314,100
Revenue Bonds, One Hundredth Series 1995, 5.750%, 6/15/30 -
MBIA Insured
3,930 Port Authority of New York and New Jersey, Consolidated 7/08 at 101.00 AA- 4,001,762
Revenue Bonds, One Hundred Twenty-Second Series 2001,
5.125%, 1/15/36 (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Consolidated Revenue
Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,366,252
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,162,950
6,850 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,295,387
Revenue Bonds, One Hundred Twenty-First
Series 2000, 5.375%, 10/15/35 - MBIA Insured
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC Project, Series 6:
3,500 7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,289,390
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 7,419,529
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 13,290,720
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,044,160
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.0%
5,175 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,795,327
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
1,000 Monmouth County Improvement Authority, New Jersey, 7/07 at 101.00 AAA 1,138,770
Revenue Bonds, Howell Township Board of Education
Project, Series 1997, 5.800%, 7/15/17 (Pre-refunded to
7/15/07) - AMBAC Insured
3,000 New Jersey Highway Authority, Garden State Senior Parkway, 1/10 at 101.00 AAA 3,495,000
Revenue Refunding Bonds, Series 1999, 5.625%, 1/01/30
(Pre-refunded to 1/01/10)
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
2,170 6.500%, 1/01/16 No Opt. Call A*** 2,663,458
580 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 717,501
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 8,167,875
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.0%
2,655 Camden County Pollution Control Financing Authority, 6/04 at 100.00 B2 2,581,244
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
3,500 Camden County Pollution Control Financing Authority, 6/04 at 100.00 B2 3,405,360
New Jersey, Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991A,
7.500%, 12/01/10 (Alternative Minimum Tax)
400 New Jersey Economic Development Authority, Adjustable - 1/04 at 102.00 A2 418,920
Fixed Rate Pollution Control Revenue Bonds, Jersey Central
Power and Light Company Project, Series 1985,
7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue 7/09 at 101.50 AAA 6,686,967
Refunding Bonds, Series FF, 5.250%, 7/01/13 - MBIA Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 $ 2,582,075
New Jersey, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31
(Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,041,760
Facility Senior Lease Revenue Bonds, Ogden Martin Systems
of Union, Inc. Lessee, Series 1998A, 5.000%, 6/01/23
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.4%
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,105,570
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 (Alternative Minimum Tax) - FGIC Insured
7,500 New Jersey Economic Development Authority, Water Facilities 5/06 at 102.00 Aaa 8,197,350
Revenue Bonds, American Water Works Company, Series 1996,
6.000%, 5/01/36 (Alternative Minimum Tax) - FGIC Insured
5,250 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 5,414,582
Facilities Revenue Bonds, American Water Works Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative
Minimum Tax) - FGIC Insured
North Hudson Sewer Authority, New Jersey, Sewer Revenue
Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa 3,328,710
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,294,060
------------------------------------------------------------------------------------------------------------------------------------
$ 442,518 Total Long-Term Investments (cost $446,202,618) - 149.8% 470,015,640
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 5,771,606
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $313,787,246
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
See accompanying notes to financial statements.
27
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.5%
$ 3,500 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB $ 3,217,760
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 6/13 at 100.00 BBB 3,369,027
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,158,290
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.3%
New Jersey Higher Education Student Assistance Authority,
Student Loan Revenue Bonds, Series 2000A:
2,695 5.700%, 6/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 2,860,769
1,810 6.000%, 6/01/15 (Alternative Minimum Tax) - MBIA Insured 6/10 at 101.00 AAA 1,933,008
3,075 New Jersey Economic Development Authority, Economic No Opt. Call N/R 3,306,148
Development Bonds, Yeshiva Ktana of Passaic - 1992 Project,
8.000%, 9/15/18
515 New Jersey Educational Facilities Authority, Revenue Bonds, 1/04 at 100.00 A- 517,235
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/04 at 102.00 AAA 1,041,150
New Jersey Institute of Technology Issue, Series 1994A,
6.000%, 7/01/24 - MBIA Insured
3,330 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 101.00 AAA 3,637,992
Montclair State University, Dormitory/Cafeteria Facility,
Series 1996C, 5.400%, 7/01/12 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 511,830
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 -
ACA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,069,830
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
385 New Jersey Higher Education Assistance Authority, Student 1/04 at 101.00 A+ 389,143
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
3,110 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 3,307,765
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
2,025 University of Medicine and Dentistry, New Jersey, 4/13 at 100.00 AAA 2,139,635
Certificates of Participation, Series 2003, 5.000%, 4/15/21 -
AMBAC Insured
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,092,370
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.3%
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,623,270
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,759,385
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A- 1,191,709
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 3,145,050
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 1,881,188
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A2 3,030,355
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,265,180
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,800 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 2,041,452
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
2,900 Puerto Rico Industrial, Medical, Educational, and 6/04 at 103.00 Baa1 2,987,986
Environmental Pollution Control Facilities Financing
Authority, Adjustable Rate Industrial Revenue Bonds,
American Home Products Corporation, Series 1983A,
5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.9%
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 343,648
Multifamily Enhanced Revenue Bonds, Mount Carmel
Towers Project, Series 2002, 4.750%, 11/01/22
(Alternative Minimum Tax)
655 Long Branch Housing Finance Corporation New Jersey, 4/04 at 100.00 N/R 658,917
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,875 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 2,993,910
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,545,510
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.1%
1,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 1,038,020
Home Buyer Revenue Bonds, Series 1995-O,
6.300%, 10/01/23 (Alternative Minimum Tax) -
MBIA Insured
New Jersey Housing and Mortgage Finance Agency,
Home Buyer Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 2,081,505
1,375 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 1,435,954
1,000 New Jersey Housing and Mortgage Finance Agency, 10/08 at 101.50 AAA 1,027,720
Home Buyer Revenue Bonds, Series 1998X, 5.350%, 4/01/29
(Alternative Minimum Tax) - MBIA Insured
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 522,350
Home Buyer Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5%
1,000 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 1,026,860
Development Revenue Refunding Bonds, Kapkowski
Road Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.1%
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,735,126
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
1,500 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,595,070
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
1,170 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 1,332,466
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,500 6.000%, 2/15/11 No Opt. Call AA 2,965,850
1,560 6.000%, 2/15/13 No Opt. Call AA 1,873,451
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,564,960
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 1,475,199
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,194,897
1,800 Woodbridge Township, Middlesex County, New Jersey, 7/09 at 102.00 Aaa 1,963,926
Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20 -
FGIC Insured
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.0%
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
$ 1,000 4.500%, 11/15/12 No Opt. Call Aaa $ 1,095,640
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,328,916
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,257,290
1,155 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa 1,271,898
Utilities Authority, Revenue Bonds, Series 2002,
5.250%, 12/01/18 - FGIC Insured
2,225 Essex County Improvement Authority, New Jersey, 10/13 at 100.00 Aaa 2,302,630
General Obligation Lease Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
5,515 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,980,190
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
1,200 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 1,322,436
1,750 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 1,865,360
1,965 5.000%, 1/01/21 - FSA Insured 11/13 at 100.00 AAA 2,081,525
1,000 Hudson County Improvement Authority, New Jersey, 1/08 at 101.50 AAA 1,063,850
Utility System Revenue Bonds, Harrison Franchise
Acquisition Project, Series 1997, 5.350%, 1/01/27 -
FSA Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,121,470
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,903,274
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,088,330
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,783,893
Department of Human Services Lease Revenue Bonds,
Greystone Park Psychiatric Hospital Project, Series 2003,
5.000%, 9/15/25 (DD, settling 1/02/04)
1,000 New Jersey Economic Development Authority, Revenue 2/04 at 102.00 AAA 1,023,380
Bonds, Public Schools Small Project Loan Program,
Series 1993, 5.400%, 8/15/12
New Jersey Economic Development Authority, School Facilities
Construction Financing Act Bonds, Series 2002C:
3,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 3,284,310
2,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 2,116,500
3,425 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,721,297
Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue 9/12 at 100.00 AAA 1,090,350
Bonds, Higher Education Capital Improvement Bonds,
Fund Issue, Series 2002A, 5.250%, 9/01/19 -
AMBAC Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,466,410
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
2,000 New Jersey Transportation Trust Fund Authority, 6/13 at 100.00 AA- 2,240,080
Transportation System Bonds, Series 2003C,
5.500%, 6/15/18
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 1995A:
385 5.500%, 6/15/12 - MBIA Insured 6/05 at 102.00 AAA 414,106
5,000 5.000%, 6/15/15 - MBIA Insured 6/05 at 102.00 AAA 5,307,400
685 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 734,067
System Bonds, Series 1995B, 5.500%, 6/15/15 -
MBIA Insured
7,500 Puerto Rico Municipal Finance Agency, Loan Pool Bonds, 8/09 at 101.00 AAA 8,551,350
Series 1999A, 5.500%, 8/01/17 - FSA Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call AA- 1,160,520
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,200 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 1,248,300
Guaranteed Parking Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
2,445 Union County, New Jersey, Improvement Authority General 6/13 at 100.00 Aa1 2,552,629
Obligation Lease Revenue Bonds, Series 2003,
5.000%, 6/15/23
2,250 Western Monmouth Utilities Authority, Monmouth County, 2/05 at 102.00 AAA 2,394,248
New Jersey, Revenue Refunding Bonds, Series 1995A,
5.600%, 2/01/14 - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 28.1%
$ 5,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/08 at 101.00 AAA $ 5,291,250
Port District Project Bonds, Series 1998B, 5.000%, 1/01/19 -
MBIA Insured
2,495 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 1/10 at 100.00 AAA 2,713,412
Series 2000A, 5.500%, 1/01/25 - MBIA Insured
5,750 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 6,160,838
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
1,830 6.500%, 1/01/16 No Opt. Call A 2,234,046
465 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 571,187
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 939,436
1,200 Port Authority of New York and New Jersey, Consolidated 5/05 at 101.00 AAA 1,270,848
Revenue Bonds, Ninety-Ninth Series 1995,
5.750%, 11/01/09 (Alternative Minimum Tax) -
FGIC Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AAA 2,125,640
Revenue Bonds, One Hundredth Series 1995,
5.750%, 6/15/30 - MBIA Insured
1,500 Port Authority of New York and New Jersey, Consolidated 7/06 at 101.00 AA- 1,648,065
Revenue Bonds, One Hundred Sixth Series 1996,
6.000%, 7/01/16 (Alternative Minimum Tax)
2,500 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AAA 2,658,800
Revenue Bonds, One Hundredth Series 1995,
5.750%, 12/15/20 - FGIC Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AA- 2,053,720
Bonds, One Hundred Twelfth Series 1998,
5.250%, 12/01/13 (Alternative Minimum Tax)
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,065,180
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC Project, Series 6:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 11,233,200
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 12,052,590
1,435 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA 1,507,754
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 17.8%
5,175 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,795,327
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,250 New Jersey Building Authority, State Building Revenue Bonds, 6/10 at 100.00 AA-*** 2,552,558
Series 2000A, 5.125%, 6/15/20 (Pre-refunded to 6/15/10)
610 New Jersey Health Care Facilities Financing Authority, 8/04 at 102.00 Aa2*** 638,609
FHA-Insured Mortgage Revenue Refunding Bonds,
Wayne General Hospital Issue, Series 1994B,
5.750%, 8/01/11 (Pre-refunded to 8/01/04)
2,500 New Jersey Educational Facilities Authority, Revenue 7/10 at 100.00 AAA 2,896,200
Bonds, Princeton University, Series 2000E,
5.500%, 7/01/17 (Pre-refunded to 7/01/10)
2,000 New Jersey Transit Corporation, Certificates of 9/09 at 100.00 AAA 2,371,960
Participation, Federal Transit Administration Grants,
Series 2000A, 6.125%, 9/15/15 (Pre-refunded to
9/15/09) - AMBAC Insured
2,025 New Jersey Transportation Trust Fund Authority, 12/11 at 100.00 AAA 2,437,472
Transportation System Bonds, Series 2001B,
6.000%, 12/15/19 (Pre-refunded to 12/15/11) -
MBIA Insured
115 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 124,320
Transportation System Bonds, Series 1995A,
5.500%, 6/15/12 - MBIA Insured
415 New Jersey Transportation Trust Fund Authority, 6/05 at 102.00 AAA 448,632
Transportation System Bonds, Series 1995B,
5.500%, 6/15/15 (Pre-refunded to 6/15/05) -
MBIA Insured
New Jersey Turnpike Authority, Turnpike Revenue Bonds,
Series 1991C:
6,590 6.500%, 1/01/16 No Opt. Call A*** 8,088,566
1,720 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 2,127,760
2,745 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 3,395,757
31
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
Sparta Township School District, Sussex County,
New Jersey, General Obligation Bonds, Series 1996:
$ 1,100 5.800%, 9/01/19 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA $ 1,218,734
1,100 5.800%, 9/01/20 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA 1,218,734
1,100 5.800%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured 9/06 at 100.00 AAA 1,218,734
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.2%
2,095 Camden County Pollution Control Financing Authority, 6/04 at 100.00 B2 2,038,540
New Jersey, Solid Waste Disposal and Resource
Recovery System Revenue Bonds, Series 1991D,
7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue 7/09 at 101.50 AAA 2,247,720
Refunding Bonds, Series FF, 5.250%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 15.8%
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 1,539,784
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,290,563
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,224,200
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water 3/04 at 102.00 AAA 3,169,936
Facilities Revenue Refunding Bonds, Hackensack Water
Company Project, Series 1994B, 5.900%, 3/01/24
(Alternative Minimum Tax) - MBIA Insured
3,250 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 3,351,885
Facilities Revenue Bonds, American Water Works
Company Project, Series 1998A, 5.250%, 7/01/38
(Alternative Minimum Tax) - FGIC Insured
6,950 New Jersey Environmental Infrastructure Trust, 9/11 at 101.00 AAA 7,250,865
Environmental Infrastructure Bonds, Series 2001A,
4.750%, 9/01/20
7,000 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA 7,204,820
Bonds, Series 1996, 5.125%, 8/01/22 - FGIC Insured
3,500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,819,060
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,777,080
New Jersey, Sewer Revenue Refunding Bonds,
Series 1993B, 5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 260,625 Total Long-Term Investments (cost $262,703,624) - 145.6% 282,598,297
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5%
1,000 Puerto Rico Government Development Bank, Adjustable Refunding A-1 1,000,000
Bonds, Variable Rate Demand
Obligations, Series 1985, 1.060%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 1,000 Total Short-Term Investments (cost $1,000,000) 1,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $263,703,624) - 146.1% 283,598,297
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,176,627
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.2)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $194,174,924
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
32
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3%
$ 250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 250,735
Development Revenue Bonds, Newark Airport Marriott
Hotel, Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.1%
1,000 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 919,360
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
2,240 6.125%, 6/01/24 6/13 at 100.00 BBB 2,143,926
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,079,145
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6%
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 2,059,300
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 220,954
Bonds, Seton Hall University Project, Series 2001A,
5.250%, 7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Refunding
Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 3,953,356
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,646,864
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,091,740
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart Project,
Series 2001:
2,000 5.250%, 9/01/21 9/11 at 100.00 BBB 2,079,780
2,000 5.250%, 9/01/31 9/11 at 100.00 BBB 2,047,360
500 Puerto Rico Industrial, Tourist, Educational, Medical, 12/12 at 101.00 BBB 504,730
and Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System Project Refunding, Series 2002, 5.500%, 12/01/31
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101.50 AAA 2,003,831
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.0%
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB- 1,046,550
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 28.8%
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,623,270
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,415,272
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,000 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 1,003,300
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
1,100 New Jersey Health Care Facilities Financing Authority, No Opt. Call AAA 1,205,897
Revenue Bonds, Kennedy Health System Obligated Group,
Series 1998B, 5.750%, 7/01/06 - MBIA Insured
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 546,810
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
33
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
New Jersey Health Facilities Financing Authority, Revenue Bonds,
Robert Wood Johnson University Hospital, Series 2000:
$ 3,000 5.750%, 7/01/25 7/10 at 100.00 A+ $ 3,213,690
12,000 5.750%, 7/01/31 7/10 at 100.00 A+ 12,812,880
2,500 New Jersey Health Care Facilities Financing Authority, 1/09 at 101.00 AAA 2,431,250
Revenue Bonds, Virtua Health System, Series 1998,
4.500%, 7/01/28 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 A2 2,549,900
Revenue Refunding Bonds, Burdette Tomlin Memorial
Hospital, Series 1999, 5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.1%
145 New Jersey Economic Development Authority, District 6/04 at 102.00 BBB- 145,715
Heating and Cooling Revenue Bonds, Trigen-Trenton
Project, Series 1993B, 6.100%, 12/01/04 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds, Masonic Charity Foundation Project, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A+ 1,112,400
335 5.500%, 6/01/31 6/11 at 102.00 A+ 355,321
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.5%
Hamilton Township, Mercer County Board of Education, New Jersey,
General Obligation Bonds, Series 2001:
1,850 4.750%, 8/15/18 - FSA Insured 8/10 at 100.00 AAA 1,932,676
1,630 4.750%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 1,693,228
Puerto Rico, Public Improvement General Obligation
Refunding Bonds, Series 2001:
3,500 5.250%, 7/01/27 - FSA Insured 7/11 at 100.00 AAA 3,766,280
2,000 5.125%, 7/01/30 - FSA Insured 7/11 at 100.00 AAA 2,083,740
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.3%
1,745 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,888,858
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
2,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 2,248,040
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
550 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 606,117
900 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 959,328
1,015 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 1,075,190
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2001A:
2,000 5.250%, 6/15/19 - AMBAC Insured 6/11 at 100.00 AAA 2,175,480
2,400 5.000%, 6/15/21 - AMBAC Insured 6/11 at 100.00 AAA 2,513,160
1,500 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA 1,642,155
Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/15 - MBIA Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 1,086,510
Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,090,350
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,155,470
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
1,000 5.500%, 6/15/17 6/13 at 100.00 AA- 1,126,760
1,000 5.500%, 6/15/18 6/13 at 100.00 AA- 1,120,040
1,500 Virgin Islands Public Finance Authority, Revenue Refunding 10/08 at 101.00 AA 1,589,070
Senior Lien Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 22.7%
$ 1,000 Delaware River and Bay Authority, Delaware and 1/13 at 100.00 AAA $ 1,102,040
New Jersey, Revenue Bonds, Series 2003, 5.250%, 1/01/18 -
MBIA Insured
1,800 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,637,838
Facilities Revenue Bonds, Continental Airlines Inc. Project,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 3,214,350
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
3,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 3,193,950
Revenue Bonds, One Hundred Ninth Series 1997,
5.375%, 1/15/32 - MBIA Insured
3,500 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,742,725
Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 (Alternative Minimum Tax) -
MBIA Insured
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,616,600
Bonds, JFK International Air Terminal LLC Project, Series 6,
5.750%, 12/01/22 (Alternative Minimum Tax) -
MBIA Insured
4,000 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA 4,202,800
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.8%
5,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 6,205,589
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
1,565 New Jersey Educational Facilities Authority, Revenue 7/10 at 100.00 AAA 1,789,922
Bonds, Princeton University, Series 2000E, 5.250%, 7/01/16
(Pre-refunded to 7/01/10)
3,110 New Jersey Transportation Trust Fund Authority, 6/09 at 100.00 AA-*** 3,495,578
Transportation System Bonds, Series 1998A,
5.000%, 6/15/17 (Pre-refunded to 6/15/09)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,351,280
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.1%
2,185 Camden County Pollution Control Financing Authority, 6/04 at 100.00 B2 2,124,301
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.1%
4,635 New Jersey Economic Development Authority, Water 5/08 at 102.00 Aaa 4,840,191
Facilities Revenue Bonds, American Water Works Company
Project, Series 1997B, 5.375%, 5/01/32 (Alternative
Minimum Tax) - FGIC Insured
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,265,370
Revenue Bonds, Middlesex Water Company Project,
Series 1998, 5.350%, 2/01/38 (Alternative Minimum Tax) -
MBIA Insured
3,000 New Jersey Economic Development Authority, Water 7/08 at 102.00 AAA 3,094,050
Facilities Revenue Bonds, American Water Works Company
Project, Series 1998A, 5.250%, 7/01/38 (Alternative
Minimum Tax) - FGIC Insured
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,854,532
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewer Authority, New Jersey, Sewer Revenue No Opt. Call Aaa 6,085,570
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 147,785 Total Long-Term Investments (cost $138,724,096) - 145.9% 146,032,474
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 2,083,518
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.9)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $100,115,992
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
35
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.8%
$ 1,250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 1,253,675
Development Revenue Bonds, Newark Airport Marriott
Hotel, Series 1996 Refunding, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.4%
1,125 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,034,280
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
1,600 Tobacco Settlement Financing Corporation, New Jersey, 6/13 at 100.00 BBB 1,531,376
Tobacco Settlement Asset-Backed Bonds, Series 2003,
6.125%, 6/01/24
1,325 Virgin Islands Tobacco Settlement Financing Corporation, 5/11 at 100.00 Baa2 1,184,192
Asset-Backed Bonds, Series 2001, 5.000%, 5/15/31
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.2%
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,027,580
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,090 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 1,157,002
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,126,720
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
2,000 Puerto Rico Industrial, Tourist, Educational, Medical, 2/09 at 101.00 BBB 2,068,320
and Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez
University System Project, Series 1999, 5.375%, 2/01/19
3,000 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 3,092,370
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.5%
1,000 Virgin Islands Government Refinery Facilities, Senior 1/13 at 100.00 BBB- 1,046,550
Secured Revenue Bonds, Hovensa LLC Coker Project,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.5%
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,476,810
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center
Issue, Series 2001:
1,000 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 1,023,720
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,964,001
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,175,358
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 1,021,110
Revenue Bonds, Palisades Medical Center of New York,
Presbyterian Healthcare System, Series 2002,
6.625%, 7/01/31
2,500 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A- 2,636,525
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,310,437
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 501,650
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
3,500 New Jersey Health Facilities Financing Authority, Revenue 7/10 at 100.00 A+ 3,737,090
Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 535,658
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - MBIA Insured
2,100 Puerto Rico Industrial, Medical, Educational, and 6/04 at 103.00 Baa1 2,163,714
Environmental Pollution Control Facilities Financing
Authority, Adjustable Rate Industrial Revenue Bonds,
American Home Products Corporation, Series 1983A,
5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.6%
2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,454,435
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.0%
2,700 New Jersey Economic Development Authority, Economic No Opt. Call Baa3 2,772,522
Development Revenue Refunding Bonds, Kapkowski Road
Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.7%
New Jersey Economic Development Authority, Economic Development
Revenue Bonds, Masonic Charity Foundation Project, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A+ 1,084,410
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,242,640
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.6%
3,000 Jackson Township School District, Ocean County, 4/12 at 100.00 AAA 3,154,560
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 4/15/21 - FGIC Insured
1,000 Old Bridge Township Board of Education, Middlesex County, 7/11 at 100.00 AAA 1,032,620
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 7/15/30 - MBIA Insured
1,000 Puerto Rico Public Improvement, General Obligation Bonds, 7/11 at 100.00 AAA 1,061,760
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 22.6%
3,000 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa 3,105,720
Utilities Authority, Revenue Bonds, Series 2002,
5.000%, 12/01/25 - FGIC Insured
1,000 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,082,440
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
1,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 1,124,020
Revenue Bonds, Series 2003, 5.000%, 12/15/12 -
FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 551,015
625 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 666,200
700 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 741,510
1,000 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 1,087,740
Facilities Construction Bonds, Series 2001A,
5.250%, 6/15/19 - AMBAC Insured
1,000 New Jersey Economic Development Authority, School 6/12 at 100.00 AAA 1,058,250
Facilities Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/20 - MBIA Insured
1,000 New Jersey Transit Corporation, Certificates of No Opt. Call AAA 1,155,470
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 1,120,040
System Bonds, Series 2003C, 5.500%, 6/15/18
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 711,538
System Bonds, Series 2001B, 5.000%, 12/15/21 - MBIA Insured
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,099,110
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
2,000 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 2,112,680
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
37
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.3%
$ 770 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA $ 848,571
Revenue Bonds, Series 2003, 5.250%, 1/01/18 - MBIA Insured
1,200 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,091,892
Facilities Revenue Bonds, Continental Airlines Inc. Project,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 2,142,900
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
675 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A 824,033
Series 1991C, 6.500%, 1/01/16
4,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 4,102,160
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 (Alternative Minimum Tax)
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,113,490
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
1,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 1,029,050
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.125%, 10/15/30 - MBIA Insured
4,000 Port Authority of New York and New Jersey, Special No Opt. Call AAA 4,902,160
Project Bonds, JFK International Air Terminal LLC Project,
Series 6, 7.000%, 12/01/12 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.4%
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,569,850
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
2,430 New Jersey Turnpike Authority, Turnpike Revenue Bonds, No Opt. Call A*** 2,982,582
Series 1991C, 6.500%, 1/01/16
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,719,550
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.5%
995 Camden County Pollution Control Financing Authority, 6/04 at 100.00 B2 967,359
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,500 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 2,650,800
5.250%, 10/01/34 - MBIA Insured
2,500 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 2,545,126
Control Revenue Refunding Bonds, PSEG Power LLC Project,
Series 2001A, 5.000%, 3/01/12
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,164,550
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 96,350 Total Long-Term Investments (cost $97,433,302) - 148.1% 102,140,891
=============----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,325,970
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.0)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $68,966,861
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
38
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.6%
$ 13,300 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $14,186,046
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.0%
10,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 10,266,400
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,021,140
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
2,000 Chester County, Pennsylvania, Industrial Development 1/12 at 100.00 AAA 2,056,420
Authority Educational Facilities Revenue Bonds, The
Westtown School Project, Series 2002, 5.000%, 1/01/26 -
AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,351,720
Haverford College, Series 2000, 5.750%, 11/15/29
1,315 Delaware County Authority, Pennsylvania, Revenue 8/13 at 100.00 AAA 1,455,218
Refunding Bonds, Villanova University, Series 2003,
5.250%, 8/01/18 - FGIC Insured
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,064,790
College Revenue Bonds, College Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
1,450 Indiana County Industrial Development Authority, Pennsylvania, 11/06 at 100.00 AAA 1,577,513
Revenue Bonds, The Student Cooperative Association,
Inc./Indiana University of Pennsylvania Student Union
Project, Series 1999A, 5.875%, 11/01/29 - AMBAC Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, The Student Cooperative Association, Inc./Indiana
University of Pennsylvania Student Union Project, Series 1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 495,487
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 467,973
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 441,070
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 415,365
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 390,939
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 8,189,520
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 5,331,600
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,033,300
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
2,945 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 AA 3,148,293
Revenue Bonds, Ursinus College, Series 2003,
5.375%, 1/01/20 - RAAI Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 AA 5,182,500
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
2,000 Pennsylvania State University, General Obligation No Opt. Call AA 2,283,900
Refunding Bonds, Series 2002, 5.250%, 8/15/12
7,445 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 7,565,460
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 1,831,933
Authority, Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/18
195 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/04 at 101.00 N/R 197,439
College Revenue Refunding Bonds, College Misericordia,
Series 1992B, 7.750%, 12/01/12
39
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 6.7%
$ 1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA $ 1,231,328
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,441,900
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 A 9,519,390
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Philadelphia Hospitals and Higher Education Facilities 5/04 at 102.00 BBB 1,009,630
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 1,798,012
Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
1,000 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,030,740
Pennsylvania, Hospital Revenue Bonds, Holy Spirit
Hospital of the Sisters of Christian Charity Project,
Series 2001, 6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4%
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/04 at 100.00 A2 961,258
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.8%
4,885 Allegheny County Residential Finance Authority, No Opt. Call Aaa 808,370
Pennsylvania, Single Family Mortgage Revenue Bonds,
GNMA Mortgage-Backed Securities Program,
Series 1994Z, 0.000%, 5/01/27 (Alternative Minimum Tax)
320 Berks County Redevelopment Authority, Pennsylvania, No Opt. Call A+ 334,746
Senior Single Family Mortgage Revenue Bonds,
Series 1986A, 8.000%, 12/01/17 (Alternative
Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 5,206,100
Mortgage Revenue Bonds, Series 1997-59A,
5.750%, 10/01/23 (Alternative Minimum Tax)
2,210 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,281,096
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 1,009,478
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.2%
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,049,250
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.375%, 11/01/41 (Alternative
Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,797,500
Development Revenue Bonds, Series 2002,
5.500%, 7/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.4%
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,512,285
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101.00 BBB 3,161,532
Pennsylvania, Mortgage Revenue Bonds, Waverly Heights
Project, Series 1996, 6.375%, 1/01/26
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,575,330
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 37.8%
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,749,688
Series C-52, 5.250%, 11/01/23 - FGIC Insured
3,120 Allegheny County, Pennsylvania, General Obligation 5/11 at 100.00 AAA 3,378,773
Refunding Bonds, Series C-53, 5.250%, 11/01/20 -
FGIC Insured
2,000 Washington County, Pennsylvania, Canon-McMillan School No Opt. Call AAA 656,220
District, General Obligation Bonds, Series 2001A,
0.000%, 12/01/25 - FGIC Insured
Cumberland County, Pennsylvania, Carlisle Area School
District, General Obligation Bonds, Series 2002:
1,665 4.750%, 3/01/20 - MBIA Insured 3/12 at 100.00 Aaa 1,717,781
5,760 5.000%, 3/01/22 - MBIA Insured 3/12 at 100.00 Aaa 6,020,755
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,200 Central Bucks County School District, Pennsylvania, 5/13 at 100.00 Aaa $ 2,297,790
General Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
4,600 Delaware County, Pennsylvania, General Obligation Bonds, 8/11 at 100.00 Aaa 4,724,384
Garnet Valley School District, Series 2001A,
5.000%, 2/15/25 - FGIC Insured
2,750 Harrisburg Redevelopment Authority, Dauphin County, 5/16 at 68.04 AAA 967,340
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B,
0.000%, 5/01/24 - FSA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,906,892
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 - FGIC Insured
McKeesport Area School District, Allegheny County,
Pennsylvania, General Obligation Bonds, Series 1999C:
3,430 0.000%, 10/01/23 - AMBAC Insured No Opt. Call AAA 1,285,838
3,380 0.000%, 10/01/24 - AMBAC Insured No Opt. Call AAA 1,186,346
3,420 0.000%, 10/01/25 - AMBAC Insured No Opt. Call AAA 1,134,072
2,340 0.000%, 10/01/26 - AMBAC Insured No Opt. Call AAA 735,907
2,340 0.000%, 10/01/27 - AMBAC Insured No Opt. Call AAA 699,426
7,500 Montgomery County, Pennsylvania General Obligation 7/09 at 100.00 Aaa 7,741,650
Bonds, Series 1999, 5.000%, 7/15/24
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,025 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,097,673
1,125 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,195,031
1,000 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AA 1,094,300
Series 2001, 5.000%, 9/15/15
4,000 Pennsylvania, General Obligation Refunding Bonds, Second No Opt. Call AAA 4,516,880
Series 2002, 5.000%, 10/01/11 - FGIC Insured
1,700 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 1,736,482
Series 2001, 5.000%, 9/15/31 - FSA Insured
1,000 Philadelphia, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,109,990
Series 2003A, 5.000%, 2/15/12
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,817,622
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
15,000 Philadelphia School District, Pennsylvania, General Obligation 9/05 at 101.00 AAA 15,819,600
Bonds, Series 1995B, 5.500%, 9/01/25 - AMBAC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,496,890
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
6,100 Plum Borough School District, Allegheny County, 9/11 at 100.00 AAA 6,384,565
Pennsylvania, General Obligation Bonds, Series 2001,
5.250%, 9/15/30 - FGIC Insured
1,590 Red Lion Area School District, York County, Pennsylvania, 10/11 at 100.00 Aaa 1,673,761
General Obligation Bonds, Series 2001, 5.000%, 4/15/20 -
FSA Insured
1,230 State Public School Building Authority, Pennsylvania, 11/13 at 100.00 AAA 1,337,748
School Revenue Bonds, Conneaut School District Project,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,562,217
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
4,020 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 4,395,910
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
Wilkes-Barre Area School District, Luzerne County,
Pennsylvania, General Obligation Bonds, Series 2003A:
1,700 5.250%, 4/01/19 - MBIA Insured 4/14 at 100.00 AAA 1,874,896
2,050 5.250%, 4/01/20 (DD, settling 1/02/04) - MBIA Insured 4/14 at 100.00 AAA 2,242,844
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.8%
5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,241,550
Pennsylvania, Revenue Bonds, Guaranteed County
Building Project, Series 2002A, 5.000%, 11/01/22 -
MBIA Insured
2,900 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 2,982,186
Pennsylvania, Guaranteed Revenue Bonds, Allegheny
County Office Building Project, Series 2002B,
5.000%, 11/01/29 - MBIA Insured
5,750 Port Authority of Allegheny County, Pennsylvania, Special 3/11 at 101.00 AAA 5,898,868
Transportation Revenue Bonds, Series 2001,
5.000%, 3/01/29 - FGIC Insured
41
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 $ 7,028,820
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,822,982
Philadelphia Funding Program Special Tax Revenue Refunding
Bonds, Series 1999, 4.750%, 6/15/23 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,500 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,693,470
2,600 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,903,290
2,125 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,358,070
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,734,753
Bonds, Series 2001, 5.000%, 7/15/41 - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,501,761
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.250%, 10/01/30 - FSA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 2,983,365
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
4,500 Pittsburgh and Allegheny County Public Auditorium 8/09 at 101.00 AAA 4,597,200
Authority, Pennsylvania, Regional Asset District, Sales
Tax Revenue Bonds, Series 1999, 5.000%, 2/01/29 -
AMBAC Insured
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 1,183,359
Tax Increment Bonds, Center Triangle Tax Increment
Financing District, PNC Bank Corp. Project,
Series 1999A, 6.100%, 5/01/19
1,410 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,647,796
Revenue Bonds, Series 2003AA, 5.500%, 7/01/20 -
MBIA Insured
3,250 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 3,260,563
Revenue Bonds, Series 1999A, 4.750%, 3/01/29 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 8.3%
2,000 Lehigh-Northampton Airport Authority, Pennsylvania, 5/10 at 100.00 Aaa 2,236,640
Airport Revenue Bonds, Lehigh Valley Airport System,
Series 2000A, 6.000%, 5/15/30 (Alternative Minimum
Tax) - MBIA Insured
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,769,360
Revenue Bonds, AMTRAK 30th Street Station Parking
Garage Project, Series 2002, 5.800%, 6/01/23 -
ACA Insured
2,500 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/11 at 101.00 AAA 2,579,825
Revenue Bonds, Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
5,000 Philadelphia, Pennsylvania, Airport Revenue Bonds, 6/11 at 101.00 AAA 5,156,500
Philadelphia Airport System, Series 2001B,
5.250%, 6/15/31 (Alternative Minimum Tax) -
FGIC Insured
3,250 Philadelphia Parking Authority, Pennsylvania, Airport 9/09 at 101.00 AAA 3,356,340
Parking Revenue Bonds, Series 1999, 5.250%, 9/01/29 -
FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 2,120,191
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.3%
1,355 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA 1,498,386
District, General Obligation Bonds, Series 1996,
5.850%, 7/15/12 (Pre-refunded to 7/15/06) - FGIC Insured
2,000 Hampton Township School District, Allegheny County, 11/04 at 100.00 AAA 2,099,220
Pennsylvania, General Obligation Bonds, Series 1995,
6.750%, 11/15/21 (Pre-refunded to 11/15/04) -
AMBAC Insured
1,030 Pittsburgh Water and Sewer Authority, Pennsylvania, No Opt. Call AAA 1,074,918
Water and Sewer System Revenue Refunding Bonds,
Series 1986, 7.625%, 9/01/04 - FGIC Insured
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,369,720
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,894,840
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded to 11/15/15) - FGIC Insured
5,450 West View Borough, Municipal Authority, Allegheny County, No Opt. Call AAA 7,691,640
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4%
$ 1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA $ 1,320,838
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
2,785 Carbon County Industrial Development Authority, No Opt. Call BBB- 3,030,498
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
4,000 Lehigh County Industrial Development Authority, 8/05 at 102.00 AAA 4,335,360
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Pennsylvania Power & Light Company Project, Series 1995A,
6.150%, 8/01/29 - MBIA Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,972,010
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
3,700 York County Industrial Development Authority, 3/12 at 101.00 Baa1 3,728,934
Pennsylvania, Pollution Control Revenue Refunding Bonds,
PSEG Power Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 16.4%
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,204,350
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company Project, Series 2001, 5.350%, 10/01/31
(Alternative Minimum Tax) - AMBAC Insured
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewer Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,667,025
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,544,154
Erie, Pennsylvania, Water Authority, Water Revenue Bonds,
Series 2001A:
2,670 0.000%, 12/01/23 - MBIA Insured No Opt. Call AAA 986,912
5,000 5.200%, 12/01/30 - MBIA Insured 12/11 at 100.00 AAA 5,209,450
1,250 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,329,838
Revenue Bonds, Series 2004, 5.000%, 4/01/20 (WI,
settling 1/07/04) - MBIA Insured
5,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102.00 Aaa 5,345,950
Facilities Revenue Refunding Bonds, Pennsylvania Gas
and Water Company Project, Series 1994A,
7.000%, 12/01/17 (Alternative Minimum Tax) -
AMBAC Insured
Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series 2001A:
5,525 5.375%, 11/01/20 - FGIC Insured 11/12 at 100.00 AAA 6,057,332
10,250 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 10,510,555
------------------------------------------------------------------------------------------------------------------------------------
$ 375,640 Total Long-Term Investments (cost $354,927,966) - 148.1% 378,170,061
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.4%
6,000 Puerto Rico Government Development Bank, Adjustable A-1 6,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.060%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 6,000 Total Short-Term Investments (cost $6,000,000) 6,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $360,927,966) - 150.5% 384,170,061
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 3,052,412
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.7)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $255,222,473
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
43
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 11.8%
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,060,800
Pennsylvania, College Revenue Bonds, Thiel College,
Series 1999A, 5.375%, 11/15/29 - ACA Insured
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BBB- 3,018,210
Pennsylvania, College Revenue Bonds, Immaculata College,
Series 1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Refunding
Bonds, Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AAA 1,875,364
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,474,767
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,085,800
1,000 Pennsylvania Higher Educational Facilities Authority, 5/08 at 101.00 Aaa 1,060,930
Revenue Bonds, LaSalle University, Series 1998,
5.250%, 5/01/23 - MBIA Insured
2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 AA 2,334,675
Revenue Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,537,155
Bonds, Temple University, Series 2001, 5.000%, 7/15/31 -
MBIA Insured
4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 4,355,917
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
5,750 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 5,847,980
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
1,310 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 AA 1,397,325
Revenue Bonds, Ursinus College, Series 2003,
5.500%, 1/01/24 - RAAI Insured
750 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 820,935
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/19
2,500 West Cornwall Township Municipal Authority, 12/11 at 100.00 BBB+ 2,608,950
Pennsylvania, College Revenue Bonds, Elizabethtown
College Project, Series 2001, 5.900%, 12/15/18
495 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/04 at 101.00 N/R 501,192
College Revenue Refunding Bonds, College Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 18.3%
8,500 Allegheny County Hospital Development Authority, 5/06 at 102.00 AAA 9,255,480
Pennsylvania, Hospital Revenue Bonds, South Hills
Health System, Series 1996A, 5.875%, 5/01/26 -
MBIA Insured
14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 15,101,660
Pennsylvania, Health Center Revenue Bonds, University of
Pittsburgh Medical Center System, Series 1997A,
5.625%, 4/01/27 - MBIA Insured
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,348,670
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB+ 5,061,900
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
2,400 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,344,224
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
4,700 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101.00 A 4,832,822
University of Pennsylvania Health Services Revenue Bonds,
Series 1996A, 5.750%, 1/01/22
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BBB- 1,778,700
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,735,420
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
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 $ 1,879,571
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,321,260
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.2%
4,345 Bucks County Redevelopment Authority, Pennsylvania, 2/04 at 100.00 Baa2 4,233,116
Second Lien Multifamily Mortgage Revenue Bonds,
Section 8 Assisted, Country Commons Apartments,
Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, No Opt. Call AAA 2,087,360
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Alternative Minimum Tax) (Mandatory put 4/01/22)
1,550 Luzerne County Housing Corporation, Pennsylvania, 3/04 at 100.00 Aaa 1,550,202
Mortgage Revenue Refunding Bonds, FHA-Insured
Mortgage Loan, Freeland Apartments Section 8
Assisted Project, Series 1993, 6.125%, 7/15/23
2,345 Swissvale Housing Development Corporation, Allegheny 1/04 at 100.00 Aa2 2,345,469
County, Pennsylvania, Multifamily Mortgage Revenue
Refunding Bonds, FHA-Insured Mortgage Loan - Section 8
Assisted Swissvale Project, Series 1993C, 6.100%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.5%
1,280 Allegheny County Residential Finance Authority, 11/10 at 100.00 Aaa 1,347,251
Pennsylvania, GNMA Mortgage Backed Securities
Program, Single Family Mortgage Revenue Bonds,
Series 2000II-2, 5.900%, 11/01/32 (Alternative
Minimum Tax)
1,120 Pennsylvania Housing Finance Agency, Single Family No Opt. Call AA+ 1,186,629
Mortgage Revenue Bonds, Series 1996-47,
6.750%, 10/01/06 (Alternative Minimum Tax)
170 Pennsylvania Housing Finance Agency, Single Family 10/06 at 102.00 AA+ 177,285
Mortgage Revenue Bonds, Series 1997-54A,
6.150%, 10/01/22 (Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 1997-56A:
1,500 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 1,578,225
4,000 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 4,164,040
1,420 Pennsylvania Housing Finance Agency, Single Family 4/07 at 101.50 AA+ 1,472,994
Mortgage Revenue Bonds, Series 1997-58A,
5.950%, 10/01/28 (Alternative Minimum Tax)
1,645 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 1,686,092
Mortgage Revenue Bonds, Series 1997-59A,
5.700%, 4/01/17 (Alternative Minimum Tax)
905 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 942,748
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (Alternative Minimum Tax)
1,500 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/06 at 102.00 AAA 1,534,350
Mortgage Revenue Bonds, Series 1996C,
6.500%, 10/01/23 (Alternative Minimum Tax)
Pittsburgh Urban Redevelopment Authority, Pennsylvania,
Mortgage Revenue Bonds, Series 1997A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA 894,830
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 807,404
155 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/04 at 101.00 AAA 157,246
Mortgage Revenue Bonds, Series 1992D, 6.500%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.0%
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/04 at 102.00 BB- 1,874,020
Solid Waste Disposal Revenue Bonds, New Morgan
Landfill Company, Inc. Project, Series 1994,
6.500%, 4/01/19 (Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,007,000
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 - AMBAC Insured No Opt. Call AAA 2,253,920
1,550 7.000%, 1/01/07 - AMBAC Insured No Opt. Call AAA 1,772,875
1,000 7.000%, 7/01/07 - AMBAC Insured No Opt. Call AAA 1,162,500
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,107,913
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
45
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.3%
$ 1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA $ 1,018,320
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
1,230 Pennsylvania Economic Development Financing Authority 6/08 at 100.00 BB+ 890,926
Revenue Bonds, Northwestern Human Services, Inc. Project,
Series 1998A, 5.250%, 6/01/28
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 2/04 at 100.00 AA 1,003,580
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,165,120
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run Retirement
Center, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,308,852
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,569,001
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.1%
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 530,005
Environmental Improvement Revenue Refunding Bonds,
Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 4,547,025
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.1%
Butler County, Pennsylvania, General Obligation Bonds,
Series 2003:
1,000 5.250%, 7/15/19 - FGIC Insured 7/13 at 100.00 AAA 1,099,550
1,000 5.250%, 7/15/21 - FGIC Insured 7/13 at 100.00 AAA 1,085,490
1,200 5.250%, 7/15/23 - FGIC Insured 7/13 at 100.00 AAA 1,286,952
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,214,234
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
Chichester School District, Delaware County, Pennsylvania,
General Obligation Bonds, Series 1999:
3,125 0.000%, 3/01/23 - FGIC Insured No Opt. Call AAA 1,200,344
3,125 0.000%, 3/01/24 - FGIC Insured No Opt. Call AAA 1,124,063
3,125 0.000%, 3/01/25 - FGIC Insured No Opt. Call AAA 1,053,156
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 676,743
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,036,255
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 996,325
2,750 0.000%, 11/01/23 - FSA Insured 5/16 at 69.88 AAA 970,502
1,500 Lancaster County, Pennsylvania, General Obligation Bonds, 11/12 at 100.00 Aaa 1,544,400
Series 2002A, 4.700%, 11/01/20 - FGIC Insured
4,305 Montgomery County, Pennsylvania, General Obligation 10/06 at 100.00 Aaa 4,623,096
Bonds, Series 1996B, 5.375%, 10/15/21
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,000 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,070,900
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,062,250
1,735 5.000%, 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,832,160
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,099,620
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,369,085
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,701,556
3,500 Pennsylvania, General Obligation Refunding Bonds, Second No Opt. Call AAA 3,952,270
Series 2002, 5.000%, 10/01/11 - FGIC Insured
1,000 Philadelphia, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 1,109,990
Series 2003A, 5.000%, 2/15/12
2,000 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 2,368,940
Refunding Bonds, Series 1995A, 6.250%, 9/01/09 -
AMBAC Insured
State Public School Building Authority, Berks County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
2,930 5.000%, 2/01/20 - FGIC Insured 2/13 at 100.00 Aaa 3,111,074
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,063,718
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District Project, Series 2003:
$ 1,000 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA $ 1,087,600
1,355 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 1,465,731
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, York City School District, Series 2003:
1,575 5.000%, 5/01/18 - FSA Insured 5/13 at 100.00 Aaa 1,698,496
2,550 4.000%, 5/01/21 - FSA Insured 5/13 at 100.00 Aaa 2,410,796
4,550 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,675,398
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/33 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,628,021
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,102,880
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.6%
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100.00 AAA 4,378,751
Local Government Revenue Bonds, Series 1996A,
6.000%, 4/15/26 - AMBAC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,000 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,128,980
2,400 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,679,960
2,000 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,219,360
3,500 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 3,867,325
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
8,500 Pittsburgh and Allegheny County Public Auditorium Authority, 8/09 at 101.00 AAA 8,293,620
Pennsylvania, Hotel Room Excise Tax Revenue Bonds,
Series 1999, 4.500%, 2/01/29 - AMBAC Insured
2,405 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,811,132
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
5,725 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 5,743,606
Revenue Bonds, Series 1999A, 4.750%, 3/01/29 - FGIC Insured
York County School of Technology Authority, Pennsylvania,
Lease Revenue Bonds, Series 2003:
1,000 5.375%, 2/15/20 - FGIC Insured 2/13 at 100.00 Aaa 1,094,980
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,101,210
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 15.5%
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,451,547
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,841,408
Revenue Bonds, AMTRAK 30th Street Station Parking
Garage Project, Series 2002, 5.875%, 6/01/33 - ACA Insured
3,575 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/11 at 101.00 AAA 3,689,150
Revenue Bonds, Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,330,800
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 (Alternative
Minimum Tax) - FGIC Insured
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 6,936,858
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,421,411
Revenue Bonds, Series 2004, 5.000%, 9/15/33 (WI, settling
1/07/04) - FGIC Insured
7,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 7,186,270
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
47
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.9%
$ 2,000 Bangor Area School District, Northampton County, 3/06 at 100.00 AAA $ 2,172,780
Pennsylvania, General Obligation Bonds, Series 1996B,
5.500%, 3/15/18 (Pre-refunded to 3/15/06) - FGIC Insured
2,500 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA 2,766,100
District, General Obligation Bonds, Series 1996,
5.875%, 7/15/16 (Pre-refunded to 7/15/06) -
FGIC Insured
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,470,852
Series 2000, 5.625%, 11/15/28 (Pre-refunded to
11/15/10) - AMBAC Insured
17,895 Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100.00 AAA 20,182,339
Tax-Exempt Revenue Bonds, City of Harrisburg Project,
Series 1997-II, 5.625%, 9/15/22 (Pre-refunded
to 9/15/07) - MBIA Insured
7,900 Montgomery County Higher Education and Health Authority 1/09 at 101.00 AAA 8,886,710
Revenue Bonds, Pennsylvania, Pottstown Healthcare
Corporation, Series 1998, 5.000%, 1/01/27 (Pre-refunded
to 1/01/09) - FSA Insured
1,380 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,705,570
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 No Opt. Call AAA 1,191,280
3,690 6.650%, 12/01/19 No Opt. Call AAA 4,679,916
1,650 West View Borough, Municipal Authority, Allegheny No Opt. Call AAA 2,328,662
County, Pennsylvania, Special Obligation Bonds,
Series 1985A, 9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.9%
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,188,754
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, 6/08 at 102.00 AAA 8,276,560
Pennsylvania, Exempt Facilities Revenue Bonds,
Shippingport Project, Series 1998A, 5.375%, 6/01/28
(Alternative Minimum Tax) - AMBAC Insured
3,785 Carbon County Industrial Development Authority, No Opt. Call BBB- 4,118,648
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, 5/07 at 102.00 AAA 8,426,646
Pennsylvania, Pollution Control Revenue Bonds, Metropolitan
Edison Company Project, Series 1997A, 5.950%, 5/01/27
(Alternative Minimum Tax) - AMBAC Insured
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 2,018,680
Pollution Control Revenue Refunding Bonds, PSEG Power
LLC Project, Series 2001A, 5.850%, 6/01/27 (Alternative
Minimum Tax)
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,736,336
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
5,750 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 7/09 at 101.00 AAA 5,873,108
General Ordinance, Second Series 1999, 5.000%, 7/01/29 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.2%
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewer 12/10 at 101.00 AAA 2,168,220
Revenue Bonds, Series 2000, 5.500%, 12/01/30 -
MBIA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,228,400
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax) - FGIC Insured
1,315 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,390,008
Revenue Bonds, Series 2004, 5.000%, 4/01/21
(WI, settling 1/07/04) - MBIA Insured
3,360 Mercer County Industrial Development Authority, 7/10 at 100.00 AAA 3,769,282
Pennsylvania, Water Facility Revenue Bonds, Consumers
Water Company, Shenango Valley Division Project,
Series 2000, 6.000%, 7/01/30 (Alternative Minimum
Tax) - MBIA Insured
Norristown Municipal Waste Authority, Pennsylvania, Sewer
Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,259,882
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,781,985
5,500 Northumberland County Industrial Development Authority, 4/04 at 101.50 AA- 5,630,570
Pennsylvania, Exempt Facilities Revenue Bonds, Roaring
Creek Water Company Project, Series 1993, 6.375%, 10/15/23
(Alternative Minimum Tax)
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,730 Philadelphia, Pennsylvania, Water and Wastewater Revenue No Opt. Call AAA $ 3,265,567
Bonds, Series 1995, 6.250%, 8/01/10 - MBIA Insured
10,000 Pittsburgh Water and Sewer Authority, Pennsylvania, Water No Opt. Call AAA 2,801,200
and Sewer System First Lien Revenue Bonds, Series 1998B,
0.000%, 9/01/28 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 356,880 Total Long-Term Investments (cost $332,306,668) - 146.4% 358,232,023
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.8%
1,000 Chester County Industrial Development Authority, VMIG-1 1,000,000
Pennsylvania, Archdiocese of Philadelphia, Variable
Revenue Demand Bonds, Series 2001, 1.300%, 7/01/31+
1,000 Puerto Rico Government Development Bank, Adjustable A-1 1,000,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.060%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $334,306,668) - 147.2% 360,232,023
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,531,842
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.3)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $244,663,865
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
49
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
$ 2,200 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 2,346,564
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 33.1%
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,321,190
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
1,825 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,869,621
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,461,895
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
2,370 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 2,516,348
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, State 6/12 at 100.00 Aaa 1,066,320
System of Higher Education Revenue Bonds, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,090 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,206,052
Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,554,750
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,429,330
Bonds, Series 2002, 5.250%, 8/15/14
2,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 2,055,240
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.0%
200 Allegheny County Hospital Development Authority, 11/10 at 102.00 B 215,266
Pennsylvania, Revenue Bonds, West Penn Allegheny
Health System, Series 2000B, 9.250%, 11/15/30
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,536,175
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 586,056
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
2,150 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 A 2,274,077
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,057,160
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
1,250 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,288,425
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.8%
1,975 Allegheny County Residential Finance Authority, 11/08 at 102.00 Aaa 2,029,550
Pennsylvania, Single Family Mortgage Revenue Bonds,
Series 1998-DD2, 5.400%, 11/01/29 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.5%
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,007,000
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,412,688
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.5%
$ 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R $ 999,460
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 2,159,514
Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 2,950,699
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 5.7%
3,000 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 3,031,350
Exempt Facilities Revenue Bonds, National Gypsum Project,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 34.5%
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,691,373
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
Lake-Lehman School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2001:
1,315 0.000%, 4/01/25 - MBIA Insured No Opt. Call AAA 443,576
1,315 0.000%, 4/01/26 - MBIA Insured No Opt. Call AAA 420,537
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,235,578
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 -
FGIC Insured
2,000 Pennsylvania General Obligation Bonds, Second 9/11 at 101.00 AA 2,221,600
Series 2001, 5.000%, 9/15/13
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,807,075
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,505,380
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
9,270 Reading School District, Berks County, Pennsylvania, General 7/11 at 54.58 AAA 3,550,410
Obligation Bonds, Series 2001A, 0.000%, 1/15/22 -
FGIC Insured
1,230 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,339,532
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.9%
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,128,980
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, 4/12 at 100.00 AAA 1,664,565
Revenue Bonds, Philadelphia Neighborhood Transformation
Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 1,104,950
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 818,209
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.9%
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,052,480
Revenue Bonds, AMTRAK 30th Street Station Parking
Garage Project, Series 2002, 5.875%, 6/01/33 -
ACA Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,807,890
Pennsylvania, Airport Revenue Bonds, Philadelphia
Airport System Project, Series 2001A, 5.250%, 7/01/28
(Alternative Minimum Tax) - FGIC Insured
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 2,351,661
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.7%
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 528,335
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
3,100 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,468,776
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay Montgomery County Project,
Series 2002A, 5.000%, 11/01/10 - MBIA Insured
51
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
Philadelphia, Pennsylvania, Gas Works Revenue Bonds,
General Ordinance, Fourth Series 1998:
$ 1,000 5.250%, 8/01/18 - FSA Insured 8/13 at 100.00 AAA $ 1,106,627
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,099,920
------------------------------------------------------------------------------------------------------------------------------------
$ 79,355 Total Long-Term Investments (cost $71,286,384) - 145.0% 76,722,184
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 1,182,876
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (47.3)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $52,905,060
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
52
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 21.9%
$ 700 Allegheny County Higher Education Building Authority, No Opt. Call AA- $ 700,994
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,500 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,561,725
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,595,290
Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 -
FGIC Insured
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 2,049,540
Bonds, Temple University, Series 2001, 5.000%, 7/15/31 -
MBIA Insured
5,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 5,709,750
Bonds, Series 2002, 5.250%, 8/15/12
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 1,086,520
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 10.4%
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
100 9.250%, 11/15/22 11/10 at 102.00 B 107,633
100 9.250%, 11/15/30 11/10 at 102.00 B 107,633
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,028,940
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 586,056
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,000 Philadelphia Hospitals and Higher Education Facilities 5/04 at 102.00 BBB 1,009,630
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,570,814
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 6.250%, 6/01/22
600 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 618,444
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.8%
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,357,960
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5%
965 Allegheny County Residential Finance Authority, Pennsylvania, 5/12 at 102.00 Aaa 1,007,981
Health Care Facilities Revenue Bonds, Lemington Home for
the Aged Project, Series 2002A - GNMA Collateralized,
5.750%, 5/20/37
1,155 Bucks County Industrial Development Authority, 10/12 at 101.00 BBB+ 1,186,878
Pennsylvania, Revenue Bonds, Pennswood Village Project,
Series 2002A, 6.000%, 10/01/34
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 999,460
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.2%
2,190 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 2,419,227
Environmental Improvement Revenue Bonds, USX Corp.
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
53
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS December 31, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.9%
$ 1,500 Ambridge Area School District, Beaver County, Pennsylvania, 11/12 at 100.00 AAA $ 1,580,820
General Obligation Bonds, Series 2002B, 5.125%, 5/01/23 -
FGIC Insured
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,856,128
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
765 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 814,916
General Obligation Bonds, Series 2002B,
5.375%, 10/01/29 - FGIC Insured
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Bonds, Series 2002 Refunding:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 816,075
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,120,080
4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 4,678,810
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 431,145
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
4,000 Pennsylvania General Obligation Bonds, Second 9/11 at 101.00 AA 4,377,200
Series 2001, 5.000%, 9/15/15
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,143,300
Bonds, Series 2002A, 5.500%, 2/01/31 - FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,559,371
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 36.5%
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,685,880
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,112,660
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 4,161,120
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,128,980
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,169,144
Bonds, Series 2001, 5.500%, 7/15/33 - AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,065,920
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.125%, 10/01/26 - FSA Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, Philadelphia Neighborhood Transformation
Initiative, Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AAA 1,113,450
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,913,503
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 818,209
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 3.6%
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,052,480
Revenue Bonds, AMTRAK 30th Street Station Parking
Garage Project, Series 2002, 5.875%, 6/01/33 -
ACA Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,014,480
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.0%
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,323,980
Series 2001, 5.500%, 11/15/26 (Pre-refunded to 5/15/11) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.6%
3,135 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,507,940
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
2,420 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 2,643,656
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.2%
$ 4,500 Bucks County Industrial Development Authority, 3/12 at 100.00 AAA $ 4,756,949
Pennsylvania, Water Facility Revenue Bonds, Pennsylvania
Suburban Water Company Project, Series 2002,
5.550%, 9/01/32 (Alternative Minimum Tax) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 79,525 Total Long-Term Investments (cost $80,372,470) - 147.6% 85,550,671
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.6% 927,639
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.2)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $57,978,310
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions: Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings: Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
55
Statement of
ASSETS AND LIABILITIES December 31, 2003 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $446,202,618, $263,703,624,
$138,724,096 and $97,433,302, respectively) $470,015,640 $283,598,297 $146,032,474 $102,140,891
Cash -- 1,157,796 -- --
Receivables:
Interest 7,124,886 4,043,066 2,352,765 1,486,312
Investments sold 4,358,640 -- -- --
Other assets 25,734 20,393 6,078 4,797
------------------------------------------------------------------------------------------------------------------------------------
Total assets 481,524,900 288,819,552 148,391,317 103,632,000
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Bank borrowings 937,959 -- 212,280 114,631
Investments purchased 4,448,169 2,764,783 -- --
Accrued expenses:
Management fees 255,630 154,949 43,466 30,554
Other 89,930 121,041 17,988 19,481
Preferred share dividends payable 5,966 3,855 1,591 473
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,737,654 3,044,628 275,325 165,139
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $313,787,246 $194,174,924 $100,115,992 $ 68,966,861
====================================================================================================================================
Common shares outstanding 20,311,361 12,019,997 6,550,253 4,507,997
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.45 $ 16.15 $ 15.28 $ 15.30
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 203,114 $ 120,200 $ 65,503 $ 45,080
Paid-in surplus 286,305,865 171,545,204 92,973,489 63,916,602
Undistributed (Over-distribution of) net investment income 3,171,319 2,291,657 909,320 352,014
Accumulated net realized gain (loss) from investments 293,926 323,190 (1,140,698) (54,424)
Net unrealized appreciation of investments 23,813,022 19,894,673 7,308,378 4,707,589
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $313,787,246 $194,174,924 $100,115,992 $ 68,966,861
====================================================================================================================================
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.
56
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $360,927,966, $334,306,668,
$71,286,384 and $80,372,470, respectively) $384,170,061 $360,232,023 $76,722,184 $85,550,671
Cash 1,999,580 1,490,070 157,423 --
Receivables:
Interest 4,880,550 5,048,080 1,056,987 1,316,628
Investments sold -- 25,000 -- --
Other assets 21,601 33,299 6,733 4,660
------------------------------------------------------------------------------------------------------------------------------------
Total assets 391,071,792 366,828,472 77,943,327 86,871,959
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables:
Bank borrowings -- -- -- 349,271
Investments purchased 3,557,253 3,736,243 -- --
Accrued expenses:
Management fees 208,087 195,554 23,039 25,570
Other 77,838 126,101 14,407 16,808
Preferred share dividends payable 6,141 6,709 821 2,000
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,849,319 4,064,607 38,267 393,649
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $255,222,473 $244,663,865 $52,905,060 $57,978,310
====================================================================================================================================
Common shares outstanding 16,284,082 15,758,819 3,298,049 3,723,722
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.67 $ 15.53 $ 16.04 $ 15.57
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 162,841 $ 157,588 $ 32,980 $ 37,237
Paid-in surplus 230,462,158 215,467,280 46,776,861 52,782,060
Undistributed (Over-distribution of) net investment income 1,316,204 2,847,918 588,766 (19,182)
Accumulated net realized gain (loss) from investments 39,175 265,724 70,653 (6)
Net unrealized appreciation of investments 23,242,095 25,925,355 5,435,800 5,178,201
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $255,222,473 $244,663,865 $52,905,060 $57,978,310
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
57
Statement of
OPERATIONS Six Months Ended December 31, 2003 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $12,397,738 $7,176,482 $3,674,321 $2,621,477
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,502,662 911,323 473,145 332,013
Preferred shares - auction fees 204,714 115,831 60,555 43,524
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,042 5,042
Shareholders' servicing agent fees and expenses 28,529 16,452 1,177 311
Custodian's fees and expenses 56,412 33,911 16,123 19,185
Directors'/Trustees' fees and expenses 5,261 3,081 1,521 1,003
Professional fees 9,993 8,168 7,214 5,688
Shareholders' reports - printing and mailing expenses 25,712 12,544 1,143 7,667
Stock exchange listing fees 7,971 7,815 302 208
Investor relations expense 8,159 4,718 8,007 5,904
Other expenses 16,658 8,963 5,929 10,693
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,881,194 1,137,929 580,158 431,238
Custodian fee credit (6,555) (2,971) (3,950) (2,791)
Expense reimbursement -- -- (218,960) (153,237)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,874,639 1,134,958 357,248 275,210
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 10,523,099 6,041,524 3,317,073 2,346,267
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 3,319,859 2,413,049 167,766 26,246
Change in net unrealized appreciation (depreciation) of investments (3,376,788) (2,344,734) (681,663) (577,058)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (56,929) 68,315 (513,897) (550,812)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (466,333) (259,564) (180,900) (118,590)
From accumulated net realized gains from investments (229,747) (105,619) -- (18,535)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (696,080) (365,183) (180,900) (137,125)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $ 9,770,090 $5,744,656 $2,622,276 $1,658,330
====================================================================================================================================
See accompanying notes to financial statements.
58
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,645,255 $ 9,291,502 $1,917,940 $2,051,604
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,222,103 1,149,621 250,903 279,202
Preferred shares - auction fees 166,867 149,778 31,539 32,437
Preferred shares - dividend disbursing agent fees 15,123 15,123 5,042 5,042
Shareholders' servicing agent fees and expenses 31,353 24,866 732 1,270
Custodian's fees and expenses 43,265 40,698 7,968 10,834
Directors'/Trustees' fees and expenses 4,046 3,887 710 740
Professional fees 9,703 10,112 4,984 5,323
Shareholders' reports - printing and mailing expenses 16,193 14,916 3,334 7,413
Stock exchange listing fees 7,932 7,825 152 172
Investor relations expense 6,277 6,104 4,475 5,205
Other expenses 14,853 2,344 4,365 7,619
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 1,537,715 1,425,274 314,204 355,257
Custodian fee credit (9,582) (20,049) (3,938) (2,528)
Expense reimbursement -- -- (115,801) (128,863)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,528,133 1,405,225 194,465 223,866
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 8,117,122 7,886,277 1,723,475 1,827,738
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 1,357,628 1,133,694 188,646 51,720
Change in net unrealized appreciation (depreciation) of investments (5,167,935) (1,349,118) (358,406) (681,571)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (3,810,307) (215,424) (169,760) (629,851)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (438,130) (337,818) (61,114) (81,872)
From accumulated net realized gains from investments (18,006) (131,627) (40,997) (49,773)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from distributions
to Preferred shareholders (456,136) (469,445) (102,111) (131,645)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from operations $ 3,850,679 $ 7,201,408 $1,451,604 $1,066,242
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
CHANGES IN NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03 12/31/03 6/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,523,099 $ 21,238,667 $ 6,041,524 $ 12,482,999 $ 3,317,073 $ 6,802,978
Net realized gain (loss)
from investments 3,319,859 1,346,875 2,413,049 1,350,825 167,766 (1,018,294)
Change in net unrealized
appreciation
(depreciation)
of investments (3,376,788) 10,671,351 (2,344,734) 6,255,134 (681,663) 6,715,619
Distributions to Preferred
Shareholders:
From net investment income (466,333) (1,419,468) (259,564) (886,855) (180,900) (452,229)
From accumulated net
realized gains
from investments (229,747) (169,479) (105,619) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 9,770,090 31,667,946 5,744,656 19,202,103 2,622,276 12,048,074
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,739,871) (18,736,412) (5,628,616) (11,026,672) (3,058,331) (5,713,922)
From accumulated net
realized gains
from investments (4,021,804) (1,345,170) (1,617,686) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable
to Common shares from
distributions to
Common shareholders (13,761,675) (20,081,582) (7,246,302) (11,026,672) (3,058,331) (5,713,922)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 1,664 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 809,244 575,330 108,547 -- 48,641 --
Preferred shares offering costs -- -- -- -- -- 37,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 809,244 575,330 108,547 -- 50,305 37,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (3,182,341) 12,161,694 (1,393,099) 8,175,431 (385,750) 6,371,442
Net assets applicable to Common
shares at the beginning
of period 316,969,587 304,807,893 195,568,023 187,392,592 100,501,742 94,130,300
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $313,787,246 $316,969,587 $194,174,924 $195,568,023 $100,115,992 $100,501,742
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 3,171,319 $ 2,854,424 $ 2,291,657 $ 2,138,313 $ 909,320 $ 831,478
====================================================================================================================================
See accompanying notes to financial statements.
60
NEW JERSEY PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM
DIVIDEND ADVANTAGE 2 (NUJ) QUALITY (NQP) INCOME 2 (NPY)
--------------------------------- --------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03 12/31/03 6/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,346,267 $ 4,719,256 $ 8,117,122 $ 16,535,941 $ 7,886,277 $ 16,321,628
Net realized gain (loss)
from investments 26,246 345,915 1,357,628 1,884,672 1,133,694 1,698,255
Change in net unrealized
appreciation
(depreciation)
of investments (577,058) 4,054,385 (5,167,935) 17,527,987 (1,349,118) 10,810,137
Distributions to Preferred
Shareholders:
From net investment income (118,590) (345,886) (438,130) (1,392,205) (337,818) (1,223,173)
From accumulated net realized
gains from investments (18,535) (20,192) (18,006) -- (131,627) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations 1,658,330 8,753,478 3,850,679 34,556,395 7,201,408 27,606,847
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,069,084) (4,137,816) (7,488,033) (14,842,385) (7,491,389) (14,623,151)
From accumulated net
realized gains
from investments (243,881) (143,736) (204,569) -- (1,741,706) --
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,312,965) (4,281,552) (7,692,602) (14,842,385) (9,233,095) (14,623,151)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 7,028 7,924 140,232 283,963 91,875 84,070
Preferred shares offering costs (1,400) (17,393) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 5,628 (9,469) 140,232 283,963 91,875 84,070
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (649,007) 4,462,457 (3,701,691) 19,997,973 (1,939,812) 13,067,766
Net assets applicable to Common
shares at the beginning
of period 69,615,868 65,153,411 258,924,164 238,926,191 246,603,677 233,535,911
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $68,966,861 $69,615,868 $255,222,473 $258,924,164 $244,663,865 $246,603,677
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 352,014 $ 193,421 $ 1,316,204 $ 1,125,245 $ 2,847,918 $ 2,790,848
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,723,475 $ 3,553,126 $ 1,827,738 $ 3,732,725
Net realized gain (loss) from investments 188,646 685,967 51,720 618,914
Change in net unrealized appreciation
(depreciation) of investments (358,406) 3,644,254 (681,571) 4,220,745
Distributions to Preferred Shareholders:
From net investment income (61,114) (246,805) (81,872) (317,893)
From accumulated net realized gains
from investments (40,997) (47,322) (49,773) (17,220)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to
Common shares from operations 1,451,604 7,589,220 1,066,242 8,237,271
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,587,275) (3,033,667) (1,709,496) (3,418,107)
From accumulated net realized gains
from investments (570,305) (322,656) (579,472) (109,844)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,157,580) (3,356,323) (2,288,968) (3,527,951)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 1,664 -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 18,011 -- -- 25,883
Preferred shares offering costs -- 51,983 (1,402) (13,359)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 19,675 51,983 (1,402) 12,524
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (686,301) 4,284,880 (1,224,128) 4,721,844
Net assets applicable to Common
shares at the beginning of period 53,591,361 49,306,481 59,202,438 54,480,594
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $52,905,060 $53,591,361 $57,978,310 $59,202,438
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 588,766 $ 513,680 $ (19,182) $ (55,552)
====================================================================================================================================
See accompanying notes to financial statements.
62
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund,
Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common
shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
are traded on the New York Stock Exchange while Common shares of New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors/Trustees of the Funds, or its designee, may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At December 31, 2003, New
Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), Pennsylvania
Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) had outstanding
when-issued and/or delayed delivery purchase commitments of $4,448,169,
$2,764,783, $3,557,253 and $3,736,243, respectively. There were no such
outstanding purchase commitments in any of the other Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
63
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
applicable state, to retain such tax-exempt status when distributed to
shareholders of the Funds.
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 such distributions are determined in
accordance with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
--------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
================================================================================
64
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the six months ended December 31, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
------------------------ ----------------------- -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03 12/31/03 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 52,712 37,370 7,067 -- 3,253 --
========================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
-------------------------- ------------------------ -------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03 12/31/03 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 463 526 8,764 18,725 5,760 5,597
========================================================================================================
65
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ ---------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
12/31/03 6/30/03 12/31/03 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of
distributions 1,092 -- -- 1,709
========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended December 31, 2003, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Purchases $57,925,706 $38,799,241 $11,003,794 $5,424,980
Sales and maturities 62,906,752 41,034,396 13,358,341 8,574,843
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Purchases $37,794,545 $45,931,379 $5,905,187 $2,866,260
Sales and maturities 39,556,314 37,943,772 4,553,323 1,023,210
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At December 31, 2003, the cost of investments were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Cost of investments $446,162,366 $263,563,762 $138,696,923 $97,419,444
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $360,903,248 $334,128,724 $71,254,622 $80,364,247
================================================================================
66
Gross unrealized appreciation and gross unrealized depreciation of investments
at December 31, 2003, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $25,900,886 $20,423,651 $7,676,552 $4,905,039
Depreciation (2,047,612) (389,116) (341,001) (183,592)
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $23,853,274 $20,034,535 $7,335,551 $4,721,447
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $23,403,043 $27,234,717 $5,480,834 $5,186,424
Depreciation (136,230) (1,131,418) (13,272) --
----------------------------------------------------------------------------------------------------------
Net unrealized appreciation of investments $23,266,813 $26,103,299 $5,467,562 $5,186,424
==========================================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2003, the Funds' last fiscal year end, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $4,388,218 $2,935,001 $1,314,052 $532,021
Undistributed net ordinary income * 41,048 1,718 72 181,959
Undistributed net long-term capital gains 1,228,997 -- -- --
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,277,915 $3,796,469 $752,413 $228,907
Undistributed net ordinary income * 46,683 23,349 6,531 383,089
Undistributed net long-term capital gains -- 1,005,363 487,758 194,764
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
67
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
The tax character of distributions paid during the fiscal year ended June 30,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,112,448 $11,722,514 $6,130,175 $4,484,545
Distributions from net ordinary income * -- 133,874 -- 163,988
Distributions from net long-term capital gains 1,514,649 -- -- --
==========================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,232,380 $15,704,179 $3,253,465 $3,737,200
Distributions from net ordinary income * -- 93,494 107,098 127,064
Distributions from net long-term capital gains -- -- 269,069 --
==========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At June 30, 2003, the Funds' last fiscal year end, the following Funds had
unused capital loss carryforwards available for federal income tax purposes to
be applied against future capital gains, if any. If not applied, the
carryforwards will expire as follows:
NEW JERSEY NEW JERSEY PENNSYLVANIA
PREMIUM DIVIDEND INVESTMENT
INCOME ADVANTAGE QUALITY
(NNJ) (NXJ) (NQP)
--------------------------------------------------------------------------------
Expiration year:
2009 $366,812 $ -- $ --
2010 -- 278,092 1,102,880
--------------------------------------------------------------------------------
Total $366,812 $278,092 $1,102,880
================================================================================
New Jersey Dividend Advantage (NXJ) has elected to defer $1,030,383 of net
realized losses from investments incurred from November 1, 2002 through June 30,
2003 ("post-October losses") in accordance with Federal income tax regulations.
These post-October losses are treated as having arisen on the first day of the
current fiscal year.
68
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under New Jersey Investment Quality's (NQJ), New Jersey Premium Income's (NNJ),
Pennsylvania Investment Quality's (NQP) and Pennsylvania Premium Income 2's
(NPY) investment management agreements with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under New Jersey Dividend Advantage's (NXJ), New Jersey Dividend Advantage 2's
(NUJ), Pennsylvania Dividend Advantage's (NXM) and Pennsylvania Dividend
Advantage 2's (NVY) investment management agreements with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser, or its affiliates.
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.
69
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on February 2, 2004, to shareholders of record
on January 15, 2004, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Dividend per share $.0800 $.0780 $.0785 $.0765
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0790 $.0805 $.0765
================================================================================
70
Financial
HIGHLIGHTS (Unaudited)
71
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ -----------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY
INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $15.65 $ .51 $ -- $(.02) $(.01) $ .48 $(.48) $(.20) $ (.68)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
2000 15.14 1.20 (.63) (.29) (.01) .27 (.92) (.04) (.96)
1999 15.65 1.14 (.46) (.20) (.01) .47 (.93) (.03) (.96)
NEW JERSEY
PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 16.28 .50 -- (.02) (.01) .47 (.47) (.13) (.60)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
2000 14.92 1.08 (.62) (.25) -- .21 (.85) -- (.85)
1999 15.34 1.08 (.41) (.22) -- .45 (.87) -- (.87)
NEW JERSEY
DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 15.35 .51 (.08) (.03) -- .40 (.47) -- (.47)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
2001(a) 14.33 .14 .22 (.03) -- .33 (.14) -- (.14)
NEW JERSEY
DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 15.44 .52 (.12) (.03) -- .37 (.46) (.05) (.51)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(b) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
====================================================================================================================================
Total Returns
---------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
======================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $-- $15.45 $15.9400 4.42% 3.18%
2003 -- 15.65 15.9400 11.68 10.72
2002 -- 15.07 15.2200 4.19 6.56
2001 -- 15.03 15.5000 17.13 10.62
2000 -- 14.45 14.0625 (4.94) 1.94
1999 (.02) 15.14 15.8125 (2.33) 2.82
NEW JERSEY
PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 16.15 16.2700 4.96 3.01
2003 -- 16.28 16.1000 10.18 10.48
2002 -- 15.60 15.5000 7.88 7.91
2001 -- 15.27 15.1900 20.13 12.90
2000 -- 14.28 13.3750 (9.95) 1.64
1999 -- 14.92 15.8125 7.17 2.87
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 15.28 15.2100 2.58 2.72
2003 .01 15.35 15.3000 15.09 13.18
2002 -- 14.38 14.1200 (.17) 6.05
2001(a) (.13) 14.39 14.9900 .87 1.42
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 15.30 15.0600 1.18 2.55
2003 -- 15.44 15.4000 9.14 13.74
2002(b) (.14) 14.46 15.0400 1.29 1.98
======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $313,787 1.21%* 6.76%* 1.20%* 6.76%* 12%
2003 316,970 1.22 6.80 1.22 6.81 12
2002 304,808 1.25 7.35 1.23 7.36 22
2001 301,785 1.24 7.97 1.23 7.99 16
2000 288,810 1.22 8.27 1.21 8.28 11
1999 301,329 1.13 7.27 1.13 7.27 8
NEW JERSEY
PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 194,175 1.18* 6.27* 1.18* 6.28* 14
2003 195,568 1.20 6.48 1.20 6.48 13
2002 187,393 1.22 6.85 1.22 6.86 14
2001 183,451 1.25 7.14 1.24 7.15 6
2000 171,496 1.24 7.61 1.23 7.63 10
1999 178,704 1.24 7.00 1.24 7.00 10
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 100,116 1.18* 6.32* .73* 6.77* 8
2003 100,502 1.19 6.56 .74 7.01 8
2002 94,130 1.24 6.76 .75 7.25 7
2001(a) 94,187 1.05* 3.65* .66* 4.03* 1
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 68,967 1.27* 6.48* .81* 6.94* 5
2003 69,616 1.23 6.53 .76 7.00 12
2002(b) 65,153 1.07* 3.86* .67* 4.25* --
====================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
================================================================
NEW JERSEY
INVESTMENT
QUALITY (NQJ)
----------------------------------------------------------------
Year Ended 6/30:
2004(c) $162,000 $25,000 $73,424
2003 162,000 25,000 73,915
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
2000 162,000 25,000 69,569
1999 162,000 25,000 71,501
NEW JERSEY
PREMIUM INCOME (NNJ)
----------------------------------------------------------------
Year Ended 6/30:
2004(c) 91,600 25,000 77,995
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
2000 91,600 25,000 71,806
1999 91,600 25,000 73,773
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
----------------------------------------------------------------
Year Ended 6/30:
2004(c) 48,000 25,000 77,144
2003 48,000 25,000 77,345
2002 48,000 25,000 74,026
2001(a) 48,000 25,000 74,055
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
----------------------------------------------------------------
Year Ended 6/30:
2004(c) 34,500 25,000 74,976
2003 34,500 25,000 75,446
2002(b) 34,500 25,000 72,213
================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2003.
See accompanying notes to financial statements.
72-73 SPREAD
Financial HIGHLIGHTS (Unaudited) (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------ -----------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA
INVESTMENT QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $15.91 $ .50 $ (.24) $(.03) $-- $ .23 $ (.46) $(.01) $ (.47)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
2000 15.33 1.25 (.83) (.29) (.02) .11 (.98) (.07) (1.05)
1999 15.94 1.22 (.59) (.21) -- .42 (1.01) -- (1.01)
PENNSYLVANIA
PREMIUM INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 15.65 .50 -- (.02) (.01) .47 (.48) (.11) (.59)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
2000 14.30 1.06 (.78) (.27) -- .01 (.81) (.02) (.83)
1999 14.86 1.04 (.61) (.23) -- .20 (.76) -- (.76)
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 16.25 .52 (.05) (.02) (.01) .44 (.48) (.17) (.65)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
2001(a) 14.33 .14 .35 (.03) -- .46 (.15) -- (.15)
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 15.90 .49 (.17) (.02) (.01) .29 (.46) (.16) (.62)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(b) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
====================================================================================================================================
Total Returns
---------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
======================================================================================
PENNSYLVANIA
INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $-- $15.67 $15.6800 1.03% 1.57%
2003 -- 15.91 16.0100 11.98 14.79
2002 -- 14.70 15.1800 6.57 7.34
2001 -- 14.57 15.1300 11.99 7.75
2000 -- 14.39 14.3750 (7.39) .94
1999 (.02) 15.33 16.6875 2.56 2.50
PENNSYLVANIA
PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 15.53 15.8500 2.92 3.10
2003 -- 15.65 16.0000 15.09 12.09
2002 -- 14.83 14.7900 13.25 8.88
2001 -- 14.44 13.8700 19.04 13.25
2000 -- 13.48 12.3750 (3.87) .21
1999 -- 14.30 13.7500 7.98 1.27
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 16.04 16.2700 3.06 2.87
2003 .02 16.25 16.4600 18.13 15.95
2002 -- 14.96 14.8900 9.10 9.67
2001(a) (.16) 14.48 14.4900 (2.45) 2.06
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) -- 15.57 15.6900 3.14 1.91
2003 -- 15.90 15.8400 14.38 15.48
2002(b) (.14) 14.64 14.7400 (.73) 3.24
======================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
====================================================================================================================
PENNSYLVANIA
INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) $255,222 1.22%* 6.45%* 1.22%* 6.46%* 10%
2003 258,924 1.27 6.59 1.26 6.60 11
2002 238,926 1.31 7.42 1.30 7.44 34
2001 235,188 1.29 8.40 1.27 8.41 17
2000 231,525 1.26 8.57 1.25 8.59 8
1999 245,468 1.16 7.61 1.16 7.61 16
PENNSYLVANIA
PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 244,664 1.18* 6.49* 1.16* 6.51* 11
2003 246,604 1.20 6.76 1.19 6.77 19
2002 233,536 1.24 7.28 1.23 7.29 7
2001 227,377 1.25 7.55 1.24 7.57 10
2000 212,325 1.26 7.88 1.25 7.89 14
1999 225,235 1.24 6.93 1.24 6.93 9
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 52,905 1.20* 6.14* .75* 6.60* 6
2003 53,591 1.23 6.44 .79 6.88 13
2002 49,306 1.29 7.12 .82 7.59 48
2001(a) 47,723 1.26* 3.51* .87* 3.90* --
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004(c) 57,978 1.24* 5.91* .78* 6.37* 1
2003 59,202 1.25 6.07 .78 6.53 13
2002(b) 54,481 1.09* 3.77* .70* 4.15* 8
====================================================================================================================
Preferred Shares at End of Period
---------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
===================================================================
PENNSYLVANIA
INVESTMENT QUALITY (NQP)
-------------------------------------------------------------------
Year Ended 6/30:
2004(c) $132,000 $25,000 $73,338
2003 132,000 25,000 74,039
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
2000 132,000 25,000 68,849
1999 132,000 25,000 71,490
PENNSYLVANIA
PREMIUM INCOME 2 (NPY)
-------------------------------------------------------------------
Year Ended 6/30:
2004(c) 118,100 25,000 76,792
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
2000 118,100 25,000 69,946
1999 118,100 25,000 72,679
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
-------------------------------------------------------------------
Year Ended 6/30:
2004(c) 25,000 25,000 77,905
2003 25,000 25,000 78,591
2002 25,000 25,000 74,306
2001(a) 25,000 25,000 72,723
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
-------------------------------------------------------------------
Year Ended 6/30:
2004(c) 28,500 25,000 75,858
2003 28,500 25,000 76,932
2002(b) 28,500 25,000 72,790
===================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
(c) For the six months ended December 31, 2003.
See accompanying notes to financial statements.
74-75 SPREAD
Build Your Wealth
AUTOMATICALLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
shares may increase before purchases are completed, the average purchase price
per share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBILITY
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
76
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
William E. Bennett
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
Anne E. Impellizzeri
William L. Kissick
Thomas E. Leafstrand
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman andCutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
Average Annual Total Return: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
Taxable-Equivalent Yield: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended December 31, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
77
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $90 billion in assets, Nuveen Investments offers access to
a number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; and Symphony, a
leading institutional manager of market-neutral alternative investment
portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606
| www.nuveen.com
ESA-B-1203D
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. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable at this time.
ITEM 10. 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 registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. 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
because posted on registrant's website at www.nuveen.com/etf.
(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
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: March 9, 2004
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
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Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: March 9, 2004
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: March 9, 2004
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* Print the name and title of each signing officer under his or her signature.