UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09455
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Nuveen New Jersey Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: June 30
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Date of reporting period: June 30, 2004
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT June 30, 2004
Nuveen Investments
Municipal Closed-End
Exchange-Traded
Funds
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NVY
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU
KEEP.(R)
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
I am very pleased to report that for the period ended June 30, 2004, your Nuveen
Fund continued to provide you with attractive monthly tax-free income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and whether
that possibility should cause them to adjust that portion of their investment
portfolios allocated to tax-free municipal bonds. We believe this is a question
you should consider carefully with the help of a trusted financial advisor. In
many cases, it may be more appropriate to focus on long-term goals and
objectives rather than shorter-term market movements, and this is where a
professional advisor may be able to help keep you focused on the larger
objectives of your investment program.
WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN BE IMPORTANT
BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail and
the Internet. Not only will you be able to receive the information faster, but
this also may help lower your Fund's expenses. Sign up is quick and easy.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 16, 2004
Nuveen New Jersey and Pennsylvania Municipal Closed-End Exchange- Traded Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
PERSPECTIVE
Portfolio manager Paul Brennan reviews the market environment, key investment
strategies and the performance of these eight Nuveen Funds. Paul, who has 13
years of investment experience, has managed these Funds since January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED JUNE 30, 2004?
During this reporting period, the U.S. economy demonstrated growing evidence of
improvement in a number of key areas. Inflation also showed signs of
acceleration, driven largely by higher energy and transportation costs, with the
Consumer Price Index rising at a 4.9% rate (annualized) during the first six
months of 2004, compared with 1.9% for all of 2003. The combination of economic
momentum and inflation concerns served as a catalyst for heightened volatility
across the fixed-income markets. During the final three months of this reporting
period, the bond markets, including the municipal market, were increasingly
driven by expectations that the Federal Reserve would raise interest rates and
by speculation over the timing and extent of those rate hikes. On June 30, 2004,
the Fed increased the fed funds rate by 0.25% to 1.25%, the first increase in
four years, noting that it anticipated taking a "measured" approach to further
tightening to avoid potential derailment of the economic recovery.
Although the market environment was generally favorable for municipal bonds
during much of the 12-month period ended June 30, 2004, the bond market rally of
late 2003-early 2004 was bracketed by periods of sharp price declines. As one
example, the yield on the Bond Buyer 25 Revenue Bond Index (BB25), a widely
followed municipal bond index, rose more than 50 basis points between April 1
and June 10, 2004, before retreating slightly during the final three weeks of
this period. The increase in yield was accompanied by a corresponding drop in
price, and effectively offset much of the yield decline and price gain realized
during the rally of the previous eight months. Overall, the trend during this
12-month period was toward higher yields, with the BB25 Index ending June 2004
almost 40 basis points higher than it was at the beginning of July 2003.
In general, municipal supply nationwide remained relatively strong over the
entire 12-month reporting period, as $372 billion in new bonds came to market,
down 5% from the preceding 12-month period. However, the pace of issuance slowed
in recent months, with $188 billion in new municipal supply during the first
half of 2004, a decrease of almost 9% from January-June 2003's record level of
$206 billion. In contrast to 2003, when
4
many states were issuing bonds to bridge budget gaps and fund operations, an
improving economy and higher tax revenues have lessened the states' need to
borrow. In June 2004 alone, volume decreased 24% from a year ago.
HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
During this 12-month reporting period, New Jersey's economy performed above the
national average, as the state added jobs in construction, retail, education and
healthcare. New Jersey also benefited from an influx of financial services jobs
from New York City as well as growth in the state's sizable pharmaceutical
industry. As of June 2004, unemployment in the state had fallen to 4.7%, below
the national average of 5.6%. New Jersey's diverse economy, highly skilled
workforce, and high wealth levels helped to maintain a solid economic base
during the state's budgetary struggles over the past few years. Since 1996, debt
levels in the state have risen 60%, and New Jersey currently ranks fifth in the
nation in terms of tax-supported debt. In fiscal 2004, which ended June 30, New
Jersey balanced its budget through increased taxes on cigarettes, hotels, and
casinos, reduced property tax rebates, and proceeds from tobacco securitization
bonds. For fiscal 2005, the state's $28 billion budget, which includes a $1
billion increase in Medicaid, calls for higher taxes on individuals earning more
than $500,000 as well as on cigarettes, cell phones, and cosmetic surgery, among
other items. It also relies on $1.9 billion in deficit financing through the
issuance of bonds secured by the newly enacted taxes, a proposal that was
challenged on constitutional grounds in the state courts. (Following the end of
this reporting period, the New Jersey Supreme Court ruled that the fiscal 2005
budget could stand as approved but, in the future, the state should avoid
borrowing to balance the budget.)
During the entire 12-month reporting period ended June 2004, New Jersey issued
$12.8 billion in new municipal bonds, down 11% from the previous 12-month
period. In the first half of 2004, issuance declined more sharply, with $5.5
billion in new bonds, off 43% from the first half of 2003. In March 2004,
Moody's placed New Jersey on its watchlist for a possible downgrade, citing the
state's structurally unbalanced budget for fiscal 2005. As of June 30, 2004,
however, Moody's had maintained the state's credit rating at Aa2 with a negative
outlook, while Standard & Poor's confirmed its rating of AA with a stable
outlook in March 2004. (In late July, after the completion of this reporting
period, Moody's and S&P downgraded New Jersey debt to Aa3 and AA-,
respectively.)
5
Pennsylvania's economy also continued to improve during this period, led by
strength in the services sector and modest expansion in the commonwealth's large
pharmaceutical industry as well as software and tourism. Although Pennsylvania
continued to have substantial exposure to the declining manufacturing sector,
job losses in that area have slowed. Aggressive economic development efforts
undertaken by the commonwealth are expected to spur further growth. As of June
2004, Pennsylvania's unemployment rate stood at 5.6%, on par with the national
average. Over the past few years, conservative financial practices have helped
Pennsylvania weather budget problems, and the commonwealth's debt burden has
remained low. However, an aging infrastructure could place increasing pressure
on future budgets. For fiscal 2005, the commonwealth's $22.8 billion budget
relies on revenue growth generated by an improving economy and an income tax
hike that took effect January 1, 2004. In December 2003, Pennsylvania designated
financially struggling Pittsburgh as a distressed municipality, appointing a
coordinator to develop a recovery plan and prohibiting the city from filing
bankruptcy without the governor's approval. In June 2004, Pittsburgh approved a
five-year plan based on tax hikes and service cuts, including new payroll and
non-resident employee taxes, layoffs and pay cuts for firefighters, and a
two-year salary freeze for other city workers.
Municipal issuance in Pennsylvania during the 12 months ended June 2004 totaled
$13.6 billion, down 5% from the previous 12 months. For the first six months of
2004, supply decreased 23% from January-June 2003, with $6 billion in new bonds.
In May 2004, Moody's confirmed Pennsylvania's credit rating at Aa2 with a stable
outlook, while S&P reaffirmed its AA rating with a stable outlook in June 2004.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING
THE 12 MONTHS ENDED JUNE 30, 2004?
As the market continued to anticipate increased interest rates, our major focus
during this reporting period remained on careful management of the Funds'
durations1 as a way to mitigate some of the interest rate risk inherent in each
Fund's portfolio. Interest rate risk is the risk that the value of a Fund's
portfolio will decline if market interest rates rise (since bond prices move in
the opposite direction of interest rates). The longer the duration of a Fund's
portfolio, the greater the Fund's interest rate risk. Our use of this
1 Duration is a measure of a Fund's net asset value (NAV) volatility in
reaction to interest rate movements. Fund duration, also known as
leverage-adjusted duration, takes into account the leveraging process for a
Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund. References to duration
in this commentary are intended to indicate Fund duration unless otherwise
noted.
6
duration management strategy is designed to position the Funds to potentially
produce more consistent returns over time as interest rates rise and fall.
Ironically, the leverage-adjusted durations of NQJ, NNJ, NUJ, NQP and NPY all
lengthened over the past 12 months, while those of NXJ, NXM and NVY shortened.
In the first set of Funds, the combination of trading activity and the pricing
of more and more bonds to their maturities rather than call dates as interest
rates rose tended to nominally lengthen durations. However, we do not believe
these Funds saw a material increase in their actual interest rate risk relative
to the general market. In the other three Funds, our strategy of selling
securities with longer maturities and deploying the proceeds into shorter bonds
was effective in shortening their durations.
As mentioned earlier, the issuance of new municipal bonds declined in both New
Jersey and Pennsylvania over the past year, especially during the first six
months of 2004. While this meant that it occasionally took longer to implement
some of our strategies, the overall amount of supply remained adequate, and we
continued to find opportunities to add value. In general, our trading activity
in support of duration management accounted for most of the turnover in these
Funds during this period.
In keeping with our duration management strategy and the steepness of the
municipal bond yield curve over this period, the core of our purchase activity
focused on attractive securities with defensive structures in the
long-intermediate part of the yield curve (i.e., bonds that mature in 10 to 20
years). In many cases, bonds in this part of the curve offered yields similar to
those of longer-term bonds with less inherent interest rate risk and greater
total return potential.
In addition to improving the Funds' yield curve positioning, we continued to
work to diversify the Funds by reducing concentrated positions. However, much of
the issuance during this period was high quality or insured, which did not
provide many opportunities to make changes along credit quality lines. From a
sector perspective, the limited tax obligation sector offered value as well as
ample supply, and we substantially increased our allocations to this sector in
all four New Jersey Funds. Bonds issued for higher education also provided some
attractive additions across these eight Funds.
7
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen New Jersey and Pennsylvania Funds, as well as
for relevant benchmarks, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 6/30/04
(Annualized)
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NEW JERSEY FUNDS
--------------------------------------------------------------------------------
NQJ 1.26% 6.14% 6.64%
--------------------------------------------------------------------------------
NNJ 0.85% 6.65% 7.39%
--------------------------------------------------------------------------------
NXJ 1.20% NA NA
--------------------------------------------------------------------------------
NUJ 1.02% NA NA
--------------------------------------------------------------------------------
Lipper New Jersey
Municipal Debt
Funds Average2 0.95% 6.49% 6.92%
--------------------------------------------------------------------------------
PENNSYLVANIA FUNDS
--------------------------------------------------------------------------------
NQP -0.38% 5.95% 6.29%
--------------------------------------------------------------------------------
NPY 0.94% 6.93% 7.76%
--------------------------------------------------------------------------------
NXM 1.30% NA NA
--------------------------------------------------------------------------------
NVY 0.29% NA NA
--------------------------------------------------------------------------------
Lipper Pennsylvania
Municipal Debt
Funds Average2 0.31% 6.71% 7.11%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index3 0.76% 5.87% 6.44%
--------------------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 12 months ended June 30, 2004, the annual total returns on net asset
value (NAV) for all four of the New Jersey Funds as well as for NPY and NXM
outperformed the return on the national Lehman Brothers Municipal Bond Index,
while NQP and NVY lagged this measure. NQJ, NXJ and NUJ also outperformed their
Lipper New Jersey peer group, while NNJ trailed this average by a slight margin.
Among the Pennsylvania Funds, NPY and NXM performed better than the Lipper
Pennsylvania average, while NVY performed in line with this peer group, and NQP
underperformed the Lipper average.
2 The Lipper New Jersey Municipal Debt Funds category average is calculated
using the returns of all closed-end exchange-traded funds in this category
for each period as follows: 1 year, 13 Funds, 5 years, 8 Funds, and 10
years, 6 Funds,. The Lipper Pennsylvania Municipal Debt Funds category
average is calculated using the returns of all closed-end exchange-traded
funds in this category for each period as follows: 1 year, 12 Funds, 5
years, 8 Funds, and 10 years, 7 Funds. Fund and Lipper returns assume
reinvestment of dividends.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman index do not reflect any expenses.
8
Duration, credit quality, and sector allocation were the key factors affecting
the 12-month performance of these eight Funds. As previously mentioned, yields
rose sharply during the second quarter of 2004 and bond prices fell, impacting
the Funds' total returns. In general, the longer a Fund's duration, the more its
value was affected by changes in prevailing interest rates. As of June 30, 2004,
NQP had the longest duration among these eight Funds. As a result, the recent
rise in yields had a greater impact on this Fund's total return. In addition,
NQP had a large exposure to zero coupon bonds, whose prices are extremely
sensitive to changes in interest rates, and to insured bonds, which
underperformed the market as a whole during this period.
On the positive side, the Funds' performances benefited from heavier weightings
in lower-rated bonds, which outperformed other credit quality sectors as the
economy improved, investors' risk tolerance increased, and credit spreads
tightened. As of June 30, 2004, allocations of BBB or lower and non-rated bonds
ranged from 24% in NUJ to 13% in NQJ, NXJ and NXM, 11% in NPY, and 10% in NNJ,
9% in NVY and only 4% in NQP. NUJ's heavy exposure to bonds rated BBB or lower
and non-rated bonds, as well as its large weighting of bonds rated A (13%),
helped this Fund overcome the effect of having a relatively long duration during
this period.
The Funds' allocations to the healthcare sector, especially lower-rated hospital
debt, also made a positive contribution to their total returns, as this sector
performed very well over the past 12 months. For example, during this period,
both NXM and NVY benefited from their holdings of bonds rated B issued for West
Penn Allegheny Health System, which have recovered strongly following our
purchase at very attractive prices. Among the New Jersey Funds, NXJ had the
heaviest weighting of healthcare bonds, as of June 30, 2004, at 18% of its
portfolio, followed by NUJ with 17% and NQJ with 12%, while among the
Pennsylvania Funds, NPY and NXM had healthcare allocations of 13% and 11%,
respectively. In comparison, the healthcare weightings in NVY, NNJ and NQP were
8%, 8%, and 5%, respectively.
Industrial development/pollution control revenue (IDR/PCR) and resource recovery
bonds were also strong performers during this period, and holdings in these
sectors generally added to the Funds' performances. For example, all four New
Jersey Funds held positions
9
in B2 rated bonds issued for a solid waste disposal system by Camden County
Pollution Control Financing Authority, which helped to boost the Funds' total
returns. Among the Pennsylvania Funds, NPY and NXM benefited from their holdings
of non-rated bonds issued by the Pennsylvania Economic Development Financing
Authority for a National Gypsum project, while NVY held $1 million (par value)
in bonds rated BBB+ issued by the Bucks County Industrial Development Authority
for a Marathon Oil (formerly USX Corporation) environmental project, which were
among the best performers in the IDR/PCR sector.
Also making a positive contribution to the total returns of the New Jersey Funds
were tobacco bonds backed by revenues from the 1998 master tobacco settlement
agreement.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these eight Funds continued to
support their dividend-paying capabilities. The extent of this benefit is tied
in part to the short-term rates the Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, the Funds generally pay
relatively lower dividends to their MuniPreferred shareholders, which can leave
more earnings to support common share dividends. During this reporting period,
this strategy enabled us to increase the dividends of NQJ, NXJ, and NXM, while
helping to maintain the dividends of NNJ, NUJ, NQP, NPY, and NVY throughout the
period. In addition, due to the capital gains generated by trading activity as
part of our duration management efforts, common shareholders of NQJ, NNJ, NXM,
NVY and NPY received substantial capital gains and net ordinary income
distributions at the end of December 2003.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of
its earnings, the excess constitutes negative UNII that is likewise
10
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of June 30, 2004, all of the
Funds in this report except NVY had positive UNII balances.
As of June 30, 2004, all eight of these Funds were trading at discounts to their
net asset values. In each case, these discounts were greater than the average
discount exhibited by the Fund over the course of the entire 12-month reporting
period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong credit quality was an important requirement. As of the
end of June 2004, these eight Funds continued to offer excellent credit quality,
with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from 63% in
NUJ to 69% in NXJ and 73% in NXM to 80% in NQJ, 83% in NPY, 85% in NNJ, 88% in
NQP and NVY.
As of June 30, 2004, potential call exposure for these Funds during 2004-2005
ranged from 0% in NXM, to 2% in NVY, 3% in NXJ and NUJ, 4% in NPY, 5% in NQJ, 7%
in NQP and 8% in NNJ. The number of actual bond calls in all of the Funds will
depend largely on market interest rates.
11
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.19
------------------------------------
Common Share
Net Asset Value $14.69
------------------------------------
Premium/(Discount) to NAV -3.40%
------------------------------------
Market Yield 6.77%
------------------------------------
Taxable-Equivalent Yield1 10.03%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $299,671
------------------------------------
Average Effective
Maturity (Years) 19.43
------------------------------------
Leverage-Adjusted Duration 10.14
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -4.09% 1.26%
------------------------------------
5-Year 4.44% 6.14%
------------------------------------
10-Year 5.77% 6.64%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Transportation 21%
------------------------------------
Tax Obligation/Limited 21%
------------------------------------
Education and
Civic Organizations 12%
------------------------------------
Healthcare 12%
------------------------------------
Tax Obligation/General 7%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 6%
A 7%
BBB 10%
NR 1%
BB or Lower 2%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.079
Aug 0.079
Sep 0.08
Oct 0.08
Nov 0.08
Dec 0.08
Jan 0.08
Feb 0.08
Mar 0.08
Apr 0.08
May 0.08
Jun 0.08
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.94
16
16.15
15.4
15.05
15.1
14.94
14.9
14.87
14.94
15.04
15.08
15.22
15.65
15.47
15.42
15.54
15.78
15.53
15.56
15.55
15.6
15.62
15.95
16.08
16.24
16.27
16.34
16.43
16.27
16.27
16.35
16.41
16.57
16.53
16.52
16.6
16.2
15.09
14.79
14.73
14.16
13.66
13.71
14.1
14.2
14.22
13.99
14.04
6/30/04 14.45
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1999 per share.
12
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.19
------------------------------------
Common Share
Net Asset Value $15.35
------------------------------------
Premium/(Discount) to NAV -7.56%
------------------------------------
Market Yield 6.60%
------------------------------------
Taxable-Equivalent Yield1 9.78%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $184,753
------------------------------------
Average Effective
Maturity (Years) 15.59
------------------------------------
Leverage-Adjusted Duration 9.38
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -5.65% 0.85%
------------------------------------
5-Year 3.94% 6.65%
------------------------------------
10-Year 7.61% 7.39%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 23%
------------------------------------
Transportation 18%
------------------------------------
U.S. Guaranteed 10%
------------------------------------
Education and
Civic Organizations 10%
------------------------------------
Water and Sewer 10%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 80%
AA 5%
A 5%
BBB 7%
NR 2%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.078
Aug 0.078
Sep 0.078
Oct 0.078
Nov 0.078
Dec 0.078
Jan 0.078
Feb 0.078
Mar 0.078
Apr 0.078
May 0.078
Jun 0.078
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 16.14
16.2
16.22
15.95
15.36
15.22
15.12
15.15
15.25
15.22
15.4
15.47
15.64
15.97
15.75
15.8
15.95
16.08
16
15.77
15.68
15.65
15.54
16.22
16.2
16.46
16.54
16.5
16.7
16.51
16.58
16.61
16.61
16.72
17.03
16.77
16.5
15.8
15.1
15.02
14.8
14.14
14.25
14.07
14.35
14.22
14.2
14.13
14.06
6/30/04 14.43
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1349 per share.
13
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $13.63
------------------------------------
Common Share
Net Asset Value $14.59
------------------------------------
Premium/(Discount) to NAV -6.58%
------------------------------------
Market Yield 6.91%
------------------------------------
Taxable-Equivalent Yield1 10.24%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $95,651
------------------------------------
Average Effective
Maturity (Years) 20.45
------------------------------------
Leverage-Adjusted Duration 9.61
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -5.13% 1.20%
------------------------------------
Since Inception 2.95% 6.60%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Healthcare 18%
------------------------------------
Water and Sewer 16%
------------------------------------
Transportation 15%
------------------------------------
Tax Obligation/Limited 14%
------------------------------------
Education and
Civic Organizations 12%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 69%
AA 1%
A 18%
BBB 9%
BB or Lower 3%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.0785
Oct 0.0785
Nov 0.0785
Dec 0.0785
Jan 0.0785
Feb 0.0785
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0785
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.12
15.5
15.3
15.03
14.86
14.44
14.3
14.6
14.05
14.04
14.33
14.6
14.78
14.95
14.78
14.88
15.03
15.06
15.11
14.87
14.78
14.69
14.75
15.17
15.66
15.95
15.92
15.61
15.45
15.67
15.9
16.04
15.86
15.95
15.98
16.08
15.77
14.8
14.17
14.06
14.36
13.8
13.35
13.83
14
13.94
13.8
13.76
13.53
6/30/04 14.2
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
14
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $13.74
------------------------------------
Common Share
Net Asset Value $14.62
------------------------------------
Premium/(Discount) to NAV -6.02%
------------------------------------
Market Yield 6.68%
------------------------------------
Taxable-Equivalent Yield1 9.90%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $65,919
------------------------------------
Average Effective
Maturity (Years) 19.63
------------------------------------
Leverage-Adjusted Duration 11.41
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -4.81% 1.02%
------------------------------------
Since Inception 2.27% 7.24%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17%
------------------------------------
Healthcare 17%
------------------------------------
Transportation 16%
------------------------------------
Education and
Civic Organizations 10%
------------------------------------
U.S. Guaranteed 10%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 61%
AA 2%
A 13%
BBB 20%
NR 1%
BB or Lower 3%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.39
15.75
15.67
15
15.01
15.04
15
14.4
14.69
14.8
14.8
14.57
14.77
15.1
14.97
14.95
15.07
15.3
15.19
15
14.83
14.85
14.89
15.25
15.42
15.57
15.62
15.6
15.45
15.31
15.85
15.8
16.15
15.96
16.11
16
16.03
15.48
14.33
13.93
14.08
13.55
13.5
13.19
13.9
14.05
14.05
13.65
13.91
6/30/04 13.96
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0541 per share.
15
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $13.58
------------------------------------
Common Share
Net Asset Value $14.92
------------------------------------
Premium/(Discount) to NAV -8.98%
------------------------------------
Market Yield 6.72%
------------------------------------
Taxable-Equivalent Yield1 9.60%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $243,287
------------------------------------
Average Effective
Maturity (Years) 19.33
------------------------------------
Leverage-Adjusted Duration 11.88
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -9.73% -0.38%
------------------------------------
5-Year 2.24% 5.95%
------------------------------------
10-Year 4.66% 6.29%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 22%
------------------------------------
Tax Obligation/Limited 17%
------------------------------------
Education and
Civic Organizations 15%
------------------------------------
Water and Sewer 12%
------------------------------------
U.S. Guaranteed 8%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 74%
AA 15%
A 7%
BBB 4%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.076
Aug 0.076
Sep 0.076
Oct 0.076
Nov 0.076
Dec 0.076
Jan 0.076
Feb 0.076
Mar 0.076
Apr 0.076
May 0.076
Jun 0.076
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.95
16.07
15.87
15.44
14.65
14.55
14.49
14.34
14.2
14.22
14.35
14.55
14.65
15.07
15.06
14.97
15.1
15.35
15.29
15.24
15.37
15.42
15.36
15.47
15.89
15.87
15.79
15.54
15.61
15.68
15.57
15.58
16.03
15.98
15.93
15.99
15.77
15.08
14.46
14.26
13.92
13.47
13.1
13.54
13.81
13.65
13.66
13.55
13.63
6/30/04 13.7
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0164 per share.
16
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $13.84
------------------------------------
Common Share
Net Asset Value $14.74
------------------------------------
Premium/(Discount) to NAV -6.11%
------------------------------------
Market Yield 6.85%
------------------------------------
Taxable-Equivalent Yield1 9.79%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $232,455
------------------------------------
Average Effective
Maturity (Years) 17.44
------------------------------------
Leverage-Adjusted Duration 10.13
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -7.22% 0.94%
------------------------------------
5-Year 6.71% 6.93%
------------------------------------
10-Year 7.56% 7.76%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 17%
------------------------------------
U.S. Guaranteed 13%
------------------------------------
Healthcare 13%
------------------------------------
Transportation 11%
------------------------------------
Utilities 10%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 77%
AA 6%
A 6%
BBB 8%
NR 2%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.079
Aug 0.079
Sep 0.079
Oct 0.079
Nov 0.079
Dec 0.079
Jan 0.079
Feb 0.079
Mar 0.079
Apr 0.079
May 0.079
Jun 0.079
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 16
16.16
15.91
15.5
14.96
14.97
14.77
14.52
14.41
14.65
14.67
14.81
14.99
15.22
15.17
14.95
15.06
15.2
15.3
15.34
15.38
15.32
15.29
15.8
16.09
16.08
16.1
15.99
16.1
15.94
15.89
15.9
16.02
15.94
15.96
15.91
15.55
15.1
14.65
14.46
13.73
13.45
13.18
13.63
13.92
14.01
13.95
13.8
13.74
6/30/04 13.9
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1119 per share.
17
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $14.39
------------------------------------
Common Share
Net Asset Value $15.32
------------------------------------
Premium/(Discount) to NAV -6.07%
------------------------------------
Market Yield 6.71%
------------------------------------
Taxable-Equivalent Yield1 9.59%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $50,549
------------------------------------
Average Effective
Maturity (Years) 18.51
------------------------------------
Leverage-Adjusted Duration 10.18
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -5.95% 1.30%
------------------------------------
Since Inception 5.27% 8.73%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 25%
------------------------------------
Education and
Civic Organizations 21%
------------------------------------
Healthcare 11%
------------------------------------
Long Term Care 8%
------------------------------------
Utilities 8%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 62%
AA 11%
A 14%
BBB 7%
NR 5%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0795
Aug 0.0795
Sep 0.0805
Oct 0.0805
Nov 0.0805
Dec 0.0805
Jan 0.0805
Feb 0.0805
Mar 0.0805
Apr 0.0805
May 0.0805
Jun 0.0805
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 16.4
16.49
16.4
15.85
14.44
14.62
14.77
14.59
14.52
14.6
14.8
14.88
15.18
15.31
15.5
15.63
15.4
15.9
16
15.91
15.73
15.71
15.7
16.27
16.49
16.4
16.49
16.18
16.4
16.35
16.25
16.22
16.28
16.7
16.43
16.59
16.55
15.75
15.48
15.15
14.55
14.38
13.76
13.95
14.6
14.51
14.47
14.28
14.26
6/30/04 15
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1732 per share.
18
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of June 30, 2004
FUND SNAPSHOT
------------------------------------
Share Price $13.48
------------------------------------
Common Share
Net Asset Value $14.87
------------------------------------
Premium/(Discount) to NAV -9.35%
------------------------------------
Market Yield 6.81%
------------------------------------
Taxable-Equivalent Yield1 9.73%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $55,370
------------------------------------
Average Effective
Maturity (Years) 17.35
------------------------------------
Leverage-Adjusted Duration 10.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -8.58% 0.29%
------------------------------------
Since Inception 1.66% 8.20%
------------------------------------
TOP FIVE SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 25%
------------------------------------
Tax Obligation/General 22%
------------------------------------
Education and Civic Organizations15%
------------------------------------
Healthcare 8%
------------------------------------
Utilities 7%
------------------------------------
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 25%
A 3%
BBB 7%
NR 1%
BB or Lower 1%
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.0765
Oct 0.0765
Nov 0.0765
Dec 0.0765
Jan 0.0765
Feb 0.0765
Mar 0.0765
Apr 0.0765
May 0.0765
Jun 0.0765
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/1/03 15.82
15.79
15.79
15.41
14.33
14.27
14.13
14.21
14.52
14.95
14.55
14.53
14.7
14.76
14.74
14.82
14.88
15.23
15.26
14.9
15.16
15.25
15.28
15.74
16
15.92
16.03
15.98
16.14
16.14
16.14
16.09
16.25
16.11
16.02
16.16
15.78
15.15
14.4
14.05
13.81
13.23
13.1
13.14
13.35
13.47
13.44
13.65
13.52
6/30/04 13.68
1 Taxable-equivalent yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. For investments that generate qualified dividend income, the
taxable-equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.1557 per share.
19
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New
Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage
Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend
Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal
Fund 2, as of June 30, 2004, 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 the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned as of June 30, 2004, by correspondence
with the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen
Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium
Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund
and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 at June 30, 2004,
and the results of their operations, changes in their net assets and their
financial highlights for the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
August 13, 2004
20
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.1%
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
$ 8,855 5.750%, 6/01/32 6/12 at 100.00 BBB $ 7,615,211
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 2,426,940
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 6/13 at 100.00 BBB 2,890,272
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,384,681
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.2%
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,528,775
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,455 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 3,570,466
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17
(Alternative Minimum Tax) - MBIA Insured
1,000 Middlesex County Improvement Authority, New Jersey, George 8/14 at 100.00 Baa1 959,000
Street Student Housing Revenue Bonds, Series 2004A,
5.000%, 8/15/35
New Jersey Educational Facilities Authority, Revenue Bonds,
St. Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 923,960
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,562,645
1,250 New Jersey Educational Facilities Authority, Revenue Refunding 7/08 at 101.00 AAA 1,267,375
Bonds, Seton Hall University, Series 1998F, 5.000%, 7/01/21 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 999,260
Ramapo College, Series 2001D, 5.000%, 7/01/31 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,047,680
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,029,899
1,050 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA 1,078,917
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 1,997,000
New Jersey City University, Series 2002A, 5.000%, 7/01/32 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 1,859,800
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,581,960
Kean University, Series 2003D, 5.250%, 7/01/20 -
FGIC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,344,512
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2004L:
1,500 5.125%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,547,385
1,000 5.000%, 7/01/34 - MBIA Insured 7/14 at 100.00 AAA 997,220
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,584,969
Ramapo College, Series 2004H, 5.000%, 7/01/16 -
FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
2,285 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 2,387,825
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,308,775
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,528,147
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,836,820
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 610 New Jersey Educational Facilities, Revenue Bonds, Rider 7/14 at 100.00 AA $ 631,350
University, Series 2004A, 5.500%, 7/01/23
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 489,615
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
(WI, settling 7/14/04)
4,325 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 4,415,479
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 (Alternative Minimum Tax) -
MBIA Insured
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,282,559
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry, New Jersey, Certificates
of Participation, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,004,147
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,395,770
University of Medicine and Dentistry, New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,119,320
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,210,840
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 17.5%
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,429,125
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
2,535 New Jersey Health Care Facilities Financing Authority, Revenue 7/04 at 101.00 Baa2 2,562,175
Bonds, Deborah Heart and Lung Center, Series 1993,
6.200%, 7/01/13
6,150 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 6,050,801
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 5.000%, 8/01/41 - AMBAC Insured
3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,065,490
Revenue Bonds, Kennedy Health System, Series 2001,
5.500%, 7/01/21
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,100,515
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 8,151,685
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa2 2,836,260
Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A+ 4,021,479
2,000 5.750%, 7/01/31 7/10 at 100.00 A+ 2,080,640
4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,349,419
Revenue Refunding Bonds, St. Barnabas Healthcare System,
West Hudson Hospital Obligated Group, Series 1998A,
5.000%, 7/01/23 - MBIA Insured
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,154,005
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 BBB+ 2,214,220
Revenue Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 3,543,995
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
3,905 Newark, New Jersey, GNMA Collateralized Health Care 6/12 at 102.00 Aaa 3,954,047
Facility Revenue Bonds, New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.4%
1,090 Long Branch Housing Finance Corporation, New Jersey, 10/04 at 100.00 N/R 1,096,213
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
4,500 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 4,640,400
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
4,500 New Jersey Housing and Mortgage Finance Agency, 5/06 at 102.00 AAA 4,659,660
Multifamily Housing Revenue Bonds, Series 1996A,
6.250%, 5/01/28 (Alternative Minimum Tax) - AMBAC Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa $ 2,882,966
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4%
300 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 308,016
Home Buyer Program Revenue Bonds, Series 1995O,
6.350%, 10/01/27 (Alternative Minimum Tax) - MBIA Insured
8,820 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 9,070,400
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
6,725 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 6,881,962
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 (Alternative Minimum Tax) - MBIA Insured
2,855 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,898,596
Securities, Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,855 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,887,661
Securities, Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 1.7%
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 4,980,550
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.2%
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,011,320
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,504,620
2,940 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 2,967,136
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation, Series 2001A, 5.200%, 12/20/36
1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 1,096,616
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.750%, 11/01/24
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.1%
6,250 Salem County Pollution Control Financing Authority, 11/04 at 100.00 AA- 6,309,688
New Jersey, Waste Disposal Revenue Bonds, E.I. DuPont
de Nemours and Company - Chambers Works Project,
Series 1991A, 6.500%, 11/15/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.6%
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,739,457
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,651,683
1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,066,360
Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
1,735 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,786,981
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
3,000 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 3,298,110
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
Middleton Township Board of Education, Monmouth County,
New Jersey, Refunding School Bonds:
4,725 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 4,810,334
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,509,000
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,699,250
6.000%, 2/15/11
2,000 Puerto Rico, Public Improvement General Obligation Refunding 7/11 at 100.00 AAA 2,121,200
Bonds, Series 2001, 5.125%, 7/01/30 - FSA Insured
Sayreville School District, Middlesex County, New Jersey,
General Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,491,874
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,560,079
1,285 Tinton Falls Board of Education, Monmouth County, 10/14 at 100.00 Aaa 1,346,693
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 10/15/15 (WI, settling 7/22/04) - FSA Insured
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
West Deptford Township, New Jersey, General Obligation
Bonds, Series 2004:
$ 1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa $ 1,800,154
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,912,558
-------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 31.1%
3,320 Atlantic County, New Jersey, Improvement Authority, 11/10 at 100.00 Aaa 3,428,763
Egg Harbor Township Guaranteed Revenue Bonds, The
Egg Harbor Township Golf Corporation Project, Series 2000,
5.400%, 11/01/30 - AMBAC Insured
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,510 4.500%, 11/15/12 No Opt. Call Aaa 1,599,377
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,909,234
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,113,520
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,224,510
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 10,991,600
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25 -
FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 10,852,700
Revenue Bonds, Series 2003, 5.000%, 12/15/12 -
FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
2,000 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 2,124,960
3,000 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 3,095,820
3,365 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 3,449,327
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,836,398
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,914,052
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,036,840
1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,527,784
County, New Jersey, Revenue Bonds, Series 2003D,
5.000%, 12/01/16 - FGIC Insured
1,000 Mansfield Township Board of Education, Warren County, 3/06 at 102.00 AAA 1,074,040
New Jersey, Certificates of Participation, 5.900%, 3/01/15 -
MBIA Insured
1,500 Middlesex County, New Jersey, Certificates of Participation, 8/11 at 100.00 AAA 1,503,930
Series 2001, 5.000%, 8/01/31 - MBIA Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,079,040
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,136,020
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,049,420
2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,466,050
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
1,000 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 1,054,310
Facilities Construction Bonds, Series 2001A,
5.250%, 6/15/19 - AMBAC Insured
New Jersey Economic Development Authority, School Facilities
Construction Financing Act Bonds, Series 2002C:
4,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 4,229,760
5,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 5,140,300
3,000 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,145,140
Facilities Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
4,000 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 4,125,920
Construction Bonds, Series 2004G, 5.000%, 9/01/20 -
AMBAC Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
3,000 5.500%, 6/15/17 6/13 at 100.00 AA- 3,252,480
3,000 5.500%, 6/15/18 6/13 at 100.00 AA- 3,245,550
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,770,472
System Bonds, Series 2001B, 5.000%, 12/15/21 -
MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,895 North Bergen Township Municipal Utilities Authority, Hudson No Opt. Call AAA $ 2,316,827
County, New Jersey, Sewer Revenue Refunding Bonds,
Series 1993, 7.875%, 12/15/09 - FGIC Insured
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,294,662
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
2,000 West Orange Board of Education, Essex County, New Jersey, 10/09 at 101.00 Aaa 2,203,320
Certificates of Participation, Series 1999, 6.000%, 10/01/24 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 32.4%
3,275 Delaware River and Bay Authority, Delaware and New Jersey, 1/10 at 101.00 AAA 3,474,546
Revenue Bonds, Series 2000A, 5.750%, 1/01/29 -
AMBAC Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,008,307
Port District Project Revenue Refunding Bonds, Series 2001A,
5.200%, 1/01/27 - FSA Insured
7,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102.00 AAA 7,244,300
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,781,925
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 11/04 at 100.00 CCC 1,955,220
American Airlines, Inc., Series 1991, 7.100%, 11/01/31
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 2000A:
9,275 5.500%, 1/01/25 - MBIA Insured 1/10 at 100.00 AAA 9,642,476
10,000 5.500%, 1/01/27 1/10 at 100.00 A 10,337,400
2,000 5.500%, 1/01/30 - MBIA Insured 1/10 at 100.00 AAA 2,072,380
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 9,851,975
5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
665 6.500%, 1/01/16 No Opt. Call A 780,597
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 190,059
1,250 Newark Housing Authority, New Jersey, Marine Terminal 1/14 at 100.00 AAA 1,308,550
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
3,930 The Port Authority of New York and New Jersey, Consolidated 7/08 at 101.00 AA- 3,822,122
Revenue Bonds, One Hundred Twenty-Second Series 2001,
5.125%, 1/15/36 (Alternative Minimum Tax)
The Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,278,313
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 4,956,600
6,850 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 6,972,752
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.375%, 10/15/35 - MBIA Insured
The Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,102,875
6,605 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 7,021,115
12,130 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 12,658,625
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 1,962,280
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 5.6%
4,655 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,008,501
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
2,505 6.500%, 1/01/16 No Opt. Call A*** 2,957,954
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 897,423
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 7,862,250
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.9%
$ 2,655 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 $ 2,602,962
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
3,500 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 3,421,635
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid 12/13 at 100.00 AAA 2,201,254
Waste Revenue Bonds, Regional Sludge Project, Series 2003,
5.000%, 12/15/14 - FGIC Insured
400 New Jersey Economic Development Authority, Pollution 7/04 at 101.50 Baa3 417,520
Control Revenue Bonds, Jersey Power and Light Company,
Series 1985, 7.100%, 7/01/15
5,950 Puerto Rico Electric Power Authority, Power Revenue 7/09 at 101.50 AAA 6,489,070
Refunding Bonds, Series 1999FF, 5.250%, 7/01/13 -
MBIA Insured
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,519,225
New Jersey, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31
(Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 2,969,130
Facility Senior Lien Revenue Bonds, Ogden Martin Systems
of Union, Inc., Series 1998A, 5.000%, 6/01/23 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.8%
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,031,650
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 (Alternative Minimum Tax) - FGIC Insured
7,500 New Jersey Economic Development Authority, Water Facilities 5/06 at 102.00 Aaa 7,869,073
Revenue Bonds, American Water Company, Series 1996,
6.000%, 5/01/36 (Alternative Minimum Tax) - FGIC Insured
North Hudson Sewer Authority, New Jersey, Sewer Revenue
Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa 3,212,910
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,183,330
------------------------------------------------------------------------------------------------------------------------------------
$ 440,683 Total Long-Term Investments (cost $445,772,044) - 151.0% 452,570,397
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.7%
800 New Jersey Economic Development Authority, Dock Facility VMIG-1 800,000
Revenue Refunding Bonds, Bayonne/IMTT Project, Variable
Rate Demand Bonds, Series 1993B, 1.070%, 12/01/27+
500 New Jersey Economic Development Authority, Water Facilities A-1+ 500,000
Revenue Refunding Bonds, United Water Company of
New Jersey, Inc., Variable Rate Demand Obligations,
Series 1996A, 1.080%, 11/01/26 - AMBAC Insured+
700 Puerto Rico Government Development Bank, Adjustable A-1 700,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.000%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 2,000 Total Short-Term Investments (cost $2,000,000) 2,000,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $447,772,044) - 151.7% 454,570,397
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 7,101,002
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 299,671,399
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
26
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.4%
$ 3,395 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB $ 2,919,666
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 6/13 at 100.00 BBB 3,179,299
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,044,013
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0%
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
2,510 5.700%, 6/01/08 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 2,616,299
1,670 6.000%, 6/01/15 (Alternative Minimum Tax) - MBIA Insured 6/10 at 101.00 AAA 1,749,692
750 Middlesex County Improvement Authority, New Jersey, George 8/14 at 100.00 Baa1 719,250
Street Student Housing Revenue Bonds, Series 2004A,
5.000%, 8/15/35
3,075 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R 3,235,546
Yeshiva Ktana of Passaic Project, Series 1993,
8.000%, 9/15/18
420 New Jersey Educational Facilities Authority, Revenue Bonds, 7/04 at 100.00 A- 421,701
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 464,950
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,034,240
Rowan University, Series 2003I, 5.125%, 7/01/21 -
FGIC Insured
1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,308,657
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Ramapo College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 1,716,900
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,057,607
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 1,436,875
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 753,065
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,541,062
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,003,118
300 New Jersey Educational Facilities, Revenue Bonds, Rider 7/14 at 100.00 AA 310,500
University, Series 2004A, 5.500%, 7/01/23
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 293,769
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
(WI, settling 7/14/04)
330 New Jersey Higher Education Assistance Authority, Student 7/04 at 100.00 A+ 330,495
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
2,840 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 2,950,022
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18
(Alternative Minimum Tax) - MBIA Insured
2,025 University of Medicine and Dentistry, New Jersey, Certificates 4/13 at 100.00 AAA 2,073,337
of Participation, Series 2003, 5.000%, 4/15/21 -
AMBAC Insured
2,750 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 2,747,855
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.9%
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A3 3,560,690
Revenue Bonds, Kennedy Health System, Series 2001,
5.625%, 7/01/31
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,711,590
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
27
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A $ 1,166,160
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 3,111,330
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 1,772,663
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 548,915
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A2 2,988,740
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,186,820
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
1,800 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,973,034
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
2,900 Puerto Rico Industrial, Medical, Educational and Environmental 12/04 at 102.50 Baa1 2,936,134
Pollution Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products
Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 6.0%
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 333,652
Enhanced Multifamily Revenue Bonds, Mount Carmel
Towers, Series 2002, 4.750%, 11/01/22 (Alternative
Minimum Tax)
655 Long Branch Housing Finance Corporation New Jersey, 10/04 at 100.00 N/R 658,733
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,875 New Jersey Housing and Mortgage Finance Agency, 5/05 at 102.00 AAA 2,964,700
Multifamily Housing Revenue Bonds, Series 1995A,
6.000%, 11/01/14 - AMBAC Insured
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,084,700
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.2%
1,000 New Jersey Housing and Mortgage Finance Agency, 10/05 at 101.50 AAA 1,027,890
Home Buyer Program Revenue Bonds, Series 1995O,
6.300%, 10/01/23 (Alternative Minimum Tax) - MBIA Insured
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 2,052,757
1,325 5.850%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 10/07 at 101.50 AAA 1,362,617
1,000 New Jersey Housing and Mortgage Finance Agency, 10/08 at 101.50 AAA 1,009,060
Home Buyer Program Revenue Bonds, Series 1998X,
5.350%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 512,865
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.5%
1,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 996,110
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 0.4%
750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 722,010
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 13.6%
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,625,484
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
1,500 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,544,940
Improvement Bonds, Series 2003B, 5.000%, 9/01/20 -
FSA Insured
1,170 Jersey City, New Jersey, General Obligation Improvement No Opt. Call AAA 1,286,263
Bonds, Series 2002A, 5.250%, 3/01/13 - AMBAC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA $ 2,012,220
New Jersey, General Obligation Bonds, Series 2003,
5.000%, 10/01/27 - MBIA Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,940,813
1,560 6.000%, 2/15/13 No Opt. Call AA 1,796,059
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,397,920
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
Stafford Township Board of Education, Ocean County, New Jersey,
General Obligation Bonds, Series 2003:
1,350 5.250%, 1/15/18 - FSA Insured 1/12 at 100.00 Aaa 1,427,828
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,157,629
2,085 Washington Township Board of Education, Gloucester County, 2/13 at 100.00 Aaa 2,220,358
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 2/01/15 - MBIA Insured
1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aaa 1,837,174
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, 7/09 at 102.00 Aaa 1,887,102
Sewer Utility Bonds, Series 1999, 5.300%, 7/01/20 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.6%
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,000 4.500%, 11/15/12 No Opt. Call Aaa 1,059,190
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,276,368
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,209,990
1,155 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 1,228,008
Authority, Revenue Bonds, Series 2002, 5.250%, 12/01/18 -
FGIC Insured
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,224,510
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
5,515 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,771,558
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
1,200 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 1,274,976
1,750 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 1,805,895
1,965 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 2,014,243
1,000 Hudson County Improvement Authority, New Jersey, 1/08 at 101.50 AAA 1,027,540
Utility System Revenue Bonds, Harrison Franchise Acquisition
Project, Series 1997, 5.350%, 1/01/27 - FSA Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,079,040
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,831,682
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,049,420
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,683,062
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
500 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 527,155
Facilities Construction Bonds, Series 2001A, 5.250%, 6/15/19 -
AMBAC Insured
New Jersey Economic Development Authority, School
Facilities Construction Financing Act Bonds, Series 2002C:
3,000 5.000%, 6/15/15 - MBIA Insured 6/12 at 100.00 AAA 3,172,320
2,000 5.000%, 6/15/20 - MBIA Insured 6/12 at 100.00 AAA 2,056,120
3,425 New Jersey Economic Development Authority, School 6/13 at 100.00 AAA 3,590,701
Facilities Construction Bonds, Series 2003F,
5.250%, 6/15/21 - FGIC Insured
2,500 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 2,578,700
Facilities Construction Bonds, Series 2004G,
5.000%, 9/01/20 - AMBAC Insured
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA $ 1,640,010
Center Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 -
MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,055,980
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,325,620
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
5,000 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA 5,200,100
System Bonds, Series 1995A, 5.000%, 6/15/15 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 2,163,700
System Bonds, Series 2003C, 5.500%, 6/15/18
7,500 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 8,213,325
5.500%, 8/01/17 - FSA Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,118,140
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,200 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 1,209,192
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
2,445 Union County, New Jersey, Improvement Authority General 6/13 at 100.00 Aa1 2,477,543
Obligation Lease Revenue Bonds, Series 2003,
5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.9%
5,000 Delaware River Port Authority, New Jersey and Pennsylvania, 1/08 at 101.00 AAA 5,129,750
Port District Project Bonds, Series 1998B, 5.000%, 1/01/19 -
MBIA Insured
2,495 New Jersey Turnpike Authority, Revenue Bonds, Series 2000A, 1/10 at 100.00 AAA 2,593,852
5.500%, 1/01/25 - MBIA Insured
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,963,038
5.000%, 1/01/19 - FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,830 6.500%, 1/01/16 No Opt. Call A 2,148,109
465 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 549,081
760 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 902,781
750 Newark Housing Authority, New Jersey, Marine Terminal 1/14 at 100.00 AAA 785,130
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
1,500 The Port Authority of New York and New Jersey, Consolidated 7/06 at 101.00 AA- 1,605,060
Revenue Bonds, One Hundred Sixth Series 1996,
6.000%, 7/01/16 (Alternative Minimum Tax)
2,500 The Port Authority of New York and New Jersey, Consolidated 6/05 at 101.00 AAA 2,597,000
Revenue Bonds, One Hundredth Series 1995,
5.750%, 12/15/20 - FGIC Insured
2,000 The Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 1,982,640
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
The Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
10,000 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 10,630,000
11,000 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured 12/07 at 100.00 AAA 11,479,380
1,435 South Jersey Transportation Authority, New Jersey, 11/09 at 101.00 AAA 1,470,143
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.2%
4,655 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,008,501
Asset-Backed Bonds, Series 2000, 5.750%, 7/01/20
(Pre-refunded to 7/01/10)
2,250 New Jersey Building Authority, State Building Revenue Bonds, 6/10 at 100.00 AA-*** 2,458,463
Series 2000A, 5.125%, 6/15/20 (Pre-refunded to 6/15/10)
2,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 2,785,050
Princeton University, Series 2000E, 5.500%, 7/01/17
(Pre-refunded to 7/01/10)
2,000 New Jersey Transit Corporation, Certificates of Participation, 9/09 at 100.00 AAA 2,264,540
Federal Transit Administration Grants, Series 2000A,
6.125%, 9/15/15 (Pre-refunded to 9/15/09) - AMBAC Insured
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,339,948
System Bonds, Series 2001B, 6.000%, 12/15/19
(Pre-refunded to 12/15/11) - MBIA Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (continued)
$ 115 New Jersey Transportation Trust Fund Authority, Transportation 6/05 at 102.00 AAA $ 121,516
System Bonds, Series 1995A, 5.500%, 6/15/12 (Pre-refunded
to 6/15/05) - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
6,590 6.500%, 1/01/16 No Opt. Call A*** 7,781,604
1,760 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 2,078,243
2,745 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 3,241,351
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.3%
2,095 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 2,014,678
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
2,000 Puerto Rico Electric Power Authority, Power Revenue Refunding 7/09 at 101.50 AAA 2,181,200
Bonds, Series 1999FF, 5.250%, 7/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.4%
Bayonne Municipal Utilities Authority, New Jersey, Water
System Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa 1,496,052
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,258,275
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,169,950
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water Facilities 9/04 at 102.00 AAA 3,162,279
Revenue Refunding Bonds, Hackensack Water Company,
Series 1994B, 5.900%, 3/01/24 (Alternative Minimum Tax) -
MBIA Insured
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,024,296
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
7,000 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/06 at 101.00 AAA 7,102,620
Bonds, Series 1996, 5.125%, 8/01/22 - FGIC Insured
3,500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 3,694,355
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,698,311
New Jersey, Sewer Revenue Refunding Bonds, Series 1993B,
5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 260,045 Total Long-Term Investments (cost $263,466,248) - 147.4% 272,304,162
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 4,048,772
------------------------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (91,600,000)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 184,752,934
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
31
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3%
$ 250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 253,028
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel Project, Series 1996, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.1%
970 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 834,190
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
2,240 6.125%, 6/01/24 6/13 at 100.00 BBB 2,023,190
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,022,006
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.5%
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,498,890
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 213,626
Bonds, Seton Hall University Project, Series 2001A,
5.250%, 7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Refunding
Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 3,851,553
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,604,208
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,060,390
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 308,262
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 777,937
Montclair State University, Series 2004L, 5.125%, 7/01/21 -
MBIA Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 662,212
William Paterson University, Series 2004A, 5.125%, 7/01/19
(DD, settling 7/01/04) - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 1,025,480
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 (DD, settling 7/01/04) - AMBAC Insured
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 244,808
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
(WI, settling 7/14/04)
Puerto Rico Industrial, Tourist, Educational, Medical, and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series 2001:
2,000 5.250%, 9/01/21 9/11 at 100.00 BBB 2,022,460
2,000 5.250%, 9/01/31 9/11 at 100.00 BBB 1,962,940
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB 489,240
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez
University System, Series 2002, 5.500%, 12/01/31
1,905 University of Puerto Rico, University System Revenue Bonds, 6/05 at 101.50 AAA 1,929,308
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1%
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB- 1,060,230
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 27.0%
$ 3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A3 $ 3,560,690
Bonds, Kennedy Health System, Series 2001, 5.625%, 7/01/31
1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 1,400,099
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa2 945,420
Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
1,100 New Jersey Health Care Facilities Financing Authority, No Opt. Call AAA 1,175,537
Revenue Bonds, Kennedy Health System Obligated Group,
Series 1998B, 5.750%, 7/01/06 - MBIA Insured
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 548,915
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,000 5.750%, 7/01/25 7/10 at 100.00 A+ 3,133,620
12,000 5.750%, 7/01/31 7/10 at 100.00 A+ 12,483,840
2,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 A2 2,510,750
Revenue Refunding Bonds, Burdette Tomlin Memorial
Hospital, Series 1999, 5.500%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.2%
145 New Jersey Economic Development Authority, District Heating No Opt. Call N/R 145,206
and Cooling Revenue Bonds, Trigen-Trenton Project,
Series 1993B, 6.100%, 12/01/04 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.7%
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A+ 1,079,690
335 5.500%, 6/01/31 6/11 at 102.00 A+ 343,405
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 240,670
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.8%
Hamilton Township, Mercer County Board of Education, New Jersey,
General Obligation Bonds, Series 2001:
1,850 4.750%, 8/15/18 - FSA Insured 8/10 at 100.00 AAA 1,882,856
1,630 4.750%, 8/15/19 - FSA Insured 8/10 at 100.00 AAA 1,651,956
Puerto Rico, Public Improvement General Obligation Refunding
Bonds, Series 2001:
3,500 5.250%, 7/01/27 - FSA Insured 7/11 at 100.00 AAA 3,742,865
2,000 5.125%, 7/01/30 - FSA Insured 7/11 at 100.00 AAA 2,121,200
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.6%
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,822,914
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
50 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 54,958
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000, 6.000%, 10/01/25 -
FGIC Insured
2,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 2,170,540
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
550 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 584,364
900 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 928,746
1,015 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 1,040,436
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2001A:
2,000 5.250%, 6/15/19 - AMBAC Insured 6/11 at 100.00 AAA 2,108,620
2,400 5.000%, 6/15/21 - AMBAC Insured 6/11 at 100.00 AAA 2,447,256
1,500 New Jersey Economic Development Authority, School Facilities 6/12 at 100.00 AAA 1,586,160
Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/15 - MBIA Insured
33
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA $ 1,048,380
Construction Bonds, Series 2003F, 5.250%, 6/15/21 -
FGIC Insured
1,000 New Jersey Economic Development Authority, School Facilities 9/13 at 100.00 AAA 1,031,480
Construction Bonds, Series 2004G, 5.000%, 9/01/20 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,055,980
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,108,540
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
1,000 5.500%, 6/15/17 6/13 at 100.00 AA- 1,084,160
1,000 5.500%, 6/15/18 6/13 at 100.00 AA- 1,081,850
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,547,775
Refunding Bonds, Matching Fund Loan Notes, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.0%
1,000 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 1,063,760
Revenue Bonds, Series 2003, 5.250%, 1/01/18 - MBIA Insured
35 Delaware River Port Authority, New Jersey and Pennsylvania, 1/06 at 102.00 AAA 36,221
Revenue Bonds, Series 1995, 5.500%, 1/01/26 - FGIC Insured
1,800 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 1,399,338
Facilities Revenue Bonds, Continental Airlines, Inc.,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,111,150
5.000%, 1/01/19 - FGIC Insured
375 Newark Housing Authority, New Jersey, Marine Terminal 1/14 at 100.00 AAA 392,565
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
3,000 The Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 3,059,190
Revenue Bonds, One Hundred Ninth Series 1997, 5.375%, 1/15/32
- MBIA Insured
3,500 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,532,445
Bonds, One Hundred Twentieth Series 2000, 5.500%, 10/15/35
(Alternative Minimum Tax) - MBIA Insured
5,000 The Port Authority of New York and New Jersey, Special 12/07 at 102.00 AAA 5,315,000
Project Bonds, JFK International Air Terminal LLC, Sixth
Series 1997, 5.750%, 12/01/22 (Alternative Minimum Tax) -
MBIA Insured
4,000 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 4,097,960
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.9%
5,215 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 5,938,060
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
1,565 New Jersey Educational Facilities Authority, Revenue Bonds, 7/10 at 100.00 AAA 1,722,345
Princeton University, Series 2000E, 5.250%, 7/01/16
(Pre-refunded to 7/01/10)
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/09 at 100.00 AA-*** 3,371,271
System Bonds, Series 1998A, 5.000%, 6/15/17 (Pre-refunded
to 6/15/09)
4,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 4,193,200
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.2%
2,185 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 2,142,174
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 24.0%
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,712,080
Revenue Bonds, American Water Company, Series 1997B,
5.375%, 5/01/32 (Alternative Minimum Tax) - FGIC Insured
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,080,780
Revenue Bonds, Middlesex Water Company, Series 1998,
5.350%, 2/01/38 (Alternative Minimum Tax) - MBIA Insured
2,500 New Jersey Economic Development Authority, Water Facilities 7/08 at 102.00 AAA 2,510,850
Revenue Bonds, American Water Company, Series 1998A,
5.250%, 7/01/38 (Alternative Minimum Tax) - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA $ 2,778,552
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewer Authority, New Jersey, Sewer Revenue No Opt. Call Aaa 5,918,617
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 148,895 Total Long-Term Investments (cost $140,353,684) - 149.4% 142,888,394
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.8% 762,445
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.2)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 95,650,839
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
35
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.9%
$ 1,250 New Jersey Economic Development Authority, Industrial 4/06 at 102.00 Ba3 $ 1,265,138
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel Project, Series 1996, 7.000%, 10/01/14
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3%
1,090 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 937,389
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
1,600 6.125%, 6/01/24 6/13 at 100.00 BBB 1,445,136
1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,135,563
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6%
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,011,510
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,120,019
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,036,840
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 525,565
William Paterson University, Series 2004A, 5.125%, 7/01/19
(DD, settling 7/01/04) - FGIC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 589,651
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 (DD, settling 7/01/04) - AMBAC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 195,846
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
(WI, settling 7/14/04)
2,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB 2,027,560
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez University
System, Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry, New Jersey, Revenue 12/12 at 100.00 AAA 1,788,604
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6%
1,000 Virgin Islands Government Refinery Facilities, Senior Secured 1/13 at 100.00 BBB- 1,060,230
Revenue Bonds, Hovensa LLC Coker Project, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 25.2%
1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,429,125
Revenue Refunding Bonds, St. Elizabeth Hospital Obligated
Group, Series 1997, 6.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 503,060
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,893,950
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,137,350
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 1,034,840
Revenue Bonds, Palisades Medical Center of New York -
Presbyterian Healthcare System, Series 2002, 6.625%, 7/01/31
2,500 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 2,580,000
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,296,388
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
500 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa2 472,710
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A+ $ 3,641,120
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 516,411
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - MBIA Insured
2,100 Puerto Rico Industrial, Medical, Educational and Environmental 12/04 at 102.50 Baa1 2,126,166
Pollution Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products
Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.5%
2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,276,123
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.1%
2,700 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 2,689,497
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.8%
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A+ 1,050,630
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,100,360
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 6.8%
3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,064,830
General Obligation Bonds, Series 2002, 5.000%, 4/15/21 -
FGIC Insured
1,000 Old Bridge Township Board of Education, Middlesex County, 7/11 at 100.00 AAA 1,004,980
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 7/15/30 - MBIA Insured
385 Puerto Rico, Public Improvement General Obligation Bonds, 7/11 at 100.00 AAA 394,644
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.9%
3,000 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 3,015,240
Authority, Revenue Bonds, Series 2002, 5.000%, 12/01/25 -
FGIC Insured
1,000 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AAA 1,044,650
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
160 Essex County Improvement Authority, New Jersey, General 10/10 at 100.00 Aaa 175,866
Obligation Guaranteed Lease Revenue Bonds, County
Correctional Facility Project, Series 2000,
6.000%, 10/01/25 - FGIC Insured
1,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 1,085,270
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 - FSA Insured 11/13 at 100.00 AAA 531,240
625 5.000%, 11/01/20 - FSA Insured 11/13 at 100.00 AAA 644,963
700 5.000%, 11/01/21 - FSA Insured 11/13 at 100.00 AAA 717,542
535 Mansfield Township Board of Education Warren County, 3/06 at 102.00 AAA 574,611
New Jersey, Certificates of Participation,
5.900%, 3/01/15 - MBIA Insured
1,000 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 1,054,310
Facilities Construction Bonds, Series 2001A,
5.250%, 6/15/19 - AMBAC Insured
1,000 New Jersey Economic Development Authority, School 6/12 at 100.00 AAA 1,028,060
Facilities Construction Financing Act Bonds, Series 2002C,
5.000%, 6/15/20 - MBIA Insured
1,000 New Jersey Economic Development Authority, School 9/13 at 100.00 AAA 1,031,480
Facilities Construction Bonds, Series 2004G,
5.000%, 9/01/20 - AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,108,540
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AA- 1,081,850
System Bonds, Series 2003C, 5.500%, 6/15/18
37
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA $ 692,050
System Bonds, Series 2001B, 5.000%, 12/15/21 - MBIA Insured
1,000 Puerto Rico Public Finance Corporation, Commonwealth No Opt. Call AAA 1,048,580
Appropriation Bonds, Series 1998A, 5.125%, 6/01/24 -
AMBAC Insured
2,000 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB+ 2,156,160
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 23.6%
770 Delaware River and Bay Authority, Delaware and New Jersey, 1/13 at 100.00 AAA 819,095
Revenue Bonds, Series 2003, 5.250%, 1/01/18 - MBIA Insured
1,200 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 932,892
Revenue Bonds, Continental Airlines, Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AAA 2,074,100
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
675 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call A 792,335
Series 1991C, 6.500%, 1/01/16
250 Newark Housing Authority, New Jersey, Marine Terminal 1/14 at 100.00 AAA 261,710
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
2,000 The Port Authority of New York and New Jersey, 6/14 at 100.00 AAA 1,957,900
Consolidated Revenue Bonds, One Hundred Twenty-Seventh
Series 2002, 5.125%, 6/15/37 (Alternative Minimum Tax)
3,000 The Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,997,780
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
1,000 The Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 1,004,060
Revenue Bonds, One Hundred Twenty-First Series 2000,
5.125%, 10/15/30 - MBIA Insured
The Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
4,000 7.000%, 12/01/12 (Alternative Minimum Tax) - MBIA Insured No Opt. Call AAA 4,689,000
50 5.750%, 12/01/22 (Alternative Minimum Tax) - MBIA Insured 12/07 at 102.00 AAA 53,150
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 14.5%
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,415,950
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded to 7/01/10)
2,430 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call A*** 2,869,393
Series 1991C, 6.500%, 1/01/16
615 Puerto Rico, Public Improvement General Obligation Bonds, 7/11 at 100.00 AAA 677,398
Series 2001, 5.125%, 7/01/23 (Pre-refunded to 7/01/11) -
FSA Insured
2,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,620,750
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 13.7%
995 Camden County Pollution Control Financing Authority, 12/04 at 100.00 B2 975,498
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,500 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 2,528,725
5.250%, 10/01/34 - MBIA Insured
2,500 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 2,499,050
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,046,050
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 0.8%
500 North Hudson Sewer Authority, New Jersey, Sewer Revenue 8/12 at 100.00 Aaa 527,761
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 96,300 Total Long-Term Investments (cost $97,707,661) - 150.3% 99,084,244
=============-----------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0%
$ 400 New Jersey Economic Development Authority, Water Facilities A-1+ $ 400,000
Revenue Refunding Bonds, United Water Company of
New Jersey, Inc., Variable Rate Demand Obligations,
Series 1996A, 1.080%, 11/01/26 - AMBAC Insured+
250 Puerto Rico Government Development Bank, Adjustable A-1 250,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.000%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 650 Total Short-Term Investments (cost $650,000) 650,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $98,357,661) - 151.3% 99,734,244
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 684,451
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.3)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 65,918,695
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
*** Securities are backed by an escrow or trust containing
sufficient U.S. Government or U.S. Government agency
securities which ensures the timely payment of
principal and interest. Such securities are normally
considered to be equivalent to AAA rated securities.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
39
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 1.8%
$ 4,300 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 4,335,604
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.3%
10,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 9,875,400
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,001,940
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
2,000 Chester County, Pennsylvania, Industrial Development 1/12 at 100.00 AAA 1,993,460
Authority Educational Facilities Revenue Bonds, The Westtown
School Project, Series 2002, 5.000%, 1/01/26 -
AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,169,170
Haverford College, Series 2000, 5.750%, 11/15/29
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,401,474
Bonds, Villanova University, Series 2003, 5.250%, 8/01/18 -
FGIC Insured
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,030,210
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
1,450 Indiana County Industrial Development Authority, 11/06 at 100.00 AAA 1,524,559
Pennsylvania, Revenue Bonds, The Student Cooperative
Association, Inc./Indiana University of Pennsylvania Student
Union Project, Series 1999A, 5.875%, 11/01/29 -
AMBAC Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, The Student Cooperative Association, Inc./
Indiana University of Pennsylvania Student Union Project,
Series 1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 482,399
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 455,626
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 429,692
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 405,104
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 381,347
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 7,912,960
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, State 6/12 at 100.00 Aaa 5,147,050
System of Higher Education Revenue Bonds, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,004,810
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
2,945 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 AA 3,037,208
Revenue Bonds, Ursinus College, Series 2003,
5.375%, 1/01/20 - RAAI Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 AA 5,013,000
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
2,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 2,198,500
Bonds, Series 2002, 5.250%, 8/15/12
7,445 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 7,352,831
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 1,762,436
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/18
195 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/04 at 100.00 N/R 197,430
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 7.4%
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,181,276
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,241,588
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
$ 2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB $ 2,349,600
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
9,000 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A 9,350,370
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
1,175 Philadelphia Hospitals and Higher Education Facilities 11/04 at 101.00 BBB 1,184,541
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 AAA 1,739,484
Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
1,000 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,014,020
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4%
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/04 at 100.00 A2 961,037
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.7%
2,305 Allegheny County Residential Finance Authority, Pennsylvania, No Opt. Call Aaa 363,429
Single Family Mortgage Revenue Bonds, GNMA
Mortgage-Backed Securities Program, Series 1994Z,
0.000%, 5/01/27 (Alternative Minimum Tax)
225 Berks County Redevelopment Authority, Pennsylvania, No Opt. Call A+ 228,006
Senior Single Family Mortgage Revenue Bonds, Series 1986A,
8.000%, 12/01/17 (Alternative Minimum Tax)
5,000 Pennsylvania Housing Finance Agency, Single Family 10/07 at 101.50 AA+ 5,123,400
Mortgage Revenue Bonds, Series 1997-59A,
5.750%, 10/01/23 (Alternative Minimum Tax)
2,210 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,234,995
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 994,320
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.4%
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,032,200
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,598,300
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5%
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,443,210
Revenue Bonds, Presbyterian Homes, Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
3,225 Montgomery County Higher Education and Health Authority, 1/06 at 101.00 BBB 3,227,000
Pennsylvania, Mortgage Revenue Bonds, Waverly Heights
Project, Series 1996, 6.375%, 1/01/26
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,523,115
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 33.2%
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,649,223
Series C-52, 5.250%, 11/01/23 - FGIC Insured
3,120 Allegheny County, Pennsylvania, General Obligation 5/11 at 100.00 AAA 3,270,415
Refunding Bonds, Series C-53, 5.250%, 11/01/20 -
FGIC Insured
Butler County, Pennsylvania, General Obligation Bonds,
Series 2004:
1,200 5.000%, 7/15/16 - FGIC Insured 7/14 at 100.00 AAA 1,271,412
1,000 4.200%, 7/15/21 - FGIC Insured 7/14 at 100.00 AAA 912,480
5,760 Cumberland County, Pennsylvania, Carlisle Area School District, 3/12 at 100.00 Aaa 5,845,709
General Obligation Bonds, Series 2002, 5.000%, 3/01/22 -
MBIA Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,227,412
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
1,000 Delaware County, Pennsylvania, General Obligation Bonds, 10/09 at 100.00 AA 1,040,410
Series 1999, 5.125%, 10/01/19
41
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,130 Downington Area School District, Chester County, Pennsylvania, 4/11 at 100.00 Aaa $ 1,171,980
General Obligation Refunding Bonds, Series 2001,
4.900%, 4/01/16 - FSA Insured
4,600 Delaware County, Pennsylvania, General Obligation Bonds, 8/11 at 100.00 Aaa 4,612,052
Garnet Valley School District, Series 2001A, 5.000%, 2/15/25 -
FGIC Insured
2,750 Harrisburg Redevelopment Authority, Dauphin County, 5/16 at 68.04 AAA 935,578
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B,
0.000%, 5/01/24 - FSA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,705,904
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 - FGIC Insured
3,430 McKeesport Area School District, Allegheny County, No Opt. Call AAA 1,243,512
Pennsylvania, General Obligation Bonds, Series 1999C,
0.000%, 10/01/23 - AMBAC Insured
7,500 Montgomery County, Pennsylvania General Obligation Bonds, 7/09 at 100.00 Aaa 7,549,650
Series 1999, 5.000%, 7/15/24
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,059,880
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 (DD, settling 7/01/04) - MBIA Insured
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,025 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,059,532
1,125 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,156,399
1,000 Pennsylvania General Obligation Bonds, Second 9/11 at 101.00 AA 1,060,190
Series 2001, 5.000%, 9/15/15
4,000 Pennsylvania, General Obligation Refunding Bonds, No Opt. Call AAA 4,359,800
Second Series 2002, 5.000%, 10/01/11 - FGIC Insured
1,700 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 1,671,321
Series 2001, 5.000%, 9/15/31 - FSA Insured
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,075,320
2,585 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,813,695
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,669,892
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,329,130
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,188,999
General Obligation Bonds, Series 2001, 5.250%, 9/15/30 -
FGIC Insured
1,590 Red Lion Area School District, York County, Pennsylvania, 10/11 at 100.00 Aaa 1,629,909
General Obligation Bonds, Series 2001, 5.000%, 4/15/20 -
FSA Insured
1,230 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 1,290,528
Revenue Bonds, Conneaut School District Project,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,517,725
General Obligation Bonds, Series 2001A, 5.000%, 4/01/18 -
FSA Insured
4,020 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 4,252,477
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
Wilkes-Barre Area School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2003A:
1,700 5.250%, 4/01/19 - MBIA Insured 4/14 at 100.00 AAA 1,808,613
2,050 5.250%, 4/01/20 - MBIA Insured 4/14 at 100.00 AAA 2,169,310
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.4%
5,000 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,069,450
Pennsylvania, Revenue Bonds, Guaranteed County Building
Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured
2,900 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 2,873,059
Pennsylvania, Guaranteed Revenue Bonds, Allegheny
County Office Building Project, Series 2002B,
5.000%, 11/01/29 - MBIA Insured
Port Authority of Allegheny County, Pennsylvania, Special
Transportation Revenue Bonds, Series 2001:
1,000 5.500%, 3/01/17 - FGIC Insured 3/11 at 101.00 AAA 1,076,710
5,750 5.000%, 3/01/29 - FGIC Insured 3/11 at 101.00 AAA 5,698,883
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 6,747,960
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA $ 8,590,897
Special Tax Revenue Refunding Bonds, Philadelphia Funding
Program, Series 1999, 4.750%, 6/15/23 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,500 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,629,345
2,600 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,794,766
2,125 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,272,284
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,562,729
Bonds, Series 2001, 5.000%, 7/15/41 - AMBAC Insured
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,091,261
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.250%, 10/01/30 - FSA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,875,689
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny County Public Auditorium Authority, 8/09 at 101.00 AAA 3,969,040
Pennsylvania, Regional Asset District, Sales Tax Revenue
Bonds, Series 1999, 5.000%, 2/01/29 - AMBAC Insured
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 1,155,149
Tax Increment Financing District Bonds, Center Triangle
Project, Series 1999A, 6.100%, 5/01/19
1,410 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,573,898
Revenue Bonds, Series 2003AA, 5.500%, 7/01/20 -
MBIA Insured
Southeastern Transportation Authority, Pennsylvania, Special
Revenue Bonds, Series 1999A:
1,800 5.250%, 3/01/16 - FGIC Insured 3/09 at 101.00 AAA 1,920,528
1,250 4.750%, 3/01/29 - FGIC Insured 3/09 at 101.00 AAA 1,188,063
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 9.0%
1,460 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 1,535,905
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, 5/10 at 100.00 Aaa 2,150,914
Airport Revenue Bonds, Lehigh Valley Airport System,
Series 2000A, 6.000%, 5/15/30 (Alternative Minimum
Tax) - MBIA Insured
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,534,730
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.800%, 6/01/23 (Alternative
Minimum Tax) - ACA Insured
2,500 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/11 at 101.00 AAA 2,472,775
Revenue Bonds, Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 4,974,850
Series 2001B, 5.250%, 6/15/31 (Alternative Minimum
Tax) - FGIC Insured
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,298,815
Revenue Bonds, Series 1999, 5.250%, 9/01/29 -
FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 2,047,053
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.5%
1,355 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA 1,453,956
District, General Obligation Bonds, Series 1996,
5.850%, 7/15/12 (Pre-refunded to 7/15/06) - FGIC Insured
15,050 Philadelphia School District, Pennsylvania, General Obligation 9/05 at 101.00 AAA 15,583,824
Bonds, Series 1995B, 5.500%, 9/01/25 (Pre-refunded to
9/01/05) - AMBAC Insured
2,000 Sto-Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,271,100
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded to 12/15/10) - MBIA Insured
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,700,380
Pennsylvania, Water and Sewer Revenue Bonds,
Series 1991, 7.100%, 12/01/21 (Pre-refunded to
11/15/15) - FGIC Insured
5,450 West View Borough, Municipal Authority, Allegheny County, No Opt. Call AAA 7,360,279
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
43
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 8.9%
$ 1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA $ 1,266,850
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
2,565 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,750,321
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
4,000 Lehigh County Industrial Development Authority, Pennsylvania, 8/05 at 102.00 AAA 4,232,960
Pollution Control Revenue Refunding Bonds, Pennsylvania
Power and Light Company Project, Series 1995A,
6.150%, 8/01/29 - MBIA Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,825,885
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,129,140
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
3,500 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 3,827,215
General Ordinance, Sixteenth Series 1975, 5.500%, 7/01/13 -
FSA Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,665,331
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 18.1%
1,000 Bucks County Water and Sewerage Authority, Pennsylvania, 12/06 at 100.00 AAA 1,066,610
Collection System Revenue Bonds, Series 1996,
5.550%, 12/01/17 - FGIC Insured
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,041,050
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company Project, Series 2001, 5.350%, 10/01/31
(Alternative Minimum Tax) - AMBAC Insured
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewer Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,501,258
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,504,570
1,400 Delaware County Regional Water Quality Authority, 5/14 at 100.00 Aaa 1,482,054
Pennsylvania, Sewer Revenue Bonds, Series 2004,
5.250%, 5/01/20 (WI, settling 7/08/04) - MBIA Insured
Erie, Pennsylvania, Water Authority, Water Revenue Bonds,
Series 2001A:
2,670 0.000%, 12/01/23 - MBIA Insured No Opt. Call AAA 952,282
5,000 5.200%, 12/01/30 - MBIA Insured 12/11 at 100.00 AAA 5,050,650
1,250 Lancaster Area Sewer Authority, Pennsylvania, Sewer 4/14 at 100.00 AAA 1,288,350
Revenue Bonds, Series 2004, 5.000%, 4/01/20 - MBIA Insured
1,000 Lower Bucks County Joint Municipal Authority, Pennsylvania, 11/08 at 100.00 Aaa 1,052,360
Water and Sewerage Revenue Bonds, Series 1998,
5.000%, 11/15/15 - FSA Insured
5,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102.00 Aaa 5,198,100
Facilities Revenue Refunding Bonds, Pennsylvania Gas and
Water Company Project, Series 1994A, 7.000%, 12/01/17
(Alternative Minimum Tax) - AMBAC Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 2001A:
5,525 5.375%, 11/01/20 - FGIC Insured 11/12 at 100.00 AAA 5,863,517
10,260 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 10,086,602
------------------------------------------------------------------------------------------------------------------------------------
$ 365,665 Total Long-Term Investments (cost $358,959,582) - 151.6% 368,709,955
=============-----------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3%
$ 565 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, VMIG-1 $ 565,000
Hamot Health Foundation, Variable Rate Demand
Obligations, Series 1998B, 1.100%, 5/15/20 -
AMBAC Insured+
250 Puerto Rico Government Development Bank, Adjustable A-1 250,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 1.000%, 12/01/15 - MBIA Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 815 Total Short-Term Investments (cost $815,000) 815,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $359,774,582) - 151.9% 369,524,955
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 5,762,148
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 243,287,103
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
45
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 12.0%
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 980,377
Commonwealth of Pennsylvania, College Revenue Bonds,
Thiel College, Series 1999A, 5.375%, 11/15/29 -
ACA Insured
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BBB- 2,901,480
Pennsylvania, College Revenue Bonds, Immaculata College,
Series 1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Refunding
Bonds, Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AAA 1,807,931
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,424,264
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,048,170
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,022,480
Bonds, LaSalle University, Series 1998, 5.250%, 5/01/23 -
MBIA Insured
2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 AA 2,191,602
Revenue Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,481,340
Bonds, Temple University, Series 2001, 5.000%, 7/15/31 -
MBIA Insured
4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 4,205,140
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
5,750 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 5,582,732
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 1,345,553
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa3 793,890
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/19
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 2,576,600
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18
495 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/04 at 100.00 N/R 501,168
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 19.2%
8,500 Allegheny County Hospital Development Authority, 5/06 at 102.00 AAA 8,994,020
Pennsylvania, Revenue Bonds, South Hills Health System,
Series 1996A, 5.875%, 5/01/26 - MBIA Insured
14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 14,401,800
Pennsylvania, Revenue Bonds, University of Pittsburgh
Medical Center System, Series 1997A, 5.625%, 4/01/27 -
MBIA Insured
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,294,329
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB+ 4,953,050
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,241,588
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
2,400 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,255,616
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
4,700 Pennsylvania Higher Educational Facilities Authority, 1/06 at 101.00 A 4,790,992
Revenue Bonds, University of Pennsylvania Health Services,
Series 1996A, 5.750%, 1/01/22
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BBB- 1,824,800
2,000 5.625%, 7/01/24 7/08 at 100.00 BBB- 1,749,260
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE (continued)
Sayre Health Care Facility Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
$ 1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 AAA $ 1,811,333
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,269,012
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3%
4,345 Bucks County Redevelopment Authority, Pennsylvania, Second 8/04 at 100.00 Baa2 4,161,163
Lien Multifamily Mortgage Revenue Bonds, Section 8
Assisted, Country Commons Apartments, Series 1993A,
6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, No Opt. Call AAA 2,043,460
Pennsylvania, Multifamily Housing Revenue Bonds,
Darby Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Alternative Minimum Tax) (Mandatory put 4/01/22)
1,530 Luzerne County Housing Corporation, Pennsylvania, 9/04 at 100.00 Aaa 1,531,178
Mortgage Revenue Refunding Bonds, FHA-Insured
Mortgage Loan, Freeland Apartments Section 8 Assisted
Project, Series 1993, 6.125%, 7/15/23
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.2%
1,230 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 1,269,385
GNMA Mortgage-Backed Securities Program, Single Family
Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,120 Pennsylvania Housing Finance Agency, Single Family Mortgage No Opt. Call AA+ 1,165,998
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 1997-56A:
1,500 6.050%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 1,553,385
710 6.150%, 10/01/27 (Alternative Minimum Tax) 4/07 at 102.00 AA+ 727,835
1,400 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/07 at 101.50 AA+ 1,430,534
Revenue Bonds, Series 1997-58A, 5.950%, 10/01/28
(Alternative Minimum Tax)
1,645 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/07 at 101.50 AA+ 1,659,081
Revenue Bonds, Series 1997-59A, 5.700%, 4/01/17
(Alternative Minimum Tax)
820 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 839,590
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,500 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/06 at 102.00 AAA 1,553,415
Mortgage Revenue Bonds, Series 1996C, 6.500%, 10/01/23
(Alternative Minimum Tax)
Pittsburgh Urban Redevelopment Authority, Pennsylvania,
Mortgage Revenue Bonds, Series 1997A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA 882,839
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 796,740
155 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/04 at 101.00 AAA 156,841
Mortgage Revenue Bonds, Series 1992D, 6.500%, 4/01/17
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.1%
2,000 New Morgan Industrial Development Authority, Pennsylvania, 10/04 at 102.00 BB- 1,905,100
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company, Inc. Project, Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,015,300
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
Pennsylvania Industrial Development Authority, Economic
Development Revenue Bonds, Series 1994:
2,000 7.000%, 7/01/06 - AMBAC Insured No Opt. Call AAA 2,185,220
1,550 7.000%, 1/01/07 - AMBAC Insured No Opt. Call AAA 1,713,231
1,000 7.000%, 7/01/07 - AMBAC Insured No Opt. Call AAA 1,122,760
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 2,997,858
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.4%
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 981,080
Revenue Bonds, Presbyterian Homes, Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
1,230 Pennsylvania Economic Development Financing Authority 6/08 at 100.00 BB+ 880,963
Revenue Bonds, Northwestern Human Services, Inc. Project,
Series 1998A, 5.250%, 6/01/28
47
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center, Inc., Series 2000:
$ 1,000 6.150%, 12/01/20 - RAAI Insured 8/04 at 100.00 AA $ 1,002,900
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,317,789
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,594,049
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.1%
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 518,720
Environmental Improvement Revenue Refunding Bonds,
Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 4,385,160
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.8%
Butler County, Pennsylvania, General Obligation Bonds,
Series 2004:
1,200 5.000%, 7/15/16 - FGIC Insured 7/14 at 100.00 AAA 1,271,412
1,000 4.200%, 7/15/21 - FGIC Insured 7/14 at 100.00 AAA 912,480
2,800 4.125%, 7/15/20 - FGIC Insured 7/14 at 100.00 AAA 2,566,340
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,146,415
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
Chichester School District, Delaware County, Pennsylvania,
General Obligation Bonds, Series 1999:
3,125 0.000%, 3/01/23 - FGIC Insured No Opt. Call AAA 1,156,688
3,125 0.000%, 3/01/24 - FGIC Insured No Opt. Call AAA 1,080,062
3,125 0.000%, 3/01/25 - FGIC Insured No Opt. Call AAA 998,875
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 659,960
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,009,113
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 969,375
4,305 Montgomery County, Pennsylvania, General Obligation Bonds, 10/06 at 100.00 Aaa 4,493,602
Series 1996B, 5.375%, 10/15/21
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,059,880
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 (DD, settling 7/01/04) - MBIA Insured
Norristown Area School District, Montgomery County,
Pennsylvania, General Obligation Bonds, Series 2003:
1,000 5.000%, 9/01/19 - FGIC Insured 3/13 at 100.00 Aaa 1,033,690
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,027,910
1,735 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,773,465
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,032,920
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,297,717
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,617,108
3,500 Pennsylvania, General Obligation Refunding Bonds, Second No Opt. Call AAA 3,814,825
Series 2002, 5.000%, 10/01/11 - FGIC Insured
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
1,000 5.000%, 2/15/12 - XLCA Insured No Opt. Call AAA 1,075,320
2,000 5.250%, 2/15/13 - XLCA Insured No Opt. Call AAA 2,176,940
2,000 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 2,279,000
Refunding Bonds, Series 1995A, 6.250%, 9/01/09 -
AMBAC Insured
1,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,111,710
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
2,930 5.000%, 2/01/20 - FGIC Insured 2/13 at 100.00 Aaa 3,011,190
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 1,998,049
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District Project, Series 2003:
$ 1,000 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA $ 1,049,210
1,355 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 1,413,306
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, York City School District, Series 2003:
1,575 5.000%, 5/01/18 - FSA Insured 5/13 at 100.00 Aaa 1,638,205
2,550 4.000%, 5/01/21 - FSA Insured 5/13 at 100.00 Aaa 2,261,646
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,967,907
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/33 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,582,124
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,063,890
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 12.4%
4,060 Delaware Valley Regional Finance Authority, Pennsylvania, 4/06 at 100.00 AAA 4,267,588
Local Government Revenue Bonds, Series 1996A,
6.000%, 4/15/26 - AMBAC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
1,000 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,086,230
2,400 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,579,784
2,000 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,138,620
3,500 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 3,727,745
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
4,500 Pittsburgh and Allegheny County Public Auditorium Authority, 8/09 at 101.00 AAA 4,115,070
Pennsylvania, Hotel Room Excise Tax Revenue Bonds,
Series 1999, 4.500%, 2/01/29 - AMBAC Insured
2,405 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,691,892
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
Southeastern Transportation Authority, Pennsylvania, Special
Revenue Bonds, Series 1999A:
1,000 5.250%, 3/01/16 - FGIC Insured 3/09 at 101.00 AAA 1,066,960
5,375 4.750%, 3/01/29 - FGIC Insured 3/09 at 101.00 AAA 5,108,669
York County School of Technology Authority, Pennsylvania,
Lease Revenue Bonds, Series 2003:
1,000 5.375%, 2/15/20 - FGIC Insured 2/13 at 100.00 Aaa 1,061,560
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,063,060
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 16.3%
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,376,613
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
1,500 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 1,577,985
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,618,584
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.875%, 6/01/33 (Alternative
Minimum Tax) - ACA Insured
3,575 Pennsylvania Turnpike Commission, Pennsylvania Turnpike 12/11 at 101.00 AAA 3,536,068
Revenue Bonds, Series 2001R, 5.000%, 12/01/30 -
AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,035,600
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 (Alternative
Minimum Tax) - FGIC Insured
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 6,638,992
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,324,526
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
7,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,859,300
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
49
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 19.8%
$ 2,500 Bucks County, Pennsylvania, Bensalem Township School 7/06 at 100.00 AAA $ 2,683,825
District, General Obligation Bonds, Series 1996,
5.875%, 7/15/16 (Pre-refunded to 7/15/06) - FGIC Insured
Butler County, Pennsylvania, General Obligation Bonds,
Series 2003:
1,000 5.250%, 7/15/19 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,103,460
1,000 5.250%, 7/15/21 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,103,460
1,200 5.250%, 7/15/23 (Pre-refunded to 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,324,152
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,372,463
Series 2000, 5.625%, 11/15/28 (Pre-refunded to
11/15/10) - AMBAC Insured
17,895 Harrisburg Authority, Dauphin County, Pennsylvania, 9/07 at 100.00 AAA 19,521,834
Tax-Exempt Revenue Bonds, City of Harrisburg Project,
Series 1997-II, 5.625%, 9/15/22 (Pre-refunded to 9/15/07) -
MBIA Insured
7,900 Montgomery County Higher Education and Health Authority 1/09 at 101.00 AAA 8,576,003
Revenue Bonds, Pennsylvania, Pottstown Healthcare
Corporation, Series 1998, 5.000%, 1/01/27 (Pre-refunded
to 1/01/09) - FSA Insured
1,305 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,545,433
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 No Opt. Call AAA 1,144,930
3,690 6.650%, 12/01/19 No Opt. Call AAA 4,415,454
1,650 West View Borough, Municipal Authority, Allegheny County, No Opt. Call AAA 2,228,341
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.5%
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,140,165
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,073,040
Exempt Facilities Revenue Bonds, Shippingport Project,
Series 1998A, 5.375%, 6/01/28 (Alternative Minimum Tax) -
AMBAC Insured
3,485 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 3,736,791
Resource Recovery Revenue Refunding Bonds, Panther
Creek Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, 5/07 at 102.00 AAA 7,976,635
Pennsylvania, Pollution Control Revenue Bonds,
Metropolitan Edison Company Project, Series 1997A,
5.950%, 5/01/27 (Alternative Minimum Tax) -
AMBAC Insured
2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 1,997,380
Pennsylvania, Pollution Control Revenue Refunding
Bonds, PSEG Power LLC Project, Series 2001A,
5.850%, 6/01/27 (Alternative Minimum Tax)
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,672,458
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay Montgomery County Project,
Series 2002A, 5.250%, 11/01/13 - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 5,681,288
General Ordinance, Second Series 1999,
5.000%, 7/01/29 - FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,064,570
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
2,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 2,449,418
General Ordinance, Sixteenth Series 1975,
5.500%, 7/01/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.4%
2,000 Allegheny County Sanitary Authority, Pennsylvania, 12/10 at 101.00 AAA 2,085,040
Sewerage Revenue Bonds, Series 2000, 5.500%, 12/01/30 -
MBIA Insured
1,000 Allegheny County Sanitary Authority, Pennsylvania, 12/11 at 101.00 AAA 1,095,410
Sewerage Revenue Refunding Bonds, Series 2001,
5.375%, 12/01/13 - MBIA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,084,240
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax) - FGIC Insured
1,615 Delaware County Regional Water Quality Authority, 5/14 at 100.00 Aaa 1,679,697
Pennsylvania, Sewer Revenue Bonds, Series 2004,
5.250%, 5/01/23 (WI, settling 7/08/04) - MBIA Insured
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,315 Lancaster Area Sewer Authority, Pennsylvania, Sewer Revenue 4/14 at 100.00 AAA $ 1,347,033
Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,552,158
Water Facility Revenue Bonds, Consumers Water Company,
Shenango Valley Division Project, Series 2000,
6.000%, 7/01/30 (Alternative Minimum Tax) -MBIA Insured
Norristown Municipal Waste Authority, Pennsylvania, Sewer
Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,207,078
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,669,254
5,500 Northumberland County Industrial Development Authority, 10/04 at 101.00 AA- 5,599,494
Pennsylvania, Exempt Facilities Revenue Bonds, Roaring
Creek Water Company Project, Series 1993,
6.375%, 10/15/23 (Alternative Minimum Tax)
2,730 Philadelphia, Pennsylvania, Water and Wastewater Revenue No Opt. Call AAA 3,143,567
Bonds, Series 1995, 6.250%, 8/01/10 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 348,030 Total Long-Term Investments (cost $334,642,844) - 149.5% 347,594,532
------------------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 2,960,531
------------------------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (118,100,000)
------------------------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 232,455,063
====================================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
51
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.4%
$ 1,200 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,209,936
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 30.5%
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,256,818
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
1,325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,332,195
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,410,398
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
2,370 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 2,402,753
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,029,410
State System of Higher Education Revenue Bonds,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,163,924
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.500%, 1/01/16
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 AA 1,503,900
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,285,750
Bonds, Series 2002, 5.250%, 8/15/14
1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ 1,008,630
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 16.4%
400 Allegheny County Hospital Development Authority, 11/10 at 102.00 B 447,768
Pennsylvania, Revenue Bonds, West Penn Allegheny
Health System, Series 2000B, 9.250%, 11/15/30
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,496,575
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 248,318
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 563,904
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 A 2,233,700
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,041,420
Bonds, Monongahela Valley Hospital Project, Series 2002,
5.500%, 6/01/17
1,250 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 1,267,525
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.6%
1,795 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,810,850
Single Family Mortgage Revenue Bonds, Series 1998-DD2,
5.400%, 11/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.7%
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,015,300
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,362,663
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 11.9%
$ 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R $ 1,002,050
Retirement Community Revenue Bonds, Wesley Affiliated
Services, Inc., Series 2002A, 7.125%, 1/01/25
2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 2,141,580
Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 2,883,165
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 7.4%
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 803,745
Environmental Improvement Revenue Bonds, USX Corp.
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
3,000 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 2,923,440
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 36.0%
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,613,441
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
250 Duquesne School District, Allegheny County, Pennsylvania, 10/05 at 100.00 AAA 256,775
General Obligation Bonds, Series 1998, 5.000%, 10/01/18 -
AMBAC Insured
1,315 Lake-Lehman School District, Luzerne County, Pennsylvania, No Opt. Call AAA 424,771
General Obligation Bonds, Series 2001, 0.000%, 4/01/25 -
MBIA Insured
750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 806,370
Series 2003A, 5.250%, 11/15/16 - MBIA Insured
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,198,671
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 -
FGIC Insured
2,000 Pennsylvania General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 2,147,420
5.000%, 9/15/13
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,698,450
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,335,130
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
9,270 Reading School District, Berks County, Pennsylvania, General 7/11 at 54.58 AAA 3,433,793
Obligation Bonds, Series 2001A, 0.000%, 1/15/22 -
FGIC Insured
1,230 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,297,379
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.5%
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,086,230
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,615,530
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A, 5.500%, 4/15/19 - FGIC Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,065,070
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 783,503
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
250 Southeastern Transportation Authority, Pennsylvania, 3/09 at 101.00 AAA 266,740
Special Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
53
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 10.5%
$ 300 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 $ 315,597
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,004,040
Revenue Bonds, Amtrak 30th Street Station Parking Garage
Project, Series 2002, 5.875%, 6/01/33 (Alternative
Minimum Tax) - ACA Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,756,230
Pennsylvania, Airport Revenue Bonds, Philadelphia
Airport System Project, Series 2001A, 5.250%, 7/01/28
(Alternative Minimum Tax) - FGIC Insured
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 2,240,631
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.8%
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 506,740
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company Project, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
3,100 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,354,353
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Montenay Montgomery County Project,
Series 2002A, 5.000%, 11/01/10 - MBIA Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 - FSA Insured 8/13 at 100.00 AAA 1,058,070
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,052,720
------------------------------------------------------------------------------------------------------------------------------------
$ 78,110 Total Long-Term Investments (cost $71,194,737) - 146.7% 74,163,371
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 1,385,791
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.5)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 50,549,162
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
See accompanying notes to financial statements.
54
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.2%
$ 700 Allegheny County Higher Education Building Authority, 9/04 at 100.00 AA- $ 702,597
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
1,500 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 1,504,590
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,537,143
Bonds, Villanova University, Series 2003,
5.250%, 8/01/17 - FGIC Insured
20 Montgomery County Industrial Development Authority, 8/07 at 100.00 AAA 20,276
Pennsylvania, Revenue Bonds, Hill School Project,
Series 1997, 5.350%, 8/15/27 - MBIA Insured
2,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 AAA 1,975,120
Revenue Bonds, Temple University, Series 2001,
5.000%, 7/15/31 - MBIA Insured
5,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 5,496,250
Bonds, Series 2002, 5.250%, 8/15/12
1,000 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa3 1,053,330
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE - 11.2%
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
100 9.250%, 11/15/22 11/10 at 102.00 B 111,942
300 9.250%, 11/15/30 11/10 at 102.00 B 335,826
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 1,997,260
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 563,904
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,000 Philadelphia Hospitals and Higher Education Facilities 11/04 at 101.00 BBB 1,008,120
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,550,079
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
600 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB+ 608,412
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.9%
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,249,150
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.7%
960 Allegheny County Residential Finance Authority, Pennsylvania, 5/12 at 102.00 Aaa 980,256
Health Care Facilities Revenue Bonds, GNMA Collateralized -
Lemington Home for the Aged Project, Series 2002A,
5.750%, 5/20/37
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,168,848
Revenue Bonds, Pennswood Village Project, Series 2002A,
6.000%, 10/01/34
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 1,002,050
Retirement Community Revenue Bonds, Wesley Affiliated
Services, Inc., Series 2002A, 7.125%, 1/01/25
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.9%
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,071,660
Environmental Improvement Revenue Bonds, USX Corp.
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
55
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS June 30, 2004
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 32.1%
$ 1,500 Ambridge Area School District, Beaver County, Pennsylvania, 11/12 at 100.00 AAA $ 1,532,865
General Obligation Bonds, Series 2002B, 5.125%, 5/01/23 -
FGIC Insured
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,793,627
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 785,994
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,079,940
4,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 4,513,346
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 416,361
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
4,000 Pennsylvania General Obligation Bonds, Second Series 2001, 9/11 at 101.00 AA 4,240,760
5.000%, 9/15/15
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,421,635
Bonds, Series 2002B, 5.625%, 8/01/18 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 37.4%
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 4,498,640
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,032,720
Pennsylvania, County Guaranteed Revenue Bonds, Woodland
Place Project, Series 2002, 5.400%, 3/01/31 - FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed 9/11 at 100.00 Aaa 4,049,000
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,086,230
Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,078,085
Bonds, Series 2001, 5.500%, 7/15/33 - AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,004,100
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.125%, 10/01/26 - FSA Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AAA 1,081,830
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,853,793
700 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 783,503
Revenue Bonds, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
250 Southeastern Transportation Authority, Pennsylvania, Special 3/09 at 101.00 AAA 266,740
Revenue Bonds, Series 1999A, 5.250%, 3/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 4.1%
300 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 315,597
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,004,040
Revenue Bonds, Amtrak 30th Street Station Parking
Garage Project, Series 2002, 5.875%, 6/01/33 (Alternative
Minimum Tax) - ACA Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 967,120
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 7.8%
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,233,000
Series 2001, 5.500%, 11/15/26 (Pre-refunded to
5/15/11) - FGIC Insured
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,077,100
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded to
2/01/12) - FSA Insured
56
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.7%
$ 3,135 Montgomery County Industrial Development Authority, No Opt. Call AAA $ 3,392,227
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montenay Montgomery County Project, Series 2002A,
5.000%, 11/01/10 - MBIA Insured
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,534,731
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.3%
4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,594,770
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company Project, Series 2002, 5.550%, 9/01/32 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 78,335 Total Long-Term Investments (cost $79,169,974) - 147.3% 81,574,567
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.4%
750 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, VMIG-1 750,000
Hamot Health Foundation, Variable Rate Demand Obligations,
Series 1998B, 1.100%, 5/15/20 - AMBAC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 750 Total Short-Term Investments (cost $750,000) 750,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $79,919,974) - 148.7% 82,324,567
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 1,545,758
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.5)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,370,325
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates
(month and year) and prices of the earliest optional
call or redemption. There may be other call provisions
at varying prices at later dates.
** Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating.
N/R Investment is not rated.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that
currently in effect. This rate changes periodically
based on market conditions or a specified market index.
See accompanying notes to financial statements.
57
Statement of
ASSETS AND LIABILITIES June 30, 2004
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost $447,772,044,
$263,466,248, $140,353,684 and
$98,357,661, respectively) $454,570,397 $272,304,162 $142,888,394 $ 99,734,244
Cash 181,548 -- 442,366 533,937
Receivables:
Interest 6,833,781 4,147,522 2,310,688 1,507,415
Investments sold 2,265,239 615,000 -- --
Other assets 18,240 19,348 7,580 8,154
------------------------------------------------------------------------------------------------------------------------------------
Total assets 463,869,205 277,086,032 145,649,028 101,783,750
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 180,624 -- --
Payable for investments purchased 1,855,059 293,769 1,935,797 1,311,996
Accrued expenses:
Management fees 239,256 144,764 40,811 28,630
Other 90,598 99,483 20,070 17,157
Preferred share dividends payable 12,893 14,458 1,511 7,272
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,197,806 733,098 1,998,189 1,365,055
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $299,671,399 $184,752,934 $ 95,650,839 $ 65,918,695
====================================================================================================================================
Common shares outstanding 20,394,768 12,039,329 6,554,816 4,509,839
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.69 $ 15.35 $ 14.59 $ 14.62
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 203,948 $ 120,393 $ 65,548 $ 45,098
Paid-in surplus 287,649,009 171,866,559 93,046,329 63,945,160
Undistributed (Over-distribution of) net investment income 2,868,612 2,164,292 899,542 445,202
Accumulated net realized gain (loss) from investments 2,151,477 1,763,776 (895,290) 106,652
Net unrealized appreciation of investments 6,798,353 8,837,914 2,534,710 1,376,583
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $299,671,399 $184,752,934 $ 95,650,839 $ 65,918,695
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
58
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value (cost
$359,774,582, $334,642,844,
$71,194,737 and $79,919,974, respectively) $369,524,955 $347,594,532 $74,163,371 $82,324,567
Cash 3,458,983 748,597 356,425 280,656
Receivables:
Interest 5,123,491 5,138,428 1,054,632 1,296,610
Investments sold -- 95,000 -- --
Other assets 21,444 32,492 8,646 8,210
------------------------------------------------------------------------------------------------------------------------------------
Total assets 378,128,873 353,609,049 75,583,074 83,910,043
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased 2,546,043 2,742,016 -- --
Accrued expenses:
Management fees 194,995 182,556 21,546 23,916
Other 84,340 116,261 11,954 14,007
Preferred share dividends payable 16,392 13,153 412 1,795
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,841,770 3,053,986 33,912 39,718
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $243,287,103 $232,455,063 $50,549,162 $55,370,325
====================================================================================================================================
Common shares outstanding 16,301,498 15,774,977 3,299,790 3,724,790
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.92 $ 14.74 $ 15.32 $ 14.87
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 157,750 $ 32,998 $ 37,248
Paid-in surplus 230,742,391 215,725,252 46,805,412 52,797,233
Undistributed (Over-distribution of) net investment income 1,231,310 2,530,339 593,042 (19,053)
Accumulated net realized gain (loss) from investments 1,400,014 1,090,034 149,076 150,304
Net unrealized appreciation of investments 9,750,373 12,951,688 2,968,634 2,404,593
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $243,287,103 $232,455,063 $50,549,162 $55,370,325
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
59
Statement of
OPERATIONS Year Ended June 30, 2004
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 24,302,220 $ 14,153,302 $ 7,308,381 $5,180,644
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,994,179 1,813,391 946,500 663,883
Preferred shares - auction fees 406,659 230,018 120,391 86,531
Preferred shares - dividend disbursing agent fees 30,082 30,082 10,028 10,028
Shareholders' servicing agent fees and expenses 54,376 29,383 2,018 935
Custodian's fees and expenses 111,917 65,365 32,584 28,051
Directors'/Trustees' fees and expenses 11,144 5,691 3,312 2,164
Professional fees 24,841 17,343 14,721 12,325
Shareholders' reports - printing and mailing expenses 52,486 24,812 13,496 14,516
Stock exchange listing fees 13,497 13,262 580 399
Investor relations expense 20,978 9,894 13,754 8,731
Other expenses 33,150 15,091 15,218 19,700
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,753,309 2,254,332 1,172,602 847,263
Custodian fee credit (9,553) (5,866) (5,115) (4,510)
Expense reimbursement -- -- (438,059) (306,408)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,743,756 2,248,466 729,428 536,345
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 20,558,464 11,904,836 6,578,953 4,644,299
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 5,219,194 3,841,083 406,876 184,368
Change in net unrealized appreciation (depreciation)
of investments (20,391,457) (13,401,493) (5,455,331) (3,908,064)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (15,172,263) (9,560,410) (5,048,455) (3,723,696)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,019,897) (596,849) (359,649) (250,791)
From accumulated net realized gains from investments (272,572) (114,819) -- (18,535)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,292,469) (711,668) (359,649) (269,326)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ 4,093,732 $ 1,632,758 $ 1,170,849 $ 651,277
====================================================================================================================================
See accompanying notes to financial statements.
60
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 19,061,143 $ 18,361,606 $ 3,825,724 $ 4,100,210
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,438,416 2,289,102 500,490 556,420
Preferred shares - auction fees 331,415 296,998 62,703 67,965
Preferred shares - dividend disbursing agent fees 30,082 30,082 10,028 10,028
Shareholders' servicing agent fees and expenses 61,756 48,402 1,821 2,335
Custodian's fees and expenses 84,761 76,741 17,097 20,404
Directors'/Trustees' fees and expenses 9,141 8,469 1,707 1,788
Professional fees 21,910 22,264 10,891 11,482
Shareholders' reports - printing and mailing expenses 41,041 30,460 8,541 14,117
Stock exchange listing fees 13,382 13,269 292 330
Investor relations expense 16,124 16,525 6,600 7,382
Other expenses 29,259 12,853 10,724 12,995
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,077,287 2,845,165 630,894 705,246
Custodian fee credit (15,473) (25,293) (5,254) (3,207)
Expense reimbursement -- -- (230,995) (256,809)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,061,814 2,819,872 394,645 445,230
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,999,329 15,541,734 3,431,079 3,654,980
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS) FROM INVESTMENTS
Net realized gain from investments 2,709,764 1,921,255 265,020 201,991
Change in net unrealized appreciation (depreciation)
of investments (18,659,657) (14,322,786) (2,825,573) (3,455,178)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (15,949,893) (12,401,531) (2,560,553) (3,253,187)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (958,666) (799,594) (168,884) (199,429)
From accumulated net realized gains from investments (18,006) (131,627) (40,997) (49,773)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (976,672) (931,221) (209,881) (249,202)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations $ (927,236) $ 2,208,982 $ 660,645 $ 152,591
====================================================================================================================================
See accompanying notes to financial statements.
61
Statement of
CHANGES IN NET ASSETS
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
----------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03 6/30/04 6/30/03
-------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,558,464 $ 21,238,667 $ 11,904,836 $ 12,482,999 $ 6,578,953 $ 6,802,978
Net realized gain (loss)
from investments 5,219,194 1,346,875 3,841,083 1,350,825 406,876 (1,018,294)
Change in net unrealized
appreciation (depreciation)
of investments (20,391,457) 10,671,351 (13,401,493) 6,255,134 (5,455,331) 6,715,619
Distributions to Preferred
Shareholders:
From net investment income (1,019,897) (1,419,468) (596,849) (886,855) (359,649) (452,229)
From accumulated net
realized gains
from investments (272,572) (169,479) (114,819) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares
from operations 4,093,732 31,667,946 1,632,758 19,202,103 1,170,849 12,048,074
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,523,339) (18,736,412) (11,259,998) (11,026,672) (6,144,941) (5,713,922)
From accumulated net realized gains
from investments (4,021,804) (1,345,170) (1,617,686) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (23,545,143) (20,081,582) (12,877,684) (11,026,672) (6,144,941) (5,713,922)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- 1,664 --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 2,153,223 575,330 429,837 -- 121,525 --
Preferred shares offering costs -- -- -- -- -- 37,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 2,153,223 575,330 429,837 -- 123,189 37,290
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (17,298,188) 12,161,694 (10,815,089) 8,175,431 (4,850,903) 6,371,442
Net assets applicable to
Common shares at the
beginning of year 316,969,587 304,807,893 195,568,023 187,392,592 100,501,742 94,130,300
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $299,671,399 $316,969,587 $184,752,934 $195,568,023 $ 95,650,839 $100,501,742
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 2,868,612 $ 2,854,424 $ 2,164,292 $ 2,138,313 $ 899,542 $ 831,478
====================================================================================================================================
See accompanying notes to financial statements.
62
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
----------------------------- ------------------------------ ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03 6/30/04 6/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,644,299 $ 4,719,256 $ 15,999,329 $ 16,535,941 $ 15,541,734 $ 16,321,628
Net realized gain (loss)
from investments 184,368 345,915 2,709,764 1,884,672 1,921,255 1,698,255
Change in net unrealized
appreciation (depreciation)
of investments (3,908,064) 4,054,385 (18,659,657) 17,527,987 (14,322,786) 10,810,137
Distributions to Preferred
Shareholders:
From net investment income (250,791) (345,886) (958,666) (1,392,205) (799,594) (1,223,173)
From accumulated net
realized gains
from investments (18,535) (20,192) (18,006) -- (131,627) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 651,277 8,753,478 (927,236) 34,556,395 2,208,982 27,606,847
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,138,773) (4,137,816) (14,918,893) (14,842,385) (14,966,175) (14,623,151)
From accumulated net
realized gains
from investments (243,881) (143,736) (204,569) -- (1,741,706) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,382,654) (4,281,552) (15,123,462) (14,842,385) (16,707,881) (14,623,151)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 36,511 7,924 413,637 283,963 350,285 84,070
Preferred shares offering costs (2,307) (17,393) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 34,204 (9,469) 413,637 283,963 350,285 84,070
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares (3,697,173) 4,462,457 (15,637,061) 19,997,973 (14,148,614) 13,067,766
Net assets applicable to
Common shares at the
beginning of year 69,615,868 65,153,411 258,924,164 238,926,191 246,603,677 233,535,911
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $65,918,695 $69,615,868 $243,287,103 $258,924,164 $232,455,063 $246,603,677
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 445,202 $ 193,421 $ 1,231,310 $ 1,125,245 $ 2,530,339 $ 2,790,848
====================================================================================================================================
See accompanying notes to financial statements.
63
Statement of
CHANGES IN NET ASSETS (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
---------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,431,079 $ 3,553,126 $ 3,654,980 $ 3,732,725
Net realized gain (loss) from investments 265,020 685,967 201,991 618,914
Change in net unrealized appreciation
(depreciation) of investments (2,825,573) 3,644,254 (3,455,178) 4,220,745
Distributions to Preferred Shareholders:
From net investment income (168,884) (246,805) (199,429) (317,893)
From accumulated net realized gains
from investments (40,997) (47,322) (49,773) (17,220)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 660,645 7,589,220 152,591 8,237,271
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,180,784) (3,033,667) (3,419,014) (3,418,107)
From accumulated net realized gains
from investments (570,305) (322,656) (579,472) (109,844)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,751,089) (3,356,323) (3,998,486) (3,527,951)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares 1,664 -- -- --
Net proceeds from shares
issued to shareholders due to
reinvestment of distributions 46,581 -- 17,176 25,883
Preferred shares offering costs -- 51,983 (3,394) (13,359)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from
capital share transactions 48,245 51,983 13,782 12,524
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,042,199) 4,284,880 (3,832,113) 4,721,844
Net assets applicable to Common
shares at the beginning of year 53,591,361 49,306,481 59,202,438 54,480,594
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $50,549,162 $53,591,361 $55,370,325 $59,202,438
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 593,042 $ 513,680 $ (19,053) $ (55,552)
====================================================================================================================================
See accompanying notes to financial statements.
64
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state Funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund,
Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common
shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
are traded on the New York Stock Exchange while Common shares of New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Securities Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market value based on yields
or prices of municipal bonds of comparable quality, type of issue, coupon,
maturity and rating, indications of value from securities dealers, evaluations
of anticipated cash flows or collateral and general market conditions. If it is
determined that market prices for a security are unavailable or inappropriate,
the Board of Directors/Trustees of the Funds, or its designee, may establish a
fair value for the security. Temporary investments in securities that have
variable rate and demand features qualifying them as short-term securities are
valued at amortized cost, which approximates market value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities so purchased are subject to
market fluctuation during this period. The Funds have instructed the custodian
to segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At June 30, 2004, New
Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) had outstanding
when-issued and/or delayed delivery purchase commitments of $1,855,059,
$293,769, $1,935,797, $1,311,996, $2,546,043 and $2,742,016, respectively. There
were no such outstanding purchase commitments in Pennsylvania Dividend Advantage
(NXM) or Pennsylvania Dividend Advantage 2 (NVY).
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
65
Notes to
FINANCIAL STATEMENTS (continued)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute all income and capital gains to shareholders and to
otherwise comply with the requirements of Subchapter M of the Internal Revenue
Code applicable to regulated investment companies. Therefore, no federal income
tax provision is required. Furthermore, each Fund intends to satisfy conditions
which will enable interest from municipal securities, which is exempt from
regular federal and applicable state taxes, to retain such tax-exempt status
when distributed to shareholders of the Funds. All monthly tax-exempt income
dividends paid during the fiscal year ended June 30, 2004, have been designated
Exempt Interest Dividends. Net realized capital gains and ordinary income
distributions made by the Funds are subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in one or more Series. The dividend rate
on each Series may change every seven days, as set pursuant to a dutch auction
process by the auction agent, and is payable at or near the end of each rate
period. The number of Preferred shares outstanding, by Series and in total, for
each Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
--------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
================================================================================
66
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the fiscal year ended June 30, 2004.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for New Jersey Dividend
Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend
Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY). New Jersey Dividend
Advantage's (NXJ), New Jersey Dividend Advantage 2's (NUJ), Pennsylvania
Dividend Advantage's (NXM) and Pennsylvania Dividend Advantage 2's (NVY) total
share of Common share offering costs ($196,200, $135,000, $98,667 and $111,450,
respectively) were recorded as a reduction of the proceeds from the sale of
Common shares.
Total costs incurred by New Jersey Dividend Advantage (NXJ), New Jersey Dividend
Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania
Dividend Advantage 2 (NVY) in connection with their offering of Preferred shares
($599,210, $482,074, $338,767 and $414,975, respectively) were recorded as a
reduction to paid-in surplus.
Indemnifications
Under the Funds' organizational documents, its Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
------------------------ ----------------------- -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03 6/30/04 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 136,119 37,370 26,399 -- 7,816 --
========================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
--------------------------- ------------------------ -------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03 6/30/04 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 2,305 526 26,180 18,725 21,918 5,597
========================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/04 6/30/03 6/30/04 6/30/03
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 2,833 -- 1,068 1,709
========================================================================================================
67
Notes to
FINANCIAL STATEMENTS (continued)
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended June 30, 2004, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Purchases $90,112,871 $64,647,809 $15,845,119 $10,675,751
Sales and maturities 97,024,685 67,349,917 16,850,741 13,617,301
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Purchases $62,935,414 $66,484,022 $8,815,404 $3,689,191
Sales and maturities 61,913,635 57,002,417 7,667,607 3,123,491
================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At June 30, 2004, the cost of investments were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Cost of investments $447,721,194 $263,327,019 $140,324,787 $98,341,296
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $359,750,068 $334,482,769 $71,158,121 $79,909,053
================================================================================
68
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2004, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,201,158 $11,463,436 $ 3,673,821 $2,097,478
Depreciation (5,351,955) (2,486,293) (1,110,214) (704,530)
--------------------------------------------------------------------------------
Net unrealized
appreciation of
investments $ 6,849,203 $ 8,977,143 $ 2,563,607 $1,392,948
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Gross unrealized:
Appreciation $11,079,269 $16,093,217 $3,104,334 $2,517,892
Depreciation (1,304,382) (2,981,454) (99,084) (102,378)
--------------------------------------------------------------------------------
Net unrealized
appreciation of
investments $ 9,774,887 $13,111,763 $3,005,250 $2,415,514
================================================================================
The tax components of undistributed net investment income and net realized gains
at June 30, 2004, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
-------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $4,462,236 $2,976,263 $1,386,637 $780,856
Undistributed net ordinary income * -- 2,329 -- 44
Undistributed net long-term capital gains 2,151,477 1,763,776 -- 106,865
=============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $2,462,113 $3,556,298 $822,475 $256,772
Undistributed net ordinary income * -- 82,261 -- --
Undistributed net long-term capital gains 1,400,014 1,081,113 149,076 150,304
=============================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
69
Notes to
FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the fiscal years ended June 30,
2004 and June 30, 2003, was designated for purposes of the dividends paid
deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2004 (NQJ) (NNJ) (NXJ) (NUJ)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,469,088 $11,842,477 $6,494,901 $4,384,953
Distributions from net ordinary income * 41,049 4,078 -- 181,959
Distributions from net long-term capital gains 4,294,376 1,732,505 -- 80,457
=============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2004 (NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,807,419 $15,737,685 $3,347,542 $3,621,688
Distributions from net ordinary income * 67,996 23,349 6,531 383,089
Distributions from net long-term capital gains 222,575 1,873,333 605,751 246,490
=============================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2003 (NQJ) (NNJ) (NXJ) (NUJ)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,112,448 $11,722,514 $6,130,175 $4,484,545
Distributions from net ordinary income * -- 133,874 -- 163,988
Distributions from net long-term capital gains 1,514,649 -- -- --
=============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2003 (NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,232,380 $15,704,179 $3,253,465 $3,737,200
Distributions from net ordinary income * -- 93,494 107,098 127,064
Distributions from net long-term capital gains -- -- 269,069 --
=============================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
70
At June 30, 2004, the following Fund had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
NEW JERSEY
DIVIDEND
ADVANTAGE
(NXJ)
--------------------------------------------------------------------------------
Expiration year:
2010 $278,092
2011 --
2012 617,198
--------------------------------------------------------------------------------
Total $895,290
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under New Jersey Investment Quality's (NQJ), New Jersey Premium Income's (NNJ),
Pennsylvania Investment Quality's (NQP) and Pennsylvania Premium Income 2's
(NPY) investment management agreements with Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc., each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under New Jersey Dividend Advantage's (NXJ), New Jersey Dividend Advantage 2's
(NUJ), Pennsylvania Dividend Advantage's (NXM) and Pennsylvania Dividend
Advantage 2's (NVY) investment management agreements with the Adviser, each Fund
pays an annual management fee, payable monthly, at the rates set forth below,
which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to their officers, all of whom receive remuneration for their
services to the Funds from the Adviser, or its affiliates. The Board of Trustees
has adopted a deferred compensation plan for independent Trustees that enables
Trustees to elect to defer receipt of all or a portion of the annual
compensation they are entitled to receive from certain Nuveen advised Funds.
Under the plan, deferred amounts are treated as though equal dollar amounts had
been invested in shares of select Nuveen advised Funds.
As approved by the Board of Directors/Trustees, a complex-wide fee schedule for
all Funds managed by the Adviser and its affiliates went into effect on August
1, 2004. The implementation of this complex-wide fee schedule is expected to
result in a marginal immediate decrease in the rates (approximately .004%) at
which management fees are to be paid by the Funds. As assets in the Nuveen Fund
complex grow, the management fee rates to be paid by the Funds will decrease
further. Under no circumstances will the complex-wide fee schedule result in an
increase in the rates at which management fees would be paid by the Funds if the
complex-wide fee schedule were not implemented.
71
Notes to
FINANCIAL STATEMENTS (continued)
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
6. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on August 2, 2004, to shareholders of record
on July 15, 2004, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Dividend per share $.0800 $.0780 $.0785 $.0765
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0760 $.0790 $.0805 $.0765
================================================================================
72
Financial
HIGHLIGHTS
73
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -----------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $15.65 $1.01 $(.75) $(.05) $(.01) $ .20 $(.96) $(.20) $(1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
2001 14.45 1.19 .58 (.27) -- 1.50 (.92) -- (.92)
2000 15.14 1.20 (.63) (.29) (.01) .27 (.92) (.04) (.96)
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
2001 14.28 1.07 .99 (.25) -- 1.81 (.82) -- (.82)
2000 14.92 1.08 (.62) (.25) -- .21 (.85) -- (.85)
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
2001(a) 14.33 .14 .22 (.03) -- .33 (.14) -- (.14)
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(b) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
===================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
-----------------------------------------------------------------------------------
Year Ended 6/30:
2004 $-- $14.69 $14.1900 (4.09)% 1.26%
2003 -- 15.65 15.9400 11.68 10.72
2002 -- 15.07 15.2200 4.19 6.56
2001 -- 15.03 15.5000 17.13 10.62
2000 -- 14.45 14.0625 (4.94) 1.94
NEW JERSEY PREMIUM
INCOME (NNJ)
-----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 15.35 14.1900 (5.65) .85
2003 -- 16.28 16.1000 10.18 10.48
2002 -- 15.60 15.5000 7.88 7.91
2001 -- 15.27 15.1900 20.13 12.90
2000 -- 14.28 13.3750 (9.95) 1.64
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 14.59 13.6300 (5.13) 1.20
2003 .01 15.35 15.3000 15.09 13.18
2002 -- 14.38 14.1200 (.17) 6.05
2001(a) (.13) 14.39 14.9900 .87 1.42
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 14.62 13.7400 (4.81) 1.02
2003 -- 15.44 15.4000 9.14 13.74
2002(b) (.14) 14.46 15.0400 1.29 1.98
===================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- --------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
======================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $299,671 1.21% 6.64% 1.21% 6.64% 19%
2003 316,970 1.22 6.80 1.22 6.81 12
2002 304,808 1.25 7.35 1.23 7.36 22
2001 301,785 1.24 7.97 1.23 7.99 16
2000 288,810 1.22 8.27 1.21 8.28 11
NEW JERSEY PREMIUM
INCOME (NNJ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 184,753 1.18 6.23 1.18 6.23 23
2003 195,568 1.20 6.48 1.20 6.48 13
2002 187,393 1.22 6.85 1.22 6.86 14
2001 183,451 1.25 7.14 1.24 7.15 6
2000 171,496 1.24 7.61 1.23 7.63 10
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 95,651 1.20 6.26 .74 6.71 11
2003 100,502 1.19 6.56 .74 7.01 8
2002 94,130 1.24 6.76 .75 7.25 7
2001(a) 94,187 1.05* 3.65* .66* 4.03* 1
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
----------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 65,919 1.25 6.41 .79 6.87 11
2003 69,616 1.23 6.53 .76 7.00 12
2002(b) 65,153 1.07* 3.86* .67* 4.25* --
======================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
---------------------------------------------------------------------
Year Ended 6/30:
2004 $162,000 $25,000 $71,246
2003 162,000 25,000 73,915
2002 162,000 25,000 72,038
2001 162,000 25,000 71,572
2000 162,000 25,000 69,569
NEW JERSEY PREMIUM
INCOME (NNJ)
---------------------------------------------------------------------
Year Ended 6/30:
2004 91,600 25,000 75,424
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
2001 91,600 25,000 75,068
2000 91,600 25,000 71,806
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
---------------------------------------------------------------------
Year Ended 6/30:
2004 48,000 25,000 74,818
2003 48,000 25,000 77,345
2002 48,000 25,000 74,026
2001(a) 48,000 25,000 74,055
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
---------------------------------------------------------------------
Year Ended 6/30:
2004 34,500 25,000 72,767
2003 34,500 25,000 75,446
2002(b) 34,500 25,000 72,213
=====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
74-75 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- -----------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $15.91 $ .98 $ (.98) $(.06) $ -- $ (.06) $ (.92) $(.01) $ (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
2001 14.39 1.23 .16 (.30) -- 1.09 (.91) -- (.91)
2000 15.33 1.25 (.83) (.29) (.02) .11 (.98) (.07) (1.05)
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
2001 13.48 1.07 .95 (.27) -- 1.75 (.79) -- (.79)
2000 14.30 1.06 (.78) (.27) -- .01 (.81) (.02) (.83)
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
2001(a) 14.33 .14 .35 (.03) -- .46 (.15) -- (.15)
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(b) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
====================================================================================================================================
Total Returns
-------------------
Based
Offering on
Costs and Ending Common
Preferred Common Based Share
Share Share Ending on Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
======================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $ -- $14.92 $13.5800 (9.73)% (.38)%
2003 -- 15.91 16.0100 11.98 14.79
2002 -- 14.70 15.1800 6.57 7.34
2001 -- 14.57 15.1300 11.99 7.75
2000 -- 14.39 14.3750 (7.39) .94
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 14.74 13.8400 (7.22) .94
2003 -- 15.65 16.0000 15.09 12.09
2002 -- 14.83 14.7900 13.25 8.88
2001 -- 14.44 13.8700 19.04 13.25
2000 -- 13.48 12.3750 (3.87) .21
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 15.32 14.3900 (5.95) 1.30
2003 .02 16.25 16.4600 18.13 15.95
2002 -- 14.96 14.8900 9.10 9.67
2001(a) (.16) 14.48 14.4900 (2.45) 2.06
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------
Year Ended 6/30:
2004 -- 14.87 13.4800 (8.58) .29
2003 -- 15.90 15.8400 14.38 15.48
2002(b) (.14) 14.64 14.7400 (.73) 3.24
======================================================================================
Ratios/Supplemental Data
--------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------- --------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
==========================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 $243,287 1.23% 6.38% 1.22% 6.39% 17%
2003 258,924 1.27 6.59 1.26 6.60 11
2002 238,926 1.31 7.42 1.30 7.44 34
2001 235,188 1.29 8.40 1.27 8.41 17
2000 231,525 1.26 8.57 1.25 8.59 8
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 232,455 1.18 6.45 1.17 6.46 16
2003 246,604 1.20 6.76 1.19 6.77 19
2002 233,536 1.24 7.28 1.23 7.29 7
2001 227,377 1.25 7.55 1.24 7.57 10
2000 212,325 1.26 7.88 1.25 7.89 14
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 50,549 1.21 6.15 .76 6.60 10
2003 53,591 1.23 6.44 .79 6.88 13
2002 49,306 1.29 7.12 .82 7.59 48
2001(a) 47,723 1.26* 3.51* .87* 3.90* --
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2004 55,370 1.24 5.95 .78 6.40 4
2003 59,202 1.25 6.07 .78 6.53 13
2002(b) 54,481 1.09* 3.77* .70* 4.15* 8
==========================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
---------------------------------------------------------------------
Year Ended 6/30:
2004 $132,000 $25,000 $71,077
2003 132,000 25,000 74,039
2002 132,000 25,000 70,251
2001 132,000 25,000 69,543
2000 132,000 25,000 68,849
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------
Year Ended 6/30:
2004 118,100 25,000 74,207
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
2001 118,100 25,000 73,132
2000 118,100 25,000 69,946
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------
Year Ended 6/30:
2004 25,000 25,000 75,549
2003 25,000 25,000 78,591
2002 25,000 25,000 74,306
2001(a) 25,000 25,000 72,723
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------
Year Ended 6/30:
2004 28,500 25,000 73,570
2003 28,500 25,000 76,932
2002(b) 28,500 25,000 72,790
=====================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income at net asset value,
reinvested capital gains distributions at net asset value, if any, and
changes in Common share net asset value per share. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 27, 2001 (commencement of operations) through June 30,
2001.
(b) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
76-77 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Funds is currently set
at seven. None of the board members who are not "interested" persons of the
Funds has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger (1) Chairman of 1994 Chairman and Director (since 1996) of Nuveen Investments, 145
3/28/49 the Board Inc. and Nuveen Investments, LLC; Director (since 1992) and
333 W. Wacker Drive and Trustee Chairman (since 1996) of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Chairman and Director (since
1997) of Nuveen Asset Management, Inc.; Director (since
1996) of Institutional Capital Corporation; Chairman and
Director (since 1999) of Rittenhouse Asset Management, Inc.;
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 145
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (1989) as Senior Vice President of The Northern 145
7/29/34 Trust Company; Director, Community Advisory Board for
333 W. Wacker Drive Highland Park and Highwood, United Way of the North
Chicago, IL 60606 Shore (since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 145
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire & Casualty Company; formerly Director, Federal Reserve
Chicago, IL 60606 Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 145
3/16/48 Business at the University of Connecticut (since 2003);
333 W. Wacker Drive previously Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003);
Director, Credit Research Center at Georgetown University;
Director of Xerox Corporation (since 2004).
78
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Senior Partner and Chief Operating Officer, Miller-Valentine 145
9/24/44 Group, Vice President, Miller-Valentine Realty, a construction
333 W. Wacker Drive company; Chair, Miami Valley Hospital; Chair, Dayton
Chicago, IL 60606 Development Coalition; formerly, Member, Community
Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 145
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994)
Chicago, IL 60606
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 145
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (since 2002), General Counsel and
Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.;
Managing Director (since 2002), Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
2000), of Nuveen Asset Management, Inc. Assistant
Secretary of Nuveen Investments, Inc. (since 1994); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002); Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Managing
Director, Associate General Counsel and Assistant Secretary
of Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 145
2/3/66 and Assistant President (since 2000), previously, Associate of Nuveen
333 W. Wacker Drive Secretary Investments, LLC.
Chicago, IL 60606
79
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999), 145
11/28/67 and Treasurer prior thereto, Assistant Vice President (since 1997); Vice
333 W. Wacker Drive President and Treasurer of Nuveen Investments, Inc. (since
Chicago, IL 60606 1999); Vice President and Treasurer of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp (since 1999); Vice
President and Treasurer of Nuveen Asset Management, Inc.
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 2000 Vice President (since 2002) and Assistant General Counsel 145
9/24/64 and Secretary (since 1998); formerly, Assistant Vice President (since 1998)
333 W. Wacker Drive of Nuveen Investments, LLC; Vice President (since 2002)
Chicago, IL 60606 and Assistant Secretary (since 1998), formerly Assistant
Vice President of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004) formerly, Vice President of 145
10/24/45 Nuveen Investments, LLC; Managing Director (since 2004)
333 W. Wacker Drive formerly, Vice President (since 1998) of Nuveen Advisory
Chicago, IL 60606 Corp. and Nuveen Institutional Advisory Corp.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002) of Nuveen Investments, 145
3/2/64 LLC; Managing Director (since 2001), formerly Vice President
333 W. Wacker Drive of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp. (since 1995); Managing Director of Nuveen Asset
Management, Inc. (since 2001); Vice President of Nuveen
Investment Advisers Inc. (since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 145
5/31/54 and Controller of Nuveen Investments, LLC and Vice President and Funds
333 W. Wacker Drive Controller (since 1998) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 145
3/22/63 LLC, previously Assistant Vice President (since 1999);
333 W. Wacker Drive prior thereto, Associate of Nuveen Investments, LLC;
Chicago, IL 60606 Certified Public Accountant.
80
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(3) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President (since 1999), previously, Assistant Vice 145
8/27/61 President (since 1993) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 145
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.; Assistant Secretary of Nuveen
Investments, Inc. and (since 1997) Nuveen Asset Management,
Inc.; Vice President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and Assistant Secretary of
Nuveen Investments Advisers Inc. (since 2002); Assistant
Secretary of NWQ Investment Management Company, LLC
(since 2002).
------------------------------------------------------------------------------------------------------------------------------------
Edward F. Neild, IV Vice President 1996 Managing Director (since 2002) of Nuveen Investments, LLC; 145
7/7/65 Managing Director (since 1997), formerly Vice President
333 W. Wacker Drive (since 1996) of Nuveen Advisory Corp. and Nuveen Institutional
Chicago, IL 60606 Advisory Corp.; Managing Director of Nuveen Asset Management,
Inc. (since 1999). Chartered Financial Analyst.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member of
the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
81
Reinvest Automatically
EASILY AND CONVENIENTLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit,nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
the dividends or distributions awaiting reinvestment. Because the market price
may increase before purchases are completed, the average purchase price per
share may exceed the market price at the time of valuation, resulting in the
acquisition of fewer shares than if the dividend or distribution had been paid
in shares issued by the Fund. A pro rata portion of any applicable brokerage
commissions on open market purchases will be paid by Plan participants. These
commissions usually will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
82
Other Useful
INFORMATION
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
GLOSSARY OF TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (the date the
security comes due) by the market value of the security. This figure does not
account for the likelihood of prepayments or the exercise of call provisions.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond or fund's
duration, the more the price of the bond or fund will change as interest rates
change. Leverage-adjusted duration takes into account the leveraging process for
a Fund and therefore is generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A fund's NAV is calculated by subtracting the liabilities
of the fund from its total assets and then dividing the remainder by the number
of shares outstanding. Fund NAVs are calculated at the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
BOARD OF DIRECTORS/
TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the fiscal year ended June 30, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
83
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing $100 billion in assets, Nuveen Investments offers access to a number of
different asset classes and investing solutions through a variety of products.
Nuveen Investments markets its capabilities under four distinct brands: Nuveen,
a leader in tax-free investments; NWQ, a leader in value-style equities;
Rittenhouse, a leader in growth-style equities; and Symphony, a leading
institutional manager of market-neutral alternative investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Learn more
about Nuveen Funds at
WWW.NUVEEN.COM/ETF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-B-0604D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted
a code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. The registrant has posted such code of
ethics on its website at www.nuveen.com/etf.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of directors determined that the registrant had at least
one "audit committee financial expert" (as defined in Item 3 of Form N-CSR)
serving on its Audit Committee. The registrant's audit committee financial
expert was William E. Bennett, who was "independent" for purposes of Item 3 of
Form N-CSR.
Although Mr. Bennett served as the audit committee financial expert for the
majority of the reporting period, he unexpectedly resigned from the Board
effective April 30, 2004. Since that time, the Audit Committee determined that
Jack B. Evans, the Chairman of the Audit Committee, qualifies as an audit
committee financial expert and recommended to the full Board that he be
designated as such. On July 26, 2004, the full Board voted to so designate Mr.
Evans. Accordingly for this reporting period, the registrant did not have a
designated "audit committee financial expert" from April 30, 2004 to the end of
the reporting period on June 30, 2004.
Mr. Bennett was formerly Executive Vice President and Chief Credit Officer of
First Chicago Corporation and its principal subsidiary, The First National Bank
of Chicago. As part of his role as Chief Credit Officer, Mr. Bennett set policy
as to accrual of assets/loans; designated performing/non-performing assets; set
the level of reserves against the credit portfolo; and determined the carrying
value of credit related assets and exposure. Among other things, Mr. Bennett was
also responsible for the oversight of the internal analysis function including
setting ground rules for the review and preparation of financial analysis and
financial statements for use in making credit and risk decisions for clients.
Mr. Bennett has significant experience reviewing, analyzing and evaluating
financial statements of domestic and international companies in a variety of
industries with complex accounting issues.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen New Jersey Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund during the fiscal year in which the services are
provided; (B) the Fund did not recognize the services as non-audit services at
the time of the engagement; and (C) the services are promptly brought to the
Audit Committee's attention, and the Committee (or its delegate) approves the
services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 8,677 $ 0 $ 1,212 $ 2,500
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003 $ 7,784 $ 0 $ 355 $ 2,300
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" were billed for professional services for tax advice, tax
compliance and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Advisory Corp. ("NAC" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAC ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The table also shows the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2003 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved N/A N/A N/A
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2004 $ 3,712 $ 0 $ 0 $ 3,712
June 30, 2003 $ 2,655 $ 0 $ 0 $ 2,655
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable at this time.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to this registrant.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because posted on registrant's website at www.nuveen.com/etf.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: September 9, 2004
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date: September 9, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: September 9, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.