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 811-21449
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Nuveen Municipal High Income Opportunity Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(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: October 31
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Date of reporting period: October 31, 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 October 31, 2006
Nuveen Investments
Municipal Closed-End Funds
NUVEEN INVESTMENT
QUALITY MUNICIPAL
FUND, INC.
NQM
NUVEEN SELECT
QUALITY MUNICIPAL
FUND, INC.
NQS
NUVEEN QUALITY
INCOME MUNICIPAL
FUND, INC.
NQU
NUVEEN PREMIER
MUNICIPAL INCOME
FUND, INC.
NPF
NUVEEN MUNICIPAL
HIGH INCOME
OPPORTUNITY FUND
NMZ
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DEPENDABLE,
TAX-FREE INCOME BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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LOGO: NUVEEN Investments
Photo: 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 Managers' Comments, the
Dividend and Share Price Information, and the Performance Overview sections
of this report.
For some time, I've used these letters to remind you that 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
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.
For more information about this important investment strategy, I encourage
you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the Internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues to
be to assist you and your financial advisor by offering investment services
and products that can help you to secure your financial objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2006
Nuveen Investments Municipal Closed-End Funds
NQM, NQS, NQU, NPF, NMZ
Portfolio Managers'
COMMENTS
Portfolio managers Paul Brennan, Tom Spalding, and John Miller discuss U.S.
economic and municipal market conditions, key investment strategies, and the
annual performance of these five national Funds. With 17 years of investment
experience, Paul assumed portfolio management responsibility for NQM and NPF in
July 2006. A 30-year veteran of Nuveen, Tom has managed NQS and NQU since 2003.
John, who has 13 years of municipal market experience, has managed NMZ since its
inception in 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED OCTOBER 31, 2006?
In response to market concerns about oil prices, inflation, and the actions of
the Federal Reserve over the past 12 months, bond yields exhibited some
volatility during this reporting period, with longer-term rates hitting a peak
in June 2006 before falling sharply for the remainder of the period. For the
period as a whole, interest rates at the shorter end of the yield curve
generally continued to rise, while longer rates ended the period close to where
they began it or even declined. As short-term rates approached and exceeded the
levels of long-term rates, the taxable yield curve became increasingly flat and
subsequently inverted. Consequently, bonds with longer durations1 generally
outperformed those with shorter durations during this period.
Between November 1, 2005 and October 31, 2006, the Federal Reserve announced six
increases of 0.25% each in the fed funds rate before pausing to leave monetary
policy unchanged at the August-October 2006 sessions of its Open Market
Committee. The increases raised the short-term target by 150 basis points, from
3.75% to 5.25%, its highest level since March 2001. During this same period, the
yield on the benchmark 10-year U.S. Treasury note rose just four basis points to
end October 2006 at 4.60%. In contrast, in the municipal market, the yield on
the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term
municipal market rates, fell to 4.78% at the end of October 2006, a decline of
43 basis points from the end of October 2005.
Economic growth over the past year reflected the fluctuations in interest rates,
energy prices, and the effects of a softening housing market. After expanding at
a rate of 1.8% in the fourth quarter of 2005, the U.S. gross domestic product
(GDP) rebounded sharply with a 5.6% gain in the first quarter of 2006 before
moderating to a pace of 2.6% in the second quarter of 2006 (all GDP numbers
annualized). In the third quarter of 2006, the rate of GDP growth slowed to
2.2%, largely as the result of an 18% slump in residential investment, the
largest decrease in 15 years. Despite the recent slowdown in economic
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
4
growth, the markets continued to keep a close eye on inflation trends. While
declining energy prices contributed to a benign 1.3% year-over-year increase in
the Consumer Price Index as of October 2006, the core rate (which excludes food
and energy prices) rose 2.7% for the same period. In general, the jobs picture
remained positive, with national unemployment at 4.4% in October 2006, down from
4.9% in October 2005, the lowest level since May 2001.
Over the 12 months ended October 2006, municipal bond issuance nationwide
totaled $367.1 billion, down 8% from the previous 12 months. This total
reflected the general decrease in the issuance of municipal paper during 2006.
After reaching record levels in calendar year 2005, municipal issuance declined
during the first 10 months of 2006, with $295.1 billion in new securities coming
to market, off 12.5% from the same period in 2005. A major factor in 2006's drop
was the sharp reduction in pre-refunding volume, which fell almost 50% from last
year's levels. Overall, demand for municipal bonds, especially those offering
higher yields, continued to be strong and broad-based, with retail investors,
institutional investors such as hedge funds and arbitragers, and foreign
participants all taking part in the market.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As the yield curve flattened over this 12-month period, we continued to
emphasize careful management of the Funds'underlying portfolios in line with our
established targets. This included pursuing a disciplined approach to duration
management and yield curve positioning. While the areas of the yield curve we
targeted varied according to the differing duration needs of the Funds, in
general we were buying attractively priced bonds with premium coupons2 maturing
in 15 to 20 years in NQM and NPF, 20 to 30 years in NQS and NQU, and 25 to 30
years in NMZ.
We also broadened the scope of our investment performance strategies to
emphasize bonds that would not only help us maintain the Funds' durations within
a preferred strategic range but also provide greater income-generating
potential, such as those with different types of coupon structures. We added
inverse floaters to NQU, NPF and NMZ during this period which added duration to
our portfolios. (Inverse floaters are bonds with coupons structured to move in
the opposite direction of interest rates. For example, if market interest rates
decline, the interest rate earned by the inverse floater will rise. An inverse
floater increases the market rate risk and modified duration of the investment.)
2 Premium coupon bonds are credits that, at the time of purchase, are trading
above their par values because their coupons are higher than current coupon
levels. Historically, these bonds have held their value better than current
coupon bonds when interest rates rise.
5
Since late 2004, we have also used hedging strategies, including interest rate
swap agreements, in funds where we believed this would help support our overall
investment performance strategies, especially our income strategies and our
duration (interest rate risk) objectives. As discussed in previous shareholder
reports, the goal of these hedging strategies is to help us manage the funds'
durations (and price sensitivity) within a preferred range without having a
negative impact on their income streams or common share dividends over the short
term. In line with this objective, we deployed these strategies in NPF during
this reporting period.
Although issuance nationwide declined during this period, the reduction in
issuance did not have a major impact on the implementation of this or other
strategies we had planned for these Funds. Much of the new issuance was highly
rated and/or insured, and the majority of our new purchases in NQS and NQU, were
higher-rated credits, while we increased our BBB holdings in both NQM and NPF.
The new BBB investments were concentrated in health care, tobacco and Industrial
Development Revenue Bonds. In NMZ, which was established as a high-yield Fund
that can invest up to 50% of its portfolio in subinvestment-grade quality
municipal credits, one of our top priorities during this period was individual
credit selection, which we believe is critical in this segment of the market. In
keeping with the Fund's investment guidelines, our purchase activity generally
focused on lower-rated bonds, using the bottom-up credit selection approach that
we consider the best way to manage high-yield municipal investments.
NQM, NQS, NQU, and NPF also continued to emphasize maintaining their weightings
of lower-quality bonds. However, as credit spreads continued to narrow over this
period and municipal issuance tightened, we generally found fewer attractively
structured lower-rated credit opportunities in the market. This was especially
true during the second half of this reporting period. Overall, these Funds
continued to have good exposure to the lower-rated credit categories.
6
From a sector perspective, we added some uninsured health care names to NQS,
NQU, NQM and NPF primarily dominant providers with strong management and
operating histories, with some purchase activity in NQM and NPF focused on the
essential services sectors. In NMZ, our preferred areas of the market during
this period included airlines, industrial development revenue bonds, electric
co-generation facilities, hospitals, and multifamily housing.
We also continued to keep the Funds well diversified geographically, looking to
states with stronger issuance, including California, Texas, New York, and
Florida, to find more attractive offerings as municipal issuance declined. NQM
and NPF also purchased paper issued in specialty states, such as California, New
York, and Ohio, that have relatively higher income tax levels. Municipal bonds
issued in these specialty states are generally in great demand by in-state
individual investors, which helps to support their value. These bonds also
provide additional liquidity, making it easier for us to execute trades as part
of implementing our strategies. In NMZ, we were buying bonds in both
non-specialty states, including Illinois, Oklahoma, and Nebraska, as well as
specialty states such as New York, Pennsylvania, Maryland, and Massachusetts
when we found attractively priced opportunities.
In NQS and NQU, most of the cash we redeployed during this period came from
called bond holdings, although we also trimmed some of our exposure to
pre-refunded bonds to generate cash for new purchases. NQM and NPF were selling
holdings with shorter durations, including pre-refunded bonds, as well as bonds
with less attractive call features and credits producing lower tax-exempt income
streams as part of our yield curve and income strategies. In NMZ, we also sold
credits with shorter durations, including bonds with short call dates and those
with sinking fund payments. In all of these Funds, part or all of the proceeds
were reinvested out longer on the yield curve, which enabled us to maintain the
Funds' durations within our preferred strategic range and contributed to their
performances during this period.
7
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 10/31/06
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NQM 8.09% 6.63% 6.65%
--------------------------------------------------------------------------------
NQS 6.94% 6.89% 6.93%
--------------------------------------------------------------------------------
NQU 7.07% 6.62% 6.59%
--------------------------------------------------------------------------------
NPF 8.20% 6.54% 6.57%
--------------------------------------------------------------------------------
Lehman Brothers
Municipal
Bond Index3 5.75% 5.05% 5.85%
--------------------------------------------------------------------------------
Lipper General
Leveraged
Municipal Debt
Funds Average4 8.42% 7.00% 6.63%
--------------------------------------------------------------------------------
NMZ 11.34% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
High-Yield Municipal
Bond Index3 11.87% -- --
--------------------------------------------------------------------------------
Lipper High-Yield
Municipal Debt
Funds Average4 10.21% -- --
--------------------------------------------------------------------------------
*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.
For the 12 months ended October 31, 2006, the total returns on net asset value
(NAV) for NQM, NQS, NQU, and NPF exceeded the return on the Lehman Brothers
Municipal Bond Index. NPF and NQM also slightly trailed their Lipper peer group
for this period, while NQS and NQU trailed the peer group average. NMZ
underperformed the Lehman Brothers High-Yield Municipal Bond Index and
outperformed the Lipper High-Yield peer group for the period. In comparing NMZ
with the Lehman High-Yield Municipal Bond Index, it is important to note that
the index is composed of 100% high-yield bonds, while NMZ comprises a maximum of
50% subinvestment-grade bonds offering high yields, with the remainder invested
in investment-grade credits. This difference can be an important factor in NMZ's
performance relative to the index, especially during periods when the high-yield
market outperforms the municipal market as a whole, as was the case during the
12 months ended October 31, 2006.
3 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. The Lehman Brothers High-Yield Municipal Bond Index is an
unleveraged, unmanaged national index comprising municipal bonds rated
below investment grade (i.e., below Baa by Moody's Investors Service and
below BBB by Standard & Poor's or Fitch Ratings). Results for the Lehman
indexes do not reflect any expenses.
4 The Lipper General Leveraged Municipal Debt Funds category average is
calculated using the returns of all closed-end funds in this category for
each period as follows: 1 year, 56; 5 years, 45; and 10 years, 39. Fund and
Lipper returns assume reinvestment of dividends. The Lipper High-Yield
Municipal Debt Funds category average is calculated using the returns of
all 15 closed-end funds in this category for the one-year period. Fund and
Lipper returns assume reinvestment of dividends.
8
Factors that influenced the Funds' returns during this period included yield
curve positioning and duration management, individual credit selection, holdings
of zero coupon bonds, allocations to lower-rated credits, the use of financial
leverage, and advance refunding activity.5
As longer rates declined and the yield curve flattened over the course of this
period, yield curve and duration positioning played an important role in the
performance of these Funds. Overall, bonds in the Lehman Brothers Municipal Bond
Index with maturities between one and four years were the most adversely
impacted by changes in the interest rate environment over this period, as rates
in that part of the curve rose. As a result, these bonds generally
underperformed longer bonds, with issues having maturities between 17 and 22
years and those with maturities 22 years and longer achieving the best returns
for the period. Yield curve positioning, or exposure to those parts of the yield
curve that performed best during this period, helped the Funds' performances. In
general, NQS and NQU were not as well positioned as the other Funds in this
report, with relatively more exposure to the shorter end of the yield curve,
which hindered their performance. We continued to work to strengthen the yield
curve positioning of all of these Funds.
As previously mentioned, during this period the Funds generally increased their
exposure to zero coupon bonds, discount coupon bonds, and inverse floaters,
which generally had a positive impact on the Funds' performances for this
period. Zero coupon bonds, for example, typically have very long durations and
tend to be very sensitive to changes in interest rates. With rates at the long
end of the curve declining throughout much of this 12-month period, zero coupon
bonds in the Lehman Brothers Municipal Bond Index performed very well, exceeding
the return for the general municipal market by almost 500 basis points.
With bonds rated BBB or lower and non-rated bonds generally outperforming other
credit quality sectors during this period, these Funds also 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 caused credit spreads to
tighten. As of October 31, 2006, allocations of bonds rated BBB and lower and
non-rated bonds accounted for 13% of NQM and NQU, and 16% of NQS and NPF. In
addition to its 15% holding of bonds rated BBB, NMZ held
5 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
9
20% in bonds rated BB or lower (subinvestment-grade) and 36% in non-rated bonds,
some of which Nuveen has determined to be of investment-grade quality. Overall,
conditions in the high-yield market were very positive during this period due to
both fundamental (e.g., low incidence of credit defaults; stable economic
environment supportive of credit quality, especially in the municipal market)
and technical factors (e.g., increased demand for high-yield paper, less
issuance). All of this benefited the performance of NMZ's holdings of high-yield
credits during this period.
Among the lower-rated holdings making positive contributions to the Funds' total
returns for this period were industrial development and resource recovery bonds
and health care (including hospitals) credits, which ranked as the top
performing revenue sectors in the Lehman Brothers Municipal Bond Index. Two of
the top-performing hospital bonds in our portfolios during this period were
those issued for West Penn Allegheny Health System in Pennsylvania (in NMZ) and
Knox County hospital revenue bonds issued for Baptist Health System of East
Tennessee (in NQM, NQS, NQU, and NMZ), which is a potential acquisition
candidate by a local for-profit hospital system.
NMZ also had exposure to subinvestment-grade American and Continental airline
bonds, which posted double-digit returns during this period due to reduced fuel
costs, recovery in passenger traffic, and improved competitive positions
resulting from cost-cutting measures. NQS and NQU also held some airline credits
that performed well during this period. Bonds backed by the 1998 master tobacco
settlement agreement, which are generally rated BBB, also contributed to the
Funds' performances. These bonds comprised approximately 4% to 5% of the
portfolios of these five Funds as of October 31, 2006.
Another factor in the annual performance of these Funds, especially relative to
that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of
financial leverage. While leveraging can add volatility to a Fund's NAV and
share price, this strategy can also provide opportunities for additional income
and total return for common shareholders. Over this 12-month reporting period,
the Funds' performances were positively impacted by the leveraging strategy,
although not to the extent we have seen in past years. Over the long term, we
firmly believe that the use of financial leverage should continue to work to the
benefit of these Funds. This is demonstrated by the total return
performances--both absolute and relative to the Lehman Brothers
10
Municipal Bond Index--of NQM, NQS, NQU, and NPF over the 5-year and 10-year
periods ended October 31, 2006.
We also continued to see positive contributions from advance refunding activity,
which benefited these Funds through price appreciation and enhanced credit
quality. In NMZ, one of the larger positions pre-refunded during this period was
the Fund's holding of bonds issued for Pocahontas Parkway Association in
Virginia.
While advance refundings generally enhanced performance for this 12-month
period, the Funds' holdings of older, previously pre-refunded bonds tended to
underperform the general municipal market, due primarily to their shorter
effective maturities. Among the Funds in this report, NQS and NQU had the
largest allocations of pre-refunded bonds going into this period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2006?
Maintaining strong credit quality remained an important requirement. As of
October 31, 2006, NQM, NQS, NQU, and NPF continued to offer excellent credit
quality, with allocations of bonds rated AAA/U.S. guaranteed and AA ranging from
70% in NPF and 78% in NQM to 80% in NQS and 84% in NQU. As noted, NMZ held 20%
of its portfolio in securities rated BB or lower and 36% in non-rated securities
(some of which we deemed to be investment-grade quality) as of October 31, 2006.
The remaining 44% of NMZ's portfolio was invested in investment-grade quality
securities, including an 18% allocation to bonds rated AAA/U.S. guaranteed and
AA.
At the end of October 2006, potential call exposure for the period November 2006
through the end of 2007 ranged from 2% in NPF to 7% in NQU, 8% in NQM, and 9% in
NMZ to 15% in NQS. The number of actual bond calls in all of these Funds depends
largely on future market interest rates.
11
Dividend and Share Price
INFORMATION
As previously noted, these five Funds use leverage to potentially enhance
opportunities for additional income for common shareholders. The benefits of
leveraging are tied in part to the short-term rates that 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 their income streams and
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, were called, or were sold were reinvested then into bonds currently
available in the market, which generally offered lower yields. These factors
resulted in two monthly dividend reductions in NQM, NQS, NQU, and NMZ and three
in NPF over the 12-month period ended October 31, 2006. (Our greater emphasis on
income strategies in NPF over the last part of this reporting period was
rewarded, as the Fund announced a dividend increase effective December 2006.)
Due to capital gains generated by normal portfolio activity such as sales of
appreciated securities and bond calls, common shareholders of NQM received a
long-term capital gains distribution of $0.1434 per share and a net ordinary
income distribution of $0.0019 at the end of December 2005. These distributions
had a slight negative impact on the Fund's earning power per common share and
were 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
investment income as dividends to shareholders. As of October 31, 2006, all of
the Funds in this report, except NPF had positive UNII balances for both
financial statement and tax purposes. NPF had a negative UNII balance for
financial statement purposes and a positive UNII balance for tax purposes.
12
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:
10/31/06 12-MONTH AVERAGE
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NQM -0.70% -3.99%
--------------------------------------------------------------------------------
NQS -0.96% -1.50%
--------------------------------------------------------------------------------
NQU -4.91% -4.23%
--------------------------------------------------------------------------------
NPF -11.31% -10.61%
--------------------------------------------------------------------------------
NMZ +7.81% 6.89%
--------------------------------------------------------------------------------
13
Nuveen Investment Quality Municipal Fund, Inc.
NQM
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 70%
AA 8%
A 9%
BBB 11%
N/R 2%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0735
Dec 0.0735
Jan 0.0735
Feb 0.0735
Mar 0.07
Apr 0.07
May 0.07
Jun 0.0675
Jul 0.0675
Aug 0.0675
Sep 0.0675
Oct 0.0675
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 14.46
14.49
14.42
14.43
14.5
14.44
14.4
14.19
14.15
14.06
14.03
14.14
14.07
14.02
14.08
14.08
14.01
14.03
14.21
14.19
14.17
14.26
14.28
14.17
14.21
14.29
14.33
14.34
14.31
14.14
14.01
14
13.99
14.03
14.02
13.98
14.06
14.23
14.33
14.28
14.4
14.6
14.6
14.6
14.79
15
14.92
14.89
14.88
14.94
14.98
14.95
14.88
14.98
15.05
15.0699
15.08
15.15
15.07
15.08
15.1
15.06
15.12
15.03
15
14.96
14.95
15.07
15
15.01
15.09
15.0499
15.03
15.08
15.09
15.1
15.07
15.19
15.18
15.19
15.28
15.3
15.3
15.12
14.98
14.83
14.72
14.83
14.96
14.96
14.97
15.03
15.1
15.19
15.27
15.32
15.35
15.42
15.48
15.32
15.27
15.21
15.33
15.2
15.16
15.23
15.25
15.11
15.13
15.06
15
14.92
14.9
14.87
14.7
14.73
14.73
14.68
14.7
14.68
14.69
14.73
14.7
14.71
14.71
14.73
14.73
14.72
14.6701
14.64
14.73
14.77
14.8
14.68
14.68
14.69
14.72
14.66
14.64
14.63
14.63
14.6
14.62
14.56
14.66
14.63
14.65
14.8
14.79
14.7
14.65
14.68
14.69
14.64
14.58
14.44
14.32
14.25
14.31
14.25
14.1
14.11
14.05
14.02
14.04
14.13
14.07
14.08
14.15
14.25
14.27
14.23
14.3
14.28
14.29
14.3
14.3
14.3
14.3
14.27
14.37
14.38
14.48
14.56
14.63
14.57
14.6
14.8
14.98
14.99
14.94
14.91
14.99
14.92
14.93
14.96
14.98
14.86
14.86
14.89
14.91
14.92
14.92
14.93
14.95
14.92
15.05
15.07
15.06
15.07
15.09
15.1
15.08
15.07
15.05
15.02
15.07
15.04
15
15.04
15.05
15.12
15.05
15.08
15.05
15.04
15.06
15.17
15.24
15.29
15.26
15.3499
15.3499
15.34
15.38
15.46
15.37
15.3639
15.38
15.51
15.36
15.48
15.38
15.37
15.37
15.55
15.55
15.49
15.54
15.58
15.55
15.6
15.59
15.59
10/31/06 15.6
FUND SNAPSHOT
------------------------------------
Common Share Price $15.60
------------------------------------
Common Share Net Asset Value $15.71
------------------------------------
Premium/(Discount) to NAV -0.70%
------------------------------------
Market Yield 5.19%
------------------------------------
Taxable-Equivalent Yield1 7.21%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $561,471
------------------------------------
Average Effective Maturity on
Securities (Years) 14.83
------------------------------------
Leverage-Adjusted Duration 8.69
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/21/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 15.33% 8.09%
------------------------------------
5-Year 8.01% 6.63%
------------------------------------
10-Year 7.20% 6.65%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 14.1%
------------------------------------
New York 11.9%
------------------------------------
Texas 9.2%
------------------------------------
Illinois 5.8%
------------------------------------
Washington 5.7%
------------------------------------
Minnesota 4.9%
------------------------------------
District of Columbia 4.1%
------------------------------------
Rhode Island 3.6%
------------------------------------
Colorado 3.3%
------------------------------------
Nevada 3.3%
------------------------------------
Georgia 3.0%
------------------------------------
Michigan 2.4%
------------------------------------
Louisiana 2.3%
------------------------------------
Wisconsin 2.2%
------------------------------------
Massachusetts 2.2%
------------------------------------
Indiana 2.1%
------------------------------------
South Carolina 1.6%
------------------------------------
Arkansas 1.6%
------------------------------------
Alaska 1.5%
------------------------------------
Florida 1.4%
------------------------------------
Other 13.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 26.6%
------------------------------------
Health Care 12.9%
------------------------------------
Tax Obligation/Limited 12.6%
------------------------------------
Transportation 11.4%
------------------------------------
Tax Obligation/General 11.2%
------------------------------------
Water and Sewer 6.4%
------------------------------------
Education and Civic
Organizations 4.2%
------------------------------------
Other 14.7%
------------------------------------
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 federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2005 of $0.1453 per share.
14
Nuveen Select Quality Municipal Fund, Inc.
NQS
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 76%
AA 4%
A 4%
BBB 13%
BB or Lower 2%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.077
Dec 0.077
Jan 0.077
Feb 0.077
Mar 0.073
Apr 0.073
May 0.073
Jun 0.0705
Jul 0.0705
Aug 0.0705
Sep 0.0705
Oct 0.0705
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 14.96
14.87
14.85
14.82
14.8
14.82
14.85
14.61
14.61
14.55
14.46
14.45
14.47
14.47
14.56
14.47
14.49
14.5
14.6
14.56
14.56
14.63
14.64
14.74
14.69
14.72
14.66
14.75
14.611
14.46
14.38
14.54
14.6
14.54
14.55
14.58
14.6
14.7799
14.79
14.89
15.1
15.31
15.31
15.35
15.3
15.4
15.45
15.47
15.5
15.5
15.45
15.36
15.45
15.44
15.43
15.4899
15.48
15.44
15.48
15.49
15.48
15.7
15.64
15.66
15.51
15.35
15.33
15.35
15.41
15.6
15.5601
15.4501
15.5
15.51
15.6
15.53
15.39
15.48
15.64
15.73
15.66
15.57
15.61
15.52
15.4
15.57
15.3001
15.29
15.24
15.39
15.55
15.49
15.44
15.63
15.52
15.52
15.41
15.44
15.43
15.44
15.44
15.51
15.5199
15.51
15.47
15.5
15.43
15.41
15.25
15.05
14.99
14.89
14.7
14.66
14.64
14.91
14.94
14.92
14.89
14.86
14.89
14.85
14.9
15.05
15.05
15.05
15.16
15.04
15.06
14.99
15.03
15.02
14.96
14.85
14.91
15.07
15.07
15.03
15.09
15.05
14.9
14.75
14.84
14.82
14.95
14.9
14.8799
15.03
15.14
15.46
15.08
15.09
14.95
15.01
15
14.91
14.98
14.96
14.95
14.97
15.01
14.81
14.74
14.79
14.76
14.72
14.69
14.8
14.95
15.05
15.1
14.95
15.05
15.02
15
14.9
14.89
14.86
14.9
14.81
14.85
14.9
14.92
15.12
15.03
15.15
15.27
15.29
15.3
15.23
15.23
15.26
15.38
15.34
15.37
15.33
15.58
15.41
15.36
15.37
15.32
15.35
15.34
15.37
15.36
15.28
15.38
15.38
15.38
15.45
15.5
15.54
15.66
15.65
15.6
15.54
15.68
15.63
15.66
15.58
15.45
15.58
15.43
15.41
15.42
15.44
15.63
15.6
15.6499
15.74
15.74
15.69
15.69
15.76
15.83
15.75
15.77
15.86
15.82
15.69
15.58
15.55
15.36
15.28
15.25
15.25
15.32
15.33
15.31
15.37
15.39
15.43
15.51
15.54
10/31/06 15.47
FUND SNAPSHOT
------------------------------------
Common Share Price $15.47
------------------------------------
Common Share Net Asset Value $15.62
------------------------------------
Premium/(Discount) to NAV -0.96%
------------------------------------
Market Yield 5.47%
------------------------------------
Taxable-Equivalent Yield1 7.60%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $529,996
------------------------------------
Average Effective Maturity on
Securities (Years) 14.75
------------------------------------
Leverage-Adjusted Duration 7.28
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 10.47% 6.94%
------------------------------------
5-Year 7.94% 6.89%
------------------------------------
10-Year 7.02% 6.93%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Illinois 11.1%
------------------------------------
Texas 10.1%
------------------------------------
New York 9.0%
------------------------------------
Colorado 6.9%
------------------------------------
South Carolina 6.3%
------------------------------------
Michigan 5.6%
------------------------------------
New Jersey 5.0%
------------------------------------
Nevada 4.5%
------------------------------------
Tennessee 4.4%
------------------------------------
New Mexico 3.0%
------------------------------------
California 3.0%
------------------------------------
Alabama 2.6%
------------------------------------
Utah 2.5%
------------------------------------
North Carolina 2.3%
------------------------------------
Washington 2.2%
------------------------------------
District of Columbia 2.1%
------------------------------------
Wisconsin 2.1%
------------------------------------
Oklahoma 1.6%
------------------------------------
Ohio 1.4%
------------------------------------
South Dakota 1.4%
------------------------------------
Other 12.9%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 30.8%
------------------------------------
Utilities 14.4%
------------------------------------
Transportation 14.2%
------------------------------------
Health Care 10.2%
------------------------------------
Tax Obligation/General 9.8%
------------------------------------
Tax Obligation/Limited 6.4%
------------------------------------
Consumer Staples 5.2%
------------------------------------
Other 9.0%
------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
15
Nuveen Quality Income Municipal Fund, Inc.
NQU
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 78%
AA 6%
A 3%
BBB 9%
BB or Lower 3%
N/R 1%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.07
Dec 0.07
Jan 0.07
Feb 0.07
Mar 0.07
Apr 0.07
May 0.07
Jun 0.0665
Jul 0.0665
Aug 0.0665
Sep 0.0635
Oct 0.0635
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 14.37
14.41
14.4
14.37
14.46
14.45
14.26
14.11
14.1
13.95
14.04
14.11
14.01
13.97
13.96
13.9
13.83
13.84
13.93
13.83
13.83
13.87
13.88
13.9099
13.9
13.91
13.95
13.94
13.96
13.79
13.75
13.79
13.75
13.8
13.82
13.88
14.02
14.17
14.38
14.57
14.55
14.67
14.67
14.57
14.72
14.8601
15
15.09
15.09
15.02
15
15.04
15.07
15.02
15.04
15.1
15.2
15.19
15.14
15.13
15.15
15.11
15.2
15.21
15.09
14.97
14.75
14.69
14.76
14.73
14.74
14.7
14.7
14.7
14.76
14.74
14.76
14.78
14.81
14.88
14.84
14.9
14.84
14.8399
14.69
14.72
14.64
14.72
14.84
14.81
14.74
14.75
14.73
14.84
14.88
14.74
14.69
14.72
14.73
14.79
14.81
14.9
14.98
14.85
14.86
14.88
14.9
14.82
14.78
14.73
14.72
14.65
14.68
14.74
14.65
14.78
14.75
14.76
14.86
14.84
14.81
14.87
14.92
15.03
15.03
15
14.96
14.76
14.63
14.68
14.7
14.72
14.73
14.6
14.56
14.56
14.64
14.6
14.54
14.55
14.55
14.48
14.5
14.5
14.65
14.59
14.62
14.72
14.72
14.6
14.48
14.54
14.48
14.56
14.5
14.39
14.3
14.26
14.21
14.18
14.03
14.02
13.9
13.92
14.01
13.9
13.95
13.95
14.04
14.1
14.01
14.03
14.03
14.08
14.08
14.05
14.07
14.06
14.05
14.04
14.18
14.2
14.27
14.47
14.44
14.42
14.56
14.68
14.78
14.82
14.85
14.87
14.94
14.9
14.9
14.92
14.91
14.71
14.76
14.89
14.93
14.87
14.91
14.95
14.99
14.9
15
14.96
14.94
14.95
14.94
14.9
14.99
14.92
14.87
14.87
14.8375
14.85
14.86
14.83
14.79
14.81
14.85
14.86
14.83
14.84
14.91
14.95
14.92
14.96
14.94
14.94
14.94
14.98
15.05
14.98
14.94
14.91
14.85
14.84
14.69
14.69
14.5
14.45
14.42
14.4
14.44
14.47
14.46
14.52
14.61
14.61
14.65
14.72
10/31/06 14.73
FUND SNAPSHOT
------------------------------------
Common Share Price $14.73
------------------------------------
Common Share Net Asset Value $15.49
------------------------------------
Premium/(Discount) to NAV -4.91%
------------------------------------
Market Yield 5.17%
------------------------------------
Taxable-Equivalent Yield1 7.18%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $839,751
------------------------------------
Average Effective Maturity on
Securities (Years) 14.03
------------------------------------
Leverage-Adjusted Duration 8.03
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 6/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 8.55% 7.07%
------------------------------------
5-Year 6.86% 6.62%
------------------------------------
10-Year 6.36% 6.59%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
New York 11.6%
------------------------------------
Texas 11.5%
------------------------------------
Illinois 9.5%
------------------------------------
Washington 6.7%
------------------------------------
South Carolina 5.9%
------------------------------------
California 5.8%
------------------------------------
Massachusetts 5.3%
------------------------------------
New Jersey 4.4%
------------------------------------
Oklahoma 4.4%
------------------------------------
Nevada 3.9%
------------------------------------
Colorado 3.3%
------------------------------------
Pennsylvania 2.4%
------------------------------------
Alabama 2.1%
------------------------------------
North Carolina 1.7%
------------------------------------
Ohio 1.7%
------------------------------------
Louisiana 1.6%
------------------------------------
Indiana 1.6%
------------------------------------
Virginia 1.4%
------------------------------------
Michigan 1.4%
------------------------------------
Other 13.8%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 35.4%
------------------------------------
Tax Obligation/General 14.7%
------------------------------------
Transportation 14.3%
------------------------------------
Utilities 9.9%
------------------------------------
Health Care 6.6%
------------------------------------
Tax Obligation/Limited 5.4%
------------------------------------
Consumer Staples 5.2%
------------------------------------
Other 8.5%
------------------------------------
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 federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
16
Nuveen Premier Municipal Income Fund, Inc.
NPF
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 55%
AA 15%
A 14%
BBB 13%
N/R 3%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.066
Dec 0.0615
Jan 0.0615
Feb 0.0615
Mar 0.0585
Apr 0.0585
May 0.0585
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 13.6
13.59
13.57
13.5
13.58
13.6199
13.45
13.24
13.18
13.08
13.03
13.16
13.25
13.16
13.24
13.22
13.22
13.27
13.35
13.34
13.41
13.34
13.32
13.25
13.3
13.2
13.21
13.19
13.15
13.07
13.13
13.09
13.09
13.09
13.05
13.06
13.05
13.12
13.11
13.12
13.25
13.39
13.39
13.51
13.55
13.66
13.63
13.73
13.71
13.65
13.56
13.58
13.58
13.62
13.69
13.71
13.82
13.83
13.86
13.83
13.74
13.77
13.79
13.7
13.69
13.65
13.69
13.7
13.66
13.7
13.7
13.76
13.77
13.7
13.7
13.77
13.77
13.82
13.82
13.87
13.83
13.81
13.88
13.85
13.69
13.5501
13.58
13.6
13.636
13.61
13.55
13.57
13.47
13.58
13.58
13.65
13.54
13.58
13.56
13.5801
13.65
13.65
13.63
13.61
13.59
13.55
13.62
13.55
13.44
13.45
13.43
13.32
13.34
13.24
13.29
13.3
13.35
13.27
13.21
13.29
13.23
13.24
13.26
13.33
13.33
13.27
13.35
13.3
13.2
13.23
13.25
13.29
13.35
13.2
13.22
13.18
13.22
13.18
13.3
13.25
13.29
13.24
13.19
13.18
13.33
13.3
13.3
13.45
13.49
13.49
13.37
13.22
13.17
13.21
13.14
13.12
13.06
13.05
13.06
13.01
12.92
12.92
12.87
12.86
12.84
12.87
12.83
12.83
12.9
12.99
12.94
12.9599
12.94
12.99
13.1
13.09
13.08
12.95
12.99
12.96
13.05
12.98
13
13.09
13.1
13.08
13.09
13.11
13.17
13.21
13.29
13.25
13.32
13.35
13.35
13.33
13.3301
13.31
13.28
13.44
13.4
13.39
13.43
13.42
13.49
13.5
13.48
13.48
13.5599
13.5
13.58
13.6
13.64
13.55
13.49
13.47
13.57
13.59
13.63
13.55
13.53
13.48
13.48
13.47
13.49
13.55
13.6499
13.63
13.67
13.61
13.6
13.6601
13.6601
13.66
13.71
13.74
13.72
13.67
13.66
13.52
13.48
13.5
13.5
13.5
13.39
13.44
13.44
13.45
13.49
13.54
13.63
13.61
13.65
13.69
10/31/06 13.65
FUND SNAPSHOT
------------------------------------
Common Share Price $13.65
------------------------------------
Common Share Net Asset Value $15.39
------------------------------------
Premium/(Discount) to NAV -11.31%
------------------------------------
Market Yield 4.79%
------------------------------------
Taxable-Equivalent Yield1 6.65%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $309,140
------------------------------------
Average Effective Maturity on
Securities (Years) 15.52
------------------------------------
Leverage-Adjusted Duration 10.23
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 5.93% 8.20%
------------------------------------
5-Year 5.05% 6.54%
------------------------------------
10-Year 5.66% 6.57%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 13.9%
------------------------------------
New York 12.1%
------------------------------------
Illinois 7.3%
------------------------------------
Washington 5.9%
------------------------------------
South Carolina 5.0%
------------------------------------
Wisconsin 3.8%
------------------------------------
Texas 3.6%
------------------------------------
Colorado 3.4%
------------------------------------
Minnesota 3.2%
------------------------------------
Arizona 3.1%
------------------------------------
Maine 2.7%
------------------------------------
Georgia 2.7%
------------------------------------
North Carolina 2.6%
------------------------------------
Indiana 2.5%
------------------------------------
Louisiana 2.4%
------------------------------------
Michigan 2.4%
------------------------------------
New Jersey 2.3%
------------------------------------
Florida 1.8%
------------------------------------
Rhode Island 1.7%
------------------------------------
Nebraska 1.5%
------------------------------------
Alaska 1.4%
------------------------------------
Massachusetts 1.4%
------------------------------------
Other 13.3%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 15.3%
------------------------------------
Utilities 13.4%
------------------------------------
Tax Obligation/General 13.4%
------------------------------------
Tax Obligation/Limited 13.1%
------------------------------------
Health Care 11.9%
------------------------------------
Transportation 7.3%
------------------------------------
Water and Sewer 6.4%
------------------------------------
Education and Civic
Organizations 5.9%
------------------------------------
Other 13.3%
------------------------------------
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 federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
17
Nuveen Municipal High Income Opportunity Fund
NMZ
Performance
OVERVIEW As of October 31, 2006
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
AAA/U.S. Guaranteed 17%
AA 1%
A 11%
BBB 15%
BB or Lower 20%
N/R 36%
Bar Chart:
2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.089
Dec 0.089
Jan 0.089
Feb 0.089
Mar 0.089
Apr 0.089
May 0.089
Jun 0.085
Jul 0.085
Aug 0.085
Sep 0.0815
Oct 0.0815
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/01/05 16.07
16.02
16.03
16.04
16.03
16.02
16.05
15.91
15.81
15.82
15.74
15.76
15.8
16
15.92
15.98
15.93
15.93
16
15.94
15.91
15.96
16
15.9001
15.85
15.9
15.79
15.68
15.52
15.53
15.6
15.65
15.64
15.7
15.72
15.72
15.8
15.8
15.98
16.04
16.12
16.1
16.1
16.11
16.19
16.2
16.23
16.23
16.35
16.29
16.18
16.12
16.29
16.29
16.3
16.44
16.43
16.38
16.26
16.29
16.4
16.48
16.56
16.59
16.74
16.69
16.6
16.62
16.6299
16.62
16.71
16.6699
16.51
16.5
16.43
16.47
16.42
16.42
16.4
16.39
16.45
16.45
16.5
16.75
16.65
16.47
16.59
16.51
16.52
16.65
16.88
16.65
16.64
16.65
16.71
16.8
16.92
17.08
17.08
16.98
16.96
16.92
16.8501
16.98
16.94
17
16.95
16.79
16.7401
16.78
16.75
16.64
16.65
16.62
16.51
16.59
16.53
16.48
16.45
16.66
16.73
16.92
16.94
16.86
16.86
16.92
17.05
16.9201
16.92
17.04
17.06
17.15
17.16
16.98
16.89
16.82
17
16.97
17.09
17.03
17
16.97
17.1
17.05
17.13
17.04
17.12
17.19
17.25
17.19
17.01
17.04
16.97
17.12
16.96
16.82
16.76
16.88
16.88
16.76
16.6
16.64
16.53
16.44
16.3701
16.33
16.2801
16.3
16.36
16.51
16.61
16.49
16.58
16.55
16.49
16.34
16.4
16.5
16.53
16.53
16.46
16.44
16.54
16.65
16.75
16.68
16.7
16.7499
16.73
16.79
16.99
16.99
17.0376
17.07
17.12
17.11
17.1401
17.03
17.04
17.01
16.97
17.08
17.07
17.09
17.19
17.09
17.08
17.09
17.1101
17.14
17.05
17.09
17.13
17.1
17.01
16.86
16.82
16.81
16.93
16.79
16.72
16.67
16.6
16.63
16.6
16.69
16.73
16.78
16.76
16.92
16.88
16.83
16.83
16.99
16.9305
17.07
17.01
17.08
17.1199
17.15
17.1
17.17
17
17.1
17.14
17.12
17.23
17.19
17.25
17.16
17.2
17.2
17.2
17.14
10/31/06 17.25
FUND SNAPSHOT
------------------------------------
Common Share Price $17.25
------------------------------------
Common Share Net Asset Value $16.00
------------------------------------
Premium/(Discount) to NAV 7.81%
------------------------------------
Market Yield 5.67%
------------------------------------
Taxable-Equivalent Yield1 7.88%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $372,700
------------------------------------
Average Effective Maturity on
Securities (Years) 21.14
------------------------------------
Leverage-Adjusted Duration 7.65
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/19/03)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 14.79% 11.34%
------------------------------------
Since
Inception 12.02% 11.17%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 12.0%
------------------------------------
Illinois 8.8%
------------------------------------
Florida 6.5%
------------------------------------
Texas 6.4%
------------------------------------
Colorado 6.2%
------------------------------------
Louisiana 4.9%
------------------------------------
Wisconsin 4.3%
------------------------------------
Oklahoma 3.6%
------------------------------------
Arizona 3.5%
------------------------------------
New Jersey 3.4%
------------------------------------
Pennsylvania 3.4%
------------------------------------
Michigan 3.3%
------------------------------------
Virginia 3.1%
------------------------------------
Ohio 2.9%
------------------------------------
Indiana 2.5%
------------------------------------
Washington 2.5%
------------------------------------
Maryland 2.4%
------------------------------------
Virgin Islands 2.4%
------------------------------------
Nebraska 2.2%
------------------------------------
Minnesota 2.0%
------------------------------------
Other 13.7%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 24.1%
------------------------------------
Tax Obligation/Limited 18.0%
------------------------------------
Housing/Multifamily 10.6%
------------------------------------
U.S. Guaranteed 9.3%
------------------------------------
Utilities 7.7%
------------------------------------
Transportation 6.7%
------------------------------------
Education and Civic
Organizations 5.5%
------------------------------------
Consumer Staples 4.7%
------------------------------------
Other 13.4%
------------------------------------
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 federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the Taxable-Equivalent Yield is lower.
18
Shareholder
MEETING REPORT
The Annual Shareholder Meeting was held on August 1, 2006, at The Northern Trust
Company, 50 South LaSalle Street, Chicago, Illinois 60675.
NQM NQS NQU
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 32,262,436 -- 30,574,610 -- 49,127,614 --
Withhold 209,335 -- 380,474 -- 329,399 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
Lawrence H. Brown
For 32,258,698 -- 30,570,200 -- 49,113,242 --
Withhold 213,073 -- 384,884 -- 343,771 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
Jack B. Evans
For 32,254,582 -- 30,574,549 -- 49,118,250 --
Withhold 217,189 -- 380,535 -- 338,763 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
William C. Hunter
For 32,258,624 -- 30,574,249 -- 49,137,540 --
Withhold 213,147 -- 380,835 -- 319,473 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
David J. Kundert
For 32,264,416 -- 30,575,720 -- 49,142,304 --
Withhold 207,355 -- 379,364 -- 314,709 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
William J. Schneider
For -- 11,340 -- 10,236 -- 16,125
Withhold -- 9 -- 128 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,349 -- 10,364 -- 16,153
====================================================================================================================================
Timothy R. Schwertfeger
For -- 11,340 -- 10,232 -- 16,125
Withhold -- 9 -- 132 -- 28
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,349 -- 10,364 -- 16,153
====================================================================================================================================
Judith M. Stockdale
For 32,270,326 -- 30,577,749 -- 49,129,436 --
Withhold 201,445 -- 377,335 -- 327,577 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
Eugene S. Sunshine
For 32,264,441 -- 30,570,814 -- 49,126,251 --
Withhold 207,330 -- 384,270 -- 330,762 --
------------------------------------------------------------------------------------------------------------------------------------
Total 32,471,771 -- 30,955,084 -- 49,457,013 --
====================================================================================================================================
19
Shareholder
MEETING REPORT (continued)
NPF NMZ
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting voting shares
together together together together
as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 17,501,864 -- 22,773,390 --
Withhold 752,551 -- 58,380 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
Lawrence H. Brown
For 17,488,087 -- 22,762,520 --
Withhold 766,328 -- 69,250 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
Jack B. Evans
For 17,504,047 -- 22,779,490 --
Withhold 750,368 -- 52,280 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
William C. Hunter
For 17,500,742 -- 22,776,040 --
Withhold 753,673 -- 55,730 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
David J. Kundert
For 17,503,813 -- 22,781,070 --
Withhold 750,602 -- 50,700 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
William J. Schneider
For -- 6,088 -- 5,629
Withhold -- -- -- 34
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,088 -- 5,663
====================================================================================================================================
Timothy R. Schwertfeger
For -- 6,088 -- 5,629
Withhold -- -- -- 34
------------------------------------------------------------------------------------------------------------------------------------
Total -- 6,088 -- 5,663
====================================================================================================================================
Judith M. Stockdale
For 17,506,886 -- 22,771,990 --
Withhold 747,529 -- 59,780 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
Eugene S. Sunshine
For 17,494,093 -- 22,776,010 --
Withhold 760,322 -- 55,760 --
------------------------------------------------------------------------------------------------------------------------------------
Total 18,254,415 -- 22,831,770 --
====================================================================================================================================
20
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN SELECT QUALITY MUNICIPAL FUND, INC.
NUVEEN QUALITY INCOME MUNICIPAL FUND, INC.
NUVEEN PREMIER MUNICIPAL INCOME FUND, INC.
NUVEEN MUNICIPAL HIGH INCOME OPPORTUNITY FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Investment Quality Municipal Fund,
Inc., Nuveen Select Quality Municipal Fund, Inc., Nuveen Quality Income
Municipal Fund, Inc., Nuveen Premier Municipal Income Fund, Inc. and Nuveen
Municipal High Income Opportunity Fund (the "Funds") as of October 31, 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 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 also 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 October 31, 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 Investment Quality Municipal Fund, Inc., Nuveen Select Quality Municipal
Fund, Inc., Nuveen Quality Income Municipal Fund, Inc., Nuveen Premier Municipal
Income Fund, Inc., and Nuveen Municipal High Income Opportunity Fund at October
31, 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 the
financial highlights for the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 14, 2006
21
Nuveen Investment Quality Municipal Fund, Inc. (NQM)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.6% (0.4% OF TOTAL INVESTMENTS)
Birmingham Special Care Facilities Financing Authority, Alabama,
Revenue Bonds, Baptist Health System Inc., Series 2005A:
$ 1,200 5.250%, 11/15/20 11/15 at 100.00 Baa1 $ 1,271,244
800 5.000%, 11/15/30 11/15 at 100.00 Baa1 820,752
1,250 Courtland Industrial Development Board, Alabama, Pollution 6/15 at 100.00 BBB 1,288,213
Control Revenue Bonds, International Paper Company,
Series 2005A, 5.000%, 6/01/25
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Alabama 3,380,209
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.3% (1.5% OF TOTAL INVESTMENTS)
4,000 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/10 at 100.00 AAA 4,380,640
Settlement Asset-Backed Bonds, Series 2000,
6.500%, 6/01/31 (Pre-refunded 6/01/10)
Northern Tobacco Securitization Corporation, Alaska, Tobacco
Settlement Asset-Backed Bonds, Series 2006A:
7,000 5.000%, 6/01/32 6/14 at 100.00 Baa3 7,121,240
1,500 5.000%, 6/01/46 6/14 at 100.00 Baa3 1,520,250
------------------------------------------------------------------------------------------------------------------------------------
12,500 Total Alaska 13,022,130
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.1% (0.1% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
200 5.250%, 12/01/24 12/15 at 100.00 BBB 211,686
265 5.250%, 12/01/25 12/15 at 100.00 BBB 280,283
------------------------------------------------------------------------------------------------------------------------------------
465 Total Arizona 491,969
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,610 Arkansas Development Finance Authority, Home Mortgage 7/08 at 101.50 AAA 1,626,261
Revenue Bonds, FNMA/GNMA Mortgage-Backed Securities
Program, Series 1998A, 5.150%, 7/01/17
University of Arkansas, Pine Bluff Campus, Revenue Bonds,
Series 2005A:
3,290 5.000%, 12/01/30 - AMBAC Insured 12/15 at 100.00 Aaa 3,490,756
2,000 5.000%, 12/01/35 - AMBAC Insured 12/15 at 100.00 Aaa 2,114,300
Van Buren County, Arkansas, Sales and Use Tax Revenue
Refunding and Construction Bonds, Series 2000:
1,055 5.600%, 12/01/25 - AMBAC Insured 12/10 at 100.00 Aaa 1,129,050
3,600 5.650%, 12/01/31 - AMBAC Insured 12/10 at 100.00 Aaa 3,861,108
1,000 Washington County, Arkansas, Hospital Revenue Bonds, 2/15 at 100.00 BBB 1,030,600
Washington Regional Medical Center, Series 2005B,
5.000%, 2/01/30
------------------------------------------------------------------------------------------------------------------------------------
12,555 Total Arkansas 13,252,075
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.3% (14.1% OF TOTAL INVESTMENTS)
3,000 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 3,109,140
University of Southern California, Series 2005,
4.750%, 10/01/28
1,000 California Educational Facilities Authority, Revenue Bonds, 11/15 at 100.00 A2 1,051,410
University of the Pacific, Series 2006, 5.000%, 11/01/30
2,500 California Health Facilities Financing Authority, Revenue Bonds, 11/15 at 100.00 A3 2,617,475
Cedars-Sinai Medical Center, Series 2005, 5.000%, 11/15/27
4,285 California Health Facilities Financing Authority, Revenue Bonds, 4/16 at 100.00 A+ 4,471,226
Kaiser Permanante System, Series 2006, 5.000%, 4/01/37
5,925 California State Public Works Board, Lease Revenue Refunding 12/06 at 100.00 Aa2 5,930,096
Bonds, Various University of California Projects, Series 1993A,
5.500%, 6/01/21
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
California Statewide Community Development Authority,
Revenue Bonds, Daughters of Charity Health System,
Series 2005A:
$ 1,000 5.250%, 7/01/30 7/15 at 100.00 BBB+ $ 1,056,950
1,000 5.000%, 7/01/39 7/15 at 100.00 BBB+ 1,027,540
10,000 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A+ 10,735,500
5.250%, 2/01/25
1,900 Chula Vista, California, Industrial Development Revenue Bonds, 6/14 at 102.00 A2 2,068,321
San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
2,675 Commerce Joint Power Financing Authority, California, Tax No Opt. Call AA 2,773,199
Allocation Refunding Bonds, Redevelopment Projects 2 and 3,
Series 2003A, 5.000%, 8/01/28 - RAAI Insured
9,740 Huntington Park Redevelopment Agency, California, Single No Opt. Call AAA 13,882,325
Family Residential Mortgage Revenue Refunding Bonds,
Series 1986A, 8.000%, 12/01/19 (ETM)
5,730 Los Angeles Unified School District, California, General 7/12 at 100.00 AAA 6,212,237
Obligation Bonds, Series 2002E, 5.125%, 7/01/22
(Pre-refunded 7/01/12) - MBIA Insured
1,030 Natomas Union School District, Sacramento County, California, No Opt. Call AAA 1,236,175
General Obligation Refunding Bonds, Series 1999,
5.950%, 9/01/21 - MBIA Insured
15,770 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 21,801,236
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
13,145 Perris, California, GNMA Mortgage-Backed Securities Program No Opt. Call AAA 18,997,943
Single Family Mortgage Revenue Bonds, Series 1988B,
8.200%, 9/01/23 (Alternative Minimum Tax) (ETM)
3,415 Rancho Mirage Joint Powers Financing Authority, California, 7/14 at 100.00 A3 3,806,530
Revenue Bonds, Eisenhower Medical Center, Series 2004,
5.875%, 7/01/26
5,000 Riverside Unified School District, Riverside County, California, 2/12 at 101.00 AAA 5,244,200
General Obligation Bonds, Series 2002A, 5.000%, 2/01/27 -
FGIC Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
250 5.000%, 9/01/21 9/15 at 102.00 Baa3 260,392
275 5.000%, 9/01/23 9/15 at 102.00 Baa3 285,235
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
6,175 0.000%, 1/15/28 - MBIA Insured No Opt. Call AAA 2,403,310
8,135 0.000%, 1/15/34 - MBIA Insured No Opt. Call AAA 2,392,178
17,195 0.000%, 1/15/35 - MBIA Insured No Opt. Call AAA 4,820,618
3,185 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 AAA 3,281,569
4.750%, 5/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
122,330 Total California 119,464,805
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.0% (3.3% OF TOTAL INVESTMENTS)
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 1,035,390
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
400 Colorado Health Facilities Authority, Revenue Bonds, Poudre 3/15 at 100.00 BBB+ 413,748
Valley Health Care, Series 2005F, 5.000%, 3/01/25
50 Colorado Housing Finance Authority, Single Family Program 11/06 at 105.00 Aa2 50,834
Senior Bonds, Series 1996B, 7.450%, 11/01/27
12,450 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 13,434,920
Refunding Bonds, Series 2000A, 6.000%, 11/15/19 -
AMBAC Insured (Alternative Minimum Tax)
3,200 Denver City and County, Colorado, Special Facilities Airport 4/07 at 100.00 N/R 3,298,560
Revenue Bonds, United Air Lines Corporation, Series 1992A,
6.875%, 10/01/32 (Alternative Minimum Tax) (5)
7,865 El Paso County School District 11, Colorado Springs, Colorado, 12/07 at 125.00 AA- (4) 10,055,167
General Obligation Improvement Bonds, Series 1996,
7.125%, 12/01/21 (Pre-refunded 12/01/07)
------------------------------------------------------------------------------------------------------------------------------------
24,965 Total Colorado 28,288,619
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 6.3% (4.1% OF TOTAL INVESTMENTS)
23,745 District of Columbia Water and Sewerage Authority, Public 4/09 at 160.00 AAA 27,612,822
Utility Revenue Bonds, Series 1998, 5.500%, 10/01/23 -
FSA Insured
23
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA (continued)
$ 3,000 District of Columbia, General Obligation Bonds, Series 1998B, No Opt. Call AAA $ 3,525,090
6.000%, 6/01/16 - MBIA Insured
15,950 District of Columbia, Revenue Bonds, Georgetown University, 4/11 at 31.03 AAA 4,097,396
Series 2001A, 0.000%, 4/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
42,695 Total District of Columbia 35,235,308
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,000 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AAA 1,065,770
Revenue Bonds, Series 2005A, 5.000%, 5/01/27 - MBIA Insured
4,230 Brevard County Health Facilities Authority, Florida, Revenue 4/16 at 100.00 A 4,435,451
Bonds, Health First Inc. Project, Series 2005, 5.000%, 4/01/24
1,570 Escambia County Health Facilities Authority, Florida, Health 10/08 at 101.00 BBB+ 1,605,608
Facility Revenue Refunding Bonds, Baptist Hospital and
Baptist Manor, Series 1998, 5.125%, 10/01/19
3,200 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 3,522,976
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
1,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,058,600
Series 2002B, 5.000%, 1/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Florida 11,688,405
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.5% (3.0% OF TOTAL INVESTMENTS)
10,000 Atlanta, Georgia, Airport General Revenue Refunding Bonds, 1/10 at 101.00 AAA 10,724,300
Series 2000A, 5.600%, 1/01/30 (Pre-refunded 1/01/10) -
FGIC Insured
2,710 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 2,883,494
Series 2004, 5.000%, 11/01/23 - FSA Insured
2,000 Dalton Development Authority, Georgia, Revenue Certificates, No Opt. Call AAA 2,348,440
Hamilton Health Care System Inc., Series 1996,
5.500%, 8/15/26 - MBIA Insured
5,980 Fulton County Development Authority, Georgia, Revenue Bonds, 9/11 at 102.00 AAA 6,521,609
Georgia State University - TUFF/Atlanta Housing LLC,
Series 2001A, 5.500%, 9/01/22 - AMBAC Insured
2,250 Georgia Municipal Electric Authority, Project One Special No Opt. Call A+ 2,707,942
Obligation Bonds, Fourth Crossover Series 1997E,
6.500%, 1/01/20
------------------------------------------------------------------------------------------------------------------------------------
22,940 Total Georgia 25,185,785
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.0% (0.7% OF TOTAL INVESTMENTS)
4,810 Boise City, Idaho, Revenue Refunding Bonds, Series 2001A, 12/11 at 100.00 Aaa 5,159,350
5.375%, 12/01/31 - MBIA Insured
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 527,550
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
5,310 Total Idaho 5,686,900
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 8.8% (5.8% OF TOTAL INVESTMENTS)
4,705 Bourbonnais, Illinois, Revenue Bonds, Olivet Nazarene 3/10 at 101.00 AA 5,083,188
University, Series 2000, 6.250%, 3/01/20 - RAAI Insured
4,775 Chicago Public Building Commission, Illinois, General 3/13 at 100.00 AAA 5,205,562
Obligation Lease Bonds, Chicago Transit Authority,
Series 2003, 5.250%, 3/01/23 (Pre-refunded 3/01/13) -
AMBAC Insured
2,110 Illinois Development Finance Authority, Local Government 1/11 at 100.00 Aaa 2,308,045
Program Revenue Bonds, DuPage and Cook Counties
Community Unit School District 205 - Elmhurst, Series 2000,
6.000%, 1/01/19 (Pre-refunded 1/01/11) - FSA Insured
Illinois Finance Authority, Revenue Bonds, OSF Healthcare
System, Series 2004:
2,500 5.250%, 11/15/21 5/14 at 100.00 A 2,650,675
1,000 5.250%, 11/15/22 5/14 at 100.00 A 1,058,950
395 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 406,617
Series 2006, 5.125%, 1/01/25
2,600 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 2,715,154
Medical Center, Series 2002, 5.500%, 5/15/32
12,725 Kane, Cook and DuPage Counties School District 46, Elgin, No Opt. Call Aaa 15,153,948
Illinois, General Obligation School Bonds, Series 1997,
7.800%, 1/01/12 - FSA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 6,300 Madison County Community Unit School District 7, No Opt. Call AAA $ 6,967,800
Edwardsville, Illinois, School Building Bonds, Series 1994,
5.850%, 2/01/13 - FGIC Insured (ETM)
6,015 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 3,170,386
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 0.000%, 12/15/21 - MBIA Insured
Will County High School District 204, Joliet, Illinois, General
Obligation Bonds, Series 2001:
1,145 8.700%, 12/01/13 - FSA Insured No Opt. Call AAA 1,495,233
1,300 8.700%, 12/01/14 - FSA Insured No Opt. Call AAA 1,742,611
1,180 Will County School District 17, Channahon, Illinois, General No Opt. Call Aaa 1,519,097
Obligation School Building Bonds, Series 2001,
8.400%, 12/01/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
46,750 Total Illinois 49,477,266
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.1% OF TOTAL INVESTMENTS)
5,530 Allen County Jail Building Corporation, Indiana, First Mortgage 4/11 at 101.00 Aa3 (4) 6,071,608
Bonds, Series 2000, 5.750%, 4/01/20 (Pre-refunded 4/01/11)
1,880 Indianapolis, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 1,988,363
Mortgage Revenue Bonds, Cloverleaf Apartments Project
Phase I, Series 2000, 6.000%, 1/20/31
2,495 Shelbyville, Indiana, GNMA Collateralized Multifamily Housing 7/10 at 102.00 Aaa 2,637,564
Revenue Bonds, Blueridge Terrace Project, Series 2000,
6.050%, 1/20/36
St. Joseph County Hospital Authority, Indiana, Revenue Bonds,
Madison Center Inc., Series 2005:
1,550 5.250%, 2/15/23 2/15 at 100.00 BBB 1,599,801
2,500 5.375%, 2/15/34 2/15 at 100.00 BBB 2,580,600
2,765 Wayne County Jail Holding Corporation, Indiana, First Mortgage 1/13 at 101.00 AAA 3,092,708
Bonds, Series 2001, 5.750%, 7/15/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,720 Total Indiana 17,970,644
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.5% (1.0% OF TOTAL INVESTMENTS)
8,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 8,432,960
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,000 Kansas Development Finance Authority, Health Facilities 11/15 at 100.00 A2 1,051,570
Revenue Bonds, Hays Medical Center Inc., Series 2005L,
5.000%, 11/15/22
750 Sedgwick and Shawnee Counties, Kansas, GNMA No Opt. Call Aaa 774,983
Mortgage-Backed Securities Program Single Family Revenue
Bonds, Series 1997A-1, 6.950%, 6/01/29 (Alternative
Minimum Tax)
3,630 Topeka, Kansas, Industrial Revenue Refunding Bonds, Sunwest 8/16 at 100.00 AAA 4,693,191
Hotel Corporation, Series 1988, 9.500%, 10/01/16
(Pre-refunded 8/15/16) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
5,380 Total Kansas 6,519,744
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 Jefferson County, Kentucky, Health Facilities Revenue Refunding 1/07 at 102.00 AAA 2,046,000
Bonds, Jewish Hospital HealthCare Services Inc., Series 1996,
5.700%, 1/01/21 - AMBAC Insured
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 526,447
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
2,510 Total Kentucky 2,572,447
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.5% (2.3% OF TOTAL INVESTMENTS)
1,030 East Baton Rouge Mortgage Finance Authority, Louisiana, 10/07 at 102.00 Aaa 1,039,497
GNMA/FNMA Mortgage-Backed Securities Program Family
Mortgage Revenue Refunding Bonds, Series 1997D,
5.900%, 10/01/30 (Alternative Minimum Tax)
Jefferson Parish Home Mortgage Authority, Louisiana, Single
Family Mortgage Revenue Bonds, Series 2000G-2:
1,270 6.300%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 1,317,206
830 5.550%, 6/01/32 (Alternative Minimum Tax) 12/10 at 102.00 Aaa 838,142
565 Jefferson Parish Home Mortgage Authority, Louisiana, 12/09 at 103.00 Aaa 567,249
Single Family Mortgage Revenue Refunding Bonds,
Series 2000A-2, 7.500%, 12/01/30 (Alternative Minimum Tax)
25
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
$ 3,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, 8/15 at 100.00 A+ $ 3,178,380
Franciscan Missionaries of Our Lady Health System,
Series 2005A, 5.250%, 8/15/31
11,545 Orleans Parish School Board, Louisiana, General Obligation No Opt. Call AAA 12,875,792
Refunding Bonds, Series 1987, 9.000%, 2/01/09 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
18,240 Total Louisiana 19,816,266
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 2,669,300
Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.3% (2.2% OF TOTAL INVESTMENTS)
5,050 Massachusetts Development Financing Authority, Assisted 12/09 at 102.00 N/R 5,216,852
Living Revenue Bonds, Prospect House Apartments,
Series 1999, 7.000%, 12/01/31
1,105 Massachusetts Health and Educational Facilities Authority, 1/09 at 101.00 BBB 1,149,532
Revenue Bonds, Caritas Christi Obligated Group,
Series 1999A, 5.625%, 7/01/20
1,870 Massachusetts Health and Educational Facilities Authority, 7/11 at 100.00 BBB 2,056,645
Revenue Bonds, UMass Memorial Health Care, Series 2001C,
6.500%, 7/01/21
1,325 Massachusetts Health and Educational Facilities Authority, 7/15 at 100.00 BBB 1,353,421
Revenue Bonds, UMass Memorial Health Care, Series 2005D,
5.000%, 7/01/33
2,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 2,066,980
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
5,100 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 5,460,825
Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 -
FSA Insured
1,000 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,107,830
Bonds, Series 2005A, 5.250%, 8/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
17,450 Total Massachusetts 18,412,085
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7% (2.4% OF TOTAL INVESTMENTS)
4,250 Detroit City School District, Wayne County, Michigan, Unlimited 5/12 at 100.00 AAA 4,654,558
Tax School Building and Site Improvement Bonds,
Series 2001A, 5.500%, 5/01/20 (Pre-refunded 5/01/12) -
FSA Insured
10,215 Detroit, Michigan, Water Supply System Revenue Refunding No Opt. Call AAA 12,216,425
Bonds, Series 1993, 6.500%, 7/01/15 - FGIC Insured
1,800 Kent Hospital Finance Authority, Michigan, Revenue Bonds, 7/15 at 100.00 BBB 1,991,880
Metropolitan Hospital, Series 2005A, 6.000%, 7/01/35
1,350 Michigan State Building Authority, Revenue Bonds, Facilities 10/15 at 100.00 AAA 1,451,277
Program, Series 2005II, 5.000%, 10/15/22 - AMBAC Insured
340 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 360,536
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
------------------------------------------------------------------------------------------------------------------------------------
17,955 Total Michigan 20,674,676
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 7.4% (4.9% OF TOTAL INVESTMENTS)
8,250 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 8,439,090
Allete Inc., Series 2004, 4.950%, 7/01/22
5,000 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 7,204,650
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM)
620 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A 674,002
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
19,380 Minnesota Agricultural and Economic Development Board, 11/10 at 101.00 A (4) 21,544,551
Healthcare System Revenue Bonds, Fairview Hospital and
Healthcare Services, Series 2000A, 6.375%, 11/15/29
(Pre-refunded 11/15/10)
700 Minnesota Higher Education Facilities Authority, St. John's 10/15 at 100.00 A2 747,978
University Revenue Bonds, Series 2005-6G, 5.000%, 10/01/22
1,665 Rochester, Minnesota, Health Care Facilities Revenue Bonds, 5/16 at 100.00 AA 1,756,042
Series 2006, 5.000%, 11/15/36
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 1,000 St. Paul Housing and Redevelopment Authority, Minnesota, 11/15 at 100.00 Baa3 $ 1,117,850
Revenue Bonds, Healtheast Inc., Series 2005,
6.000%, 11/15/25
------------------------------------------------------------------------------------------------------------------------------------
36,615 Total Minnesota 41,484,163
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,275 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,307,309
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.0% (1.3% OF TOTAL INVESTMENTS)
200 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 208,780
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aaa 1,097,740
Missouri, General Obligation Bonds, Series 2006,
5.250%, 3/01/26 - MBIA Insured
7,325 Kansas City Industrial Development Authority, Missouri, 1/07 at 102.00 AAA 7,489,446
FNMA Multifamily Housing Revenue Bonds, Royal Woods
Apartments Project, Series 1997, 5.600%, 1/01/30
(Mandatory put 1/01/10) (Alternative Minimum Tax)
Missouri Development Finance Board, Infrastructure Facilities
Revenue Bonds, Branson Landing Project, Series 2005A:
780 6.000%, 6/01/20 No Opt. Call BBB+ 909,698
1,225 5.000%, 6/01/35 6/15 at 100.00 BBB+ 1,258,063
55 Missouri Housing Development Commission, GNMA/FNMA 3/07 at 105.00 AAA 55,897
Single Family Mortgage Revenue Bonds, Homeownership
Loan Program, Series 1997A-2, 7.300%, 3/01/28
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,585 Total Missouri 11,019,624
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Montana Board of Housing, Single Family Program Bonds, 6/14 at 100.00 AA+ 3,036,840
Series 2005-RA-1, 4.750%, 6/01/44
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,395 NebHelp Inc., Nebraska, Revenue Bonds, Student Loan Program, 3/07 at 100.50 AAA 2,401,682
Series 1993B, 5.875%, 6/01/14 - MBIA Insured (Alternative
Minimum Tax)
835 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 100.00 AAA 844,152
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,230 Total Nebraska 3,245,834
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.9% (3.3% OF TOTAL INVESTMENTS)
11,000 Clark County School District, Nevada, General Obligation Bonds, 6/12 at 100.00 AAA 12,064,690
Series 2002C, 5.500%, 6/15/19 (Pre-refunded 6/15/12) -
MBIA Insured
14,530 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 AAA 15,575,724
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000, 5.625%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,530 Total Nevada 27,640,414
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5% (1.0% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, School Facilities
Construction Bonds, Series 2005P:
1,325 5.250%, 9/01/24 9/15 at 100.00 AA- 1,442,528
1,000 5.250%, 9/01/26 9/15 at 100.00 AA- 1,084,830
3,425 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 3,873,469
System Bonds, Series 2006A, 5.250%, 12/15/20
1,855 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,971,568
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
7,605 Total New Jersey 8,372,395
------------------------------------------------------------------------------------------------------------------------------------
27
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
Farmington, New Mexico, Hospital Revenue Bonds, San Juan
Regional Medical Center Inc., Series 2004A:
$ 880 5.125%, 6/01/17 6/14 at 100.00 A3 $ 929,905
1,295 5.125%, 6/01/19 6/14 at 100.00 A3 1,358,856
------------------------------------------------------------------------------------------------------------------------------------
2,175 Total New Mexico 2,288,761
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.9% (11.8% OF TOTAL INVESTMENTS)
1,665 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,776,905
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
2,250 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 2,398,995
Revenue Bonds, Series 2005B, 5.000%, 11/15/30 -
AMBAC Insured
3,200 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 3,382,208
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
7,800 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 8,277,672
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/28 - AMBAC Insured
3,225 New York City Sales Tax Asset Receivable Corporation, 10/14 at 100.00 AAA 3,443,978
New York, Dedicated Revenue Bonds, Local Government
Assistance Corporation, Series 2004A, 5.000%, 10/15/24 -
MBIA Insured
5,570 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 5,922,637
Future Tax Secured Bonds, Fiscal Series 2004C,
5.000%, 2/01/22
5,000 New York City, New York, General Obligation Bonds, 6/13 at 100.00 AA- 5,463,400
Fiscal Series 2003J, 5.500%, 6/01/20
5,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 5,412,700
Fiscal Series 2004C, 5.250%, 8/15/20
4,200 New York City, New York, General Obligation Bonds, 3/15 at 100.00 AA- 4,432,428
Fiscal Series 2005J, 5.000%, 3/01/25
7,000 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AA- 7,406,070
Fiscal Series 2005M, 5.000%, 4/01/24
New York Dorm Authority, State Personal Income Tax Revenue
Bonds, Education, Series 2006C:
1,455 5.000%, 12/15/31 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 1,561,913
2,905 5.000%, 12/15/35 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 3,108,495
5,000 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 5,372,200
Purpose Revenue Bonds, Series 2003C, 5.250%, 12/01/19
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
6,440 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,866,070
3,000 4.750%, 1/01/29 - FSA Insured 7/15 at 100.00 AAA 3,106,530
2,030 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA 2,189,619
Fund Bonds, Second Generation, Series 2005B,
5.000%, 4/01/21 - AMBAC Insured
5,400 New York State Tobacco Settlement Financing Corporation, 6/10 at 100.00 AA- 5,716,710
Tobacco Settlement Asset-Backed and State Contingency
Contract-Backed Bonds, Series 2003A-1, 5.500%, 6/01/16
4,205 New York State Urban Development Corporation, State 3/14 at 100.00 AAA 4,461,337
Personal Income Tax Revenue Bonds, Series 2004A-1,
5.000%, 3/15/23 - FGIC Insured
16,445 Port Authority of New York and New Jersey, Special Project No Opt. Call AAA 19,174,705
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax)
1,000 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 1,061,590
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
92,790 Total New York 100,536,162
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.9% (1.3% OF TOTAL INVESTMENTS)
2,795 Charlotte, North Carolina, FHA-Insured Mortgage Revenue 11/07 at 100.00 AAA 2,860,179
Bonds, Double Oaks Apartments, Series 1992, 7.350%, 5/15/26
7,420 North Carolina Medical Care Commission, Health System 10/11 at 101.00 AA 7,828,174
Revenue Bonds, Mission St. Joseph's Health System,
Series 2001, 5.250%, 10/01/26
------------------------------------------------------------------------------------------------------------------------------------
10,215 Total North Carolina 10,688,353
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.7% (1.1% OF TOTAL INVESTMENTS)
8,650 Cuyahoga County, Ohio, Hospital Revenue and Improvement 2/09 at 101.00 A- (4) 9,214,586
Bonds, MetroHealth System, Series 1999, 6.150%, 2/15/29
(Pre-refunded 2/15/09)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R $ 262,452
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
8,900 Total Ohio 9,477,038
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.8% (0.5% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 530,340
750 5.375%, 9/01/36 9/16 at 100.00 BBB- 790,958
3,300 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 3,350,028
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,550 Total Oklahoma 4,671,326
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7% (1.1% OF TOTAL INVESTMENTS)
3,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 3,218,250
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured
5,000 Philadelphia, Pennsylvania, General Obligation Bonds, 3/11 at 100.00 AAA 5,304,800
Series 2001, 5.250%, 9/15/18 - FSA Insured
1,000 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,084,700
Revenue Bonds, Catholic Health East, Series 2004B,
5.500%, 11/15/24
------------------------------------------------------------------------------------------------------------------------------------
9,000 Total Pennsylvania 9,607,750
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,060,920
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,617,105
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, No Opt. Call AAA 1,400,922
5.250%, 8/01/21 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
3,725 Total Puerto Rico 4,078,947
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 5.5% (3.6% OF TOTAL INVESTMENTS)
2,410 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 2,483,601
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.750%, 5/15/23 - MBIA Insured
21,590 Rhode Island Health and Educational Building Corporation, 5/07 at 102.00 AAA 22,269,868
Hospital Financing Revenue Bonds, Lifespan Obligated Group,
Series 1996, 5.750%, 5/15/23 (Pre-refunded 5/15/07) -
MBIA Insured
5,610 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 6,002,588
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
29,610 Total Rhode Island 30,756,057
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.4% (1.6% OF TOTAL INVESTMENTS)
2,000 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,103,040
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 4,680,313
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
6,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 6,959,030
Economic Development Revenue Bonds, Bon Secours Health
System Inc., Series 2002A, 5.625%, 11/15/30
------------------------------------------------------------------------------------------------------------------------------------
12,905 Total South Carolina 13,742,383
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.3% (0.1% OF TOTAL INVESTMENTS)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,891,505
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,200 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 3,435,424
Tennessee, Revenue Bonds, Mountain States Health Alliance,
Series 2006A, 5.500%, 7/01/36
29
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 3,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 $ 3,325,440
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Tennessee 6,760,864
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.9% (9.2% OF TOTAL INVESTMENTS)
3,135 Austin Housing Finance Corporation, Texas, GNMA 12/10 at 105.00 Aaa 3,465,460
Collateralized Mortgage Loan Multifamily Housing Revenue
Bonds, Santa Maria Village Project, Series 2000A,
7.375%, 6/20/35 (Alternative Minimum Tax)
635 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 669,868
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 5.500%, 2/15/22
18,075 Clear Creek Independent School District, Galveston and Harris 2/10 at 100.00 AAA 19,161,850
Counties, Texas, Unlimited Tax Schoolhouse and Refunding
Bonds, Series 2000, 5.500%, 2/15/22 (Pre-refunded 2/15/10)
4,915 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 5,228,774
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
1,885 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 1,979,061
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
5,000 Harris County Hospital District, Texas, Revenue Refunding 8/10 at 100.00 AAA 5,375,300
Bonds, Series 2000, 6.000%, 2/15/14 - MBIA Insured
2,256 Heart of Texas Housing Finance Corporation, GNMA 6/10 at 105.00 AAA 2,472,215
Collateralized Mortgage Loan Revenue Bonds, Robinson
Garden Project, Series 2000A, 7.375%, 6/20/35 (Alternative
Minimum Tax)
11,950 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 6,009,416
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/22 -
FSA Insured (ETM)
4,680 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 2,338,690
Revenue Refunding Bonds, Series 1998A, 0.000%, 12/01/22 -
FSA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
800 5.250%, 8/15/21 No Opt. Call BBB- 842,912
1,000 5.125%, 8/15/26 No Opt. Call BBB- 1,034,740
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 1,037,470
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
3,960 Stafford Economic Development Corporation, Texas, Sales Tax 9/15 at 100.00 AAA 4,402,807
Revenue Bonds, Series 2000, 5.500%, 9/01/30 - FGIC Insured
5,380 Tarrant County Health Facilities Development Corporation, Texas, 12/10 at 105.00 Aaa 6,056,589
GNMA Collateralized Mortgage Loan Revenue Bonds, Eastview
Nursing Home, Ebony Lake Nursing Center, Ft. Stockton Nursing
Center, Lynnhaven Nursing Center and Mission Oaks Manor,
Series 2000A-1, 7.500%, 12/20/22
Texas Turnpike Authority, First Tier Revenue Bonds, Central
Texas Turnpike System, Series 2002A:
10,000 0.000%, 8/15/21 - AMBAC Insured No Opt. Call AAA 5,322,600
12,000 0.000%, 8/15/23 - AMBAC Insured No Opt. Call AAA 5,807,400
2,500 Tomball Hospital Authority, Texas, Hospital Revenue Bonds, 7/15 at 100.00 Baa3 2,564,375
Tomball Regional Hospital, Series 2005, 5.000%, 7/01/20
3,965 Tyler Health Facilities Development Corporation, Texas, Hospital 11/07 at 102.00 AAA 4,110,317
Revenue Bonds, East Texas Medical Center Regional Healthcare
Center, Series 1997C, 5.600%, 11/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
93,136 Total Texas 77,879,844
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,000 Amherst Industrial Development Authority, Virginia, Revenue 9/16 at 100.00 BBB 1,054,360
Bonds, Sweet Briar College, Series 2006, 5.000%, 9/01/26
1,920 Virginia Beach Development Authority, Virginia, Multifamily 10/14 at 102.00 N/R 2,057,856
Residential Rental Housing Revenue Bonds, Hamptons and
Hampton Court Apartments, Series 1999, 7.500%, 10/01/39
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,920 Total Virginia 3,112,216
------------------------------------------------------------------------------------------------------------------------------------
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.6% (5.7% OF TOTAL INVESTMENTS)
$ 11,345 Chelan County Public Utility District 1, Washington, Columbia No Opt. Call AAA $ 6,658,494
River-Rock Island Hydro-Electric System Revenue Refunding
Bonds, Series 1997A, 0.000%, 6/01/19 - MBIA Insured
17,075 Port of Seattle, Washington, Limited Tax General Obligation 12/10 at 100.00 AAA 18,193,071
Bonds, Series 2000B, 5.750%, 12/01/25 (Alternative
Minimum Tax)
16,750 Port of Seattle, Washington, Revenue Bonds, Series 2000A, 8/10 at 100.00 AAA 17,931,880
5.625%, 2/01/30 (Pre-refunded 8/01/10) - MBIA Insured
5,000 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,371,900
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
50,170 Total Washington 48,155,345
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,176,900
Bonds, Appalachian Power Company, Series 2003L,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.3% (2.2% OF TOTAL INVESTMENTS)
7,220 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 7,806,192
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
315 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 321,328
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Eagle River Memorial Hospital Inc., Series 2000:
1,000 5.750%, 8/15/20 - RAAI Insured 8/10 at 101.00 AA 1,071,140
3,000 5.875%, 8/15/30 - RAAI Insured 8/10 at 101.00 AA 3,226,500
1,150 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 1,258,641
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/24
4,600 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 4,794,672
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,285 Total Wisconsin 18,478,473
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- 2,658,975
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 834,186 Total Long-Term Investments (cost $785,933,893) - 151.1% 848,309,071
=============-----------------------------------------------------------------------------------------------------------------------
31
Nuveen Investment Quality Municipal Fund, Inc. (NQM) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.3% (0.1% OF TOTAL INVESTMENTS)
$ 800 New York City, New York, General Obligation Bonds, Variable A-1+ $ 800,000
Rate Demand Obligations, Fiscal Series 2002A-7,
3.550%, 11/01/24 - AMBAC Insured (6)
900 Puerto Rico Government Development Bank, Adjustable A-1+ 900,000
Refunding Bonds, Variable Rate Demand Obligations,
Series 1985, 3.410%, 12/01/15 - MBIA Insured (6)
------------------------------------------------------------------------------------------------------------------------------------
$ 1,700 Total Short-Term Investments (cost $1,700,000) 1,700,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $787,633,893) - 151.4% 850,009,071
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 12,462,357
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.6)% (301,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 561,471,428
====================================================================================================================
(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) On December 9, 2002, UAL Corporation ("UAL"), the
holding company of Untied Air Lines, Inc., filed for
federal bankruptcy protection. At that time, the
Adviser determined that is was likely United would not
remain current on their interest payment obligations
with respect to these bonds and thus the Fund had
stopped accruing interest. During July 2006, the Fund
received all past due interest amounts on its UAL bonds
and began accruing interest.
(6) Investment has a maturity of more than one year, but
has variable rate and demand features which qualify it
as a short-term investment. The rate disclosed is that
in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a
specified market index.
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.
32
Nuveen Select Quality Municipal Fund, Inc. (NQS)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.9% (2.6% OF TOTAL INVESTMENTS)
$ 4,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA $ 4,195,480
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded 2/01/09) - FGIC Insured
10,000 Lauderdale County and Florence Health Authority, Alabama, 7/10 at 102.00 AAA 10,930,800
Revenue Bonds, Coffee Health Group, Series 2000A,
6.000%, 7/01/29 - MBIA Insured
5,155 Phenix City Industrial Development Board, Alabama, 5/12 at 100.00 BBB 5,550,389
Environmental Improvement Revenue Bonds, MeadWestvaco
Corporation, Series 2002A, 6.350%, 5/15/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
19,155 Total Alabama 20,676,669
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 Kenai Peninsula Borough, Alaska, Revenue Bonds, Central 8/13 at 100.00 Aaa 2,126,900
Kenai Peninsula Hospital Service Area, Series 2003,
5.000%, 8/01/23 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8% (0.5% OF TOTAL INVESTMENTS)
3,750 Salt River Project Agricultural Improvement and Power District, 12/13 at 100.00 AAA 3,994,913
Arizona, Electric System Revenue Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0% (0.7% OF TOTAL INVESTMENTS)
4,500 Little Rock, Arkansas, Hotel and Restaurant Gross Receipts No Opt. Call A3 5,326,605
Tax Refunding Bonds, Series 1993, 7.375%, 8/01/15
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 4.5% (3.0% OF TOTAL INVESTMENTS)
Calexico Unified School District, Imperial County, California,
General Obligation Bonds, Series 2005B:
3,685 0.000%, 8/01/31 - FGIC Insured No Opt. Call AAA 1,230,864
4,505 0.000%, 8/01/33 - FGIC Insured No Opt. Call AAA 1,366,367
550 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 592,279
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 - MBIA Insured
(Alternative Minimum Tax)
1,000 Coachella Valley Unified School District, Riverside County, No Opt. Call AAA 349,150
California, General Obligation Bonds, Series 2005A,
0.000%, 8/01/30 - FGIC Insured
Colton Joint Unified School District, San Bernardino County,
California, General Obligation Bonds, Series 2006C:
3,200 0.000%, 2/01/30 - FGIC Insured 2/15 at 45.69 AAA 995,872
6,800 0.000%, 2/01/35 - FGIC Insured 2/15 at 34.85 AAA 1,605,140
Cupertino Union School District, Santa Clara County, California,
General Obligation Bonds, Series 2003B:
8,100 0.000%, 8/01/24 - FGIC Insured 8/13 at 58.68 AAA 3,512,727
11,430 0.000%, 8/01/27 - FGIC Insured 8/13 at 49.98 AAA 4,200,296
1,045 Lake Tahoe Unified School District, El Dorado County, No Opt. Call Aaa 362,834
California, General Obligation Bonds, Series 2001B,
0.000%, 8/01/31 - MBIA Insured
6,000 Placentia-Yorba Linda Unified School District, Orange County, No Opt. Call AAA 1,722,840
California, Certificates of Participation, Series 2006,
0.000%, 10/01/34 - FGIC Insured
5,000 Riverside County Asset Leasing Corporation, California, No Opt. Call AAA 2,186,850
Leasehold Revenue Bonds, Riverside County Hospital Project,
Series 1997, 0.000%, 6/01/25 - MBIA Insured
12,615 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 3,536,615
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
5,000 Santa Monica Community College District, Los Angeles County, No Opt. Call AAA 1,937,500
California, General Obligation Bonds, Series 2005C,
0.000%, 8/01/26 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
68,930 Total California 23,599,334
------------------------------------------------------------------------------------------------------------------------------------
33
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 10.4% (6.9% OF TOTAL INVESTMENTS)
$ 11,000 Colorado Department of Transportation, Revenue Anticipation 6/10 at 100.50 AAA $ 11,955,240
Bonds, Series 2000, 6.000%, 6/15/15 (Pre-refunded 6/15/10) -
AMBAC Insured
9,250 Colorado Health Facilities Authority, Remarketed Revenue 12/06 at 102.00 AAA 9,447,673
Bonds, Kaiser Permanente System, Series 1994A,
5.350%, 11/01/16 (ETM)
16,995 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 17,999,064
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 -
AMBAC Insured (Alternative Minimum Tax)
1,500 Denver Convention Center Hotel Authority, Colorado, Senior 11/16 at 100.00 AAA 1,514,370
Revenue Bonds, Convention Center Hotel, Series 2006,
4.625%, 12/01/30 - XLCA Insured
E-470 Public Highway Authority, Colorado, Senior Revenue
Bonds, Series 1997B:
1,045 0.000%, 9/01/23 - MBIA Insured No Opt. Call AAA 503,930
8,515 0.000%, 9/01/25 - MBIA Insured No Opt. Call AAA 3,730,762
7,500 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,739,375
Bonds, Series 2000B, 0.000%, 9/01/29 - MBIA Insured
13,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, 9/20 at 45.40 AAA 3,142,100
Series 2004B, 0.000%, 9/01/34 - MBIA Insured
12,355 Northwest Parkway Public Highway Authority, Colorado, 6/11 at 40.52 AAA 4,123,852
Senior Lien Revenue Bonds, Series 2001B, 0.000%, 6/15/26 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
81,160 Total Colorado 55,156,366
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.8% (1.2% OF TOTAL INVESTMENTS)
9,285 Connecticut Development Authority, Health Facilities Revenue 2/07 at 100.00 N/R 9,317,405
Refunding Bonds, Alzheimer's Resource Center of
Connecticut Inc., Series 1994A, 7.250%, 8/15/21
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 3.2% (2.1% OF TOTAL INVESTMENTS)
3,045 District of Columbia Tobacco Settlement Corporation, Tobacco 5/11 at 101.00 BBB 3,284,428
Settlement Asset-Backed Bonds, Series 2001, 6.250%, 5/15/24
District of Columbia, General Obligation Bonds, Series 1998B:
5,000 6.000%, 6/01/19 - MBIA Insured No Opt. Call AAA 5,989,200
7,265 5.250%, 6/01/26 - FSA Insured 6/08 at 101.00 AAA 7,492,467
------------------------------------------------------------------------------------------------------------------------------------
15,310 Total District of Columbia 16,766,095
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.6% (1.1% OF TOTAL INVESTMENTS)
Lee County, Florida, Airport Revenue Bonds, Series 2000A:
3,075 5.875%, 10/01/18 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 3,325,182
4,860 5.875%, 10/01/19 - FSA Insured (Alternative Minimum Tax) 10/10 at 101.00 AAA 5,255,410
------------------------------------------------------------------------------------------------------------------------------------
7,935 Total Florida 8,580,592
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,750 Atlanta, Georgia, Airport General Revenue Bonds, 1/10 at 101.00 AAA 3,957,262
Series 2000B, 5.625%, 1/01/30 - FGIC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.7% (11.1% OF TOTAL INVESTMENTS)
7,555 Chicago Board of Education, Illinois, Unlimited Tax General 12/07 at 102.00 AAA 7,816,630
Obligation Bonds, Dedicated Tax Revenues, Series 1997A,
5.250%, 12/01/27 - AMBAC Insured
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1997:
4,000 5.750%, 12/01/20 (Pre-refunded 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 4,171,120
9,230 5.750%, 12/01/27 (Pre-refunded 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 9,624,859
1,070 5.750%, 12/01/27 (Pre-refunded 12/01/07) - AMBAC Insured 12/07 at 102.00 AAA 1,115,775
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
3,665 0.000%, 12/01/25 - FGIC Insured No Opt. Call AAA 1,588,301
1,375 0.000%, 12/01/31 - FGIC Insured No Opt. Call AAA 457,009
5,865 Chicago, Illinois, General Obligation Bonds, Neighborhoods 7/10 at 101.00 AAA 6,500,766
Alive 21 Program, Series 2000A, 6.500%, 1/01/35
(Pre-refunded 7/01/10) - FGIC Insured
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 570 Chicago, Illinois, General Obligation Refunding Bonds, 11/06 at 102.00 AAA $ 578,054
Series 1996B, 5.125%, 1/01/25 - FGIC Insured
15,000 Chicago, Illinois, Second Lien Passenger Facility Charge 1/11 at 101.00 AAA 15,702,899
Revenue Bonds, O'Hare International Airport, Series 2001A,
5.375%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax)
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Bonds, O'Hare International Airport, Series 2001C:
3,770 5.100%, 1/01/26 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 3,891,432
5,460 5.250%, 1/01/32 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 5,677,199
10,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 10,664,600
Medical Center, Series 2002, 5.750%, 5/15/22
2,000 Illinois Health Facilities Authority, Revenue Bonds, Midwest 2/11 at 102.00 Aaa 2,153,900
Care Center I Inc., Series 2001, 5.950%, 2/20/36
8,945 Lake and McHenry Counties Community Unit School 1/15 at 74.44 Aaa 4,618,751
District 118, Wauconda, Illinois, General Obligation Bonds,
Series 2005B, 0.000%, 1/01/21 - FSA Insured
9,000 McHenry County Community Unit School District 200, No Opt. Call Aaa 4,438,530
Woodstock, Illinois, General Obligation Bonds, Series 2006B,
0.000%, 1/15/23 - FGIC Insured
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Bonds, McCormick Place Expansion Project, Series 2002A:
6,500 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 3,111,095
2,920 5.000%, 12/15/28 - MBIA Insured 6/12 at 101.00 AAA 3,057,999
1,100 0.000%, 12/15/35 - MBIA Insured No Opt. Call AAA 308,990
7,500 Valley View Public Schools, Community Unit School No Opt. Call AAA 3,262,125
District 365U of Will County, Illinois, General Obligation
Bonds, Series 2005, 0.000%, 11/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
105,525 Total Illinois 88,740,034
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7% (1.1% OF TOTAL INVESTMENTS)
765 Indiana Housing Finance Authority, Single Family Mortgage 1/10 at 100.00 Aaa 786,344
Revenue Bonds, Series 2000D-3, 5.950%, 7/01/26
(Alternative Minimum Tax)
7,660 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/11 at 100.00 AAA 8,272,494
Memorial Health System, Series 2000, 5.625%, 8/15/33
(Pre-refunded 2/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,425 Total Indiana 9,058,838
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.4% (0.9% OF TOTAL INVESTMENTS)
3,500 Burlington, Kansas, Environmental Improvement Revenue Bonds, No Opt. Call A3 3,528,665
Kansas City Power and Light Company Project, Series 1998A,
4.750%, 9/01/15 (Mandatory put 10/01/07)
3,790 Kansas Department of Transportation, Highway Revenue 3/14 at 100.00 AAA 4,029,869
Bonds, Series 2004A, 5.000%, 3/01/23
------------------------------------------------------------------------------------------------------------------------------------
7,290 Total Kansas 7,558,534
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.5% (1.0% OF TOTAL INVESTMENTS)
7,500 Maryland Health and Higher Educational Facilities Authority, 7/09 at 101.00 AA (4) 8,042,400
Revenue Bonds, Johns Hopkins University, Series 1999,
6.000%, 7/01/39 (Pre-refunded 7/01/09)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.3% (0.1% OF TOTAL INVESTMENTS)
1,045 Massachusetts Educational Finance Authority, Student Loan 12/09 at 101.00 AAA 1,053,600
Revenue Refunding Bonds, Series 2000G, 5.700%, 12/01/11 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 8.5% (5.6% OF TOTAL INVESTMENTS)
10,000 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 10,747,000
Series 1999A, 5.750%, 7/01/26 (Pre-refunded 1/01/10) -
FGIC Insured
3,625 Fowlerville Community Schools, Ingham, Livingston and 5/07 at 100.00 AAA 3,662,301
Shiawassee Counties, Michigan, School Building and Site
Bonds, Series 1996, 5.600%, 5/01/26 (Pre-refunded 5/01/07) -
MBIA Insured
6,475 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 AAA 6,935,178
Bonds, Ascension Health Credit Group, Series 1999A,
5.750%, 11/15/16 (Pre-refunded 11/15/09) - MBIA Insured
3,275 Michigan State Hospital Finance Authority, Revenue Refunding 2/07 at 100.00 BB- 3,277,260
Bonds, Detroit Medical Center Obligated Group, Series 1993A,
6.500%, 8/15/18
35
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 6,000 Michigan Strategic Fund, Collateralized Limited Obligation 9/11 at 100.00 A3 $ 6,360,180
Pollution Control Revenue Refunding Bonds, Fixed Rate
Conversion, Detroit Edison Company, Series 1999C,
5.650%, 9/01/29 (Alternative Minimum Tax)
7,500 Michigan Strategic Fund, Limited Obligation Revenue Refunding 12/12 at 100.00 AAA 7,984,875
Bonds, Detroit Edison Company, Series 2002C,
5.450%, 12/15/32 - XLCA Insured (Alternative Minimum Tax)
5,900 Royal Oak Hospital Finance Authority, Michigan, Hospital 11/11 at 100.00 AAA 6,182,728
Revenue Bonds, William Beaumont Hospital, Series 2001M,
5.250%, 11/15/35 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
42,775 Total Michigan 45,149,522
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.9% (1.3% OF TOTAL INVESTMENTS)
7,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 7,357,070
Minnesota, Airport Revenue Bonds, Series 2001A,
5.250%, 1/01/32 - FGIC Insured
2,855 Minnesota Housing Finance Agency, Single Family Mortgage 7/09 at 100.00 AA+ 2,865,135
Revenue Bonds, Series 2000C, 6.100%, 7/01/30 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,855 Total Minnesota 10,222,205
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,475 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 2,537,717
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.4% OF TOTAL INVESTMENTS)
5,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 1,961,150
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
1,500 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 1,578,225
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Missouri 3,539,375
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.0% (0.0% OF TOTAL INVESTMENTS)
185 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 100.00 AAA 187,357
Revenue Bonds, Series 1995A, 6.800%, 3/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.7% (4.5% OF TOTAL INVESTMENTS)
4,885 Clark County, Nevada, Limited Tax General Obligation Bank 7/10 at 100.00 AA+ (4) 5,210,390
Bonds, Series 2000, 5.500%, 7/01/18 (Pre-refunded 7/01/10)
7,500 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/10 at 101.00 AAA 8,190,675
Series 1999A, 6.000%, 7/01/29 (Pre-refunded 7/01/10) -
MBIA Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
1,950 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 2,090,342
2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 2,084,540
10,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 11,531,418
Bonds, Series 2001A, 5.250%, 7/01/34
(Pre-refunded 7/01/11) - FSA Insured
6,000 Washoe County, Nevada, Reno-Sparks Convention and Visitors 1/10 at 100.00 AAA 6,503,100
Authority, Limited Tax General Obligation Bonds, Series 1999A,
6.375%, 7/01/23 (Pre-refunded 1/01/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
33,085 Total Nevada 35,610,465
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 7.5% (5.0% OF TOTAL INVESTMENTS)
2,400 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 2,682,192
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
17,670 New Jersey Housing and Mortgage Finance Agency, Home 10/10 at 100.00 AAA 18,431,399
Buyer Program Revenue Bonds, Series 2000CC,
5.850%, 10/01/25 - MBIA Insured (Alternative Minimum Tax)
3,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 3,094,590
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax)
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
$ 20,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA $ 6,208,400
System Bonds, Series 2006C, 0.000%, 12/15/33 - FSA Insured
8,660 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 9,204,194
Tobacco Settlement Asset-Backed Bonds, Series 2002,
5.750%, 6/01/32
------------------------------------------------------------------------------------------------------------------------------------
51,730 Total New Jersey 39,620,775
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 4.5% (3.0% OF TOTAL INVESTMENTS)
8,500 Farmington, New Mexico, Pollution Control Revenue Refunding 4/07 at 100.50 BBB 8,534,340
Bonds, Public Service Company of New Mexico - San Juan
Project, Series 1997B, 5.800%, 4/01/22
New Mexico Hospital Equipment Loan Council, Hospital
Revenue Bonds, Presbyterian Healthcare Services, Series 2001A:
8,000 5.500%, 8/01/25 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 8,705,120
6,200 5.500%, 8/01/30 (Pre-refunded 8/01/11) 8/11 at 101.00 AA- (4) 6,746,468
------------------------------------------------------------------------------------------------------------------------------------
22,700 Total New Mexico 23,985,928
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.5% (9.0% OF TOTAL INVESTMENTS)
5,650 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 5,943,009
Revenue Bonds, Mental Health Services Facilities,
Series 1999D, 5.250%, 8/15/24 - FSA Insured
10,000 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 A+ (4) 10,917,100
Lease Revenue Bonds, Court Facilities, Series 1999,
6.000%, 5/15/39 (Pre-refunded 5/15/10)
7,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 7,395,360
Service Contract Refunding Bonds, Series 2002A,
5.125%, 1/01/29
5,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 5,184,750
Water and Sewerage System Revenue Bonds,
Fiscal Series 1999B, 5.000%, 6/15/29 - FSA Insured
6,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 6,356,580
Water and Sewerage System Revenue Bonds,
Fiscal Series 2000A, 5.500%, 6/15/32
(Pre-refunded 6/15/09) - FGIC Insured
2,255 New York City Transit Authority, New York, Metropolitan 1/10 at 101.00 AAA 2,427,688
Transportation Authority, Triborough Bridge and Tunnel
Authority, Certificates of Participation, Series 2000A,
5.750%, 1/01/20 (Pre-refunded 1/01/10) -AMBAC Insured
9,750 New York City Transitional Finance Authority, New York, 5/10 at 101.00 AAA 10,640,760
Future Tax Secured Bonds, Fiscal Series 2000B,
6.000%, 11/15/29 (Pre-refunded 5/15/10)
9,290 New York City, New York, General Obligation Bonds, 10/07 at 101.00 Aaa 9,600,100
Fiscal Series 1997G, 6.000%, 10/15/26 (Pre-refunded 10/15/07)
5,400 New York State Mortgage Agency, Homeowner Mortgage 3/09 at 101.00 Aa1 5,521,230
Revenue Bonds, Series 79, 5.300%, 4/01/29 (Alternative
Minimum Tax)
3,055 New York State Urban Development Corporation, Subordinate 7/08 at 100.00 AAA 3,120,683
Lien Corporate Purpose Refunding Bonds, Series 1996,
5.500%, 7/01/26
4,490 New York State Urban Development Corporation, Subordinate 7/08 at 100.00 Aaa 4,633,545
Lien Corporate Purpose Refunding Bonds, Series 1996,
5.500%, 7/01/26 (Pre-refunded 7/01/08)
------------------------------------------------------------------------------------------------------------------------------------
67,890 Total New York 71,740,805
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.5% (2.3% OF TOTAL INVESTMENTS)
18,555 North Carolina Eastern Municipal Power Agency, Power 1/07 at 100.00 AAA 18,581,532
System Revenue Refunding Bonds, Series 1993B,
5.500%, 1/01/17 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 2.0% (1.3% OF TOTAL INVESTMENTS)
10,490 Grand Forks, North Dakota, Sales Tax Revenue Bonds, 12/07 at 100.00 AAA 10,730,955
Aurora Project, Series 1997A, 5.625%, 12/15/29
(Pre-refunded 12/15/07) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.1% (1.4% OF TOTAL INVESTMENTS)
Montgomery County, Ohio, Hospital Facilities Revenue Bonds,
Kettering Medical Center, Series 1999:
5,000 6.750%, 4/01/18 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,540,200
5,000 6.750%, 4/01/22 (Pre-refunded 4/01/10) 4/10 at 101.00 A (4) 5,540,200
37
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO (continued)
$ 295 Ohio Housing Finance Agency, GNMA Mortgage-Backed 8/10 at 100.00 Aaa $ 297,885
Securities Program Residential Mortgage Revenue Bonds,
Series 2000C, 6.050%, 3/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,295 Total Ohio 11,378,285
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.3% (1.6% OF TOTAL INVESTMENTS)
2,235 Oklahoma Development Finance Authority, Revenue Bonds, 2/14 at 100.00 AA 2,336,849
St. John Health System, Series 2004, 5.000%, 2/15/24
10,000 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 10,083,300
Bonds, American Airlines Inc., Series 2001B,
5.650%, 12/01/35 (Mandatory put 12/01/08)
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,235 Total Oklahoma 12,420,149
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.0% (0.0% OF TOTAL INVESTMENTS)
95 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 100,823
Revenue Bonds, Series 1999, 5.750%, 1/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
3,000 Puerto Rico Public Buildings Authority, Guaranteed Government 7/17 at 100.00 AAA 2,495,400
Facilities Revenue Refunding Bonds, Series 2002D,
0.000%, 7/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.5% (6.3% OF TOTAL INVESTMENTS)
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2002:
5,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA- (4) 6,248,165
4,500 6.000%, 12/01/21 (Pre-refunded 12/01/12) 12/12 at 101.00 AA- (4) 5,112,135
3,750 Greenwood County, South Carolina, Hospital Revenue Bonds, 10/11 at 100.00 A 3,948,225
Self Memorial Hospital, Series 2001, 5.500%, 10/01/31
2,500 Lexington County Health Service District, South Carolina, 11/13 at 100.00 A 2,713,975
Hospital Revenue Refunding and Improvement Bonds,
Series 2003, 5.750%, 11/01/28
2,825 Medical University Hospital Authority, South Carolina, 8/14 at 100.00 AAA 3,052,271
FHA-Insured Mortgage Revenue Bonds, Series 2004A,
5.250%, 2/15/22 - MBIA Insured
21,565 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 7,709,056
Revenue Bonds, Series 2004A-2, 0.000%, 1/01/30 -
AMBAC Insured
1,265 South Carolina Housing Finance and Development Authority, 6/10 at 100.00 Aaa 1,293,943
Mortgage Revenue Bonds, Series 2000A-2,
6.000%, 7/01/20 - FSA Insured (Alternative Minimum Tax)
Tobacco Settlement Revenue Management Authority,
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B:
11,530 6.000%, 5/15/22 5/11 at 101.00 BBB 12,321,419
4,000 6.375%, 5/15/28 5/11 at 101.00 BBB 4,342,360
3,000 6.375%, 5/15/30 No Opt. Call BBB 3,507,000
------------------------------------------------------------------------------------------------------------------------------------
60,435 Total South Carolina 50,248,549
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,550 Sioux Falls, South Dakota, Industrial Revenue Refunding 10/14 at 100.00 AAA 6,823,892
Bonds, Great Plains Hotel Corporation, Series 1989,
8.500%, 11/01/16 (Pre-refunded 10/15/14) (Alternative
Minimum Tax)
2,410 South Dakota Education Loans Inc., Revenue Bonds, 6/08 at 102.00 A2 2,508,159
Subordinate Series 1998-1K, 5.600%, 6/01/20 (Alternative
Minimum Tax)
1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ 1,891,505
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
9,710 Total South Dakota 11,223,556
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 6.7% (4.4% OF TOTAL INVESTMENTS)
5,000 Knox County Health, Educational and Housing Facilities 4/12 at 101.00 Baa3 5,542,400
Board, Tennessee, Hospital Revenue Bonds, Baptist Health
System of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
20,060 Knox County Health, Educational and Housing Facilities Board, 1/13 at 80.49 AAA 12,397,882
Tennessee, Hospital Revenue Refunding Bonds, Covenant
Health, Series 2002A, 0.000%, 1/01/17 - FSA Insured
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE (continued)
$ 12,500 Metropolitan Government of Nashville-Davidson County 11/09 at 101.00 AAA $ 13,419,875
Health and Educational Facilities Board, Tennessee, Revenue
Bonds, Ascension Health Credit Group, Series 1999A,
5.875%, 11/15/28 (Pre-refunded 11/15/09) - AMBAC Insured
Tennessee Housing Development Agency, Homeownership
Program Bonds, Series 2000-1:
1,785 5.750%, 7/01/10 (Alternative Minimum Tax) No Opt. Call AA 1,789,927
2,145 6.000%, 7/01/13 - MBIA Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 2,152,229
------------------------------------------------------------------------------------------------------------------------------------
41,490 Total Tennessee 35,302,313
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.3% (10.1% OF TOTAL INVESTMENTS)
5,110 Brazos River Authority, Texas, Pollution Control Revenue 4/13 at 101.00 Baa2 5,977,525
Refunding Bonds, TXU Electric Company, Series 1999C,
7.700%, 3/01/32 (Alternative Minimum Tax)
7,925 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Baa2 8,432,676
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
4,500 Brazos River Authority, Texas, Revenue Bonds, Reliant 12/08 at 102.00 BBB- 4,790,430
Energy Inc., Series 1999B, 7.750%, 12/01/18
4,080 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 4,276,126
Williamson Counties, Toll Road Revenue Bonds, Series 2005,
5.000%, 1/01/35 - FGIC Insured
5,500 Dallas Area Rapid Transit, Texas, Senior Lien Sales Tax 12/11 at 100.00 AAA 5,698,055
Revenue Bonds, Series 2001, 5.000%, 12/01/31 -
AMBAC Insured
2,000 Ennis Independent School District, Ellis County, Texas, 8/16 at 54.64 Aaa 692,880
General Obligation Bonds, Series 2006, 0.000%, 8/15/28
1,550 Gulf Coast Waste Disposal Authority, Texas, Waste Disposal 4/11 at 101.00 BBB- 1,676,356
Revenue Bonds, Valero Energy Corporation, Series 2001,
6.650%, 4/01/32 (Alternative Minimum Tax)
5,000 Houston Community College, Texas, Limited Tax General 2/13 at 100.00 AAA 5,234,250
Obligation Bonds, Series 2003, 5.000%, 2/15/26 - AMBAC Insured
4,590 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,847,361
Bonds, Series 2000A, 5.625%, 7/01/30 - FSA Insured
(Alternative Minimum Tax)
5,000 Katy Independent School District, Harris, Fort Bend and Waller 2/12 at 100.00 AAA 5,193,650
Counties, Texas, General Obligation Bonds, Series 2002A,
5.000%, 2/15/27
9,000 Matagorda County Navigation District 1, Texas, Collateralized No Opt. Call AAA 10,015,290
Revenue Refunding Bonds, Houston Light and Power Company,
Series 1997, 5.125%, 11/01/28 - AMBAC Insured (Alternative
Minimum Tax)
775 Panhandle Regional Housing Finance Corporation, Texas, 11/06 at 100.00 AAA 775,093
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1991A, 7.500%, 5/01/24
(Alternative Minimum Tax)
4,700 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 Baa2 5,000,988
System Revenue Refunding Bonds, Series 2002A,
6.000%, 10/01/21
5,500 Spring Independent School District, Harris County, Texas, 8/11 at 100.00 AAA 5,702,015
Unlimited Tax Schoolhouse Bonds, Series 2001,
5.000%, 8/15/26
4,520 Texas, General Obligation Bonds, Water Financial Assistance, 8/09 at 100.00 Aa1 4,730,587
State Participation Program, Series 1999C, 5.500%, 8/01/35
White Settlement Independent School District, Tarrant County,
Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/36 8/15 at 33.75 AAA 2,043,829
9,110 0.000%, 8/15/41 8/15 at 25.73 AAA 1,551,251
7,110 0.000%, 8/15/45 8/15 at 20.76 AAA 975,421
2,500 Winter Garden Housing Finance Corporation, Texas, 4/07 at 100.00 AAA 2,532,950
GNMA/FNMA Mortgage-Backed Securities Program Single
Family Mortgage Revenue Bonds, Series 1994,
6.950%, 10/01/27 (Alternative Minimum Tax)
2,000 Wylie Independent School District, Taylor County, Texas, 8/15 at 57.10 AAA 765,040
General Obligation Bonds, Series 2005, 0.000%, 8/15/26
------------------------------------------------------------------------------------------------------------------------------------
99,580 Total Texas 80,911,773
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen Select Quality Municipal Fund, Inc. (NQS) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8% (2.5% OF TOTAL INVESTMENTS)
$ 3,565 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA $ 3,777,296
Payson Power Project, Series 2003A, 5.000%, 4/01/24 -
FSA Insured
16,050 Utah County, Utah, Hospital Revenue Bonds, IHC Health 8/07 at 101.00 AAA 16,413,050
Services Inc., Series 1997, 5.250%, 8/15/26 -
MBIA Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
19,615 Total Utah 20,190,346
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 1.9% (1.3% OF TOTAL INVESTMENTS)
Vermont Educational and Health Buildings Financing Agency,
Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A:
3,720 6.125%, 12/01/15 - AMBAC Insured 12/10 at 101.00 AAA 4,090,884
4,265 6.250%, 12/01/16 - AMBAC Insured 12/10 at 101.00 AAA 4,693,206
1,450 Vermont Housing Finance Agency, Single Family Housing Bonds, 11/09 at 100.00 AAA 1,463,123
Series 2000-13A, 5.950%, 11/01/25 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,435 Total Vermont 10,247,213
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.3% (2.2% OF TOTAL INVESTMENTS)
8,810 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 9,483,172
Consolidated System Revenue Bonds, Series 2001A,
5.600%, 1/01/36 - MBIA Insured (Alternative Minimum Tax)
7,225 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 7,761,529
Terminal 18, Series 1999B, 6.000%, 9/01/20 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
16,035 Total Washington 17,244,701
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
5,000 Mason County, West Virginia, Pollution Control Revenue 10/11 at 100.00 BBB 5,176,900
Bonds, Appalachian Power Company, Series 2003L,
5.500%, 10/01/22
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2% (2.1% OF TOTAL INVESTMENTS)
8,470 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB 9,157,679
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
5,000 Madison, Wisconsin, Industrial Development Revenue 4/12 at 100.00 AA- 5,392,000
Refunding Bonds, Madison Gas and Electric Company Projects,
Series 2002A, 5.875%, 10/01/34 (Alternative Minimum Tax)
2,100 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A- 2,179,023
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
------------------------------------------------------------------------------------------------------------------------------------
15,570 Total Wisconsin 16,728,702
------------------------------------------------------------------------------------------------------------------------------------
$ 914,295 Total Investments (cost $741,378,330) - 150.9% 799,530,893
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 9,464,994
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.6)% (279,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 529,995,887
====================================================================================================================
(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.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
40
Nuveen Quality Income Municipal Fund, Inc. (NQU)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.1% (2.1% OF TOTAL INVESTMENTS)
$ 3,500 Bessemer Governmental Utility Services Corporation, Alabama, 6/08 at 102.00 AAA $ 3,641,645
Water Supply Revenue Bonds, Series 1998, 5.200%, 6/01/24 -
MBIA Insured
Jefferson County, Alabama, Sewer Revenue Capitol Improvement
Warrants, Series 2001A:
7,475 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 8,110,824
6,340 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 6,866,220
6,970 5.500%, 2/01/31 (Pre-refunded 2/01/11) - FGIC Insured 2/11 at 101.00 AAA 7,562,868
------------------------------------------------------------------------------------------------------------------------------------
24,285 Total Alabama 26,181,557
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
6,110 Alaska Housing Finance Corporation, General Housing Purpose 12/14 at 100.00 AAA 6,426,926
Bonds, Series 2005A, 5.000%, 12/01/27 - FGIC Insured
1,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 1,520,250
Settlement Asset-Backed Bonds, Series 2006A, 5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
7,610 Total Alaska 7,947,176
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,350 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 5,610,599
Multipurpose Stadium Facility Project, Series 2003A,
5.000%, 7/01/28 - MBIA Insured
1,000 Mesa, Arizona, Utility System Revenue Refunding Bonds, No Opt. Call AAA 1,127,540
Series 2002, 5.250%, 7/01/17 - FGIC Insured
8,010 Salt River Project Agricultural Improvement and Power District, 1/12 at 101.00 Aa1 8,475,141
Arizona, Electric System Revenue Refunding Bonds,
Series 2002A, 5.125%, 1/01/27
------------------------------------------------------------------------------------------------------------------------------------
14,360 Total Arizona 15,213,280
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
Arkansas Development Finance Authority, Tobacco Settlement
Revenue Bonds, Arkansas Cancer Research Center Project,
Series 2006:
2,500 0.000%, 7/01/36 - AMBAC Insured No Opt. Call Aaa 650,500
19,800 0.000%, 7/01/46 - AMBAC Insured No Opt. Call Aaa 3,151,764
4,000 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,222,480
Sciences Campus, Series 2004B, 5.000%, 11/01/34 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,300 Total Arkansas 8,024,744
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.8% (5.8% OF TOTAL INVESTMENTS)
1,000 California Department of Water Resources, Power Supply 5/12 at 101.00 Aaa 1,121,280
Revenue Bonds, Series 2002A, 5.750%, 5/01/17
(Pre-refunded 5/01/12)
6,000 California Health Facilities Financing Authority, Health Facility 3/13 at 100.00 A 6,168,360
Revenue Bonds, Adventist Health System/West, Series 2003A,
5.000%, 3/01/33
3,450 California Infrastructure Economic Development Bank, Revenue 10/11 at 101.00 A- 3,610,322
Bonds, J. David Gladstone Institutes, Series 2001,
5.250%, 10/01/34
8,335 California State, General Obligation Bonds, Series 2006, 3/16 at 100.00 AAA 9,065,146
Residuals Series 1005, 6.805%, 3/01/35 - MBIA Insured (IF)
1,360 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ 1,437,452
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.250%, 7/01/30
14,600 California, General Obligation Bonds, Series 2003, 8/13 at 100.00 A+ 15,620,248
5.250%, 2/01/28
5,000 California, General Obligation Veterans Welfare Bonds, 12/06 at 100.00 AA- 5,068,700
Series 1997BH, 5.600%, 12/01/32 (Alternative Minimum Tax)
41
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 10,000 California, Various Purpose General Obligation Bonds, 4/09 at 101.00 AAA $ 10,139,600
Series 1999, 4.750%, 4/01/29 - MBIA Insured
8,500 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 8,793,505
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
30,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 8,410,500
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/35 - MBIA Insured
1,500 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 1,550,700
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 - MBIA Insured
3,000 San Mateo County Community College District, California, No Opt. Call AAA 1,055,820
General Obligation Bonds, Series 2006C, 0.000%, 9/01/30 -
MBIA Insured
1,500 Tobacco Securitization Authority of Northern California, 6/15 at 100.00 BBB 1,586,610
Tobacco Settlement Asset-Backed Bonds, Series 2005A-1,
5.500%, 6/01/45
------------------------------------------------------------------------------------------------------------------------------------
94,245 Total California 73,628,243
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.1% (3.3% OF TOTAL INVESTMENTS)
10,000 Denver City and County, Colorado, Airport System Revenue 11/10 at 100.00 AAA 10,590,800
Refunding Bonds, Series 2000A, 5.625%, 11/15/23 -
AMBAC Insured (Alternative Minimum Tax)
12,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/07 at 101.00 AAA 12,182,640
Bonds, Series 1997A, 4.750%, 9/01/23 - MBIA Insured
5,385 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 2,249,530
Bonds, Series 1997B, 0.000%, 9/01/26 - MBIA Insured
14,400 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 65.63 AAA 8,192,736
Bonds, Series 2000B, 0.000%, 9/01/17 (Pre-refunded 9/01/10) -
MBIA Insured
8,740 Larimer County School District R1, Poudre, Colorado, General 12/10 at 100.00 AAA 9,264,924
Obligation Bonds, Series 2000, 5.125%, 12/15/19
(Pre-refunded 12/15/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
50,525 Total Colorado 42,480,630
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.6% (0.3% OF TOTAL INVESTMENTS)
4,395 Bridgeport, Connecticut, General Obligation Bonds, 8/11 at 100.00 AAA 4,754,203
Series 2001C, 5.375%, 8/15/17 (Pre-refunded 8/15/11) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
5,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 5,186,200
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.250%, 10/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,250 Dade County, Florida, Water and Sewerage System Revenue 10/07 at 102.00 AAA 2,328,548
Bonds, Series 1997, 5.375%, 10/01/16 - FGIC Insured
5,000 Orange County Health Facilities Authority, Florida, Hospital 11/10 at 101.00 A+ (4) 5,568,750
Revenue Bonds, Adventist Health System/Sunbelt Obligated
Group, Series 2000, 6.500%, 11/15/30 (Pre-refunded 11/15/10)
------------------------------------------------------------------------------------------------------------------------------------
7,250 Total Florida 7,897,298
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 1.3% (0.8% OF TOTAL INVESTMENTS)
10,000 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 10,760,600
Refunding Bonds, Series 2000B, 5.750%, 7/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.4% (9.5% OF TOTAL INVESTMENTS)
Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Revenues, Series 2001C:
1,000 5.500%, 12/01/18 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 1,090,180
3,690 5.000%, 12/01/19 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,937,636
3,000 5.000%, 12/01/20 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 3,201,330
2,000 5.000%, 12/01/21 (Pre-refunded 12/01/11) - FSA Insured 12/11 at 100.00 AAA 2,134,220
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ Chicago Board of Education, Illinois, Unlimited Tax General
Obligation Bonds, Dedicated Tax Revenues, Series 1998B-1:
9,400 0.000%, 12/01/14 - FGIC Insured No Opt. Call AAA $ 6,869,332
4,400 0.000%, 12/01/15 - FGIC Insured No Opt. Call AAA 3,073,840
32,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AAA 11,088,525
Series 1999, 0.000%, 1/01/32 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, Neighborhoods
Alive 21 Program, Series 2000A:
680 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AAA 742,376
4,320 6.000%, 1/01/28 (Pre-refunded 7/01/10) - FGIC Insured 7/10 at 101.00 AAA 4,716,274
6,380 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AAA 6,765,033
5.000%, 1/01/18 - AMBAC Insured
70 Chicago, Illinois, General Obligation Bonds, Series 2002A, 7/12 at 100.00 AAA 75,035
5.000%, 1/01/18 (Pre-refunded 7/01/12) - AMBAC Insured
5,045 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 5,400,723
Series 2000D, 5.750%, 1/01/30 - FGIC Insured
12,750 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/09 at 101.00 AAA 13,048,733
Series 1998A, 5.125%, 1/01/35 - MBIA Insured (Alternative
Minimum Tax)
Chicago, Illinois, Second Lien Wastewater Transmission
Revenue Bonds, Series 2000:
8,000 5.750%, 1/01/25 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 8,585,200
7,750 6.000%, 1/01/30 (Pre-refunded 1/01/10) - MBIA Insured 1/10 at 101.00 AAA 8,371,938
Illinois Educational Facilities Authority, Student Housing
Revenue Bonds, Educational Advancement Foundation Fund,
University Center Project, Series 2002:
3,000 6.625%, 5/01/17 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 3,474,960
1,800 6.000%, 5/01/22 (Pre-refunded 5/01/12) 5/12 at 101.00 Aaa 2,029,770
1,050 Illinois Finance Authority, General Obligation Debt Certificates, 12/14 at 100.00 Aaa 1,121,505
Local Government Program - Kankakee County, Series 2005B,
5.000%, 12/01/20 - AMBAC Insured
5,000 Illinois Finance Authority, General Revenue Bonds, 12/15 at 100.00 AAA 5,764,850
Northwestern University, Series 2006, Residuals
Series 1489, 7.406%, 12/01/42 (IF)
5,000 Illinois Finance Authority, Revenue Bonds, Northwestern 8/14 at 100.00 AA+ 5,490,350
Memorial Hospital, Series 2004A, 5.500%, 8/15/43
10,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 AAA 10,794,500
Health System, Series 2000, 5.875%, 2/15/30 -
AMBAC Insured (ETM)
2,290 Illinois Housing Development Authority, Section 8 Elderly 9/18 at 100.00 A 2,302,778
Housing Revenue Bonds, Garden House of Maywood
Development, Series 1992, 7.000%, 9/01/18
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 12/10 at 100.00 AAA 5,333,900
Series 2000, 5.450%, 12/01/21 - MBIA Insured
3,040 Joliet Regional Port District, Illinois, Airport Facilities 7/07 at 103.00 N/R (4) 3,155,155
Revenue Bonds, Lewis University Airport, Series 1997A,
7.250%, 7/01/18 (Pre-refunded 7/01/07) (Alternative
Minimum Tax)
2,270 Metropolitan Pier and Exposition Authority, Illinois, Revenue 6/12 at 101.00 AAA 2,377,280
Bonds, McCormick Place Expansion Project, Series 2002A,
5.000%, 12/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
139,605 Total Illinois 120,945,423
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.4% (1.6% OF TOTAL INVESTMENTS)
2,000 Indiana Health Facility Financing Authority, Hospital Revenue 3/14 at 100.00 AAA 2,152,500
Bonds, Deaconess Hospital Inc., Series 2004A,
5.375%, 3/01/34 - AMBAC Insured
3,240 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 3,518,089
Bonds, Marion General Hospital, Series 2002,
5.625%, 7/01/19 - AMBAC Insured
2,400 Indiana Health Facility Financing Authority, Revenue Bonds, 5/15 at 100.00 AAA 2,521,176
Community Hospitals of Indiana, Series 2005A,
5.000%, 5/01/35 - AMBAC Insured
5,125 Petersburg, Indiana, Pollution Control Revenue Refunding 12/06 at 100.00 A (4) 5,137,608
Bonds, Indianapolis Power and Light Company, Series 1995A,
6.625%, 12/01/24 (Pre-refunded 12/01/06) - ACA Insured
6,540 St. Joseph County Hospital Authority, Indiana, Revenue 2/08 at 101.00 AAA 6,581,202
Bonds, Memorial Health System, Series 1998A,
4.625%, 8/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,305 Total Indiana 19,910,575
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 8,585 Iowa Finance Authority, Hospital Facilities Revenue Bonds, 7/08 at 102.00 AAA $ 8,964,199
Iowa Health System, Series 1998A, 5.125%, 1/01/28
(Pre-refunded 7/01/08) - MBIA Insured
7,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 7,440,020
Revenue Bonds, Series 2005C, 5.625%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
15,585 Total Iowa 16,404,219
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,585 Johnson County Unified School District 232, Kansas, General 9/10 at 100.00 Aaa 4,781,192
Obligation Bonds, Series 2000, 4.750%, 9/01/19
(Pre-refunded 9/01/10) - FSA Insured
1,750 Wamego, Kansas, Pollution Control Revenue Bonds, Kansas 6/14 at 100.00 AAA 1,881,495
Gas and Electric Company, Series 2004, 5.300%, 6/01/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
6,335 Total Kansas 6,662,687
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3% (0.1% OF TOTAL INVESTMENTS)
2,500 Kentucky State Property and Buildings Commission, Revenue 2/12 at 100.00 AAA 2,715,150
Refunding Bonds, Project 74, Series 2002, 5.375%, 2/01/18
(Pre-refunded 2/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.4% (1.6% OF TOTAL INVESTMENTS)
10,000 Louisiana Public Facilities Authority, Hospital Revenue Bonds, No Opt. Call AAA 11,797,600
Franciscan Missionaries of Our Lady Health System,
Series 1998A, 5.750%, 7/01/25 - FSA Insured
5,500 Louisiana Public Facilities Authority, Revenue Bonds, Tulane 7/12 at 100.00 AAA 5,695,690
University, Series 2002A, 5.000%, 7/01/32 - AMBAC Insured
2,600 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 2,769,234
Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
18,100 Total Louisiana 20,262,524
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 8.0% (5.3% OF TOTAL INVESTMENTS)
7,405 Massachusetts Health and Educational Facilities Authority, No Opt. Call AAA 9,101,634
Revenue Bonds, Massachusetts Institute of Technology,
Series 2002K, 5.500%, 7/01/32
6,000 Massachusetts Industrial Finance Agency, Resource Recovery 12/08 at 102.00 BBB 6,200,940
Revenue Refunding Bonds, Ogden Haverhill Project,
Series 1998A, 5.600%, 12/01/19 (Alternative Minimum Tax)
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 13,792,545
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
13,500 Massachusetts Turnpike Authority, Metropolitan Highway 1/09 at 101.00 AAA 13,892,985
System Revenue Bonds, Subordinate Series 1999A,
5.000%, 1/01/39 - AMBAC Insured
1,375 Massachusetts Water Pollution Abatement Trust, Revenue 8/09 at 101.00 AAA 1,467,290
Bonds, MWRA Loan Program, Subordinate Series 1999A,
5.750%, 8/01/29 (Pre-refunded 8/01/09)
5,570 Massachusetts Water Pollution Abatement Trust, Revenue 8/09 at 101.00 AAA 5,923,472
Bonds, MWRA Loan Program, Subordinate Series 1999A,
5.750%, 8/01/29
10,000 Massachusetts Water Resources Authority, General Revenue 8/10 at 101.00 AAA 10,825,600
Bonds, Series 2000A, 5.750%, 8/01/39 (Pre-refunded
8/01/10) - FGIC Insured
5,730 University of Massachusetts Building Authority, Senior Lien 11/10 at 100.00 AAA 6,091,391
Project Revenue Bonds, Series 2000-2, 5.250%, 11/01/20
(Pre-refunded 11/01/10) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
63,080 Total Massachusetts 67,295,857
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.1% (1.4% OF TOTAL INVESTMENTS)
5,000 Detroit, Michigan, Second Lien Sewerage Disposal System 7/15 at 100.00 AAA 5,271,050
Revenue Bonds, Series 2005A, 5.000%, 7/01/35 -
MBIA Insured
3,790 Michigan Municipal Bond Authority, General Obligation Bonds, 6/15 at 100.00 AAA 4,052,988
Detroit City School District, Series 2005, 5.000%, 6/01/20 -
FSA Insured
7,425 Michigan State Hospital Finance Authority, Hospital Revenue 11/09 at 101.00 A1 (4) 8,003,482
Bonds, Henry Ford Health System, Series 1999A,
6.000%, 11/15/24 (Pre-refunded 11/15/09)
------------------------------------------------------------------------------------------------------------------------------------
16,215 Total Michigan 17,327,520
------------------------------------------------------------------------------------------------------------------------------------
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.6% (1.0% OF TOTAL INVESTMENTS)
Chaska, Minnesota, Electric Revenue Bonds, Generating
Facility Project, Series 2000A:
$ 1,930 6.000%, 10/01/20 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) $ 2,101,056
2,685 6.000%, 10/01/25 (Pre-refunded 10/01/10) 10/10 at 100.00 A3 (4) 2,922,972
3,655 Dakota and Washington Counties Housing and Redevelopment No Opt. Call AAA 5,266,599
Authority, Minnesota, GNMA Mortgage-Backed Securities
Program Single Family Residential Mortgage Revenue Bonds,
Series 1988, 8.450%, 9/01/19 (Alternative Minimum Tax) (ETM)
3,000 Minneapolis-St. Paul Metropolitan Airports Commission, 1/08 at 101.00 AAA 3,055,980
Minnesota, Airport Revenue Bonds, Series 1998A,
5.000%, 1/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,270 Total Minnesota 13,346,607
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,875 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,922,513
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
2,500 Mississippi Hospital Equipment and Facilities Authority, 1/11 at 101.00 Aaa 2,649,325
Revenue Bonds, Forrest County General Hospital, Series 2000,
5.500%, 1/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
4,375 Total Mississippi 4,571,838
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.6% (1.1% OF TOTAL INVESTMENTS)
15,000 Kansas City Municipal Assistance Corporation, Missouri, No Opt. Call AAA 5,883,450
Leasehold Revenue Bonds, Series 2004B-1, 0.000%, 4/15/28 -
AMBAC Insured
2,400 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 2,555,616
Agency, Mass Transit Sales Tax Appropriation Bonds,
Metrolink Cross County Extension Project, Series 2002B,
5.000%, 10/01/23 - FSA Insured
15,350 Springfield Public Building Corporation, Missouri, Lease No Opt. Call AAA 5,046,620
Revenue Bonds, Jordan Valley Park Projects, Series 2000A,
0.000%, 6/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,750 Total Missouri 13,485,686
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.1% (0.1% OF TOTAL INVESTMENTS)
190 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 100.00 AAA 192,421
Revenue Bonds, Series 1995A, 6.800%, 3/01/35 (Alternative
Minimum Tax)
500 Nebraska Investment Finance Authority, Single Family Housing 3/07 at 100.00 AAA 505,480
Revenue Bonds, Series 1995B, 6.450%, 3/01/35 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
690 Total Nebraska 697,901
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.9% (3.9% OF TOTAL INVESTMENTS)
Clark County School District, Nevada, General Obligation Bonds,
Series 2002C:
34,470 5.000%, 6/15/20 (Pre-refunded 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 36,935,981
10,380 5.000%, 6/15/22 (Pre-refunded 6/15/12) - MBIA Insured 6/12 at 100.00 AAA 11,122,585
1,275 Nevada, General Obligation Refunding Bonds, Municipal Bond 5/08 at 100.00 AAA 1,296,305
Bank Projects 65 and R-6, Series 1998, 5.000%, 5/15/22 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
46,125 Total Nevada 49,354,871
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 6.6% (4.4% OF TOTAL INVESTMENTS)
1,090 Camden County Pollution Control Financing Authority, 12/06 at 100.00 Baa3 1,105,195
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991D, 7.250%, 12/01/10
1,000 New Jersey Building Authority, State Building Revenue Bonds, 12/12 at 100.00 AAA 1,078,260
Series 2002A, 5.000%, 12/15/21 (Pre-refunded 12/15/12) -
FSA Insured
2,150 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 2,402,797
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,255,911
System Bonds, Series 2001B, 6.000%, 12/15/19
(Pre-refunded 12/15/11) - MBIA Insured
3,200 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,554,656
System Bonds, Series 2003C, 5.500%, 6/15/22
(Pre-refunded 6/15/13)
45
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (continued)
New Jersey Transportation Trust Fund Authority, Transportation
System Bonds, Series 2006C:
$ 20,000 0.000%, 12/15/33 - FSA Insured No Opt. Call AAA $ 6,208,400
20,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AAA 5,663,000
20,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AAA 5,375,000
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
2,635 5.750%, 6/01/32 6/12 at 100.00 BBB 2,800,583
1,000 6.125%, 6/01/42 6/12 at 100.00 BBB 1,085,820
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
19,485 6.750%, 6/01/39 6/13 at 100.00 BBB 22,238,036
1,850 6.250%, 6/01/43 6/13 at 100.00 BBB 2,046,488
------------------------------------------------------------------------------------------------------------------------------------
94,435 Total New Jersey 55,814,146
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
5,925 New Mexico Hospital Equipment Loan Council, Hospital 8/11 at 101.00 AA- (4) 6,447,229
Revenue Bonds, Presbyterian Healthcare Services,
Series 2001A, 5.500%, 8/01/21 (Pre-refunded 8/01/11)
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.6% (11.6% OF TOTAL INVESTMENTS)
60 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AA- 61,513
Revenue Bonds, Mental Health Services Facilities,
Series 1997A, 5.750%, 2/15/27
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 1997A:
115 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 118,012
4,825 5.750%, 2/15/27 (Pre-refunded 2/15/07) 2/07 at 102.00 AA- (4) 4,951,367
165 Dormitory Authority of the State of New York, Improvement 2/10 at 100.00 AAA 176,905
Revenue Bonds, Mental Health Services Facilities,
Series 2000B, 6.000%, 2/15/30 - MBIA Insured
Dormitory Authority of the State of New York, Improvement
Revenue Bonds, Mental Health Services Facilities, Series 2000B:
1,005 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 1,082,837
8,830 6.000%, 2/15/30 (Pre-refunded 2/15/10) - MBIA Insured 2/10 at 100.00 AAA 9,513,884
275 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 283,121
Bonds, Fordham University, Series 1998, 5.000%, 7/01/28 -
MBIA Insured
2,250 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 2,514,892
Bonds, Mount Sinai School of Medicine, Series 1994A,
5.150%, 7/01/24 - MBIA Insured
20,000 Erie County Tobacco Asset Securitization Corporation, 7/10 at 101.00 AAA 21,907,600
New York, Senior Tobacco Settlement Asset-Backed Bonds,
Series 2000, 6.125%, 7/15/30 (Pre-refunded 7/15/10)
1,130 Long Island Power Authority, New York, Electric System 9/11 at 100.00 A- (4) 1,221,575
General Revenue Bonds, Series 2001A, 5.375%, 9/01/25
(Pre-refunded 9/01/11)
15,000 Metropolitan Transportation Authority, New York, Dedicated 4/10 at 100.00 AAA 16,179,600
Tax Fund Bonds, Series 2000A, 6.000%, 4/01/30
(Pre-refunded 4/01/10) - FGIC Insured
12,500 Nassau County Tobacco Settlement Corporation, New York, 7/09 at 101.00 AAA 13,520,375
Tobacco Settlement Asset-Backed Bonds, Series 1999A,
6.400%, 7/15/33 (Pre-refunded 7/15/09)
New York City Transitional Finance Authority, New York, Future
Tax Secured Bonds, Fiscal Series 2000B:
8,035 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 8,711,145
2,065 5.750%, 11/15/19 (Pre-refunded 5/15/10) 5/10 at 101.00 AAA 2,238,770
380 New York City, New York, General Obligation Bonds, Fiscal 8/07 at 101.00 AA- 390,340
Series 1997H, 6.125%, 8/01/25
5,620 New York City, New York, General Obligation Bonds, Fiscal 8/07 at 101.00 AA- (4) 5,783,992
Series 1997H, 6.125%, 8/01/25 (Pre-refunded 8/01/07)
7,600 New York City, New York, General Obligation Bonds, Fiscal 6/07 at 101.00 AAA 7,762,336
Series 1997M, 5.500%, 6/01/17 - AMBAC Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 2002G:
950 5.000%, 8/01/17 8/12 at 100.00 AA- 1,003,057
6,555 5.750%, 8/01/18 8/12 at 100.00 AA- 7,184,411
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 3,990 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 A1 (4) $ 4,445,977
Series 2002G, 5.750%, 8/01/18 (Pre-refunded 8/01/12)
5,000 New York City, New York, General Obligation Bonds, Fiscal 8/12 at 100.00 AA- 5,507,150
Series 2003A, 5.750%, 8/01/16
New York State Environmental Facilities Corporation, State Clean
Water and Drinking Water Revolving Funds Revenue Bonds, New York
City Municipal Water Finance Authority Projects, Second
Resolution Bonds, Series 2001C:
6,035 5.000%, 6/15/20 6/11 at 100.00 AAA 6,400,842
6,575 5.000%, 6/15/22 6/11 at 100.00 AAA 6,926,237
2,810 Penfield-Crown Oak Housing Development Corporation, 2/07 at 100.00 AAA 2,829,389
New York, FHA-Insured Section 8 Assisted Multifamily
Mortgage Revenue Refunding Bonds, Crown Oak Estates,
Series 1991A, 7.350%, 8/01/23
13,620 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 14,700,883
Revenue Bonds, One Hundred Twenty-Eighth Series 2002,
5.000%, 11/01/20 - FSA Insured
2,250 United Nations Development Corporation, New York, Senior 1/08 at 100.00 A3 2,286,000
Lien Revenue Bonds, Series 2004A, 5.250%, 7/01/21
------------------------------------------------------------------------------------------------------------------------------------
137,640 Total New York 147,702,210
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.6% (1.7% OF TOTAL INVESTMENTS)
665 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101.00 AAA 676,451
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 - MBIA Insured
12,405 North Carolina Medical Care Commission, Hospital Revenue 12/08 at 101.00 AAA 12,820,071
Bonds, Pitt County Memorial Hospital, Series 1998A,
4.750%, 12/01/28 (Pre-refunded 12/01/08) - MBIA Insured
7,500 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 8,086,050
Revenue Bonds, Series 2003A, 5.250%, 1/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,570 Total North Carolina 21,582,572
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.5% (1.7% OF TOTAL INVESTMENTS)
Cincinnati City School District, Hamilton County, Ohio,
General Obligation Bonds, Series 2002:
2,165 5.250%, 6/01/19 - FSA Insured 12/12 at 100.00 AAA 2,340,733
2,600 5.250%, 6/01/21 - FSA Insured 12/12 at 100.00 AAA 2,811,042
2,000 5.000%, 12/01/22 - FSA Insured 12/12 at 100.00 AAA 2,120,280
3,335 Columbus City School District, Franklin County, Ohio, General 12/16 at 100.00 AAA 3,110,855
Obligation Bonds, Series 2006, Drivers 1488,
5.077%, 12/01/32 - FSA Insured (IF)
10,750 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 10,907,810
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,850 Total Ohio 21,290,720
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 6.6% (4.4% OF TOTAL INVESTMENTS)
17,510 Pottawatomie County Home Finance Authority, Oklahoma, No Opt. Call AAA 20,446,602
Single Family Mortgage Revenue Bonds, Series 1991A,
8.625%, 7/01/10 (ETM)
11,750 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 11,928,130
Bonds, American Airlines Inc., Series 2000B, 6.000%, 6/01/35
(Mandatory put 12/01/08) (Alternative Minimum Tax)
23,005 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding 12/08 at 100.00 B 23,196,632
Bonds, American Airlines Inc., Series 2001B,
5.650%, 12/01/35 (Mandatory put 12/01/08) (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
52,265 Total Oklahoma 55,571,364
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.4% (0.2% OF TOTAL INVESTMENTS)
3,000 Deschutes County School District 1, Bend-La Pine, Oregon, 6/11 at 100.00 Aaa 3,249,240
General Obligation Bonds, Series 2001A, 5.500%, 6/15/18
(Pre-refunded 6/15/11) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.7% (2.4% OF TOTAL INVESTMENTS)
4,780 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 5,033,531
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
2,275 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 2/07 at 100.00 AAA 2,290,538
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
47
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 2,600 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/14 at 100.00 AAA $ 2,886,910
Series 2004A, 5.500%, 12/01/31 - AMBAC Insured
7,800 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 8,169,954
General Ordinance, Fourth Series 1998, 5.000%, 8/01/32 -
FSA Insured
Philadelphia School District, Pennsylvania, General Obligation
Bonds, Series 2002B:
6,000 5.625%, 8/01/19 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 6,630,540
5,500 5.625%, 8/01/20 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 6,077,995
------------------------------------------------------------------------------------------------------------------------------------
28,955 Total Pennsylvania 31,089,468
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,000 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 1,032,850
Revenue Bonds, Series 2005A, 0.000%, 7/01/42 -
FGIC Insured
5,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 5,246,400
5.000%, 8/01/27 - FSA Insured
1,500 Puerto Rico Public Buildings Authority, Guaranteed Government 7/12 at 100.00 BBB 1,582,785
Facilities Revenue Refunding Bonds, Series 2002D,
5.125%, 7/01/20
1,500 Puerto Rico, General Obligation and Public Improvement Bonds, No Opt. Call BBB 1,752,915
Series 2001A, 5.500%, 7/01/29
3,965 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 4,166,065
Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33
------------------------------------------------------------------------------------------------------------------------------------
16,965 Total Puerto Rico 13,781,015
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.0% (5.9% OF TOTAL INVESTMENTS)
24,725 Greenville County School District, South Carolina, Installment 12/12 at 101.00 AA- (4) 27,433,376
Purchase Revenue Bonds, Series 2002, 5.500%, 12/01/22
(Pre-refunded 12/01/12)
Horry County School District, South Carolina, General Obligation
Bonds, Series 2001A:
5,840 5.000%, 3/01/20 3/12 at 100.00 Aa1 6,185,261
5,140 5.000%, 3/01/21 3/12 at 100.00 Aa1 5,443,877
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
5,240 5.250%, 8/15/20 - MBIA Insured 8/14 at 100.00 AAA 5,683,461
3,000 5.250%, 2/15/24 - MBIA Insured 8/14 at 100.00 AAA 3,226,830
13,615 South Carolina Transportation Infrastructure Bank, Junior Lien 10/11 at 100.00 Aaa 14,463,759
Revenue Bonds, Series 2001B, 5.125%, 10/01/21 -
AMBAC Insured
12,305 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 13,358,185
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/28
------------------------------------------------------------------------------------------------------------------------------------
69,865 Total South Carolina 75,794,749
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.6% (1.1% OF TOTAL INVESTMENTS)
3,000 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 3,292,140
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.375%, 4/15/22
7,415 Memphis, Tennessee, General Improvement Bonds, 11/10 at 101.00 A1 7,821,639
Series 2002, 5.000%, 11/01/20
2,265 Tennessee Housing Development Agency, Homeownership 7/10 at 100.00 AA 2,315,645
Program Bonds, Series 2000-2B, 6.350%, 1/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,680 Total Tennessee 13,429,424
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.4% (11.5% OF TOTAL INVESTMENTS)
1,000 Alamo Community College District, Bexar County, Texas, 11/11 at 100.00 AAA 1,076,770
Combined Fee Revenue Refunding Bonds, Series 2001,
5.375%, 11/01/16 - FSA Insured
6,500 Bell County Health Facilities Development Corporation, Texas, 11/08 at 101.00 A- 6,666,725
Retirement Facility Revenue Bonds, Buckner Retirement
Services Inc. Obligated Group, Series 1998,
5.250%, 11/15/19
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 11,255 Brazos River Authority, Texas, Pollution Control Revenue No Opt. Call Baa2 $ 11,975,995
Refunding Bonds, TXU Electric Company, Series 2001C,
5.750%, 5/01/36 (Mandatory put 11/01/11) (Alternative
Minimum Tax)
5,500 Central Texas Regional Mobility Authority, Travis and 1/15 at 100.00 AAA 5,729,790
Williamson Counties, Toll Road Revenue Bonds,
Series 2005, 5.000%, 1/01/45 - FGIC Insured
5,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 5,368,450
Refunding and Improvement Bonds, Series 2001A,
5.625%, 11/01/21 - FGIC Insured (Alternative Minimum Tax)
2,500 Harris County Health Facilities Development Corporation, 11/13 at 100.00 AAA 2,607,575
Texas, Thermal Utility Revenue Bonds, TECO Project,
Series 2003, 5.000%, 11/15/30 - MBIA Insured
2,700 Harris County-Houston Sports Authority, Texas, Senior Lien 11/11 at 100.00 AAA 2,870,316
Revenue Bonds, Series 2001G, 5.250%, 11/15/30 -
MBIA Insured
22,500 Houston, Texas, Junior Lien Water and Sewerage System 12/10 at 100.00 AAA 23,875,425
Revenue Refunding Bonds, Series 2000B, 5.250%, 12/01/30
(Pre-refunded 12/01/10) - FGIC Insured
6,000 Leander Independent School District, Williamson and Travis 8/14 at 33.33 AAA 1,389,360
Counties, Texas, General Obligation Bonds, Series 2006,
0.000%, 8/15/34
Lubbock Health Facilities Development Corporation, Texas,
Revenue Bonds, St. Joseph Health System, Series 1998:
4,900 5.250%, 7/01/15 7/08 at 101.00 AA- 5,057,045
8,495 5.250%, 7/01/16 7/08 at 101.00 AA- 8,766,585
17,655 Matagorda County Navigation District 1, Texas, Revenue 11/08 at 102.00 AAA 18,393,509
Refunding Bonds, Houston Industries Inc., Series 1998B,
5.150%, 11/01/29 - MBIA Insured
7,650 Port of Corpus Christi Authority, Nueces County, Texas, Revenue 11/06 at 101.00 BBB 7,742,642
Refunding Bonds, Union Pacific Corporation, Series 1992,
5.350%, 11/01/10
2,000 Sam Rayburn Municipal Power Agency, Texas, Power Supply 10/12 at 100.00 AA 2,194,300
System Revenue Refunding Bonds, Series 2002A,
5.750%, 10/01/21 - RAAI Insured
14,680 San Antonio Independent School District, Bexar County, 8/09 at 100.00 AAA 15,548,028
Texas, General Obligation Bonds, Series 1999,
5.800%, 8/15/29 (Pre-refunded 8/15/09)
11,300 San Antonio, Texas, Electric and Gas System Revenue 2/17 at 100.00 AAA 12,221,176
Refunding Bonds, New Series 1992, 5.000%, 2/01/17 (ETM)
3,750 Spring Branch Independent School District, Harris County, 2/11 at 100.00 AAA 3,940,088
Texas, Limited Tax Schoolhouse and Refunding Bonds,
Series 2001, 5.125%, 2/01/23
White Settlement Independent School District, Tarrant
County, Texas, General Obligation Bonds, Series 2006:
9,110 0.000%, 8/15/38 8/15 at 30.30 AAA 1,831,566
9,110 0.000%, 8/15/39 8/15 at 28.63 AAA 1,727,985
6,610 0.000%, 8/15/42 8/15 at 24.42 AAA 1,067,912
7,110 0.000%, 8/15/43 8/15 at 23.11 AAA 1,086,906
5,000 Wichita Falls, Wichita County, Texas, Priority Lien Water and 8/11 at 100.00 AAA 5,244,950
Sewerage System Revenue Bonds, Series 2001,
5.000%, 8/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
170,325 Total Texas 146,383,098
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,800 Carbon County, Utah, Solid Waste Disposal Revenue 2/07 at 100.00 BB- 5,846,980
Refunding Bonds, Laidlaw/ECDC Project, Guaranteed by
Allied Waste Industries, Series 1995, 7.500%, 2/01/10
(Alternative Minimum Tax)
7,155 Utah Associated Municipal Power Systems, Revenue Bonds, 4/13 at 100.00 AAA 7,581,080
Payson Power Project, Series 2003A, 5.000%, 4/01/25 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,955 Total Utah 13,428,060
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.1% (1.4% OF TOTAL INVESTMENTS)
4,000 Norfolk Airport Authority, Virginia, Airport Revenue Refunding 7/11 at 100.00 AAA 4,124,120
Bonds, Series 2001B, 5.125%, 7/01/31 - FGIC Insured
(Alternative Minimum Tax)
11,040 Suffolk Redevelopment and Housing Authority, Virginia, No Opt. Call Aaa 11,504,563
FNMA Multifamily Housing Revenue Refunding Bonds,
Windsor at Potomac Vista L.P. Project, Series 2001,
4.850%, 7/01/31 (Mandatory put 7/01/11)
49
Nuveen Quality Income Municipal Fund, Inc. (NQU) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA (continued)
$ 665 Virginia Housing Development Authority, Rental Housing 5/09 at 101.00 AA+ $ 682,090
Bonds, Series 1999F, 5.000%, 5/01/15 (Alternative
Minimum Tax)
Virginia Resources Authority, Water System Revenue Refunding
Bonds, Series 2002:
500 5.000%, 4/01/18 4/12 at 102.00 AA 538,005
500 5.000%, 4/01/19 4/12 at 102.00 AA 536,525
------------------------------------------------------------------------------------------------------------------------------------
16,705 Total Virginia 17,385,303
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.2% (6.7% OF TOTAL INVESTMENTS)
6,750 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,267,455
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,761,700
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
6,950 Port of Seattle, Washington, Revenue Bonds, Series 2000B, 8/10 at 100.00 AAA 7,347,887
5.625%, 2/01/24 - MBIA Insured (Alternative Minimum Tax)
13,400 Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 Aa3 14,160,316
Bonds, Series 2000, 5.400%, 12/01/25
9,440 Tacoma, Washington, Electric System Revenue Refunding 1/11 at 101.00 AAA 10,320,752
Bonds, Series 2001A, 5.750%, 1/01/18 (Pre-refunded
1/01/11) - FSA Insured
5,000 Washington State Healthcare Facilities Authority, Revenue 10/16 at 100.00 AAA 5,056,550
Bonds, Providence Health Care Services, Series 2006A,
4.625%, 10/01/34 - FGIC Insured
3,385 Washington State Tobacco Settlement Authority, Tobacco 6/13 at 100.00 BBB 3,763,849
Settlement Asset-Backed Revenue Bonds, Series 2002,
6.500%, 6/01/26
18,145 Washington, General Obligation Bonds, Series 2001-02A, 7/11 at 100.00 AAA 19,019,770
5.000%, 7/01/23 - FSA Insured
Washington, Motor Vehicle Fuel Tax General Obligation
Bonds, Series 2002C:
7,000 5.000%, 1/01/21 - FSA Insured 1/12 at 100.00 AAA 7,398,720
7,960 5.000%, 1/01/22 - FSA Insured 1/12 at 100.00 AAA 8,369,542
------------------------------------------------------------------------------------------------------------------------------------
80,530 Total Washington 85,466,541
------------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 190 Badger Tobacco Asset Securitization Corporation, Wisconsin, 6/12 at 100.00 BBB $ 205,426
Tobacco Settlement Asset-Backed Bonds, Series 2002,
6.125%, 6/01/27
7,545 La Crosse, Wisconsin, Pollution Control Revenue Refunding 12/08 at 102.00 AAA 7,934,247
Bonds, Dairyland Power Cooperative, Series 1997A,
5.450%, 9/01/14 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, 5/14 at 100.00 BBB+ 3,277,380
Revenue Bonds, Fort Healthcare Inc., Series 2004,
5.750%, 5/01/29
430 Wisconsin Housing and Economic Development Authority, 1/07 at 100.00 AA 430,722
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
------------------------------------------------------------------------------------------------------------------------------------
11,165 Total Wisconsin 11,847,775
------------------------------------------------------------------------------------------------------------------------------------
$ 1,374,735 Total Investments (cost $1,179,183,850) - 151.9% 1,275,317,703
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 16,433,596
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.8)% (452,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 839,751,299
====================================================================================================================
(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.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
51
Nuveen Premier Municipal Income Fund, Inc. (NPF)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.9% (0.6% OF TOTAL INVESTMENTS)
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 2005A:
$ 1,200 5.250%, 11/15/20 11/15 at 100.00 Baa1 $ 1,271,244
400 5.000%, 11/15/30 11/15 at 100.00 Baa1 410,376
1,000 Montgomery BMC Special Care Facilities Financing Authority, 11/14 at 100.00 A3 (4) 1,100,350
Alabama, Revenue Bonds, Baptist Medical Center,
Series 2004C, 5.250%, 11/15/29 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
2,600 Total Alabama 2,781,970
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.2% (1.4% OF TOTAL INVESTMENTS)
2,000 Alaska Housing Finance Corporation, General Mortgage 6/09 at 101.00 AAA 2,091,080
Revenue Bonds, Series 1999A, 6.000%, 6/01/49 -
MBIA Insured
4,500 Northern Tobacco Securitization Corporation, Alaska, Tobacco 6/14 at 100.00 Baa3 4,560,750
Settlement Asset-Backed Bonds, Series 2006A,
5.000%, 6/01/46
------------------------------------------------------------------------------------------------------------------------------------
6,500 Total Alaska 6,651,830
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.8% (3.1% OF TOTAL INVESTMENTS)
Glendale Industrial Development Authority, Arizona, Revenue
Bonds, John C. Lincoln Health Network, Series 2005B:
100 5.250%, 12/01/24 12/15 at 100.00 BBB 105,843
135 5.250%, 12/01/25 12/15 at 100.00 BBB 142,785
7,500 Salt River Project Agricultural Improvement and Power 1/13 at 100.00 Aa1 7,939,500
District, Arizona, Electric System Revenue Bonds,
Series 2002B, 5.000%, 1/01/25
6,000 Salt River Project Agricultural Improvement and Power 1/12 at 101.00 Aa1 6,497,760
District, Arizona, Electric System Revenue Refunding
Bonds, Series 2002A, 5.250%, 1/01/15
------------------------------------------------------------------------------------------------------------------------------------
13,735 Total Arizona 14,685,888
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.6% (1.1% OF TOTAL INVESTMENTS)
4,655 Arkansas Development Finance Authority, State Facility 11/15 at 100.00 AAA 4,958,646
Revenue Bonds, Department of Correction Special Needs
Unit Project, Series 2005B, 5.000%, 11/01/25 - FSA Insured
31 Drew County Public Facilities Board, Arkansas, FNMA 2/07 at 100.00 Aaa 31,310
Mortgage-Backed Single Family Revenue Refunding Bonds,
Series 1993A-2, 7.900%, 8/01/11
32 Stuttgart Public Facilities Board, Arkansas, Single Family 9/11 at 100.00 Aaa 31,733
Mortgage Revenue Refunding Bonds, Series 1993A,
7.900%, 9/01/11
------------------------------------------------------------------------------------------------------------------------------------
4,718 Total Arkansas 5,021,689
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.4% (13.9% OF TOTAL INVESTMENTS)
5,690 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 6,121,530
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 AA+ 1,865,484
University of Southern California, Series 2005,
4.750%, 10/01/28
1,975 California Health Facilities Financing Authority, Health No Opt. Call A 2,088,365
Facility Revenue Bonds, Catholic Healthcare West,
Series 2004I, 4.950%, 7/01/26 (Mandatory put 7/01/14)
4,500 California Health Facilities Financing Authority, Revenue 11/15 at 100.00 A3 4,711,455
Bonds, Cedars-Sinai Medical Center, Series 2005,
5.000%, 11/15/27
2,670 California Infrastructure Economic Development Bank, 1/28 at 100.00 AAA 3,775,193
First Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A. Residuals Series 1485, 7.327%, 7/01/33
(Pre-refunded 1/01/28) - AMBAC Insured (IF)
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 500 California Statewide Community Development Authority, 7/15 at 100.00 BBB+ $ 513,770
Revenue Bonds, Daughters of Charity Health System,
Series 2005A, 5.000%, 7/01/39
1,600 California Statewide Community Development Authority, 8/16 at 100.00 A+ 1,713,984
Revenue Bonds, Kaiser Permanente System, Series 2001C,
5.250%, 8/01/31
1,000 California, Economic Recovery Revenue Bonds, Series 2004A, No Opt. Call AA+ 1,107,870
5.250%, 7/01/14
California, General Obligation Bonds, Series 2004:
4,000 5.000%, 2/01/23 2/14 at 100.00 A+ 4,222,280
4,900 5.000%, 6/01/23 - AMBAC Insured 12/14 at 100.00 AAA 5,223,204
1,000 Chula Vista, California, Industrial Development Revenue 6/14 at 102.00 A2 1,088,590
Bonds, San Diego Gas and Electric Company, Series 1996A,
5.300%, 7/01/21
28,000 Foothill/Eastern Transportation Corridor Agency, California, No Opt. Call AAA 18,570,718
Toll Road Revenue Bonds, Series 1995A,
0.000%, 1/01/17 (ETM)
450 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 513,581
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
6,005 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 6,465,884
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 -
AMBAC Insured
San Diego County, California, Certificates of Participation,
Burnham Institute, Series 2006:
100 5.000%, 9/01/21 9/15 at 102.00 Baa3 104,157
110 5.000%, 9/01/23 9/15 at 102.00 Baa3 114,094
7,500 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 Aaa 7,975,275
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/17 (Pre-refunded 8/01/10) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
71,800 Total California 66,175,434
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.3% (3.4% OF TOTAL INVESTMENTS)
1,000 Adams and Weld Counties School District 27J, Brighton, 12/14 at 100.00 AAA 1,068,810
Colorado, General Obligation Bonds, Series 2004,
5.000%, 12/01/23 - FGIC Insured
1,000 Colorado Health Facilities Authority, Revenue Bonds, 6/16 at 100.00 A- 1,035,390
Evangelical Lutheran Good Samaritan Society, Series 2005,
5.000%, 6/01/29
1,150 Colorado Health Facilities Authority, Revenue Bonds, Parkview 9/14 at 100.00 A3 1,182,752
Medical Center, Series 2004, 5.000%, 9/01/25
400 Colorado Health Facilities Authority, Revenue Bonds, 3/15 at 100.00 BBB+ 413,748
Poudre Valley Health Care, Series 2005F, 5.000%, 3/01/25
1,000 Colorado Health Facilities Authority, Revenue Bonds, 12/09 at 101.00 Aaa 1,070,990
Poudre Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded 12/01/09) - FSA Insured
750 Colorado Health Facilities Authority, Revenue Bonds, Vail Valley 1/15 at 100.00 BBB+ 792,517
Medical Center, Series 2004, 5.000%, 1/15/17
8,930 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AAA 10,804,226
Series 2006, 7.281%, 11/15/25 - FGIC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
14,230 Total Colorado 16,368,433
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,000 Connecticut Development Authority, Pollution Control Revenue 10/08 at 102.00 Baa1 2,095,700
Refunding Bonds, Connecticut Light and Power Company,
Series 1993A, 5.850%, 9/01/28
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 2.8% (1.8% OF TOTAL INVESTMENTS)
4,000 Dade County, Florida, Aviation Revenue Bonds, Series 1996A, 4/07 at 102.00 AAA 4,085,800
5.750%, 10/01/18 - MBIA Insured (Alternative Minimum Tax)
1,700 Hillsborough County Industrial Development Authority, Florida, 4/10 at 101.00 N/R 1,871,581
Exempt Facilities Remarketed Revenue Bonds, National
Gypsum Company, Apollo Beach Project, Series 2000B,
7.125%, 4/01/30 (Alternative Minimum Tax)
53
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,500 Hillsborough County Industrial Development Authority, 10/12 at 100.00 Baa2 $ 2,595,200
Florida, Pollution Control Revenue Bonds, Tampa Electric
Company Project, Series 2002, 5.100%, 10/01/13
------------------------------------------------------------------------------------------------------------------------------------
8,200 Total Florida 8,552,581
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 4.2% (2.7% OF TOTAL INVESTMENTS)
8,000 George L. Smith II World Congress Center Authority, Atlanta, 7/10 at 101.00 AAA 8,475,600
Georgia, Revenue Refunding Bonds, Domed Stadium Project,
Series 2000, 5.500%, 7/01/20 - MBIA Insured
(Alternative Minimum Tax)
4,105 Municipal Electric Authority of Georgia, Combustion Turbine 11/13 at 100.00 AAA 4,432,620
Revenue Bonds, Series 2003A, 5.125%, 11/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,105 Total Georgia 12,908,220
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,381,760
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1999D, 6.150%, 1/01/20 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
120 Idaho Housing and Finance Association, Single Family 1/07 at 102.00 Aa1 122,586
Mortgage Bonds, Series 1996E, 6.350%, 7/01/14
(Alternative Minimum Tax)
500 Madison County, Idaho, Hospital Revenue Certificates of 9/16 at 100.00 BBB- 527,550
Participation, Madison Memorial Hospital, Series 2006,
5.250%, 9/01/26
------------------------------------------------------------------------------------------------------------------------------------
620 Total Idaho 650,136
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.3% (7.3% OF TOTAL INVESTMENTS)
790 Chicago Public Building Commission, Illinois, General Obligation No Opt. Call AAA 887,146
Lease Certificates, Chicago Board of Education, Series 1990B,
7.000%, 1/01/15 - MBIA Insured (ETM)
8,670 Chicago, Illinois, General Obligation Bonds, City Colleges, No Opt. Call AAA 4,127,874
Series 1999, 0.000%, 1/01/24 - FGIC Insured
8,500 Chicago, Illinois, Senior Lien Water Revenue Bonds, No Opt. Call AAA 10,531,923
Series 2001, 5.750%, 11/01/30 - AMBAC Insured
200 Illinois Finance Authority, Revenue Bonds, Proctor Hospital, 1/16 at 100.00 BBB- 205,882
Series 2006, 5.125%, 1/01/25
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,044,290
Medical Center, Series 2002, 5.500%, 5/15/32
3,865 Illinois Housing Development Authority, Section 8 Elderly 9/18 at 100.00 A 3,886,567
Housing Revenue Bonds, Garden House of Maywood
Development, Series 1992, 7.000%, 9/01/18
1,500 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 1,628,040
Series 2002, 5.500%, 2/01/17 - FGIC Insured
Lombard Public Facilities Corporation, Illinois, Second Tier
Conference Center and Hotel Revenue Bonds, Series 2005B:
850 5.250%, 1/01/25 1/16 at 100.00 AA- 908,931
1,750 5.250%, 1/01/30 1/16 at 100.00 AA- 1,869,963
Metropolitan Pier and Exposition Authority, Illinois, Revenue
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A:
10,575 0.000%, 12/15/23 - MBIA Insured No Opt. Call AAA 5,061,512
10,775 0.000%, 12/15/24 - MBIA Insured No Opt. Call AAA 4,922,451
------------------------------------------------------------------------------------------------------------------------------------
48,475 Total Illinois 35,074,579
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.9% (2.5% OF TOTAL INVESTMENTS)
Anderson School Building Corporation, Madison County,
Indiana, First Mortgage Bonds, Series 2003:
1,000 5.500%, 7/15/19 (Pre-refunded 1/15/14) - FSA Insured 1/14 at 100.00 AAA 1,115,890
2,275 5.500%, 7/15/23 (Pre-refunded 1/15/14) - FSA Insured 1/14 at 100.00 AAA 2,538,650
6,180 Crown Point Multi-School Building Corporation, Indiana, No Opt. Call AAA 3,057,493
First Mortgage Bonds, Crown Point Community School
Corporation, Series 2000, 0.000%, 1/15/23 - MBIA Insured
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 1,250 Portage, Indiana, Revenue Bonds, Series 2006, 5.000%, 7/15/23 7/16 at 100.00 BBB+ $ 1,275,938
1,000 St. Joseph County Hospital Authority, Indiana, Revenue Bonds, 2/15 at 100.00 BBB 1,027,990
Madison Center Inc., Series 2005, 5.250%, 2/15/28
2,860 St. Joseph County PHM Elementary/Middle School Building No Opt. Call A 2,948,288
Corporation, Indiana, First Mortgage Bonds, Series 1994,
6.300%, 1/15/09
------------------------------------------------------------------------------------------------------------------------------------
14,565 Total Indiana 11,964,249
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.5% (0.9% OF TOTAL INVESTMENTS)
4,000 Iowa Tobacco Settlement Authority, Asset Backed Settlement 6/15 at 100.00 BBB 4,216,480
Revenue Bonds, Series 2005C, 5.500%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.2% (0.1% OF TOTAL INVESTMENTS)
510 Louisville and Jefferson County Metropolitan Government, 10/16 at 100.00 N/R 526,447
Kentucky, Industrial Building Revenue Bonds, Sisters of
Mercy of the Americas, Series 2006, 5.000%, 10/01/35
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.8% (2.4% OF TOTAL INVESTMENTS)
1,310 Louisiana Housing Finance Agency, GNMA Collateralized 3/07 at 102.00 AAA 1,337,929
Mortgage Revenue Bonds, St. Dominic Assisted Care Facility,
Series 1995, 6.850%, 9/01/25
2,040 Louisiana State, Gas Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 2,024,088
4.500%, 5/01/41 (WI/DD, Settling 11/02/06) - FGIC Insured
2,280 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 Aaa 2,226,694
Residuals 660-1, 5.850%, 5/01/41 (WI/DD, Settling 11/02/06) -
FGIC Insured (IF)
275 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 Aaa 299,486
Residuals 661, 6.597%, 5/01/39 (WI/DD, Settling 11/02/06) -
FSA Insured (IF)
3,950 Morehouse Parish, Louisiana, Pollution Control Revenue Bonds, No Opt. Call BBB 4,300,721
International Paper Company, Series 2002A, 5.700%, 4/01/14
1,375 Tobacco Settlement Financing Corporation, Louisiana, Tobacco 5/11 at 101.00 BBB 1,464,499
Settlement Asset-Backed Bonds, Series 2001B, 5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
11,230 Total Louisiana 11,653,417
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 4.2% (2.7% OF TOTAL INVESTMENTS)
7,965 Maine Educational Loan Marketing Corporation, Student Loan No Opt. Call A2 7,965,000
Revenue Bonds, Subordinate Series 1994B-2,
6.250%, 11/01/06 (Alternative Minimum Tax)
4,905 Maine State Housing Authority, Single Family Mortgage 5/13 at 100.00 AA+ 5,019,630
Purchase Bonds, Series 2004A-2, 5.000%, 11/15/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,870 Total Maine 12,984,630
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,000 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ 2,135,440
Revenue Bonds, MedStar Health, Series 2004,
5.375%, 8/15/24
1,550 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 1,594,098
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 (WI/DD, Settling 11/16/06) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,550 Total Maryland 3,729,538
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.1% (1.4% OF TOTAL INVESTMENTS)
1,000 Massachusetts Development Finance Authority, Revenue Bonds, 10/14 at 100.00 BBB 1,076,600
Hampshire College, Series 2004, 5.625%, 10/01/24
1,900 Massachusetts, General Obligation Bonds, Series 2003D, 10/13 at 100.00 AA (4) 2,078,828
5.250%, 10/01/20 (Pre-refunded 10/01/13)
3,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 3,291,210
Bonds, Series 2004, 5.250%, 1/01/24 (Pre-refunded 1/01/14) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,900 Total Massachusetts 6,446,638
------------------------------------------------------------------------------------------------------------------------------------
55
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6% (2.4% OF TOTAL INVESTMENTS)
$ 2,925 Detroit, Michigan, General Obligation Bonds, Series 2003A, 4/13 at 100.00 AAA $ 3,154,057
5.250%, 4/01/17 - XLCA Insured
4,600 Detroit, Michigan, Sewer Disposal System Revenue Bonds, 7/16 at 100.00 AAA 4,639,008
Second Lien, Series 2006B, 4.625%, 7/01/34 - FGIC Insured
170 Monroe County Hospital Finance Authority, Michigan, Mercy 6/16 at 100.00 BBB- 180,268
Memorial Hospital Corporation Revenue Bonds, Series 2006,
5.500%, 6/01/35
3,025 Wayne County, Michigan, Airport Revenue Refunding Bonds, 12/12 at 100.00 AAA 3,278,949
Detroit Metropolitan Airport, Series 2002C, 5.375%, 12/01/19 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,720 Total Michigan 11,252,282
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 4.9% (3.2% OF TOTAL INVESTMENTS)
4,350 Cohasset, Minnesota, Pollution Control Revenue Bonds, 7/14 at 100.00 A 4,449,702
Allete Inc., Series 2004, 4.950%, 7/01/22
1,000 Duluth Economic Development Authority, Minnesota, Healthcare 2/14 at 100.00 A- 1,057,880
Facilities Revenue Bonds, Benedictine Health System -
St. Mary's Duluth Clinic, Series 2004, 5.250%, 2/15/21
2,290 Minneapolis-St. Paul Housing and Redevelopment Authority, 12/13 at 100.00 Baa1 2,523,259
Minnesota, Revenue Bonds, HealthPartners Inc., Series 2003,
6.000%, 12/01/20
Minnesota Higher Education Facilities Authority, Revenue Bonds,
University of St. Thomas, Series 2004-5Y:
530 5.250%, 10/01/19 10/14 at 100.00 A2 573,328
1,500 5.250%, 10/01/34 10/14 at 100.00 A2 1,602,795
665 Minnesota Higher Education Facilities Authority, Revenue 4/16 at 100.00 A2 708,937
Bonds, University of St. Thomas, Series 2006-6I,
5.000%, 4/01/23
1,000 Minnesota Municipal Power Agency, Electric Revenue Bonds, 10/14 at 100.00 A3 1,078,230
Series 2004A, 5.250%, 10/01/19
3,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 12/13 at 100.00 AA+ 3,280,500
Office Building at Cedar Street, Series 2003,
5.250%, 12/01/20
------------------------------------------------------------------------------------------------------------------------------------
14,335 Total Minnesota 15,274,631
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.0% (0.7% OF TOTAL INVESTMENTS)
1,525 Mississippi Hospital Equipment and Facilities Authority, 9/14 at 100.00 N/R 1,563,644
Revenue Bonds, Baptist Memorial Healthcare, Series 2004B-1,
5.000%, 9/01/24
1,500 Mississippi State University Educational Building Corporation, 8/15 at 100.00 AAA 1,586,460
Revenue Bonds, Residence Hall and Campus Improvement
Project, Series 2005, 5.000%, 8/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
3,025 Total Mississippi 3,150,104
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.7% OF TOTAL INVESTMENTS)
100 Hannibal Industrial Development Authority, Missouri, Health 3/16 at 100.00 BBB+ 104,390
Facilities Revenue Bonds, Hannibal Regional Hospital,
Series 2006, 5.000%, 3/01/22
2,880 Joplin Industrial Development Authority, Missouri, Health 2/15 at 102.00 BBB+ 3,118,608
Facilities Revenue Bonds, Freeman Health System,
Series 2004, 5.500%, 2/15/24
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Missouri 3,222,998
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.4% (1.5% OF TOTAL INVESTMENTS)
1,580 Douglas County Hospital Authority 2, Nebraska, Health No Opt. Call A1 1,690,395
Facilities Revenue Bonds, Nebraska Medical Center,
Series 2003, 5.000%, 11/15/16
2,055 Grand Island, Nebraska, Electric System Revenue Bonds, 3/07 at 100.00 A+ (4) 2,184,958
Series 1977, 6.100%, 9/01/12 (ETM)
2,350 NebHelp Inc., Nebraska, Senior Subordinate Bonds, Student No Opt. Call AAA 2,550,831
Loan Program, Series 1993A-5B, 6.250%, 6/01/18 -
MBIA Insured (Alternative Minimum Tax)
765 Omaha Public Power District, Nebraska, Electric System 2/17 at 100.00 AAA 890,858
Revenue Bonds, Nebraska City 2, Series 2006A,
Residuals 1508-2, 7.530%, 2/01/49 (WI/DD,
Settling 11/02/06) - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Nebraska 7,317,042
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Hampshire Housing Finance Authority, FHLMC 7/10 at 101.00 Aaa 5,249,000
Multifamily Housing Remarketed Revenue Bonds,
Countryside LP, Series 1994, 6.100%, 7/01/24 (Alternative
Minimum Tax)
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW HAMPSHIRE (continued)
$ 290 New Hampshire Municipal Bond Bank, Revenue Bonds, No Opt. Call N/R $ 299,895
Coe-Brown Northwood Academy, Series 1994, 7.250%, 5/01/09
------------------------------------------------------------------------------------------------------------------------------------
5,290 Total New Hampshire 5,548,895
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.5% (2.3% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, School Facilities 9/15 at 100.00 AA- 1,088,700
Construction Bonds, Series 2005P, 5.250%, 9/01/24
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,332,490
System Bonds, Series 2003C, 5.500%, 6/15/24
(Pre-refunded 6/15/13)
2,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,227,760
System Bonds, Series 2005C, 5.250%, 6/15/15 -
MBIA Insured (ETM)
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 1,604,595
5.000%, 1/01/19 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 2,659,150
5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total New Jersey 10,912,695
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 18.6% (12.1% OF TOTAL INVESTMENTS)
10,000 Dormitory Authority of the State of New York, Revenue Bonds, 5/10 at 101.00 AAA 10,755,498
State University Educational Facilities Revenue Bonds,
1999 Resolution, Series 2000B, 5.500%, 5/15/30 (Pre-refunded
5/15/10) - FSA Insured
1,500 Dormitory Authority of the State of New York, State and 7/14 at 100.00 AA- 1,627,815
Local Appropriation Lease Bonds, Upstate Community
Colleges, Series 2004B, 5.250%, 7/01/19
2,500 Long Island Power Authority, New York, Electric System 6/16 at 100.00 AAA 3,033,325
Revenue Bonds, Residual Series 2006-1428, 7.367%, 12/01/25 -
FGIC Insured (IF)
3,200 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 A 3,382,208
Revenue Bonds, Series 2005F, 5.000%, 11/15/30
5,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 5,392,200
Revenue Refunding Bonds, Series 2002A, 5.125%, 11/15/21 -
FGIC Insured
4,000 New York City Municipal Water Finance Authority, New York, 12/14 at 100.00 AAA 4,270,600
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005B, 5.000%, 6/15/23 - AMBAC Insured
1,250 New York City Municipal Water Finance Authority, New York, 6/16 at 100.00 AA+ 1,330,975
Water and Sewerage System Revenue Bonds, Fiscal
Series 2006D, 5.000%, 6/15/29
4,265 New York City, New York, General Obligation Bonds, 10/13 at 100.00 AA- 4,587,178
Fiscal Series 2003D, 5.250%, 10/15/22
1,200 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 1,311,744
Fiscal Series 2004B, 5.250%, 8/01/15
4,000 New York City, New York, General Obligation Bonds, 8/14 at 100.00 AA- 4,330,160
Fiscal Series 2004C, 5.250%, 8/15/20
New York Dorm Authority, State Personal Income Tax Revenue
Bonds, Education, Series 2006C:
1,770 5.000%, 12/15/31 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 1,900,060
3,540 5.000%, 12/15/35 (WI/DD, Settling 11/16/06) 12/16 at 100.00 AAA 3,787,977
680 New York State Medical Care Facilities Finance Agency, 2/07 at 100.00 AAA 685,100
FHA-Insured Mortgage Revenue Bonds, Hospital and
Nursing Home Projects, Series 1992B, 6.200%, 8/15/22
3,250 New York State Municipal Bond Bank Agency, Special School 6/13 at 100.00 A+ 3,496,610
Purpose Revenue Bonds, Series 2003C, 5.250%, 6/01/22
3,014 New York State Thruway Authority, General Revenue Bonds, No Opt. Call AAA 3,614,603
Residual Series 2006-1427, 7.468%, 1/01/26 - FSA Insured (IF)
1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,974,339
Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/24 -
FSA Insured
1,000 New York State Urban Development Corporation, Subordinate 7/14 at 100.00 A 1,067,130
Lien Corporate Purpose Bonds, Series 2004A, 5.125%, 1/01/22
1,000 Rensselaer County Industrial Development Agency, New York, 3/16 at 100.00 A 1,061,590
Civic Facility Revenue Bonds, Rensselaer Polytechnic Institute,
Series 2006, 5.000%, 3/01/26
------------------------------------------------------------------------------------------------------------------------------------
53,019 Total New York 57,609,112
------------------------------------------------------------------------------------------------------------------------------------
57
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.0% (2.6% OF TOTAL INVESTMENTS)
$ 10,300 North Carolina Eastern Municipal Power Agency, Power System No Opt. Call AAA $ 12,512,953
Revenue Refunding Bonds, Series 1993B, 6.000%, 1/01/22 -
CAPMAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.0% (1.3% OF TOTAL INVESTMENTS)
2,000 Granville Exempt Village School District, Ohio, General 12/11 at 100.00 Aa2 2,105,200
Obligation Bonds, Series 2001, 5.000%, 12/01/24
4,000 Ohio, Solid Waste Revenue Bonds, Republic Services Inc., No Opt. Call BBB+ 3,922,560
Series 2004, 4.250%, 4/01/33 (Mandatory put 4/01/14)
(Alternative Minimum Tax)
250 Port of Greater Cincinnati Development Authority, Ohio, 10/16 at 100.00 N/R 262,452
Economic Development Revenue Bonds, Sisters of Mercy of
the Americas, Series 2006, 5.000%, 10/01/25
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total Ohio 6,290,212
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
Norman Regional Hospital Authority, Oklahoma, Hospital
Revenue Bonds, Series 2005:
500 5.375%, 9/01/29 9/16 at 100.00 BBB- 530,340
450 5.375%, 9/01/36 9/16 at 100.00 BBB- 474,575
------------------------------------------------------------------------------------------------------------------------------------
950 Total Oklahoma 1,004,915
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.3% (0.8% OF TOTAL INVESTMENTS)
Oregon, General Obligation Bonds, State Board of Higher
Education, Series 2004A:
1,795 5.000%, 8/01/21 8/14 at 100.00 AA- 1,920,291
1,990 5.000%, 8/01/23 8/14 at 100.00 AA- 2,117,957
------------------------------------------------------------------------------------------------------------------------------------
3,785 Total Oregon 4,038,248
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,211,170
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
1,525 Falls Township Hospital Authority, Pennsylvania, FHA-Insured 2/07 at 100.00 AAA 1,535,416
Revenue Refunding Bonds, Delaware Valley Medical Center,
Series 1992, 7.000%, 8/01/22
------------------------------------------------------------------------------------------------------------------------------------
4,525 Total Pennsylvania 4,746,586
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.6% (1.7% OF TOTAL INVESTMENTS)
7,655 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 8,190,697
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.000%, 6/01/23
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.8% (5.0% OF TOTAL INVESTMENTS)
2,500 Berkeley County School District, South Carolina, Installment 12/13 at 100.00 A- 2,628,800
Purchase Revenue Bonds, Securing Assets for Education,
Series 2003, 5.250%, 12/01/24
4,405 Dorchester County School District 2, South Carolina, Installment 12/14 at 100.00 A 4,680,313
Purchase Revenue Bonds, GROWTH, Series 2004,
5.250%, 12/01/23
3,340 Greenville County School District, South Carolina, Installment 12/13 at 100.00 AA- 3,596,479
Purchase Revenue Bonds, Series 2003, 5.250%, 12/01/19
3,620 Greenville, South Carolina, Hospital Facilities Revenue 5/13 at 100.00 AAA 3,877,816
Refunding Bonds, Series 2003A, 5.250%, 5/01/21 -
AMBAC Insured
1,500 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 1,605,930
Economic Development Revenue Bonds, Bon Secours
Health System Inc., Series 2002A, 5.625%, 11/15/30
605 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ 683,680
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
4,895 South Carolina JOBS Economic Development Authority, 8/13 at 100.00 BBB+ (4) 5,674,284
Hospital Refunding and Improvement Revenue Bonds,
Palmetto Health Alliance, Series 2003C, 6.375%, 8/01/34
(Pre-refunded 8/01/13)
1,145 Tobacco Settlement Revenue Management Authority, 5/11 at 101.00 BBB 1,223,593
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.000%, 5/15/22
------------------------------------------------------------------------------------------------------------------------------------
22,010 Total South Carolina 23,970,895
------------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH DAKOTA - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 1,750 South Dakota Health and Educational Facilities Authority, 11/14 at 100.00 A+ $ 1,891,505
Revenue Bonds, Sioux Valley Hospitals, Series 2004A,
5.500%, 11/01/31
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,060 Johnson City Health and Educational Facilities Board, 7/23 at 100.00 AAA 2,136,447
Tennessee, Hospital Revenue Refunding and Improvement
Bonds, Johnson City Medical Center, Series 1998C,
5.125%, 7/01/25 (Pre-refunded 7/01/23) - MBIA Insured
1,600 Johnson City Health and Educational Facilities Board, 7/16 at 100.00 BBB+ 1,717,712
Tennessee, Revenue Bonds, Mountain States Health
Alliance, Series 2006A, 5.500%, 7/01/36
------------------------------------------------------------------------------------------------------------------------------------
3,660 Total Tennessee 3,854,159
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 5.6% (3.6% OF TOTAL INVESTMENTS)
1,075 Brazos River Authority, Texas, Pollution Control Revenue 10/13 at 101.00 Baa2 1,211,934
Bonds, TXU Energy Company LLC Project, Series 2003C,
6.750%, 10/01/38 (Alternative Minimum Tax)
3,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 3,260,250
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
Kerrville Health Facilities Development Corporation, Texas,
Revenue Bonds, Sid Peterson Memorial Hospital Project, Series
2005:
400 5.250%, 8/15/21 No Opt. Call BBB- 421,456
500 5.125%, 8/15/26 No Opt. Call BBB- 517,370
2,265 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 2,439,949
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.250%, 5/15/25 - AMBAC Insured
2,000 Mansfield Independent School District, Tarrant County, Texas, 2/11 at 100.00 AAA 2,137,340
General Obligation Bonds, Series 2001, 5.375%, 2/15/26
1,000 Sabine River Authority, Texas, Pollution Control Revenue Bonds, 11/15 at 100.00 Baa2 1,037,470
TXU Electric Company, Series 2001C, 5.200%, 5/01/28
Texas Tech University, Financing System Revenue Bonds,
9th Series 2003:
3,525 5.250%, 2/15/18 - AMBAC Insured 8/13 at 100.00 AAA 3,824,837
2,250 5.250%, 2/15/19 - AMBAC Insured 8/13 at 100.00 AAA 2,441,385
50 Victoria Housing Finance Corporation, Texas, FNMA Single No Opt. Call Aaa 51,917
Family Mortgage Revenue Refunding Bonds, Series 1995,
8.125%, 1/01/11
------------------------------------------------------------------------------------------------------------------------------------
16,065 Total Texas 17,343,908
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
570 Utah Housing Corporation, Single Family Mortgage Bonds, 7/11 at 100.00 Aa2 586,342
Series 2001D, 5.500%, 1/01/21 (Alternative Minimum Tax)
30 Utah Housing Finance Agency, Single Family Mortgage Bonds, 1/07 at 102.00 AA 30,678
Series 1996C, 6.450%, 7/01/14 (Alternative Minimum Tax)
235 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/07 at 101.50 AA 240,135
Series 1997F, 5.750%, 7/01/15 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
835 Total Utah 857,155
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.2% (5.9% OF TOTAL INVESTMENTS)
2,500 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 2,761,700
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002C, 5.750%, 7/01/17 - MBIA Insured
7,000 Energy Northwest, Washington, Electric Revenue Refunding 7/13 at 100.00 Aaa 7,683,830
Bonds, Nuclear Project 1, Series 2003A, 5.500%, 7/01/16
59
Nuveen Premier Municipal Income Fund, Inc. (NPF) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,160 King County Public Hospital District 2, Washington, Limited 6/11 at 101.00 AAA $ 6,513,461
Tax General Obligation Bonds, Evergreen Hospital Medical
Center, Series 2001A, 5.250%, 12/01/24 - AMBAC Insured
1,000 Skagit County Public Hospital District 1, Washington, Revenue No Opt. Call Baa2 1,091,660
Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/23
9,750 Washington, General Obligation Refunding Bonds, No Opt. Call Aa1 10,315,988
Series 1992A and 1992AT-6, 6.250%, 2/01/11
------------------------------------------------------------------------------------------------------------------------------------
26,410 Total Washington 28,366,639
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,000 West Virginia Water Development Authority, Infrastructure 10/13 at 101.00 AAA 2,243,140
Revenue Bonds, Series 2003A, 5.500%, 10/01/23
(Pre-refunded 10/01/13) - AMBAC Insured
3,150 West Virginia Water Development Authority, Loan Program II 11/13 at 101.00 AAA 3,432,366
Revenue Bonds, Series 2003B, 5.250%, 11/01/23 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,150 Total West Virginia 5,675,506
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.9% (3.8% OF TOTAL INVESTMENTS)
5,670 Wisconsin Health and Educational Facilities Authority, 7/11 at 100.00 A- 6,037,473
Revenue Bonds, Agnesian Healthcare Inc., Series 2001,
6.000%, 7/01/30
160 Wisconsin Health and Educational Facilities Authority, 5/16 at 100.00 BBB 163,214
Revenue Bonds, Divine Savior Healthcare, Series 2006,
5.000%, 5/01/32
1,000 Wisconsin Health and Educational Facilities Authority, Revenue 5/14 at 100.00 BBB+ 1,071,410
Bonds, Fort Healthcare Inc., Series 2004, 5.375%, 5/01/18
205 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 AA- 220,127
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30
2,145 Wisconsin Health and Educational Facilities Authority, Revenue 10/11 at 101.00 N/R (4) 2,327,540
Bonds, Froedtert and Community Health Obligated Group,
Series 2001, 5.375%, 10/01/30 (Pre-refunded 10/01/11)
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/10 at 101.00 AA 5,397,450
Bonds, Marshfield Clinic, Series 1999, 6.250%, 2/15/18 -
RAAI Insured
365 Wisconsin Housing and Economic Development Authority, 1/07 at 100.00 AA 365,613
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12
2,500 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 2,605,800
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,045 Total Wisconsin 18,188,627
------------------------------------------------------------------------------------------------------------------------------------
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,350 Sweetwater County, Wyoming, Solid Waste Disposal Revenue 12/15 at 100.00 BBB- $ 1,435,846
Bonds, FMC Corporation, Series 2005, 5.600%, 12/01/35
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
$ 473,717 Total Investments (cost $446,434,862) - 154.5% 477,525,229
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (1.1)% (3,385,043)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.4)% (165,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 309,140,186
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2006:
FUND FIXED RATE UNREALIZED
NOTIONAL FLOATING RATE PAY/RECEIVE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT INDEX FLOATING RATE (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
------------------------------------------------------------------------------------------------------------------------------------
Morgan Stanley $19,500,000 3-month Receive 5.470% Semi-Annually 8/22/07 8/22/24 $(507,183)
USD-LIBOR
====================================================================================================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
(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) Effective date represents the date on which both the
Fund and counterparty commence interest payment
accruals on each forward swap contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
61
Nuveen Municipal High Income Opportunity Fund (NMZ)
Portfolio of
INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NATIONAL - 2.1% (1.5% OF TOTAL INVESTMENTS)
Charter Mac Equity Issuer Trust, Preferred Shares, Series 2004A-4:
$ 5,000 6.000%, 12/31/45 (Mandatory put 4/30/19) (Alternative Minimum Tax) 4/19 at 100.00 A3 $ 5,554,050
1,000 5.750%, 12/31/45 (Mandatory put 4/30/15) (Alternative Minimum Tax) 4/15 at 100.00 A3 1,078,110
1,000 GMAC Municipal Mortgage Trust, Series B-1, 5.600%, 10/31/39 No Opt. Call Baa1 1,075,520
(Mandatory put 10/31/19) (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,000 Total National 7,707,680
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.7% (1.2% OF TOTAL INVESTMENTS)
6,200 Baldwin County Eastern Shore Healthcare Authority, Alabama, 4/08 at 102.00 N/R (4) 6,475,094
Hospital Revenue Bonds, Thomas Hospital, Series 1998,
5.750%, 4/01/27 (Pre-refunded 4/01/08)
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.8% (3.5% OF TOTAL INVESTMENTS)
546 Estrella Mountain Ranch Community Facilities District, Goodyear, 7/10 at 102.00 N/R 605,885
Arizona, Special Assessment Lien Bonds, Series 2001A,
7.875%, 7/01/25
6,720 Maricopa County Industrial Development Authority, Arizona, 1/11 at 103.00 BB 6,970,118
Senior Living Facility Revenue Bonds, Christian Care Mesa II
Inc., Series 2004A, 6.625%, 1/01/34 (Alternative Minimum Tax)
Phoenix Industrial Development Authority, Arizona, Educational
Revenue Bonds, Keystone Montessori School, Series 2004A:
315 6.375%, 11/01/13 11/11 at 103.00 N/R 324,844
790 7.250%, 11/01/23 11/11 at 103.00 N/R 831,641
1,715 7.500%, 11/01/33 11/11 at 103.00 N/R 1,805,363
1,000 Pima County Industrial Development Authority, Arizona, Charter 7/16 at 100.00 N/R 1,011,360
School Revenue Bonds, Franklin Phonetic Charter School,
Series 2006, 5.750%, 7/01/36
1,645 Pima County Industrial Development Authority, Arizona, 7/14 at 100.00 N/R 1,748,487
Charter School Revenue Bonds, Heritage Elementary School,
Series 2004, 7.500%, 7/01/34
550 Pima County Industrial Development Authority, Arizona, Charter 12/14 at 100.00 BBB- 580,520
School Revenue Bonds, Noah Webster Basic Schools Inc.,
Series 2004, 6.125%, 12/15/34
500 Pima County Industrial Development Authority, Arizona, Charter No Opt. Call AAA 586,040
School Revenue Bonds, Pointe Educational Services Charter
School, Series 2004, 6.250%, 7/01/14 (ETM)
1,000 Pima County Industrial Development Authority, Arizona, Charter 7/14 at 100.00 N/R (4) 1,198,300
School Revenue Bonds, Pointe Educational Services Charter
School, Series 2004, 7.125%, 7/01/24 (Pre-refunded 7/01/14)
1,150 Pinal County Industrial Development Authority, Arizona, 10/12 at 100.00 A 1,198,875
Correctional Facilities Contract Revenue Bonds, Florence
West Prison LLC, Series 2002A, 5.250%, 10/01/22 -
ACA Insured
1,000 Tucson Industrial Development Authority, Arizona, Charter 9/14 at 100.00 BBB- 1,043,790
School Revenue Bonds, Arizona Agribusiness and Equine
Center Charter School, Series 2004A, 5.850%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
16,931 Total Arizona 17,905,223
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 16.7% (12.0% OF TOTAL INVESTMENTS)
8,000 Alameda Public Finance Authority, California, Revenue Bond No Opt. Call N/R 7,980,160
Anticipation Notes, Alameda Power and Telecom,
Series 2004, 7.000%, 6/01/09
940 California Health Facilities Financing Authority, Hospital 11/06 at 100.00 BB 940,254
Revenue Bonds, Downey Community Hospital, Series 1993,
5.750%, 5/15/15
California State Public Works Board, Lease Revenue Bonds,
Department of General Services, Series 2003D:
1,090 5.000%, 6/01/21 12/13 at 100.00 A 1,154,212
1,170 5.100%, 6/01/23 12/13 at 100.00 A 1,241,183
3,000 California State Public Works Board, Lease Revenue Bonds, 6/14 at 100.00 A 3,159,360
Department of Mental Health, Coalinga State Hospital,
Series 2004A, 5.000%, 6/01/25
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,925 California Statewide Community Development Authority, 3/14 at 102.00 N/R $ 3,090,497
Revenue Bonds, Epidaurus Project, Series 2004A,
7.750%, 3/01/34
1,010 California Statewide Community Development Authority, 1/14 at 100.00 N/R 1,089,255
Subordinate Lien Multifamily Housing Revenue Bonds,
Corona Park Apartments, Series 2004I-S, 7.750%, 1/01/34
(Alternative Minimum Tax)
3,360 California, General Obligation Bonds, Series 2003, 11/13 at 100.00 A+ 3,572,890
5.000%, 11/01/21
4,975 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 AAA 5,569,313
Enhanced Tobacco Settlement Asset-Backed Bonds,
Series 2003B, 5.625%, 6/01/33 (Pre-refunded 6/01/13)
5,500 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 6,277,095
Tobacco Settlement Asset-Backed Bonds, Series 2003A-1,
6.750%, 6/01/39
1,000 Golden State Tobacco Securitization Corporation, California, 6/13 at 100.00 BBB 1,231,210
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2003A-2, 7.900%, 6/01/42
Huntington Beach, California, Special Tax Bonds, Community
Facilities District 2003-1, Huntington Center, Series 2004:
500 5.800%, 9/01/23 9/14 at 100.00 N/R 516,355
1,000 5.850%, 9/01/33 9/14 at 100.00 N/R 1,032,460
2,500 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 2,784,200
Revenue Bonds, El Granada Mobile Home Park,
Series 2004A, 6.450%, 5/15/44
1,015 Independent Cities Lease Finance Authority, California, 5/14 at 100.00 N/R 1,084,335
Subordinate Lien Revenue Bonds, El Granada Mobile
Home Park, Series 2004B, 6.500%, 5/15/44
1,200 Lake Elsinore, California, Special Tax Bonds, Community 9/13 at 102.00 N/R 1,283,604
Facilities District 2003-2 Improvement Area A, Canyon Hills,
Series 2004A, 5.950%, 9/01/34
3,400 Lee Lake Water District, Riverside County, California, Special 9/13 at 102.00 N/R 3,636,878
Tax Bonds, Community Facilities District 3, Series 2004,
5.950%, 9/01/34
300 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B 337,449
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002B,
7.500%, 12/01/24 (Alternative Minimum Tax)
2,950 Los Angeles Regional Airports Improvement Corporation, 12/12 at 102.00 B 3,318,249
California, Sublease Revenue Bonds, Los Angeles International
Airport, American Airlines Inc. Terminal 4 Project, Series 2002C,
7.500%, 12/01/24 (Alternative Minimum Tax)
Moreno Valley Unified School District, Riverside County,
California, Special Tax Bonds, Community Facilities District,
Series 2004:
800 5.550%, 9/01/29 9/14 at 100.00 N/R 817,624
1,250 5.650%, 9/01/34 9/14 at 100.00 N/R 1,281,800
995 Oceanside, California, Special Tax Revenue Bonds, Community 3/14 at 100.00 N/R 1,046,193
Facilities District - Morro Hills, Series 2004, 5.750%, 9/01/28
Orange County, California, Special Tax Bonds, Community
Facilities District 03-1 of Ladera Ranch, Series 2004A:
500 5.500%, 8/15/23 8/12 at 101.00 N/R 527,290
1,625 5.600%, 8/15/28 8/12 at 101.00 N/R 1,717,056
1,000 5.625%, 8/15/34 8/12 at 101.00 N/R 1,045,770
2,250 San Diego County, California, Certificates of Participation, 9/12 at 100.00 BBB- 2,350,665
San Diego-Imperial Counties Developmental Services
Foundation Project, Series 2002, 5.500%, 9/01/27
3,895 West Patterson Financing Authority, California, Special Tax 9/13 at 103.00 N/R 4,236,202
Bonds, Community Facilities District 2001-1, Series 2004A,
6.125%, 9/01/39
------------------------------------------------------------------------------------------------------------------------------------
58,150 Total California 62,321,559
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 8.6% (6.2% OF TOTAL INVESTMENTS)
925 Bradburn Metropolitan District 3, Colorado, General 12/13 at 101.00 N/R 1,031,366
Obligation Bonds, Series 2003, 7.500%, 12/01/33
5,594 Buffalo Ridge Metropolitan District, Colorado, Limited Obligation 12/13 at 101.00 N/R 6,237,254
Assessment Bonds, Series 2003, 7.500%, 12/01/33
63
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 400 Colorado Educational and Cultural Facilities Authority, Charter 12/10 at 101.00 BBB (4) $ 451,888
School Revenue Bonds, Academy Charter School - Douglas
County School District Re. 1, Series 2000, 6.875%, 12/15/20
(Pre-refunded 12/15/10)
650 Colorado Educational and Cultural Facilities Authority, Charter 9/11 at 100.00 Ba1 (4) 743,717
School Revenue Bonds, Bromley East Charter School,
Series 2000A, 7.250%, 9/15/30 (Pre-refunded 9/15/11)
905 Colorado Educational and Cultural Facilities Authority, Charter 7/08 at 100.00 N/R (4) 947,698
School Revenue Bonds, Compass Montessori Elementary
Charter School, Series 2000, 7.750%, 7/15/31
(Pre-refunded 7/15/08)
3,500 Colorado Educational and Cultural Facilities Authority, Charter 5/14 at 101.00 N/R 3,748,850
School Revenue Bonds, Denver Arts and Technology Academy,
Series 2003, 8.000%, 5/01/34
Colorado Educational and Cultural Facilities Authority, Charter
School Revenue Bonds, Excel Academy Charter School,
Series 2003:
500 7.300%, 12/01/23 (Pre-refunded 12/01/11) 12/11 at 100.00 AAA 585,345
875 7.500%, 12/01/33 (Pre-refunded 12/01/11) 12/11 at 100.00 AAA 1,032,421
1,797 Colorado Educational and Cultural Facilities Authority, Charter 2/12 at 100.00 N/R 1,894,829
School Revenue Bonds, Jefferson County School District R-1 -
Compass Montessori Secondary School, Series 2002,
8.000%, 2/15/32
1,450 Colorado Educational and Cultural Facilities Authority, Charter 6/11 at 100.00 Ba1 (4) 1,629,945
School Revenue Bonds, Weld County School District 6 -
Frontier Academy, Series 2001, 7.250%, 6/01/20
(Pre-refunded 6/01/11)
1,500 Colorado Educational and Cultural Facilities Authority, 6/14 at 100.00 N/R 1,641,570
Independent School Improvement Revenue Bonds, Heritage
Christian School of Northern Colorado, Series 2004A,
7.500%, 6/01/34
900 Colorado Housing and Finance Authority, Multifamily Project 10/12 at 100.00 AA 929,070
Bonds, Class II Series 2002C-6, 5.300%, 10/01/42
4,300 Denver Health and Hospitals Authority, Colorado, Revenue 12/14 at 100.00 BBB 4,834,447
Bonds, Series 2004A, 6.250%, 12/01/33
1,000 Denver, Colorado, FHA-Insured Multifamily Housing Mortgage 7/08 at 102.00 AAA 1,026,270
Loan Revenue Bonds, Garden Court Community Project,
Series 1998, 5.400%, 7/01/39
1,250 Mesa County, Colorado, Residential Care Facilities Mortgage 12/11 at 101.00 AA 1,322,238
Revenue Bonds, Hilltop Community Resources Inc. Obligated
Group, Series 2001A, 5.250%, 12/01/21 - RAAI Insured
2,000 Park Creek Metropolitan District, Colorado, Limited Tax 12/13 at 100.00 N/R 2,258,300
Obligation Revenue Bonds, Series 2003CR-2,
7.875%, 12/01/32 (Mandatory put 12/01/13)
Tallyn's Reach Metropolitan District 2, Aurora, Colorado,
Limited Tax General Obligation Bonds, Series 2004:
250 6.000%, 12/01/18 12/13 at 100.00 N/R 259,688
315 6.375%, 12/01/23 12/13 at 100.00 N/R 330,876
Tallyn's Reach Metropolitan District 3, Aurora, Colorado,
Limited Tax General Obligation Bonds, Series 2004:
500 6.625%, 12/01/23 12/13 at 100.00 N/R 532,450
500 6.750%, 12/01/33 12/13 at 100.00 N/R 532,460
------------------------------------------------------------------------------------------------------------------------------------
29,111 Total Colorado 31,970,682
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,025 Eastern Connecticut Resource Recovery Authority, 1/07 at 100.00 BBB 1,025,646
Solid Waste Revenue Bonds, Wheelabrator Lisbon Project,
Series 1993A, 5.500%, 1/01/20 (Alternative Minimum Tax)
1,000 Mashantucket Western Pequot Tribe, Connecticut, Subordinate 9/16 at 100.00 Baa3 1,044,720
Special Revenue Bonds, Series 2006A, 5.500%, 9/01/36
------------------------------------------------------------------------------------------------------------------------------------
2,025 Total Connecticut 2,070,366
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 9.1% (6.5% OF TOTAL INVESTMENTS)
4,390 Bartram Springs Community Development District, 5/13 at 102.00 N/R 4,837,297
Duval County, Florida, Special Assessment Bonds,
Series 2003A, 6.650%, 5/01/34
700 Broward County, Florida, Airport Facility Revenue Bonds, 11/14 at 101.00 BBB- 823,200
Learjet Inc., Series 2000, 7.500%, 11/01/20 (Alternative
Minimum Tax)
1,175 Century Gardens Community Development District, 5/14 at 101.00 N/R 1,238,767
Miami-Dade County, Florida, Special Assessment Revenue
Bonds, Series 2004, 5.900%, 5/01/34
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
Islands at Doral Northeast Community Development District,
Miami-Dade County, Florida, Special Assessment Bonds, Series
2004:
$ 470 6.125%, 5/01/24 5/14 at 101.00 N/R $ 510,740
450 6.250%, 5/01/34 5/14 at 101.00 N/R 483,984
6,880 Lee County Industrial Development Authority, Florida, No Opt. Call Caa3 6,886,742
Multifamily Housing Revenue Bonds, Legacy at Lehigh
Project, Senior Series 2003A, 6.000%, 12/01/43 (5)
630 Lexington Community Development District, Florida, Special 5/14 at 101.00 N/R 667,189
Assessment Revenue Bonds, Series 2004, 6.125%, 5/01/34
3,330 Meadowwoods Community Development District, Pasco County, 5/14 at 101.00 N/R 3,479,450
Florida, Special Assessment Revenue Bonds, Series 2004A,
6.050%, 5/01/35
3,887 MMA Financial CDD Junior Securitization Trust, Florida, 11/07 at 100.00 N/R 3,924,400
Pass-Through Certificates, Class A, Series 2003I,
8.000%, 11/01/13
3,900 Palm Beach County Housing Finance Authority, Florida, 7/09 at 103.00 N/R 4,056,039
Multifamily Housing Revenue Bonds, Lake Delray Apartments,
Series 1999A, 6.400%, 1/01/31 (Alternative Minimum Tax)
1,700 South-Dade Venture Community Development District, Florida, 5/14 at 101.00 N/R 1,821,873
Special Assessment Revenue Bonds, Series 2004,
6.125%, 5/01/34
Stonegate Community Development District, Florida, Special
Assessment Revenue Bonds, Series 2004:
470 6.000%, 5/01/24 5/14 at 101.00 N/R 506,467
500 6.125%, 5/01/34 5/14 at 101.00 N/R 533,040
Westchester Community Development District 1, Florida, Special
Assessment Bonds, Series 2003:
145 6.000%, 5/01/23 5/13 at 101.00 N/R 154,554
3,750 6.125%, 5/01/35 5/13 at 101.00 N/R 3,982,537
------------------------------------------------------------------------------------------------------------------------------------
32,377 Total Florida 33,906,279
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0% (0.7% OF TOTAL INVESTMENTS)
500 Effingham County Development Authority, Georgia, Solid 7/08 at 102.00 B1 509,775
Waste Disposal Revenue Bonds, Ft. James Project,
Series 1998, 5.625%, 7/01/18 (Alternative Minimum Tax) (6)
900 Fulton County Residential Care Facilities Authority, Georgia, 2/09 at 100.00 N/R 935,694
Revenue Bonds, Canterbury Court, Series 2004A,
6.125%, 2/15/34
1,955 Fulton County Residential Care Facilities Authority, Georgia, 12/13 at 102.00 N/R 2,203,187
Revenue Bonds, St. Anne's Terrace, Series 2003,
7.625%, 12/01/33
------------------------------------------------------------------------------------------------------------------------------------
3,355 Total Georgia 3,648,656
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 12.3% (8.8% OF TOTAL INVESTMENTS)
2,000 Chicago, Illinois, Certificates of Participation Tax Increment 12/08 at 100.00 N/R 2,080,160
Revenue Notes, Chicago/Kingsbury Redevelopment Project,
Series 2004A, 6.570%, 2/15/13
1,000 Chicago, Illinois, Certificates of Participation, Tax Increment 7/11 at 100.00 N/R 1,072,740
Allocation Revenue Bonds, Diversey-Narragansett Project,
Series 2006, 7.460%, 2/15/26
2,000 Illinois Finance Authority, Revenue Bonds, Midwest Regional 10/16 at 100.00 N/R 1,999,840
Medical Center Galena-Stauss Hospital, Series 2006,
6.750%, 10/01/46 (WI/DD, Settling 11/02/06)
Illinois Health Facilities Authority, FHA-Insured Mortgage
Revenue Refunding Bonds, Sinai Health System, Series 2003:
5,000 5.000%, 8/15/24 8/13 at 100.00 AAA 5,199,400
10,000 5.100%, 8/15/33 8/13 at 100.00 AAA 10,403,300
5,000 5.150%, 2/15/37 8/13 at 100.00 AAA 5,223,650
1,000 Illinois Health Facilities Authority, Revenue Bonds, Condell 5/12 at 100.00 Baa2 1,044,290
Medical Center, Series 2002, 5.500%, 5/15/32
8,800 Illinois Health Facilities Authority, Revenue Bonds, Lake Forest 7/12 at 100.00 A- 9,474,080
Hospital, Series 2002A, 5.750%, 7/01/29
1,400 Illinois Health Facilities Authority, Revenue Bonds, Midwest 11/08 at 102.00 N/R 1,413,776
Physicians Group Ltd., Series 1998, 5.500%, 11/15/19
795 Illinois Health Facilities Authority, Revenue Bonds, Victory 8/07 at 101.00 Ba2 (4) 815,416
Health Services, Series 1997A, 5.750%, 8/15/27
(Pre-refunded 8/15/07)
65
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 1,650 Lombard Public Facilities Corporation, Illinois, First Tier 1/16 at 100.00 N/R $ 1,774,790
Conference Center and Hotel Revenue Bonds, Series 2005A-1,
7.125%, 1/01/36
1,062 Lombard Public Facilities Corporation, Illinois, Third Tier 1/07 at 100.00 N/R 1,063,157
Conference Center and Hotel Revenue Bonds, Series 2005C-3,
4.000%, 1/01/36
2,065 Plano Special Service Area 1, Illinois, Special Tax Bonds, 3/14 at 102.00 N/R 2,156,211
Lakewood Springs Project, Series 2004A, 6.200%, 3/01/34
1,000 Volo Village, Illinois, Special Service Area 3 Special Tax Bonds, 3/16 at 102.00 N/R 1,018,430
Symphony Meadows Project 1, Series 2006, 6.000%, 3/01/36
(Mandatory put 2/29/16)
1,000 Yorkville, Illinois, Special Service Area 2005-108 Assessment 3/16 at 102.00 N/R 1,018,430
Bonds, Autumn Creek Project, Series 2006, 6.000%, 3/01/36
------------------------------------------------------------------------------------------------------------------------------------
43,772 Total Illinois 45,757,670
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.5% OF TOTAL INVESTMENTS)
6,360 Carmel Redevelopment District, Indiana, Tax Increment Revenue 7/12 at 103.00 N/R 6,848,830
Bonds, Series 2004A, 6.650%, 1/15/24
Indiana Health Facility Financing Authority, Hospital Revenue
Bonds, Community Foundation of Northwest Indiana, Series 2004A:
500 6.250%, 3/01/25 3/14 at 101.00 BBB- 547,700
2,500 6.000%, 3/01/34 3/14 at 101.00 BBB- 2,699,950
1,000 St. Joseph County, Indiana, Economic Development Revenue 7/15 at 103.00 N/R 1,076,100
Bonds, Chicago Trail Village Apartments, Series 2005A,
7.500%, 7/01/35
1,795 Whitley County, Indiana, Solid Waste and Sewerage Disposal 11/10 at 102.00 N/R 1,944,147
Revenue Bonds, Steel Dynamics Inc., Series 1998,
7.250%, 11/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,155 Total Indiana 13,116,727
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 6.9% (4.9% OF TOTAL INVESTMENTS)
2,280 Carter Plantation Community Development District, Livingston 11/06 at 100.00 N/R 2,290,739
Parish, Louisiana, Special Assessment Bonds, Series 2004,
5.500%, 5/01/16
8,500 Hodge, Louisiana, Combined Utility System Revenue Bonds, No Opt. Call CCC+ 10,619,220
Smurfit-Stone Container Corporation, Series 2003,
7.450%, 3/01/24 (Alternative Minimum Tax)
2,600 Lafourche Parish Housing Authority, Louisiana, GNMA 1/11 at 105.00 AAA 2,727,140
Collateralized Mortgage Loan Multifamily Mortgage
Revenue Bonds, City Place II Apartments, Series 2001,
6.700%, 1/20/40
1,000 Louisiana Local Government Environmental Facilities and 9/16 at 100.00 N/R 1,009,510
Community Development Authority, Carter Plantation
Hotel Project Revenue Bonds, Series 2006A,
6.000%, 9/01/36
1,000 Louisiana Local Government Environmental Facilities and 6/16 at 101.00 N/R 1,016,270
Community Development Authority, Revenue Bonds,
CDF Healthcare of Louisiana LLC, Series 2006A,
7.000%, 6/01/36
Ouachita Parish Industrial Development Authority, Louisiana,
Solid Waste Disposal Revenue Bonds, White Oaks Project, Series
2004A:
865 8.250%, 3/01/19 (Alternative Minimum Tax) 3/10 at 102.00 N/R 901,235
805 8.500%, 3/01/24 (Alternative Minimum Tax) 3/10 at 102.00 N/R 837,313
5,125 St. James Parish, Louisiana, Solid Waste Disposal Revenue 4/07 at 100.00 N/R 5,134,328
Bonds, Freeport McMoran Project, Series 1992,
7.700%, 10/01/22 (Alternative Minimum Tax)
1,000 Tobacco Settlement Financing Corporation, Louisiana, 5/11 at 101.00 BBB 1,065,090
Tobacco Settlement Asset-Backed Bonds, Series 2001B,
5.875%, 5/15/39
------------------------------------------------------------------------------------------------------------------------------------
23,175 Total Louisiana 25,600,845
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.9% (0.6% OF TOTAL INVESTMENTS)
3,155 Portland Housing Development Corporation, Maine, 2/14 at 102.00 Baa2 3,329,882
Section 8 Assisted Senior Living Revenue Bonds, Avesta
Housing Development Corporation, Series 2004A,
6.000%, 2/01/34
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 3.3% (2.4% OF TOTAL INVESTMENTS)
2,000 Maryland Energy Financing Administration, Revenue Bonds, 9/07 at 100.00 N/R 2,015,720
AES Warrior Run Project, Series 1995, 7.400%, 9/01/19
(Alternative Minimum Tax)
66
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND (continued)
$ 3,850 Maryland Health and Higher Educational Facilities Authority, 8/14 at 100.00 BBB+ $ 4,118,576
Revenue Bonds, MedStar Health, Series 2004, 5.500%, 8/15/33
7,435 Prince George's County, Maryland, Revenue Bonds, Dimensions 1/07 at 100.00 B3 6,345,103
Health Corporation, Series 1994, 5.300%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
13,285 Total Maryland 12,479,399
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.0% (0.7% OF TOTAL INVESTMENTS)
635 Massachusetts Development Finance Agency, Pioneer Valley No Opt. Call N/R 643,617
Resource Recovery Revenue Bonds, Eco/Springfield LLC,
Series 2006, 5.875%, 7/01/14 (Alternative Minimum Tax)
1,350 Massachusetts Health and Educational Facilities Authority, 7/14 at 100.00 BB- 1,432,661
Revenue Bonds, Northern Berkshire Community Services Inc.,
Series 2004B, 6.375%, 7/01/34
1,450 Massachusetts Housing Finance Agency, Rental Housing 7/10 at 100.00 AAA 1,552,312
Mortgage Revenue Bonds, Series 2000H, 6.650%, 7/01/41 -
MBIA Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,435 Total Massachusetts 3,628,590
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.6% (3.3% OF TOTAL INVESTMENTS)
1,290 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 1,320,418
Charter School Revenue Bonds, Series 1999, 7.000%, 4/01/29
900 Countryside Charter School, Berrien County, Michigan, 4/09 at 100.00 N/R 943,677
Charter School Revenue Bonds, Series 2000, 8.000%, 4/01/29
1,440 Detroit Local Development Finance Authority, Michigan, 5/09 at 101.00 BB- 1,397,347
Tax Increment Bonds, Series 1998A, 5.500%, 5/01/21
3,580 Michigan State Hospital Finance Authority, Hospital Revenue 2/07 at 100.00 BB- 3,544,880
Refunding Bonds, Detroit Medical Center Obligated Group,
Series 1993B, 5.500%, 8/15/23
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 11/15 at 102.00 N/R 1,513,170
Hills and Dales General Hospital, Series 2005A,
6.750%, 11/15/38
1,200 Midland County Economic Development Corporation, 7/07 at 101.00 BB- 1,229,208
Michigan, Subordinated Pollution Control Limited Obligation
Revenue Refunding Bonds, Midland Cogeneration Project,
Series 2000A, 6.875%, 7/23/09 (Alternative Minimum Tax)
2,705 Nataki Talibah Schoolhouse, Wayne County, Michigan, 6/10 at 102.00 N/R 2,871,547
Certificates of Participation, Series 2000, 8.250%, 6/01/30
Pontiac Hospital Finance Authority, Michigan, Hospital Revenue
Refunding Bonds, NOMC Obligated Group, Series 1993:
1,000 6.000%, 8/01/13 2/07 at 100.00 BB- 1,000,400
1,500 6.000%, 8/01/18 2/07 at 100.00 BB- 1,483,665
1,800 6.000%, 8/01/23 2/07 at 100.00 BB- 1,738,998
------------------------------------------------------------------------------------------------------------------------------------
16,915 Total Michigan 17,043,310
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.9% (2.0% OF TOTAL INVESTMENTS)
Minneapolis, Minnesota, Student Housing Revenue Bonds,
Riverton Community Housing Project, Series 2000:
100 7.200%, 7/01/14 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 111,004
100 7.300%, 7/01/15 (Pre-refunded 7/01/10) 7/10 at 100.00 N/R (4) 111,342
1,325 Ramsey, Anoka County, Minnesota, Charter School Lease 6/14 at 102.00 N/R 1,430,748
Revenue Bonds, PACT Charter School, Series 2004A,
6.750%, 12/01/33
5,000 St. Louis Park, Minnesota, Revenue Bonds, Park Nicollet 7/14 at 100.00 A 5,292,050
Health Services, Series 2003B, 5.250%, 7/01/30
1,430 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,475,403
Charter School Revenue Bonds, Higher Ground Academy
Charter School, Series 2004A, 6.625%, 12/01/23
1,100 St. Paul Housing and Redevelopment Authority, Minnesota, 6/14 at 102.00 N/R 1,183,886
Charter School Revenue Bonds, HOPE Community Academy
Charter School, Series 2004A, 6.750%, 12/01/33
67
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA (continued)
$ 1,000 St. Paul Port Authority, Minnesota, Lease Revenue Bonds, 5/15 at 100.00 N/R $ 1,030,170
HealthEast Midway Campus, Series 2005B, 6.000%, 5/01/30
------------------------------------------------------------------------------------------------------------------------------------
10,055 Total Minnesota 10,634,603
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 0.2% (0.2% OF TOTAL INVESTMENTS)
998 Mississippi Home Corporation, Multifamily Housing Revenue 10/19 at 101.00 N/R 1,035,609
Bonds, Tupelo Personal Care Apartments, Series 2004-2,
6.125%, 9/01/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6% (0.5% OF TOTAL INVESTMENTS)
2,355 Kansas City Industrial Development Authority, Missouri, 2/14 at 102.00 N/R 2,453,627
Multifamily Housing Revenue Bonds, Pickwick Apartments
Project, Series 2004, 8.000%, 2/01/34 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 2.0% (1.4% OF TOTAL INVESTMENTS)
5,200 Montana Board of Investments, Exempt Facility Revenue 7/10 at 101.00 B2 5,424,016
Bonds, Stillwater Mining Company, Series 2000,
8.000%, 7/01/20 (Alternative Minimum Tax)
1,980 Montana Board of Investments, Resource Recovery Revenue No Opt. Call N/R 1,989,425
Bonds, Yellowstone Energy LP, Series 1993,
7.000%, 12/31/19 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,180 Total Montana 7,413,441
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.0% (2.2% OF TOTAL INVESTMENTS)
Omaha Public Power District, Nebraska, Electric System Revenue
Bonds, Nebraska City 2, Series 2006A, Residuals 1508-2:
1,000 7.530%, 2/01/49 (WI/DD, Settling 11/02/06) - AMBAC Insured (IF) 2/17 at 100.00 AAA 1,164,520
8,670 7.247%, 2/01/49 (DD1, Settling 11/02/06) - AMBAC Insured (IF) 2/17 at 100.00 AAA 10,096,388
------------------------------------------------------------------------------------------------------------------------------------
9,670 Total Nebraska 11,260,908
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.5% (1.8% OF TOTAL INVESTMENTS)
3,670 Clark County, Nevada, Industrial Development Revenue Bonds, 1/07 at 100.00 B- 3,669,743
Nevada Power Company Project, Series 1995C,
5.500%, 10/01/30
2,000 Clark County, Nevada, Industrial Development Revenue Bonds, 1/07 at 100.00 B- 2,004,760
Nevada Power Company, Series 1995A, 5.600%, 10/01/30
(Alternative Minimum Tax)
500 Clark County, Nevada, Industrial Development Revenue Bonds, 11/06 at 100.00 B 500,220
Nevada Power Company, Series 1997A, 5.900%, 11/01/32
(Alternative Minimum Tax)
1,500 Clark County, Nevada, Local Improvement Bonds, Mountain's 2/07 at 103.00 N/R 1,550,760
Edge Special Improvement District 142, Series 2003,
6.375%, 8/01/23
1,550 Director of Nevada State Department of Business and Industry, 1/10 at 102.00 N/R 1,616,092
Revenue Bonds, Las Vegas Monorail Project, Second Tier,
Series 2000, 7.375%, 1/01/40
------------------------------------------------------------------------------------------------------------------------------------
9,220 Total Nevada 9,341,575
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.8% (3.4% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 977,030
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
3,510 New Jersey Economic Development Authority, Special Facilities 9/09 at 101.00 B 3,630,533
Revenue Bonds, Continental Airlines Inc., Series 1999,
6.250%, 9/15/29 (Alternative Minimum Tax)
500 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 533,260
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- 558,790
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
7,825 6.750%, 6/01/39 6/13 at 100.00 BBB 8,930,594
2,760 7.000%, 6/01/41 6/13 at 100.00 BBB 3,196,052
------------------------------------------------------------------------------------------------------------------------------------
16,095 Total New Jersey 17,826,259
------------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.3% (1.6% OF TOTAL INVESTMENTS)
$ 4,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 Ba2 $ 4,199,880
Lenox Hill Hospital Obligated Group, Series 2001,
5.500%, 7/01/30
1,000 New York City Industrial Development Agency, New York, 8/16 at 101.00 B 1,210,190
American Airlines-JFK International Airport Special Facility
Revenue Bonds, Series 2005, 7.750%, 8/01/31
(Alternative Minimum Tax)
500 New York City Industrial Development Agency, New York, 3/09 at 103.00 N/R 533,585
Liberty Revenue Bonds, 7 World Trade Center, Series 2005A,
6.250%, 3/01/15
1,700 New York City Industrial Development Agency, New York, 12/06 at 100.00 CCC+ 1,709,401
Special Facilities Revenue Bonds, American Airlines Inc.,
Series 1994, 6.900%, 8/01/24 (Alternative Minimum Tax)
750 New York City Industrial Development Agency, New York, No Opt. Call B 854,325
Special Facilities Revenue Bonds, JFK Airport - American
Airlines Inc., Series 2002A, 8.000%, 8/01/12
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,950 Total New York 8,507,381
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.5% (1.1% OF TOTAL INVESTMENTS)
5,500 North Carolina Capital Facilities Finance Agency, Solid Waste 7/12 at 106.00 N/R 5,680,125
Facilities Revenue Bonds, Liberty Tire Services of
North Carolina LLC, Series 2004A, 6.750%, 7/01/29
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.0% (2.9% OF TOTAL INVESTMENTS)
Belmont County, Ohio, Revenue Bonds, Ohio Valley Health
Services and Education Corporation, Series 1998:
500 5.700%, 1/01/13 1/08 at 102.00 B 492,820
400 5.800%, 1/01/18 1/08 at 102.00 B 390,976
3,375 Cleveland-Cuyahoga County Port Authority, Ohio, Development 5/14 at 102.00 N/R 3,488,771
Revenue Bonds, Bond Fund Program - Garfield Heights Project,
Series 2004D, 5.250%, 5/15/23
7,300 Ohio Water Development Authority, Solid Waste Disposal 9/08 at 102.00 N/R 7,407,164
Revenue Bonds, Bay Shore Power, Series 1998A,
5.875%, 9/01/20 (Alternative Minimum Tax)
1,000 Ohio, Environmental Facilities Revenue Bonds, Ford Motor 4/15 at 100.00 Ba1 986,030
Company, Series 2005, 5.750%, 4/01/35 (Alternative
Minimum Tax)
800 Toledo-Lucas County Port Authority, Ohio, Port Revenue Bonds, 3/14 at 101.00 A+ 818,768
Cargill Inc., Series 2004A, 4.800%, 3/01/22
1,275 Trumbull County, Ohio, Sewerage Disposal Revenue Bonds, No Opt. Call B- 1,347,369
General Motors Corporation, Series 1994, 6.750%, 7/01/14
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
14,650 Total Ohio 14,931,898
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 5.0% (3.6% OF TOTAL INVESTMENTS)
1,000 Okeene Municipal Hospital and Schallmo Authority, Oklahoma, 1/16 at 101.00 N/R 1,009,120
Revenue Bonds, Series 2006, 7.000%, 1/01/35
Oklahoma Development Finance Authority, Revenue Refunding
Bonds, Hillcrest Healthcare System, Series 1999A:
1,200 5.750%, 8/15/15 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 1,278,504
11,680 5.625%, 8/15/29 (Pre-refunded 8/15/09) 8/09 at 101.00 AAA 12,405,674
850 Tulsa Industrial Authority, Oklahoma, Student Housing Revenue 10/16 at 100.00 A2 883,184
Bonds, University of Tulsa, Series 2006, 5.000%, 10/01/37
1,335 Tulsa Municipal Airport Trust, Oklahoma, Revenue Bonds, 12/06 at 101.00 B 1,341,755
American Airlines Inc., Series 1995, 6.250%, 6/01/20
1,500 Tulsa Municipal Airport Trust, Oklahoma, Revenue Refunding No Opt. Call B- 1,722,090
Bonds, American Airlines Inc., Series 2004A, 7.750%, 6/01/35
(Mandatory put 12/01/14)
------------------------------------------------------------------------------------------------------------------------------------
17,565 Total Oklahoma 18,640,327
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.8% (3.4% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn Allegheny Health System, Series 2000B:
695 9.250%, 11/15/22 11/10 at 102.00 Ba3 831,276
6,455 9.250%, 11/15/30 11/10 at 102.00 Ba3 7,707,399
69
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 500 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ $ 518,530
Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,000 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 2,033,260
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.750%, 10/15/37
190 Monroeville Hospital Authority, Pennsylvania, Revenue Bonds, 10/13 at 100.00 Ba3 190,296
Forbes Health System, Series 1992, 7.000%, 10/01/13
300 Monroeville Hospital Authority, Pennsylvania, Revenue Bonds, 4/07 at 101.00 Ba3 303,438
Forbes Health System, Series 1995, 6.250%, 10/01/15
500 New Morgan Industrial Development Authority, Pennsylvania, 4/07 at 100.00 BB- 499,955
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative
Minimum Tax)
400 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 429,640
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2002A, 6.750%, 12/01/36 (Alternative Minimum Tax)
600 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 644,460
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
4,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,330,920
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative
Minimum Tax)
230 Pennsylvania Higher Educational Facilities Authority, Revenue 9/17 at 100.00 Ba3 230,391
Bonds, Allegheny General Hospital, Series 1991A,
7.250%, 9/01/17
------------------------------------------------------------------------------------------------------------------------------------
15,870 Total Pennsylvania 17,719,565
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.3% (1.0% OF TOTAL INVESTMENTS)
1,500 Central Falls Detention Facility Corporation, Rhode Island, 7/15 at 103.00 N/R 1,691,340
Detention Facility Revenue Bonds, Series 2005,
7.250%, 7/15/35
3,000 Rhode Island Tobacco Settlement Financing Corporation, 6/12 at 100.00 BBB 3,229,710
Tobacco Settlement Asset-Backed Bonds, Series 2002A,
6.250%, 6/01/42
------------------------------------------------------------------------------------------------------------------------------------
4,500 Total Rhode Island 4,921,050
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.1% (0.1% OF TOTAL INVESTMENTS)
490 Tobacco Settlement Revenue Management Authority, No Opt. Call BBB 572,810
South Carolina, Tobacco Settlement Asset-Backed Bonds,
Series 2001B, 6.375%, 5/15/30
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.2% (0.9% OF TOTAL INVESTMENTS)
3,500 Knox County Health, Educational and Housing Facilities Board, 4/12 at 101.00 Baa3 3,879,680
Tennessee, Hospital Revenue Bonds, Baptist Health System
of East Tennessee Inc., Series 2002, 6.500%, 4/15/31
500 Maury County Industrial Development Board, Tennessee, 3/07 at 100.00 B- 504,475
Multi-Modal Interchangeable Rate Pollution Control Revenue
Refunding Bonds, Saturn Corporation, Series 1994,
6.500%, 9/01/24
------------------------------------------------------------------------------------------------------------------------------------
4,000 Total Tennessee 4,384,155
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 8.9% (6.4% OF TOTAL INVESTMENTS)
1,200 Dallas-Ft. Worth International Airport Facility Improvement 11/06 at 100.00 CCC+ 1,218,000
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1992, 7.250%, 11/01/30 (Alternative Minimum Tax)
2,705 Dallas-Ft. Worth International Airport Facility Improvement 11/07 at 100.00 CCC+ 2,709,166
Corporation, Texas, Revenue Bonds, American Airlines Inc.,
Series 1995, 6.000%, 11/01/14
Decatur Hospital Authority, Texas, Revenue Bonds, Wise
Regional Health System, Series 2004A:
1,840 7.000%, 9/01/25 9/14 at 100.00 N/R 2,017,229
6,600 7.125%, 9/01/34 9/14 at 100.00 N/R 7,245,876
585 Gulf Coast Industrial Development Authority, Texas, 4/12 at 100.00 Ba1 657,031
Solid Waste Disposal Revenue Bonds, Citgo Petroleum
Corporation Project, Series 1998, 8.000%, 4/01/28
(Alternative Minimum Tax)
Houston Health Facilities Development Corporation, Texas,
Revenue Bonds, Buckingham Senior Living Community Inc.,
Series 2004A:
250 7.000%, 2/15/23 2/14 at 101.00 N/R 279,188
1,400 7.125%, 2/15/34 2/14 at 101.00 N/R 1,561,056
2,020 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- 1,989,478
Bonds, Continental Air Lines Inc., Series 1998B,
5.700%, 7/15/29 (Alternative Minimum Tax)
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 975 Houston, Texas, Airport System Special Facilities Revenue 7/09 at 101.00 B- $ 960,268
Bonds, Continental Air Lines Inc., Series 1998C,
5.700%, 7/15/29 (Alternative Minimum Tax)
Houston, Texas, Airport System Special Facilities Revenue
Bonds, Continental Air Lines Inc., Series 2001E:
600 7.375%, 7/01/22 (Alternative Minimum Tax) 7/11 at 101.00 B- 658,902
5,350 6.750%, 7/01/29 (Alternative Minimum Tax) 7/11 at 101.00 B- 5,738,196
2,000 Sea Breeze Public Facility Corporation, Texas, Multifamily 1/21 at 100.00 N/R 2,035,960
Housing Revenue Bonds, Sea Breeze Senior Apartments,
Series 2006, 6.500%, 1/01/46 (Alternative Minimum Tax)
5,850 Texas Department of Housing and Community Affairs, 7/21 at 100.00 N/R 5,940,090
Multifamily Housing Revenue Bonds, Humble Parkway
Townhomes, Series 2004, 6.600%, 1/01/41 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
31,375 Total Texas 33,010,440
------------------------------------------------------------------------------------------------------------------------------------
VIRGIN ISLANDS - 3.3% (2.4% OF TOTAL INVESTMENTS)
3,000 Virgin Islands Public Finance Authority, Gross Receipts Taxes 10/14 at 100.00 AA 3,165,300
Loan Note, Series 2003, 5.000%, 10/01/26 - RAAI Insured
5,000 Virgin Islands Public Finance Authority, Revenue Bonds, 1/14 at 100.00 BBB 5,536,200
Refinery Project - Hovensa LLC, Series 2003,
6.125%, 7/01/22 (Alternative Minimum Tax)
3,300 Virgin Islands Public Finance Authority, Senior Secured Lien 7/14 at 100.00 BBB 3,620,364
Revenue Bonds, Refinery Project - Hovensa LLC, Series 2004,
5.875%, 7/01/22
------------------------------------------------------------------------------------------------------------------------------------
11,300 Total Virgin Islands 12,321,864
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 4.3% (3.1% OF TOTAL INVESTMENTS)
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998A:
2,000 0.000%, 8/15/14 (Pre-refunded 8/15/08) 8/08 at 73.23 AAA 1,373,040
4,250 5.500%, 8/15/28 (Pre-refunded 8/15/08) 8/08 at 102.00 AAA 4,475,420
1,850 0.000%, 8/15/30 (Pre-refunded 8/15/08) 8/08 at 28.38 AAA 492,229
Pocahontas Parkway Association, Virginia, Senior Lien Revenue
Bonds, Route 895 Connector Toll Road, Series 1998B:
2,000 0.000%, 8/15/12 (Pre-refunded 8/15/08) 8/08 at 82.10 AAA 1,539,380
3,000 0.000%, 8/15/15 (Pre-refunded 8/15/08) 8/08 at 68.82 AAA 1,935,690
9,000 0.000%, 8/15/19 (Pre-refunded 8/15/08) 8/08 at 54.38 AAA 4,588,560
630 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 105.00 B2 674,610
Horse Center Revenue Bonds, Series 2001A, 7.400%, 7/15/21
980 Rockbridge County Industrial Development Authority, Virginia, 7/11 at 100.00 B2 997,944
Horse Center Revenue Refunding Bonds, Series 2001C,
6.850%, 7/15/21
------------------------------------------------------------------------------------------------------------------------------------
23,710 Total Virginia 16,076,873
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 3.5% (2.5% OF TOTAL INVESTMENTS)
3,000 Skagit County Public Hospital District 1, Washington, Revenue 12/13 at 100.00 Baa2 3,263,790
Bonds, Skagit Valley Hospital, Series 2003, 6.000%, 12/01/18
Vancouver Downtown Redevelopment Authority, Washington,
Revenue Bonds, Conference Center Project, Series 2003A:
1,750 6.000%, 1/01/28 - ACA Insured 1/14 at 100.00 A 1,922,078
4,725 6.000%, 1/01/34 - ACA Insured 1/14 at 100.00 A 5,162,299
2,500 5.250%, 1/01/34 - ACA Insured 1/14 at 100.00 A 2,589,600
------------------------------------------------------------------------------------------------------------------------------------
11,975 Total Washington 12,937,767
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.0% (4.3% OF TOTAL INVESTMENTS)
550 Lac Courte Oreilles Band of Lake Superior Chippewa Indians, 12/14 at 101.00 N/R 552,503
Wisconsin, Revenue Bonds, Series 2003A, 7.750%, 6/01/16
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Aurora Health Care Inc., Series 1999A:
9,485 5.600%, 2/15/29 2/09 at 101.00 BBB+ 9,856,053
2,300 5.600%, 2/15/29 - ACA Insured 2/09 at 101.00 A 2,373,324
71
Nuveen Municipal High Income Opportunity Fund (NMZ) (continued)
Portfolio of INVESTMENTS October 31, 2006
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 300 Wisconsin Health and Educational Facilities Authority, Revenue 7/08 at 100.00 N/R $ 305,934
Bonds, Milwaukee Catholic Home Inc., Series 1996,
7.250%, 7/01/17
500 Wisconsin Health and Educational Facilities Authority, Revenue 8/15 at 100.00 N/R 500,745
Bonds, Oakwood Village Obligated Group, Series 2000A,
7.000%, 8/15/15
Wisconsin Health and Educational Facilities Authority, Revenue
Bonds, Southwest Health Center Inc., Series 2004A:
875 6.125%, 4/01/24 4/14 at 100.00 N/R 905,196
1,000 6.250%, 4/01/34 4/14 at 100.00 N/R 1,029,970
6,280 Wisconsin Health and Educational Facilities Authority, Revenue 2/12 at 101.00 A- 6,785,791
Bonds, Wheaton Franciscan Services Inc., Series 2002,
5.750%, 8/15/30
------------------------------------------------------------------------------------------------------------------------------------
21,290 Total Wisconsin 22,309,516
------------------------------------------------------------------------------------------------------------------------------------
$ 496,789 Total Investments (cost $476,648,636) - 139.2% 518,941,755
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.4% 8,757,808
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (41.6)% (155,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 372,699,563
====================================================================================================================
(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) Non-income producing security, in the case of a bond,
generally denotes that the issuer has defaulted on the
payment of principal or interest or has filed for
bankruptcy.
(6) The issuer has received a formal adverse determination
from the Internal Revenue Service (the "IRS") regarding
the tax-exempt status of the bonds' coupon payments.
The fund will continue to treat coupon payments as
tax-exempt income until such time that it is formally
determined that the interest on the bonds should be
treated as taxable.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
DD1 Portion purchased on a delayed delivery basis.
See accompanying notes to financial statements.
72
Statement of
ASSETS AND LIABILITIES October 31, 2006
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $787,633,893, $850,009,071 $799,530,893 $1,275,317,703 $477,525,229 $518,941,755
$741,378,330, $1,179,183,850, $446,434,862
and $476,648,636, respectively)
Cash 3,341,114 -- -- 2,338,827 1,512,593
Receivables:
Interest 13,223,978 11,971,424 20,098,046 7,251,069 9,327,910
Investments sold 1,159,422 450,000 125,000 13,990,177 8,262,187
Other assets 68,621 83,054 96,806 48,670 18,674
------------------------------------------------------------------------------------------------------------------------------------
Total assets 867,802,206 812,035,371 1,295,637,555 501,153,972 538,063,119
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- 2,349,812 2,778,712 -- --
Payable for investments purchased 4,600,657 -- -- 26,064,647 10,004,271
Unrealized depreciation on forward swaps -- -- -- 507,183 --
Accrued expenses:
Management fees 444,692 418,100 658,311 248,058 177,591
Other 173,598 164,078 263,546 114,672 78,326
Preferred share dividends payable 111,831 107,494 185,687 79,226 103,368
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,330,778 3,039,484 3,886,256 27,013,786 10,363,556
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 301,000,000 279,000,000 452,000,000 165,000,000 155,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $561,471,428 $529,995,887 $ 839,751,299 $309,140,186 $372,699,563
====================================================================================================================================
Common shares outstanding 35,748,959 33,930,856 54,204,488 20,091,018 23,299,918
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common
shares, divided by Common
shares outstanding) $ 15.71 $ 15.62 $ 15.49 $ 15.39 $ 16.00
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 357,490 $ 339,309 $ 542,045 $ 200,910 $ 232,999
Paid-in surplus 498,308,982 472,515,685 755,082,993 279,092,132 329,884,046
Undistributed (Over-distribution of)
net investment income 2,769,331 2,057,255 1,631,998 (342,548) 166,221
Accumulated net realized gain (loss)
from investments (2,339,553) (3,068,925) (13,639,590) (393,492) 123,178
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 62,375,178 58,152,563 96,133,853 30,583,184 42,293,119
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $561,471,428 $529,995,887 $ 839,751,299 $309,140,186 $372,699,563
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 200,000,000 Unlimited
Preferred 1,000,000 1,000,000 1,000,000 1,000,000 Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
73
Statement of
OPERATIONS Year Ended October 31, 2006
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $44,011,683 $42,306,699 $64,439,163 $22,619,512 $30,859,240
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,226,782 4,924,931 7,752,289 2,905,566 3,732,074
Preferred shares - auction fees 752,859 697,813 1,130,571 412,755 261,637
Preferred shares - dividend disbursing agent fees 51,699 50,000 63,396 30,000 21,829
Shareholders' servicing agent fees and expenses 65,283 58,150 96,727 35,564 2,935
Custodian's fees and expenses 204,353 166,311 279,749 149,789 173,627
Directors'/Trustees' fees and expenses 19,198 17,984 28,327 10,338 11,451
Professional fees 61,197 39,735 65,696 58,007 56,678
Shareholders' reports - printing and
mailing expenses 76,080 74,685 119,319 46,004 50,825
Stock exchange listing fees 13,188 12,502 19,997 9,917 1,978
Investor relations expense 82,901 78,756 123,909 46,784 49,732
Other expenses 50,871 47,858 67,005 33,724 31,463
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit, expense
reimbursement and legal fee refund 6,604,411 6,168,725 9,746,985 3,738,448 4,394,229
Custodian fee credit (13,061) (47,275) (66,121) (20,316) (12,118)
Expense reimbursement -- -- -- -- (1,654,168)
Legal fee refund (130,588) (9,485) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 6,460,762 6,111,965 9,680,864 3,718,132 2,727,943
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 37,550,921 36,194,734 54,758,299 18,901,380 28,131,297
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments (2,340,524) (1,691,751) 1,142,647 197,145 538,187
Change in net unrealized appreciation
(depreciation) of investments 17,200,976 9,521,291 15,255,701 10,303,176 14,643,108
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- (507,183) --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 14,860,452 7,829,540 16,398,348 9,993,138 15,181,295
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (8,562,468) (8,877,061) (14,224,057) (5,143,710) (4,487,444)
From accumulated net realized gains (957,218) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (9,519,686) (8,877,061) (14,224,057) (5,143,710) (4,487,444)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $42,891,687 $35,147,213 $56,932,590 $23,750,808 $38,825,148
====================================================================================================================================
See accompanying notes to financial statements.
74
Statement of
CHANGES IN NET ASSETS
INVESTMENT QUALITY (NQM) SELECT QUALITY (NQS)
------------------------------ -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/06 10/31/05 10/31/06 10/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 37,550,921 $ 37,473,065 $ 36,194,734 $ 36,101,610
Net realized gain (loss) from investments (2,340,524) 6,082,899 (1,691,751) 960,964
Change in net unrealized appreciation
(depreciation) of investments 17,200,976 (20,140,785) 9,521,291 (6,444,043)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (8,562,468) (5,597,765) (8,877,061) (5,583,403)
From accumulated net realized gains (957,218) (283,920) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 42,891,687 17,533,494 35,147,213 25,035,128
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (30,152,759) (34,211,757) (29,818,961) (32,735,302)
From accumulated net realized gains (5,124,321) (3,628,521) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (35,277,080) (37,840,278) (29,818,961) (32,735,302)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Offering costs adjustments -- -- -- --
Net proceeds issued
to shareholders due to
reinvestment of distributions -- -- 673,438 --
Preferred shares offering costs adjustments -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- -- 673,438 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 7,614,607 (20,306,784) 6,001,690 (7,700,174)
Net assets applicable to Common shares
at the beginning of year 553,856,821 574,163,605 523,994,197 531,694,371
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of year $561,471,428 $553,856,821 $529,995,887 $523,994,197
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of year $ 2,769,331 $ 3,934,793 $ 2,057,255 $ 4,579,876
====================================================================================================================================
See accompanying notes to financial statements.
75
Statement of
CHANGES IN NET ASSETS (continued)
HIGH INCOME
QUALITY INCOME (NQU) PREMIER INCOME (NPF) OPPORTUNITY (NMZ)
----------------------------- ------------------------------ -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/06 10/31/05 10/31/06 10/31/05 10/31/06 10/31/05
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 54,758,299 $ 55,329,356 $ 18,901,380 $ 18,954,617 $ 28,131,297 $ 28,356,278
Net realized gain (loss)
from investments 1,142,647 2,451,781 197,145 (575,979) 538,187 (419,282)
Change in net unrealized
appreciation (depreciation)
of investments 15,255,701 (14,338,193) 10,303,176 (7,270,490) 14,643,108 12,786,268
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- (507,183) -- -- --
Distributions to
Preferred Shareholders:
From net investment income (14,224,057) (8,862,398) (5,143,710) (3,156,277) (4,487,444) (3,009,376)
From accumulated net
realized gains -- -- -- (210,150) -- (126,806)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 56,932,590 34,580,546 23,750,808 7,741,721 38,825,148 37,587,082
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (44,257,967) (49,597,118) (14,033,577) (17,603,925) (24,231,711) (24,809,067)
From accumulated net realized gains -- -- -- (2,706,087) -- (1,439,677)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (44,257,967) (49,597,118) (14,033,577) (20,310,012) (24,231,711) (26,248,744)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Offering costs adjustments -- -- -- -- 220,368 --
Net proceeds issued
to shareholders due to
reinvestment of distributions -- -- -- -- 860,335 679,398
Preferred shares offering
costs adjustments -- -- -- -- -- (15,476)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- -- -- -- 1,080,703 663,922
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets
applicable to Common shares 12,674,623 (15,016,572) 9,717,231 (12,568,291) 15,674,140 12,002,260
Net assets applicable
to Common shares
at the beginning of year 827,076,676 842,093,248 299,422,955 311,991,246 357,025,423 345,023,163
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable
to Common shares
at the end of year $839,751,299 $827,076,676 $309,140,186 $299,422,955 $372,699,563 $357,025,423
====================================================================================================================================
Undistributed (Over-distribution of)
net investment income
at the end of year $ 1,631,998 $ 5,379,712 $ (342,548) $ (60,808) $ 166,221 $ 763,211
====================================================================================================================================
See accompanying notes to financial statements.
76
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Investment Quality Municipal Fund, Inc.
(NQM), Nuveen Select Quality Municipal Fund, Inc. (NQS), Nuveen Quality Income
Municipal Fund, Inc. (NQU), Nuveen Premier Municipal Income Fund, Inc. (NPF) and
Nuveen Municipal High Income Opportunity Fund (NMZ). Common shares of Investment
Quality (NQM), Select Quality (NQS), Quality Income (NQU) and Premier Income
(NPF) are traded on the New York Stock Exchange while Common shares of High
Income Opportunity (NMZ) are traded on the American Stock Exchange. The Funds
are registered under the Investment Company Act of 1940, as amended, as
closed-end, diversified management investment companies.
Each Fund seeks to provide current income exempt from regular federal income tax
by investing primarily in a diversified portfolio of municipal obligations
issued by state and local government authorities 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 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 October 31, 2006,
Investment Quality (NQM), Premier Income (NPF) and High Income Opportunity (NMZ)
had when-issued/delayed delivery purchase commitments of $4,600,657, $12,333,845
and $6,856,121, respectively. There were no such outstanding purchase
commitments in either Select Quality (NQS) or Quality Income (NQU) at October
31, 2006.
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.
Professional Fees
Professional fees presented in the Statement of Operations consist of legal fees
incurred in the normal course of operations, audit fees, tax consulting fees
and, in some cases, workout expenditures. Workout expenditures are incurred in
an attempt to protect or enhance an investment, or to pursue other claims or
legal actions on behalf of Fund shareholders. Legal fee refunds presented on the
Statement of Operations for Investment Quality (NQM) and Select Quality (NQS)
reflect a refund of workout expenditures paid in a prior reporting period.
Federal 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 income tax, 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 October
31, 2006, have been designated Exempt Interest Dividends. Net realized capital
gains and ordinary income distributions paid by the Funds are subject to federal
taxation.
77
Notes to
FINANCIAL STATEMENTS (continued)
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 more than one Series. The dividend rate paid by the Funds on each
Series, with the exception of High Income Opportunity's (NMZ) Series W, 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 initial
dividend rate for High Income Opportunity's (NMZ) Series W was negotiated at the
time of the Preferred share offering and is set for a three year period, from
its inception, and payable monthly. The number of Preferred shares outstanding,
by Series and in total, for each Fund is as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,500 2,000 3,000 1,000 3,000
Series T 2,500 2,000 3,000 2,800 1,600
Series W 2,500 2,800 3,000 -- 1,600
Series W2 -- -- 2,080 -- --
Series TH 2,040 1,560 4,000 2,800 --
Series F 2,500 2,800 3,000 -- --
---------------------------------------------------------------------------------------------------------
Total 12,040 11,160 18,080 6,600 6,200
=========================================================================================================
Inverse Floating Rate Securities
The Funds are authorized to invest in inverse floating rate securities. During
the year ended October 31, 2006, Quality Income (NQU), Premier Income (NPF) and
High Income Opportunity (NMZ) invested in inverse floating rate securities for
the purpose of enhancing portfolio yield. Inverse floating rate securities are
identified in the Portfolio of Investments and are valued daily. The interest
rate of an inverse floating rate security has an inverse relationship to the
interest rate of a short-term floating rate security. Consequently, as the
interest rate of the floating rate security rises, the interest rate on the
inverse floating rate security declines. Conversely, as the interest rate of the
floating rate security declines, the interest rate on the inverse floating rate
security rises. The price of an inverse floating rate security will be more
volatile than that of an otherwise comparable fixed rate security since the
interest rate is dependent on an underlying fixed coupon rate or the general
level of long-term interest rates as well as the short-term interest paid on the
floating rate security, and because the inverse floating rate security typically
bears the risk of loss of a greater face value of an underlying bond. There were
no such securities in any of the other Funds during the year ended October 31,
2006.
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 help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The
78
Funds may terminate a swap contract prior to the effective date, at which point
a realized gain or loss is recognized. When a forward swap is terminated, it
ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Each Fund
intends, but is not obligated, to terminate its forward swaps before the
effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To reduce such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unrealized gain above a pre-determined threshold. Reciprocally, when any of the
Funds have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by 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.
2. FUND SHARES
Transactions in Common shares were as follows:
INVESTMENT SELECT QUALITY
QUALITY (NQM) QUALITY (NQS) INCOME (NQU)
----------------------- ------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/06 10/31/05 10/31/06 10/31/05 10/31/06 10/31/05
----------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 43,382 -- -- --
======================================================================================================================
PREMIER HIGH INCOME
INCOME (NPF) OPPORTUNITY (NMZ)
------------------------ -----------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/06 10/31/05 10/31/06 10/31/05
----------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 51,796 44,087
======================================================================================================================
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2006, were
as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
------------------------------------------------------------------------------------------------------------------
Purchases $ 85,986,906 $39,710,047 $136,324,913 $170,602,739 $45,975,431
Sales and maturities 95,917,296 36,755,099 138,932,955 163,677,967 47,392,239
==================================================================================================================
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. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their Federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
79
Notes to
FINANCIAL STATEMENTS (continued)
At October 31, 2006, the cost of investments was as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
--------------------------------------------------------------------------------------------------------------
Cost of investments $787,141,632 $740,851,854 $1,178,850,366 $446,374,929 $475,466,517
==============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2006, were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
--------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $62,958,239 $58,679,039 $96,897,740 $31,365,425 $43,909,337
Depreciation (90,800) -- (430,403) (215,125) (434,099)
--------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $62,867,439 $58,679,039 $96,467,337 $31,150,300 $43,475,238
==============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2006, the Fund's tax year end,
were as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
--------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $4,796,980 $4,027,947 $4,511,884 $768,750 $981,474
Undistributed net ordinary income ** 4,975 2,451 -- 2,951 4,938
Undistributed net long-term capital gains -- -- -- -- 123,178
==============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 2, 2006, paid on November 1, 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 October 31,
2006 and October 31, 2005, was designated for purposes of the dividends paid
deduction as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
2006 (NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $38,825,191 $38,884,337 $58,786,651 $19,384,184 $28,940,473
Distributions from net
ordinary income ** 83,195 -- -- -- --
Distributions from
net long-term
capital gains*** 6,081,436 -- -- -- --
=========================================================================================================
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
2005 (NQM) (NQS) (NQU) (NPF) (NMZ)
---------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $40,152,471 $38,496,292 $58,975,142 $20,987,782 $27,803,988
Distributions from net
ordinary income ** -- -- -- 26,171 1,567,342
Distributions from
net long-term
capital gains 3,912,439 -- -- 2,914,704 --
=========================================================================================================
** 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
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2006.
80
At October 31, 2006, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied, the carryforwards will expire as follows:
INVESTMENT SELECT QUALITY PREMIER
QUALITY QUALITY INCOME INCOME
(NQM) (NQS) (NQU) (NPF)
--------------------------------------------------------------------------------
Expiration year:
2011 $ -- $ -- $13,225,290 $ --
2012 -- 1,397,851 -- --
2013 -- -- -- 393,492
2014 2,339,553 1,671,074 -- --
--------------------------------------------------------------------------------
Total $2,339,553 $3,068,925 $13,225,290 $393,492
================================================================================
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:
INVESTMENT QUALITY (NQM)
SELECT QUALITY (NQS)
AVERAGE DAILY NET ASSETS QUALITY INCOME (NQU)
(INCLUDING NET ASSETS PREMIER INCOME (NPF)
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
================================================================================
AVERAGE DAILY NET ASSETS
(INCLUDING NET ASSETS HIGH INCOME OPPORTUNITY (NMZ)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .5500%
For the next $125 million .5375
For the next $250 million .5250
For the next $500 million .5125
For the next $1 billion .5000
For net assets over $2 billion .4750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of October 31, 2006, the complex-level fee rate was .1852%.
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.
81
Notes to
FINANCIAL STATEMENTS (continued)
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first eight years of High Income Opportunity's (NMZ) operations, the
Adviser has agreed to reimburse the Fund, 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
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2003* .32% 2009 .24%
2004 .32 2010 .16
2005 .32 2011 .08
2006 .32
2007 .32
2008 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse High Income Opportunity (NMZ) for any
portion of its fees and expenses beyond November 30, 2011.
6. NEW ACCOUNTING PRONOUNCEMENTS
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.
Financial Accounting Standards Board Statement on Financial Accounting
Standards No. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2006, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2006, to shareholders of record
on November 15, 2006, as follows:
INVESTMENT SELECT QUALITY PREMIER HIGH INCOME
QUALITY QUALITY INCOME INCOME OPPORTUNITY
(NQM) (NQS) (NQU) (NPF) (NMZ)
--------------------------------------------------------------------------------
Dividend per share $.0675 $.0705 $.0635 $.0560 $.0815
================================================================================
82
Financial
HIGHLIGHTS
83
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
====================================================================================================================================
INVESTMENT QUALITY (NQM)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 $15.49 $1.05 $ .42 $(.24) $(.03) $1.20 $ (.84) $(.14) $ (.98)
2005 16.06 1.05 (.39) (.16) (.01) .49 (.96) (.10) (1.06)
2004 15.65 1.07 .43 (.08) -- 1.42 (1.01) -- (1.01)
2003 15.63 1.11 .02 (.08) -- 1.05 (1.01) (.02) (1.03)
2002 15.71 1.15 (.15) (.11) (.01) .88 (.94) (.02) (.96)
SELECT QUALITY (NQS)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 15.46 1.07 .23 (.26) -- 1.04 (.88) -- (.88)
2005 15.69 1.06 (.16) (.16) -- .74 (.97) -- (.97)
2004 15.33 1.09 .42 (.07) (.01) 1.43 (1.00) (.07) (1.07)
2003 15.00 1.08 .30 (.07) -- 1.31 (.98) -- (.98)
2002 15.48 1.12 (.38) (.09) (.04) .61 (.94) (.15) (1.09)
QUALITY INCOME (NQU)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 15.26 1.01 .30 (.26) -- 1.05 (.82) -- (.82)
2005 15.54 1.02 (.22) (.16) -- .64 (.92) -- (.92)
2004 15.04 1.04 .51 (.08) -- 1.47 (.97) -- (.97)
2003 14.70 1.06 .34 (.07) -- 1.33 (.96) (.03) (.99)
2002 15.32 1.12 (.59) (.10) (.03) .40 (.93) (.09) (1.02)
PREMIER INCOME (NPF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 14.90 .94 .51 (.26) -- 1.19 (.70) -- (.70)
2005 15.53 .94 (.39) (.16) (.01) .38 (.88) (.13) (1.01)
2004 15.13 1.00 .47 (.08) -- 1.39 (.99) -- (.99)
2003 15.23 1.06 (.01) (.07) (.01) .97 (.98) (.09) (1.07)
2002 15.31 1.15 (.13) (.11) (.01) .90 (.96) (.02) (.98)
HIGH INCOME
OPPORTUNITY (NMZ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 15.36 1.21 .65 (.19) -- 1.67 (1.04) -- (1.04)
2005 14.87 1.22 .54 (.13) (.01) 1.62 (1.07) (.06) (1.13)
2004(a) 14.33 .98 .71 (.08) -- 1.61 (.89) -- (.89)
====================================================================================================================================
Total Returns
----------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
============================================================================================
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 $ -- $15.71 $15.60 15.33% 8.09%
2005 -- 15.49 14.45 1.17 3.10
2004 -- 16.06 15.33 8.54 9.37
2003 -- 15.65 15.10 7.78 6.88
2002 -- 15.63 14.99 7.71 5.85
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 -- 15.62 15.47 10.47 6.94
2005 -- 15.46 14.83 4.14 4.77
2004 -- 15.69 15.19 10.19 9.64
2003 -- 15.33 14.81 9.91 8.96
2002 -- 15.00 14.40 5.24 4.22
QUALITY INCOME (NQU)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 -- 15.49 14.73 8.55 7.07
2005 -- 15.26 14.34 4.78 4.15
2004 -- 15.54 14.58 8.76 10.07
2003 -- 15.04 14.33 9.31 9.37
2002 -- 14.70 14.04 3.05 2.71
PREMIER INCOME (NPF)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 -- 15.39 13.65 5.93 8.20
2005 -- 14.90 13.57 1.05 2.49
2004 -- 15.53 14.43 4.75 9.48
2003 -- 15.13 14.74 9.13 6.57
2002 -- 15.23 14.52 4.57 6.19
HIGH INCOME
OPPORTUNITY (NMZ)
--------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 .01 16.00 17.25 14.79 11.34
2005 -- 15.36 15.99 14.35 11.20
2004(a) (.18) 14.87 15.04 6.49 10.38
============================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Before Credit/ After Credit/
Reimbursement/Refund Reimbursement/Refund***
------------------------------ ------------------------------
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
==========================================================================================================================
INVESTMENT QUALITY (NQM)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 $561,471 1.20% 6.79% 1.17% 6.82% 10%
2005 553,857 1.20 6.59 1.18 6.61 22
2004 574,164 1.20 6.78 1.20 6.79 16
2003 559,644 1.22 7.05 1.22 7.05 5
2002 558,604 1.21 7.48 1.21 7.49 5
SELECT QUALITY (NQS)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 529,996 1.18 6.91 1.17 6.93 5
2005 523,994 1.18 6.76 1.16 6.78 4
2004 531,694 1.21 6.96 1.15 7.02 4
2003 519,361 1.26 7.06 1.25 7.06 9
2002 508,300 1.24 7.46 1.23 7.47 19
QUALITY INCOME (NQU)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 839,751 1.18 6.62 1.17 6.63 11
2005 827,077 1.18 6.57 1.17 6.57 6
2004 842,093 1.20 6.83 1.20 6.83 6
2003 815,270 1.21 7.12 1.21 7.13 9
2002 796,591 1.23 7.50 1.22 7.51 32
PREMIER INCOME (NPF)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 309,140 1.24 6.27 1.23 6.28 35
2005 299,423 1.23 6.16 1.22 6.17 20
2004 311,991 1.28 6.57 1.27 6.58 22
2003 304,048 1.24 6.91 1.23 6.91 19
2002 305,958 1.29 7.66 1.28 7.67 25
HIGH INCOME
OPPORTUNITY (NMZ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2006 372,700 1.21 7.31 .75 7.77 9
2005 357,025 1.20 7.54 .74 8.00 6
2004(a) 345,023 1.15* 6.75* .70* 7.20* 52
==========================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=====================================================================
INVESTMENT QUALITY (NQM)
---------------------------------------------------------------------
Year Ended 10/31:
2006 $301,000 $25,000 $71,634
2005 301,000 25,000 71,001
2004 301,000 25,000 72,688
2003 301,000 25,000 71,482
2002 301,000 25,000 71,396
SELECT QUALITY (NQS)
---------------------------------------------------------------------
Year Ended 10/31:
2006 279,000 25,000 72,491
2005 279,000 25,000 71,953
2004 279,000 25,000 72,643
2003 279,000 25,000 71,538
2002 279,000 25,000 70,547
QUALITY INCOME (NQU)
---------------------------------------------------------------------
Year Ended 10/31:
2006 452,000 25,000 71,446
2005 452,000 25,000 70,745
2004 452,000 25,000 71,576
2003 452,000 25,000 70,092
2002 452,000 25,000 69,059
PREMIER INCOME (NPF)
---------------------------------------------------------------------
Year Ended 10/31:
2006 165,000 25,000 71,839
2005 165,000 25,000 70,367
2004 165,000 25,000 72,271
2003 165,000 25,000 71,068
2002 165,000 25,000 71,357
HIGH INCOME
OPPORTUNITY (NMZ)
---------------------------------------------------------------------
Year Ended 10/31:
2006 155,000 25,000 85,113
2005 155,000 25,000 82,585
2004(a) 155,000 25,000 80,649
=====================================================================
* 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, expense reimbursement and legal fee refund,
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 November 19, 2003 (commencement of operations) through
October 31, 2004.
See accompanying notes to financial statements.
84-85 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
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR 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 171
3/28/49 the Board Nuveen Investments, Inc., Nuveen
333 W. Wacker Drive and Board Investments, LLC, Nuveen Advisory Corp.
Chicago, IL 60606 Member and Nuveen Institutional Advisory
Corp.(3); formerly, Director (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 171
8/22/40 Board member Consultant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice 171
7/29/34 President of The Northern Trust Company;
333 W. Wacker Drive Director (since 2002) Community Advisory
Chicago, IL 60606 Board for Highland Park and Highwood,
United Way of the North Shore; Director
(since 2006) of the Michael Rolfe
Pancreatic Cancer Foundation.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, 171
10/22/48 a private philanthropic corporation
333 W. Wacker Drive (since 1996); Director and Vice
Chicago, IL 60606 Chairman, United Fire Group, a publicly
held company; Adjunct Faculty Member,
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, 171
3/6/48 University of Iowa (since June 2006);
333 W. Wacker Drive formerly, Dean and Distinguished
Chicago, IL 60606 Professor of Finance, School of Business
at the University of Connecticut
(2003-2006); 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, 169
10/28/42 JPMorgan Fleming Asset Management,
333 W. Wacker Drive President and CEO, Banc One Investment
Chicago, IL 60606 Advisors Corporation, and President, One
Group Mutual 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.
86
NUMBER OF PORTFOLIOS
PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS OR 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 171
9/24/44 Ltd., a real estate investment company;
333 W. Wacker Drive formerly, Senior Partner and Chief
Chicago, IL 60606 Operating Officer (retired, 2004) of
Miller-Valentine 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 171
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and 171
1/22/50 Finance, Northwestern University (since
333 W. Wacker Drive 1997); Director (since 2003), Chicago
Chicago, IL 60606 Board Options Exchange; formerly,
Director (2003-2006), 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
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), 171
9/9/56 Administrative Assistant Secretary and Associate
333 W. Wacker Drive Officer General Counsel, formerly, Vice
Chicago, IL 60606 President and Assistant General Counsel,
of Nuveen Investments, LLC; 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.;
Assistant Secretary of Symphony Asset
Management LLC (since 2003),
Tradewinds NWQ Global Investors, LLC and
Santa Barbara Asset Management, LLC;
(since 2006); Chartered Financial
Analyst.
87
Board Members
AND OFFICERS (continued)
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly 171
9/22/63 Vice President (since 2002); formerly,
333 W. Wacker Drive Assistant Vice President (since 2000) of
Chicago, IL 60606 Nuveen Investments, LLC; Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, 171
2/3/66 and Assistant Assistant Vice President (since 2000) of
333 W. Wacker Drive Secretary Nuveen Investments, LLC.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen 171
11/28/67 Investments, LLC and of Nuveen
333 W. Wacker Drive Investments, Inc. (since 1999); Vice
Chicago, IL 60606 President and Treasurer of Nuveen Asset
Management (since 2002) and of Nuveen
Investments Advisers Inc. (since 2002);
Assistant Treasurer of NWQ Investment
Management Company, LLC. (since 2002);
Vice President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc.
(since 2003); Treasurer of Symphony
Asset Management LLC (since 2003) and
Santa Barbara Asset Management, LLC
(since 2006); Assistant 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 171
8/24/61 Operations, Nuveen Investments, LLC
333 W. Wacker Drive (since January 2005); formerly,
Chicago, IL 60606 Director, Business Manager, Deutsche
Asset Management (2003-2004), 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 171
9/24/64 and Secretary Secretary and Assistant General Counsel
333 W. Wacker Drive (since 1998) formerly, Assistant Vice
Chicago, IL 60606 President (since 1998) of Nuveen
Investments, LLC; 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), 171
10/24/45 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments, LLC, Managing Director
Chicago, IL 60606 (2004) formerly, Vice President
(1998-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2005) of Nuveen
Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), 171
3/2/64 formerly, Vice President of Nuveen
333 W. Wacker Drive Investments; Managing Director
Chicago, IL 60606 (1997-2004) of Nuveen Advisory Corp. and
Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2001) of Nuveen
Asset Management; Vice President (since
2002) of Nuveen Investments Advisers
Inc.; Chartered Financial Analyst.
88
NUMBER OF PORTFOLIOS
NAME, BIRTHDATE POSITION(S) HELD YEAR FIRST ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
AND ADDRESS WITH THE FUNDS OR APPOINTED(4) DURING PAST 5 YEARS OVERSEEN BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds 171
5/31/54 and Controller Controller (since 1998) of Nuveen
333 W. Wacker Drive Investments, LLC; formerly, Vice
Chicago, IL 60606 President and Funds Controller
(1998-2004) of Nuveen Investments, Inc.;
Certified Public Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief 2003 Vice President and Assistant Secretary 171
2/24/70 Officer and (since 2006) formerly, Assistant Vice
333 West Wacker Drive Vice President President and Assistant General Counsel
Chicago, IL 60606 (since 2003) of Nuveen Investments, LLC;
Vice President (since 2006) and
Assistant Secretary (since 2003)
formerly, Assistant Vice President of
Nuveen Asset Management; previously,
Associate (2001-2003) at the law firm of
Vedder, Price, Kaufman & Kammholz.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen 171
3/22/63 Investments, LLC; Certified Public
333 W. Wacker Drive Accountant.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, 171
8/27/61 LLC (since 1999).
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and 171
7/27/51 and Assistant Assistant General Counsel of Nuveen
333 W. Wacker Drive Secretary Investments, LLC; formerly, Vice
Chicago, IL 60606 President and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
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 and Santa Barbara
Asset Management, 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.
89
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
90
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
91
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 a
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.
92
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.
F. APPROVAL
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.
93
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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.
94
Automatic Dividend
REINVESTMENT PLAN
NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS
These Funds are amending the terms and conditions of their Automatic Dividend
Reinvestment Plan (the "Plan") as further described below effective with the
close of business on February 1, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN
PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A
LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who
do not wish to continue as participants under the amended Plan may withdraw from
the Plan by notifying the Plan Agent prior to the effective date of the
amendments. Participants should refer to their Plan document for notification
instructions, or may simply call Nuveen at (800) 257-8787.
Fund shareholders who elect to participate in the Plan are able to have Fund
distributions consisting of income dividends, realized capital gains and returns
of capital automatically reinvested in additional Fund shares. Under the Plan's
existing terms, the Plan Agent purchases Fund shares in the open market if the
Fund's shares are trading at a discount to their net asset value on the payable
date for the distribution. If the Fund's shares are trading at or above their
net asset value on the payable date for the distribution, the Plan Agent
purchases newly-issued Fund shares directly from the Fund at a price equal to
the greater of the shares' net asset value or 95% of the shares' market value.
Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares
on the open market while shares are trading below net asset value, but the
Fund's shares subsequently trade at or above their net asset value before the
Plan Agent is able to complete its purchases, the Plan Agent may cease
open-market purchases and may invest the uninvested portion of the distribution
in newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value. This change will permit Plan
participants under these circumstances to reinvest Fund distributions at a lower
aggregate cost than is possible under the existing Plan.
95
Notes
96
Notes
97
Notes
98
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
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
99
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $154 billion in assets, Nuveen Investments offers access to a
number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in
value-style equities; Rittenhouse, a leader in growth-style equities; and
Symphony, a leading institutional manager of market-neutral alternative
investment portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, 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
Learn more o Fund details
about Nuveen Funds at o Daily financial news
WWW.NUVEEN.COM/ETF o Investor education
o Interactive planning tools
Logo: NUVEEN Investments
EAN-C-1006D
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 Municipal High Income Opportunity 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)
----------------------------------------------------------------------------------------------------------------------
October 31, 2006 $ 18,929 $ 0 $ 400 $ 700
----------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
----------------------------------------------------------------------------------------------------------------------
October 31, 2005 $ 17,462 $ 0 $ 456 $ 650
----------------------------------------------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------
October 31, 2006 $ 0 $ 2,200 $ 0
-----------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------
October 31, 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 FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-----------------------------------------------------------------------------------------------------------------------
October 31, 2006 $ 1,100 $ 2,200 $ 0 $ 3,300
October 31, 2005 $ 1,106 $ 2,200 $ 0 $ 3,306
"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
John Miller Nuveen Municipal High Income Opportunity 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
--------------------------------------------------------------------------------
John Miller Registered Investment Company 3 4.388 billion
Other Pooled Investment Vehicles 1 $37 million
Other Accounts 8 $1.2 million
* Assets are as of October 31, 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 October 31, 2006, the S&P/Investortools Municipal Bond index was
comprised of 48,513 securities with an aggregate current market value of $
923,532 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 serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's 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 October 31, 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.
---------------------------------------------------------------------------------------------------------------------
DOLLAR RANGE OF
DOLLAR EQUITY SECURITIES
RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS
BENEFICIALLY MANAGED BY NAM'S
NAME OF PORTFOLIO OWNED IN MUNICIPAL INVESTMENT
MANAGER FUND FUND TEAM
---------------------------------------------------------------------------------------------------------------------
John Miller Nuveen Municipal High Income Opportunity Fund $1 - $10,000 $10,001 - $50,000
---------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
John V. Miller, CFA, joined Nuveen's investment management team as a credit
analyst in 1996, with three prior years of experience in the municipal market
with C.W. Henderson & Assoc., a municipal bond manager for private accounts. He
has a BA in Economics and Political Science from Duke University, and an MA in
Economics from Northwestern University and an MBA with honors in Finance from
the University of Chicago. He has been responsible for analysis of high yield
credits in the utility, solid waste and energy related sectors. He is currently
a Vice President of Nuveen (since 2002). He manages investments for four
Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. 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 Municipal High Income Opportunity Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: January 5, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: January 5, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 5, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.