Annual Report July 31, 2001
Logo: NUVEEN Investments
Municipal Closed-End Exchange-Traded Funds
Dependable, tax-free income to help you keep more of what you earn.
ARIZONA
NAZ
NFZ
MICHIGAN
NUM
NMP
OHIO
NUO
NXI
TEXAS
NTX
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Photo: Timothy R. Schwertfeger
Chairman of the Board
SIDEBAR TEXT: "Your Nuveen Fund also features several characteristics that can
help make it an essential part of your overall investment strategy."
Dear
Shareholder
I am pleased to have this opportunity to report on the recent performance of
your Nuveen Fund. During the period covered by this report, your Fund continued
to meet its primary objective of providing you with attractive monthly tax-free
income from a portfolio of quality municipal bonds. Detailed information on your
Fund can be found in the Portfolio Managers' Comments and Performance Overview
sections later in this report. I urge you to take the time to read them.
In addition to providing you with steady tax-free income, your Nuveen Fund also
features several characteristics that can help make it an essential part of your
overall investment strategy. These include careful research, constant
surveillance and judicious trading by Nuveen's seasoned portfolio management
team, with every action designed to supplement income, improve Fund structure,
better adapt to current market conditions or increase diversification. In
turbulent times like these, prudent investors understand the importance of
diversification, balance, and risk management, all attributes your Nuveen Fund
can bring to your portfolio. With strong long-term performance achieved through
consistent, disciplined professional management, your Nuveen Fund also
illustrates the power of taking a long-term view toward financial growth and
success.
Invest Well.Look Ahead.Leave Your Mark.
Today, perhaps more than ever, investors have the ability to make a lasting
impact on their families and their world for generations to come. For more than
100 years, Nuveen has specialized in offering quality investments, such as the
Nuveen Funds, to those seeking to accumulate and preserve wealth to establish a
lasting legacy. Our mission continues to be to provide assistance to you and
your financial advisor by offering investment services and products that can
help you leave your mark. We thank you for continuing to choose Nuveen
Investments as your partner as you work toward that goal.
Sincerely,
/S/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
September 10, 2001
Sidebar text: "Today, perhaps more than ever, investors have the ability to make
a lasting impact on their families and their world for generations to come."
Nuveen Arizona, Michigan, Ohio and Texas Closed-End Exchange-Traded Funds
(NAZ, NFZ, NUM, NMP, NUO, NXI, NTX)
Portfolio Managers'
Comments
Portfolio managers Mike Davern and Rick Huber examine national and state
economic conditions, key investment strategies, and the performance of the
Nuveen Municipal Closed-End Exchange-Traded Funds for Arizona, Michigan, Ohio,
and Texas. With nine years of investment management experience, Mike has managed
NAZ, NUM, NMP, and NTX since 1998; he added the Nuveen Arizona Dividend
Advantage Fund (NFZ) upon its inception in January 2001. Rick, who has 16 years
of investment experience, assumed portfolio management responsibility for NUO in
March 2001. At that time, he also added the new Nuveen Dividend Advantage Fund
for Ohio (NXI).
WHAT FACTORS HAD THE GREATEST INFLUENCE ON THE U.S. ECONOMY AND THE MUNICIPAL
MARKET DURING THIS REPORTING PERIOD?
The two major factors affecting the economy and the municipal market over the
twelve months ended July 31, 2001, were the Federal Reserve's shift in interest
rate policy from tightening to easing short-term interest rates and the general
slowdown in economic growth. In January 2001, the Fed embarked on a series of
rate cuts designed to stimulate the sluggish U.S. economy. During the first
seven months of the year, the Fed announced six rate reductions totaling 275
basis points, bringing the target federal funds rate by the end of the reporting
period to 3.75%, its lowest point since 1994. (Following the end of the period
covered in this report, the Fed reduced the target rate by another 25 basis
points on August 21, lowering the rate to 3.50%.) The consensus among market
observers is that the Fed is prepared to continue easing rates as long as signs
of a significant economic slowdown remain.
In the municipal market, these conditions, combined with tight municipal supply
during 2000, helped many bonds perform well. As 2001 got underway, the Fed's
cuts created a more favorable rate environment for both new municipal issuance
and refundings, which totaled $154.2 billion nationwide during the first seven
months of the year, an increase of 39% over January-July 2000.
On the demand side, municipal bonds continued to be highly sought after by
individual investors looking for diversification, income, and an alternative to
a volatile stock market. During July 2001, the Investment Company Institute
reported that net new inflows to municipal bond funds outpaced inflows to both
equity and money market funds, reaching some of their highest levels since 1997.
Institutional demand has also strengthened this year. In general, improving
supply and strong demand helped to keep municipal bond prices higher than they
were twelve months ago, while municipal yields were correspondingly lower.
Nevertheless, we believe the municipal market continues to represent good value.
As of July 31, 2001, long-term municipal yields were almost 98% of 30-year
Treasury yields, compared with 101% in July 2000.
MIKE, HOW WAS THE MARKET ENVIRONMENT IN ARIZONA, MICHIGAN, AND TEXAS?
First of all, on a percentage basis, the increase in municipal issuance in each
of these three states exceeded the national average for the first seven months
of the year. During this period, Arizona issued $2.64 billion in new bonds, up
70% over the first seven months of 2000, compared with an increase of 39% in the
broad municipal market. Municipal issuance in Michigan totaled $4.93 billion,
for an increase of 104%, while Texas, the second largest issuer in the nation,
saw $13.58 billion in new issuance, up 80% over the same period in 2000. Even
with these increases, municipal supply failed to keep pace with the strong
demand for bonds issued in these three states. This, in turn, helped to support
and drive municipal prices higher, a trend we expect to continue.
In Arizona, despite slowing job growth in a number of sectors, the state economy
grew at the third fastest rate in the nation, behind Nevada and Colorado. This
trend is expected to persist, as Arizona's low business costs continue to
attract service firms, especially financial companies, and retail distribution
centers. The state also expects to see continued growth in the technology
sector, although at a more moderate rate. Planned expansion by several high-tech
firms should add
thousands of jobs to the already healthy economy of metropolitan Phoenix. As of
July 2001, Arizona's unemployment rate was 4.7%, ahead of the current national
average of 4.5% and up from 4.3% in July 2000. Even with the current pace of
economic growth, per capita income levels in the state slightly lagged the
national average, due in part to Arizona's large retiree population. However,
the continued in-migration of these retirees, as well as younger residents,
helped to provide support for the state's real estate market.
With its heavy reliance on manufacturing, especially automaking, the Michigan
economy has been harder hit by the current economic slowdown. Weakness in the
manufacturing sector nationwide and improved efficiency in the auto production
process both have led to numerous job cuts in recent months. After record lows
during the past two years, unemployment in Michigan spiked to 5.1% as of July
2001, above the current national average of 4.5%. Michigan's business costs were
also higher than the national average, making the state less competitive in
attracting new companies. However, the state has implemented aggressive economic
development initiatives and plans to gradually phase out its single business
tax. Michigan has also offset some job losses by continuing to diversify the
state's manufacturing sector and bringing in more auto research and development
firms. While the construction and service sectors are projected to lead the
state's near-term employment growth, manufacturing is expected to remain the
anchor of the Michigan economy. The state's strong budget performance over the
past few years, combined with a low debt burden, led Moody's and Standard &
Poor's to upgrade Michigan's credit rating to Aaa and AAA, respectively, last
fall.
Weakness in the manufacturing and technology sectors also slowed job growth in
Texas, but the state economy, which has become more diverse over the past
decade, continued to show strong growth and is expected to outperform the
national economy through the near term. The service sector currently accounts
for 28% of the state's employment, while construction, fueled by strong housing
starts, is the fastest growing sector of the Texas economy. Unemployment in the
state rose over the past year to 5.4% in July 2001, up from 5.1% 12 months ago.
Texas residents continued to cope with the financial aftermath of Hurricane
Allison, which caused an estimated $2 billion of damage in June, primarily in
the Houston, Beaumont, and Galveston areas. Another subject of concern is the
effect of the manufacturing slowdown on Mexico, since international trade is
expected to remain a vital aspect of the Texas economy, driving the state's
growth going forward.
RICK, WHAT ABOUT THE OHIO MARKET?
Municipal issuance was up in the Ohio market also, with the state's $5.67
billion of new supply during January-July 2001 representing an 85% increase over
the same period in 2000. Faced with one of the highest marginal income tax rates
in the nation, Ohio residents remained avid buyers of in-state paper. From an
economic perspective, Ohio, like Michigan, continued to rely heavily on the
manufacturing sector, including auto production. Again, as with its neighbor,
slowdowns in this sector may place constraints on the state's economic growth
over the near term. The effect of planned cutbacks in auto manufacturing would
be especially pronounced in urban areas such as Cleveland, Columbus, Toledo,
Dayton, and Youngstown. As of July 2001, Ohio's unemployment was 4.5%, up from
4.3% in July 2000 but on par with the current national average. While the
Columbus and Cincinnati area have strong, diverse economies, the state economy
as a whole is projected to continue to lag national growth due to slowing
construction activity and labor shortages. Debate over school district funding
remains a hotly debated issue in the state, as the Ohio Supreme Court considers
the constitutionality of the state's funding formulas. The impact of these
proceedings on the state's recently passed $45 billion budget, including a $1.4
billion increase in primary/secondary school spending, is still to be
determined.
HOW DID THE NUVEEN FUNDS FOR THESE STATES PERFORM OVER THE PAST TWELVE MONTHS?
For the year ended July 31, 2001, the five older Nuveen Closed-End
Exchange-Traded Funds covered in this report - NAZ, NUM, NMP, NUO, and NTX -
produced total annual returns on net asset value (NAV) as shown in the
accompanying table. The annual returns for the
Lehman Brothers Municipal Bond Index1 and the appropriate Lipper Peer Groups2
are also presented.
MARKET TOTAL RETURN LEHMAN LIPPER
YIELD ON NAV TOTAL RETURN1 AVERAGE2
--------------------------------------------------------------------------
1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
7/31/01 EQUIVALENT3 7/31/01 7/31/01 7/31/01
--------------------------------------------------------------------------
NAZ 5.22% 7.91% 9.74% 10.08% 12.78%
--------------------------------------------------------------------------
NFZ 5.37% 8.14% NA - -
--------------------------------------------------------------------------
NUM 5.72% 8.60% 11.90% 10.08% 15.42%
--------------------------------------------------------------------------
NMP 5.51% 8.29% 13.61% 10.08% 15.42%
--------------------------------------------------------------------------
NUO 5.36% 8.31% 9.85% 10.08% 12.78%
--------------------------------------------------------------------------
NXI 5.63% 8.73% NA - -
--------------------------------------------------------------------------
NTX 5.91% 8.50% 12.74% 10.08% 12.78%
--------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
Over the past twelve months, the combination of tight municipal supply in 2000,
an end to the Fed's interest rate increases, and generally favorable market
technicals created a positive total return environment for municipal bonds. The
Funds' participation in the market's gains is reflected in the total returns on
NAV listed in the previous table.
Between July 31, 2000, and July 31, 2001, the yield on the Bond Buyer 25 Revenue
Bond Index fell from 5.85% to 5.40%. In this environment of falling yields (and
rising bond values), funds with longer durations4 would be expected to perform
well. As of July 31, 2001, the durations of NAZ, NUM, NMP, and NTX ranged from
8.35 to 9.77, compared with 7.53 for the unleveraged Lehman Brothers Municipal
Bond Index, while NUO's duration was 6.61. The relative performance of these
five Funds was also influenced by differences in structure, including the
percentage of their portfolios that is callable in the near term, as well as
individual holdings. For example, the Funds' holdings of high-coupon bonds have
helped them continue to provide attractive market yields, but, as these bonds
approach their call dates, their short durations have affected the performance
of the Funds' total returns on NAV. The two new Funds - NFZ and NXI - had
durations of 13.83 and 12.91, respectively, which we believe is typical of newly
established Funds. Over time, we plan to bring the durations of these two Funds
more in line with other Nuveen Funds.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
All of these Funds use leverage as a way to potentially enhance the dividends
paid to common shareholders. This benefit is tied in part to the short-term
rates the Funds pay their MuniPreferred(R), shareholders. For example, declining
short-term rates can enable the Funds to adjust the amount of income they pay to
preferred shareholders, which can produce benefits for common shareholders.
During the year ended July 31, 2001, steady or falling short-term interest
rates, combined with good portfolio structure, helped to support the income
streams of NAZ and NUM. In addition, the lower short-term rates that resulted
from the Fed easing during the first seven months of 2001 enabled us to increase
the dividends of NAZ in both March and June 2001 and NTX in June 2001. (NTX had
previously experienced a dividend cut in December 2000.) As of July 31, 2001,
NAZ and NTX had offered shareholders 14 and 8 consecutive months of steady or
increasing dividends, respectively, while NUM had provided 14 consecutive months
of stable income. For NMP and NUO, however, the relatively higher short-term
interest rate environment that prevailed during the last half of 2000 ultimately
led to dividend cuts in each Fund in December 2000.
Regarding the two newer Funds, NFZ was launched in January 2001 and began paying
dividends in April, while NXI, which was introduced in March 2001, paid its
first dividends in June. Both Funds are currently providing very attractive
levels of monthly tax-free income to their shareholders.
In coming months, the lower rates offered by municipal securities with shorter
maturities could potentially continue to benefit the Funds' dividends by
reducing the amount the Funds pay their MuniPreferred shareholders. This, in
turn, could leave more Fund earnings to support common share dividends. However,
this trend could be offset by the effect of bond calls on the higher-yielding
securities held by these portfolios. The level of short-term rates, the number
of bond calls, and the interest rates at which we can reinvest the proceeds of
any calls will all influence the dividends of these Nuveen Funds over the next
twelve months.
1 The Funds' performances are compared with that of the national Lehman
Brothers Municipal Bond Index, an unleveraged index comprising a broad
range of investment-grade municipal bonds. Results for the Lehman index do
not reflect any expenses.
2 The total returns of the Nuveen Arizona, Ohio, and Texas Funds are compared
with the average annualized return of the 19 funds in the Lipper Other
States Municipal Debt Funds category, while the returns of the Michigan
Funds are compared with the average return of the 6 funds in the Lipper
Michigan category. Fund and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30.5% plus the
applicable state income tax rate. The combined federal and state tax rates
used in this report are as follows: Arizona 34%, Michigan 33.5%, and Ohio
35.5%. Because Texas has no state income rate, NTX's taxable-equivalent
yield is based on the federal income tax rate of 30.5%.
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. Unless otherwise noted, references to duration
in this commentary are intended to indicate Fund duration.
During the past year, as the stock market remained volatile and the bond market
continued to perform well, many investors turned to tax-free fixed-income
investments as a way to add balance to their portfolios and reduce overall risk.
As a result, the share prices of the five older Nuveen Funds improved (see the
charts on the individual Performance Overview pages). As investors recognized
the opportunity offered by these Funds, increased demand caused the discounts
(share price below NAV) on NMP and NTX to narrow significantly over the past 12
months, while the discount on NUM moved to a slight premium (share price above
NAV). Both NAZ and NUO continued to trade at premiums. The two newer Funds also
benefited from strong demand and, as of July 31, 2001, were trading at prices
higher than their IPO (initial public offering) prices earlier this year.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE NUVEEN FUNDS DURING THE YEAR ENDED
JULY 31, 2001?
As evidenced by their twelve-month total returns on NAV, the five older Nuveen
Funds were generally well structured going into this period. Despite the tight
supply of new municipal issuance during 2000, the Funds continued to meet their
goal of keeping assets fully invested and working for shareholders. As issuance
became more plentiful in 2001, we focused on finding bonds with the potential to
strengthen the Funds' long-term dividend-payment capabilities, enhance call
protection, and add value and diversification to the Funds' portfolios.
Two major areas of concentration over the past twelve months involved
positioning the Funds strategically for the next leg of the bond market cycle
and working through the increased number of bond calls typically associated with
the 10-year anniversary of a Fund's inception. In general, the five older Funds
are defensively structured, which tended to somewhat constrain their performance
over the past twelve months, especially as interest rates declined in 2001.
However, we believe this structure will work well for the Funds as the economy
regains strength.
In terms of bond calls, all five of the older Nuveen Funds reach the 10-year
milestone between October 2001 and December 2002 and have already begun to
experience increased call risk. Over the past twelve months, we took advantage
of market conditions to substantially reduce the call exposure of these Funds.
One of our goals in working through these calls was to reinvest proceeds in the
most attractive bonds we could find that could support the Funds' dividends and
extend call protection. In NUO, we managed to eliminate the Fund's call risk by
gradually selling callable bonds as we found opportunities to enhance yield and
extend the Fund's duration.
As of July 31, 2001, all of the Nuveen Funds covered in this report offered
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 59% in NXI to 91% in NUO. Each Fund also had a portion of
its assets invested in BBB and, in some cases, non-rated bonds. During the past
few months, narrowing credit spreads benefited these lower-rated holdings,
especially hospital bonds in the BBB and non-rated credit categories. In 1999
and 2000, credit spreads, or the difference in yield between higher-rated and
lower-rated bonds, widened overall. As this trend began to reverse itself in the
first quarter of 2001, lower-rated bonds generally appreciated in price. Twelve
months ago, the spread between AAA and BBB hospital bonds was as much as 200
basis points, while the current spread is typically 80-90 basis points. This
change is reflected in the performance of healthcare bonds during the first
seven months of 2001, when they were the top sector in the municipal market.
Among the holdings benefiting from this trend were bonds issued by the Michigan
State Hospital Finance Authority for Detroit Medical Center, one of top
performing issues in the healthcare sector. These bonds were held by both NUM
and NMP. In NTX, we added Baa3 bonds issued by Tom Green County for Shannon
Health Systems, which have also performed well since our purchase. Among the BBB
purchases we made for NAZ over the past year was a City of Glendale Industrial
Development Authority issue for Midwestern University. In addition to good
performance, these bonds enhanced the call protection of this Fund. We also took
advantage of narrowing spreads to sell selected bonds into strong bids, which
additionally benefited the Funds' performance. The ability to determine which
bonds should be held for potential price appreciation and
which bonds should be sold illustrates the value added by Nuveen Research, which
performed the credit research that enabled us to make these decisions.
Earlier in 2001, we introduced new Nuveen Dividend Advantage Municipal Funds for
Arizona (NFZ) and Ohio (NXI). As of July 31, 2001, both Funds were fully
invested and, in our opinion, working well for share-holders. In assembling
NFZ's portfolio, we focused on quality bonds in the healthcare sector, a variety
of tax obligation bonds, and some multifamily housing bonds that added
attractive yields to the Fund. Our largest healthcare purchase was $2.17 million
of BBB rated Arizona Health Facilities Authority revenue bonds for Catholic
Healthcare West. Because the supply of Arizona municipal paper was still
relatively tight while we were assembling this Fund in early 2001, we also
bought a number of Puerto Rico territorial bonds that we plan to replace with
Arizona paper as we find better opportunities in the market.
The supply situation was better in the Ohio municipal market by the time we were
investing for NXI, enabling us to put in place the credit quality structure and
capture the spreads that we had targeted. In purchasing bonds for this
portfolio, we found opportunities to buy bonds offering incremental yield,
including some bonds issued by Puerto Rico and the Virgin Islands. These bonds
also provide excellent total return potential, especially if supply tightens
again and the demand for these types of bonds increases. In the healthcare
sector, we purchased several issues that also fit these criteria, including $2.5
million of Baa1 rated Miami County Upper Valley Medical Center bonds and $2.0
million of Parma Community Hospital bonds rated A-. In coming months, we plan to
watch for opportunities to sell the territorial bonds at good prices and replace
them with Ohio paper offering both yield and total return potential. As of July
31, 2001, our three largest sector weightings were limited tax obligation,
general obligation and healthcare bonds.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE NUVEEN FUNDS
IN PARTICULAR?
Overall, our outlook for the fixed-income markets during the next 12 months
continues to be positive. Demand for tax-exempt municipal bonds is anticipated
to remain strong, as investors look for ways to rebalance their portfolios and
reduce potential risk. If interest rates continue to fall and the pace of
refundings accelerates, new municipal issuance nationwide in 2001 could exceed
$250 billion. Following the lower levels of municipal supply in both 1999 and
2000, any year-over-year increase in 2001 should still result in
supply-and-demand dynamics that support municipal market prices.
Looking specifically at these Nuveen Funds, our strategic approach to bond calls
over the past year improved the call protection levels of the older Nuveen Funds
for the remainder of 2001, with scheduled calls ranging from none in NAZ to 11%
in NUM over the next five months. As previously mentioned, all five Funds will
mark their 10-year anniversaries over the next 17 months, reaching the point of
the bond market cycle typically associated with an increase in call exposure. In
2002 and 2003, these Funds could see bond calls affecting as much as 19% to 37%
of their portfolios, depending on market interest rates during this time.
Between now and the end of 2003, the newly established NFZ has 5% of its
portfolio subject to calls, while NXI has 9% call exposure over this period.
We believe all of these positions are manageable, especially given the two-year
timeframe, and we foresee no problems in working through these calls. While we
cannot control the direction of interest rates, we continue to work to reduce
the Funds' call exposure and to actively manage all of the Funds to mitigate the
longer-term effects of the bond call process.
In general, we believe these Nuveen Funds are well positioned for the market
environment of the next 12 months. As value-oriented investors, we plan to
remain focused on ways we can add value for our shareholders, provide support
for the Funds' dividends, and watch new issuance for opportunities to purchase
the research-intensive credits that fully utilize Nuveen's expertise in this
area. One of our priorities will be maintaining portfolio structure that
strategically positions the Funds in the event of an economic recovery. In NUO
specifically, we will also be looking for opportunities to make the Fund's
duration more market-neutral. Overall, we believe these Nuveen Funds will
continue to play an important role in investors' long-range financial programs,
providing balance and diversification, attractive tax-free income, and quality
investments.
Nuveen Arizona Premium Income Municipal Fund, Inc.
Performance
Overview As of July 31, 2001
NAZ
Pie Chart:
AAA/U.S. Guaranteed 58%
AA 17%
A 4%
BBB 16%
NR 1%
Other 4%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.32
--------------------------------------------------
Net Asset Value $14.77
--------------------------------------------------
Market Yield 5.22%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.51%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 7.91%
--------------------------------------------------
Fund Net Assets ($000) $94,859
--------------------------------------------------
Average Effective Maturity (Years) 17.33
--------------------------------------------------
Leverage-Adjusted Duration 8.35
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 11/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 17.77% 9.74%
--------------------------------------------------
5-Year 9.05% 6.15%
--------------------------------------------------
Since Inception 6.63% 6.29%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S.Guaranteed 22%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Tax Obligation/Limited 15%
--------------------------------------------------
Tax Obligation/General 9%
--------------------------------------------------
Utilities 9%
--------------------------------------------------
Bar Chart:
2000-2001 Monthly Tax-Free Dividends Per Share2
8/00 0.068
9/00 0.068
10/00 0.068
11/00 0.068
12/00 0.068
1/01 0.068
2/01 0.068
3/01 0.0695
4/01 0.0695
5/01 0.0695
6/01 0.071
7/01 0.071
Line Chart:
Share Price Performance
Weekly Closing Price
8/01/00 14.75
14.69
14.69
14.75
14.94
14.94
14.75
14.75
14.75
14.81
14.38
13.81
13.94
14.56
14.75
14.81
14.75
15
15.31
15.44
15.69
15.88
15.94
15.75
15.5
15.71
15.66
15.85
15.8
15.71
15.82
15.77
15.89
15.85
15.78
15.72
15.75
15.9
15.95
15.89
15.95
15.89
15.92
15.94
15.86
15.86
16.1
16.18
16.21
16.3
7/31/01 16.36
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 34%.
2 The Fund also paid shareholders a capital gains distribution in December
2000 of $0.0061 per share.
Nuveen Arizona Dividend Advantage Municipal Fund
Performance
Overview As of July 31, 2001
NFZ
Pie Chart:
AAA/U.S. Guaranteed 54%
AA 15%
A 9%
BBB 22%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.65
--------------------------------------------------
Net Asset Value $14.37
--------------------------------------------------
Market Yield 5.37%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.73%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.14%
--------------------------------------------------
Fund Net Assets ($000) $34,072
--------------------------------------------------
Average Effective Maturity (Years) 23.07
--------------------------------------------------
Leverage-Adjusted Duration 13.83
--------------------------------------------------
TOTAL RETURN (Inception 01/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 6.76% 2.81%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 19%
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Housing/Multifamily 10%
--------------------------------------------------
Utilities 10%
--------------------------------------------------
Bar Chart:
2001 Monthly Tax-Free Dividends Per Share
3/01 0.07
4/01 0.07
5/01 0.07
5/01 0.07
6/01 0.07
Line Chart:
Share Price Performance
Weekly Closing Price
2/02/01 15
15.2
15.125
15.24
15
15.15
15
15.17
15.2
15.25
15.3
14.4
15.1
15.25
15.25
15.22
15.05
15.2
15.19
15.24
15.2
15.2
15.29
15.61
15.65
7/31/01 15.59
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 34%.
Nuveen Michigan Quality Income Municipal Fund, Inc.
Performance
Overview As of July 31, 2001
NUM
Pie Chart:
AAA/U.S. Guaranteed 82%
AA 4%
A 7%
BBB 6%
NR 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.42
--------------------------------------------------
Net Asset Value $15.32
--------------------------------------------------
Market Yield 5.72%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.23%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.60%
--------------------------------------------------
Fund Net Assets ($000) $270,664
--------------------------------------------------
Average Effective Maturity (Years) 19.08
--------------------------------------------------
Leverage-Adjusted Duration 9.51
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 17.11% 11.90%
--------------------------------------------------
5-Year 6.27% 6.55%
--------------------------------------------------
Since Inception 6.72% 7.49%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 25%
--------------------------------------------------
Utilities 18%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
U.S.Guaranteed 10%
--------------------------------------------------
Water and Sewer 9%
--------------------------------------------------
Bar Chart:
2000-2001 Monthly Tax-Free Dividends Per Share2
8/00 0.0735
9/00 0.0735
10/00 0.0735
11/00 0.0735
12/00 0.0735
1/01 0.0735
2/01 0.0735
3/01 0.0735
4/01 0.0735
5/01 0.0735
6/01 0.0735
7/01 0.0735
Line Chart:
Share Price Performance
Weekly Closing Price
8/01/00 13.75
13.31
13.56
13.69
13.81
13.94
13.75
13.63
13.81
13.63
13.31
13.25
13.31
13.56
13.56
13.5
14
14
13.63
13.69
13.88
14.56
14.94
15.06
14.94
15.1
15.09
15
14.85
14.92
15.02
15.03
15.08
15.1
15.15
15.32
15.29
15.42
15.54
15.5
15.34
15.26
15.26
15.32
15.39
15.55
15.53
15.67
15.69
15.64
7/31/01 15.44
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 33.5%.
2 The Fund also paid shareholders a capital gains distribution in December
2000 of $0.0193 per share.
Nuveen Michigan Premium Income Municipal Fund, Inc.
Performance
Overview As of July 31, 2001
NMP
Pie Chart:
AAA/U.S. Guaranteed 66%
AA 16%
A 10%
BBB 8%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.71
--------------------------------------------------
Net Asset Value $15.31
--------------------------------------------------
Market Yield 5.51%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.93%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.29%
--------------------------------------------------
Fund Net Assets ($000) $173,784
--------------------------------------------------
Average Effective Maturity (Years) 18.62
--------------------------------------------------
Leverage-Adjusted Duration 8.35
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 12/92)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 17.81% 13.61%
--------------------------------------------------
5-Year 8.89% 7.36%
--------------------------------------------------
Since Inception 5.76% 6.73%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 22%
--------------------------------------------------
Healthcare 20%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Water and Sewer 13%
--------------------------------------------------
Tax Obligation/General 12%
--------------------------------------------------
Bar Chart:
2000-2001 Monthly Tax-Free Dividends Per Share2
8/00 0.069
9/00 0.069
10/00 0.069
11/00 0.069
12/00 0.0675
1/01 0.0675
2/01 0.0675
3/01 0.0675
4/01 0.0675
5/01 0.0675
6/01 0.0675
7/01 0.0675
Line Chart:
Share Price Performance
Weekly Closing Price
8/01/00 13.25
13.25
13.38
13.38
13.38
13.31
13.31
13.25
13.13
13.06
12.69
12.38
12.25
12.75
12.25
12.69
12.75
12.75
12.81
13.13
12.94
14
13.94
13.94
13.75
14.09
13.85
13.96
13.6
13.89
13.9
14.07
14.24
14.27
14.25
14.18
14.5
14.43
14.59
14.6
14.44
14.13
14.19
14.45
14.44
14.65
14.64
14.67
15.01
14.87
7/31/01 14.65
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 33.5%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2000 of $0.0025 per share.
Nuveen Ohio Quality Income Municipal Fund, Inc.
Performance
Overview As of July 31, 2001
NUO
Pie Chart:
AAA/U.S. Guaranteed 70%
AA 21%
A 4%
BBB 3%
NR 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.80
--------------------------------------------------
Net Asset Value $16.10
--------------------------------------------------
Market Yield 5.36%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 7.71%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.31%
--------------------------------------------------
Fund Net Assets ($000) $230,164
--------------------------------------------------
Average Effective Maturity (Years) 15.75
--------------------------------------------------
Leverage-Adjusted Duration 6.61
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 6.86% 9.85%
--------------------------------------------------
5-Year 6.86% 6.68%
--------------------------------------------------
Since Inception 7.24% 7.70%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S.Guaranteed 20%
--------------------------------------------------
Tax Obligation/General 17%
--------------------------------------------------
Water and Sewer 13%
--------------------------------------------------
Housing/Multifamily 12%
--------------------------------------------------
Healthcare 9%
--------------------------------------------------
Bar Chart:
2000-2001 Monthly Tax-Free Dividends Per Share
8/00 0.077
9/00 0.077
10/00 0.077
11/00 0.077
12/00 0.075
1/01 0.075
2/01 0.075
3/01 0.075
4/01 0.075
5/01 0.075
6/01 0.075
7/01 0.075
Line Chart:
Share Price Performance
Weekly Closing Price
8/01/00 16.56
16.5
16.38
16.13
16.38
16.63
16.31
16
16
16
15.75
15.31
15.13
15.31
15.5
15.44
15.5
15.75
15.5
15.56
15.81
16.63
16.81
17.06
16.94
16.95
17.03
16.9
17.04
16.92
16.87
15.92
15.59
15.33
15.84
15.75
16.11
16.4
16.49
16.59
16.65
16.59
16.55
16.59
16.56
16.7
16.74
16.82
16.84
16.86
7/31/01 16.76
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 35.5%.
Nuveen Ohio Dividend Advantage Municipal Fund
Performance
Overview As of July 31, 2001
NXI
Pie Chart:
AAA/U.S. Guaranteed 41%
AA 18%
A 9%
BBB 24%
NR 7%
Other 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.35
--------------------------------------------------
Net Asset Value $14.57
--------------------------------------------------
Market Yield 5.63%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.10%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal and State Income Tax Rate)1 8.73%
--------------------------------------------------
Fund Net Assets ($000) $92,424
--------------------------------------------------
Average Effective Maturity (Years) 20.29
--------------------------------------------------
Leverage-Adjusted Duration 12.91
--------------------------------------------------
TOTAL RETURN (Inception 03/01)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 3.77% 3.21%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 23%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/Limited 14%
--------------------------------------------------
Utilities 12%
--------------------------------------------------
Education and Civic Organizations 9%
--------------------------------------------------
Bar Chart:
2001 Monthly Tax-Free Dividends Per Share
5/01 0.072
6/01 0.072
7/01 0.072
Line Chart:
Share Price Performance
Weekly Closing Price
3/30/01 15
15.11
15.08
15.3
15.3
15.16
15.35
15.68
15.53
15.65
16
15.55
15.78
15.67
15.95
15.77
15.9
7/31/01 15.28
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. 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 35.5%.
Nuveen Texas Quality Income Municipal Fund
Performance
Overview As of July 31, 2001
NTX
Pie Chart:
AAA/U.S. Guaranteed 55%
AA 11%
A 11%
BBB 21%
NR 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.73
--------------------------------------------------
Net Asset Value $15.16
--------------------------------------------------
Market Yield 5.91%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.50%
--------------------------------------------------
Fund Net Assets ($000) $212,127
--------------------------------------------------
Average Effective Maturity (Years) 22.05
--------------------------------------------------
Leverage-Adjusted Duration 9.77
--------------------------------------------------
ANNUALIZED TOTAL RETURN (Inception 10/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 21.16% 12.74%
--------------------------------------------------
5-Year 6.44% 6.54%
--------------------------------------------------
Since Inception 6.47% 7.35%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 18%
--------------------------------------------------
Healthcare 17%
--------------------------------------------------
Transportation 13%
--------------------------------------------------
Tax Obligation/Limited 7%
--------------------------------------------------
Water and Sewer 7%
--------------------------------------------------
Bar Chart:
2000-2001 Monthly Tax-Free Dividends Per Share
8/00 0.073
9/00 0.073
10/00 0.073
11/00 0.073
12/00 0.0715
1/01 0.0715
2/01 0.0715
3/01 0.0715
4/01 0.0715
5/01 0.0715
6/01 0.0725
7/01 0.0725
Line Chart:
Share Price Performance
Weekly Closing Price
8/01/00 13
13.13
13.19
13.31
13.31
13.31
13.06
13.25
13.25
13.44
13.13
12.81
12.75
12.75
12.63
12.81
12.81
13.25
12.94
12.94
13.25
13.94
13.94
14.56
14.44
14.8
14.85
14.72
14.5
14.6
14.4
14.13
14.33
14.5
14.22
14.15
14.22
14.12
14.35
14.1
14.05
14.1
14.22
14.5
14.32
14.31
14.56
14.63
14.7
14.62
7/31/01 14.72
Past performance is not predictive of future results.
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30.5%. The rate shown for federal and state highlights the added value
of owning shares that are also exempt from state income taxes.
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.7%
$ 5,000 The Industrial Development Authority of the County of Gila, Arizona, 1/08 at 102 BB $ 3,504,800
Environmental Revenue Refunding Bonds (ASARCO Incorporated
Project), Series 1998, 5.550%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.1%
1,885 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 1,986,319
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.5%
1,750 Student Loan Acquisition Authority of Arizona, Student Loan Revenue 5/04 at 102 Aa1 1,847,965
Bonds, Subordinated Fixed Rate Bonds, Series 1994B,
6.600%, 5/01/10 (Alternative Minimum Tax)
1,250 The Industrial Development Authority of the City of Glendale, 5/11 at 101 BBB+ 1,273,275
Arizona, Revenue Bonds (Midwestern University), Series 2001A,
5.875%, 5/15/31
100 University of Arizona Telecommunications System, Arizona, 7/02 at 102 A+ 105,143
Certificates of Participation, Series 1991, 6.500%, 7/15/12
1,000 Arizona Board of Regents, University of Arizona, System Revenue 6/02 at 102 AA 1,047,200
Refunding Bonds, Series 1992, 6.250%, 6/01/11
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.8%
2,000 Arizona Health Facilities Authority, Hospital Revenue Bonds 11/09 at 100 A3 2,063,320
(Phoenix Children's Hospital), Series 1999A, 6.125%, 11/15/22
2,125 Arizona Health Facilities Authority, Hospital System Revenue Bonds 12/10 at 102 BBB 2,191,831
(John C. Lincoln Health Network), Series 2000, 7.000%, 12/01/25
2,000 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB 2,036,920
Healthcare West), 1999 Series A, 6.625%, 7/01/20
3,000 City of Mesa, Arizona, Industrial Development Authority, Revenue 1/10 at 101 AAA 3,177,600
Bonds (Discovery Health System), Series 1999A, 5.750%, 1/01/25
2,000 Mohave County, Arizona, Hospital District No. One, Refunding 6/02 at 101 AAA 2,073,460
General Obligation Bonds (Kingman Regional Medical Center
Project), Series 1992, 6.500%, 6/01/15
515 Puerto Rico Industrial, Tourist, Educational, Medical and 11/10 at 101 AA 584,499
Environmental Control Facilities Financing Authority, Hospital
Revenue Bonds (Hospital de la Concepcion Project), 2000 Series A,
6.375%, 11/15/15
2,000 University Medical Center Corporation, Tucson, Arizona, Hospital 7/02 at 102 AAA 2,066,000
Revenue Refunding Bonds, Series 1992, 6.250%, 7/01/16
1,055 The Industrial Development Authority of the City of Winslow, 6/08 at 101 N/R 836,098
Arizona, Hospital Revenue Bonds (Winslow Memorial Hospital
Project), Series 1998, 5.500%, 6/01/22
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 7.8%
2,011 The Industrial Development Authority of the City of Glendale, 10/10 at 105 Aaa 2,345,027
Arizona, Multifamily Housing Revenue Bonds, Series 2000A
(GNMA Collateralized Mortgage Loan - Maridale Apartments
Project), 7.500%, 10/20/35
1,275 The Industrial Development Authority of the County of Maricopa, 10/10 at 105 Aaa 1,381,794
Arizona, Multifamily Housing Revenue Bonds, Series 2000
(GNMA Collateralized - Villas at Augusta Project),
6.400%, 10/20/20
400 The Industrial Development Authority of the City of Phoenix, 6/11 at 102 Aaa 403,480
Arizona, Multifamily Housing Revenue Bonds, Series 2001
(GNMA Collateralized - Campaigne Place on Jackson Project),
5.700%, 6/20/31 (Alternative Minimum Tax)
3,215 The Industrial Development Authority of the County of Tucson, 7/10 at 101 AA 3,312,704
Arizona, Senior Living Facilities Revenue Bonds, Series 2000A
(The Christian Care Project), 5.625%, 7/01/20
Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0%
$ 290 The Industrial Development Authority of the City of Phoenix, 6/05 at 102 AAA $ 313,038
Arizona, Statewide Single Family Mortgage Revenue Bonds,
Series 1995, 6.150%, 6/01/08 (Alternative Minimum Tax)
1,300 The Industrial Development Authority of the City of Phoenix, 6/10 at 105 AAA 1,500,889
Arizona, Single Family Mortgage Revenue Bonds, Series 2000-1B,
7.350%, 6/01/31 (Alternative Minimum Tax)
270 The Industrial Development Authority of the County of Pima, 8/05 at 102 A2 278,913
Arizona, Single Family Mortgage Revenue Refunding Bonds,
Series 1995A, 6.500%, 2/01/17
1,655 The Industrial Development Authority of the County of Pima, 5/07 at 102 AAA 1,709,119
Arizona, Single Family Mortgage Revenue Bonds, Series 1997A,
6.250%, 11/01/30 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1%
1,000 The Industrial Development Authority of the County of Mohave, 5/06 at 103 AAA 1,071,510
Arizona, Health Care Revenue Refunding Bonds, Series 1996
(GNMA Collateralized - Chris Ridge and Silver Ridge
Village Projects), 6.375%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 8.9%
1,400 Chandler Unified School District No. 80 of Maricopa County, 7/03 at 101 AAA 1,481,788
Arizona, General Obligation Refunding Bonds, Series 1993,
5.950%, 7/01/10
3,625 City of Mesa, Arizona, General Obligation Bonds, Series 1999, 7/09 at 100 AAA 3,668,573
5.000%, 7/01/18
2,500 City of Phoenix, Arizona, General Obligation Refunding Bonds, 7/02 at 102 AA+ 2,627,575
Series 1992, 6.375%, 7/01/13
585 Tempe Union High School District No. 213 of Maricopa County, 7/04 at 101 AAA 618,368
Arizona, School Improvement and Refunding Bonds, Series 1994,
6.000%, 7/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.9%
300 Arizona School Facilities Board, State School Improvement Revenue 7/11 at 100 AAA 317,739
Bonds, Series 2001, 5.500%, 7/01/18
City of Bullhead City, Arizona, Bullhead Parkway Improvement
District, Improvement Bonds:
910 6.100%, 1/01/08 1/03 at 103 Baa2 954,645
970 6.100%, 1/01/09 1/03 at 103 Baa2 1,015,803
3,000 The Industrial Development Authority of the County of Maricopa, 7/10 at 102 Baa3 3,112,380
Arizona, Education Revenue Bonds (Arizona Charter Schools
Project I), Series 2000A, 6.750%, 7/01/29
The Industrial Development Authority of the City of Phoenix, Arizona,
Government Office Lease Revenue Bonds (Capitol Mall L.L.C.
Project), Series 2000:
1,000 5.375%, 9/15/22 9/10 at 100 AAA 1,026,040
2,000 5.500%, 9/15/27 9/10 at 100 AAA 2,070,040
2,150 Phoenix Civic Plaza Building Corporation, Arizona, Senior Lien 7/05 at 101 AA+ 2,288,568
Excise Tax Revenue Bonds, Series 1994, 6.000%, 7/01/14
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,139,820
Revenue Bonds, Series B, 6.500%, 7/01/27
500 City of Surprise, Arizona, Municipal Property Corporation, Excise 7/09 at 101 AAA 532,660
Tax Revenue Bonds, Series 2000, 5.700%, 7/01/20
500 City of Tucson, Arizona, Certificates of Participation, Series 2000, 7/08 at 100 AAA 526,110
5.700%, 7/01/20
1,100 City of Tucson, Arizona, Junior Lien Street and Highway User Revenue 7/10 at 100 AAA 1,109,009
Bonds, Series 1994-E, 5.000%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.2%
3,500 The Industrial Development Authority of the County of Maricopa, No Opt. Call AAA 4,298,910
Arizona, Samaritan Health Services, Hospital System Revenue
Refunding Bonds, Series 1990A, 7.000%, 12/01/16
The Industrial Development Authority of the County of Mohave,
Arizona, Hospital System Revenue Refunding Bonds (Medical
Environments, Inc. and Phoenix Baptist Hospital and Medical
Center Inc.), Series 1993:
5,000 6.750%, 7/01/08 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 5,444,450
1,000 7.000%, 7/01/16 (Pre-refunded to 7/01/03) 7/03 at 102 Aaa 1,093,120
2,700 Civic Improvement Corporation of the City of Phoenix, Arizona, 7/03 at 102 AAA 2,909,844
Wastewater System Lease Revenue Bonds, Series 1993,
6.125%, 7/01/23 (Pre-refunded to 7/01/03)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 1,510 Metropolitan Domestic Water Improvement District of Pima 1/03 at 101 AAA $ 1,592,144
County, Arizona, Special Assessment and Water Revenue
Bonds, Series 1992, 6.200%, 1/01/12 (Pre-refunded to 1/01/03)
1,415 Tempe Union High School District No. 213 of Maricopa County, 7/04 at 101 AAA 1,537,964
Arizona, School Improvement and Refunding Bonds, Series 1994,
6.000%, 7/01/12 (Pre-refunded to 7/01/04)
3,000 City of Tucson, Arizona, General Obligation Bonds, 7/04 at 101 AAA 3,281,430
Series 1984-G (1994), 6.250%, 7/01/18 (Pre-refunded
to 7/01/04)
725 City of Tucson, Arizona, Certificates of Participation, Series 1994, 7/04 at 100 AA*** 788,488
6.375%, 7/01/09 (Pre-refunded to 7/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.6%
3,000 The Pollution Control Corporation of the Coconino County, Arizona, 10/06 at 102 BBB- 2,997,570
Pollution Control Revenue Bonds (Nevada Power Company
Project), Series 1996, 6.375%, 10/01/36 (Alternative Minimum Tax)
2,000 The Industrial Development Authority of the County of Mohave, 11/03 at 101 BBB 1,942,820
Arizona, Industrial Development Revenue Bonds (Citizen
Utilities Company Projects), 1994 Series, 6.600%, 5/01/29
(Alternative Minimum Tax)
500 The Pollution Control Corporation of the Navajo County, Arizona, 8/03 at 102 AAA 518,970
Pollution Control Revenue Refunding Bonds (Arizona Public
Service Company), 1993 Series A, 5.875%, 8/15/28
1,465 The Industrial Development Authority of the County of Pima, 1/02 at 103 AAA 1,532,917
Arizona, Industrial Development Lease Obligation Refunding
Revenue Bonds (Irvington Project), 1988 Series A, 7.250%, 7/15/10
1,450 The Industrial Development Authority of the County of Yavapai, 6/07 at 101 BBB 1,191,422
Arizona, Industrial Development Revenue Bonds (Citizens Utilities
Company Project), 1998 Series, 5.450%, 6/01/33 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.1%
500 The Industrial Development Authority of the County of Maricopa, 12/07 at 102 AAA 508,785
Arizona, Water System Improvement Revenue Bonds (Chaparral
City Water Company Project), Series 1997A, 5.400%, 12/01/22
(Alternative Minimum Tax)
2,000 Civic Improvement Corporation of the City of Phoenix, Arizona, 7/10 at 101 AAA 2,287,999
Junior Lien Wastewater System Revenue Bonds, Series 2000,
6.000%, 7/01/24
2,000 City of Tucson, Arizona, Water System Revenue Refunding Bonds, 7/02 at 102 Aa3 2,055,159
Series 1992A, 5.750%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 90,401 Total Investments (cost $90,127,126) - 98.7% 93,582,014
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 1,276,990
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $94,859,004
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1%
$ 1,000 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 $ 1,060,480
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 7.6%
1,020 The Industrial Development Authority of the City of Mesa, 7/11 at 101 BBB- 1,014,064
Arizona, Student Housing Revenue Bonds, Series 2001A
(ASU East/Maricopa County Community College District Williams
Campus Project), 6.000%, 7/01/26
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Series 1999 (Ana G. Mendez
University System Project):
320 5.375%, 2/01/19 2/09 at 101 BBB 313,955
1,000 5.375%, 2/01/29 2/09 at 101 BBB 957,140
300 Puerto Rico Industrial, Educational, Medical and Environmental 9/11 at 100 BBB 300,102
Control Facilities Financing Authority, Higher Education Revenue
Bonds, Series 2001 (University of the Sacred Heart Project),
5.250%, 9/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 15.5%
1,050 Arizona Health Facilities Authority, Hospital System Revenue 12/10 at 102 BBB 1,072,659
Bonds (John C. Lincoln Health Network), Series 2000,
6.875%, 12/01/20
2,170 Arizona Health Facilities Authority, Revenue Bonds (Catholic 7/10 at 101 BBB 2,210,058
Healthcare West), 1999 Series A, 6.625%, 7/01/20
1,000 The Industrial Development Authority of the County of Maricopa, 5/08 at 101 AAA 1,010,790
Arizona, Hospital Revenue Bonds (Mayo Clinic Hospital),
Series 1998, 5.250%, 11/15/37
1,000 The Industrial Development Authority of the City of Yuma, Arizona, 8/11 at 101 AAA 993,080
Hospital Revenue Bonds (Yuma Regional Medical Center),
Series 2001, 5.000%, 8/01/31
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 10.4%
1,000 The Industrial Development Authority of the County of Maricopa, 7/09 at 102 Aaa 1,043,410
Arizona, Multifamily Housing Revenue Bonds (Whispering Palms
Apartments Project), Series 1999A, 5.900%, 7/01/29
1,000 The Industrial Development Authority of the County of Maricopa, 5/10 at 102 A3 1,068,480
Arizona, Multifamily Housing Revenue Bonds (Sun King
Apartments Project), Series 2000A, 6.750%, 5/01/31
1,125 The Industrial Development Authority of the County of Maricopa, 10/11 at 103 Aaa 1,148,456
Arizona, Multifamily Housing Revenue Bonds (Syl-Mar Apartments
Project), Series 2001, 5.650%, 4/20/21 (Alternative Minimum Tax)
275 The Industrial Development Authority of the City of Phoenix, Arizona, 6/11 at 102 Aaa 277,393
Multifamily Housing Revenue Bonds (GNMA Collateralized -
Campaigne Place on Jackson Project), Series 2001,
5.700%, 6/20/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.3%
470 The Industrial Development Authority of the County of Pima, 11/10 at 101 AAA 469,709
Arizona, Single Family Mortgage Revenue Bonds, Series 2001-A1,
5.350%, 11/01/24 (Alternative Minimum Tax)
1,000 The Industrial Development Authority of the County of Pima, 11/10 at 101 AAA 995,620
Arizona, Single Family Mortgage Revenue Bonds, Series 2001-A4,
5.050%, 5/01/17
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.5%
1,240 City of Chandler, Arizona, General Obligation Bonds, Series 2001, 7/10 at 101 AA 1,249,114
5.000%, 7/01/20
1,000 City of Mesa, Arizona, General Obligation Bonds, Series 1999, 7/09 at 100 AAA 1,015,310
5.000%, 7/01/17
1,000 City of Phoenix, Arizona, General Obligation Refunding Bonds, 7/05 at 101 AA+ 1,003,200
Series 1995A, 5.000%, 7/01/19
1,705 City of Scottsdale, Arizona, General Obligation Bonds, Series 2001, 7/09 at 100 AAA 1,655,538
4.750%, 7/01/21
1,020 City of Tucson, Arizona, General Obligation Refunding Bonds, 7/07 at 100 AA 1,025,926
Series 1997, 5.000%, 7/01/19
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 19.2%
$ 700 Arizona School Facilities Board, State School Improvement Revenue 7/11 at 100 AAA $ 741,391
Bonds, Series 2001, 5.500%, 7/01/18
2,000 The Industrial Development Authority of the County of Maricopa, 6/07 at 102 A 2,104,100
Arizona, Education Revenue Bonds (Horizon Community Learning
Center Project), Series 2000, 6.350%, 6/01/26
1,000 Puerto Rico Highway and Transportation Authority, Transportation 7/18 at 100 AAA 945,990
Revenue Bonds, Series A, 4.750%, 7/01/38
1,000 City of Tucson, Arizona, Junior Lien Street and Highway User 7/10 at 100 AAA 1,008,190
Revenue Bonds, Series 1994-E, 5.000%, 7/01/18
1,740 City of Yuma, Arizona, Municipal Property Corporation, Municipal 7/10 at 100 AAA 1,743,028
Facilities Revenue Bonds, Series 2001, 5.000%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.9%
1,000 City of Phoenix, Arizona, Civic Improvement Corporation, Senior 7/08 at 101 AAA 995,120
Lien Airport Revenue Bonds, Series 1998A, 5.000%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.7%
500 The Industrial Development Authority of the County of Maricopa, 9/05 at 101 AAA 543,760
Arizona, Baptist Hospital System Revenue Refunding Bonds,
Series 1995, 5.500%, 9/01/16 (Pre-refunded to 9/01/05)
1,350 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101 AAA 1,413,491
Bonds, 2000 Series A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.3%
1,840 Coconino County, Arizona, Pollution Control Corporation, Pollution 11/02 at 102 BBB- 1,684,465
Control Revenue Bonds (Nevada Power Company Project),
Series 1997B, 5.800%, 11/01/32 (Alternative Minimum Tax)
1,000 City of Mesa, Arizona, Utility Systems Revenue Bonds, Series 2000, 7/09 at 100 AAA 1,014,310
5.125%, 7/01/19
805 Salt River Project Agricultural Improvement and Power District, 1/08 at 101 AA 806,335
Arizona, Electric System Refunding Revenue Bonds (Salt River
Project), 1997 Series A, 5.000%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.9%
1,025 City of Chandler, Arizona, Water and Sewer Revenue Bonds, 7/10 at 101 AAA 972,417
Series 2001, 4.500%, 7/01/18
------------------------------------------------------------------------------------------------------------------------------------
$ 33,655 Total Investments (cost $33,424,605) - 99.4% 33,857,081
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.6% 215,358
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $34,072,439
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
See accompanying notes to financial statements.
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 0.4%
$ 1,000 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB $ 1,001,750
(WMX Technologies, Inc. Project), Series 1993, 6.000%, 12/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.1%
330 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 347,738
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 3.4%
1,720 Board of Trustees of Ferris State University, Michigan, General 4/08 at 100 AAA 1,696,075
Revenue Bonds, Series 1998, 5.000%, 10/01/23
1,500 Michigan Higher Education Student Loan Authority, Student Loan No Opt. Call AAA 1,580,595
Refunding Revenue Bonds, Series XII-T, 5.300%, 9/01/10
(Alternative Minimum Tax)
1,000 Board of Trustees of Oakland University, Michigan, General Revenue 5/05 at 102 AAA 1,055,790
Bonds, Series 1995, 5.750%, 5/15/15
3,430 Board of Governors of Wayne State University, Michigan, General 11/09 at 101 AAA 3,499,217
Revenue Bonds, Series 1999, 5.250%, 11/15/19
1,450 Board of Trustees of Western Michigan University, General Revenue 7/03 at 102 AAA 1,440,010
Bonds, Series 1993A, 5.000%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.4%
2,900 City of Dearborn, Michigan, Economic Development Corporation, 11/05 at 102 AAA 3,058,427
Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,235 City of Hancock, Michigan, Hospital Finance Authority, FHA-Insured 8/08 at 100 AAA 2,262,334
Mortgage Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 5.450%, 8/01/47
3,866 Michigan State Hospital Finance Authority, Detroit Medical Center No Opt. Call Baa2 3,906,321
Collateralized Loan, Series 2001, 7.360%, 4/01/07
1,000 Michigan State Hospital Finance Authority, Revenue Refunding 11/09 at 101 A 1,043,700
Bonds (OSF Healthcare System), Series 1999, 6.125%, 11/15/19
Michigan State Hospital Finance Authority, Revenue Bonds (Ascension
Health Credit Group), Series 1999A:
1,000 6.125%, 11/15/23 11/09 at 101 AAA 1,063,960
2,500 6.125%, 11/15/26 11/09 at 101 AA 2,629,850
1,700 Michigan State Hospital Finance Authority, Revenue and Refunding 8/09 at 101 AAA 1,788,621
Bonds (Mercy Health Services Obligated Group), 1999 Series X,
5.750%, 8/15/19
Michigan State Hospital Finance Authority, Hospital Revenue and
Refunding Bonds (Mercy Mount Clemens Corporation Obligated
Group), Series 1999A:
3,385 5.750%, 5/15/17 5/09 at 101 AAA 3,582,007
500 5.750%, 5/15/29 5/09 at 101 AAA 522,565
3,500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 2,768,115
Bonds (Detroit Medical Center Obligated Group), Series 1998A,
5.250%, 8/15/28
1,000 Michigan State Hospital Finance Authority, Revenue and Refunding 11/09 at 101 BBB+ 931,060
Bonds (Memorial Healthcare Center Obligated Group),
Series 1999, 5.875%, 11/15/21
5,000 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 11/09 at 101 A+ 5,199,950
(Henry Ford Health System), Series 1999A, 6.000%, 11/15/24
500 City of Royal Oak, Michigan, Hospital Finance Authority, Hospital 11/11 at 100 AAA 500,155
Revenue Bonds (William Beaumont Hospital), Series 2001M,
5.250%, 11/15/31
2,195 Regents of the University of Michigan, Medical Service Plan No Opt. Call Aa2 1,435,793
Revenue Bonds, Series 1991, 0.000%, 12/01/10
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.4%
$ 5,250 Michigan State Housing Development Authority, Limited Obligation 10/02 at 103 AAA $ 5,482,313
Revenue Bonds (Parkway Meadows Project), Series 1991,
6.850%, 10/15/18
5,000 Michigan State Housing Development Authority, Rental Housing 6/05 at 102 AAA 5,269,550
Revenue Bonds, 1995 Series B, 6.150%, 10/01/15
6,795 Michigan State Housing Development Authority, Rental Housing 4/09 at 101 AAA 6,641,569
Revenue Bonds, 1999 Series A, 5.300%, 10/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.5%
1,320 Michigan State Housing Development Authority, Single Family 12/01 at 102 AA+ 1,356,881
Mortgage Revenue Bonds, 1991 Series B, 6.950%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.3%
2,000 The Economic Development Corporation of the Charter Township 7/09 at 101 A 1,932,880
of Grand Rapids, Michigan, Limited Obligation Revenue Bonds
(Porter Hills Obligated Group - Cook Valley Estate Project),
Series 1999, 5.450%, 7/01/29
3,300 Michigan State Hospital Finance Authority, Revenue Bonds 1/07 at 102 N/R 3,099,954
(Presbyterian Villages of Michigan Obligated Group),
Series 1997, 6.375%, 1/01/25
1,300 Michigan State Strategic Fund, Limited Obligation Revenue 7/08 at 101 A 1,260,038
Refunding Bonds (Porter Hills Presbyterian Village), Series 1998,
5.375%, 7/01/28
5,280 The Economic Development Corporation of the City of Warren, 3/02 at 101 Aaa 5,384,280
Michigan, Nursing Home Revenue Refunding Bonds (GNMA
Mortgage-Backed Security - Autumn Woods Project), Series 1992,
6.900%, 12/20/22
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.6%
Allegan Public Schools, County of Allegan, Michigan, 2000 General
Obligation Bonds:
1,850 5.600%, 5/01/20 5/10 at 100 AAA 1,940,706
1,150 5.750%, 5/01/30 5/10 at 100 AAA 1,215,849
2,190 Anchor Bay School District, Counties of Macomb and St. Clair, 5/09 at 100 AAA 2,472,247
Michigan, 1999 School Building and Site Bonds, Series I
(General Obligation - Unlimited Tax), 6.000%, 5/01/29
4,200 Anchor Bay School District, Counties of Macomb and St. Clair, 5/11 at 100 AAA 4,104,156
Michigan, 2001 Refunding Bonds (General Obligation -
Unlimited Tax), 5.000%, 5/01/29
1,000 Belding Area Schools, Counties of Ionia, Kent and Montcalm, 5/08 at 100 AAA 981,130
Michigan, 1998 Refunding Bonds (General Obligation -
Unlimited Tax), 5.000%, 5/01/26
1,000 Charlotte Public Schools, County of Easton, Michigan, 1999 5/09 at 100 AAA 1,006,560
School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.250%, 5/01/25
1,000 Chippewa Valley Schools, County of Macomb, Michigan, 5/03 at 102 AAA 993,100
1993 Refunding Bonds (General Obligation - Unlimited Tax),
5.000%, 5/01/21
2,000 Clarkston Community Schools, Michigan, 1997 School Building 5/07 at 100 AAA 2,012,140
Bonds (General Obligation - Unlimited Tax), 5.250%, 5/01/23
1,085 Freeland Community School District, Counties of Saginaw, Midland 5/10 at 100 AAA 1,111,290
and Bay, Michigan, 2000 School Building and Sites Bonds
(General Obligation - Unlimited Tax), 5.250%, 5/01/19
3,300 Grand Ledge Public Schools, Counties of Eaton, Clinton and Ionia, 5/05 at 102 AAA 3,345,276
Michigan, 1995 Refunding Bonds, 5.375%, 5/01/24
725 Lake Orion Community School District, County of Oakland, Michigan, 5/05 at 101 AAA 742,096
1995 Refunding Bonds (General Obligation - Unlimited Tax),
5.500%, 5/01/20
1,000 Mancelona Public School District, Counties of Antrim and Kalkaska, 5/06 at 100 AAA 1,013,560
Michigan, General Obligation Bonds, Series 1997, 5.200%, 5/01/17
6,400 Mattawan Consolidated School, Counties of Van Buren and 5/02 at 102 AAA 6,660,160
Kalamazoo, Michigan, 1992 Refunding Bonds (General
Obligation - Unlimited Tax), 6.300%, 5/01/17
2,875 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100 AAA 3,054,314
Michigan, 2000 School Building and Site Bonds, Series A
(General Obligation - Unlimited Tax), 5.750%, 5/01/24
4,300 County of Montcalm Building Authority, Michigan, Correctional 5/10 at 100 AAA 4,331,132
Facility Improvement General Obligation Bonds, Series 2000,
5.250%, 5/01/25
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,500 Montrose Township School District, Michigan, School Building and No Opt. Call AAA $ 2,853,700
Site Bonds, Series 1997, 6.000%, 5/01/22
1,000 Muskegon Heights Public Schools, County of Muskegon, Michigan, 5/09 at 100 AAA 975,730
1999 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.000%, 5/01/29
1,045 Nice Community School District, Counties of Marquette and 5/04 at 101 AAA 1,054,301
Baraga, Michigan, 1995 School Building and Site Bonds
(General Obligation - Unlimited Tax), 5.250%, 5/01/20
1,225 North Branch Area Schools, County of Lapeer, Michigan, 1993 5/03 at 101 1/2 AAA 1,239,810
Refunding Bonds (General Obligation - Unlimited Tax),
5.375%, 5/01/21
1,225 Paw Paw Public Schools, County of Van Buren, Michigan, No Opt. Call AAA 1,239,516
General Obligation Refunding Bonds, Series 1998, 5.000%, 5/01/21
4,000 Pinckney Community Schools, Counties of Livingston and 5/07 at 100 AAA 4,090,520
Washtenaw, Michigan, 1997 School Building and Site Bonds
(General Obligation - Unlimited Tax), 5.500%, 5/01/27
685 Reeths-Puffer Schools, County of Muskegon, Michigan, 1995 5/05 at 101 AAA 717,209
School Building, Site and Refunding Bonds, 5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland and 5/10 at 100 AAA 1,066,040
Macomb, Michigan, 2000 School Building, Site and Refunding
Bonds, Series I (General Obligation - Unlimited Tax),
5.750%, 5/01/19
2,100 Romulus Community Schools, County of Wayne, Michigan, 5/09 at 100 AAA 2,336,019
1999 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.750%, 5/01/25
2,500 City of Taylor Building Authority, County of Wayne, Michigan, 3/10 at 100 AAA 2,543,300
Limited Tax General Obligation Bonds, Series 2000,
5.125%, 3/01/17
1,980 County of Washtenaw Building Authority, Michigan, Building 9/07 at 100 AAA 2,038,271
Authority Bonds, Series 1999 (General Obligation - Limited
Tax Bonds), 5.400%, 9/01/17
2,600 West Bloomfield School District, County of Oakland, Michigan, 5/10 at 100 AAA 2,820,922
2000 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.900%, 5/01/18
Western Townships Utilities Authority, Michigan, Sewage Disposal
System Refunding Bonds, Series 1991:
1,500 6.750%, 1/01/15 1/02 at 100 AAA 1,522,755
5,040 6.500%, 1/01/19 1/02 at 100 AAA 5,103,907
1,725 Williamston Community School District, Michigan, School Building No Opt. Call AAA 1,855,255
and Site Bonds, Series 1996 (General Obligation - Unlimited Tax),
5.500%, 5/01/25
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.4%
1,000 City of Grand Rapids Building Authority, County of Kent, Michigan, No Opt. Call AA 1,030,940
General Obligation Limited Tax Bonds, Series 1998, 5.000%, 4/01/16
255 Michigan Municipal Bond Authority, Local Government Loan Program 5/02 at 102 A 264,014
Revenue Bonds, Series 1992D, 6.650%, 5/01/12
3,800 Michigan State Building Authority, 1991 Revenue Refunding 10/01 at 102 AA+ 3,898,040
Bonds, Series I, 6.250%, 10/01/20
1,000 Michigan State Building Authority, 1998 Revenue Bonds (Facilities 10/09 at 100 AA+ 951,870
Program), Series I, 4.750%, 10/15/21
The State of Michigan, Certificates of Participation, 525 Redevco Inc:
2,000 5.500%, 6/01/19 6/10 at 100 AAA 2,085,800
2,000 5.500%, 6/01/27 6/10 at 100 AAA 2,064,640
Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, Series Y of 1996:
2,000 5.000%, 7/01/36 7/16 at 100 A 1,973,560
4,100 5.500%, 7/01/36 7/16 at 100 A 4,321,933
1,125 Puerto Rico Highway and Transportation Authority, Transportation 7/10 at 101 A 1,227,173
Revenue Bonds, Series B, 6.000%, 7/01/39
5,000 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101 AAA 4,964,950
Bonds (Detroit Metropolitan Wayne County Airport),
Series 2001A (General Obligation - Limited Tax), 5.000%, 12/01/21
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.4%
$ 2,505 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/01 at 102 AAA $ 2,580,275
(Detroit Metropolitan Wayne County Airport), Subordinate
Lien, Series 1991B, 6.750%, 12/01/21 (Alternative Minimum Tax)
3,000 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 2,898,330
(Detroit Metropolitan Wayne County Airport), Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
1,195 Charter County of Wayne, Michigan, Airport Revenue Bonds 12/08 at 101 AAA 1,141,679
(Detroit Metropolitan Wayne County Airport), Series 1998B,
4.875%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.0%
2,000 East Grand Rapids Public Schools, County of Kent, Michigan, 5/09 at 100 AAA 2,257,760
2000 School Building and Site Bonds (General Obligation -
Unlimited Tax), 6.000%, 5/01/29 (Pre-refunded to 5/01/09)
1,600 Gaylord Community Schools, Counties of Ostego and Antrim, 5/02 at 102 AAA 1,677,984
Michigan, 1992 School Building, Site and Refunding Bonds,
6.600%, 5/01/21 (Pre-refunded to 5/01/02)
1,000 Grosse Ile Township School District, Michigan, School Improvement 5/07 at 100 AAA 1,116,160
Refunding Bonds (General Obligation), Series 1996,
6.000%, 5/01/22 (Pre-refunded to 5/01/07)
3,100 Hemlock Public School District, Counties of Saginaw and Midland, 5/02 at 102 AAA 3,255,713
Michigan, 1992 School Building, Site and Refunding Bonds,
6.750%, 5/01/21 (Pre-refunded to 5/01/02)
2,000 Lincoln Park School District, Michigan, General Obligation Bonds, 5/06 at 101 AAA 2,217,340
Series 1996, 5.900%, 5/01/26 (Pre-refunded to 5/01/06)
2,100 Michigan Municipal Bond Authority, State Revolving Fund Revenue 10/02 at 102 AAA 2,234,421
Bonds, Series 1992A, 6.600%, 10/01/18 (Pre-refunded to 10/01/02)
1,745 Michigan Municipal Bond Authority, Local Government Loan 5/02 at 102 A*** 1,830,016
Program Revenue Bonds, Series 1992D, 6.650%, 5/01/12
(Pre-refunded to 5/01/02)
3,035 Michigan State Hospital Finance Authority, Hospital Revenue 12/02 at 102 AAA 3,256,130
Bonds (MidMichigan Obligated Group), Series 1992,
6.900%, 12/01/24 (Pre-refunded to 12/01/02)
2,150 North Branch Area Schools, County of Lapeer, Michigan, 5/02 at 102 AAA 2,254,791
1992 School Building, Site and Refunding Bonds (General
Obligation - Unlimited Tax), 6.600%, 5/01/17 (Pre-refunded
to 5/01/02)
1,500 Perry Public Schools, Counties of Shiawassee and Ingham, 5/02 at 101 1/2 AAA 1,563,495
Michigan, 1992 School Building and Site Bonds (General
Obligation - Unlimited Tax), 6.375%, 5/01/22 (Pre-refunded
to 5/01/02)
4,845 Saginaw-Midland Municipal Water Supply Corporation, Michigan, 9/04 at 102 A2*** 5,442,340
Water Supply Revenue Bonds (General Obligation - Limited
Tax), Series 1992, 6.875%, 9/01/16 (Pre-refunded to 9/01/04)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 17.7%
6,425 The Economic Development Corporation of the City of Detroit, 11/01 at 102 AAA 6,565,900
Michigan, Resource Recovery Revenue Bonds, Series 1991A,
6.875%, 5/01/09 (Alternative Minimum Tax)
2,390 Michigan South Central Power Agency, Power Supply System 11/01 at 102 Baa1 2,455,773
Revenue Refunding Bonds, 1991 Series, 6.750%, 11/01/10
4,475 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 4,734,416
Revenue Bonds, 2000 Series, 6.000%, 5/01/12
3,630 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call AAA 4,568,609
Bonds (Detroit Edison Company Pollution Control Project),
Series 1990BB, 7.000%, 5/01/21
4,330 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/01 at 102 AAA 4,430,673
Bonds (Detroit Edison Company Pollution Control Project),
Collateralized Series 1991CC, 6.950%, 9/01/21
7,600 Michigan Strategic Fund, Limited Obligation Refunding Revenue 12/01 at 102 AAA 7,838,032
Bonds (Detroit Edison Company Pollution Control Project),
Collateralized Series 1991DD, 6.875%, 12/01/21
2,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call Aaa 2,058,620
Bonds (Detroit Edison Company), 4.850%, 9/01/30
(Mandatory put 9/01/11)
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 1,029,760
Bonds (Detroit Edison Company Pollution Control Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax)
7,000 County of Monroe, Michigan, Pollution Control Revenue Bonds 9/02 at 102 AAA 7,383,950
(Detroit Edison Company Monroe and Fermi Plants Project),
Collateralized Series I 1992, 6.875%, 9/01/22 (Alternative Minimum Tax)
400 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101 AAA 407,884
Series HH, 5.250%, 7/01/29
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/05 at 100 A- 1,017,360
Series X, 5.500%, 7/01/25
Nuveen Michigan Quality Income Municipal Fund, Inc. (NUM) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 5,000 City of Wyandotte, County of Wayne, Michigan, 1992 Electric 10/02 at 102 AAA $ 5,261,350
Revenue Refunding Bonds, 6.250%, 10/01/17
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.3%
5,250 City of Detroit, Michigan, Sewage Disposal System Revenue 7/05 at 100 AAA 5,159,910
Refunding Bonds, Series 1995-B, 5.000%, 7/01/25
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1997-A:
3,000 5.500%, 7/01/20 7/07 at 101 AAA 3,108,420
1,730 5.000%, 7/01/22 7/07 at 101 AAA 1,713,323
1,000 City of Detroit, Michigan, Sewage Disposal System Revenue 1/10 at 101 AAA 1,075,200
Bonds, Series 1999-A, 5.875%, 7/01/27
6,000 City of Detroit, Michigan, Water Supply System Revenue and Revenue 7/04 at 102 AAA 5,878,440
Refunding Bonds, Series 1993, 5.000%, 7/01/23
2,000 City of Detroit, Michigan, Water Supply System Revenue Senior Lien 1/10 at 101 AAA 2,240,200
Bonds, Series 1999-A, 5.750%, 7/01/26
3,400 City of Detroit, Michigan, Water Supply System Revenue Senior Lien 7/11 at 101 AAA 3,639,088
Bonds, 2001 Series A, 5.750%, 7/01/28
City of Muskegon Heights, County of Muskegon, Michigan, Water
Supply System Revenue Bonds, Series 2000A:
1,040 5.625%, 11/01/25 11/10 at 100 Aaa 1,087,974
1,160 5.625%, 11/01/30 11/10 at 100 Aaa 1,210,018
------------------------------------------------------------------------------------------------------------------------------------
$ 260,041 Total Investments (cost $252,748,239) - 98.9% 267,556,723
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 3,107,177
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $270,663,900
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 2.6%
$ 3,050 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/02 at 102 BBB $ 3,127,745
(Waste Management, Inc. Project), Series 1992, 6.625%, 12/01/12
(Alternative Minimum Tax)
1,370 Michigan Strategic Fund, Limited Obligation Revenue Bonds 12/03 at 102 BBB 1,372,398
(WMX Technologies, Inc. Project), Series 1993, 6.000%, 12/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.3%
475 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 500,531
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.5%
3,000 Board of Regents of Eastern Michigan University, Michigan, 12/06 at 101 AAA 3,083,310
General Revenue Bonds, Series 1997, 5.500%, 6/01/27
1,100 Michigan Higher Education Student Loan Authority, Student Loan 10/02 at 102 A1 1,144,110
and Refunding Revenue Bonds, Series XV-A, 6.700%, 10/01/05
(Alternative Minimum Tax)
1,000 Board of Control of Saginaw Valley State University, Michigan, 7/09 at 100 Aaa 1,038,080
General Revenue Bonds, Series 1999, 5.625%, 7/01/29
2,500 Board of Governors of Wayne State University, Michigan, General 11/09 at 101 AAA 2,474,000
Revenue Bonds, Series 1999, 5.125%, 11/15/29
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.6%
2,050 City of Dearborn Economic Development Corporation, 11/05 at 102 AAA 2,161,992
Michigan, Hospital Revenue Bonds (Oakwood Obligated Group),
Series 1995A, 5.875%, 11/15/25
2,200 City of Hancock Hospital Finance Authority, Michigan, FHA-Insured 8/08 at 100 AAA 2,226,906
Mortgage Hospital Revenue Bonds (Portage Health System, Inc.),
Series 1998, 5.450%, 8/01/47
2,500 City of Kalamazoo Hospital Finance Authority, Michigan, Hospital 5/06 at 102 AAA 2,629,375
Revenue Refunding and Improvement Bonds (Bronson
Methodist Hospital), Series 1996, 5.750%, 5/15/16
Michigan State Hospital Finance Authority, Revenue and Refunding
Bonds (Detroit Medical Center Obligated Group), Series 1993A:
3,000 6.250%, 8/15/13 8/03 at 102 BBB- 2,992,380
3,200 6.500%, 8/15/18 8/03 at 102 BBB- 3,173,888
4,000 Michigan State Hospital Finance Authority, Hospital Revenue 9/02 at 102 A+ 4,038,520
and Refunding Bonds (Henry Ford Health System), Series 1992A,
5.750%, 9/01/17
2,000 Michigan State Hospital Finance Authority, Hospital Revenue and 1/05 at 102 A+ 2,073,600
Refunding Bonds (Otsego Memorial Hospital Gaylord), Series 1995,
6.250%, 1/01/20
2,500 Michigan State Hospital Finance Authority, Revenue Bonds 11/09 at 101 AA 2,629,850
(Ascension Health Credit Group), Series 1999A, 6.125%, 11/15/26
4,000 Michigan State Hospital Finance Authority, Hospital Revenue and 5/09 at 101 AAA 4,180,520
Refunding Bonds (Mercy Mount Clemens Corporation Obligated
Group), Series 1999A, 5.750%, 5/15/29
500 Michigan State Hospital Finance Authority, Hospital Revenue 8/08 at 101 BBB- 395,445
Bonds (Detroit Medical Center Obligated Group), Series 1998A,
5.250%, 8/15/28
4,300 Michigan State Hospital Finance Authority, Hospital Revenue Bonds 11/09 at 101 A+ 4,471,957
(Henry Ford Health System), Series 1999A, 6.000%, 11/15/24
3,000 Regents of the University of Michigan, Hospital Revenue 12/02 at 102 AA 3,034,770
Refunding Bonds, Series 1993A, 5.500%, 12/01/21
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1%
$ 1,335 Michigan State Housing Development Authority, Multifamily Senior 12/10 at 100 AAA $ 1,376,318
Lien Revenue Bonds (Landings), Series 2000A-1, 5.950%, 12/01/33
2,400 Michigan State Housing Development Authority, Limited Obligation 4/04 at 103 AAA 2,485,152
Revenue Bonds (Walled Lake Villa Project), Series 1993,
6.000%, 4/15/18
1,500 Michigan State Housing Development Authority, Limited Obligation 10/03 at 103 AAA 1,524,855
Revenue Bonds (Brenton Village Green Project), Series 1993,
5.625%, 10/15/18
790 Michigan State Housing Development Authority, Rental Housing 4/03 at 102 AAA 806,867
Revenue Bonds, 1993 Series A, 5.875%, 10/01/17
Mount Clemens Housing Corporation, Michigan, Multifamily Housing
Refunding Revenue Bonds (FHA-Insured Mortgage Loan - Section 8
Assisted Project), Series 1992A:
1,000 6.600%, 6/01/13 6/03 at 102 AAA 1,043,720
1,500 6.600%, 6/01/22 6/03 at 102 AAA 1,561,560
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.2%
315 Michigan State Housing Development Authority, Single Family 6/05 at 102 AA+ 318,837
Mortgage Revenue Bonds, 1995 Series A, 6.800%, 12/01/16
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 11.8%
1,000 Central Montcalm Public Schools, Counties of Montcalm and Ionia, 5/09 at 100 AAA 1,055,830
Michigan, 1999 School Building and Site Bonds (General
Obligation - Unlimited Tax), 5.750%, 5/01/24
730 Clarkston Community Schools, County of Oakland, Michigan, 5/03 at 102 AAA 758,288
1993 School Building, Site and Refunding Bonds, 5.900%, 5/01/16
1,500 City of Detroit School District, Wayne County, Michigan, School 5/09 at 101 AAA 1,395,795
Building and Site Improvement Bonds (General Obligation -
Unlimited Tax), Series 1998A, 4.750%, 5/01/28
3,000 Dexter Community Schools, Counties of Washtenaw and 5/03 at 102 AAA 3,006,360
Livingston, Michigan, 1993 School Building, Site and Refunding
Bonds (General Obligation - Unlimited Tax), 5.000%, 5/01/17
1,000 Durand Area Schools, County of Shiawasee, Michigan, General 5/07 at 100 AAA 1,014,720
Obligation Bonds, Series 1997, 5.375%, 5/01/23
3,815 City of East Lansing Building Authority, Counties of Ingham and 4/11 at 100 AA 3,895,458
Clinton, Michigan, 2000 Building Authority Bonds (General
Obligation - Unlimited Tax), 5.375%, 4/01/25
1,240 Milan Area Schools, Counties of Washtenaw and Monroe, 5/10 at 100 AAA 1,320,960
Michigan, 2000 School Building and Site Bonds (General
Obligation - Unlimited Tax), Series A, 5.625%, 5/01/16
1,100 Commonwealth of Puerto Rico, Public Improvement Refunding 7/07 at 101 1/2 A 1,175,372
Bonds (General Obligation Bonds), Series 1997, 5.750%, 7/01/17
380 Reeths-Puffer Schools, County of Muskegon, Michigan, 5/05 at 101 AAA 397,868
1995 School Building, Site and Refunding Bonds, 5.750%, 5/01/15
1,000 Rochester Community School District, Counties of Oakland and 5/10 at 100 AAA 1,066,040
Macomb, Michigan, 2000 School Building, Site and Refunding
Bonds (General Obligation - Unlimited Tax), Series I,
5.750%, 5/01/19
1,500 Romulus Community Schools, County of Wayne, Michigan, 5/09 at 100 AAA 1,668,585
1999 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.750%, 5/01/25
2,500 West Bloomfield School District, County of Oakland, Michigan, 5/10 at 100 AAA 2,695,400
2000 School Building and Site Bonds (General Obligation -
Unlimited Tax), 5.800%, 5/01/17
1,000 Western Townships Utilities Authority, Michigan, Sewage 1/02 at 100 AAA 1,014,710
Disposal System Refunding Bonds, Series 1991, 6.500%, 1/01/10
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.3%
5,750 City of Detroit, Michigan, Convention Facility Limited Tax Revenue 9/03 at 102 AAA 5,926,123
Refunding Bonds (Cobo Hall Expansion Project), Series 1993,
5.250%, 9/30/12
1,400 City of Detroit, Michigan, Downtown Development Authority, 7/08 at 100 AAA 1,313,368
Tax Increment Refunding Bonds (Development Area No. 1
Projects), Series 1998A, 4.750%, 7/01/25
7,000 City of Detroit, Wayne County, Michigan, Stadium Authority, 2/07 at 102 AAA 7,040,530
Building Authority Bonds (Limited Tax - General Obligation),
Series 1997, 5.250%, 2/01/27
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,000 Michigan Municipal Bond Authority, State Drinking Water Revolving 10/09 at 101 AAA $ 5,228,450
Fund Revenue Bonds, Series 1999, 5.500%, 10/01/21
2,750 Michigan State Building Authority, 1991 Revenue Refunding 10/01 at 102 AA+ 2,820,950
Bonds, Series I, 6.250%, 10/01/20
1,500 Michigan State Building Authority, 2000 Revenue Bonds (Facilities 10/10 at 100 AA+ 1,543,770
Program), Series I, 5.375%, 10/15/20
Michigan State Building Authority, 2001 Revenue Bonds (Facilities
Program), Series I:
2,720 5.500%, 10/15/19 10/11 at 100 AA+ 2,844,059
3,500 5.000%, 10/15/24 10/11 at 100 AA+ 3,454,780
2,275 State of Michigan, Comprehensive Transportation Bonds, 5/02 at 100 AA 2,324,186
Series 1992A, 5.750%, 5/15/12
1,000 Puerto Rico Highway and Transportation Authority, Highway 7/16 at 100 A 986,780
Revenue Bonds, Series Y of 1996, 5.000%, 7/01/36
3,615 Saginaw-Midland, Michigan, Municipal Water Supply Corporation, 9/02 at 101 1/2 A2 3,681,227
Water Supply System Revenue Bonds (Limited Tax - General
Obligation), Series 1993, 5.250%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 2.2%
1,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/03 at 102 BBB- 1,018,650
1993 Series A (American Airlines, Inc. Project), 6.300%, 6/01/23
(Alternative Minimum Tax)
2,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 101 AAA 1,932,220
County Airport, Airport Revenue Bonds, Series 1998A,
5.000%, 12/01/28 (Alternative Minimum Tax)
1,000 Charter County of Wayne, Michigan, Detroit Metropolitan Wayne 12/08 at 101 AAA 955,380
County Airport, Airport Revenue Bonds, Series 1998B,
4.875%, 12/01/23
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.3%
2,000 Board of Control of Ferris State University, Michigan, General 10/03 at 102 AAA 2,174,760
Revenue Bonds, Series 1993, 6.250%, 10/01/19
(Pre-refunded to 10/01/03)
1,950 Michigan Municipal Bond Authority, State Revolving Fund No Opt. Call AAA 2,113,410
Revenue Bonds, Series 1994, 7.000%, 10/01/03
1,000 Michigan State Building Authority, 1991 Revenue Bonds, Series II, 10/01 at 102 AA+*** 1,025,800
6.250%, 10/01/20 (Pre-refunded to 10/01/01)
3,000 Michigan State Hospital Finance Authority, Hospital Revenue 5/03 at 102 AAA 3,167,250
Refunding Bonds (St. John Hospital), Series 1993A,
6.000%, 5/15/13
620 Reeths-Puffer Schools, County of Muskegon, Michigan, 1995 5/05 at 101 AAA 676,432
School Building, Site and Refunding Bonds, 5.750%, 5/01/15
(Pre-refunded to 5/01/05)
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.6%
4,020 Michigan Public Power Agency, Refunding Revenue Bonds (Belle 1/03 at 102 AA- 4,042,874
River Project), 1993 Series A, 5.250%, 1/01/18
1,000 Michigan South Central Power Agency, Power Supply System No Opt. Call Baa1 1,057,970
Revenue Bonds, 2000 Series, 6.000%, 5/01/12
3,500 Michigan Strategic Fund, Limited Obligation Refunding Revenue 6/03 at 102 AAA 3,715,880
Bonds (Consumers Power Company Project), Collateralized
Series 1993B, 5.800%, 6/15/10
3,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue No Opt. Call Aaa 3,087,930
Bonds (Detroit Edison Company), Series 1995CC, 4.850%, 9/01/30
(Mandatory put 9/01/11)
1,000 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102 AAA 1,029,760
Bonds (Detroit Edison Company Pollution Control Project),
Collateralized Series 1999A, 5.550%, 9/01/29 (Alternative Minimum Tax)
County of Monroe, Michigan, Pollution Control Revenue Bonds
(Detroit Edison Company Project), Series CC-1992:
2,500 6.550%, 6/01/24 (Alternative Minimum Tax) 6/03 at 102 AAA 2,663,225
1,500 6.550%, 9/01/24 (Alternative Minimum Tax) 9/03 at 102 AAA 1,606,890
6,000 County of Monroe, Michigan, Pollution Control Revenue Bonds No Opt. Call AAA 6,507,060
(Detroit Edison Company Project), Series A-1994,
6.350%, 12/01/04 (Alternative Minimum Tax)
Nuveen Michigan Premium Income Municipal Fund, Inc. (NMP) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.4%
$ 2,000 City of Detroit, Michigan, Sewage Disposal System Revenue 7/07 at 101 AAA $ 2,072,280
Bonds, Series 1997-A, 5.500%, 7/01/20
3,755 City of Detroit, Michigan, Sewage Disposal System Revenue 7/03 at 102 AAA 3,909,556
and Revenue Refunding Bonds, Series 1993-A, 5.700%, 7/01/13
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1999-A:
5,000 5.750%, 7/01/26 1/10 at 101 AAA 5,325,050
2,000 5.875%, 7/01/27 1/10 at 101 AAA 2,150,399
2,700 City of Detroit, Michigan, Water Supply System Revenue Senior 7/11 at 100 AAA 2,705,048
Lien Bonds, 2001 Series A, 5.250%, 7/01/33
4,000 City of Detroit, Michigan, Water Supply System Revenue Senior 1/10 at 101 AAA 4,480,399
Lien Bonds, Series 1999-A, 5.750%, 7/01/26
1,000 City of Grand Rapids, Michigan, Sanitary Sewer System 7/08 at 101 AAA 931,649
Improvement and Refunding Revenue Bonds, Series 1998A,
4.750%, 1/01/28
------------------------------------------------------------------------------------------------------------------------------------
$ 166,405 Total Investments (cost $161,126,835) - 98.9% 171,846,167
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 1,937,890
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $173,784,057
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
See accompanying notes to financial statements.
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL GOODS - 1.1%
$ 2,440 Ohio Water Development Authority, Revenue Bonds (USA Waste 3/02 at 102 N/R $ 2,520,056
Services), Series 1992, 7.750%, 9/01/07 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.4%
3,065 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 3,229,744
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 4.9%
825 Bowling Green State University, Ohio, General Receipts Bonds, 12/01 at 102 A 851,153
Series 1991, 6.700%, 6/01/07
3,665 State of Ohio, Education Loan Revenue Bonds, Series 1997A1 6/07 at 102 AAA 3,787,814
(Supplemental Student Loan Program), 5.850%, 12/01/19
(Alternative Minimum Tax)
1,000 Ohio Higher Educational Facility Commission, Higher Educational 12/04 at 102 AAA 1,056,580
Facility Revenue Bonds (University of Dayton 1994 Project),
5.800%, 12/01/14
2,400 Ohio Higher Educational Facility Commission, Higher Educational 12/03 at 102 AAA 2,639,976
Facility Mortgage Revenue Bonds (University of Dayton 1992
Project), 6.600%, 12/01/17
1,200 Ohio Higher Educational Facility Commission, Higher Educational 9/06 at 101 N/R 1,246,104
Facility Revenue Bonds (University of Findlay 1996 Project),
6.125%, 9/01/16
1,575 Ohio State University, General Receipts Bonds, Series 1992A1, 12/02 at 102 AA 1,660,271
5.875%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 8.6%
City of Cambridge, Ohio, Hospital Revenue Refunding Bonds,
Series 1991 (Guernsey Memorial Hospital Project):
1,680 8.000%, 12/01/06 12/01 at 102 BBB 1,722,823
750 8.000%, 12/01/11 12/01 at 102 BBB 768,398
2,675 County of Clermont, Ohio, Hospital Facilities Revenue Refunding 1/03 at 102 AAA 2,768,866
Bonds, Series 1993A (Mercy Health System), 5.875%, 1/01/15
1,000 County of Cuyahoga, Ohio, Hospital Improvement and Refunding 2/07 at 102 AAA 1,046,820
Revenue Bonds, Series 1997 (MetroHealth System Project),
5.625%, 2/15/17
1,170 County of Cuyahoga, Ohio, Hospital Facilities Revenue Bonds, 2/03 at 102 Aa3 1,217,011
Series 1993 (Health Cleveland, Inc. - Fairview General
Hospital Project), 6.300%, 8/15/15
County of Franklin, Ohio, Hospital Refunding and Improvement
Revenue Bonds, 1996 Series A (The Children's Hospital Project):
1,000 5.750%, 11/01/20 11/06 at 101 Aa2 1,032,440
1,500 5.875%, 11/01/25 11/06 at 101 Aa2 1,552,890
1,500 County of Franklin, Ohio, Hospital Revenue Refunding and 11/02 at 102 Aa2 1,590,285
Improvement Bonds, 1992 Series A (The Children's Hospital
Project), 6.600%, 5/01/13
2,500 County of Marion, Ohio, Hospital Refunding and Improvement 5/06 at 102 BBB+ 2,547,175
Revenue Bonds, Series 1996 (The Community Hospital),
6.375%, 5/15/11
1,500 County of Montgomery, Ohio, Hospital Facilities Revenue 4/06 at 102 AAA 1,569,345
Refunding and Improvement Bonds, Series 1996 (Kettering
Medical Center), 5.625%, 4/01/16
2,500 County of Richland, Ohio, Hospital Facilities Revenue Improvement 11/10 at 101 A- 2,481,650
Bonds, Series 2000B (MedCentral Health System Obligated
Group), 6.375%, 11/15/30
1,500 City of Steubenville, Ohio, Hospital Facilities Revenue Refunding 10/10 at 100 A3 1,581,765
and Improvement Bonds, Series 2000 (Trinity Health System),
6.375%, 10/01/20
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 12.0%
1,385 County of Clermont, Ohio, Mortgage Revenue Bonds, 8/03 at 103 Aaa 1,406,024
Series 1994-A (GNMA Collateralized - S.E.M. Villa II Project),
5.950%, 2/20/30
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 1,435 County of Cuyahoga, Ohio, Multifamily Housing Revenue 6/08 at 105 Aaa $ 1,512,677
Bonds, Series 1997 (Water Street Associates Project),
6.150%, 12/20/26 (Alternative Minimum Tax)
985 County of Franklin, Ohio, Multifamily Housing Mortgage Revenue 1/05 at 103 Aa 969,644
Bonds, Series 1994A (FHA-Insured Mortgage Loan - Hamilton
Creek Apartments Project), 5.550%, 7/01/24 (Alternative
Minimum Tax)
6,155 County of Franklin, Ohio, Mortgage Revenue Bonds, 1/02 at 103 Aa 6,367,101
Series 1992A (FHA-Insured Mortgage Loan - Kensington Place
Project), 6.750%, 1/01/34
5,200 County of Hamilton, Ohio, Multifamily Housing Revenue Bonds, 1/07 at 102 AAA 5,249,140
Series 1997 (Huntington Meadows Project), 5.700%, 1/01/27
(Alternative Minimum Tax)
4,060 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102 Aaa 4,159,186
Mortgage Revenue Refunding Bonds, Series 1999A (FHA-Insured
Mortgage Loan - Northgate Apartments Section 8 Assisted
Project), 6.000%, 7/01/24
3,265 Ohio Housing Finance Agency, Multifamily Housing Revenue 12/09 at 100 AAA 3,404,611
Bonds, Series 1999C (Timber Lake Apartments Project),
6.150%, 12/01/24 (Alternative Minimum Tax)
4,315 Ohio Capital Corporation for Housing Mortgage, Revenue 2/09 at 102 Aa2 4,499,337
Refunding Bonds, Series 1999G (FHA-Insured Mortgage
Loans - Section 8 Assisted Projects), 5.950%, 2/01/24
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.4%
2,995 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/09 at 100 Aaa 3,177,605
Bonds, 2000 Series A1 (Mortgage-Backed Securities Program),
6.350%, 9/01/31 (Alternative Minimum Tax)
2,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,091,920
Bonds, Series 2000F (Mortgage-Backed Securities Program),
5.625%, 9/01/16
3,080 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/07 at 102 Aaa 3,151,733
Bonds, 1996 Series B-3 (Mortgage-Backed Securities Program),
5.750%, 9/01/28 (Alternative Minimum Tax)
4,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 9/08 at 102 Aaa 4,026,640
Bonds, 1997 Series B (Mortgage-Backed Securities Program),
5.400%, 9/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0%
1,365 County of Franklin, Ohio, Healthcare Facilities Revenue Bonds, 7/03 at 102 N/R 1,264,577
Series 1993 (Ohio Presbyterian Retirement Services),
6.500%, 7/01/23
1,000 County of Marion, Ohio, Healthcare Facilities Refunding and 11/03 at 102 BBB- 950,250
Improvement Revenue Bonds, Series 1993 (United Church
Homes, Inc. Project), 6.300%, 11/15/15
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.3%
1,000 Ansonia Local School District, County of Darke, Ohio, General 12/10 at 102 Aaa 1,040,590
Obligation Bonds, Series 2000, 5.500%, 12/01/22
Berea City School District, Ohio, School Improvement Bonds,
Series 1993 (General Obligation - Unlimited Tax):
650 7.500%, 12/15/06 12/03 at 102 AAA 726,499
680 7.450%, 12/15/07 12/03 at 102 AAA 759,261
1,750 Brecksville-Broadview Heights City School District, Ohio, 12/06 at 102 AAA 1,985,288
School Improvement Bonds, Series 1996 (General Obligation -
Unlimited Tax), 6.500%, 12/01/16
1,000 Cincinnati City School District, County of Hamilton, Ohio, 12/11 at 100 AAA 1,060,990
School Improvement Bonds, Series 2001 (General Obligation -
Limited Tax), 5.375%, 12/01/15
2,000 City of Columbus, Ohio, General Obligation Refunding Bonds, 1/02 at 102 Aaa 2,070,240
Series 1992B, 6.500%, 1/01/10
1,000 City of Dublin, Ohio, Various Purpose Improvement Bonds, 12/10 at 100 Aa1 1,000,300
Series 2000A (Unlimited Tax), 5.000%, 12/01/20
1,300 County of Franklin, Ohio, Refunding Bonds, Series 1993 12/08 at 102 AAA 1,347,203
(General Obligation - Limited Tax), 5.375%, 12/01/20
1,505 Greater Cleveland Regional Transit Authority, Ohio, Capital 12/06 at 101 Aaa 1,669,346
Improvement Bonds, Series 1996 (General Obligation),
5.650%, 12/01/16
1,000 Hilliard City School District, Ohio, School Improvement Bonds, 12/10 at 101 AAA 1,071,980
Series 2000 (General Obligation), 5.750%, 12/01/24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Lakota Local School District, County of Butler, Ohio, School 6/11 at 100 Aaa $ 2,002,920
Improvement and Refunding Bonds, Series 2001 (General
Obligation - Unlimited Tax), 5.125%, 12/01/26
1,260 Morgan Local School District, Counties of Morgan, Muskingum 12/10 at 101 AA- 1,350,695
and Washington, Ohio, School Improvement Bonds, Series 2000
(General Obligation - Unlimited Tax), 5.750%, 12/01/22
North Canton City School District, Ohio, School Improvement
Bonds, Series 1994 (General Obligation - Unlimited Tax):
650 9.750%, 12/01/03 No Opt. Call AAA 746,207
715 9.700%, 12/01/04 No Opt. Call AAA 856,713
1,500 Plain Local School District, Counties of Franklin and Licking, 12/10 at 100 Aaa 1,644,075
Ohio, Various Purpose Bonds, Series 2000 (General
Obligation - Unlimited Tax), 6.000%, 12/01/20
2,000 Commonwealth of Puerto Rico, Public Improvement Bonds 7/06 at 101 1/2 A 2,042,800
of 1996 (General Obligation), 5.400%, 7/01/25
1,300 Commonwealth of Puerto Rico, Public Improvement Refunding 7/07 at 101 1/2 A 1,389,076
Bonds, Series 1997 (General Obligation), 5.750%, 7/01/17
1,000 Revere Local School District, Ohio, School Improvement Bonds, 12/03 at 102 AAA 1,074,050
Series 1993 (General Obligation - Unlimited Tax), 6.000%, 12/01/16
2,870 City of Strongsville, Ohio, Various Purpose Improvement Bonds, 12/06 at 102 Aa3 3,075,205
Series 1996 (General Obligation - Limited Tax), 5.950%, 12/01/21
1,135 City of Toledo, Ohio, Various Purpose Improvement Bonds, No Opt. Call AAA 1,235,300
Series 1994 (General Obligation - Limited Tax), 7.000%, 12/01/03
1,000 Upper Arlington City School District, Ohio, Improvement Bonds, 12/06 at 101 AAA 1,010,920
Series 1996 (General Obligation), 5.250%, 12/01/22
2,000 Board of Education, Wayne Local School District, County of 12/06 at 101 AAA 2,144,720
Warren, Ohio, School Improvement Bonds, Series 1996
(General Obligation - Unlimited Tax), 6.100%, 12/01/24
3,000 Board of Education, West Clermont Local School District, 12/05 at 100 AAA 3,227,100
County of Clermont, Ohio, School Improvement Bonds,
Series 1995 (General Obligation - Unlimited Tax),
6.000%, 12/01/18
1,000 City of Westlake, Ohio, Various Purpose Improvement and 12/08 at 101 Aaa 1,058,170
Refunding Bonds, Series 1997 (General Obligation),
5.550%, 12/01/17
1,820 Worthington City School District, County of Franklin, Ohio, 6/02 at 102 AAA 1,907,760
Refunding Bonds (General Obligation - Unlimited Tax),
6.375%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 4.1%
1,250 City of Columbus, Ohio, Tax Increment Financing Bonds (Easton 6/09 at 101 AAA 1,204,363
Project), Series 1999, 4.875%, 12/01/24
7,000 County of Hamilton, Ohio, Sales Tax Bonds, Subordinate Series B, No Opt. Call Aaa 1,627,570
0.000%, 12/01/28
1,000 Ohio Building Authority, State Facilities Bonds (Juvenile 10/02 at 102 AA 1,057,050
Correctional Building Fund Projects), 1992 Series B,
6.000%, 10/01/12
3,000 Ohio Building Authority, State Facilities Bonds (Adult Correctional 10/03 at 102 AA 3,253,680
Building Fund Projects), 1993 Series A, 6.125%, 10/01/12
805 Ohio Department of Transportation, Certificates of Participation 10/01 at 101 AA 814,402
(Rickenbacker Port Authority Improvements), 6.125%, 4/15/15
(Alternative Minimum Tax)
1,500 Ohio State Public Facilities Commission, Higher Education Capital 12/01 at 102 AA 1,543,770
Facilities Bonds, Series II-1992A, 5.500%, 12/01/06
------------------------------------------------------------------------------------------------------------------------------------
TECHNOLOGY - 0.2%
500 County of Franklin, Ohio, Revenue Bonds, Series 1993 (Online 4/03 at 100 N/R 506,525
Computer Library Center, Incorporated Project), 6.000%, 4/15/13
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.3%
3,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA 2,934,300
Series 2000A, 5.000%, 1/01/31
3,430 City of Cleveland, Ohio, Parking Facilities Refunding Revenue 9/06 at 102 AAA 3,536,673
Bonds, Series 1996, 5.500%, 9/15/22
Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Columbus Municipal Airport Authority, Ohio, Airport Improvement
Revenue Bonds, Series 1994A (Port Columbus International Airport
Project):
$ 830 5.950%, 1/01/08 (Alternative Minimum Tax) 1/04 at 102 AAA $ 877,219
1,000 6.000%, 1/01/14 (Alternative Minimum Tax) 1/04 at 102 AAA 1,045,680
1,500 City of Dayton, Ohio, Special Facilities Revenue Refunding 2/08 at 102 BBB 1,389,795
Bonds, Series 1998A (Emery Air Freight Corporation and
Emery Worldwide Airlines, Inc. - Guarantors), 5.625%, 2/01/18
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.2%
2,000 City of Barberton, Ohio, Hospital Facilities Revenue Bonds, 1/02 at 102 N/R*** 2,075,840
Series 1992 (The Barberton Citizens Hospital Company Project),
7.250%, 1/01/12 (Pre-refunded to 1/01/02)
1,000 County of Butler, Ohio, Hospital Facilities Revenue Refunding 1/02 at 102 Baa1*** 1,038,340
and Improvement Bonds, Series 1991 (Fort Hamilton-Hughes
Memorial Hospital Center), 7.500%, 1/01/10 (Pre-refunded
to 1/01/02)
2,000 County of Carroll, Ohio, Hospital Improvement Revenue Bonds, 12/01 at 102 AAA 2,068,980
Series 1991 (Timken Mercy Medical Center), 7.125%, 12/01/18
(Pre-refunded to 12/01/01)
2,500 County of Clermont, Ohio, Waterworks System Revenue Bonds, 12/01 at 102 AAA 2,582,375
Series 1991, 6.625%, 12/01/14 (Pre-refunded to 12/01/01)
2,000 City of Cleveland, Ohio, Public Power System First Mortgage 11/04 at 102 AAA 2,270,360
Revenue Bonds, Series 1994A, 7.000%, 11/15/24
(Pre-refunded to 11/15/04)
590 City of Cleveland, Ohio, Public Power System Improvement 11/01 at 102 AAA 609,045
First Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17
(Pre-refunded to 11/15/01)
1,575 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 1,631,086
Revenue Bonds, Series F 1992A, 6.500%, 1/01/21 (Pre-refunded
to 1/01/02)
2,745 City of Cleveland, Ohio, Waterworks Improvement First Mortgage 1/02 at 102 AAA 2,842,749
Revenue Refunding Bonds, Series F 1992B, 6.500%, 1/01/11
(Pre-refunded to 1/01/02)
3,960 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/06 at 102 AAA 4,376,592
Revenue Bonds, 1st Mortgage Series 1996-H, 5.750%, 1/01/26
(Pre-refunded to 1/01/06)
1,950 City School District of Columbus, Franklin County, Ohio, School 12/02 at 102 AAA 2,086,539
Building Renovation and Improvement Bonds, Series 1992
(General Obligation - Unlimited Tax), 6.650%, 12/01/12
(Pre-refunded to 12/01/02)
1,500 County of Cuyahoga, Ohio, Hospital Improvement Revenue Bonds, 1/02 at 102 AA-*** 1,555,620
Series 1992 (University Hospitals Health System, Inc. Project),
6.500%, 1/15/19 (Pre-refunded to 1/15/02)
2,000 Dublin City School District, Counties of Franklin, Delaware and 12/02 at 102 AAA 2,127,800
Union, Ohio, Various Purpose School Building Construction
and Improvement Bonds (General Obligation - Unlimited Tax),
6.200%, 12/01/19 (Pre-refunded to 12/01/02)
2,480 County of Franklin, Ohio, First Mortgage Revenue Bonds, 12/01 at 103 AAA 2,824,447
Series 1979 (Online Computer Learning Center, Inc. Project),
7.500%, 6/01/09
3,250 City of Garfield Heights, Ohio, Hospital Improvement and 11/02 at 102 Aa3*** 3,469,408
Refunding Revenue Bonds, Series 1992B (Marymount Hospital
Project), 6.650%, 11/15/11 (Pre-refunded to 11/15/02)
3,000 Kent State University, Ohio, General Receipts Bonds, Series 1992, 5/02 at 102 AAA 3,144,450
6.500%, 5/01/22 (Pre-refunded to 5/01/02)
2,100 Lakota Local School District, County of Butler, Ohio, School 12/05 at 100 AAA 2,340,492
Improvement Bonds, Series 1994 (General Obligation -
Unlimited Tax), 6.250%, 12/01/14 (Pre-refunded to 12/01/05)
1,000 City of Newark, Ohio, Water System Improvement Bonds (General 12/03 at 102 AAA 1,087,040
Obligation - Limited Tax), 6.000%, 12/01/18 (Pre-refunded
to 12/01/03)
2,500 Commonwealth of Puerto Rico, Public Improvement Bonds 7/02 at 101 1/2 AAA 2,625,975
of 1992 (General Obligation), 6.600%, 7/01/13 (Pre-refunded
to 7/01/02)
1,400 Reynoldsburg City School District, Ohio, School Building 12/02 at 102 AAA 1,496,208
Construction and Improvement Bonds (General Obligation),
6.550%, 12/01/17 (Pre-refunded to 12/01/02)
1,000 Solon City School District, Ohio, School Improvement Bonds, 12/01 at 102 N/R*** 1,034,220
Series 1990 (General Obligation - Unlimited Tax),
7.150%, 12/01/13 (Pre-refunded to 12/01/01)
1,000 Sylvania City School District, Ohio, General Obligation Unlimited 12/05 at 101 AAA 1,056,940
Tax Bonds, Series 1995, 5.800%, 12/01/15 (Pre-refunded to 12/01/05)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.8%
$ 2,410 City of Cleveland, Ohio, Public Power System Improvement First 11/01 at 102 AAA $ 2,485,120
Mortgage Revenue Bonds, Series 1991B, 7.000%, 11/15/17
1,250 City of Hamilton, Ohio, Electric System Mortgage Revenue Bonds, 10/02 at 102 AAA 1,314,937
1992 Series B, 6.300%, 10/15/25
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds (JMG Funding Limited Partnership
Project), Series 1994:
2,000 6.375%, 1/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 2,118,200
4,000 6.375%, 4/01/29 (Alternative Minimum Tax) 10/04 at 102 AAA 4,236,400
3,000 Ohio Air Quality Development Authority, Air Quality Development 4/07 at 102 AAA 3,099,450
Revenue Bonds (JMG Funding Limited Partnership Project),
Series 1997, 5.625%, 1/01/23 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.0%
City of Cincinnati, Ohio, Water System Revenue Bonds, Series 2001:
1,000 5.500%, 12/01/17 6/11 at 100 AA+ 1,057,100
6,010 5.000%, 12/01/18 6/11 at 100 AA+ 6,053,693
3,000 5.000%, 12/01/19 6/11 at 100 AA+ 3,012,510
1,000 5.000%, 12/01/20 6/11 at 100 AA+ 1,000,320
1,000 City of Cleveland, Ohio, Waterworks Improvement First Mortgage No Opt. Call AAA 1,081,780
Refunding Revenue Bonds, Series G 1993, 5.500%, 1/01/21
City of Cleveland, Ohio, Waterworks Improvement First Mortgage
Revenue Refunding Bonds, Series F 1992B:
255 6.500%, 1/01/11 1/02 at 102 AAA 263,956
3,720 6.250%, 1/01/16 1/02 at 102 AAA 3,840,826
1,000 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/08 at 101 AAA 981,970
Revenue Bonds, Series I 1998, 5.000%, 1/01/28
40 City of Cleveland, Ohio, Waterworks Improvement and Refunding 1/06 at 102 AAA 41,907
Revenue Bonds, 1st Mortgage Series 1996-H, 5.750%, 1/01/26
2,500 City of Columbus, Ohio, Sewerage System Revenue Refunding 6/02 at 102 Aa2 2,616,950
Bonds, Series 1992, 6.250%, 6/01/08
2,110 County of Hamilton, Ohio, Metropolitan Sewer District of Greater 6/10 at 101 AAA 2,254,408
Cincinnati, Sewer System Improvement Revenue Bonds,
Series 2000A, 5.750%, 12/01/25
1,000 County of Montgomery, Ohio, Greater Moraine Beavercreek Sewer 11/02 at 102 AAA 1,054,800
District, Water Revenue Bonds, Series 1992, 6.250%, 11/15/17
2,000 Northeast Ohio Regional Sewer District, Wastewater Improvement 11/05 at 101 AAA 2,085,499
Revenue Refunding Bonds, Series 1995, 5.600%, 11/15/16
1,000 Ohio Water Development Authority, Water Development Revenue 6/05 at 102 AAA 1,055,309
Bonds, 1995 Fresh Water Series, 5.900%, 12/01/21
1,250 City of Oxford, Ohio, Water Supply System Mortgage Revenue 12/02 at 102 AAA 1,321,737
Bonds, Series 1992 Refunding, 6.000%, 12/01/14
2,000 Southwest Regional Water District, Ohio, Waterworks System 12/05 at 101 AAA 2,168,179
Revenue Bonds, Series 1995, 6.000%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
$ 219,730 Total Investments (cost $213,028,533) - 97.3% 223,879,603
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.7% 6,284,552
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $230,164,155
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Ohio Dividend Advantage Municipal Fund (NXI)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 9.1%
$ 1,000 State of Ohio, Higher Educational Facilities Revenue Bonds 12/10 at 101 AAA $ 1,041,120
(University of Dayton 2000 Project), 5.500%, 12/01/25
2,000 State of Ohio Higher Educational Facility Commission, Higher 11/11 at 101 AA 2,005,080
Educational Facility Revenue Bonds (Denison University 2001
Project), 5.200%, 11/01/26
3,150 The Student Loan Funding Corporation, Cincinnati, Ohio, Student 7/02 at 100 N/R 3,186,540
Loan Subordinated Revenue Refunding Bonds, Series 1992D,
6.600%, 7/01/05 (Alternative Minimum Tax)
2,000 University of Cincinnati, Ohio, General Receipts Bonds, 6/11 at 101 AAA 2,175,540
Series 2001A, 5.750%, 6/01/17
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 14.7%
1,300 City of Akron, Ohio, Bath and Copley Joint Township Hospital 11/03 at 102 Baa1 1,268,722
District, Hospital Facilities Revenue Bonds, Series 1993A
(Summa Health System Project), 5.500%, 11/15/13
1,950 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999 11/09 at 101 AAA 1,988,454
(ProMedica Healthcare Obligated Group), 5.375%, 11/15/29
County of Miami, Ohio, Hospital Facilities Revenue Refunding and
Improvement Bonds, Series 1996A (Upper Valley Medical Center):
2,405 6.250%, 5/15/16 5/06 at 102 Baa1 2,354,832
2,500 6.375%, 5/15/26 5/06 at 102 Baa1 2,449,400
City of Parma, Ohio, Hospital Improvement and Refunding Revenue
Bonds, Series 1998 (Parma Community Hospital Association):
2,250 5.250%, 11/01/13 11/08 at 101 A- 2,222,820
2,000 5.375%, 11/01/29 11/08 at 101 A- 1,878,440
1,500 County of Tuscarawas, Ohio, Hospital Facilities Revenue Bonds, 10/03 at 102 Baa2 1,427,175
Series 1993A (Union Hospital Project), 6.500%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.1%
1,790 Lucas Northgate Housing Development Corporation, Ohio, 1/04 at 102 Aaa 1,834,625
Mortgage Revenue Refunding Bonds, Series 1999A (FHA-Insured
Mortgage Loan - Northgate Apartments Section 8 Assisted Project),
5.950%, 7/01/19
2,885 Ohio Housing Finance Agency, FHA-Insured Mortgage Revenue 4/11 at 102 Aa2 2,907,561
Bonds, Series 2001A (Asbury Woods Project), 5.450%, 4/01/26
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5%
2,475 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,584,197
Bonds, 2000 Series C (Mortgage-Backed Securities Program),
6.050%, 3/01/32 (Alternative Minimum Tax)
3,000 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 3,135,150
Bonds, 2000 Series D (Mortgage-Backed Securities Program),
5.450%, 9/01/31 (Alternative Minimum Tax)
2,065 Ohio Housing Finance Agency, Residential Mortgage Revenue 8/10 at 100 Aaa 2,159,907
Bonds, 2000 Series F (Mortgage-Backed Securities Program),
5.625%, 9/01/16
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.2%
1,000 County of Franklin, Ohio, Health Care Facilities Revenue Bonds, 7/11 at 101 N/R 994,520
Series 2001A (Presbyterian Retirement Services), 7.125%, 7/01/29
1,970 County of Hamilton, Ohio, Health Care Facilities Improvement 10/08 at 102 A 1,998,545
Revenue Bonds, Series 1999A (Twin Towers), 5.750%, 10/01/19
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.1%
$ 2,440 Bay Village City School District, Ohio, School Improvement Bonds 12/10 at 100 Aa2 $ 2,411,062
(General Obligation - Unlimited Tax), Series 2001,
5.000%, 12/01/25
2,000 Hamilton Local School District, Franklin County, Ohio, School 12/11 at 100 AAA 1,963,880
Facilities Construction and Improvement Bonds (General
Obligation - Unlimited Tax), 5.000%, 12/01/28
Jackson City School District, Jackson County, Ohio, School
Improvement Bonds (General Obligation - Unlimited Tax), Series
2001:
880 5.500%, 12/01/22 6/11 at 100 Aaa 918,306
935 5.500%, 12/01/23 6/11 at 100 Aaa 974,962
2,000 Lakota Local School District, Butler County, Ohio, School 6/11 at 100 Aaa 2,002,920
Improvement and Refunding Bonds (General Obligation -
Unlimited Tax), Series 2001, 5.125%, 12/01/26
1,000 Nordonia Hills City School District, Ohio, School Improvement 12/10 at 101 AAA 1,037,190
Bonds, Series 2000, 5.450%, 12/01/25
1,850 Swanton Local School District, Fulton County, Ohio, General 12/11 at 101 AAA 1,875,919
Obligation Bonds, Series 2001, 5.250%, 12/01/25
2,000 Tipp City Exempted Village School District, Ohio, School Facilities 6/11 at 100 Aaa 1,979,480
Construction and Improvement Bonds, Series 2001,
5.000%, 12/01/24
1,485 West Chester Township, Butler County, Ohio, Various Purpose 11/11 at 101 Aaa 1,579,090
Refunding Bonds (General Obligation - Limited Tax), Series 2001,
5.500%, 12/01/17
1,000 West Holmes Local School District, Ohio, School Improvement 6/07 at 101 AAA 1,021,710
Bonds, Series 1997, 5.375%, 12/01/23
2,500 Westerville City School District, Franklin and Delaware Counties, 6/11 at 100 AAA 2,462,750
Ohio, General Obligation Various Purpose Bonds, Series 2001,
5.000%, 12/01/27
2,965 City of Worthington, Franklin County, Ohio, Various Purpose Bonds 12/11 at 100 AA+ 3,054,869
(General Obligation - Unlimited Tax), Series 2001,
5.375%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.0%
2,000 State of Ohio, Higher Education Capital Facilities Bonds, 2/11 at 100 AA+ 2,002,240
Series II-2001A, 5.000%, 2/01/20
4,000 Puerto Rico Municipal Finance Agency, 1999 Series A Bonds, 8/09 at 101 AAA 4,448,760
6.000%, 8/01/16
6,000 Virgin Islands Public Finance Authority, Revenue Bonds (Virgin 10/10 at 101 BBB- 6,481,800
Islands Gross Receipts Taxes Loan Note), Series 1999A,
6.375%, 10/01/19
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 7.2%
1,000 City of Cleveland, Ohio, Airport Special Revenue Bonds (Continental 9/08 at 101 BB 801,210
Airlines Inc. Project), Series 1998, 5.375%, 9/15/27
(Alternative Minimum Tax)
2,000 City of Cleveland, Ohio, Airport Special Revenue Bonds (Continental 12/09 at 101 N/R 1,752,240
Airlines Inc. Project), Refunding Series 1999, 5.700%, 12/01/19
(Alternative Minimum Tax)
1,000 City of Cleveland, Ohio, Airport System Revenue Bonds, 1/10 at 101 AAA 978,100
Series 2000A, 5.000%, 1/01/31
2,000 State of Ohio, Turnpike Revenue Bonds (Issued by the Ohio Turnpike 2/11 at 100 AA 2,074,320
Commission), 2001 Series, 5.500%, 2/15/26
1,000 Toledo-Lucas County Port Authority, Ohio, Revenue Refunding No Opt. Call Baa2 1,072,030
Bonds (CSX Transportation Inc. Project), Series 1992,
6.450%, 12/15/21
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.0%
City of Lebanon, Ohio, Electric System Mortgage Revenue Bonds,
Series 2001:
565 5.500%, 12/01/17 12/10 at 101 AAA 599,013
910 5.500%, 12/01/18 12/10 at 101 AAA 960,969
2,000 Ohio Air Quality Development Authority, Revenue Bonds, 6/03 at 102 BBB+ 2,037,200
1985 Series A (Columbus Southern Power Company Project),
6.250%, 12/01/20
2,000 Ohio Air Quality Development Authority, Air Quality Development 9/05 at 102 A3 2,040,520
Revenue Refunding Bonds, 1995 Series (Dayton Power and Light
Company Project), 6.100%, 9/01/30
Nuveen Ohio Dividend Advantage Municipal Fund (NXI) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 1,500 Ohio Air Quality Development Authority, Pollution Control Revenue 12/04 at 100 Baa3 $ 1,547,910
Refunding Bonds, Series 1999-C (Ohio Edison Company Project),
5.800%, 6/01/16 (Optional put 12/01/04)
3,000 Ohio Water Development Authority, Pollution Control Revenue No Opt. Call Baa3 3,010,350
Refunding Bonds, Series 1999-A (Ohio Edison Company Project),
4.300%, 6/01/33 (Mandatory put 6/01/03)
1,000 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102 N/R 868,270
Revenue Bonds, Convertible Series 1998A (Bay Shore Power
Project), 5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.9%
1,700 City of Cincinnati, Ohio, Water System Revenue Bonds, 6/11 at 100 AA+ 1,711,627
Series 2001, 5.125%, 12/01/21
------------------------------------------------------------------------------------------------------------------------------------
$ 89,970 Total Investments (cost $89,753,076) - 98.8% 91,281,325
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 1,142,507
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $92,423,832
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
Nuveen Texas Quality Income Municipal Fund (NTX)
Portfolio of
Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
BASIC MATERIALS - 3.7%
$ 4,500 Cass County Industrial Development Corporation, Texas, 3/10 at 101 Baa1 $ 4,734,270
Environmental Improvement Revenue Bonds, 2000 Series A
(International Paper Company Project), 6.600%, 3/15/24
(Alternative Minimum Tax)
3,000 Guadalupe-Blanco River Authority, Texas, Sewage and Solid 4/06 at 102 AA- 3,193,770
Waste Disposal Facility Bonds, Series 1996 (E.I. du Pont de
Nemours and Company Project), 6.400%, 4/01/26 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5%
940 The Children's Trust Fund, Puerto Rico, Tobacco Settlement 7/10 at 100 Aa3 990,525
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 5.1%
2,255 Brazos Higher Education Authority, Inc., Texas, Student Loan 3/02 at 102 N/R 2,332,121
Revenue Refunding Bonds, Series 1992-A, 6.875%, 9/01/04
(Alternative Minimum Tax)
1,055 Brazos Higher Education Authority, Inc., Texas, Student Loan No Opt. Call Aaa 1,125,010
Revenue Refunding Bonds, Series 1992C-1, 6.650%, 11/01/04
(Alternative Minimum Tax)
205 Brazos Higher Education Authority, Inc., Texas, Student Loan No Opt. Call N/R 219,822
Revenue Refunding Bonds, Subordinate Series 1993A-2,
6.800%, 12/01/04 (Alternative Minimum Tax)
1,000 City of Georgetown, Texas, Higher Education Finance Corporation, 2/04 at 100 A+ 1,038,210
Higher Education Revenue Bonds, Series 1994 (Southwestern
University Project), 6.300%, 2/15/14
1,445 Tyler Junior College District, Smith and Van Zanlt Counties, Texas, 8/04 at 100 AAA 1,540,601
Combined Fee Improvement Revenue and Refunding Bonds,
Series 1994, 5.900%, 8/15/13
2,330 City of Universal City, Texas, Education Facilities Corporation, 3/11 at 102 A- 2,347,498
Revenue Bonds, Series 2001 (Wayland Baptist University
Project), 5.625%, 3/01/26
2,000 Board of Regents of the University of Houston System, Texas, 2/05 at 100 AAA 2,125,640
Consolidated Revenue Bonds, Series 1995, 6.000%, 2/15/17
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 5.6%
5,000 Gulf Coast Waste Disposal Authority, Texas, Revenue Bonds 4/08 at 102 BBB- 4,526,850
(Valero Energy Corporation Project), Series 1998, 5.600%, 4/01/32
(Alternative Minimum Tax)
5,000 Gulf Coast Industrial Development Authority, Texas, Waste 6/08 at 102 BBB- 4,528,600
Disposal Revenue Bonds (Valero Refining and Marketing
Company Project), Series 1997, 5.600%, 12/01/31
(Alternative Minimum Tax)
3,000 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/09 at 101 BBB- 2,756,640
Revenue Bonds (Valero Energy Corporation Project),
Series 1999, 5.700%, 4/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.3%
3,500 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102 AAA 3,702,860
Hospital Revenue Refunding and Improvement Bonds (Hendrick
Medical Center Project), Series 1995C, 6.150%, 9/01/25
Gregg County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds (Good Shepherd Medical Center Project),
Series 2000:
2,000 6.875%, 10/01/20 10/10 at 101 AA 2,258,020
3,250 6.375%, 10/01/25 10/10 at 101 AA 3,517,215
1,500 Harris County Health Facilities Development Corporation, Texas, 8/11 at 100 AA 1,503,975
Revenue Bonds (St. Luke's Episcopal Hospital), Series 2001A,
5.500%, 2/15/21 (WI, settling 8/01/01)
1,000 Harris County Health Facilities Development Corporation, Texas, 10/09 at 101 AA 959,490
Hospital Revenue Bonds (Children's Hospital Project),
Series 1999A, 5.250%, 10/01/29
2,000 Harris County Health Facilities Development Corporation, Texas, 6/11 at 101 A- 2,102,020
Hospital Revenue Bonds (Memorial Hermann Healthcare
System), Series 2001A, 6.375%, 6/01/29
5,750 Midland County Hospital District, Texas, Hospital Revenue Bonds, No Opt. Call A- 3,439,708
Series 1992, 0.000%, 6/01/11
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,760 Parker County Hospital District, Texas, Hospital Revenue Bonds 8/09 at 102 BBB $ 1,677,738
(Campbell Health System), Series 1999, 6.250%, 8/15/19
4,500 Port of Corpus Christi Authority of Nueces County, Texas, 4/02 at 102 BBB 4,618,665
Pollution Control Revenue Bonds (Hoechst Celanese Corporation),
Series 1992, 6.875%, 4/01/17 (Alternative Minimum Tax)
5,350 Richardson Hospital Authority, Texas, Hospital Revenue Refunding 12/08 at 101 BBB+ 4,699,173
and Improvement Bonds (Baylor/Richardson Medical Center
Project), Series 1998, 5.625%, 12/01/28
1,050 Tarrant County Health Facilities Development Corporation, Texas, 11/08 at 101 A- 923,696
Hospital Revenue Bonds (Adventist Health System/Sunbelt
Obligated Group), Series 1998, 5.375%, 11/15/20
3,500 Tarrant County Health Facilities Development Corporation, Texas, 11/10 at 101 A- 3,687,915
Hospital Revenue Bonds (Adventist Health System/Sunbelt
Obligated Group), Series 2000, 6.625%, 11/15/20
1,500 Texas Health Facilities Development Corporation, Hospital 8/03 at 102 AAA 1,564,935
Revenue Bonds (All Saints Episcopal Hospitals of Fort Worth
Project), Series 1993B, 6.250%, 8/15/22
2,000 Tom Green County Health Facilities Development Corporation, 5/11 at 101 Baa3 2,004,560
Texas, Hospital Revenue Bonds (Shannon Health System
Project), Series 2001, 6.750%, 5/15/21
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4%
Grand Prairie Housing Finance Corporation, Texas, Multifamily
Housing Revenue Bonds (GNMA - Landings at Carrier Project),
Series 2000A:
1,000 6.650%, 9/20/22 9/10 at 105 AAA 1,096,180
2,030 6.750%, 9/20/28 9/10 at 105 AAA 2,234,807
5,668 Houston Housing Finance Corporation, Texas, Multifamily 9/11 at 105 Aaa 5,963,133
Housing Revenue Bonds (GNMA Collateralized Mortgage -
RRG Apartments Project), Series 2001, 6.250%, 9/20/35
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.0%
735 Baytown Housing Finance Corporation, Texas, Single Family 9/02 at 103 Aa2 791,713
Mortgage Revenue Refunding Bonds, Series 1992-A,
8.500%, 9/01/11
2,800 El Paso Housing Finance Corporation, Texas, Single Family Mortgage 4/11 at 106 3/4 AAA 2,976,820
Revenue Bonds, Series 2001A-3, 4.850%, 4/01/33
500 Galveston Property Finance Authority, Inc., Texas, Single Family 9/01 at 103 A3 516,790
Mortgage Revenue Bonds, Series 1991A, 8.500%, 9/01/11
1,390 Harrison County Finance Corporation, Texas, Single Family 12/01 at 103 A1 1,435,300
Mortgage Revenue Refunding Bonds, Series 1991,
8.875%, 12/01/11
930 Houston Housing Finance Corporation, Texas, Single Family 6/03 at 102 AAA 949,679
Mortgage Revenue Refunding Bonds, Series 1993A,
5.950%, 12/01/10
545 Port Arthur Housing Finance Corporation, Texas, Single Family 9/02 at 103 A2 603,560
Mortgage Revenue Refunding Bonds, Series 1992,
8.700%, 3/01/12
2,150 Travis County Housing Finance Corporation, Texas, Residential 12/01 at 103 AAA 2,221,208
Mortgage Bonds (GNMA and FNMA Mortgage-Backed Securities
Program), Senior Bonds, Series 1991A, 7.050%, 12/01/25
2,355 Texas Department of Housing and Community Affairs, Single Family 9/06 at 102 AAA 2,475,293
Mortgage Revenue Bonds, 1996 Series E, 6.000%, 9/01/17
720 Victoria Housing Finance Corporation, Texas, Single Family No Opt. Call Aaa 736,531
Mortgage Revenue Refunding Bonds, Series 1995, 8.125%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.7%
Bell County Health Facilities Development Corporation, Texas,
Retirement Facility Revenue Bonds (Buckner Retirement Services,
Inc. Obligated Group Project), Series 1998:
3,400 5.250%, 11/15/19 11/08 at 101 A- 3,210,722
5,000 5.250%, 11/15/28 11/08 at 101 A- 4,584,750
2,000 Tarrant County Health Facilities Development Corporation, Texas, 1/08 at 105 AAA 2,150,640
Tax-Exempt Mortgage Revenue Bonds (South Central Nursing
Homes Inc. Project), Series 1997A, 6.000%, 1/01/37
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.4%
$ 1,000 Caddo Mills Independent School District, Hunt County, Texas, 2/05 at 100 N/R $ 1,098,920
Unlimited Tax School Building and Refunding Bonds, Series 1995,
6.375%, 8/15/25
4,130 Coppell Independent School District, Dallas County, Texas, 8/09 at 75 11/32 AAA 2,067,561
Unlimited Tax School Building and Refunding Bonds, Series 1992,
0.000%, 8/15/14
1,475 City of Corpus Christi, Texas, General Improvement and Refunding 3/02 at 100 AAA 1,508,350
Bonds, Series 1992, 6.700%, 3/01/08
1,450 Donna Independent School District, Hidalgo County, Texas, 2/11 at 100 AAA 1,598,814
Unlimited Tax School Building Bonds, Series 2000,
6.000%, 2/15/17
2,800 City of Ennis, Texas, General Obligation Refunding and 8/02 at 100 AAA 2,897,552
Improvement Bonds, Series 1992, 6.500%, 8/01/13
2,000 Harlingen Consolidated Independent School District, Cameron 8/09 at 100 AAA 2,072,820
County, Texas, Unlimited Tax School Building Bonds, Series 1999,
5.650%, 8/15/29
3,600 Klein Independent School District, Harris County, Texas, Unlimited 8/09 at 100 AAA 3,615,300
Tax Schoolhouse Bonds, Series 1999A, 5.000%, 8/01/18
5,220 Leander Independent School District, Williamson and Travis 8/09 at 46 3/4 AAA 1,568,662
Counties, Texas, Unlimited Tax School Building and Refunding
Bonds, Series 2000, 0.000%, 8/15/21
1,545 Montgomery County, A political subdivision of the State of Texas, 9/07 at 72 3/8 AAA 807,680
Refunding Bonds, Series 1997, 0.000%, 3/01/14
2,000 Northside Independent School District, Bexar County, Texas, 8/10 at 100 AAA 2,140,220
Unlimited Tax School Building and Refunding Bonds, Series 2000,
5.875%, 8/15/25
1,825 Socorro Independent School District, El Pasco County, Texas, 2/06 at 100 Aaa 1,885,535
Unlimited Tax School Building Bonds, Series 1996,
5.750%, 2/15/21
2,000 State of Texas, Veterans Land Bonds (General Obligation Bonds), 12/04 at 100 Aa1 2,069,620
Series 1994, 6.400%, 12/01/24 (Alternative Minimum Tax)
3,490 State of Texas, Veterans Housing Assistance Bonds (General 12/03 at 102 Aa1 3,645,340
Obligation Bonds), Series 1993, 6.800%, 12/01/23
(Alternative Minimum Tax)
2,000 State of Texas, General Obligation Bonds (Water Financial 8/11 at 100 Aa1 2,019,380
Assistance), Series 2001, 5.250%, 8/01/23
1,795 United Independent School District, Webb County, Texas, Unlimited 8/12 at 100 AAA 1,861,559
Tax School Building Bonds, Series 2000, 5.375%, 8/15/18
5,290 Weslaco Independent School District, Hidlago County, Texas, 2/10 at 100 Aaa 5,421,986
General Obligation School Building Bonds, Series 2000,
5.500%, 2/15/25
West Independent School District, McLennan and Hill Counties,
Texas, Unlimited Tax School Building and Refunding Bonds, Series
1998:
1,000 0.000%, 8/15/22 8/13 at 61 7/32 AAA 305,900
1,000 0.000%, 8/15/23 8/13 at 57 31/32 AAA 287,920
1,000 8/15/24 8/13 at 54 7/8 AAA 270,890
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 7.3%
4,500 City of Austin, Texas, Hotel Occupancy Tax Subordinate Lien 11/09 at 100 AAA 4,751,145
Revenue Refunding Bonds, Series 1999, 5.800%, 11/15/29
1,000 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax Revenue 12/11 at 100 AAA 967,350
Bonds, Series 2001A, 5.000%, 12/01/31 (WI, settling 8/09/01)
1,450 Galveston Industrial Development Corporation, Texas, Sales Tax 9/05 at 100 AAA 1,540,466
Revenue Bonds, Series 1995, 5.750%, 9/01/15
1,575 Harris County, Texas, Toll Road Unlimited Tax and Subordinate 8/02 at 102 AA+ 1,659,231
Lien Revenue Refunding Bonds, Series 1992A, 6.500%, 8/15/15
800 City of Laredo, Webb County, Texas, Combination Tax and 8/04 at 100 AAA 855,864
Waterworks System, Revenue Certificates of Obligation,
Series 1994, 5.625%, 8/15/11
1,000 City of Laredo, Texas, Sports Venue Sales Tax Revenue Bonds, 3/09 at 100 AAA 1,004,350
Series 2001, 5.300%, 3/15/26
4,580 City of San Antonio, Texas, Hotel Occupancy Tax Revenue Bonds 8/06 at 102 AAA 4,761,276
(Henry B Gonzalez Convention Center Project), 5.700%, 8/15/26
Nuveen Texas Quality Income Municipal Fund (NTX) (continued)
Portfolio of Investments July 31, 2001
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.5%
$ 5,295 Alliance Airport Authority, Inc., Texas, Special Facilities Revenue 12/01 at 101 BBB- $ 5,411,702
Bonds, Series 1990 (American Airlines, Inc. Project),
7.500%, 12/01/29 (Alternative Minimum Tax)
5,020 Dallas-Fort Worth International Airport, Texas, Facility Improvement 5/02 at 102 AAA 5,231,091
Corporation, United Parcel Service Inc. Revenue Bonds,
Series 1992, 6.600%, 5/01/32 (Alternative Minimum Tax)
5,050 Dallas-Fort Worth International Airport, Texas, Facility Improvement 11/09 at 101 BBB- 5,090,956
Corporation, American Airlines, Inc. Revenue Bonds, Series 1999,
6.375%, 5/01/35 (Alternative Minimum Tax)
1,000 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/04 at 102 AAA 1,013,170
Bonds, Series 1994, 5.375%, 8/15/20
220 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/02 at 102 AAA 231,669
Bonds, Series 1992A, 6.500%, 8/15/17
320 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/01 at 100 AAA 320,861
Bonds, Series 1992B, 6.625%, 8/15/17
2,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100 AAA 2,053,340
Bonds, Series 2000A, 5.625%, 7/01/30 (Alternative Minimum Tax)
5,000 City of Houston, Texas, Airport System Subordinate Lien Revenue 1/02 at 102 AAA 5,114,800
Bonds, Series 1991A, 6.750%, 7/01/21 (Alternative Minimum Tax)
2,000 Puerto Rico Ports Authority, Special Facilities Revenue Bonds, 6/06 at 102 BBB- 2,055,080
1996 Series A (American Airlines, Inc. Project), 6.250%, 6/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 4.2%
255 Abilene Housing Development Corporation, Texas, First Lien No Opt. Call N/R*** 282,894
Revenue Bonds, Series 1978, 7.000%, 7/01/08
1,185 Fort Bend County Levee Improvement District No. 11, Texas, 9/04 at 100 AAA 1,312,980
A Political Subdivision of the State of Texas, Unlimited Tax Levee
Improvement Bonds, Series 1994, 6.900%, 9/01/17 (Pre-refunded
to 9/01/04)
1,780 Harris County, Texas, Toll Road Senior Lien Revenue Refunding 8/02 at 102 AAA 1,884,753
Bonds, Series 1992A, 6.500%, 8/15/17 (Pre-refunded to 8/15/02)
1,000 North Central Texas Health Facilities Development Corporation, No Opt. Call AAA 1,095,660
Hospital Revenue Bonds (Presbyterian Healthcare System
Project), Series 1996B, 5.750%, 6/01/26
2,500 Retama Development Corporation, Texas, Special Facilities No Opt. Call AAA 3,617,975
Revenue Bonds (Retama Park Racetrack Project), Series 1993,
8.750%, 12/15/17
665 City of San Antonio, Texas, Water System Revenue Refunding No Opt. Call AAA 760,940
Bonds, Series 1992, 6.500%, 5/15/10
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.6%
1,500 Brazos River Authority, Texas, Collateralized Pollution Control 12/02 at 102 AAA 1,576,155
Revenue Refunding Bonds (Texas Utilities Electric Company
Project), Series 1992, 6.500%, 12/01/27 (Alternative Minimum Tax)
2,500 Brazos River Authority, Texas, Revenue Refunding Bonds (Reliant 4/09 at 101 Baa1 2,362,200
Energy Incorporated Project), Series 1999A, 5.375%, 4/01/19
2,000 Harris County Health Facilities Development Corporation, Texas, 2/10 at 100 AAA 2,112,420
Thermal Utility Revenue Bonds (TECO Project), Series 2000,
5.750%, 2/15/15 (Alternative Minimum Tax)
1,500 Matagorda County Navigation District Number One, Texas, 7/03 at 102 AAA 1,587,015
Pollution Control Revenue Refunding Bonds (Central Power and
Light Company Project), Series 1993, 6.000%, 7/01/28
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.6%
2,500 Bexar, Texas, Metropolitan Development Corporation, Water 5/08 at 102 AAA 2,426,250
Facility Contract Revenue Bonds, Series 1998, 5.000%, 5/01/28
7,000 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 1,665,229
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/27
1,000 City of Houston, Texas, Water and Sewer System Prior Lien 12/02 at 102 Aaa 1,060,889
Revenue Refunding Bonds, Series 1992B, 6.375%, 12/01/14
4,000 City of Houston, Texas, Water and Sewer System Junior Lien 12/10 at 100 AAA 4,004,079
Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30
800 City of Houston, Texas, Water and Sewer System Junior Lien 12/07 at 101 AAA 810,439
Revenue Bonds, Series 1997C, 5.375%, 12/01/27
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,385 City of San Antonio, Texas, Water System Revenue Refunding 5/02 at 102 AAA $ 2,499,718
Bonds, Series 1992, 6.500%, 5/15/10
1,500 Texas Water Development Board, State Revolving Fund, Senior 7/09 at 100 AAA 1,551,179
Lien Revenue Bonds, Series 1999A, 5.500%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
$ 221,113 Total Investments (cost $201,628,677) - 98.9% 209,883,788
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,243,206
--------------------------------------------------------------------------------------------------------------------
Net Assets - 100% $212,126,994
====================================================================================================================
* Optional Call Provisions (not covered by the report of
independent auditors): Dates (month and year) and
prices of the earliest optional call or redemption.
There may be other call provisions at varying prices at
later dates.
** Ratings (not covered by the report of independent
auditors): Using the higher of Standard & Poor's or
Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
Statement of
Net Assets July 31, 2001
ARIZONA ARIZONA MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM
INCOME ADVANTAGE INCOME INCOME
(NAZ) (NFZ) (NUM) (NMP)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $93,582,014 $33,857,081 $267,556,723 $171,846,167
Cash 678,863 112,217 625,513 426,094
Receivables:
Interest 791,558 316,022 3,580,775 2,226,001
Investments sold 236,116 -- -- --
Other assets 17,156 4,094 15,301 3,775
------------------------------------------------------------------------------------------------------------------------------------
Total assets 95,305,707 34,289,414 271,778,312 174,502,037
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased -- -- -- --
Accrued expenses:
Management fees 51,950 10,021 146,648 94,744
Other 74,676 95,981 91,131 89,875
Preferred share dividends payable 8,425 3,451 28,841 14,101
Common share dividends payable 311,652 107,522 847,792 519,260
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 446,703 216,975 1,114,412 717,980
------------------------------------------------------------------------------------------------------------------------------------
Net assets $94,859,004 $34,072,439 $270,663,900 $173,784,057
====================================================================================================================================
Preferred shares, at liquidation value $30,000,000 $12,000,000 $ 94,000,000 $ 56,000,000
====================================================================================================================================
Preferred shares outstanding 1,200 480 3,760 2,240
====================================================================================================================================
Common shares outstanding 4,390,118 1,536,384 11,535,341 7,695,609
====================================================================================================================================
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value,
divided by Common shares outstanding) $ 14.77 $ 14.37 $ 15.32 $ 15.31
====================================================================================================================================
See accompanying notes to financial statements.
OHIO OHIO TEXAS
QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME
(NUO) (NXI) (NTX)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in municipal securities, at market value $223,879,603 $91,281,325 $209,883,788
Cash -- -- 2,037,354
Receivables:
Interest 2,676,249 1,324,399 3,435,861
Investments sold 4,743,000 319,112 101,327
Other assets 14,739 9,549 23,932
------------------------------------------------------------------------------------------------------------------------------------
Total assets 231,313,591 92,934,385 215,482,262
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 137,771 47,507 --
Payable for investments purchased -- -- 2,443,251
Accrued expenses:
Management fees 125,289 27,211 115,114
Other 154,702 119,680 93,994
Preferred share dividends payable 18,505 12,744 18,508
Common share dividends payable 713,169 303,411 684,401
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,149,436 510,553 3,355,268
------------------------------------------------------------------------------------------------------------------------------------
Net assets $230,164,155 $92,423,832 $212,126,994
====================================================================================================================================
Preferred shares, at liquidation value $ 77,000,000 $31,000,000 $ 69,000,000
====================================================================================================================================
Preferred shares outstanding 3,080 1,240 2,760
====================================================================================================================================
Common shares outstanding 9,510,936 4,214,908 9,440,806
====================================================================================================================================
Net asset value per Common share outstanding (net assets less
Preferred shares at liquidation value,
divided by Common shares outstanding) $ 16.10 $ 14.57 $ 15.16
====================================================================================================================================
See accompanying notes to financial statements.
Statement of
Operations Year Ended July 31, 2001
ARIZONA ARIZONA MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM
INCOME ADVANTAGE INCOME INCOME
(NAZ) (NFZ)* (NUM) (NMP)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $5,565,400 $ 768,790 $15,607,067 $ 9,635,149
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 608,400 98,589 1,707,737 1,096,980
Preferred shares - auction fees 75,000 11,342 235,002 139,999
Preferred shares - dividend disbursing agent fees 8,668 3,781 18,608 22,280
Shareholders' servicing agent fees and expenses 7,171 282 30,583 22,702
Custodian's fees and expenses 37,503 13,551 70,135 51,147
Directors'/Trustees' fees and expenses 1,159 496 3,810 2,081
Professional fees 14,447 7,305 14,721 13,579
Shareholders' reports - printing and mailing expenses 18,632 9,397 33,211 1,486
Stock exchange listing fees 21,675 2,521 35,991 19,793
Investor relations expense 12,350 2,927 64,769 26,007
Other expenses 11,748 1,483 17,070 7,858
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 816,753 151,674 2,231,637 1,403,912
Custodian fee credit (5,934) (5,721) (20,234) (6,215)
Expense reimbursement -- (45,205) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 810,819 100,748 2,211,403 1,397,697
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 4,754,581 668,042 13,395,664 8,237,452
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 574,900 (64,221) 722,430 1,000,973
Change in net unrealized appreciation (depreciation)
of investments 1,610,292 432,476 8,535,587 7,232,198
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 2,185,192 368,255 9,258,017 8,233,171
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $6,939,773 $1,036,297 $22,653,681 $16,470,623
====================================================================================================================================
* For the period January 31, 2001 (commencement of operations) through July
31, 2001.
See accompanying notes to financial statements.
OHIO OHIO TEXAS
QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME
(NUO) (NXI)** (NTX)
-----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $13,350,497 $1,352,253 $12,579,732
-----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,463,034 170,054 1,339,342
Preferred shares - auction fees 192,501 15,925 172,499
Preferred shares - dividend disbursing agent fees 29,999 2,055 19,998
Shareholders' servicing agent fees and expenses 33,783 860 16,550
Custodian's fees and expenses 90,610 15,321 43,334
Directors'/Trustees' fees and expenses 3,060 685 2,664
Professional fees 27,191 10,561 18,962
Shareholders' reports - printing and mailing expenses 59,318 14,507 2,322
Stock exchange listing fees 22,529 343 16,178
Investor relations expense 34,651 -- 23,848
Other expenses 17,188 388 15,901
-----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 1,973,864 230,699 1,671,598
Custodian fee credit (22,877) (9,373) (15,150)
Expense reimbursement -- (78,487) --
-----------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,950,987 142,839 1,656,448
-----------------------------------------------------------------------------------------------------------------------------------
Net investment income 11,399,510 1,209,414 10,923,284
-----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain (loss) from investment transactions 319,530 (25,604) 1,598,134
Change in net unrealized appreciation (depreciation)
of investments 5,042,976 1,528,249 6,666,684
-----------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 5,362,506 1,502,645 8,264,818
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $16,762,016 $2,712,059 $19,188,102
===================================================================================================================================
** For the period March 28, 2001 (commencement of operations) through July 31,
2001.
See accompanying notes to financial statements.
Statement of
Changes in Net Assets
ARIZONA
DIVIDEND
ARIZONA PREMIUM INCOME (NAZ) ADVANTAGE (NFZ) MICHIGAN QUALITY INCOME (NUM)
---------------------------- ---------------- -----------------------------
FOR THE
PERIOD 1/31/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED OF OPERATIONS) YEAR ENDED YEAR ENDED
7/31/01 7/31/00 THROUGH 7/31/01 7/31/01 7/31/00
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,754,581 $ 4,661,222 $ 668,042 $ 13,395,664 $ 13,701,756
Net realized gain (loss) from investment
transactions 574,900 110,480 (64,221) 722,430 134,066
Change in net unrealized appreciation
(depreciation) of investments 1,610,292 (2,782,750) 432,476 8,535,587 (6,273,884)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 6,939,773 1,988,952 1,036,297 22,653,681 7,561,938
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (3,620,798) (3,737,712) (537,665) (10,158,506) (10,559,526)
Preferred shareholders (1,026,132) (1,096,502) (126,749) (3,290,957) (3,452,672)
From accumulated net realized gains
from investment transactions:
Common shareholders (26,704) -- -- (222,220) (871,610)
Preferred shareholders (7,956) -- -- (73,780) (233,861)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (4,681,590) (4,834,214) (664,414) (13,745,463) (15,117,669)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- 21,858,485 -- --
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions 314,009 357,127 4,296 326,968 393,288
Net proceeds from sale of
Preferred shares -- -- 11,737,500 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 314,009 357,127 33,600,281 326,968 393,288
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 2,572,192 (2,488,135) 33,972,164 9,235,186 (7,162,443)
Net assets at the beginning of period 92,286,812 94,774,947 100,275 261,428,714 268,591,157
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $94,859,004 $92,286,812 $34,072,439 $270,663,900 $261,428,714
===================================================================================================================================
Balance of undistributed net
investment income at the end of period $ 228,590 $ 120,939 $ 3,628 $ 116,948 $ 169,982
===================================================================================================================================
See accompanying notes to financial statements.
OHIO
DIVIDEND
MICHIGAN PREMIUM INCOME (NMP) OHIO QUALITY INCOME (NUO) ADVANTAGE (NXI)
----------------------------- ---------------------------- ---------------
FOR THE
PERIOD 3/28/01
(COMMENCEMENT
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
7/31/01 7/31/00 7/31/01 7/31/00 THROUGH 7/31/01
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,237,452 $ 8,268,966 $ 11,399,510 $ 11,464,050 $ 1,209,414
Net realized gain (loss) from investment
transactions 1,000,973 226,680 319,530 (648,266) (25,604)
Change in net unrealized appreciation
(depreciation) of investments 7,232,198 (3,456,913) 5,042,976 (4,699,152) 1,528,249
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 16,470,623 5,038,733 16,762,016 6,116,632 2,712,059
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (6,298,850) (6,371,737) (8,621,168) (9,203,697) (910,419)
Preferred shareholders (1,952,915) (2,058,248) (2,592,880) (2,750,729) (177,887)
From accumulated net realized gains
from investment transactions:
Common shareholders -- -- -- -- --
Preferred shareholders -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (8,251,765) (8,429,985) (11,214,048) (11,954,426) (1,088,306)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 60,151,930
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions -- 104,960 571,647 921,543 124
Net proceeds from sale of
Preferred shares -- -- -- -- 30,547,750
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions -- 104,960 571,647 921,543 90,699,804
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 8,218,858 (3,286,292) 6,119,615 (4,916,251) 92,323,557
Net assets at the beginning of period 165,565,199 168,851,491 224,044,540 228,960,791 100,275
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $173,784,057 $165,565,199 $230,164,155 $224,044,540 $92,423,832
===================================================================================================================================
Balance of undistributed net
investment income at the end of period $ 213,121 $ 227,429 $ 270,766 $ 85,304 $ 121,108
===================================================================================================================================
See accompanying notes to financial statements.
Statement of
Changes in Net Assets (continued)
TEXAS QUALITY INCOME (NTX)
--------------------------------
YEAR ENDED YEAR ENDED
7/31/01 7/31/00
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,923,284 $ 10,931,368
Net realized gain (loss) from investment
transactions 1,598,134 (1,016,933)
Change in net unrealized appreciation
(depreciation) of investments 6,666,684 (5,912,218)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations 19,188,102 4,002,217
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From undistributed net investment income:
Common shareholders (8,175,738) (8,553,372)
Preferred shareholders (2,522,800) (2,571,967)
From accumulated net realized gains
from investment transactions:
Common shareholders -- (875,163)
Preferred shareholders -- (214,112)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets from
distributions to shareholders (10,698,538) (12,214,614)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- --
Net proceeds from shares issued
to shareholders due to reinvestment
of distributions -- 65,432
Net proceeds from sale
of Preferred shares -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions -- 65,432
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets 8,489,564 (8,146,965)
Net assets at the beginning of period 203,637,430 211,784,395
-----------------------------------------------------------------------------------------------------------------------------------
Net assets at the end of period $212,126,994 $203,637,430
===================================================================================================================================
Balance of undistributed net
investment income at the end of period $ 425,080 $ 200,334
===================================================================================================================================
See accompanying notes to financial statements.
Notes to
Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
exchange symbols are Nuveen Arizona Premium Income Municipal Fund, Inc. (NAZ),
Nuveen Arizona Dividend Advantage Municipal Fund (NFZ), Nuveen Michigan Quality
Income Municipal Fund, Inc. (NUM), Nuveen Michigan Premium Income Municipal
Fund, Inc. (NMP), Nuveen Ohio Quality Income Municipal Fund, Inc. (NUO), Nuveen
Ohio Dividend Advantage Municipal Fund (NXI) and Nuveen Texas Quality Income
Municipal Fund (NTX). Arizona Premium Income (NAZ), Michigan Quality Income
(NUM), Michigan Premium Income (NMP), Ohio Quality Income (NUO) and Texas
Quality Income (NTX) are traded on the New York Stock Exchange while Arizona
Dividend Advantage (NFZ) and Ohio Dividend Advantage (NXI) are traded on the
American Stock Exchange. Prior to the commencement of operations of Arizona
Dividend Advantage (NFZ) and Ohio Dividend Advantage (NXI), each Fund had no
operations other than those related to organizational matters, the initial
capital contribution of $100,275 by Nuveen Advisory Corp. (the "Adviser"), a
wholly owned subsidiary of The John Nuveen Company and the recording of the
organization expenses ($15,000) and their reimbursement by Nuveen Investments,
also a wholly owned subsidiary of The John Nuveen Company.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes, where applicable, by investing primarily in a
diversified portfolio of municipal obligations issued by state and local
government authorities within a single state. The Funds are registered under the
Investment Company Act of 1940 as closed-end management investment companies.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds 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 in a separate account with a current value at least equal to
the amount of the when-issued and delayed delivery purchase commitments. At July
31, 2001, Texas Quality Income (NTX) had outstanding when-issued purchase
commitments of $2,443,251. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Interest income is determined on the basis of interest accrued, adjusted for
amortization of premiums and accretion of discounts on long-term debt
securities.
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 share holders. Therefore, no federal income tax provision is
required. Furthermore, each Fund intends to satisfy conditions which will enable
interest from municipal securities, which is exempt from regular federal and
designated state income taxes, where applicable, to retain such tax-exempt
status when distributed to shareholders of the Funds. All monthly tax-exempt
income dividends paid during the fiscal year ended July 31, 2001, have been
designated Exempt Interest Dividends.
Notes to
Financial Statements (continued)
Dividends and Distributions to Shareholders
Tax-exempt net investment income is declared monthly as a dividend and payment
is made or reinvestment is credited to shareholder accounts after month-end. 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 shareholders of tax-exempt net investment income, net realized
capital gains and/or market discount are recorded on the ex-dividend date. The
amount and timing of distributions are determined in accordance with federal
income tax regulations, which may differ from accounting principles generally
accepted in the United States. Accordingly, temporary over-distributions as a
result of these differences may occur and will be classified as either
distributions in excess of net investment income, distributions in excess of net
realized gains and/or distributions in excess of net ordinary taxable income
from investment transactions, where applicable.
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 by the auction agent. The
number of shares outstanding, by Series and in total, for each Fund is as
follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN OHIO OHIO TEXAS
PREMIUM DIVIDEND QUALITY PREMIUM QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME INCOME INCOME ADVANTAGE INCOME
(NAZ) (NFZ) (NUM) (NMP) (NUO) (NXI) (NTX)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M -- -- -- 840 680 -- 760
Series T -- 480 -- -- -- -- --
Series W -- -- -- -- -- 1,240 --
Series Th 1,200 -- 3,200 1,400 1,400 -- 2,000
Series Th2 -- -- -- -- 1,000 -- --
Series F -- -- 560 -- -- -- --
---------------------------------------------------------------------------------------------------------
Total 1,200 480 3,760 2,240 3,080 1,240 2,760
=========================================================================================================
Effective March 16, 2001, Arizona Dividend Advantage (NFZ) issued 480 Series T,
$25,000 stated value Preferred shares.
Effective May 18, 2001, Ohio Dividend Advantage (NXI) issued 1,240 Series W,
$25,000 stated value Preferred shares.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap, and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended July 31, 2001.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments has agreed to pay all offering costs (other than the sales
load) that exceed $.03 per Common share for Arizona Dividend Advantage (NFZ) and
Ohio Dividend Advantage (NXI). Arizona Dividend Advantage's (NFZ) and Ohio
Dividend Advantage's (NXI) share of offering costs ($45,873 and $126,237,
respectively) were recorded as a reduction of the proceeds from the sale of the
common shares.
Costs incurred by Arizona Dividend Advantage (NFZ) and Ohio Dividend Advantage
(NXI) in connection with their offering of Preferred shares ($262,500 and
$452,250, respectively) were recorded as a reduction of the proceeds from the
sale of the Preferred shares.
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 from operations during the reporting period. Actual
results may differ from those estimates.
Audit Guide
In November 2000, the American Institute of Certified Public Accountants (AICPA)
issued a revised version of the AICPA Audit and Accounting Guide for Investment
Companies (the "Guide"). The Guide is effective for annual financial statements
issued for fiscal years beginning after December 15, 2000. It is not anticipated
that the adoption of the Guide will have a significant effect on the financial
statements.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
ARIZONA PREMIUM ARIZONA DIVIDEND MICHIGAN QUALITY
INCOME (NAZ) ADVANTAGE (NFZ) INCOME (NUM)
----------------------- --------------------------- ------------------------
FOR THE PERIOD 1/31/01
YEAR ENDED YEAR ENDED (COMMENCEMENT OF YEAR ENDED YEAR ENDED
7/31/01 7/31/00 OPERATIONS) THROUGH 7/31/01 7/31/01 7/31/00
---------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- 1,529,100 -- --
Shares issued to shareholders
due to reinvestment of
distributions 20,422 23,803 284 21,344 24,984
---------------------------------------------------------------------------------------------------------------
20,422 23,803 1,529,384 21,344 24,984
===============================================================================================================
Preferred shares sold -- -- 480 -- --
===============================================================================================================
MICHIGAN PREMIUM OHIO QUALITY OHIO DIVIDEND
INCOME (NMP) INCOME (NUO) ADVANTAGE (NXI)
----------------------- --------------------- ---------------------------
FOR THE PERIOD 3/28/01
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED (COMMENCEMENT OF
7/31/01 7/31/00 7/31/01 7/31/00 OPERATIONS) THROUGH 7/31/01
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- 4,207,900
Shares issued to shareholders
due to reinvestment of
distributions -- 7,104 34,578 57,710 8
-------------------------------------------------------------------------------------------------------------
-- 7,104 34,578 57,710 4,207,908
=============================================================================================================
Preferred shares sold -- -- -- -- 1,240
=============================================================================================================
TEXAS QUALITY
INCOME (NTX)
------------------------
YEAR ENDED YEAR ENDED
7/31/01 7/31/00
-------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- --
Shares issued to shareholders
due to reinvestment of
distributions -- 4,269
-------------------------------------------------------------------------------------------------------------
-- 4,269
=============================================================================================================
Preferred shares sold -- --
=============================================================================================================
Notes to
Financial Statements (continued)
3. DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid September 4, 2001, to shareholders of record
on August 15, 2001, as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN OHIO OHIO TEXAS
PREMIUM DIVIDEND QUALITY PREMIUM QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME INCOME INCOME ADVANTAGE INCOME
(NAZ) (NFZ) (NUM) (NMP) (NUO) (NXI) (NTX)
---------------------------------------------------------------------------------------------------------
Dividend per share $.0710 $.0700 $.0735 $.0675 $.0750 $.0720 $.0725
=========================================================================================================
4. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities and short-term municipal securities during the fiscal year ended July
31, 2001, were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM
INCOME ADVANTAGE INCOME INCOME
(NAZ) (NFZ)* (NUM) (NMP)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $16,778,727 $40,120,573 $53,674,663 $25,706,020
Short-term municipal securities 8,575,000 4,000,000 7,000,000 6,500,000
Sales and maturities:
Long-term municipal securities 18,151,694 6,624,233 53,127,683 25,672,107
Short-term municipal securities 8,575,000 4,000,000 9,000,000 6,500,000
=========================================================================================================
OHIO OHIO TEXAS
QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME
(NUO) (NXI)** (NTX)
---------------------------------------------------------------------------------------------------------
Purchases:
Long-term municipal securities $34,359,032 $92,681,491 $49,022,349
Short-term municipal securities 11,500,000 48,065,000 11,099,875
Sales and maturities:
Long-term municipal securities 37,768,107 2,870,295 53,128,423
Short-term municipal securities 11,500,000 48,065,000 11,100,000
=========================================================================================================
* For the period January 31, 2001 (commencement of operations) through July
31, 2001.
** For the period March 28, 2001 (commencement of operations) through July 31,
2001.
At July 31, 2001, the cost of investments owned for federal income tax purposes
were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN OHIO OHIO TEXAS
PREMIUM DIVIDEND QUALITY PREMIUM QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME INCOME INCOME ADVANTAGE INCOME
(NAZ) (NFZ) (NUM) (NMP) (NUO) (NXI) (NTX)
---------------------------------------------------------------------------------------------------------
$90,127,126 $33,488,826 $252,925,159 $161,126,835 $213,028,533 $89,778,680 $201,628,677
=========================================================================================================
At July 31, 2001, 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:
MICHIGAN OHIO
PREMIUM QUALITY
INCOME INCOME
(NMP) (NUO)
--------------------------------------------------------------------------------
Expiration year:
2002 $ -- $ 780,558
2003 -- 16,493
2004 729,467 622,243
2005 -- --
2006 -- --
2007 -- --
2008 -- 279,929
2009 -- 61,376
--------------------------------------------------------------------------------
Total $729,467 $1,760,599
================================================================================
5. UNREALIZED APPRECIATION (DEPRECIATION)
Gross unrealized appreciation and gross unrealized depreciation of investments
for federal income tax purposes at July 31, 2001, were as follows:
ARIZONA ARIZONA MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM
INCOME ADVANTAGE INCOME INCOME
(NAZ) (NFZ) (NUM) (NMP)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $ 5,478,428 $442,457 $15,622,526 $10,987,109
depreciation (2,023,540) (74,202) (990,962) (267,777)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $ 3,454,888 $368,255 $14,631,564 $10,719,332
=========================================================================================================
OHIO OHIO TEXAS
QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME
(NUO) (NXI) (NTX)
---------------------------------------------------------------------------------------------------------
Gross unrealized:
appreciation $11,127,404 $1,559,956 $10,595,777
depreciation (276,334) (57,311) (2,340,666)
---------------------------------------------------------------------------------------------------------
Net unrealized appreciation $10,851,070 $1,502,645 $ 8,255,111
=========================================================================================================
Notes to
Financial Statements (continued)
6. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Arizona Dividend Advantage's (NFZ) and Ohio Dividend
Advantage's (NXI)) 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 of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For the next $3 billion .5875 of 1
For net assets over $5 billion .5750 of 1
================================================================================
Under Arizona Dividend Advantage's (NFZ) and Ohio Dividend Advantage's (NXI)
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 of each Fund as follows:
AVERAGE DAILY NET ASSETS MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500 of 1%
For the next $125 million .6375 of 1
For the next $250 million .6250 of 1
For the next $500 million .6125 of 1
For the next $1 billion .6000 of 1
For net assets over $2 billion .5750 of 1
================================================================================
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Arizona Dividend Advantage (NFZ) in an amount equal to .30% of the
average daily net assets for the period from the Fund's commencement of
operations through January 31, 2006, .25% of the average daily net assets for
the year ended January 31, 2007, .20% of the average daily net assets for the
year ended January 31, 2008, .15% of the average daily net assets for the year
ended January 31, 2009, .10% of the average daily net assets for the year ended
January 31, 2010, and .05% of the average daily net assets for the year ended
January 31, 2011. The Adviser has not agreed to reimburse Arizona Dividend
Advantage (NFZ) for any portion of its fees and expenses beyond January 31,
2011.
The Adviser has agreed to waive part of its management fees or reimburse certain
expenses of Ohio Dividend Advantage (NXI) in an amount equal to .30% of the
average daily net assets for the period from the Fund's commencement of
operations through March 31, 2006, .25% of the average daily net assets for the
year ended March 31, 2007, .20% of the average daily net assets for the year
ended March 31, 2008, .15% of the average daily net assets for the year ended
March 31, 2009, .10% of the average daily net assets for the year ended March
31, 2010, and .05% of the average daily net assets for the year ended March 31,
2011. The Adviser has not agreed to reimburse Ohio Dividend Advantage (NXI) for
any portion of its fees and expenses beyond March 31, 2011.
The 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.
7. COMPOSITION OF NET ASSETS
At July 31, 2001, net assets consisted of:
ARIZONA ARIZONA MICHIGAN MICHIGAN
PREMIUM DIVIDEND QUALITY PREMIUM
INCOME ADVANTAGE INCOME INCOME
(NAZ) (NFZ) (NUM) (NMP)
---------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $30,000,000 $12,000,000 $ 94,000,000 $ 56,000,000
Common shares, $.01 par value per share 43,901 15,364 115,353 76,956
Paid-in surplus 60,896,806 21,685,192 161,077,943 107,504,115
Balance of undistributed net investment income 228,590 3,628 116,948 213,121
Accumulated net realized gain (loss) from
investment transactions 234,819 (64,221) 545,172 (729,467)
Net unrealized appreciation of investments 3,454,888 432,476 14,808,484 10,719,332
---------------------------------------------------------------------------------------------------------
Net assets $94,859,004 $34,072,439 $270,663,900 $173,784,057
==========================================================================================================
Authorized shares:
Common 200,000,000 Unlimited 200,000,000 200,000,000
Preferred 1,000,000 Unlimited 1,000,000 1,000,000
==========================================================================================================
OHIO OHIO TEXAS
QUALITY DIVIDEND QUALITY
INCOME ADVANTAGE INCOME
(NUO) (NXI) (NTX)
---------------------------------------------------------------------------------------------------------
Preferred shares, $25,000 stated value per share,
at liquidation value $ 77,000,000 $31,000,000 $ 69,000,000
Common shares, $.01 par value per share 95,109 42,149 94,408
Paid-in surplus 143,707,808 59,757,930 133,770,404
Balance of undistributed net investment income 270,766 121,108 425,080
Accumulated net realized gain (loss) from
investment transactions (1,760,598) (25,604) 581,991
Net unrealized appreciation of investments 10,851,070 1,528,249 8,255,111
---------------------------------------------------------------------------------------------------------
Net assets $230,164,155 $92,423,832 $212,126,994
==========================================================================================================
Authorized shares:
Common 200,000,000 Unlimited Unlimited
Preferred 1,000,000 Unlimited Unlimited
==========================================================================================================
Financial Highlights
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------- -------------------------------------------------------------
Net Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
==================================================================================================================================
ARIZONA PREMIUM
INCOME (NAZ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $14.25 $1.09 $ .50 $1.59 $(.83) $(.23) $(.01) $-- $(1.07)
2000 14.90 1.06 (.61) .45 (.85) (.25) -- -- (1.10)
1999 15.43 1.07 (.55) .52 (.84) (.21) -- -- (1.05)
1998 15.34 1.05 .10 1.15 (.83) (.23) -- -- (1.06)
1997 14.51 1.06 .81 1.87 (.82) (.22) -- -- (1.04)
ARIZONA DIVIDEND
ADVANTAGE (NFZ)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) 14.33 .44 .23 .67 (.35) (.08) -- -- (.43)
MICHIGAN QUALITY
INCOME (NUM)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 14.54 1.16 .82 1.98 (.88) (.29) (.02) (.01) (1.20)
2000 15.20 1.19 (.53) .66 (.92) (.30) (.08) (.02) (1.32)
1999 15.91 1.15 (.63) .52 (.92) (.21) (.06) (.02) (1.21)
1998 15.95 1.17 (.01) 1.16 (.95) (.24) (.01) -- (1.20)
1997 15.28 1.18 .72 1.90 (.95) (.24) (.03) (.01) (1.23)
MICHIGAN PREMIUM
INCOME (NMP)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 14.24 1.07 1.07 2.14 (.82) (.25) -- -- (1.07)
2000 14.68 1.07 (.41) .66 (.83) (.27) -- -- (1.10)
1999 15.30 1.05 (.64) .41 (.82) (.21) -- -- (1.03)
1998 15.14 1.04 .19 1.23 (.82) (.25) -- -- (1.07)
1997 14.16 1.05 .97 2.02 (.80) (.24) -- -- (1.04)
==================================================================================================================================
Total Returns
----------------------
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
====================================================================================
ARIZONA PREMIUM
INCOME (NAZ)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $-- $14.77 $16.3200 17.77 % 9.74%
2000 -- 14.25 14.6250 (8.80) 1.61
1999 -- 14.90 17.0000 8.67 1.92
1998 -- 15.43 16.4375 12.18 6.14
1997 -- 15.34 15.4375 17.81 11.74
ARIZONA DIVIDEND
ADVANTAGE (NFZ)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) (.20) 14.37 15.6500 6.76 2.81
MICHIGAN QUALITY
INCOME (NUM)
Year Ended 7/31:
2001 -- 15.32 15.4200 17.11 11.90
2000 -- 14.54 14.0000 (9.92) 2.51
1999 (.02) 15.20 16.6875 2.18 1.62
1998 -- 15.91 17.3125 10.27 5.97
1997 -- 15.95 16.6250 14.02 11.19
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001 -- 15.31 14.7100 17.81 13.61
2000 -- 14.24 13.2500 (6.16) 2.95
1999 -- 14.68 15.0625 5.95 1.23
1998 -- 15.30 15.0000 13.74 6.62
1997 -- 15.14 13.9375 14.95 12.97
====================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------
Before Credit/Reimbursement
--------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
=====================================================================================
ARIZONA PREMIUM
INCOME (NAZ)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $ 94,859 1.28% 7.47% .87% 5.07%
2000 92,287 1.26 7.58 .85 5.09
1999 94,775 1.29 6.88 .89 4.75
1998 96,546 1.28 6.85 .88 4.71
1997 95,731 1.29 7.18 .87 4.86
ARIZONA DIVIDEND
ADVANTAGE (NFZ)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) 34,072 1.43* 5.80* 1.00* 4.07*
MICHIGAN QUALITY
INCOME (NUM)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001 270,664 1.30 7.79 .84 5.03
2000 261,429 1.29 8.29 .82 5.28
1999 268,591 1.19 7.28 .82 5.02
1998 261,259 1.19 7.35 .82 5.09
1997 260,247 1.21 7.64 .83 5.23
MICHIGAN PREMIUM
INCOME (NMP)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001 173,784 1.24 7.24 .83 4.85
2000 165,565 1.29 7.73 .85 5.07
1999 168,851 1.29 6.82 .87 4.62
1998 173,451 1.29 6.87 .87 4.64
1997 172,275 1.29 7.27 .86 4.83
=====================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Municipal Auction Rate Cumulative
After Credit/Reimbursement*** Preferred Stock at End of Period
----------------------------------------------------- ---------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
========================================================================================================================
ARIZONA PREMIUM
INCOME (NAZ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 1.27% 7.48% .87% 5.08% 18% $30,000 $25,000 $79,049
2000 1.25 7.59 .84 5.10 33 30,000 25,000 76,906
1999 1.29 6.88 .89 4.75 6 30,000 25,000 78,979
1998 1.28 6.85 .88 4.71 17 30,000 25,000 80,455
1997 1.29 7.18 .87 4.86 11 30,000 25,000 79,776
ARIZONA DIVIDEND
ADVANTAGE (NFZ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) .95* 6.28* .66* 4.40* 21 12,000 25,000 70,984
MICHIGAN QUALITY
INCOME (NUM)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 1.29 7.80 .83 5.04 20 94,000 25,000 71,985
2000 1.27 8.31 .81 5.29 25 94,000 25,000 69,529
1999 1.19 7.28 .82 5.03 21 94,000 25,000 71,434
1998 1.19 7.35 .82 5.09 8 80,000 25,000 81,644
1997 1.21 7.64 .83 5.23 11 80,000 25,000 81,327
MICHIGAN PREMIUM
INCOME (NMP)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 1.23 7.25 .82 4.86 15 56,000 25,000 77,582
2000 1.28 7.74 .84 5.08 34 56,000 25,000 73,913
1999 1.28 6.83 .87 4.63 9 56,000 25,000 75,380
1998 1.29 6.87 .87 4.64 6 56,000 25,000 77,433
1997 1.29 7.27 .86 4.83 4 56,000 25,000 76,908
========================================================================================================================
* 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 Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in 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 January 31, 2001 (commencement of operations) through July
31, 2001.
See accompanying notes to financial statements.
Financial Highlights (continued)
Investment Operations Less Distributions
-------------------------------------- -------------------------------------------------------------
Net Net
Net Investment Investment Capital Capital
Realized/ Income to Income to Gains to Gains to
Beginning Net Unrealized Common Preferred Common Preferred
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) Total holders holders+ holders holders+ Total
==================================================================================================================================
OHIO QUALITY
INCOME (NUO)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $15.52 $1.20 $ .56 $1.76 $(.91) $(.27) $-- $-- $(1.18)
2000 16.13 1.21 (.56) .65 (.97) (.29) -- -- (1.26)
1999 16.65 1.21 (.51) .70 (.98) (.24) -- -- (1.22)
1998 16.57 1.22 .09 1.31 (.97) (.26) -- -- (1.23)
1997 15.69 1.23 .88 2.11 (.96) (.27) -- -- (1.23)
OHIO DIVIDEND
ADVANTAGE (NXI)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) 14.33 .29 .35 .64 (.22) (.04) -- -- (.26)
TEXAS QUALITY
INCOME (NTX)
----------------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 14.26 1.16 .88 2.04 (.87) (.27) -- -- (1.14)
2000 15.13 1.16 (.74) .42 (.91) (.27) (.09) (.02) (1.29)
1999 15.90 1.16 (.72) .44 (.90) (.22) (.07) (.02) (1.21)
1998 15.86 1.17 .07 1.24 (.93) (.27) -- -- (1.20)
1997 15.06 1.19 .81 2.00 (.94) (.26) -- -- (1.20)
==================================================================================================================================
Total Returns
----------------------
Offering
Costs and Based
Preferred Ending Based on
Share Net Ending on Net
Underwriting Asset Market Market Asset
Discounts Value Value Value** Value**
====================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $-- $16.10 $16.8000 6.86 % 9.85%
2000 -- 15.52 16.6250 (1.80) 2.50
1999 -- 16.13 18.0000 5.09 2.74
1998 -- 16.65 18.0625 10.14 6.53
1997 -- 16.57 17.3125 14.70 12.14
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) (.14) 14.57 15.3500 3.77 3.21
TEXAS QUALITY
INCOME (NTX)
------------------------------------------------------------------------------------
Year Ended 7/31:
2001 -- 15.16 14.7300 21.16 12.74
2000 -- 14.26 12.9375 (7.93) 1.15
1999 -- 15.13 15.1875 2.97 1.21
1998 -- 15.90 15.6875 6.45 6.27
1997 -- 15.86 15.6250 11.76 11.93
====================================================================================
Ratios/Supplemental Data
---------------------------------------------------------------------
Before Credit/Reimbursement
---------------------------------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Ending Net Assets Net Assets Total Total
Net Applicable Applicable Net Assets Net Assets
Assets to Common to Common Including Including
(000) Shares++ Shares++ Preferred++ Preferred++
=====================================================================================
OHIO QUALITY
INCOME (NUO)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001 $230,164 1.32% 7.58% .87% 5.01%
2000 224,045 1.31 7.88 .85 5.15
1999 228,961 1.26 7.26 .84 4.87
1998 232,940 1.29 7.37 .86 4.92
1997 231,232 1.30 7.73 .85 5.08
OHIO DIVIDEND
ADVANTAGE (NXI)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) 92,424 1.15* 5.58* .87* 4.25*
TEXAS QUALITY
INCOME (NTX)
-------------------------------------------------------------------------------------
Year Ended 7/31:
2001 212,127 1.21 7.87 .81 5.25
2000 203,637 1.27 8.18 .84 5.39
1999 211,784 1.23 7.31 .84 5.00
1998 218,669 1.22 7.40 .83 5.06
1997 217,999 1.22 7.81 .83 5.27
=====================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Municipal Auction Rate Cumulative
After Credit/Reimbursement*** Preferred Stock at End of Period
----------------------------------------------------- ---------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Expenses Income to Expenses Income to
to Average Average to Average Average
Net Assets Net Assets Total Total Aggregate Liquidation
Applicable Applicable Net Assets Net Assets Portfolio Amount and Market Asset
to Common to Common Including Including Turnover Outstanding Value Coverage
Shares++ Shares++ Preferred++ Preferred++ Rate (000) Per Share Per Share
========================================================================================================================
OHIO QUALITY
INCOME (NUO)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 1.30% 7.60% .86% 5.02% 15% $77,000 $25,000 $74,729
2000 1.29 7.89 .84 5.16 11 77,000 25,000 72,742
1999 1.25 7.27 .84 4.88 3 77,000 25,000 74,338
1998 1.29 7.37 .86 4.92 9 77,000 25,000 75,630
1997 1.30 7.73 .85 5.08 25 77,000 25,000 75,075
OHIO DIVIDEND
ADVANTAGE (NXI)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001(a) .71* 6.02* .54* 4.58* 4 31,000 25,000 74,535
TEXAS QUALITY
INCOME (NTX)
------------------------------------------------------------------------------------------------------------------------
Year Ended 7/31:
2001 1.19 7.88 .80 5.26 24 69,000 25,000 76,858
2000 1.26 8.19 .83 5.40 32 69,000 25,000 73,782
1999 1.23 7.32 .84 5.00 19 69,000 25,000 76,733
1998 1.22 7.40 .83 5.06 17 69,000 25,000 79,228
1997 1.22 7.81 .83 5.27 13 69,000 25,000 78,985
========================================================================================================================
* 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 Net Asset Value is the
combination of reinvested dividend income, reinvested capital gains
distributions, if any, and changes in net asset value per share. Total
returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 28, 2001 (commencement of operations) through July 31,
2001.
See accompanying notes to financial statements.
Report of
Independent Auditors
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN ARIZONA PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN ARIZONA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN MICHIGAN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN MICHIGAN PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN OHIO DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN TEXAS QUALITY INCOME MUNICIPAL FUND
We have audited the accompanying statements of net assets, including the
portfolios of investments, of Nuveen Arizona Premium Income Municipal Fund,
Inc., Nuveen Arizona Dividend Advantage Municipal Fund, Nuveen Michigan Quality
Income Municipal Fund, Inc., Nuveen Michigan Premium Income Municipal Fund,
Inc., Nuveen Ohio Quality Income Municipal Fund, Inc., Nuveen Ohio Dividend
Advantage Municipal Fund and Nuveen Texas Quality Income Municipal Fund as of
July 31, 2001, and the related statements of operations, changes in net assets
and the financial highlights for the periods indicated therein. These financial
statements and financial highlights are the responsibility of the Funds'
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of investments
owned as of July 31, 2001, by correspondence with the custodian and brokers or
other alternative procedures where broker confirmations were not available. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Arizona Premium Income Municipal Fund, Inc., Nuveen Arizona Dividend
Advantage Municipal Fund, Nuveen Michigan Quality Income Municipal Fund, Inc.,
Nuveen Michigan Premium Income Municipal Fund, Inc., Nuveen Ohio Quality Income
Municipal Fund, Inc., Nuveen Ohio Dividend Advantage Municipal Fund and Nuveen
Texas Quality Income Municipal Fund at July 31, 2001, and the results of their
operations, changes in their net assets and financial highlights for the periods
indicated therein in conformity with accounting principles generally accepted in
the United States.
/s/ Ernst & Young LLP
Chicago, Illinois
September 18, 2001
Fund
Information
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN, TRANSFER AGENT
AND SHAREHOLDER SERVICES
J.P. Morgan Chase &Co.
4 New York Plaza
New York, NY 10004-2413
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the twelve-month period ended July 31, 2001. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
Serving Investors
for Generations
Photo of: John Nuveen, Sr.
For over a century, generations of Americans have relied on Nuveen Investments
to help them grow and keep the money they've earned. Financial advisors,
investors and their families have associated Nuveen Investments with quality,
expertise and dependability since 1898. That is why financial advisors have
entrusted the assets of more than 1.3 million investors to Nuveen.
With the know-how that comes from a century of experience, Nuveen continues to
build upon its reputation for quality. Now, financial advisors and investors can
count on Nuveen Investments to help them design customized solutions that meet
the far-reaching financial goals unique to family wealth strategies - solutions
that can translate into legacies.
To find out more about how Nuveen Investments' products and services can help
you preserve your financial security, talk with your financial advisor, or call
us at (800) 257-8787 for more information, including a prospectus where
applicable. Please read that information carefully before you invest.
Invest well.
Look ahead.
LEAVE YOUR MARK.(SM)
Logo: NUVEEN Investments
Nuveen Investments o 333 West Wacker Drive
Chicago, IL 60606 o www.nuveen.com
FAN-1-07-01