UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-6265
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Nuveen Pennsylvania Investment Quality Municipal Fund
------------------------------------------------------------------------------
(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, 2006
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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, 2006
Nuveen Investments
Municipal Exchange-Traded
Closed-End 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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IT'S NOT WHAT YOU EARN,
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Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the twelve month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
Municipal bonds can be an important building block in a well balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal
"PORTFOLIO DIVERSIFICATION IS A RECOGNIZED WAY TO TRY TO REDUCE SOME OF THE RISK
THAT COMES WITH INVESTING."
bond investment like your Fund may help you achieve and benefit from greater
portfolio diversification. Portfolio diversification is a recognized way to try
to reduce some of the risk that comes with investing. I encourage you to contact
your personal financial advisor who can help explain this important investment
strategy.
Nuveen Investments is pleased to offer you choices when it comes to receiving
your fund reports. In addition to mailed print copies, you can also sign up to
receive future Fund reports and other Fund information by e-mail and the
Internet. The inside front cover of this report contains information on how you
can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
August 11, 2006
Nuveen New Jersey and Pennsylvania Municipal Exchange-Traded Closed-End Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
COMMENTS
Portfolio manager Paul Brennan reviews economic and municipal market conditions
at both the national and state levels, key investment strategies, and the annual
performance of these Nuveen New Jersey and Pennsylvania Funds. Paul, who has 15
years of investment experience, has managed these eight Funds since 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED JUNE 30, 2006?
During this reporting period, we saw an increase in interest rates across the
yield curve, although rates at the longer end of the curve generally remained
more stable than short-term rates during much of the period. Between July 1,
2005 and June 30, 2006, the Federal Reserve announced eight increases of 0.25%
each in the fed funds rate, raising this short-term target by 200 basis points
from 3.25% to 5.25%. In all, the Fed has implemented 17 consecutive
quarter-point hikes in the fed funds rate since June 2004, bringing the target
rate to its highest level since March 2001. By comparison, the yield on the
benchmark 10-year U.S. Treasury note ended June 2006 at 5.14%, up from 3.94% 12
months earlier, while the yield on the Bond Buyer 25 Revenue Bond Index, a
widely followed measure of longer-term municipal market rates, was 5.31% at the
end of June 2006, an increase of 54 basis points from the beginning of July
2005. As interest rates increased, bond valuations generally declined, and the
yield curve flattened as shorter-term rates approached the levels of longer-term
rates.
Even with rising interest rates, record energy prices, and a housing market that
signaled it could finally be softening, the economy generally remained
resilient, with a strong overall growth pattern. After expanding at a rate of
4.2% in the third quarter of 2005, the U.S. gross domestic product (GDP) slowed
to 1.8% in the fourth quarter of 2005, then rebounded sharply to 5.6% in the
first quarter of 2006 (all GDP numbers are annualized). In the second quarter of
2006, the GDP moderated to 2.5%, with the deceleration reflecting downturns in
consumer and federal government spending as well as the first decrease in
business equipment investment in three years. The overall jobs picture remained
positive, with national unemployment at 4.6% in June 2006, down from 5.0% in
June 2005. However, the markets continued to keep a close eye on inflation
trends, with the year-over-year increase in the Consumer Price Index registering
4.3% as of June 2006. During the first six months of 2006, the increase in
inflation was driven mainly by higher energy and transportation costs, rising at
a rate of 4.7% annualized, compared with 3.4% for all of 2005.
4
Over the 12 months ended June 2006, municipal bond supply nationwide remained
strong, as $403.6 billion in new securities came to market, up 6% from the
previous 12 months. However, following record levels of issuance in calendar
year 2005, we saw a drop-off in new supply during the first six months of 2006,
when municipal issuance totaled $179.3 billion, off 15% from the same period in
2005. A major factor in 2006's decline in supply was the sharp reduction in
pre-refunding volume, which dropped 52% from last year's levels as rising
interest rates made advance refundings less economically attractive. Overall,
demand for municipal bonds, especially those offering higher yields, continued
to be strong and broad-based, with retail investors, property and casualty
insurance companies, and hedge funds all participating in the market.
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW JERSEY AND PENNSYLVANIA
DURING THIS PERIOD?
New Jersey's diverse economy is closely tied to that of New York City, and the
state has benefited from an influx of jobs from the city across the Hudson
River. The state is also home to the Port of Elizabeth-Newark, the East Coast's
largest seaport, which handles about one third of the country's ocean-going
trade. Despite these positives, New Jersey's economic growth ranked 36th among
the 50 states in 2005, diverging further from national trends in recent months.
Weakness in the state's pharmaceutical and telecommunications industries as well
as high business costs and slow population growth have led to rising
unemployment in the state. In June 2006, New Jersey's jobless rate was 4.9%,
above the national average of 4.6% for the same period and up from 4.3% in June
2005. For fiscal 2006, the state's $28 billion budget included reductions in the
property tax rebate program, cuts in spending by state-level departments, and
increases in funding for schools and indigent care. A plan to refinance New
Jersey's tobacco debt was postponed by a legal challenge charging that this
represented borrowing for operations, a practice prohibited by a 2004 court
decision. In March 2006, the $31 billion fiscal 2007 budget proposed closing a
projected $4.5 billion shortfall in part by raising the state sales tax from 6%
to 7%. This proposal was opposed by the state assembly, and as of June 30, 2006,
New Jersey appeared unlikely to adopt the 2007 budget by the legally mandated
July 1 deadline. (On July 8, 2006, a $30 billion compromise spending plan ended
the state budget impasse after a week long shutdown of nonessential government
services in the state.) In July 2005, Standard & Poor's raised its rating on New
Jersey general obligation debt to AA from AA-. Moody's continued to maintain its
rating of Aa3, and both
5
agencies listed their outlooks as stable. For the 12 months ended June 30, 2006,
issuance in New Jersey totaled $13.3 billion, a decrease of 21% from the
previous 12 months. During the first half of 2006, issuance fell off even more
sharply to $5.5 billion, down 41% from the first half of 2005. Some of this
decline was due to the fact that the issuance numbers for the first half of 2005
were inflated by several large deals at the state level, which skews comparisons
to a certain degree.
Due to the commonwealth's active promotion of new growth industries, the
Pennsylvania economy has diversified into new areas, with health and education
now comprising the largest sector in terms of employment. Over the next few
years, Pennsylvania anticipates issuing an additional $2 billion of debt
earmarked for economic development, and the governor has proposed creating a
medical and biotechnology trust fund by securitizing 10% of Pennsylvania's
revenues under the 1998 master tobacco settlement agreement. However,
Pennsylvania continued to be more reliant on manufacturing than the nation as a
whole. As that sector remained in decline, Pennsylvania's manufacturing job
losses since the end of 2004 mounted to 15,000, behind only Michigan and New
York. As of June 2006, unemployment in Pennsylvania was 4.7%, down from 5.0% in
June 2005. For fiscal 2006, the $24 billion state budget, adopted in July 2005,
was balanced and contained no major tax hikes. As of June 2006, Moody's and S&P
maintained their ratings on Pennsylvania general obligation debt at Aa2/AA.
During the 12 months ended June 30, 2006, issuance in the commonwealth totaled
$17.5 billion, an increase of 9% over that of the previous 12-month period. For
January-June 2006, however, Pennsylvania saw issuance drop 17% compared with the
first six months of 2005, with $7.8 billion in new municipal paper. According to
Moody's, Pennsylvania's debt levels remained moderate, with both debt per capita
and debt per capita as a percentage of personal income near national medians.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As interest rates rose and the yield curve flattened during this 12-month
period, we continued to emphasize careful duration1 management, part of which
included efforts to more closely align the duration and yield curve positioning
of these Funds. Strategically, our purchase activity focused on attractively
priced bonds maturing in 10 to 20 years. As the curve continued to flatten and
the incremental yield on bonds with longer maturi-
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
6
ties decreased, we believed that bonds in the 10-year to 20-year range of the
curve generally offered reward opportunities more commensurate with their risk
levels. However, at various times during this 12-month period, we found that
bonds available in longer parts of the yield curve offered more favorable
characteristics, and we actively pursued these opportunities.
To help us maintain the Funds' durations within our preferred strategic range,
we were also selectively selling holdings with shorter durations, such as bonds
priced to short call dates, bonds that were currently callable, and short-dated
pre-refunded bonds. Selling these shorter duration bonds and reinvesting further
out in the 10-year to 20-year part of the yield curve also helped to improve the
Funds' overall call protection profile.
With yields rising during this period, we also found opportunities to sell a few
of our holdings that were purchased when yields were lower and replace them with
similar, newer credits that yielded comparatively more. This process allowed us
to maintain the Funds' current portfolio characteristics while strengthening
their income potential.
In looking for potential purchase candidates, we kept an opportunistic eye
toward all types of issuance that we believed could add value to the Funds'
portfolios. Overall, portfolio activity was relatively light. As previously
mentioned, while Pennsylvania issuance was up for the period as a whole, both
states saw declines in municipal supply during the first six months of 2006,
with New Jersey experiencing the sharper drop-off. In general, however, these
declines did not affect implementation of the strategies we had planned for
these Funds. Since both New Jersey and Pennsylvania are high-quality states,
much of the new supply was highly rated and/or insured, and the majority of our
new purchases were higher-rated credits (AAA and AA), primarily those issued by
essential services sectors.
During this period, we also took advantage of opportunities to strategically
increase the Pennsylvania Funds' exposure to AA rated housing bonds issued by
the commonwealth, which benefited these Funds' performance for the period. Even
though the housing sector performed well over the past 12 months, we think this
sector continues to have performance potential. Long-term, we believe that
housing bonds make excellent holdings because of the income they provide and
their defensive performance characteristics in a rising rate environment.
7
We also continued to emphasize maintaining the Funds' weightings of bonds rated
BBB or lower and nonrated bonds. However, tighter supply in New Jersey,
especially during the first half of 2006, meant fewer interesting lower-rated
credit opportunities in that market. Overall, the New Jersey and Pennsylvania
Funds continued to have good exposure to this asset class.
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 6/30/06
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NEW JERSEY FUNDS
--------------------------------------------------------------------------------
NQJ -0.31% 6.27% 6.35%
--------------------------------------------------------------------------------
NNJ -1.04% 5.97% 6.71%
--------------------------------------------------------------------------------
NXJ -0.05% 6.68% NA
--------------------------------------------------------------------------------
NUJ 0.25% NA NA
--------------------------------------------------------------------------------
Lipper New Jersey
Municipal Debt Funds
Average2 0.82% 6.48% 6.44%
--------------------------------------------------------------------------------
PENNSYLVANIA FUNDS
--------------------------------------------------------------------------------
NQP -1.34% 6.41% 5.81%
--------------------------------------------------------------------------------
NPY -0.80% 6.44% 6.72%
--------------------------------------------------------------------------------
NXM -0.01% 7.78% NA
--------------------------------------------------------------------------------
NVY -0.46% NA NA
--------------------------------------------------------------------------------
Lipper Pennsylvania
Municipal Debt Funds
Average2 0.32% 6.85% 6.48%
--------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index3 0.88% 5.05% 5.79%
--------------------------------------------------------------------------------
*Annualized.
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
2 The Lipper New Jersey Municipal Debt Funds category average is calculated
using the returns of all exchange-traded closed-end funds in this category
for each period as follows: 1 year, 13; 5 years, 9; and 10 years, 6. The
Lipper Pennsylvania Municipal Debt Funds category average is calculated
using the returns of all exchange-traded closed-end funds for each period
as follows: 1 year, 9; 5 years, 7; and 10 years, 4. 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
For the 12 months ended June 30, 2006, the total returns on net asset value
(NAV) for the New Jersey and Pennsylvania Funds underperformed the return on the
Lehman Brothers Municipal Bond Index. The four New Jersey Funds trailed the
average return for their Lipper New Jersey peer group, and the performance of
the four Pennsylvania Funds lagged the Lipper Pennsylvania average.
The major factor impacting the annual performance of these Funds, especially in
relation to that of the unleveraged Lehman Brothers Municipal Bond Index, was
the use of financial leverage. Although leveraging provides opportunities for
additional income and total returns for common shareholders when interest rates
fall or remain consistently low, this benefit is reduced when interest rates
rise. With the increases in interest rates during this period, the decline in
value of the bonds in the underlying portfolios of these Funds was exacerbated
by the effects of leveraging. In addition, the benefits of leveraging are tied
in part to the short-term rates leveraged Funds pay their MuniPreferred(R)
shareholders. During periods of low short-term rates, these Funds generally pay
lower dividends to their MuniPreferred shareholders, which can leave more
earnings to support common share dividends. Conversely, when short-term interest
rates rise, as they did during this reporting period, the Funds' borrowing costs
also rise, impacting the Funds' income streams and total returns. However, we
remain convinced that, over the long term, the use of financial leverage should
work to the benefit of the Funds. This is demonstrated by the five-year and
ten-year return performance--both absolute and relative to that of the Lehman
index--of the older Funds in this report.
Other influences on the Funds' total returns for this period included market
factors such as rising interest rates and credit spread tightening as well as
fund-specific factors such as yield curve and duration positioning, allocations
to lower-rated credits, sector weightings, and pre-refunding activity. In
general, the differences in yield curve and duration positioning and varying
exposures to lower-rated credits among these Funds were the major factors behind
differences in performance for this 12-month period.
As the yield curve continued to flatten over the course of this period, bonds in
the Lehman Brothers municipal index with maturities between 6 and 12 years
generally were the most adversely impacted by changes in the curve,
underperforming both very short bonds (those with maturities between 1 and 2
years) and longer bonds (those with
9
maturities of at least 22 years) by approximately 170 basis points. Overall, the
New Jersey Funds were slightly better positioned across the yield curve during
this period than the Pennsylvania Funds, which had less exposure to the shortest
part of the curve that performed well.
With bonds rated BBB or lower and nonrated bonds generally outperforming other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value and tightened credit
spreads. As Dividend Advantage Funds, NXJ, NUJ, NXM, and NVY can invest a
portion of their assets in subinvestment-grade bonds (those rated BB and lower),
which was particularly beneficial to performance during this period. As of June
30, 2006, the New Jersey Funds had weightings of BBB, subinvestment grade, and
nonrated bonds ranging from 12% in NNJ, 14% in NXJ, and 15% in NQJ to 21% in
NUJ, while the Pennsylvania Funds' allocations totaled 6% in NQP, 11% in NPY,
15% in NXM, and 17% in NVY. NUJ's overall heavier weighting to lower credit
quality securities helped its performance, while NQP, which cannot invest in
subinvestment-grade bonds, had the smallest exposure to lower credit categories
among these Funds, detracting from its 12-month performance.
Among the lower-rated holdings making contributions to the Funds' total returns
for this period were industrial development and resource recovery bonds, health
care (including hospitals), and tobacco, all of which ranked among the top
performing revenue sectors in the Lehman Brothers municipal index. In
Pennsylvania, lower-rated bonds issued for higher education also performed well
during this period, and the Funds benefited from their heavier weightings in
this area of the market.
Housing bonds were also among some of the best performing credits in the Funds'
portfolios, as rising interest rates lessened the incidence and impact of
prepayments and bond calls. Both multifamily and single-family housing bonds
were positive contributors across all of these Funds.
10
During this period, we continued to see a few advance refundings4, which
benefited the Funds through price appreciation and enhanced credit quality.
While advance refundings generally contributed to performance for this 12-month
period, the rising interest rate environment meant that the Funds' holdings of
previously pre-refunded bonds, especially those with five years or more to
maturity, tended to underperform the general municipal market. Other categories
that lagged the overall market included general obligation credits and zero
coupon bonds.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
JUNE 30, 2006?
We continued to believe that maintaining strong credit quality was an important
requirement. As of June 30, 2006, all of these Funds continued to offer
excellent credit quality, with allocations of bonds rated AAA/U.S. guaranteed
and AA ranging from 66% in NUJ to 74% in NXM, 78% in NXJ, and 79% in NVY to 81%
in NQJ, 84% in NNJ and NPY, and 89% in NQP.
As of June 30, 2006, potential call exposure for the period from July 2006
through the end of 2007 ranged from zero in NVY, 1% in NQP, 3% in NXM, and 6% in
NUJ to 10% in NQJ, NXJ, and NNJ and 11% in NPY. The number of actual bond calls
in all of these Funds depends largely on future market interest rates.
4 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
11
Dividend and Share Price
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. During
periods of rising short-term interest rates, as was the case during this
reporting period, the Funds' borrowing costs also rise, reducing the extent of
the benefits of leveraging. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds generally offering lower yields, especially in the older
Funds. These factors resulted in one monthly dividend reduction in NVY, two
reductions in NXJ, three in NNJ, NUJ, and NXM, and four in NQJ, NQP, and NPY
over the 12-month period ended June 30, 2006.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and net ordinary income
distributions at the end of December 2005, as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQJ $0.2403 --
--------------------------------------------------------------------------------
NNJ $0.3089 $0.0007
--------------------------------------------------------------------------------
NXJ $0.1034 --
--------------------------------------------------------------------------------
NUJ $0.0940 $0.0001
--------------------------------------------------------------------------------
NQP $0.1058 $0.0005
--------------------------------------------------------------------------------
NPY $0.2137 $0.0023
--------------------------------------------------------------------------------
NXM $0.1015 --
--------------------------------------------------------------------------------
NVY $0.0976 --
--------------------------------------------------------------------------------
These distributions, which represented an important part of the Funds' total
returns for this period, were generated by bond calls and sales of appreciated
securities. This had a slight negative impact on the earning power per common
share of these Funds and was a minor factor in the common share dividend
reductions noted above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
12
investment income as dividends to shareholders. As of June 30, 2006, NNJ, NXJ,
NUJ, and NXM had positive UNII balances for both financial statement and tax
purposes. NQJ, NQP, NPY, and NVY had negative UNII balances for financial
statement purposes and positive UNII balances for tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
6/30/06 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
-----------------------------------------------------------------------
NQJ -5.71% -1.79%
-----------------------------------------------------------------------
NNJ -4.26% -2.12%
-----------------------------------------------------------------------
NXJ -2.25% +0.32%
-----------------------------------------------------------------------
NUJ +0.20% +2.77%
-----------------------------------------------------------------------
NQP -11.96% -7.84%
-----------------------------------------------------------------------
NPY -8.86% -3.47%
-----------------------------------------------------------------------
NXM +1.00% +4.14%
-----------------------------------------------------------------------
NVY -5.16% -3.71%
-----------------------------------------------------------------------
13
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 6%
A 4%
BBB 13%
BB or Lower 1%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.073
Aug 0.073
Sep 0.069
Oct 0.069
Nov 0.069
Dec 0.0655
Jan 0.0655
Feb 0.0655
Mar 0.062
Apr 0.062
May 0.062
Jun 0.0575
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.4
15.39
15.43
15.43
15.4
15.3
15.34
15.26
15.28
15.26
15.26
15.29
15.32
15.34
15.39
15.36
15.44
15.44
15.49
15.58
15.58
15.5
15.43
15.39
15.48
15.47
15.6
15.42
15.59
15.49
15.38
15.4
15.41
15.33
15.4
15.49
15.45
15.54
15.47
15.58
15.58
15.65
15.56
15.64
15.67
15.75
15.66
15.63
15.74
15.77
15.85
15.82
15.64
15.7
15.41
15.4
15.46
15.4
15.36
15.3
15.21
15.16
15.27
15.28
15.3
15.29
15.17
15.14
15
15.02
14.91
14.96
14.78
14.66
14.6
14.55
14.44
14.31
14.41
14.45
14.48
14.43
14.28
14.37
14.37
14.46
14.48
14.52
14.44
14.42
14.35
14.4
14.38
14.29
14.29
14.15
14.18
14.18
14.15
14.17
14.19
14.17
14.15
14.19
14.22
14.29
14.41
14.38
14.36
14.31
14.4
14.4
14.45
14.45
14.4
14.1
14.25
14.19
14.18
14.14
14
13.89
13.96
14
14.01
14.13
14.14
14.11
14.11
14.23
14.32
14.3
14.44
14.63
14.6
14.55
14.57
14.63
14.69
14.8
14.81
14.75
14.67
14.73
14.61
14.67
14.62
14.8
14.95
14.94
14.92
14.81
14.8
14.9
15
14.86
14.85
14.84
14.87
14.93
15.05
15.07
15.07
15.05
15.15
15.11
15.07
15.07
15.3
15.3
15.21
14.93
14.77
14.74
14.9
15
14.78
14.73
14.7
14.87
14.8
14.75
14.73
14.78
14.75
14.72
14.5
14.55
14.51
14.6
14.65
14.8
14.7
14.72
14.8
14.77
14.76
14.7
14.73
14.55
14.57
14.65
14.65
14.7
14.65
14.62
14.56
14.64
14.6
14.63
14.63
14.74
14.74
14.76
14.73
14.65
14.69
14.63
14.75
14.61
14.48
14.38
14.44
14.36
14.42
14.69
14.59
14.54
14.49
14.5
14.47
14.42
14.4
14.46
14.39
14.31
14.25
14.11
14.07
14.08
14.01
13.96
13.81
13.85
13.83
13.8
13.82
13.77
13.65
13.67
13.63
13.63
13.67
13.65
6/30/06 13.7
FUND SNAPSHOT
------------------------------------
Common Share Price $13.70
------------------------------------
Common Share
Net Asset Value $14.53
------------------------------------
Premium/(Discount) to NAV -5.71%
------------------------------------
Market Yield 5.04%
------------------------------------
Taxable-Equivalent Yield1 7.47%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $297,539
------------------------------------
Average Effective
Maturity on Securities (Years) 17.12
------------------------------------
Leverage-Adjusted Duration 8.26
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -3.62% -0.31%
------------------------------------
5-Year 4.37% 6.27%
------------------------------------
10-Year 5.74% 6.35%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 18.3%
------------------------------------
Transportation 17.3%
------------------------------------
Education and Civic
Organizations 14.8%
------------------------------------
Health Care 12.6%
------------------------------------
U.S. Guaranteed 10.1%
------------------------------------
Tax Obligation/General 8.2%
------------------------------------
Water and Sewer 5.1%
------------------------------------
Other 13.6%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.2403 per share.
14
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 77%
AA 7%
A 4%
BBB 10%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.071
Aug 0.071
Sep 0.0675
Oct 0.0675
Nov 0.0675
Dec 0.064
Jan 0.064
Feb 0.064
Mar 0.064
Apr 0.064
May 0.064
Jun 0.0605
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.89
15.76
15.8
15.8
15.8
15.6
15.64
15.5
15.45
15.48
15.45
15.44
15.38
15.42
15.44
15.48
15.5
15.57
15.64
15.7
15.7
15.75
15.79
15.72
15.75
15.82
15.72
15.53
15.74
15.6
15.56
15.58
15.69
15.6
15.61
15.6
15.59
15.67
15.69
15.76
15.79
15.95
16
15.98
15.89
15.81
15.7
15.66
15.65
15.64
15.68
15.6
15.53
15.48
15.47
15.4
15.32
15.35
15.53
15.32
15.3
15.06
15.13
15.09
15.18
15.26
15.15
15.12
14.95
14.9
14.84
14.84
14.72
14.82
14.69
14.6
14.41
14.4
14.47
14.63
14.69
14.61
14.69
14.78
14.74
14.74
14.74
14.8
15.28
15.12
15.21
15.16
14.95
14.83
14.81
14.9
14.82
14.78
14.79
14.86
14.81
14.88
14.76
14.81
14.81
14.73
14.7
14.69
14.75
14.74
14.82
14.74
14.8
14.78
14.78
14.36
14.45
14.44
14.38
14.4
14.38
14.29
14.29
14.35
14.27
14.34
14.41
14.46
14.46
14.63
14.73
14.78
15.01
15.11
15.04
14.92
14.95
14.83
14.62
14.7
14.74
14.93
15
15.23
15.18
15.14
15.24
15.25
15.35
15.5
15.43
15.38
15.3
15.31
15.42
15.39
15.5
15.44
15.45
15.36
15.44
15.65
15.61
15.55
15.48
15.44
15.37
15.28
15.5
15.53
15.51
15.5
15.5
15.3
15.45
15.44
15.41
15.35
15.25
15.35
15.26
15.24
15.24
15.26
15.07
14.84
14.77
14.9
15.08
15.01
15.13
15.04
14.96
15.06
15.1
15.08
14.95
15.07
15
15.26
14.91
14.9
14.84
14.89
14.97
14.64
14.73
14.75
14.83
14.74
14.74
14.79
14.75
14.78
14.82
14.88
14.81
14.8
14.7
14.67
14.57
14.53
14.6
14.45
14.53
14.6
14.49
14.37
14.37
14.47
14.35
14.57
14.6
14.85
14.75
14.7
14.67
14.69
14.71
14.6
14.55
14.55
14.4
14.48
14.42
14.58
14.7
14.39
14.31
14.25
14.15
14.12
14.19
13.99
6/30/06 14.16
FUND SNAPSHOT
------------------------------------
Common Share Price $14.16
------------------------------------
Common Share
Net Asset Value $14.79
------------------------------------
Premium/(Discount) to NAV -4.26%
------------------------------------
Market Yield 5.13%
------------------------------------
Taxable-Equivalent Yield1 7.60%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $178,199
------------------------------------
Average Effective
Maturity on Securities (Years) 15.78
------------------------------------
Leverage-Adjusted Duration 8.58
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -3.36% -1.04%
------------------------------------
5-Year 5.29% 5.97%
------------------------------------
10-Year 7.26% 6.71%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 21.7%
------------------------------------
Transportation 14.6%
------------------------------------
Education and Civic
Organizations 12.8%
------------------------------------
U.S. Guaranteed 10.8%
------------------------------------
Tax Obligation/General 10.1%
------------------------------------
Health Care 10.0%
------------------------------------
Water and Sewer 9.2%
------------------------------------
Other 10.8%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.5%. When comparing this Fund to 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 2005 of $0.3089 and $0.0007 per share,
respectively.
15
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 3%
A 8%
BBB 12%
BB or Lower 1%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0715
Aug 0.0715
Sep 0.0715
Oct 0.0715
Nov 0.0715
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.068
Apr 0.068
May 0.068
Jun 0.0645
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.56
15.2
15.22
15.28
15.38
15.29
15.32
15.25
15.42
15.39
15.3
15.43
15.36
15.38
15.27
15.43
15.61
15.62
15.42
15.39
15.39
15.42
15.5
15.4
15.46
15.34
15.24
15.16
15.29
15.29
15.22
15.22
15.33
15.05
15.15
15.17
15.31
15.3
15.3
15.4
15.4
15.48
15.57
15.44
15.43
15.43
15.23
15.04
15.09
15.32
15.39
15.29
15.38
15.17
15.21
15.19
15.1
14.91
15.09
15.07
14.91
15.14
15.1
15.08
15.25
15.47
15.38
15.4
15.23
15.3
15.27
15.2
15
14.75
14.76
14.76
14.96
14.94
15
14.98
14.61
14.85
14.7
14.6
14.63
14.58
14.66
14.73
14.68
14.58
14.7
14.7
14.74
14.55
14.5
14.55
14.49
14.49
14.54
14.38
14.36
14.45
14.3
14.48
14.49
14.7
15.15
15
15.2
15.1
15.35
15.16
15.1
15.12
15.1
15
15.2
15.04
14.9
14.88
14.85
14.78
14.9
14.82
14.75
14.95
14.94
15.25
15.25
15.21
15.25
15.2
15.2
15.14
15.35
15.32
15.45
15.48
15.35
15.27
15.09
15.35
15.03
15.28
15.31
15.62
15.91
15.84
15.8
15.9
15.57
15.43
15.51
15.42
15.55
15.41
15.41
15.65
15.65
15.68
16.03
16.55
16.5
16.49
16.01
15.77
15.77
15.77
15.95
15.65
15.48
15.55
15.59
15.58
15.86
15.99
15.78
15.65
15.52
15.5
15.45
15.45
15.48
15.2
15.12
15.26
15.26
15.27
15.53
15.27
15.52
15.5
15.7
15.6
15.26
15
15.06
15.4
15.2
15.59
15.4
15.3
15.37
15.33
15.7
15.25
15.6
15.7
15.55
15.23
15.23
15.15
15.25
15.34
15.34
15.35
15.35
15.3
15.3
15.35
15.26
15.25
15.24
15.15
15.1
15.23
15.11
14.94
14.7
15.04
14.91
14.75
14.85
14.99
14.99
14.75
14.85
14.95
14.95
14.98
14.97
14.92
14.68
14.67
14.67
14.57
14.67
14.64
14.56
14.37
14.4
14.23
14.4
14.42
6/30/06 14.35
FUND SNAPSHOT
------------------------------------
Common Share Price $14.35
------------------------------------
Common Share
Net Asset Value $14.68
------------------------------------
Premium/(Discount) to NAV -2.25%
------------------------------------
Market Yield 5.39%
------------------------------------
Taxable-Equivalent Yield1 7.99%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $96,378
------------------------------------
Average Effective
Maturity on Securities (Years) 17.06
------------------------------------
Leverage-Adjusted Duration 8.07
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.78% -0.05%
------------------------------------
5-Year 5.35% 6.68%
------------------------------------
Since
Inception 5.25% 6.62%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.2%
------------------------------------
Transportation 16.7%
------------------------------------
Water and Sewer 15.3%
------------------------------------
Education and Civic
Organizations 14.8%
------------------------------------
U.S. Guaranteed 13.9%
------------------------------------
Health Care 11.4%
------------------------------------
Other 10.7%
------------------------------------
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 32.5%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.1034 per share.
16
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 63%
AA 3%
A 13%
BBB 17%
BB or Lower 2%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0765
Aug 0.0765
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.069
Apr 0.069
May 0.069
Jun 0.066
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 16
16
16.25
16.2
16.1
15.98
15.95
15.48
15.52
15.55
15.65
15.81
16.05
15.9
15.77
15.61
15.64
15.9
16.11
16
16
16.1
15.8
16.09
16.01
15.97
15.7
15.7
15.68
15.72
15.6
15.62
16
15.62
15.58
15.66
15.86
16.09
15.94
15.95
15.9
16.05
16.25
16.21
16.2
16.05
15.9
15.6
15.44
15.6
15.6
15.55
15.55
15.51
15.46
15.44
15.47
15.44
15.55
15.62
15.75
15.74
15.62
15.61
15.6
15.87
15.87
15.87
15.85
15.75
15.74
15.7
15.25
15.1
15.19
15.19
15.71
15.3
15.41
15.29
14.92
15.1
15.03
15.11
15.25
15.1
15.05
15.11
15.08
14.95
15.16
15.7
15.36
15.17
15.11
15.02
15.06
15.25
15.25
15.14
15.23
15.34
15.15
15.45
15.7
15.61
15.8
15.6
15.66
15.57
15.88
15.87
15.87
15.77
15.89
15.71
15.85
15.9
15.92
16.1
15.64
16.07
16.15
16.14
16.15
16.25
16.5
16.5
16.5
16.52
16.47
16.54
16.6
16.6
16.79
16.65
16.56
16.44
16.44
16.6
16.6
16.95
16.35
16.34
16.2
16.1
16.55
16.5
16.51
16.45
16.3
16.59
16.65
16.75
16.73
16.65
16.44
16.7
16.21
16.42
16.61
16.55
16.64
16.15
16.31
16.17
16.3
16.18
16.32
16.15
15.72
15.64
15.7
15.5
15.7
15.95
15.65
15.65
15.93
16.18
15.85
15.75
15.89
15.89
15.7
15.63
15.58
15.97
15.83
15.79
15.89
16.02
16.1
15.9
15.83
15.58
15.9
15.75
15.9
15.78
15.71
15.6
15.61
15.87
15.55
15.41
15.71
16.11
16.01
15.49
15.49
15.4
15.4
15.36
15.56
15.4
15.4
15.15
15.23
15
14.75
14.7
15.05
15
15.01
15.2
15.21
15.21
14.94
15
15.12
15.38
15.4
15.6
15.5
15.25
15.35
15.4
15.15
15.13
15.27
15.11
15.01
15.05
15.01
14.96
15
14.96
14.96
14.9
14.95
14.79
14.8
14.88
6/30/06 14.9
FUND SNAPSHOT
------------------------------------
Common Share Price $14.90
------------------------------------
Common Share
Net Asset Value $14.87
------------------------------------
Premium/(Discount) to NAV 0.20%
------------------------------------
Market Yield 5.32%
------------------------------------
Taxable-Equivalent Yield1 7.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) 67,150
------------------------------------
Average Effective
Maturity on Securities (Years) 17.32
------------------------------------
Leverage-Adjusted Duration 8.08
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.49% 0.25%
------------------------------------
Since
Inception 6.19% 7.30%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 17.2%
------------------------------------
Transportation 14.6%
------------------------------------
U.S. Guaranteed 14.1%
------------------------------------
Tax Obligation/Limited 13.8%
------------------------------------
Education and Civic
Organizations 11.4%
------------------------------------
Utilities 6.9%
------------------------------------
Long-Term Care 5.6%
------------------------------------
Consumer Staples 4.1%
------------------------------------
Other 12.3%
------------------------------------
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%. When comparing this Fund to 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 2005 of $0.0940 and $0.0001 per share,
respectively.
17
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 19%
A 5%
BBB 5%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.067
Aug 0.067
Sep 0.062
Oct 0.062
Nov 0.062
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0515
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.1
15.09
15.04
15.04
15.05
15.06
15.12
15
15.01
15.1
15.05
15.15
15.06
15.06
15
15
15.04
14.97
15.01
15.01
15.01
14.99
15.05
15.07
15.11
15.09
14.97
14.91
14.88
15.05
15.2
15.02
15.07
15.08
15.17
15.13
15.04
15.08
15.08
15.02
15.02
15.18
15.17
15.21
15.3
15.27
15.27
15.11
15.12
15.1
15.12
14.92
14.83
14.81
14.81
14.83
14.75
14.77
14.76
14.76
14.57
14.42
14.35
14.34
14.39
14.39
14.4
14.4
14.32
14.31
14.29
14.31
14.22
14.08
14.05
14.09
14
14
14.01
14.03
13.95
13.96
13.92
13.98
13.98
14.03
14.06
13.96
13.92
14.01
14.08
14.16
13.94
13.94
13.85
13.97
13.89
13.9
13.8
13.79
13.77
13.81
13.97
13.95
13.95
13.85
13.76
13.72
13.72
13.67
13.71
13.72
13.71
13.6
13.63
13.39
13.44
13.41
13.5
13.5
13.52
13.5
13.58
13.63
13.64
13.63
13.6
13.67
13.67
13.75
13.83
13.99
13.93
13.95
14.01
13.88
13.98
13.94
14.05
14
13.93
14.01
13.96
13.95
13.92
13.83
13.85
13.87
13.86
13.87
13.87
13.92
13.81
13.76
13.74
13.77
13.73
13.69
13.69
13.67
13.67
13.72
13.67
13.74
13.73
13.72
13.77
13.9
13.92
13.8
13.7
13.58
13.6
13.64
13.65
13.64
13.61
13.63
13.61
13.67
13.68
13.68
13.71
13.72
13.67
13.67
13.66
13.7
13.74
13.75
13.82
13.8
13.75
13.67
13.66
13.64
13.5
13.54
13.46
13.52
13.5
13.55
13.5
13.55
13.55
13.62
13.54
13.55
13.44
13.39
13.39
13.43
13.43
13.35
13.35
13.4
13.42
13.37
13.36
13.37
13.27
13.2
13.2
13.15
13.15
13.17
13.27
13.22
13.19
13.2
13.24
13.35
13.32
13.25
13.34
13.29
13.33
13.25
13.21
13.21
13.24
13.15
13.17
13.11
13.09
13.08
13.13
13.08
13.04
13.04
13
12.95
12.9
12.96
6/30/06 12.95
FUND SNAPSHOT
------------------------------------
Common Share Price $12.95
------------------------------------
Common Share
Net Asset Value $14.71
------------------------------------
Premium/(Discount) to NAV -11.96%
------------------------------------
Market Yield 4.77%
------------------------------------
Taxable-Equivalent Yield1 6.81%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $239,718
------------------------------------
Average Effective
Maturity on Securities (Years) 15.90
------------------------------------
Leverage-Adjusted Duration 8.54
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -9.47% -1.34%
------------------------------------
5-Year 3.11% 6.41%
------------------------------------
10-Year 4.00% 5.81%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 18.8%
------------------------------------
Tax Obligation/Limited 15.9%
------------------------------------
U.S. Guaranteed 14.6%
------------------------------------
Tax Obligation/General 13.4%
------------------------------------
Water and Sewer 9.4%
------------------------------------
Transportation 7.6%
------------------------------------
Health Care 6.8%
------------------------------------
Other 13.5%
------------------------------------
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%. When comparing this Fund to 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 2005 of $0.1058 and $0.0005 per share,
respectively.
18
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 75%
AA 9%
A 5%
BBB 6%
BB or Lower 3%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.071
Aug 0.071
Sep 0.0665
Oct 0.0665
Nov 0.0665
Dec 0.063
Jan 0.063
Feb 0.063
Mar 0.0595
Apr 0.0595
May 0.0595
Jun 0.0555
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 15.22
15.17
15.3
15.33
15.18
15.15
15.29
15.27
15.3
15.38
15.32
15.4
15.36
15.31
15.31
15.25
15.2
15.42
15.52
15.34
15.34
15.38
15.49
15.4
15.39
15.38
15.33
15.45
15.54
15.52
15.6
15.56
15.56
15.61
15.78
15.81
15.7
15.63
15.61
15.61
15.55
15.52
15.63
15.63
15.75
15.8
15.77
15.54
15.7
15.73
15.55
15.44
15.46
15.31
15.25
15.17
15.1
15.05
15
15
14.94
14.94
14.75
14.89
14.82
14.94
14.93
14.8
14.77
14.68
14.66
14.79
14.61
14.43
14.38
14.21
14.14
14.2
14.14
14.24
14.13
14.1
14.1
14.18
14.14
14.19
14.16
14.07
14.09
14
13.99
13.98
13.97
13.9
13.85
13.87
13.85
13.89
13.87
13.84
13.84
13.89
13.8
13.84
13.89
13.95
13.87
14.05
14.02
13.91
13.89
13.9
13.86
13.88
13.92
13.66
13.64
13.5
13.63
13.63
13.71
13.59
13.7
13.64
13.75
13.96
14.06
14.01
14.01
14.14
14.32
14.41
14.36
14.55
14.41
14.37
14.43
14.33
14.36
14.23
14.22
14.25
14.15
14.16
14.14
14.2
14.23
14.12
14.09
14.02
14.22
14.18
14.25
14.13
14.22
14.22
14.21
14.1
14.09
14.17
14.2
14.13
14.05
14.06
14.08
14.17
14.15
14.27
14.25
14.12
14.06
14.05
14
13.93
13.88
13.84
13.95
13.86
13.91
13.95
13.86
13.84
13.84
13.77
13.72
13.69
13.72
13.69
13.78
13.67
13.71
13.7
13.75
13.72
13.73
13.65
13.64
13.65
13.55
13.47
13.44
13.48
13.41
13.45
13.41
13.5
13.53
13.44
13.4
13.46
13.46
13.47
13.5
13.52
13.67
13.61
13.6
13.56
13.64
13.4
13.3
13.39
13.31
13.27
13.29
13.33
13.32
13.35
13.26
13.23
13.32
13.29
13.29
13.3
13.34
13.27
13.37
13.34
13.23
13.21
13.23
13.16
13.04
13.07
13.01
13.01
13.03
13.13
13.02
12.87
12.89
12.8
12.78
12.9
6/30/06 12.96
FUND SNAPSHOT
------------------------------------
Common Share Price $12.96
------------------------------------
Common Share
Net Asset Value $14.22
------------------------------------
Premium/(Discount) to NAV -8.86%
------------------------------------
Market Yield 5.14%
------------------------------------
Taxable-Equivalent Yield1 7.34%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $225,121
------------------------------------
Average Effective
Maturity on Securities (Years) 16.94
------------------------------------
Leverage-Adjusted Duration 8.52
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -8.42% -0.80%
------------------------------------
5-Year 5.46% 6.44%
------------------------------------
10-Year 6.99% 6.72%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/General 16.8%
------------------------------------
Education and Civic
Organizations 13.2%
------------------------------------
Transportation 12.4%
------------------------------------
Health Care 10.8%
------------------------------------
Tax Obligation/Limited 8.7%
------------------------------------
U.S. Guaranteed 8.5%
------------------------------------
Water and Sewer 8.5%
------------------------------------
Utilities 8.4%
------------------------------------
Other 12.7%
------------------------------------
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%. When comparing this Fund to 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 2005 of $0.2137 and $0.0023 per share,
respectively.
19
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 54%
AA 20%
A 11%
BBB 6%
BB or Lower 3%
N/R 6%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.0775
Aug 0.0775
Sep 0.074
Oct 0.074
Nov 0.074
Dec 0.074
Jan 0.074
Feb 0.074
Mar 0.07
Apr 0.07
May 0.07
Jun 0.0665
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 16.34
16.51
16.3
16.32
16.51
16.65
16.61
16.36
16.5
16.52
16.65
16.6
16.36
16.25
16.3
16.4
16.4
16.64
16.55
16.81
16.81
16.76
16.38
16.45
16.6
16.69
16.69
16.63
16.63
17
16.9
16.85
16.8
17.04
17.16
17.15
17.05
16.85
16.9
16.81
16.99
16.99
16.75
16.71
16.7
16.75
16.75
16.72
16.72
16.7
16.65
16.65
16.65
16.48
16.5
16.5
16.42
16.28
16.28
16.08
15.97
15.91
15.77
15.75
15.6
15.58
15.57
15.46
15.58
15.65
15.7
15.72
15.59
15.63
15.4
15.55
15.55
15.49
15.2
15.24
15.11
15.01
14.96
14.9
14.95
15.1
15.29
15.7
15.81
15.81
15.95
15.95
15.85
15.77
15.77
15.72
15.72
15.9
15.72
15.72
15.72
15.9
16.05
16.05
15.58
15.75
15.36
15.41
15.36
15.35
15.4
15.4
15.4
15.35
15.4
15.4
15.59
16
15.8
15.85
15.3
16
15.6
15.75
15.75
15.66
15.85
15.82
15.82
15.65
16.1
16.75
17
16.87
16.4
15.93
15.58
15.8
16.9
16.68
16.8
16.8
16.6
16.27
16.4
16.4
16.49
16.49
16.8
16.95
17
16.8
16.33
16.05
15.78
15.69
15.7
15.7
15.7
15.7
15.74
15.7
15.45
15.53
15.5
15.49
15.55
15.5
15.52
15.56
15.8
15.51
15.9
15.78
15.78
16.08
16.1
16.1
15.74
16.25
16.25
16.2
15.99
16.35
16.1
16.1
15.9
15.9
15.8
15.8
16.05
16
16.24
16.22
16.08
15.9
15.9
15.9
16.1
16.1
15.9
15.9
15.8
15.8
16.05
16.3
16.39
16.15
16.32
16.2
16.2
16.1
16.45
16.3
16.15
15.96
16.62
16.35
16.32
16
15.95
15.95
16.15
16.15
16.05
16.1
16.35
16.05
16.1
16.1
16.1
16.13
16.28
16.36
16.21
16
15.78
15.84
15.75
15.61
15.56
15.5
15.34
15.36
15.28
15.28
15.19
15.27
15.3
15.2
15.2
15.2
15.01
15
6/30/06 15.1
FUND SNAPSHOT
------------------------------------
Common Share Price $15.10
------------------------------------
Common Share
Net Asset Value $14.95
------------------------------------
Premium/(Discount) to NAV 1.00%
------------------------------------
Market Yield 5.28%
------------------------------------
Taxable-Equivalent Yield1 7.54%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $49,660
------------------------------------
Average Effective
Maturity on Securities (Years) 16.91
------------------------------------
Leverage-Adjusted Duration 8.25
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -0.56% -0.01%
------------------------------------
5-Year 7.99% 7.78%
------------------------------------
Since
Inception 7.07% 7.80%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 21.7%
------------------------------------
Health Care 13.6%
------------------------------------
Tax Obligation/General 12.9%
------------------------------------
Long-Term Care 9.2%
------------------------------------
Tax Obligation/Limited 7.9%
------------------------------------
Transportation 7.6%
------------------------------------
U.S. Guaranteed 7.3%
------------------------------------
Industrials 4.7%
------------------------------------
Utilities 4.3%
------------------------------------
Other 10.8%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.1015 per share.
20
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of June 30, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 59%
AA 20%
A 4%
BBB 9%
BB or Lower 3%
N/R 5%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Jul 0.067
Aug 0.067
Sep 0.067
Oct 0.067
Nov 0.067
Dec 0.067
Jan 0.067
Feb 0.067
Mar 0.0635
Apr 0.0635
May 0.0635
Jun 0.0635
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
7/01/05 14.94
14.99
15.08
15.04
15.17
15.33
15.24
15.3
15.3
15.25
15.15
15.12
15.07
15.12
15.12
15.12
15.15
15.11
15.12
15.12
15.12
15.05
15.1
15.12
15.2
15.11
15.05
15.01
15.15
15.4
15.91
15.7
15.58
15.79
16.19
16.24
16
15.48
15.19
15.1
15.18
15.51
15.61
15.56
15.58
15.65
15.82
15.85
16.01
16
15.86
15.65
15.36
15.15
15.15
15.16
15.35
15.85
15.95
15.8
15.59
15.41
15.29
15.34
15.28
15.3
15.3
15.2
15.2
15.2
15.2
15.2
15
14.8
14.53
14.43
14.2
14.23
14.15
14.25
14.4
14.3
14.1
14.36
14.12
14.34
14.77
14.94
14.85
14.57
14.51
14.75
14.7
14.54
14.35
14.2
13.94
14.09
13.96
14.06
13.92
13.98
13.8
13.95
14.16
14.21
14.23
14.16
14.1
14
14.24
14.24
14.25
14.26
14.01
13.98
14.01
13.91
14.25
14.28
14.31
14.44
14.7
14.72
14.68
14.67
14.54
14.53
14.53
14.6
14.93
15.3
15.3
15.18
15
14.9
14.7
14.75
14.91
14.95
14.84
14.9
15.35
15.45
15.17
15.01
15.08
15.08
15.13
15.16
15.35
15.2
15
15.01
14.89
14.85
14.8
14.93
14.71
14.61
14.58
14.62
14.6
14.6
14.82
14.83
15.01
15.04
15.2
15.32
15.01
14.81
14.81
14.95
15.1
15.22
14.75
14.75
14.52
14.57
14.98
15.08
14.9
14.94
14.94
14.94
14.9
14.9
14.75
14.7
14.62
14.63
14.53
14.59
14.63
14.37
14.37
14.2
14.36
14.37
14.26
14.2
14.3
14.35
14.28
14.24
14.35
14.57
14.66
14.5
14.5
14.43
14.37
14.26
14.35
14.27
14.39
14.26
14.26
14.15
14.15
14.38
14.53
14.48
14.32
14.37
14.37
14.64
14.45
14.5
14.5
14.48
14.5
14.75
14.79
14.53
14.6
14.65
14.6
14.72
14.6
14.44
14.5
14.65
14.75
14.75
14.75
14.92
14.75
14.5
14.25
14.03
14.03
14.09
6/30/06 14.16
FUND SNAPSHOT
------------------------------------
Common Share Price $14.16
------------------------------------
Common Share
Net Asset Value $14.93
------------------------------------
Premium/(Discount) to NAV -5.16%
------------------------------------
Market Yield 5.38%
------------------------------------
Taxable-Equivalent Yield1 7.69%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $55,597
------------------------------------
Average Effective
Maturity on Securities (Years) 15.15
------------------------------------
Leverage-Adjusted Duration 8.47
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 0.88% -0.46%
------------------------------------
Since
Inception 5.00% 7.27%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 17.4%
------------------------------------
U.S. Guaranteed 16.3%
------------------------------------
Tax Obligation/General 16.1%
------------------------------------
Education and Civic
Organizations 13.2%
------------------------------------
Health Care 10.3%
------------------------------------
Water and Sewer 6.3%
------------------------------------
Industrials 3.9%
------------------------------------
Utilities 3.8%
------------------------------------
Other 12.7%
------------------------------------
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%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2005 of $0.0976 per share.
21
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD 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 (the Funds), as of June 30, 2006, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of 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. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of June 30, 2006, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. 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, 2006,
the results of their operations for the year then ended, changes in their net
assets for each of the two years in the period then ended, and their financial
highlights for each of the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
August 9, 2006
22
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.2% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 770,432
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 674,385
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 1,444,817
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.0% (3.9% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
8,195 5.750%, 6/01/32 6/12 at 100.00 BBB 8,555,250
3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 3,162,150
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 6/13 at 100.00 BBB 3,422,720
2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,852,194
------------------------------------------------------------------------------------------------------------------------------------
17,020 Total Consumer Staples 17,992,314
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.7% (14.8% OF TOTAL INVESTMENTS)
2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,604,000
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,028,590
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,014,560
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 -
ACA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 525,235
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,587,795
Kean University, Series 2003D, 5.250%, 7/01/20 - FGIC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 1,972,990
Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,571,460
Montclair State University, Series 2004L, 5.125%, 7/01/22 -
MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,225 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,291,260
2,850 5.000%, 7/01/18 - FGIC Insured 7/15 at 100.00 AAA 2,981,385
1,460 5.000%, 7/01/32 - FGIC Insured 7/15 at 100.00 AAA 1,495,624
2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 2,839,056
Montclair State University, Series 2006, 5.000%, 7/01/36
(WI/DD, Settling 7/06/06) - AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,034,720
New Jersey City University, Series 2002A, 5.000%, 7/01/32 -
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 1,049,000
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,037,174
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
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 $ 2,385,152
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,314,331
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,548,780
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,937,471
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,013,680
Ramapo College, Series 2001D, 5.000%, 7/01/31 -
AMBAC Insured
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,568,330
Ramapo College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 647,039
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,353,495
Rowan University, Series 2003I, 5.125%, 7/01/21 - FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
1,000 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 1,052,160
1,195 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 1,240,553
1,875 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 1,927,894
New Jersey Educational Facilities Authority, Revenue Bonds,
St. Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 1,002,490
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,752,485
1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,501,557
William Paterson University, Series 2004A, 5.125%, 7/01/21 -
FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,072,638
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
3,395 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 3,411,975
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1997A, 5.800%, 6/01/16 - MBIA Insured (Alternative
Minimum Tax)
2,460 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,526,199
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA
Insured (Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,297,424
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,011,013
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,409,607
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,153,193
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,271,720
------------------------------------------------------------------------------------------------------------------------------------
65,500 Total Education and Civic Organizations 67,432,035
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 5,382,550
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.3% (12.6% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue
Bonds, Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 198,170
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 1,042,330
5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 5,800,600
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 5.000%, 8/01/41 - AMBAC Insured
400 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 408,684
Revenue Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 615 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- $ 613,616
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,122,820
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.500%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,614,590
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 4,042,462
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,099,980
2,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 2,617,810
Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 - RAAI Insured
5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 5,237,266
Bonds, Society of the Valley Hospital Obligated Group,
Series 2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa3 3,337,224
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 8,273,120
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,690 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,763,431
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 BBB+ 2,187,920
Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,175,442
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
4,320 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101.00 Aaa 4,367,347
Refunding Bonds, St. Barnabas Healthcare System - West
Hudson Hospital Obligated Group, Series 1998A, 5.000%,
7/01/23 - MBIA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997:
70 6.000%, 7/01/20 7/07 at 102.00 BBB- 72,218
1,605 6.000%, 7/01/27 7/07 at 102.00 BBB- 1,653,054
3,810 Newark, New Jersey, GNMA Collateralized Healthcare Facility 6/12 at 102.00 Aaa 3,943,007
Revenue Bonds, New Community Urban Renewal Corporation,
Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
55,745 Total Health Care 57,571,091
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3% (0.8% OF TOTAL INVESTMENTS)
890 Long Branch Housing Finance Corporation New Jersey, 10/06 at 100.00 N/R 895,491
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,876,905
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,633 Total Housing/Multifamily 3,772,396
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.6% OF TOTAL INVESTMENTS)
3,545 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 3,628,946
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
2,745 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 2,758,121
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 - MBIA Insured (Alternative Minimum Tax)
2,590 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,637,190
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
2,585 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,629,721
Securities Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,465 Total Housing/Single Family 11,653,978
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.8% (1.9% OF TOTAL INVESTMENTS)
$ 1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R $ 1,177,796
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.750%, 11/01/24
2,875 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 2,970,220
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation, Series 2001A, 5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A+ 638,233
Masonic Charity Foundation of New Jersey, Series 2001,
5.875%, 6/01/18
1,100 New Jersey Economic Development Authority, Revenue Bonds, 6/13 at 102.00 A+ 1,134,485
Masonic Charity Foundation of New Jersey, Series 2002,
5.250%, 6/01/32
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,016,710
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,527,000
------------------------------------------------------------------------------------------------------------------------------------
8,195 Total Long-Term Care 8,464,444
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.6% (8.2% OF TOTAL INVESTMENTS)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,747,464
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,666,990
1,000 Essex County, New Jersey, General Obligation Refunding Bonds, 11/07 at 101.00 Aaa 1,022,690
Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
4,300 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 4,454,112
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,735 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,796,697
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
1,420 Lenape Regional High School District, Burlington County, No Opt. Call Aaa 1,504,547
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 4/01/14 - FGIC Insured
Middletown Township Board of Education, Monmouth County, New
Jersey, Refunding School Bonds, Series 2001:
4,725 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 4,849,504
1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,526,580
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,421,000
6.000%, 2/15/11
1,200 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 1,293,060
5.250%, 7/15/16 - AMBAC Insured
2,040 Ocean City Board of Education, Cape May County, New Jersey, 4/16 at 100.00 Aaa 2,127,026
General Obligation Bonds, Series 2005, 5.000%, 4/01/20 -
MBIA 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 1,504,413
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,578,527
1,285 Tinton Falls Board of Education, Monmouth County, New Jersey, 10/14 at 100.00 Aaa 1,358,027
General Obligation Bonds, Series 2004, 5.000%, 10/15/15 -
FSA Insured
1,745 Washington Township Board of Education, Mercer County, 1/16 at 100.00 Aaa 1,823,525
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 1/01/19 - FSA Insured
West Deptford Township, New Jersey, General Obligation Bonds,
Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,779,604
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,917,668
------------------------------------------------------------------------------------------------------------------------------------
35,845 Total Tax Obligation/General 37,371,434
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 28.1% (18.3% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,887,407
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,098,200
1,775 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,871,773
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa $ 2,273,016
Obligation Lease Revenue Bonds, Correctional Facilities
Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured
10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 10,522,198
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
2,650 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 2,840,376
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
Gloucester County Improvement Authority, New Jersey, Lease
Revenue Bonds, Series 2005A:
1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA 1,147,179
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,033,750
1,420 5.000%, 9/01/22 -MBIA Insured 9/15 at 100.00 AAA 1,464,702
Hudson County Improvement Authority, New Jersey, County
Secured Lease Revenue Bonds, County Services Building
Project, Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,118,286
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,572,319
1,445 Lower Township Municipal Utilities Authority, Cape No Opt. Call Aaa 1,510,213
May County, New Jersey, Revenue Bonds, Series 2003D,
5.000%, 12/01/16 - FGIC Insured
Middlesex County Improvement Authority, New Jersey, County
Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,065,620
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,127,260
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,060,510
4,000 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 4,188,480
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
4,675 New Jersey Economic Development Authority, Lease Revenue 3/15 at 100.00 AAA 4,795,381
Bonds, Liberty State Park Project, Series 2005C,
5.000%, 3/01/27 - FSA Insured
7,000 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 7,458,430
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,114,640
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,032,377
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,532,275
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
2,885 New Jersey Health Care Facilities Financing Authority, 9/15 at 100.00 AAA 3,007,613
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2005,
5.000%, 9/15/18 - AMBAC Insured
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 3,533,266
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 1,125,299
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 1,982,517
4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,604,544
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 4,033,463
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,704,028
System Bonds, Series 2006A, 5.500%, 12/15/22
1,625 Passaic County Improvement Authority, New Jersey, Lease 5/15 at 100.00 Aaa 1,660,409
Revenue Bonds, Preakness Healthcare Center Project,
Series 2005, 5.000%, 5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 1,267,805
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
79,720 Total Tax Obligation/Limited 83,633,336
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.6% (17.3% OF TOTAL INVESTMENTS)
$ 2,250 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA $ 2,366,865
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 2,059,320
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,164,372
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,541,295
2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,565,300
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,693,655
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,062,179
Revenue Refunding Bonds, Port District Project, Series 2001A,
5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 11/06 at 100.00 CCC 2,999,580
American Airlines Inc., Series 1991, 7.100%, 11/01/31
(Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
495 6.500%, 1/01/16 No Opt. Call A 562,538
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 182,515
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 9,854,823
5.000%, 1/01/19 - FGIC Insured
4,660 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 4,761,961
5.000%, 1/01/35 - FSA Insured
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 1,311,163
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
7,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 7,198,590
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - XLCA Insured
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 2,338,254
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,109,350
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 3,997,665
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 6,884,325
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,413,718
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,031,500
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
76,340 Total Transportation 79,098,968
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 15.5% (10.1% OF TOTAL INVESTMENTS) (4)
3,320 Atlantic County Improvement Authority, New Jersey, 11/10 at 100.00 Aaa 3,514,286
Egg Harbor Township Golf Corporation Township Guaranteed
Revenue Bonds, Series 2000, 5.400%, 11/01/30 (Pre-refunded
11/01/10) - AMBAC Insured
3,275 Delaware River and Bay Authority, Delaware and New Jersey, 1/10 at 101.00 AAA 3,501,859
Revenue Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded
1/01/10) - AMBAC Insured
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
3,000 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 3,180,720
3,365 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 3,567,708
3,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,221,430
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,961,098
System Bonds, Series 2001B, 5.000%, 12/15/21
(Pre-refunded 12/15/11) - MBIA Insured
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
$ 3,000 5.500%, 6/15/17 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA $ 3,270,360
3,000 5.500%, 6/15/18 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 3,266,550
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 3,309,631
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 194,584
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 62,954
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,867,248
760 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 869,904
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 7,955,325
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
1,230 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,298,167
Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
42,960 Total U.S. Guaranteed 46,041,824
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.5% (3.0% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 3,518,585
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
1,730 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 1,754,116
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AAA 2,156,209
Revenue Bonds, Regional Sludge Project, Series 2003,
5.000%, 12/15/14 - FGIC Insured
400 New Jersey Economic Development Authority, Pollution Control 7/06 at 100.50 Baa3 405,952
Revenue Bonds, Jersey Central Power and Light Company,
Series 1985, 7.100%, 7/01/15
2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,645,900
Pollution Control Revenue Refunding Bonds, PSEG Power LLC
Project, Series 2001A, 5.750%, 4/01/31 (Alternative
Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,016,290
Facility Senior Lien Revenue Bonds, Ogden Martin Systems
of Union Inc., Series 1998A, 5.000%, 6/01/23 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,185 Total Utilities 13,497,052
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.8% (5.1% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,073,860
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 - FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,828,750
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,911,648
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,039,200
7,500 New Jersey Economic Development Authority, Water Facilities 11/06 at 102.00 Aaa 7,707,450
Revenue Bonds, American Water Company, Series 1996,
6.000%, 5/01/36 - FGIC Insured (Alternative Minimum Tax)
29
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
North Hudson Sewerage Authority, New Jersey, Sewerage
Revenue Refunding Bonds, Series 2002A:
$ 3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa $ 3,176,100
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,169,980
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,293,400
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 23,200,388
------------------------------------------------------------------------------------------------------------------------------------
$ 438,433 Total Investments (cost $448,513,588) - 153.4% 456,556,627
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 2,982,383
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.4)% (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 297,539,010
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
30
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.6% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 462,259
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 405,609
------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 867,868
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 5.3% (3.6% OF TOTAL INVESTMENTS)
3,145 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,283,254
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 3,764,992
2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,444,738
------------------------------------------------------------------------------------------------------------------------------------
8,915 Total Consumer Staples 9,492,984
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.1% (12.8% OF TOTAL INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,157,164
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
2,840 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R 3,323,567
Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 503,640
Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 -
ACA Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 315,141
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
595 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 609,833
Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured
1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,312,205
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,130,752
Montclair State University, Series 2005F, 5.000%, 7/01/32 -
FGIC Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 994,182
Montclair State University, Series 2006, 5.000%, 7/01/36
(WI/DD, Settling 7/06/06) - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 1,435,266
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 756,262
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,553,639
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,058,085
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 1,715,916
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,071,450
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 318,216
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,041,150
Rowan University, Series 2003I, 5.125%, 7/01/21 - FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
905 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 952,205
400 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 415,248
31
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 235 New Jersey Educational Facilities Authority, Revenue Bonds, 7/06 at 100.00 A- $ 235,942
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
210 New Jersey Higher Education Assistance Authority, Student 7/06 at 100.00 A+ 210,326
Loan Revenue Bonds, New Jersey Class Loan Program,
Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax)
1,960 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 1,982,579
Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
New Jersey Higher Education Assistance Authority, Student
Loan Revenue Bonds, Series 2000A:
1,795 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 1,832,354
1,200 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,230,372
2,000 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,041,720
Series 2004E, 5.000%, 5/01/34 - FGIC Insured
2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,087,147
Certificates of Participation, Child Health Institute, LLC,
Series 2003, 5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AAA 1,018,710
Certificates of Participation, University Housing Associates,
LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AAA 2,802,030
Revenue Bonds, Series 2002A, 5.000%, 12/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,870 Total Education and Civic Organizations 34,105,101
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,614,765
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.0% (10.0% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue
Bonds, Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 183,307
620 5.750%, 2/15/34 8/14 at 100.00 BBB 646,245
240 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 245,210
Revenue Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A2 3,054,222
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
375 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 374,156
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,648,365
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
1,800 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 1,896,930
Bonds, Meridian Health System Obligated Group, Series 1999,
5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 505,213
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 1,510,275
Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 - RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 2,111,620
Bonds, Society of the Valley Hospital Obligated Group,
Series 2000, 5.750%, 7/01/15 - AMBAC Insured
1,875 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa3 1,896,150
Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 3,157,680
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
1,270 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,325,182
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 597,413
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A $ 1,190,229
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,728,417
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
25 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 25,749
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997, 6.000%, 7/01/27
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 12/06 at 101.50 Baa1 2,704,908
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
25,790 Total Health Care 26,801,271
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.5% (3.0% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA 11/12 at 100.00 Aaa 337,498
Enhanced Multifamily Revenue Bonds, Mount Carmel Towers,
Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax)
530 Long Branch Housing Finance Corporation New Jersey, 10/06 at 100.00 N/R 533,270
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,218,119
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,870 Total Housing/Multifamily 8,088,887
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,965 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 2,012,337
535 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 547,669
500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 506,295
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,000 Total Housing/Single Family 3,066,301
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.1% (0.7% OF TOTAL INVESTMENTS)
750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 785,805
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A+ 1,051,870
Masonic Charity Foundation of New Jersey, Series 2001,
5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Long-Term Care 1,837,675
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 15.2% (10.1% OF TOTAL INVESTMENTS)
2,075 Egg Harbor Township School District, Atlantic County, 4/15 at 100.00 Aaa 2,131,855
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 4/01/27 - MBIA Insured
2,460 Freehold Regional High School District, Monmouth County Board No Opt. Call AAA 2,628,362
of Education, New Jersey, School District Refunding Bonds,
Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 2,589,600
5.000%, 9/01/22 - AMBAC Insured
1,500 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,553,340
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA 2,053,060
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 2,797,236
1,560 6.000%, 2/15/13 No Opt. Call AA 1,727,778
720 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 775,836
5.250%, 7/15/16 - AMBAC Insured
4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,192,160
Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured
33
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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 $ 1,420,430
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,157,387
2,085 Washington Township Board of Education, Gloucester County, 2/13 at 100.00 Aaa 2,179,054
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 2/01/15 - MBIA Insured
1,780 West Deptford Township, New Jersey, General Obligation Bonds, 9/14 at 100.00 Aaa 1,834,842
Series 2004, 4.750%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,710 Total Tax Obligation/General 27,040,940
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.5% (21.7% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed
Lease Revenue Bonds, County Administration Complex Project,
Series 2003:
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,261,776
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,201,220
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,054,520
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,273,016
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 5,789,316
Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
1,225 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 1,313,004
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,215,751
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,806,629
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 1,065,620
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,813,609
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,060,510
2,540 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 2,659,685
Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34
4,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 4,475,058
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,057,320
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,755,115
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25
4,000 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 4,096,080
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/28 -
AMBAC Insured
1,500 New Jersey Sports and Exposition Authority, Convention Center No Opt. Call AAA 1,660,995
Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 - MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,250,230
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,945,631
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 418,716
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 746,052
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA $ 2,850,432
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AAA 2,126,360
System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured
1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,150,937
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,859,732
System Bonds, Series 2006A, 5.500%, 12/15/22
780 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 AAA 752,006
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aaa 2,795,124
Obligation Lease Revenue Bonds, Plainfield Park Madison
Redevelopment Project, Series 2003, 5.000%, 3/01/34 -
FSA Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,514,340
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
55,285 Total Tax Obligation/Limited 57,968,784
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.9% (14.6% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,892,835
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,568,825
4,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 4,104,480
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,365 6.500%, 1/01/16 No Opt. Call A 1,551,241
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 644,507
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 393,548
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 5,964,762
5.000%, 1/01/19 - FGIC Insured
1,995 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 2,038,651
5.000%, 1/01/35 - FSA Insured
750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 786,697
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue 4/15 at 100.00 Aaa 2,791,828
Bonds, Paterson Parking Deck Facility, Series 2005,
5.000%, 4/15/35 - FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 4,113,480
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - XLCA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,043,740
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
8,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 8,338,315
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
850 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 873,877
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,620 Total Transportation 39,106,786
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.2% (10.8% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
1,750 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,855,420
1,965 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 2,083,372
3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,677,799
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,226,488
System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded
12/15/11) - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 2,177,700
System Bonds, Series 2003C, 5.500%, 6/15/18 (Pre-refunded
6/15/13)
35
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa $ 947,129
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 532,244
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 223,199
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 137,353
6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,542,979
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,014,514
2,745 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 3,141,954
350 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 371,035
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 (Pre-refunded 10/01/13) - FGIC Insured
1,800 Woodbridge Township, Middlesex County, New Jersey, Sewer 7/09 at 102.00 Aaa 1,904,652
Utility Bonds, Series 1999, 5.300%, 7/01/20 (Pre-refunded
7/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
26,080 Total U.S. Guaranteed 28,835,838
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.2% (1.5% OF TOTAL INVESTMENTS)
545 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 551,736
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,272,438
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,178,423
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,920 Total Utilities 4,002,597
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.7% (9.2% OF TOTAL INVESTMENTS)
Bayonne Municipal Utilities Authority, New Jersey, Water System
Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa 1,493,848
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,276,113
1,000 Hudson County Improvement Authority, New Jersey, Utility 1/08 at 101.50 AAA 1,031,530
System Revenue Bonds, Harrison Franchise Acquisition
Project, Series 1997, 5.350%, 1/01/27 - FSA Insured
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,113,280
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, Water Facilities 9/06 at 100.00 AAA 3,173,532
Revenue Refunding Bonds, Hackensack Water Company,
Series 1994B, 5.900%, 3/01/24 - MBIA Insured (Alternative
Minimum Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,065,717
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AAA 1,691,712
Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 -
MBIA Insured
3,500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 3,698,310
Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 1,155 Ocean County, New Jersey, Brick Township Municipal 12/12 at 100.00 Aaa $ 1,223,584
Utilities Authority, Revenue Bonds, Series 2002,
5.250%, 12/01/18 - FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,053,670
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,655,745
New Jersey, Sewer Revenue Refunding Bonds, Series 1993B,
5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,555 Total Water and Sewer 24,477,041
------------------------------------------------------------------------------------------------------------------------------------
$ 254,760 Total Investments (cost $261,916,788) - 150.0% 267,306,838
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.4% 2,492,607
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 178,199,445
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
37
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 250,390
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 224,795
45 New Jersey Economic Development Authority, General Motors No Opt. Call B 43,633
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 518,818
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS)
895 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 934,344
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 2,395,904
1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,222,369
------------------------------------------------------------------------------------------------------------------------------------
4,260 Total Consumer Staples 4,552,617
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 22.0% (14.8% OF TOTAL INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 262,618
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 394,598
Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 787,530
Montclair State University, Series 2004L, 5.125%, 7/01/21 -
MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,200 5.000%, 7/01/17 - FGIC Insured 7/15 at 100.00 AAA 1,258,956
1,000 5.000%, 7/01/24 - FGIC Insured 7/15 at 100.00 AAA 1,031,070
520 5.000%, 7/01/32 - FGIC Insured 7/15 at 100.00 AAA 532,688
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 994,182
Montclair State University, Series 2006, 5.000%, 7/01/36
(WI/DD, Settling 7/06/06) - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,049,000
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 1,035,530
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,526,835
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 642,631
Rowan University, Series 2004C, 5.000%, 7/01/24 -
MBIA Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 664,007
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 306,468
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 210,492
Bonds, Seton Hall University Project, Series 2001A,
5.250%, 7/01/16 - AMBAC Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
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 $ 3,875,848
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,627,952
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 2,029,480
500 5.250%, 9/01/31 9/11 at 100.00 BBB 504,125
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 511,120
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, 12/06 at 100.75 AAA 1,920,869
Series 1995M, 5.250%, 6/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,655 Total Education and Civic Organizations 21,165,999
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,118,840
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 858,789
Development Revenue Bonds, Glimcher Properties LP,
Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba3 258,633
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 807,383
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,924,805
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.9% (11.4% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 323,122
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
130 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 132,822
Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 179,595
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,648,365
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
750 5.750%, 7/01/25 7/10 at 100.00 A2 787,493
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,149,970
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa3 1,011,280
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 1,420,956
Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
845 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 881,715
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 548,085
Bonds, Trinitas Hospital Obligated Group, Series 2000,
7.500%, 7/01/30
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 1/09 at 101.00 AAA 1,559,460
Bonds, Virtua Health System, Series 1998, 5.250%, 7/01/10 -
FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,564,875
Refunding Bonds, Burdette Tomlin Memorial Hospital,
Series 1999, 5.500%, 7/01/29
39
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 40 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- $ 41,198
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997, 6.000%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
15,605 Total Health Care 16,248,936
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 261,935
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.800%, 11/01/31
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A+ 1,088,840
335 5.500%, 6/01/31 6/11 at 102.00 A+ 349,475
500 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 472,995
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,085 Total Long-Term Care 2,173,245
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.9% (2.0% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 1,035,840
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
360 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 387,918
5.250%, 7/15/16 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,399,801
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,710 Total Tax Obligation/General 2,823,559
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.6% (17.2% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 632,712
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,817,889
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
1,500 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,579,365
Guaranteed Lease Revenue Bonds, Series 2005A,
5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 1,177,715
Hotel Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 -
AMBAC Insured
2,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 2,104,440
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
815 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 873,550
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
1,055 Gloucester County Improvement Authority, New Jersey, 9/15 at 100.00 AAA 1,093,813
Lease Revenue Bonds, Series 2005A, 5.000%, 9/01/20 -
MBIA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,256,544
Revenue Bonds, Series 2004, 5.750%, 6/15/34
2,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,344,078
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,057,320
Higher Education Capital Improvement Bonds, Fund Issue,
Series 2002A, 5.250%, 9/01/19 - AMBAC Insured
525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 554,285
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
925 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 964,313
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 -
AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,083,410
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,037,670
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
$ 350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA $ 366,377
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 636,492
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,425,216
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,327,206
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,422,148
System Bonds, Series 2006A, 5.500%, 12/15/22
405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 390,465
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,548,345
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
23,410 Total Tax Obligation/Limited 24,693,353
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.8% (16.7% OF TOTAL INVESTMENTS)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 1,029,660
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,028,240
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 513,765
1,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 1,026,120
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 944,226
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
180 6.500%, 1/01/16 No Opt. Call A 204,559
50 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 57,036
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,112,050
5.000%, 1/01/19 - FGIC Insured
1,195 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 1,221,147
5.000%, 1/01/35 - FSA Insured
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 393,349
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 2,034,660
Revenue Bonds, One Hundred Ninth Series 1997,
5.375%, 1/15/32 - MBIA Insured
3,500 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,592,435
Revenue Bonds, One Hundred Twentieth Series 2000,
5.500%, 10/15/35 - MBIA Insured (Alternative Minimum Tax)
5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,211,450
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 3,564,843
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
23,135 Total Transportation 23,933,540
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 20.7% (13.9% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
900 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 954,216
1,015 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,076,144
1,630 Hamilton Township, Mercer County Board of Education, 8/10 at 100.00 AAA 1,681,622
New Jersey, General Obligation Bonds, Series 2001,
4.750%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,514,072
Construction Bonds, Series 2001A, 5.000%, 6/15/21
(Pre-refunded 6/15/11) - AMBAC Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 1,073,810
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
41
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2003C:
$ 1,000 5.500%, 6/15/17 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA $ 1,090,120
1,000 5.500%, 6/15/18 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 1,088,850
1,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 1,085,474
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 148,799
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 22,892
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,035,872
1,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,591,065
Bonds, Series 2000A, 5.500%, 10/01/40
Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001:
2,150 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 2,281,258
1,000 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,055,420
3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,228,510
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
18,670 Total U.S. Guaranteed 19,928,124
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,425 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 1,444,865
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 763,463
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
2,175 Total Utilities 2,208,328
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 22.7% (15.3% OF TOTAL INVESTMENTS)
225 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 237,728
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,746,611
Revenue Bonds, American Water Company, Series 1997B,
5.375%, 5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,126,767
Revenue Bonds, Middlesex Water Company, Series 1998,
5.350%, 2/01/38 - MBIA Insured (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,786,877
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage No Opt. Call Aaa 6,973,243
Revenue Refunding Bonds, Series 2001A, 0.000%, 8/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,475 Total Water and Sewer 21,871,226
------------------------------------------------------------------------------------------------------------------------------------
$ 146,565 Total Investments (cost $140,032,200) - 148.5% 143,161,390
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.3% 1,216,134
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.8)% (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 96,377,524
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
43
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 173,347
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 146,606
40 New Jersey Economic Development Authority, General Motors No Opt. Call B 38,785
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 358,738
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 6.1% (4.1% OF TOTAL INVESTMENTS)
1,005 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,049,180
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 1,711,360
1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,358,188
------------------------------------------------------------------------------------------------------------------------------------
3,855 Total Consumer Staples 4,118,728
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.0% (11.4% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,041,600
Bonds, Yeshiva Ktana of Passaic Project, Series 2002,
6.000%, 9/15/27
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,047,730
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 210,094
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 179,363
Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
800 5.000%, 7/01/17 - FGIC Insured 7/15 at 100.00 AAA 839,304
315 5.000%, 7/01/32 - FGIC Insured 7/15 at 100.00 AAA 322,686
710 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 727,700
Montclair State University, Series 2006, 5.000%, 7/01/36
(WI/DD, Settling 7/06/06) - AMBAC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 595,430
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 526,990
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,113,500
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 1,013,720
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez
University System, Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 1,823,867
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,155 Total Education and Civic Organizations 11,441,984
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,118,840
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 5.2% (3.4% OF TOTAL INVESTMENTS)
$ 600 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R $ 606,204
Development Revenue Bonds, Glimcher Properties LP,
Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba3 1,293,163
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
1,450 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,560,940
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 3,460,307
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 25.7% (17.2% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 229,313
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 504,510
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,941,940
90 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 91,954
Revenue Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 119,730
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Kennedy Health System Obligated Group, Series 2001:
400 5.500%, 7/01/21 7/11 at 100.00 A2 416,376
140 5.625%, 7/01/31 7/11 at 100.00 A2 145,935
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 526,697
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,086,480
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A2 3,674,964
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
700 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa3 707,896
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 1,315,700
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A 2,633,250
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,164,835
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 1,544,910
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997, 6.000%, 7/01/27
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 12/06 at 101.50 Baa1 1,122,792
Environmental Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products
Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
16,605 Total Health Care 17,227,282
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.5% (2.3% OF TOTAL INVESTMENTS)
2,250 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 2,321,213
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 8.3% (5.6% OF TOTAL INVESTMENTS)
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+ 1,051,870
4,000 5.500%, 6/01/31 6/11 at 102.00 A+ 4,172,839
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 375 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ $ 354,746
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,375 Total Long-Term Care 5,579,455
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.1% (1.4% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 725,088
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
240 New Jersey, General Obligation Bonds, Series 2005L, No Opt. Call AAA 258,612
5.250%, 7/15/16 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 401,097
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,325 Total Tax Obligation/General 1,384,797
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 20.7% (13.8% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 421,808
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,041,770
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 -
MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 802,988
Hotel Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 -
AMBAC Insured
1,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 1,052,220
Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
530 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 568,075
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
535 Mansfield Township Board of Education, Warren County, 9/06 at 102.00 AAA 546,503
New Jersey, Certificates of Participation, Series 1995,
5.900%, 3/01/15 - MBIA Insured
700 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 732,984
Revenue Bonds, Series 2004, 5.750%, 6/15/34
1,500 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,598,235
Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 -
MBIA Insured
350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 369,523
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
655 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 682,838
Revenue Bonds, Department of Human Services - Greystone
Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 -
AMBAC Insured
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,083,410
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 793,818
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 308,803
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 547,801
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 986,688
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 689,525
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 875,168
System Bonds, Series 2006A, 5.500%, 12/15/22
290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 279,592
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
45
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- $ 520,872
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
13,165 Total Tax Obligation/Limited 13,902,621
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.8% (14.6% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 513,765
Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 629,484
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
505 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 573,902
6.500%, 1/01/16
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,074,700
5.000%, 1/01/19 - FGIC Insured
820 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 837,942
5.000%, 1/01/35 - FSA Insured
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 262,233
Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,076,650
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 2,034,580
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,568,757
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 52,115
------------------------------------------------------------------------------------------------------------------------------------
13,725 Total Transportation 14,624,128
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 21.1% (14.1% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 537,985
625 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 662,650
700 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 742,168
3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,158,789
General Obligation Bonds, Series 2002, 5.000%, 4/15/21
(Pre-refunded 4/15/12) - FGIC Insured
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 714,911
System Bonds, Series 2001B, 5.000%, 12/15/21
(Pre-refunded 12/15/11) - MBIA Insured
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 1,088,850
System Bonds, Series 2003C, 5.500%, 6/15/18
(Pre-refunded 6/15/13)
535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 569,342
System Bonds, Series 2005D, 5.000%, 6/15/19
(Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 194,584
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,781,402
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,060,710
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,495 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa 1,607,140
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,076,170
Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26
(Pre-refunded 7/01/10)
------------------------------------------------------------------------------------------------------------------------------------
13,135 Total U.S. Guaranteed 14,194,701
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 10.3% (6.9% OF TOTAL INVESTMENTS)
650 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 659,061
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA $ 2,376,705
5.250%, 10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 763,463
Control 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 3,100,649
Series 2002II, 5.125%, 7/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,700 Total Utilities 6,899,878
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 5.6% (3.7% OF TOTAL INVESTMENTS)
150 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 158,486
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 528,330
Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 -
FGIC Insured
3,000 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 3,072,630
Authority, Revenue Bonds, Series 2002, 5.000%, 12/01/25 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,650 Total Water and Sewer 3,759,446
------------------------------------------------------------------------------------------------------------------------------------
$ 95,610 Total Investments (cost $97,348,343) - 149.5% 100,392,118
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 1,257,908
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.4)% (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 67,150,026
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
47
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,068,240
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.0% (18.8% OF TOTAL INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,025,440
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 224,802
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,060,810
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,192,121
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,037,040
Educational Facilities Revenue Bonds, Westtown School,
Series 2002, 5.000%, 1/01/26 - AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,215,010
Haverford College, Series 2000, 5.750%, 11/15/29
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2005:
1,000 5.000%, 8/01/12 - MBIA Insured No Opt. Call AAA 1,051,310
1,240 5.000%, 8/01/13 - MBIA Insured No Opt. Call AAA 1,306,588
1,305 5.000%, 8/01/16 - MBIA Insured 8/15 at 100.00 AAA 1,373,760
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,772,329
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 869,240
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,393,111
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 1,042,080
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project, Series
1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 535,479
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 507,794
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 481,331
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 455,626
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 430,695
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,409,283
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 Aaa 8,113,520
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 5,162,250
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,383,211
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,136,600
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 4,019,575
Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 -
MBIA Insured
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 $ 1,019,730
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
3,450 Pennsylvania Higher Educational Facilities Authority, No Opt. Call AA 3,650,756
Revenue Bonds, University of Pennsylvania, Series 2005A,
5.000%, 9/01/14
2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA 2,037,100
Revenue Bonds, University of Pennsylvania, Series 2005C,
5.000%, 7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 3,079,439
Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 -
RAAI Insured
Pennsylvania State University, General Revenue Bonds,
Series 2005:
1,040 5.000%, 9/01/14 No Opt. Call AA 1,100,518
1,560 5.000%, 9/01/15 No Opt. Call AA 1,651,884
6,000 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 AA+ 6,036,300
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
Union County, Higher Education Facilities Financing Authority,
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A:
1,665 5.250%, 4/01/18 4/13 at 100.00 Aa2 1,743,322
1,000 5.250%, 4/01/20 4/13 at 100.00 Aa2 1,056,660
10 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/06 at 100.00 N/R 10,029
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
69,410 Total Education and Civic Organizations 69,584,743
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.5% (6.8% OF TOTAL INVESTMENTS)
1,555 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 1,535,967
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,171,754
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,555,450
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,287,625
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
2,360 Pennsylvania Higher Educational Facilities Authority, Revenue 8/15 at 100.00 AAA 2,475,498
Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 9,701,100
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,225 Philadelphia Hospitals and Higher Education Facilities Authority, 8/06 at 100.00 BBB 1,243,865
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 1,701,968
Bonds, Latrobe Area Hospital, Series 2002A, 5.250%, 7/01/13 -
AMBAC Insured
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 531,473
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 374,003
960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 990,163
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,570,515
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
23,975 Total Health Care 25,139,381
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 3,344,187
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
800 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 793,776
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A,
5.625%, 7/01/35
49
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY (continued)
$ 440 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/06 at 100.00 A2 $ 440,405
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,540 Total Housing/Multifamily 4,578,368
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.9% (2.6% OF TOTAL INVESTMENTS)
2,805 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,806,963
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
3,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,497,025
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(WI/DD, Settling 7/20/06) (Alternative Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 964,886
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,174,839
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,405 Total Housing/Single Family 9,443,713
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.5% (2.9% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,346,600
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,378,800
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 10,725,400
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4% (1.0% OF TOTAL INVESTMENTS)
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,511,820
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/08 at 102.00 N/R 231,603
Health Care Facilities Revenue Bonds, Paul's Run,
Series 1998A, 5.875%, 5/15/28
1,500 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,558,140
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B, 5.250%, 7/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,230 Total Long-Term Care 3,301,563
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,246,883
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19 (Alternative
Minimum Tax)
1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,837,675
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 3,084,558
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.0% (13.0% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,885,680
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,261,688
Obligation Bonds, Series 2003, 5.000%, 5/15/23 -
MBIA Insured
1,255 Cumberland Valley School District, Cumberland County, No Opt. Call Aaa 1,329,886
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/15 - FSA Insured
1,000 Delaware County, Pennsylvania, General Obligation Bonds, 10/09 at 100.00 AA 1,029,320
Series 1999, 5.125%, 10/01/19
2,345 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,439,081
Series 2005, 5.000%, 10/01/20
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 6,590,580
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
7,500 Montgomery County, Pennsylvania, General Obligation Bonds, 7/09 at 100.00 Aaa 7,658,775
Series 1999, 5.000%, 7/15/24
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,057,090
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - MBIA Insured
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,025 Norristown Area School District, Montgomery County, 3/13 at 100.00 Aaa $ 1,061,654
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/19 - FGIC Insured
Pennsylvania, General Obligation Bonds, Second Series 2005:
1,500 5.000%, 1/01/18 1/16 at 100.00 AA 1,574,640
2,100 5.000%, 1/01/19 1/16 at 100.00 AA 2,197,818
4,000 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 4,211,280
5.000%, 10/01/18
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,285,000
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
2,475 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,661,615
Series 2006B, 5.250%, 9/01/16 - FSA Insured
3,390 Pocono Mountain School District, Monroe County, Pennsylvania, 2/13 at 100.00 Aaa 3,550,042
General Obligation Bonds, Series 2003, 5.000%, 2/15/15 -
FGIC Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 Aaa 1,109,644
General Obligation Bonds, Series 2006A, 5.000%, 4/01/22 -
FGIC Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 470,071
Revenue Bonds, Conneaut School District, Series 2003,
5.250%, 11/01/21 - FGIC Insured
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,517,813
General Obligation Bonds, Series 2001A, 5.000%, 4/01/18 -
FSA Insured
415 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 439,585
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19
1,600 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 1,679,344
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,585 Total Tax Obligation/General 48,010,606
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 24.6% (15.9% OF TOTAL INVESTMENTS)
5,045 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,182,426
Pennsylvania, Revenue Bonds, Guaranteed County Building
Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured
Allegheny County Port Authority, Pennsylvania, Special
Transportation Revenue Bonds, Series 2001:
1,000 5.500%, 3/01/17 - FGIC Insured 3/11 at 101.00 AAA 1,067,070
3,500 5.000%, 3/01/29 - FGIC Insured 3/11 at 101.00 AAA 3,554,110
2,700 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 2,742,147
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,765,397
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:
1,800 5.250%, 12/01/14 - MBIA Insured 12/13 at 100.00 AAA 1,926,216
1,500 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,598,865
2,600 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,762,526
2,125 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,253,796
1,000 5.250%, 12/01/19 - MBIA Insured 12/13 at 100.00 AAA 1,059,960
2,125 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,253,796
Subordinate Lien Revenue Bonds, Series 2003B,
5.250%, 12/01/18 - MBIA Insured
Pennsylvania Turnpike Commission, Registration Fee Revenue
Bonds, Series 2005A:
1,900 5.250%, 7/15/16 - FSA Insured No Opt. Call AAA 2,053,786
4,000 5.250%, 7/15/19 - FSA Insured No Opt. Call AAA 4,332,520
10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,283,611
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 2,828,871
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium Authority, 8/09 at 101.00 AAA 4,051,400
Pennsylvania, Sales Tax Revenue Bonds, Regional Asset
District, Series 1999, 5.000%, 2/01/29 - AMBAC Insured
51
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 $ 1,135,660
Tax Increment Financing District Bonds, Center Triangle
Project, Series 1999A, 6.100%, 5/01/19
------------------------------------------------------------------------------------------------------------------------------------
56,745 Total Tax Obligation/Limited 58,852,157
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.8% (7.6% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 661,777
New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,156,795
Revenue Bonds, Lehigh Valley Airport System, Series 2000A,
6.000%, 5/15/30 - MBIA Insured (Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,725,026
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 - ACA Insured
(Alternative Minimum Tax)
2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 2,247,080
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds,
Series 2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 3,966,688
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,033,019
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,101,000
Series 2001B, 5.250%, 6/15/31 - FGIC Insured
(Alternative Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,360,955
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
1,885 Pittsburgh Public Parking Authority, Pennsylvania, Parking No Opt. Call AAA 1,983,095
System Revenue Refunding Bonds, Series 2002,
5.000%, 12/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,150 Total Transportation 28,235,435
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.5% (14.6% OF TOTAL INVESTMENTS) (4)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,751,959
Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) -
FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 1,395,095
Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded
5/01/11) - FGIC Insured
830 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 (4) 886,814
New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
(Pre-refunded 7/01/13)
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AAA 5,300,800
Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) -
MBIA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,715,254
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC Insured
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,854,071
Bonds, Series 2001, 5.000%, 7/15/41 (Pre-refunded 7/15/11) -
AMBAC Insured
760 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 897,036
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,698,010
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded
8/01/12) - FGIC Insured
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,439,343
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
(Pre-refunded 9/15/11) - FGIC Insured
785 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 844,126
Revenue Bonds, Conneaut School District, Series 2003,
5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,151,120
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded 12/15/10) - MBIA Insured
3,605 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 (4) 3,860,486
Pennsylvania, General Obligation Bonds, Series 2003,
5.250%, 2/15/19 (Pre-refunded 2/15/13)
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,570,030
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
5,240 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 6,533,808
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Wilkes-Barre Area School District, Luzerne County, Pennsylvania,
General Obligation Bonds, Series 2003A:
$ 1,700 5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured 4/14 at 100.00 AAA $ 1,829,200
2,050 5.250%, 4/01/20 (Pre-refunded 4/01/14) - MBIA Insured 4/14 at 100.00 AAA 2,205,800
------------------------------------------------------------------------------------------------------------------------------------
49,265 Total U.S. Guaranteed 53,932,952
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.1% (4.6% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,264,825
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
2,015 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,123,407
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,399,965
Pollution Control Revenue Bonds, Pennsylvania Power and
Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,727,955
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
680 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 710,981
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 713,349
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,102,280
General Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 -
FSA Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,878,710
Pollution Control Revenue Refunding Bonds, PSEG Power
Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
16,275 Total Utilities 16,921,472
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 14.5% (9.4% OF TOTAL INVESTMENTS)
2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,286,563
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
1,000 Bucks County Water and Sewerage Authority, Pennsylvania, 12/06 at 100.00 AAA 1,006,720
Collection System Revenue Bonds, Series 1996,
5.550%, 12/01/17 - FGIC Insured
Bucks County Water and Sewerage Authority, Pennsylvania,
Sewerage System Revenue Bonds, Neshaminy Interceptor
Project, Series 2004:
655 5.250%, 6/01/14 - FSA Insured No Opt. Call AAA 703,555
530 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,154,250
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company, Series 2001, 5.350%, 10/01/31 - AMBAC
Insured (Alternative Minimum Tax)
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,528,468
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,520,758
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,481,872
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/20 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,059,320
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,293,338
Revenue Bonds, Series 2004, 5.000%, 4/01/20 - MBIA 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 5,893,628
5,000 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 5,074,200
53
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA $ 2,213,619
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
33,505 Total Water and Sewer 34,786,825
------------------------------------------------------------------------------------------------------------------------------------
$ 353,095 Total Long-Term Investments (cost $357,426,469) - 153.4% 367,665,413
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,500 Puerto Rico Government Development Bank, Adjustable No Opt. Call A-1 1,500,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.870%, 12/01/15 - MBIA Insured (5)
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $358,926,469) - 154.0% 369,165,413
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.1% 2,552,876
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.1)% (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 239,718,289
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
55
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 20.0% (13.2% OF TOTAL INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,067,865
Pennsylvania, College Revenue Bonds, Thiel College,
Series 1999A, 5.375%, 11/15/29 - ACA Insured
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 224,802
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA 1,291,053
Pennsylvania, Revenue Bonds, Duquesne University,
Series 2004A, 5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,100,419
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BB+ 2,984,970
Pennsylvania, College Revenue Bonds, Immaculata College,
Series 1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,622,044
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 796,804
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 1,805,322
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,425,047
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,055,710
3,060 Indiana County Industrial Development Authority, Pennsylvania, 11/14 at 100.00 AAA 3,144,823
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,465,097
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
2,500 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 2,578,400
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/25 - MBIA Insured
4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 4,217,558
Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,238,624
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,027,930
Bonds, LaSalle University, Series 1998, 5.250%, 5/01/23 -
MBIA Insured
2,100 Pennsylvania Higher Educational Facilities Authority, Revenue 6/10 at 100.00 AA 2,225,475
Bonds, Philadelphia University, Series 2000, 6.000%, 6/01/29 -
RAAI Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 3,115,950
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
5,750 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 5,818,367
Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA 2,037,100
Revenue Bonds, University of Pennsylvania, Series 2005C,
5.000%, 7/15/38
1,310 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 AA 1,381,906
Revenue Bonds, Ursinus College, Series 2003,
5.500%, 1/01/24 - RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 985,630
University of the Sciences in Philadelphia Revenue Bonds,
Series 2005, 4.750%, 11/01/33 - XLCA Insured
1,545 State Public School Building Authority, Pennsylvania, 5/15 at 100.00 Aaa 1,608,144
College Revenue Bonds, Montgomery County Community
College, Series 2005, 5.000%, 5/01/18 - AMBAC Insured
55
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 $ 794,753
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/19
25 Wilkes-Barre General Municipal Authority, Pennsylvania, 12/06 at 100.00 N/R 25,074
College Revenue Refunding Bonds, College of Misericordia,
Series 1992B, 7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
44,005 Total Education and Civic Organizations 45,038,867
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.4% (10.8% OF TOTAL INVESTMENTS)
1,455 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 1,437,191
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 14,415,656
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 1,289,126
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB+ 5,242,050
Revenue Bonds, Good Samaritan Hospital Project, Series 2002,
5.900%, 11/15/28
2,425 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,478,787
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,287,625
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
1,765 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 1,851,379
Revenue Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BB+ 1,989,580
2,000 5.625%, 7/01/24 7/08 at 100.00 BB+ 1,972,180
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 1,786,938
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,258,776
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 480,857
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 333,571
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,046,891
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
------------------------------------------------------------------------------------------------------------------------------------
35,845 Total Health Care 36,870,607
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.5% (3.6% OF TOTAL INVESTMENTS)
4,005 Bucks County Redevelopment Authority, Pennsylvania, 8/06 at 100.00 Baa2 4,009,205
Section 8 Assisted Second Lien Multifamily Mortgage
Revenue Bonds, Country Commons Apartments, Series 1993A,
6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 2,048,800
Pennsylvania, Multifamily Housing Revenue Bonds, Darby
Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Mandatory put 4/01/22) (Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A:
2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 AAA 2,108,871
3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 AAA 3,445,526
740 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 734,243
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
12,180 Total Housing/Multifamily 12,346,645
------------------------------------------------------------------------------------------------------------------------------------
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 4.0% (2.7% OF TOTAL INVESTMENTS)
$ 1,125 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa $ 1,158,334
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+ 1,125,533
Revenue Bonds, Series 1996-47, 6.750%, 10/01/06
(Alternative Minimum Tax)
365 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 372,833
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(Alternative Minimum Tax)
1,440 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,441,008
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
3,300 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,297,195
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(WI/DD, Settling 7/20/06) (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 848,566
765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 785,846
------------------------------------------------------------------------------------------------------------------------------------
8,960 Total Housing/Single Family 9,029,315
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (2.1% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 10/06 at 100.00 BB- 1,973,200
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,128,460
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 2,960,128
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 7,061,788
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.7% (2.4% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,012,830
Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 8/06 at 100.00 AA 1,001,610
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,122,100
1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 1,149,497
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/28
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,359,194
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,661,501
------------------------------------------------------------------------------------------------------------------------------------
8,230 Total Long-Term Care 8,306,732
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,177,612
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 521,870
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 4,725,450
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 6,424,932
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 25.4% (16.8% OF TOTAL INVESTMENTS)
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,179,445
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
57
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Cumberland Valley School District, Cumberland County,
Pennsylvania, General Obligation Bonds, Series 2005:
$ 1,250 5.000%, 11/15/15 - FSA Insured No Opt. Call Aaa $ 1,324,588
2,325 5.000%, 11/15/16 - FSA Insured 11/15 at 100.00 Aaa 2,452,852
2,315 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,407,878
Series 2005, 5.000%, 10/01/20
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 782,215
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,197,873
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,161,820
1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,057,090
Pennsylvania, General Obligation Bonds, Series 2000,
5.600%, 3/01/25 - 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 1,035,760
1,000 5.000%, 9/01/20 - FGIC Insured 3/13 at 100.00 Aaa 1,033,420
1,735 9/01/21 - FGIC Insured 3/13 at 100.00 Aaa 1,787,414
2,000 5.000%, 9/01/22 - FGIC Insured 3/13 at 100.00 Aaa 2,056,940
2,270 5.000%, 9/01/23 - FGIC Insured 3/13 at 100.00 Aaa 2,331,994
2,600 5.000%, 9/01/24 - FGIC Insured 3/13 at 100.00 Aaa 2,667,990
1,110 North Hills School District, Allegheny County, Pennsylvania, 12/15 at 100.00 AAA 1,155,388
General Obligation Bonds, Series 2005, 5.000%, 12/15/20 -
FSA Insured
2,115 Owen J. Roberts School District, Chester County, Pennsylvania, 5/16 at 100.00 Aaa 2,187,375
General Obligation Bonds, Series 2006, 5.000%, 5/15/24 -
FSA Insured
Pennsylvania, General Obligation Bonds, Second Series 2005:
2,000 5.000%, 1/01/18 1/16 at 100.00 AA 2,099,520
1,900 5.000%, 1/01/19 1/16 at 100.00 AA 1,988,502
3,200 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 3,369,024
5.000%, 10/01/18
1,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 1,087,470
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,903,580
Series 2006B, 5.250%, 9/01/16 - FSA Insured
3,300 Pocono Mountain School District, Monroe County, Pennsylvania, 2/13 at 100.00 Aaa 3,455,793
General Obligation Bonds, Series 2003, 5.000%, 2/15/15 -
FGIC 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 3,026,924
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,013,474
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,107,753
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 - FSA Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 380,282
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 517,068
2,550 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 2,353,778
Revenue Bonds, York City School District, Series 2003,
4.000%, 5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,583,613
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 1,469,426
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,460 Total Tax Obligation/General 57,176,249
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.2% (8.7% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 1,523,415
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Pennsylvania Turnpike Commission, Oil Franchise Tax Senior
Lien Revenue Bonds, Series 2003A:
$ 1,000 5.250%, 12/01/14 - MBIA Insured 12/13 at 100.00 AAA $ 1,070,120
1,000 5.250%, 12/01/15 - MBIA Insured 12/13 at 100.00 AAA 1,065,910
2,400 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,550,024
2,000 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 2,121,220
1,000 5.250%, 12/01/19 - MBIA Insured 12/13 at 100.00 AAA 1,059,960
2,000 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,121,220
Subordinate Lien Revenue Bonds, Series 2003B,
5.250%, 12/01/18 - MBIA Insured
Pennsylvania Turnpike Commission, Registration Fee Revenue
Bonds, Series 2005A:
1,700 5.250%, 7/15/16 - FSA Insured No Opt. Call AAA 1,837,598
3,800 5.250%, 7/15/19 - FSA Insured No Opt. Call AAA 4,115,894
7,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 7,349,825
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,661,060
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
York County School of Technology Authority, Pennsylvania,
Lease Revenue Bonds, Series 2003:
1,000 5.375%, 2/15/20 - FGIC Insured 2/13 at 100.00 Aaa 1,064,020
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,070,270
------------------------------------------------------------------------------------------------------------------------------------
27,820 Total Tax Obligation/Limited 29,610,536
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.8% (12.4% OF TOTAL INVESTMENTS)
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,342,849
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 - MBIA Insured (Alternative Minimum Tax)
650 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 682,786
and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,864,960
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,651,505
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,774,229
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
10,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 10,193,099
Airport Revenue Bonds, Philadelphia Airport System Project,
Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative
Minimum Tax)
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 6,557,625
Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A,
5.350%, 12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,052,060
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 -
FGIC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,396,895
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,790,919
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,385 Total Transportation 42,306,927
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 12.9% (8.5% OF TOTAL INVESTMENTS) (4)
1,695 Allegheny County Sanitary Authority, Pennsylvania, 12/10 at 101.00 AAA 1,806,124
Sewerage Revenue Bonds, Series 2000, 5.500%, 12/01/30
(Pre-refunded 12/01/10) - MBIA Insured
Butler County, Pennsylvania, General Obligation Bonds,
Series 2003:
1,000 5.250%, 7/15/21 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,073,690
1,200 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,288,428
850 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 908,183
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded 7/01/13)
59
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA $ 2,252,362
Series 2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) -
AMBAC Insured
1,140 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,291,848
College Revenue Bonds, Ninth Series 1976,
7.625%, 7/01/15 (ETM)
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,583,865
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 5,982,933
General Ordinance, Second Series 1999, 5.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 (ETM) No Opt. Call AAA 1,080,380
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,428,758
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
640 5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 688,205
865 5.250%, 11/01/22 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 930,152
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,712,825
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,585 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,976,352
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,076,000
Pennsylvania, General Obligation Bonds, Series 2003A,
5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,575 Total U.S. Guaranteed 29,080,105
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 12.6% (8.4% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,138,343
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,209,919
Exempt Facilities Revenue Bonds, Shippingport Project,
Series 1998A, 5.375%, 6/01/28 - AMBAC Insured
(Alternative Minimum Tax)
2,735 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,882,143
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, Pennsylvania, 5/07 at 102.00 AAA 7,848,894
Pollution Control Revenue Bonds, Metropolitan Edison
Company, Series 1997A, 5.950%, 5/01/27 - AMBAC Insured
(Alternative Minimum Tax)
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 2,094,740
Pollution Control Revenue Refunding Bonds, PSEG Power LLC,
Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,123,426
Pollution Control Revenue Bonds, Pennsylvania Power and
Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,629,649
Pennsylvania, Resource Recovery Revenue Refunding Bonds,
Montgomery County Montenay Project, Series 2002A,
5.250%, 11/01/13 - MBIA Insured
745 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 778,942
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 713,349
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,051,140
General Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
27,575 Total Utilities 28,470,545
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8% (8.5% OF TOTAL INVESTMENTS)
305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 322,989
Revenue Bonds, Series 2000, 5.500%, 12/01/30 - MBIA Insured
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA $ 2,592,475
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,157,720
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
Bucks County Water and Sewerage Authority, Pennsylvania,
Sewerage System Revenue Bonds, Neshaminy Interceptor
Project, Series 2004:
605 5.250%, 6/01/14 - FSA Insured No Opt. Call AAA 649,849
485 5.250%, 6/01/15 - FSA Insured No Opt. Call AAA 522,093
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,708,347
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/23 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,059,320
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,357,106
Revenue Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,870 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/15 at 100.00 AAA 4,056,960
Revenue Bonds, Series 2005, 5.000%, 4/01/17 - FGIC Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,572,453
Water Facility Revenue Bonds, Consumers Water Company,
Shenango Valley Division Project, Series 2000,
6.000%, 7/01/30 - MBIA Insured (Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania, Sewer
Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,178,954
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,618,427
2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,059,180
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,039,160
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
27,730 Total Water and Sewer 28,895,033
------------------------------------------------------------------------------------------------------------------------------------
$ 332,705 Total Investments (cost $331,929,651) - 151.3% 340,618,281
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 2,602,827
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.5)% (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 225,121,108
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
61
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.4% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,068,240
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 32.4% (21.7% OF TOTAL INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 112,401
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 226,841
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,296,485
Revenue Bonds, George School Project, Series 2001,
5.125%, 9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 684,880
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,038,820
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 305,753
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 150,047
1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,394,403
Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 -
FGIC Insured
300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 279,066
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 1,027,610
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/27 - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 1,032,450
Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
220 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 212,060
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,540,980
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
700 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 727,055
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
1,090 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,156,218
Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,225,480
Bonds, Series 2002, 5.250%, 8/15/14
470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/13 at 102.00 BBB- 451,750
Revenue Bonds, Leadership Learning Partners, Series 2005A,
5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 226,099
Revenue Bonds, Richard Allen Prepatory Charter School,
Series 2006, 6.250%, 5/01/33
------------------------------------------------------------------------------------------------------------------------------------
15,545 Total Education and Civic Organizations 16,088,398
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 20.3% (13.6% OF TOTAL INVESTMENTS)
260 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 256,818
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
400 Allegheny County Hospital Development Authority, 11/10 at 102.00 Ba3 473,164
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/30
700 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 710,745
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- $ 2,559,500
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
230 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 229,798
Hospital Revenue Bonds, Fulton County Medical Center
Project, Series 2006, 5.900%, 7/01/40
100 Jeannette Health Services Authority, Pennsylvania, Hospital 11/06 at 102.00 BB- 98,706
Revenue Bonds, Jeannette District Memorial Hospital,
Series 1996A, 6.000%, 11/01/18
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 613,308
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 257,525
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
465 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 487,757
Revenue Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 Aa3 2,317,485
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
70 Philadelphia Hospitals and Higher Education Facilities 8/06 at 100.00 BBB 71,078
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 175,341
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,045,360
Bonds, Monongahela Valley Hospital Project, Series 2002,
5.500%, 6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 785,257
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
9,645 Total Health Care 10,081,842
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 709,373
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
100 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 99,222
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A,
5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 808,595
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.8% (3.9% OF TOTAL INVESTMENTS)
1,650 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,672,952
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1998DD-2, 5.400%, 11/01/29
(Alternative Minimum Tax)
505 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 505,353
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
700 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 699,405
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(WI/DD, Settling 7/20/06) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,855 Total Housing/Single Family 2,877,710
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 7.0% (4.7% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,128,460
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 1,345,513
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 3,473,973
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 13.7% (9.2% OF TOTAL INVESTMENTS)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R 1,086,530
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
63
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 2,100 Lancaster County Hospital Authority, Pennsylvania, 12/11 at 100.00 A- $ 2,179,128
Health Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 276,649
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc., Series 1998A:
240 5.250%, 6/01/14 6/08 at 100.00 BB+ 236,479
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 48,036
2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 2,968,208
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total Long-Term Care 6,795,030
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.3% (2.9% OF TOTAL INVESTMENTS)
350 Allegheny County Industrial Development Authority, No Opt. Call BB 362,222
Pennsylvania, Revenue Bonds, United States Steel
Corporation, Series 2005, 5.500%, 11/01/16
210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 207,814
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 796,777
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory
put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 787,575
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 2,154,388
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 19.2% (12.9% OF TOTAL INVESTMENTS)
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,582,673
General Obligation Bonds, Series 2002, 5.500%, 5/15/18 -
FGIC Insured
750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 797,580
Series 2003A, 5.250%, 11/15/16 - MBIA Insured
2,000 Pennsylvania, General Obligation Bonds, Second 9/11 at 101.00 AA 2,102,120
Series 2001, 5.000%, 9/15/13
300 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 315,846
5.000%, 10/01/18
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,262,410
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
450 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 483,930
Series 2006B, 5.250%, 9/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,915 Total Tax Obligation/General 9,544,559
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 11.7% (7.9% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,031,280
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 1,065,910
Senior Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,082,180
Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,047,730
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,598,040
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A, 5.500%, 4/15/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total Tax Obligation/Limited 5,825,140
------------------------------------------------------------------------------------------------------------------------------------
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.3% (7.6% OF TOTAL INVESTMENTS)
$ 130 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 $ 136,557
New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,057,600
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 434,767
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,783,793
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured
(Alternative Minimum Tax)
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/06 at 100.00 Aaa 2,221,359
Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A,
5.375%, 12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,510 Total Transportation 5,634,076
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 10.9% (7.3% OF TOTAL INVESTMENTS) (4)
170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 181,637
and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
(Pre-refunded 7/01/13)
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,189,422
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17
(Pre-refunded 2/15/12) - FGIC Insured
180 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 212,456
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,719,125
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 1,089,770
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11)
------------------------------------------------------------------------------------------------------------------------------------
4,955 Total U.S. Guaranteed 5,392,410
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (4.3% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call AAA 505,930
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 305,275
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
135 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 141,151
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 142,670
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA 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 1,045,340
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,043,490
------------------------------------------------------------------------------------------------------------------------------------
3,060 Total Utilities 3,183,856
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS)
500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 518,495
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
65
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA $ 617,796
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,136,291
------------------------------------------------------------------------------------------------------------------------------------
$ 70,745 Total Investments (cost $71,512,586) - 149.1% 74,064,508
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.2% 595,191
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.3)% (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 49,659,699
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
66
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of
INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.8% (13.2% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 1,124,010
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
700 Allegheny County Higher Education Building Authority, 8/06 at 100.00 AA- 701,407
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.450%, 3/01/27
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 782,720
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 337,617
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 352,393
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 170,744
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,522,592
Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 -
FGIC Insured
450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 418,599
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 274,714
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
800 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 830,920
Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
2,500 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 2,665,075
Bonds, Series 2002, 5.250%, 8/15/12
530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 509,420
Pennsylvania, Revenue Bonds, Leadership Learning Partners,
Series 2005A, 5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 265,421
Pennsylvania, Revenue Bonds, Richard Allen Prepatory
Charter School, Series 2006, 6.250%, 5/01/33
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,056,660
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
10,600 Total Education and Civic Organizations 11,012,292
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.6% (10.3% OF TOTAL INVESTMENTS)
295 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 291,389
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A, 5.125%, 4/01/35
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 Ba3 118,500
300 9.250%, 11/15/30 11/10 at 102.00 Ba3 354,873
800 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 812,280
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,047,600
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
270 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 269,762
Hospital Revenue Bonds, Fulton County Medical Center
Project, Series 2006, 5.900%, 7/01/40
120 Jeannette Health Services Authority, Pennsylvania, Hospital 11/06 at 102.00 BB- 118,447
Revenue Bonds, Jeannette District Memorial Hospital,
Series 1996A, 6.000%, 11/01/18
600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 613,308
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
465 Pennsylvania Higher Educational Facilities Authority, 8/15 at 100.00 AAA 487,757
Revenue Bonds, University of Pennsylvania Health Services,
Series 2005B, 5.000%, 8/15/16 - FGIC Insured
67
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 $ 75,453
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,000 Philadelphia Hospitals and Higher Education Facilities 8/06 at 100.00 BBB 1,015,400
Authority, Pennsylvania, Hospital Revenue Bonds, Temple
University Hospital, Series 1993A, 6.625%, 11/15/23
225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 232,070
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,561,664
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 26,355
600 6.250%, 1/01/32 1/12 at 100.00 BBB 628,206
------------------------------------------------------------------------------------------------------------------------------------
8,320 Total Health Care 8,653,064
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.2% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 810,712
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
120 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 119,066
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A,
5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 929,778
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 2.5% (1.6% OF TOTAL INVESTMENTS)
575 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 575,402
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 799,320
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(WI/DD, Settling 7/20/06) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
1,375 Total Housing/Single Family 1,374,722
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.8% (3.9% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,229,230
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.2% (3.4% OF TOTAL INVESTMENTS)
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,203,614
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 1,086,530
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 276,649
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A:
260 5.250%, 6/01/14 6/08 at 100.00 BB+ 256,186
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 48,036
------------------------------------------------------------------------------------------------------------------------------------
2,750 Total Long-Term Care 2,871,015
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.6% (3.0% OF TOTAL INVESTMENTS)
400 Allegheny County Industrial Development Authority, No Opt. Call BB 413,968
Pennsylvania, Revenue Bonds, United States Steel Corporation,
Series 2005, 5.500%, 11/01/16
280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 277,085
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%, 12/01/19
(Alternative Minimum Tax)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,062,370
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11)
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R $ 787,575
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 2,540,998
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 24.2% (16.1% OF TOTAL INVESTMENTS)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,833,873
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 -
FGIC Insured
625 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 650,075
Series 2005, 5.000%, 10/01/20
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 4,393,720
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 774,307
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,066,880
3,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 3,419,826
Series 2001, 5.000%, 11/15/15
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 471,306
Series 2002B, 0.000%, 11/15/21 - MBIA Insured
300 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 322,620
Series 2006B, 5.250%, 9/01/16 - FSA Insured
500 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 524,795
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
13,270 Total Tax Obligation/General 13,457,402
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.2% (17.4% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,031,280
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,073,960
Pennsylvania, Revenue Bonds, County Guaranteed, Woodland
Place Project, Series 2002, 5.400%, 3/01/31 - FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue 9/11 at 100.00 Aaa 4,106,320
Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Oil Franchise 12/13 at 100.00 AAA 1,065,910
Tax Senior Lien Revenue Bonds, Series 2003A,
5.250%, 12/01/15 - MBIA Insured
1,200 Pennsylvania Turnpike Commission, Registration Fee No Opt. Call AAA 1,298,616
Revenue Bonds, Series 2005A, 5.250%, 7/15/18 -
FSA Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,056,780
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 1,065,360
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,861,143
------------------------------------------------------------------------------------------------------------------------------------
13,950 Total Tax Obligation/Limited 14,559,369
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.2% (3.5% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 136,557
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,057,600
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 693,557
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,005,230
Airport System Revenue Bonds, Series 2003A,
5.000%, 1/01/28 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Transportation 2,892,944
------------------------------------------------------------------------------------------------------------------------------------
69
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS June 30, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.5% (16.3% OF TOTAL INVESTMENTS) (4)
$ 2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA $ 2,136,600
Series 2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) -
FGIC Insured
170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 181,637
and New Jersey, Revenue Bonds, Series 2003,
5.250%, 7/01/17 (Pre-refunded 7/01/13)
275 Moon Area School District, Allegheny County, Pennsylvania, No Opt. Call AAA 293,587
General Obligation Bonds, Series 2004, 5.250%, 11/15/13 -
FSA Insured (ETM)
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 2,111,820
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,176,359
Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) -
AMBAC Insured
75 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 88,523
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,152,100
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) -
FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,447,851
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
35 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 38,142
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11)
------------------------------------------------------------------------------------------------------------------------------------
12,670 Total U.S. Guaranteed 13,626,619
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.7% (3.8% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 337,409
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 167,290
Eighteenth Series 2004, 5.000%, 8/01/13 - AGC Insured
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 147,765
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,520,793
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,040 Total Utilities 3,173,257
------------------------------------------------------------------------------------------------------------------------------------
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.5% (6.3% OF TOTAL INVESTMENTS)
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA $ 4,677,437
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 617,796
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 5,295,233
------------------------------------------------------------------------------------------------------------------------------------
$ 80,225 Total Investments (cost $80,736,358) - 150.4% 83,615,923
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.9% 481,071
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 55,596,994
====================================================================================================================
(1) All percentages shown in the Portfolio of Investments
are based on net assets applicable to Common shares
unless otherwise noted.
(2) Optional Call Provisions (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. Certain
mortgage-backed securities may be subject to periodic
principal paydowns.
(3) Ratings (not covered by the report of independent
registered public accounting firm): Using the higher of
Standard & Poor's or Moody's rating. Ratings below BBB
by Standard & Poor's Group or Baa by Moody's Investor
Service, Inc. are considered to be below investment
grade.
(4) Backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities which
ensure the timely payment of principal and interest.
Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
71
Statement of
ASSETS AND LIABILITIES June 30, 2006
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $448,513,588, $261,916,788,
$140,032,200 and $97,348,343, respectively) $456,556,627 $267,306,838 $143,161,390 $100,392,118
Cash -- -- 80,877 518,796
Receivables:
Interest 6,591,049 4,029,956 2,213,583 1,518,060
Investments sold -- 95,000 -- --
Other assets 31,958 31,887 322 222
------------------------------------------------------------------------------------------------------------------------------------
Total assets 463,179,634 271,463,681 145,456,172 102,429,196
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 415,234 445,398 -- --
Payable for investments purchased 2,837,810 993,746 993,746 727,381
Accrued expenses:
Management fees 236,907 140,737 46,160 28,447
Other 103,147 67,847 23,116 15,839
Preferred share dividends payable 47,526 16,508 15,626 7,503
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,640,624 1,664,236 1,078,648 779,170
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $297,539,010 $178,199,445 $ 96,377,524 $ 67,150,026
====================================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,564,168 4,516,812
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.53 $ 14.79 $ 14.68 $ 14.87
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,642 $ 45,168
Paid-in surplus 289,027,855 172,022,510 93,191,603 64,057,075
Undistributed (Over-distribution of) net investment income (337,401) 515,769 139,151 41,782
Accumulated net realized gain (loss) from investments and
derivative transactions 600,674 150,621 (148,062) (37,774)
Net unrealized appreciation (depreciation) of
investments 8,043,039 5,390,050 3,129,190 3,043,775
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $297,539,010 $178,199,445 $ 96,377,524 $ 67,150,026
====================================================================================================================================
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.
72
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $358,926,469, $331,929,651,
$71,512,586 and $80,736,358, respectively) $369,165,413 $340,618,281 $74,064,508 $83,615,923
Cash 1,565,552 491,970 255,151 3,179
Receivables:
Interest 4,753,677 4,421,346 1,084,529 1,327,816
Investments sold -- 5,411,863 -- --
Other assets 32,629 36,229 163 184
------------------------------------------------------------------------------------------------------------------------------------
Total assets 375,517,271 350,979,689 75,404,351 84,947,102
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Payable for investments purchased 3,500,000 7,459,606 700,000 800,000
Accrued expenses:
Management fees 192,479 177,948 23,974 23,549
Other 80,909 84,966 12,539 14,503
Preferred share dividends payable 25,594 36,061 8,139 12,056
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,798,982 7,758,581 744,652 850,108
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $239,718,289 $225,121,108 $49,659,699 $55,596,994
====================================================================================================================================
Common shares outstanding 16,301,498 15,826,751 3,321,138 3,724,790
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.71 $ 14.22 $ 14.95 $ 14.93
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 158,268 $ 33,211 $ 37,248
Paid-in surplus 230,741,367 216,526,567 47,129,409 52,797,234
Undistributed (Over-distribution of) net investment income (603,568) (110,182) 68,404 (83,424)
Accumulated net realized gain (loss) from investments and
derivative transactions (821,469) (142,175) (123,247) (33,629)
Net unrealized appreciation (depreciation) of
investments 10,238,944 8,688,630 2,551,922 2,879,565
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $239,718,289 $225,121,108 $49,659,699 $55,596,994
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
73
Statement of
OPERATIONS Year Ended June 30, 2006
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 22,346,450 $ 12,975,406 $ 6,980,326 $ 4,989,618
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,932,222 1,748,294 939,552 662,374
Preferred shares - auction fees 405,718 229,274 120,143 86,353
Preferred shares - dividend disbursing agent fees 30,000 26,603 10,000 10,000
Shareholders' servicing agent fees and expenses 49,124 28,931 2,076 1,888
Custodian's fees and expenses 125,950 72,367 42,944 31,366
Directors'/Trustees' fees and expenses 9,704 4,979 3,212 2,278
Professional fees 26,665 19,466 15,116 13,453
Shareholders' reports - printing and mailing expenses 53,151 25,867 18,242 15,885
Stock exchange listing fees 10,288 10,149 558 384
Investor relations expense 47,016 26,525 16,441 12,018
Other expenses 35,661 18,422 15,685 13,046
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,725,499 2,210,877 1,183,969 849,045
Custodian fee credit (67,167) (29,197) (17,438) (15,833)
Expense reimbursement -- -- (424,010) (310,768)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,658,332 2,181,680 742,521 522,444
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 18,688,118 10,793,726 6,237,805 4,467,174
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 2,924,752 1,016,202 484,326 178,837
Net increase from payments by the Adviser
for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (18,288,152) (11,273,653) (5,541,649) (3,595,338)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (15,363,400) (10,257,451) (5,057,323) (3,416,501)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,729,225) (1,991,793) (1,154,022) (861,957)
From accumulated net realized gains (599,726) (454,296) (82,061) (57,711)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (4,328,951) (2,446,089) (1,236,083) (919,668)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares from operations $ (1,004,233) $ (1,909,814) $ (55,601) $ 131,005
====================================================================================================================================
See accompanying notes to financial statements.
74
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 17,579,842 $ 16,819,465 $ 3,650,014 $ 4,110,056
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,379,304 2,204,767 486,311 548,422
Preferred shares - auction fees 330,395 295,665 62,575 71,418
Preferred shares - dividend disbursing agent fees 30,000 31,616 10,000 10,000
Shareholders' servicing agent fees and expenses 53,922 43,648 2,563 2,338
Custodian's fees and expenses 95,008 100,425 27,825 28,389
Directors'/Trustees' fees and expenses 7,991 7,429 1,578 1,877
Professional fees 22,514 22,257 12,101 12,510
Shareholders' reports - printing and mailing expenses 49,845 33,900 12,431 15,377
Stock exchange listing fees 10,136 10,224 281 317
Investor relations expense 38,396 37,601 8,663 10,105
Other expenses 29,560 17,304 12,856 12,200
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 3,047,071 2,804,836 637,184 712,953
Custodian fee credit (57,357) (43,739) (8,720) (12,703)
Expense reimbursement -- -- (218,799) (257,305)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 2,989,714 2,761,097 409,665 442,945
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 14,590,128 14,058,368 3,240,349 3,667,111
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (822,081) (44,620) (47,126) 239,396
Net increase from payments by the Adviser
for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- 27,169 -- --
Change in net unrealized appreciation
(depreciation) of investments (13,473,894) (12,682,405) (2,528,439) (3,414,928)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (14,295,975) (12,699,856) (2,575,565) (3,175,532)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,413,477) (2,800,234) (637,236) (715,207)
From accumulated net realized gains (261,069) (435,619) (40,350) (47,059)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (3,674,546) (3,235,853) (677,586) (762,266)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ (3,380,393) $ (1,877,341) $ (12,802) $ (270,687)
====================================================================================================================================
See accompanying notes to financial statements.
75
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
6/30/06 6/30/05 6/30/06 6/30/05 6/30/06 6/30/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 18,688,118 $ 19,481,237 $ 10,793,726 $ 11,306,412 $ 6,237,805 $ 6,400,915
Net realized gain (loss)
from investments 2,924,752 3,339,508 1,016,202 4,268,639 484,326 1,221,262
Net realized gain (loss)
from forward swaps -- -- -- -- -- (201,571)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment
restrictions -- -- -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (18,288,152) 19,532,836 (11,273,653) 7,825,789 (5,541,649) 6,136,129
Distributions to Preferred
Shareholders:
From net investment income (3,729,225) (2,081,219) (1,991,793) (1,150,783) (1,154,022) (658,577)
From accumulated net
realized gains (599,726) (107,515) (454,296) (121,121) (82,061) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (1,004,233) 40,164,847 (1,909,814) 22,128,936 (55,601) 12,898,158
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (16,230,307) (19,283,118) (9,510,935) (11,079,485) (5,512,880) (6,070,304)
From accumulated net
realized gains (4,917,869) (2,241,452) (3,721,776) (2,620,075) (678,056) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (21,148,176) (21,524,570) (13,232,711) (13,699,560) (6,190,936) (6,070,304)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 608,791 770,952 159,660 -- 122,384 22,984
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 608,791 770,952 159,660 -- 122,384 22,984
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (21,543,618) 19,411,229 (14,982,865) 8,429,376 (6,124,153) 6,850,838
Net assets applicable to Common
shares at the beginning
of year 319,082,628 299,671,399 193,182,310 184,752,934 102,501,677 95,650,839
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $297,539,010 $319,082,628 $178,199,445 $193,182,310 $ 96,377,524 $102,501,677
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ (337,401) $ 934,719 $ 515,769 $ 1,224,771 $ 139,151 $ 568,730
====================================================================================================================================
See accompanying notes to financial statements.
76
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
6/30/06 6/30/05 6/30/06 6/30/05 6/30/06 6/30/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 4,467,174 $ 4,539,226 $ 14,590,128 $ 15,081,033 $ 14,058,368 $ 14,629,139
Net realized gain (loss)
from investments 178,837 545,334 (822,081) 3,033,351 (44,620) 5,554,834
Net realized gain (loss)
from forward swaps -- (143,801) -- -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment
restrictions -- -- -- -- 27,169 --
Change in net unrealized appreciation
(depreciation) of investments (3,595,338) 5,262,530 (13,473,894) 13,962,464 (12,682,405) 8,419,347
Distributions to Preferred
Shareholders:
From net investment income (861,957) (500,033) (3,413,477) (2,017,435) (2,800,234) (1,647,195)
From accumulated net
realized gains (57,711) (13,577) (261,069) (138,958) (435,619) (131,391)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 131,005 9,689,679 (3,380,393) 29,920,455 (1,877,341) 26,824,734
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (3,899,566) (4,140,074) (11,533,314) (14,534,163) (12,127,724) (14,724,745)
From accumulated net realized gains (424,522) (237,176) (1,732,849) (2,308,550) (3,389,440) (2,842,911)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,324,088) (4,377,250) (13,266,163) (16,842,713) (15,517,164) (17,567,656)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 111,985 -- -- -- 142,460 661,012
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 111,985 -- -- -- 142,460 661,012
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (4,081,098) 5,312,429 (16,646,556) 13,077,742 (17,252,045) 9,918,090
Net assets applicable to Common
shares at the
beginning of year 71,231,124 65,918,695 256,364,845 243,287,103 242,373,153 232,455,063
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $67,150,026 $71,231,124 $239,718,289 $256,364,845 $225,121,108 $242,373,153
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 41,782 $ 337,234 $ (603,568) $ (246,293) $ (110,182) $ 759,544
====================================================================================================================================
See accompanying notes to financial statements.
77
Statement of
CHANGES IN NET ASSETS (continued)
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
----------------------------- ----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/06 6/30/05 6/30/06 6/30/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,240,349 $ 3,275,260 $ 3,667,111 $ 3,626,330
Net realized gain (loss) from investments (47,126) 1,620,266 239,396 320,219
Net realized gain (loss) from forward
swaps -- (232,654) -- (164,341)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments (2,528,439) 2,111,728 (3,414,928) 3,889,901
Distributions to Preferred Shareholders:
From net investment income (637,236) (327,355) (715,207) (416,243)
From accumulated net realized gains (40,350) (58,447) (47,059) (9,192)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations (12,802) 6,388,798 (270,687) 7,246,674
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,902,469) (3,171,680) (2,942,584) (3,283,404)
From accumulated net realized gains (336,361) (1,198,780) (363,540) (159,790)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (3,238,830) (4,370,460) (3,306,124) (3,443,194)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 199,614 144,217 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 199,614 144,217 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (3,052,018) 2,162,555 (3,576,811) 3,803,480
Net assets applicable to Common
shares at the beginning of year 52,711,717 50,549,162 59,173,805 55,370,325
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of year $49,659,699 $52,711,717 $55,596,994 $59,173,805
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of year $ 68,404 $ 367,990 $ (83,424) $ (92,744)
====================================================================================================================================
See accompanying notes to financial statements.
78
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 or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service establishes fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or a forward
swap contract, each Fund may use a market price or fair market value quote
provided by a major broker/dealer in such investments. If it is determined that
the market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At June 30, 2006, New Jersey
Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend
Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Investment
Quality (NQP), Pennsylvania Premium Income 2 (NPY), Pennsylvania Dividend
Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) had outstanding
when-issued and/or delayed delivery purchase commitments of $2,837,810,
$993,746, $993,746, $727,381, $3,500,000, $3,300,000, $700,000 and $800,000,
respectively.
79
Notes to
FINANCIAL STATEMENTS (continued)
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. All monthly tax-exempt income dividends paid during the fiscal
year ended June 30, 2006, have been designated Exempt Interest Dividends. Net
realized capital gains and ordinary income distributions paid by the Funds are
subject to federal taxation.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
80
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
================================================================================
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount. At June 30, 2006, the Funds did not have any forward swap contracts
outstanding.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
81
Notes to
FINANCIAL STATEMENTS (continued)
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
6/30/06 6/30/05 6/30/06 6/30/05 6/30/06 6/30/05
-------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 39,742 49,812 10,167 -- 7,907 1,445
=======================================================================================================
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
6/30/06 6/30/05 6/30/06 6/30/05 6/30/06 6/30/05
--------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due
to reinvestment
of distributions 6,973 -- -- -- 9,155 42,619
========================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
------------------------ --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
6/30/06 6/30/05 6/30/06 6/30/05
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 12,400 8,948 -- --
=========================================================================================================
82
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments)
during the fiscal year ended June 30, 2006, 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 $80,015,159 $32,573,373 $23,444,821 $13,089,363
Sales and maturities 85,956,723 36,610,204 24,386,344 13,227,918
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Purchases $76,175,081 $63,255,812 $9,133,693 $12,099,518
Sales and maturities 76,554,764 70,729,962 8,771,575 11,329,277
============================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At June 30, 2006, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------
Cost of investments $448,498,438 $261,770,538 $140,007,326 $97,357,151
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Cost of investments $358,915,740 $331,763,928 $71,522,654 $80,742,838
============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at June 30, 2006, 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 $11,803,436 $ 7,819,248 $4,018,530 $3,438,912
Depreciation (3,745,247) (2,282,948) (864,466) (403,945)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ 8,058,189 $ 5,536,300 $3,154,064 $3,034,967
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $12,197,024 $10,989,788 $2,822,407 $3,147,123
Depreciation (1,947,351) (2,135,435) (280,553) (274,038)
------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $10,249,673 $ 8,854,353 $2,541,854 $2,873,085
============================================================================================================
83
Notes to
FINANCIAL STATEMENTS (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at June 30, 2006, 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 * $872,824 $1,111,531 $530,422 $323,035
Undistributed net ordinary income ** -- 3,495 -- 127
Undistributed net long-term capital gains 600,674 150,621 42,218 18,098
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $250,835 $638,543 $272,260 $142,807
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term capital gains -- 1,345 -- 39,039
============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on June 1, 2006, paid on July 3, 2006.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the tax years ended June 30, 2006
and June 30, 2005, 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
2006 (NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $20,266,148 $11,621,963 $6,701,392 $4,803,247
Distributions from net ordinary income ** -- 9,989 -- 124
Distributions from net long-term capital gains *** 5,517,595 4,174,209 760,117 482,233
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2006 (NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,205,803 $15,141,147 $3,570,220 $3,664,279
Distributions from net ordinary income ** 8,580 41,520 -- --
Distributions from net long-term capital gains *** 1,984,315 3,816,421 357,090 410,598
============================================================================================================
84
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2005 (NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $21,476,819 $12,307,476 $6,771,438 $4,644,877
Distributions from net ordinary income ** -- 3,453 -- 44
Distributions from net long-term capital gains 2,348,967 2,741,196 -- 250,753
============================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2005 (NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $16,672,670 $16,397,456 $3,485,060 $3,731,320
Distributions from net ordinary income ** 17,181 90,448 20,509 --
Distributions from net long-term capital gains 2,440,428 2,957,194 1,257,227 168,982
============================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the
earnings and profits of the Funds related to net capital gain to zero for
the tax period ended June 30, 2006.
At June 30, 2006, the following Funds has 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:
PENNSYLVANIA PENNSYLVANIA
INVESTMENT DIVIDEND
QUALITY ADVANTAGE
(NQP) (NXM)
--------------------------------------------------------------------------------
Expiration year
2014 $124,650 $15,555
--------------------------------------------------------------------------------
Total $124,650 $15,555
================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2005 through June 30, 2006 ("post-October losses") in
accordance with Federal income tax regulations. The following post-October
losses are treated as having arisen on the first day of the following fiscal
year:
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
DIVIDEND DIVIDEND INVESTMENT PREMIUM DIVIDEND DIVIDEND
ADVANTAGE ADVANTAGE 2 QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NXJ) (NUJ) (NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------
$167,478 $22,828 $696,819 $143,520 $72,480 $43,833
====================================================================================================
85
Notes to
FINANCIAL STATEMENTS (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on
the amount of assets within each individual fund. This pricing structure enables
Nuveen fund shareholders to benefit from growth in the assets within each
individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA INVESTMENT QUALITY (NQP)
(INCLUDING NET ASSETS PENNSYLVANIA PREMIUM INCOME 2 (NPY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
(INCLUDING NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of June 30, 2006, the complex-level fee rate was .1887%.
86
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion (2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
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 their 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
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised Funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
Funds.
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
87
Notes to
FINANCIAL STATEMENTS (continued)
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
As a result of certain trading errors that occurred during the fiscal year ended
June 30, 2006, Pennsylvania Premium Income 2 (NPY) was reimbursed $27,169 by the
Adviser to offset losses on the disposal of investments in violation of
investment restrictions.
6. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Interpretation No. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN
48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. At this time, management is
evaluating the implications of FIN 48 and does not expect the adoption of FIN 48
will have a significant impact on the net assets or results of operations of the
Funds.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on August 1, 2006, to shareholders of record
on July 15, 2006, 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 $.0575 $.0605 $.0645 $.0660
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0515 $.0555 $.0665 $.0635
================================================================================
88
Financial
HIGHLIGHTS
89
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
----------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
NEW JERSEY INVESTMENT
QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 $15.61 $ .91 $ (.75) $(.18) $(.03) $ (.05) $(.79) $(.24) $(1.03)
2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
NEW JERSEY PREMIUM
INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16) (.79) (.31) (1.10)
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94)
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03 (.86) (.09) (.95)
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(a) 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:
2006 $ -- $14.53 $13.70 (3.62)% (.31)%
2005 -- 15.61 15.25 15.13 13.81
2004 -- 14.69 14.19 (4.09) 1.26
2003 -- 15.65 15.94 11.68 10.72
2002 -- 15.07 15.22 4.19 6.56
NEW JERSEY PREMIUM
INCOME (NNJ)
-----------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.79 14.16 (3.36) (1.04)
2005 -- 16.05 15.76 19.43 12.31
2004 -- 15.35 14.19 (5.65) .85
2003 -- 16.28 16.10 10.18 10.48
2002 -- 15.60 15.50 7.88 7.91
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.68 14.35 (.78) (.05)
2005 -- 15.63 15.38 19.97 13.80
2004 -- 14.59 13.63 (5.13) 1.20
2003 .01 15.35 15.30 15.09 13.18
2002 -- 14.38 14.12 (.17) 6.05
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.87 14.90 (.49) .25
2005 -- 15.79 15.90 23.39 15.00
2004 -- 14.62 13.74 (4.81) 1.02
2003 -- 15.44 15.40 9.14 13.74
2002(a) (.14) 14.46 15.04 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:
2006 $297,539 1.21% 6.05% 1.19% 6.08% 17%
2005 319,083 1.21 6.22 1.20 6.23 15
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
NEW JERSEY PREMIUM
INCOME (NNJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 178,199 1.19 5.81 1.18 5.83 12
2005 193,182 1.18 5.91 1.17 5.92 21
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
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 96,378 1.19 5.83 .75 6.28 16
2005 102,502 1.19 5.94 .74 6.39 17
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
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 67,150 1.23 5.99 .76 6.47 13
2005 71,231 1.23 6.09 .77 6.54 11
2004 65,919 1.25 6.41 .79 6.87 11
2003 69,616 1.23 6.53 .76 7.00 12
2002(a) 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:
2006 $162,000 $25,000 $70,917
2005 162,000 25,000 74,241
2004 162,000 25,000 71,246
2003 162,000 25,000 73,915
2002 162,000 25,000 72,038
NEW JERSEY PREMIUM
INCOME (NNJ)
--------------------------------------------------------------------
Year Ended 6/30:
2006 91,600 25,000 73,635
2005 91,600 25,000 77,724
2004 91,600 25,000 75,424
2003 91,600 25,000 78,376
2002 91,600 25,000 76,144
NEW JERSEY DIVIDEND
ADVANTAGE (NXJ)
--------------------------------------------------------------------
Year Ended 6/30:
2006 48,000 25,000 75,197
2005 48,000 25,000 78,386
2004 48,000 25,000 74,818
2003 48,000 25,000 77,345
2002 48,000 25,000 74,026
NEW JERSEY DIVIDEND
ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------
Year Ended 6/30:
2006 34,500 25,000 73,659
2005 34,500 25,000 76,617
2004 34,500 25,000 72,767
2003 34,500 25,000 75,446
2002(a) 34,500 25,000 72,213
====================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
90-91 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 Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
PENNSYLVANIA INVESTMENT
QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 $15.73 $ .90 $ (.87) $(.21) $(.02) $ (.20) $(.71) $(.11) $(.82)
2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12) (.77) (.21) (.98)
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98)
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07) (.79) (.10) (.89)
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(a) 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:
2006 $ -- $14.71 $12.95 (9.47)% (1.34)%
2005 -- 15.73 15.16 19.53 12.67
2004 -- 14.92 13.58 (9.73) (.38)
2003 -- 15.91 16.01 11.98 14.79
2002 -- 14.70 15.18 6.57 7.34
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.22 12.96 (8.42) (.80)****
2005 -- 15.32 15.16 17.79 11.80
2004 -- 14.74 13.84 (7.22) .94
2003 -- 15.65 16.00 15.09 12.09
2002 -- 14.83 14.79 13.25 8.88
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.95 15.10 (.56) (.01)
2005 -- 15.93 16.14 21.84 13.02
2004 -- 15.32 14.39 (5.95) 1.30
2003 .02 16.25 16.46 18.13 15.95
2002 -- 14.96 14.89 9.10 9.67
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 -- 14.93 14.16 .88 (.46)
2005 -- 15.89 14.90 17.63 13.37
2004 -- 14.87 13.48 (8.58) .29
2003 -- 15.90 15.84 14.38 15.48
2002(a) (.14) 14.64 14.74 (.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:
2006 $239,718 1.23% 5.87% 1.21% 5.89% 20%
2005 256,365 1.23 5.96 1.22 5.97 18
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
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 225,121 1.20 6.01 1.18 6.03 18
2005 242,373 1.19 6.09 1.19 6.10 22
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
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 49,660 1.25 5.90 .80 6.35 12
2005 52,712 1.23 5.82 .78 6.28 13
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
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------------------------
Year Ended 6/30:
2006 55,597 1.24 5.93 .77 6.40 13
2005 59,174 1.23 5.80 .78 6.25 8
2004 55,370 1.24 5.95 .78 6.40 4
2003 59,202 1.25 6.07 .78 6.53 13
2002(a) 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:
2006 $132,000 $25,000 $70,401
2005 132,000 25,000 73,554
2004 132,000 25,000 71,077
2003 132,000 25,000 74,039
2002 132,000 25,000 70,251
PENNSYLVANIA PREMIUM
INCOME 2 (NPY)
---------------------------------------------------------------------
Year Ended 6/30:
2006 118,100 25,000 72,655
2005 118,100 25,000 76,307
2004 118,100 25,000 74,207
2003 118,100 25,000 77,202
2002 118,100 25,000 74,436
PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM)
---------------------------------------------------------------------
Year Ended 6/30:
2006 25,000 25,000 74,660
2005 25,000 25,000 77,712
2004 25,000 25,000 75,549
2003 25,000 25,000 78,591
2002 25,000 25,000 74,306
PENNSYLVANIA DIVIDEND
ADVANTAGE 2 (NVY)
---------------------------------------------------------------------
Year Ended 6/30:
2006 28,500 25,000 73,769
2005 28,500 25,000 76,907
2004 28,500 25,000 73,570
2003 28,500 25,000 76,932
2002(a) 28,500 25,000 72,790
=====================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and reinvested
capital gains distributions, if any, at the average price paid per share at
the time of reinvestment. Total Return on Common Share Net Asset Value is
the combination of changes in Common Share net asset value, reinvested
dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Funds' Total Return on Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable to
Preferred shares.
(a) For the period March 25, 2002 (commencement of operations) through June 30,
2002.
See accompanying notes to financial statements.
92-93 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 Fund is currently set
at nine. 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 (since 1996) and Director of Nuveen Investments, 167
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); formerly, Director
Chicago, IL 60606 Member (1996-2006) of Institutional Capital Corporation; Chairman
and Director (since 1997) of Nuveen Asset Management;
Chairman and Director of Rittenhouse Asset Management,
Inc. (since 1999); Chairman of Nuveen Investments
Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management Consultant. 167
8/22/40 Board member
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 167
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 167
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College and Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
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, Tippie College of Business, University of Iowa (since 167
3/6/48 June 2006); formerly, Dean and Distinguished Professor of Finance,
333 W. Wacker Drive School of Business at the University of Connecticut (2003-2006);
Chicago, IL 60606 previously, Senior Vice President and Director of Research
at the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at Georgetown
University; Director (since 2004) of Xerox Corporation; Director,
SS&C Technologies, Inc. (May 2005 - October 2005).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 165
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
member of the Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical Gardens.
94
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 MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 167
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty;
Board Member, Chair of the Finance Committee and
member of the Audit Committee of Premier Health Partners,
the not-for-profit company of Miami Valley Hospital; Vice
President, Dayton Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which promotes cooperation
on economic development issues; Director, Dayton 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 167
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
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 167
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
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(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 167
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 (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), of Nuveen Asset Management; Managing Director (since
2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; 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. and Symphony Asset Management LLC (since 2003);
Assistant Secretary of Tradewinds NWQ Global Investors, LLC
(since 2006); Chartered Financial Analyst.
95
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(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 167
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 167
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen Investments, LLC 167
11/28/67 and of Nuveen Investments, Inc. (since 1999); Vice President
333 W. Wacker Drive and Treasurer of Nuveen Asset Management (since 2002)
Chicago, IL 60606 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. and Symphony Asset
Management LLC (since 2003); Treasurer, Tradewinds NWQ
Global Investors, LLC (since 2006); formerly, Vice President and
Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 167
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice
President, Head of Investment Operations and Systems,
Scudder Investments Japan, (2000-2002), Senior Vice
President, Head of Plan Administration and Participant
Services, Scudder Investments (1995-2002).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 167
9/24/64 and Secretary Assistant General Counsel (since 1998)
formerly, Assistant 333 W. Wacker Drive Vice President
(since 1998) of Nuveen Investments, LLC; Chicago, IL 60606
Vice President (2002-2004) and Assistant Secretary
(1998-2004) formerly, Assistant Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Assistant Secretary (since 2005) of
Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 167
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 167
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002) of Nuveen
Investments Advisers Inc.; Chartered Financial Analyst.
96
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(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 167
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 167
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 167
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 167
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President
333 W. Wacker Drive Secretary and Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; 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), Symphony Asset
Management LLC (since 2003) and Tradewinds NWQ Global
Investors, LLC (since 2006).
(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) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) 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.
97
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
The Board of Trustees is responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the
Board of Trustees of the Funds, including the independent Trustees, unanimously
approved the continuance of the Investment Management Agreement between each
Fund and NAM (the "Fund Adviser").
THE APPROVAL PROCESS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by the Fund Adviser and the performance of
each Fund. To assist the Board in its evaluation of the advisory contract with
the Fund Adviser at the May Meeting, the independent Trustees received extensive
materials in advance of their meeting which outlined, among other things:
o the nature, extent and quality of services provided by the Fund
Adviser;
o the organization and business operations of the Fund Adviser,
including the responsibilities of various departments and key
personnel;
o the Fund's past performance, the Fund's performance compared to funds
of similar investment objectives compiled by an independent third
party and to customized benchmarks;
o the profitability of the Fund Adviser and certain industry
profitability analyses for unaffiliated advisers;
o the expenses of the Fund Adviser in providing the various services;
o the advisory fees (gross and net management fees) and total expense
ratios of the Fund, including comparisons of such fees and expenses
with those of comparable, unaffiliated funds based on information and
data provided by Lipper (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") to the
respective Fund (as applicable);
o the advisory fees the Fund Adviser assesses to other types of
investment products or clients;
o the soft dollar practices of the Fund Adviser, if any; and
o from independent legal counsel, a legal memorandum describing, among
other things, the duties of the Trustees under the Investment Company
Act of 1940 (the "1940 Act") as well as the general principles of
relevant state law in reviewing and approving advisory contracts; the
requirements of the 1940 Act in such matters; an adviser's fiduciary
duty with respect to advisory agreements and compensation; the
standards used by courts in determining whether investment company
boards of directors have fulfilled their duties and factors to be
considered by the board in voting on advisory agreements.
At the May Meeting, the Fund Adviser made a presentation to and responded to
questions from the Board. After the presentations and after reviewing the
written materials, the independent Trustees met privately with their legal
counsel to review the Board's duties in reviewing advisory contracts and
consider the renewal of the advisory contracts. It is with this background that
the Trustees considered the advisory contract with the Fund Adviser. The
independent Trustees, in consultation with independent counsel, reviewed the
factors set out in judicial decisions and SEC directives relating to the renewal
of advisory contracts. As outlined in more detail below, the Trustees considered
all factors they believed relevant with respect to each Fund, including the
following: (a) the nature, extent and quality of the services to be provided by
the Fund Adviser; (b) the investment performance of the Fund and the Fund
Adviser; (c) the costs of the services to be provided and profitability of the
Fund Adviser and its affiliates; (d) the extent to which economies of scale
would be realized as the Fund grows; and (e) whether fee levels reflect these
economies of scale for the benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In reviewing the Fund Adviser, the Trustees considered the nature, extent and
quality of the Fund Adviser's services. The Trustees reviewed materials
outlining, among other things, the Fund Adviser's organization and business; the
types of services that the Fund Adviser or its affiliates provide and are
expected to provide to the Funds; the performance record of the applicable Fund
(as described in further detail below); and any initiatives and enhancements
Nuveen has taken for its municipal fund product line. In connection with their
continued service as Trustees, the Trustees also have a good understanding of
the Fund Adviser's organization, operations and personnel. In this regard, the
Trustees are familiar with and have evaluated the professional experience,
qualifications and credentials of the Fund Adviser's personnel. The Trustees
further reviewed materials describing, among other things, the teams and
98
personnel involved in the investment, research, risk-management and operational
processes involved in managing municipal funds and their respective functions.
Given the Trustees' experience with the Funds and Fund Adviser, the Trustees
recognized the demonstrated history of care and depth of experience of the
respective personnel in managing these Funds. In this regard, the Trustees
considered the continued quality of the Fund Adviser's investment process in
making portfolio management decisions as well as additional refinements and
improvements adopted to the portfolio management processes noted below. With
respect to the services provided to municipal funds, including the Funds, the
Trustees noted that the Fund Adviser continues to make refinements to its
portfolio management process including, among other things, the increased use of
derivatives to enhance management of risk, additional analytical software for
research staff and improved municipal pricing processes.
In addition to advisory services, the independent Trustees considered the
quality of any administrative or non-advisory services provided. The Fund
Adviser provides the Funds with such administrative and other services
(exclusive of, and in addition to, any such services provided by others for the
Funds) and officers and other personnel as are necessary for the operations of
the respective Fund. In connection with the review of the Investment Management
Agreement, the Trustees considered the extent and quality of these other
services which include, among other things, providing: product management (e.g.,
product positioning, performance benchmarking, risk management); fund
administration (e.g., daily net asset value pricing and reconciliation, tax
reporting, fulfilling regulatory filing requirements); oversight of third party
service providers; administration of board relations (e.g., organizing board
meetings and preparing related materials); compliance (e.g., monitoring
compliance with investment policies and guidelines and regulatory requirements);
and legal support (e.g., helping prepare and file registration statements,
amendments thereto, proxy statements and responding to regulatory requests
and/or inquiries). As the Funds operate in a highly regulated industry and given
the importance of compliance, the Trustees considered, in particular, the
additions of experienced personnel to the compliance teams and the enhancements
to technology and related systems to support the compliance activities for the
Funds (including a new reporting system for quarterly portfolio holdings).
In addition to the foregoing, the Trustees also noted the additional services
that the Fund Adviser or its affiliates provide to closed-end funds, including,
in particular, secondary market support activities. The Trustees recognized
Nuveen's continued commitment to supporting the secondary market for the common
shares of its closed-end funds through a variety of initiatives designed to
raise investor and analyst awareness and understanding of closed-end funds.
These efforts include providing advertising and other media relations programs,
continued contact with analysts, maintaining and enhancing its website for
closed-end funds, and targeted advisor communication programs. With respect to
funds that utilize leverage through the issuance of preferred shares, the
Trustees noted Nuveen's continued support for the preferred shares by
maintaining, among other things, an in-house preferred trading desk; designating
a product manager whose responsibilities include creating and disseminating
product information and managing relations in connection with the preferred
share auction; and maintaining systems necessary to test compliance with rating
agency requirements.
Based on their review, the Trustees found that, overall, the nature, extent and
quality of services provided (and expected to be provided) to the respective
Funds under the Investment Management Agreement were of a high level and were
satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER
The Board considered the investment performance for each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives identified by an independent third party (the
"Performance Peer Group") and portfolio level performance against customized
benchmarks, as described below. In evaluating the performance information, in
certain instances, the Trustees noted that the closest Performance Peer Group
for a Fund still may not adequately reflect such Fund's investment objectives,
strategies and portfolio duration, thereby limiting the usefulness of the
comparisons of such Fund's performance with that of the Performance Peer Group.
With respect to state specific municipal funds, the Trustees recognized that
certain state municipal funds do not have a corresponding state specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. The closed-end state
municipal funds that do not have corresponding state-specific Performance Peer
Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts,
Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of
state-specific unleveraged categories, certain unleveraged state municipal funds
are included in their leveraged state category (such as the Nuveen California
Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New
York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund).
In reviewing performance, the Trustees reviewed performance information
including, among other things, total return information compared with the Fund's
Performance Peer Group for the one-, three- and five-year periods (as
applicable) ending December 31, 2005. The Trustees also reviewed the Fund's
portfolio level performance (which does not reflect fund level fees and
expenses) compared to customized portfolio-level benchmarks for the one- and
three-year periods ending December 31, 2005 (as applicable). This analysis is
designed to assess the efficacy of investment decisions against appropriate
measures of risk and total return, within specific market segments. This
information supplements the Fund performance information provided to the Board
at each of their quarterly meetings. Based on their review, the Trustees
determined that the respective Fund's absolute and relative investment
performance over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses of a Fund, the Board
reviewed, among other things, the Fund's advisory fees (net and gross
management fees) and total expense ratios (before and after expense
reimbursements and/or waivers) in absolute terms as well as comparisons to
the gross management fees (before waivers), net management fees (after
waivers) and total expense ratios (before and after waivers) of comparable
funds in the Peer Universe and the Peer Group. The Trustees reviewed data
regarding the construction of Peer Groups as well as the methods of
measurement for the fee and expense analysis and the performance analysis.
In certain cases, due to the small number of peers in the Peer Universe,
the Peer Universe and Peer Group
99
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
may be the same. Further, the Trustees recognized that in certain cases the
closest Peer Universe and/or Peer Group did not adequately reflect the
Fund's investment objectives and strategies limiting the usefulness of
comparisons. In reviewing comparisons, the Trustees also considered the
size of the Peer Universe and/or Peer Group, the composition of the Peer
Group (including differences in the use of leverage and insurance) as well
as differing levels of fee waivers and/or expense reimbursements. In this
regard, the Trustees considered the fund-level and complex-wide breakpoint
schedules (described in further detail below) and any fee waivers and
reimbursements provided by Nuveen (applicable, in particular, for certain
funds launched since 1999). Based on their review of the fee and expense
information provided, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further reviewed data comparing the advisory fees of the Fund
Adviser with fees the Fund Adviser charges to other clients, including
municipal managed accounts. In general, the fees charged for separate
accounts are somewhat lower than the fees assessed to the Funds. The
Trustees recognized that the differences in fees are attributable to a
variety of factors, including the differences in services provided, product
distribution, portfolio investment policies, investor profiles, account
sizes and regulatory requirements. The Trustees noted, in particular, that
the range of services provided to the Funds is more extensive than that
provided to managed separate accounts. As described in further detail
above, such additional services include, but are not limited to, providing:
product management, fund administration, oversight of third party service
providers, administration of board relations, and legal support. Funds
further operate in a highly regulated industry requiring extensive
compliance functions compared to the other investment products. In addition
to the costs of the additional services, administrative costs may also be
greater for funds as the average account size for separate accounts is
notably larger than the retail accounts of funds. Given the differences in
the product structures, particularly the extensive services provided to
closed-end municipal funds, the Trustees believe such facts justify the
different levels of fees.
3. PROFITABILITY OF FUND ADVISER
In conjunction with its review of fees, the Trustees also considered the
profitability of Nuveen Investments for advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees
reviewed data comparing Nuveen's profitability with other fund sponsors
prepared by three independent third party service providers as well as
comparisons of the revenues, expenses and profits margins of various
unaffiliated management firms with similar amounts of assets under
management prepared by Nuveen. The Trustees further reviewed the 2005
Annual Report for Nuveen Investments. In considering profitability, the
Trustees recognized the inherent limitations in determining profitability
as well as the difficulties in comparing the profitability of other
unaffiliated advisers. Profitability may be affected by numerous factors,
including the methodology for allocating expenses, the adviser's business
mix, the types of funds managed, the adviser's capital structure and cost
of capital. Further, individual fund or product line profitability of other
sponsors is generally not publicly available. Accordingly, the
profitability information that is publicly available from various
investment advisory or management firms may not be representative of the
industry.
Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed
Nuveen's methodology and assumptions for allocating expenses across product
lines to determine profitability. In this regard, the methods of allocation used
appeared reasonable. The Trustees also, to the extent available, compared
Nuveen's profitability margins (including pre- and post-marketing profit
margins) with the profitability of various unaffiliated management firms. The
Trustees noted that Nuveen's profitability is enhanced due to its efficient
internal business model. The Trustees also recognized that while a number of
factors affect profitability, Nuveen's profitability may change as fee waivers
and/or expense reimbursement commitments of Nuveen to various funds in the
Nuveen complex expire. To keep apprised of profitability and developments that
may affect profitability, the Trustees have requested profitability analysis be
provided periodically during the year. Based on their review, the Trustees were
satisfied that the Fund Adviser's level of profitability was reasonable in light
of the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to the Fund Adviser as well as any indirect
benefits (such as soft dollar arrangements, if any) the Fund Adviser and its
affiliates are expected to receive that are directly attributable to their
management of the Funds, if any. See Section E below for additional information.
Based on their review of the overall fee arrangements of the applicable Fund,
the Trustees determined that the advisory fees and expenses of the respective
Fund were reasonable.
100
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Trustees recognized the potential
benefits resulting from the costs of a fund being spread over a larger asset
base as a fund grows. To help ensure the shareholders share in these benefits,
the Trustees have reviewed and considered the breakpoints in the advisory fee
schedules that reduce advisory fees as the applicable Fund's assets grow. In
addition to advisory fee breakpoints as assets in a respective Fund rise, after
lengthy discussions with management, the Board also approved a complex-wide fee
arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Trustees considered, among
other things, the historic and expected fee savings to shareholders as assets
grow, the amount of fee reductions at various asset levels, and that the
arrangement would extend to all funds in the Nuveen complex. The Trustees noted
that 2005 was the first full year to reflect the fee reductions from the complex
wide fee arrangement. The Trustees also considered the impact, if any, the
complex-wide fee arrangement may have on the level of services provided. Based
on their review, the Trustees concluded that the breakpoint schedule and
complex-wide fee arrangement currently was acceptable and desirable in providing
benefits from economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits the Fund Adviser or its affiliates may receive as a result of its
relationship with each Fund. In this regard, the Trustees considered revenues
received by affiliates of the Fund Adviser for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Trustees considered whether the Fund Adviser
received any benefits from soft dollar arrangements. With respect to NAM, the
Trustees noted that NAM does not currently have any soft dollar arrangements and
does not pay excess brokerage commissions (or spreads on principal transactions)
in order to receive research services; however, the Fund Adviser may from time
to time receive and have access to research generally provided to institutional
clients.
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that the Fund Adviser's fees are reasonable in light of the
services provided to each Fund, and that the renewal of the Investment
Management Agreements should be approved.
101
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 EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
then-current market price. If the shares are trading at less than net asset
value, shares for your account will be purchased on the open market. Dividends
and distributions received to purchase shares in the open market will normally
be invested shortly after the dividend payment date. No interest will be paid on
dividends and distributions awaiting reinvestment. Because the market price of
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
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.
102
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
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
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
103
Photo of: 2 women looking at a photo album.
Nuveen Investments:
SERVING Investors
For GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $149 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 six distinct brands:
Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading
institutional manager of market-neutral alternative investment portfolios; Santa
Barbara, a leader in growth equities; and NWQ Tradewinds, a leader in Global
equities.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/CEF o Interactive planning tools
Logo: NUVEEN Investments
EAN-B-0606D
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. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has 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 is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Pennsylvania Investment Quality 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 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 to its
accountant 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 (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
----------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 15,474 $ 0 $ 400 $ 2,900
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 14,603 $ 0 $ 443 $ 2,700
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees".
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees", "Audit Related Fees", and "Tax Fees".
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 Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("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 tables also show 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 (1) SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 0 $ 2,200 $ 0
------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------
June 30, 2005 $ 0 $ 2,200 $ 0
------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$275,000 in 2006 and $282,575 in 2005.
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. 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's
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 FEE OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
--------------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 3,300 $ 2,200 $ 0 $ 5,500
June 30, 2005 $ 3,143 $ 2,200 $ 0 $ 5,343
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
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.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
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 registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn Steeves Nuveen Pennsylvania Investment Quality Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Cathryn Steeves Registered Investment Company 67 $12.98 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of June 30, 2006. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of August 30, 2006, the S&P/Investortools Municipal Bond index was
comprised of 47,346 securities with an aggregate current market value of $879
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he/she
serves as portfolio manager relative to any benchmarks established for those
accounts, his/her effectiveness in communicating investment performance to
stockholders and their representatives, and his/her contribution to the NAM
investment process and to the execution of investment strategies. The cash bonus
component is also impacted by the overall performance of Nuveen Investments,
Inc. in achieving its business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager. In addition,
NAM has adopted a Code of Conduct that sets forth policies regarding conflicts
of interest.
Beneficial Ownership of Securities. As of the June 30, 2006, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the Registrant and other Nuveen Funds managed by NAM's municipal
investment team.
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DOLLAR
RANGE OF
DOLLAR EQUITY
RANGE OF SECURITIES
EQUITY BENEFICIALLY
SECURITIES OWNED IN
BENEFICIALLY THE
OWNED IN REMAINDER
FUND OF NUVEEN
FUNDS
MANAGED BY
NAM'S
MUNICIPAL
INVESTMENT
NAME OF PORTFOLIO MANAGER FUND TEAM
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Cathryn Steeves Nuveen Pennsylvania Investment Quality Municipal Fund $0 $10,001-$50,000
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PORTFOLIO MANAGER BIO:
Cathryn Steeves, PhD is currently a portfolio manager for 68 state-specific
municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst
in the healthcare sector. Cathryn has an undergraduate degree from Wake Forest
University, an MA, MPhil and a PhD from Columbia University.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
During this reporting period, the registrant's Board of Trustees implemented a
change to the procedures by which shareholders may recommend nominees to the
registrant's board of trustees by amending the registrant's by-laws to include a
provision specifying the date by which shareholder nominations for election as
trustee at a subsequent meeting must be submitted to the registrant.
Shareholders must deliver or mail notice to the registrant not less than
forty-five days nor more than sixty days prior to the first anniversary date of
the date on which the registrant first mailed its proxy materials for the prior
year's annual meeting; provided, however, if and only if the annual meeting is
not scheduled to be held within a period that commences thirty days before the
first anniversary date of the annual meeting for the preceding year and ends
thirty days after such anniversary date (an annual meeting date outside such
period being referred to as an "Other Annual Meeting Date" hereafter), the
shareholder notice must be given no later than the close of business on the date
forty-five days prior to such Other Annual Meeting Date or the tenth business
day following the date such Other Annual Meeting Date is first publicly
announced or disclosed. The shareholder's notice must be in writing and set
forth the name, age, date of birth, business address, residence address and
nationality of the person(s) being nominated and the class or series, number of
all shares of the registrant owned of record or beneficially be each such
person(s), any other information regarding such person required by Item 401 of
Regulation S-K or Item 22 of Rule 14a-101 (Schedule 14A) under the Securities
Exchange Act of 1934, as amended, any other information regarding the person(s)
to be nominated that would be required to be disclosed in a proxy statement or
other filings required to be made in connection with solicitation of proxies for
election of trustees, and whether such shareholder believes any nominee is or
will be an "interested person" (as that term is defined in the Investment
Company Act of 1940, as amended) of the registrant or sufficient information to
enable the registrant to make that determination and the written and signed
consent of the person(s) to be nominated.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. 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 the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Pennsylvania Investment Quality Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: September 8, 2006
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: September 8, 2006
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By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: September 8, 2006
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* Print the name and title of each signing officer under his or her signature.