UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09455
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Nuveen New Jersey Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: April 30
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Date of reporting period: October 31, 2008
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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.
SEMI-ANNUAL REPORT | Nuveen Investments
October 31, 2008 | MUNICIPAL CLOSED-END FUNDS
Photo of: Small child
NUVEEN NEW JERSEY
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY
PREMIUM INCOME
MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA
INVESTMENT QUALITY
MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA
PREMIUM INCOME
MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVY
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
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Chairman's
LETTER TO SHAREHOLDERS
| Robert P. Bremner | Chairman of the Board
Dear Shareholders,
I'd like to use my initial letter to you to accomplish several things. First, I
want to report that after fourteen years of service on your Fund's Board,
including the last twelve as chairman, Tim Schwertfeger retired from the Board
in June. The Board has elected me to replace him as the chairman, the first time
this role has been filled by someone who is not an employee of Nuveen
Investments. Electing an independent chairman marks a significant milestone in
the management of your Fund, and it aligns us with what is now considered a
"best practice" in the fund industry. Further, it demonstrates the independence
with which your Board has always acted on your behalf.
Following Tim will not be easy. During my eleven previous years on the Nuveen
Fund Board, I found that Tim always set a very high standard by combining
insightful industry and market knowledge and sound, clear judgment. While the
Board will miss his wise counsel, I am certain we will retain the primary
commitment Tim shared with all of us - an unceasing dedication to creating and
retaining value for Nuveen Fund shareholders. This focus on value over time is a
touchstone that I and all the other Board members will continue to use when
making decisions on your behalf.
Second, I also want to report that we are very fortunate to welcome two new
Board members to our team. John Amboian, the current chairman and CEO of Nuveen
Investments, has replaced Tim as Nuveen's representative on the Board. John's
presence will allow the independent Board members to benefit not only from his
leadership role at Nuveen but also his broad understanding of the fund industry
and Nuveen's role within it. We also added Terry Toth as an independent
director. A former CEO of the Northern Trust Company's asset management group,
Terry will bring extensive experience in the fund industry to our deliberations.
Third, on behalf of the entire Board, I would like you to know that we are
closely monitoring the unprecedented market developments and their distressing
impact on the Funds. We believe that these Funds continue to be actively and
constructively managed for the long term and at the same time we are very aware
that these are trying times for our investors. We appreciate the patience you
have shown with the Board and with Nuveen Investments as they manage your
investment through this extremely difficult period.
Fourth, again on behalf of the entire Board, I would like to acknowledge the
effort the whole Nuveen organization is making to resolve the auction rate
preferred share situation in a satisfactory manner. As you know, we are actively
pursuing a number of possible solutions, all with the goal of providing
liquidity for preferred shareholders while preserving the potential benefits of
leverage for common shareholders. We appreciate the patience you have shown as
we've worked through the many difficulties involved.
Finally, I urge you to take the time to review the Portfolio Manager's Comments,
the Common Share Dividend and Share Price Information, and the Performance
Overview sections of this report. All of us are grateful that you have chosen
Nuveen Investments as a partner as you pursue your financial goals, and, on
behalf of myself and the other members of your Fund's Board, let me say we look
forward to continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
Robert P. Bremner
Chairman of the Board
December 23, 2008
Portfolio Manager's COMMENTS
Nuveen Investments Municipal Closed-End Funds | NQJ, NNJ, NXJ, NUJ,
NQP, NPY, NXM, NVY
Portfolio manager Cathryn Steeves discusses key investment strategies and the
six-month performance of the Nuveen New Jersey and Pennsylvania Funds. Cathryn,
who joined Nuveen in 1996, assumed portfolio management responsibility for these
eight Funds in 2006.
WHAT KEY STRATEGIES WERE USED TO MANAGE THE NUVEEN NEW JERSEY AND PENNSYLVANIA
FUNDS DURING THE SIX-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2008?
During this period, stress in the financial markets resulted in increased price
volatility for many securities, reduced liquidity and a general flight to
quality. In this turbulent environment, we took a defensive approach to managing
the Funds, focusing on managing duration(1) risk, preserving and enhancing
liquidity, as appropriate, and remaining invested for the long term.
As events unfolded, we carefully monitored the municipal bond market for
attractive purchase opportunities, using a fundamental approach to find
undervalued sectors and individual credits with the potential to perform well
over the long term. One area of focus in the New Jersey Funds was buying
high-quality bonds with longer maturities that could help to maintain and extend
the Funds' durations and had the potential to enhance yields and returns
overtime. In the Pennsylvania Funds, we purchased both higher and lower quality
health care bonds and higher coupon housing securities that were very
attractively priced.
To provide liquidity for purchases, we selectively sold holdings with shorter
durations. We also monitored the types of credits and bond structures that were
attractive to the retail market and took advantage of strong bids to sell such
bonds into solid retail demand. In addition, some of our new purchases were
funded by reinvesting the proceeds from called or matured bonds, especially in
the Pennsylvania Funds.
As a key dimension of risk management, we employed a disciplined approach to
duration positioning as an important component of our overall strategy. As part
of this approach, we used inverse floating rate securities(2) in all of the
Funds except NUJ, NVY and NXM during this period. Inverse floaters typically
provide the dual benefit of bringing the Funds' durations closer to our
strategic target and enhancing their income-generation capabilities. NNJ and NVY
also invested in certain types of
(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.
(2) An inverse floating rate security is a financial instrument designed to pay
long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market Association
Index or BMA). Inverse floaters, including those inverse floating rate
securities in which the Funds invested during this reporting period, are
further defined within the Notes to Financial Statements and Glossary of
Terms Used in This Report sections of this shareholder report.
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
derivative instruments in an effort to lengthen duration and help manage common
share net asset value (NAV) volatility while trying to minimize any negative
impact on income streams or common share dividends over the short term. As of
October 31, 2008, we continued to use inverse floaters in NQJ, NNJ, NXJ, NQP and
NPY, and the derivatives remained in place in NNJ and NVY.
HOW DID THE FUNDS PERFORM?
Individual results for the Nuveen New Jersey and Pennsylvania Funds, as well as
relevant index and peer group information, are presented in the accompanying
table.
Annualized Total Returns on Common Share Net Asset Value*
For periods ended 10/31/08
Six-Month 1-Year 5-Year 10-Year
New Jersey Funds
NQJ -12.43% -12.56% 1.55% 3.66%
NNJ -10.59% -10.28% 1.57% 3.92%
NXJ -13.62% -14.28% 1.32% N/A
NUJ -13.79% -14.38% 1.66% N/A
Pennsylvania Funds
NQP -13.60% -14.11% 0.58% 3.09%
NPY -15.21% -16.57% -0.04% 3.07%
NXM -14.66% -15.32% 0.93% N/A
NVY -12.52% -13.26% 1.39% N/A
Lipper Other States
Municipal Debt Funds
Average(3) -13 01% -13.59% 1.15% 3.31%
Barclays Capital
Municipal Bond Index(4) -4.70% - 3.30% 2.73% 4.14%
S&P National Municipal
Bond Index(5) -5.19% -4.15% 2.75% N/A
For the six months ended October 31, 2008, the cumulative returns on common
share NAV for NQJ, NNJ and NVY exceeded the average return for the Lipper Other
States Municipal Debt Funds Average, while the remaining five Funds lagged this
return. All of the Funds underperformed the Barclays Capital Municipal Bond
Index and Standard & Poor's (S&P) National Municipal Bond Index.
*Six-month returns are cumulative; returns for one-year, five-year and ten-year
are 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.
(3) The Lipper Other States Municipal Debt Funds Average is calculated using
the returns of all closed-end funds in this category for each period as
follows: 6 months, 46 funds; 1 year, 46 funds; 5 years, 46 funds; and 10
years, 18 funds. Fund and Lipper returns assume reinvestment of dividends.
Shareholders should note that the performance of the Lipper Other States
category represents the overall average of returns for funds from 10
different states with a wide variety of municipal market conditions, making
direct comparisons less meaningful.
(4) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an
unleveraged, unmanaged national index comprising a broad range of
investment-grade municipal bonds. Results for the Barclays Capital index do
not reflect any expenses.
(5) The Standard & Poor's (S&P) National Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the investment-grade U.S. municipal bond market.
5
Key management factors that influenced the Funds' returns during this period
included duration positioning, the use of inverse floaters, credit exposure and
sector allocations. In addition, a major factor affecting each Fund's
performance over this period was the use of leverage. The impact of leverage is
discussed in more detail on page seven.
Over the course of this reporting period, we saw the yield curve steepen, as
interest rates at the short end of the curve declined and longer-term rates
generally rose, especially during September and October. Given these changes in
the interest rate environment, bonds in the Barclays Capital Municipal Bond
Index with maturities of ten years or less generally outperformed the market as
a whole and bonds maturing in one to four years benefited the most. In general,
these shorter bonds outperformed credits with longer maturities, while bonds
having the longest maturities (twenty-two years and longer) posted the worst
returns. Among the New Jersey Funds, NQJ and NNJ had shorter durations than NXJ
and NUJ, which benefited their performances relative to the latter two Funds. In
NPY, which had the longest duration among the four Pennsylvania Funds, the
impact of duration positioning caused the performance of this Fund to trail that
of the other three.
As mentioned earlier, all of the Funds except NUJ, NXM and NVY used inverse
floaters during this period to help bring their durations closer to our
strategic target and enhance income-generation capabilities. In general, these
inverse floaters had a negative impact on performance. This resulted from the
fact that the inverse floaters effectively increased the Funds' exposure to
longer maturity bonds at a time when shorter maturities were in favor in the
market.
Credit exposure was also an important factor in performance during these past
six months. Because risk-averse investors generally sought higher quality
investments as disruptions in the financial markets deepened, bonds with higher
credit quality ratings typically performed very well. At the same time, bonds
rated BBB or below and non-rated bonds generally posted poor returns. As of
October 31, 2008, the New Jersey Funds had weightings of bonds rated BBB or
lower and non-rated bonds ranging from 13% to 22%, while the Pennsylvania Funds'
allocations totaled approximately 10% to 20%. While the exposure to lower-rated
credits had a negative impact on the Funds for this period, the overall higher
credit quality of NNJ and NQP was a relatively positive factor in these Funds'
six-month performances.
Sectors of the market that generally contributed positively to the Funds'
performances included general and limited tax obligation issues and resource
recovery credits. Pre-refunded bonds(6), which are usually backed by U.S.
Treasury securities, were one of the top performing segments of the market, due
primarily to their shorter effective maturities, higher credit quality, and
perceived safety. Among these Funds, NQP and NVY had the largest allocations of
pre-refunded bonds as of October 31, 2008, while NXM held the smallest
allocation.
(6) Pre-refundings, also known as advance 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.
6
In general, bonds that carried any credit risk, regardless of sector, posted
weak performance. Revenue bonds as a whole, and the industrial development and
housing sectors in particular, underperformed the general municipal market. The
performance of the New Jersey Funds was helped during this period by the fact
that they had underweighted the housing sector. Next to the industrial
development revenue sector, zero coupon bonds were among the worst performing
categories in the municipal market. The health care sector also performed
poorly, as did lower-rated bonds backed by the 1998 master tobacco settlement
agreement.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In addition to the factors mentioned above, one of the primary factors
negatively impacting the six-month returns of these Funds relative to those of
the unleveraged Barclays Capital Municipal Bond Index and S&P National Municipal
Bond Index was the Funds'use of financial leverage. While leverage offers
opportunities to generate additional income and total returns for common
shareholders, the benefits provided by leveraging are influenced by the price
movements of the bonds in each Fund's portfolio. During this period, as yields
on longer-term bonds rose and their prices correspondingly fell, declining
valuations had a negative effect on performance that was magnified by the use of
leverage. In addition, at various points during the six-month period, the Funds'
borrowing costs were relatively high, negatively impacting their total returns.
RECENT DEVELOPMENTS IN THE MARKET ENVIRONMENT
Beginning in October, the nation's financial institutions and financial
markets--including the municipal bond market--experienced significant turmoil.
Reductions in demand decreased valuations of municipal bonds across all credit
ratings, especially those with lower credit ratings, and this generally reduced
the Funds' net asset values. The municipal market is one in which dealer firms
make markets in bonds on a principal basis using their proprietary capital, and
during the recent market turmoil these firms'capital was severely constrained.
As a result, some firms were unwilling to commit their capital to purchase and
to serve as a dealer for municipal bonds. This reduction in dealer involvement
in the market was accompanied by significant net selling pressure by investors,
particularly with respect to lower-rated municipal bonds, as institutional
investors generally removed money from the municipal bond market, at least in
part because of their need to reduce the leveraging of their municipal
investments. This de-leveraging was in part driven by the overall reduction in
the amount of financing available for such leverage, the increased costs of such
leverage financing, and the need to reduce leverage levels that had recently
increased due to the decline in municipal bond prices.
7
Municipal bond prices were further negatively impacted by concerns that the need
for further de-leveraging and a supply overhang as a large amount of new issues
were postponed would cause selling pressure to persist for a period of time. In
addition to falling prices, these market conditions resulted in greater price
volatility of municipal bonds; wider credit spreads (i.e., lower quality bonds
fell in price more than higher quality bonds); significantly reduced liquidity
(i.e., the ability to sell bonds at a price close to their carrying value),
particularly for lower quality bonds; and a lack of price transparency (i.e.,
the ability to accurately determine the price at which a bond would likely
trade). Reduced liquidity was most pronounced in mid-October, and although
liquidity improved considerably over ensuing weeks, it may reoccur if financial
turmoil persists or worsens.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
As mentioned earlier, another factor that had an impact on the performance of
these Funds was their position in bonds backed by municipal bond insurers that
experienced downgrades in their credit ratings. During the period covered by
this report, ACA, AMBAC, CIFG, FGIC, MBIA, RAAI and SYNCORA (formerly XLCA)
experienced one or more rating reductions by at least one or more rating
agencies. Subsequent to the reporting period, AMBAC, MBIA and SYNCORA
experienced further rating reductions while AGCand FSA received their first
rating reduction by at least one rating agency. At the time this report was
prepared, at least one rating agency has placed each of these insurers except
AGC on "negative outlook" or "negative credit watch," which may presage one or
more rating reductions for such insurer or insurers in the future. As concern
increased about the balance sheets of these insurers, prices on bonds insured by
these companies - especially those bonds with weaker underlying credits -
declined, detracting from the Funds' performance. By the end of this period,
most insured bond's were being valued according to their fundamentals as if they
were uninsured. On the whole, the holdings of all of our Funds continued to be
well diversified not only between insured and uninsured bonds, but also within
the insured bond category. It is important to note that municipal bonds
historically have had a very low rate of default.
RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the auction rate preferred shares issued by these Funds
than there were offers to buy. This meant that these auctions "failed to clear"
and that many or all auction rate preferred shareholders who wanted to sell
their shares in these auctions were unable to do so. This decline in liquidity
in auction rate preferred shares did not lower the credit quality of these
shares, and auction rate preferred shareholders
8
unable to sell their shares received distributions at the "maximum rate"
applicable to failed auctions as calculated in accordance with the
pre-established terms of the auction rate preferred shares. At the time this
report was prepared, the Funds' managers could not predict when future auctions
might succeed in attracting sufficient buyers for the shares offered, if ever.
The Funds' managers are working diligently to refund the auction preferred
shares, and have made progress in these efforts, but at present there is no
assurance that these efforts will succeed. These developments generally do not
affect the management or investment policies of these Funds. However, one
implication of these auction failures for common shareholders is that the Funds'
cost of leverage will likely be higher, at least temporarily, than it otherwise
would have been had the auctions continued to be successful. As a result, the
Funds' future common share earnings may be lower than they otherwise would have
been.
On June 11, 2008, Nuveen announced the Fund Board's approval of plans to use
tender option bonds (TOBs), also known as floating rate securities, to refinance
a portion of the municipal Funds' outstanding auction rate preferred shares, for
which auctions have been failing for several months. This plan included an
initial phase of approximately $1 billion in forty-one Funds. As of October 31,
2008, none of the Funds included in this shareholder report had issued par
redemption notices for their auction rate preferred shares.
On August 7, 2008, four Nuveen municipal Funds (none of which are included in
this shareholder report) issued par redemption notices for all outstanding
shares of their auction rate preferred shares totaling $569.9 million. These
redemptions were achieved through the issuance of variable rate demand preferred
shares (VRDP) in conjunction with the proceeds from the creation of TOBs.
For current, up-to-date information, please visit the Nuveen CEF Auction Rate
Preferred Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
9
Common Share
Dividend and Share Price
INFORMATION
During the six-month period ended October 31, 2008, there was one dividend
increase in NQP, NPY, NXM and NVY, while the dividends of NQJ, NXJ and NUJ
remained stable throughout the reporting period. In NNJ, however, the cost of
leverage-related borrowing remained higher than in the other Funds. This
impacted the incremental income available for dividends and led to one dividend
cut in this Fund, effective October 2008.
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, 2008, all of
the Funds in this report except NPY had negative UNII balances for financial
statement purposes and positive UNII balances, based upon our best estimate, for
tax purposes. NPY had a positive UNII balance for financial statement purposes
and a positive UNII balance, based upon our best estimate, for tax purposes.
The Funds' Board of Directors/Trustees approved an open-market share repurchase
program on July 10, 2007, for NQP and NPY and on July 30, 2008, for NQJ, NNJ,
NXJ, NUJ, NXM and NVY under which each Fund may repurchase up to 10% of its
common shares. As of October 31, 2008, NQP and NPY had cumulatively repurchased
139,900 and 156,100 common shares, respectively, representing approximately 0.9%
and 1.0% of each Fund's' total common shares outstanding, respectively.
10
As of October 31, 2008, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying chart:
10/31/08 Six-Month
Discount Average Discount
NQJ -15.42% - 10.19%
NNJ -15.09% - 10.36%
NXJ -14.89% - 10.30%
NUJ -10.45% - 7.06%
NQP -15.17% - 12.12%
NPY -17.84% - 12.91%
NXM -10.63% - 9.40%
NVY -16.42% - 9.79%
11
NQJ
Performance
OVERVIEW
Nuveen New Jersey
Investment Quality
Municipal Fund, Inc.
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 32%
AA 40%
A 10%
BBB 11%
BB or Lower 1%
N/R 6%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.19
13.19
13.03
12.46
12.63
12.89
13.0601
12.79
12.62
12.94
13.382
13.59
13.33
13.67
13.68
13.7
12.85
12.78
12.59
13
12.65
12.61
12.99
12.89
12.99
12.97
13.13
13.1
13.248
13.24
13.36
13.25
13.37
13.08
12.94
12.8799
12.76
12.83
12.85
12.44
12.59
12.67
12.68
12.71
12.76
12.76
12.66
12.15
11.2
10.79
8.1
9.54
10.7101
10/31/08 10.31
FUND SNAPSHOT
------------------------------------
Common Share Price $10.31
------------------------------------
Common Share
Net Asset Value $12.19
------------------------------------
Premium/(Discount) to NAV -15.42%
------------------------------------
Market Yield 6.34%
------------------------------------
Taxable-Equivalent Yield(2) 9.41%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $249,796
------------------------------------
Average Effective
Maturity on Securities (Years) 15.95
------------------------------------
Leverage-Adjusted Duration 13.22
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -19.07% -12.43%
------------------------------------
1-Year -17.65% -12.56%
------------------------------------
5-Year -1.94% 1.55%
------------------------------------
10-Year 0.61% 3.66%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 22.6%
------------------------------------
Transportation 16.8%
------------------------------------
U.S. Guaranteed 14.2%
------------------------------------
Health Care 14.0%
------------------------------------
Education and Civic
Organizations 10.9%
------------------------------------
Water and Sewer 5.6%
------------------------------------
Tax Obligation/General 4.8%
------------------------------------
Other 11.1%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0299 per share.
12
NNJ
Performance
OVERVIEW
Nuveen New Jersey
Premium Income
Municipal Fund, Inc.
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1),(2)
AAA/U.S. Guaranteed 33%
AA 42%
A 12%
BBB 9%
BB or Lower 1%
N/R 3%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(4)
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
May 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0515
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.6
13.52
13.27
12.95
12.92
13.196
13.35
13.34
13.05
13.3
13.85
14.08
13.71
14.1
13.96
14.05
13.3
13.14
13.12
13.21
12.97
13.09
13.14
13.3
13.28
13.34
13.48
13.48
13.6
13.58
13.64
13.61
13.597
13.21
13.01
13.01
13
13.07
12.95
12.85
12.78
12.977
12.97
12.8
13.14
13.12
12.85
12.86
11.75
11.15
8.24
9.78
10.85
10/31/08 10.86
FUND SNAPSHOT
------------------------------------
Common Share Price $10.86
------------------------------------
Common Share
Net Asset Value $12.79
------------------------------------
Premium/(Discount) to NAV -15.09%
------------------------------------
Market Yield 5.69%
------------------------------------
Taxable-Equivalent Yield(3) 8.44%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $154,101
------------------------------------
Average Effective
Maturity on Securities (Years) 14.35
------------------------------------
Leverage-Adjusted Duration 12.69
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -17.31% -10.59%
------------------------------------
1-Year -15.32% -10.28%
------------------------------------
5-Year -1.47% 1.57%
------------------------------------
10-Year 1.82% 3.92%
------------------------------------
INDUSTRIES
(as a % of total investments)(2)
------------------------------------
Tax Obligation/Limited 27.0%
------------------------------------
U.S. Guaranteed 17.2%
------------------------------------
Health Care 12.7%
------------------------------------
Transportation 12.3%
------------------------------------
Education and Civic
Organizations 9.8%
------------------------------------
Water and Sewer 9.0%
------------------------------------
Tax Obligation/General 6.5%
------------------------------------
Other 5.5%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Excluding derivative transactions.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders capital gains and net ordinary income
distributions in December 2007 of $0.0413 and $0.0008 per share,
respectively.
13
NXJ
Performance
OVERVIEW
Nuveen New Jersey
Dividend Advantage
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 25%
AA 37%
A 16%
BBB 16%
BB or Lower 2%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.52
13.41
13.08
12.7
12.88
12.95
13.15
12.92
12.89
12.93
13.64
13.7
13.46
13.74
13.5
13.7
12.9
12.9
12.6
12.98
12.62
12.39
12.798
12.96
13.02
13
13
13.2
13.36
13.25
13.27
13.37
13.3
12.94
12.85
12.65
12.65
12.63
12.62
12.5
12.58
12.55
12.55
12.44
12.68
12.56
12.48
11.95
11.03
10.618
8.1
9.74
10.3
10/31/08 10.23
FUND SNAPSHOT
------------------------------------
Common Share Price $10.23
------------------------------------
Common Share
Net Asset Value $12.02
------------------------------------
Premium/(Discount) to NAV -14.89%
------------------------------------
Market Yield 6.45%
------------------------------------
Taxable-Equivalent Yield(2) 9.57%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $79,085
------------------------------------
Average Effective
Maturity on Securities (Years) 16.01
------------------------------------
Leverage-Adjusted Duration 14.35
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -19.78% -13.62%
------------------------------------
1-Year -20.26% -14.28%
------------------------------------
5-Year -1.96% 1.32%
------------------------------------
Since
Inception 0.68% 3.38%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Tax Obligation/Limited 23.2%
------------------------------------
U.S. Guaranteed 16.0%
------------------------------------
Health Care 14.4%
------------------------------------
Water and Sewer 13.3%
------------------------------------
Transportation 12.2%
------------------------------------
Education and Civic
Organizations 12.0%
------------------------------------
Other 8.9%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0269 per share.
14
NUJ
Performance
OVERVIEW
Nuveen New Jersey
Dividend Advantage
Municipal Fund 2
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 30%
AA 33%
A 19%
BBB 12%
BB or Lower 4%
N/R 2%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0575
Oct 0.0575
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.98
13.94
13.66
13.45
13.3499
13.58
13.81
13.49
13.34
13.26
13.95
14.2
13.98
14.12
14.4599
14.24
13.4999
13.27
13.05
13.2
12.99
12.99
13.34
13.45
13.43
13.49
13.51
13.6
13.6
13.7
13.96
13.87
14.35
13.5
13.4
13.4
13.059
13.42
13.26
13.01
13.04
12.98
13.15
13.25
13.57
13.55
13.18
12.85
11.9
11.2
8.25
9.78
10.8
10/31/08 10.8
FUND SNAPSHOT
------------------------------------
Common Share Price $10.80
------------------------------------
Common Share
Net Asset Value $12.06
------------------------------------
Premium/(Discount) to NAV -10.45%
------------------------------------
Market Yield 6.39%
------------------------------------
Taxable-Equivalent Yield(2) 9.48%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $54,539
------------------------------------
Average Effective
Maturity on Securities (Years) 15.97
------------------------------------
Leverage-Adjusted Duration 13.96
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -18.32% -13.79%
------------------------------------
1-Year -18.36% -14.38%
------------------------------------
5-Year -0.68% 1.66%
------------------------------------
Since
Inception 0.98% 3.37%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Health Care 19.4%
------------------------------------
Tax Obligation/Limited 19.0%
------------------------------------
U.S. Guaranteed 18.4%
------------------------------------
Transportation 15.4%
------------------------------------
Education and Civic
Organizations 9.9%
------------------------------------
Long-Term Care 5.9%
------------------------------------
Other 12.0%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.1515 per share.
15
NQP
Performance
OVERVIEW
Nuveen Pennsylvania
Investment Quality
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1)
AAA/U.S. Guaranteed 40%
AA 42%
A 8%
BBB 9%
N/R 1%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
May 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.057
Oct 0.057
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.39
13.46
12.96
12.65
12.64
12.74
13.01
12.95
12.64
12.93
13.54
13.72
13.42
13.67
13.57
13.52
12.92
12.73
12.39
12.88
12.57
12.38
12.76
12.9
12.92
13.23
13.09
13.154
13.11
13.16
13.19
13.05
12.93
12.7
12.57
12.57
12.63
12.59
12.4401
12.25
12.25
12.25
12.19
12.105
12.23
12.35
12.24
11.58
10.67
10.25
7.66
9.03
10.29
10/31/08 10.286
FUND SNAPSHOT
------------------------------------
Common Share Price $10.29
------------------------------------
Common Share
Net Asset Value $12.13
------------------------------------
Premium/(Discount) to NAV -15.17%
------------------------------------
Market Yield 6.65%
------------------------------------
Taxable-Equivalent Yield(2) 9.53%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $196,081
------------------------------------
Average Effective
Maturity on Securities (Years) 15.40
------------------------------------
Leverage-Adjusted Duration 15.13
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -19.21% -13.60%
------------------------------------
1-Year -19.51% -14.11%
------------------------------------
5-Year -1.96% 0.58%
------------------------------------
10-Year 0.50% 3.09%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 21.4%
------------------------------------
Education and Civic
Organizations 19.2%
------------------------------------
Tax Obligation/General 16.3%
------------------------------------
Health Care 8.2%
------------------------------------
Transportation 7.8%
------------------------------------
Tax Obligation/Limited 6.0%
------------------------------------
Housing/Single Family 5.6%
------------------------------------
Water and Sewer 4.1%
------------------------------------
Other 11.4%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16
NPY
Performance
OVERVIEW
Nuveen Pennsylvania
Premium Income
Municipal Fund 2
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments(1)
AAA/U.S. Guaranteed 34%
AA 39%
A 9%
BBB 11%
BB or Lower 3%
N/R 4%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.0495
Dec 0.0495
Jan 0.0495
Feb 0.0495
Mar 0.0495
Apr 0.0495
May 0.0495
Jun 0.0495
Jul 0.0495
Aug 0.0495
Sep 0.052
Oct 0.052
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 12.63
12.64
12.34
11.94
12.13
12.31
12.41
12.21
12.07
12.34
12.77
12.93
12.71
12.84
12.85
12.87
12.23
12.23
11.83
12.1
11.92
11.8
12.05
12.25
12.15
12.35
12.35
12.26
12.28
12.4
12.36
12.32
12.37
12.13
11.83
11.8999
12.06
11.93
11.71
11.48
11.53
11.53
11.53
11.537
11.59
11.73
11.52
11.26
10.14
9.89
7.2
8.36
9.39
10/31/08 9.35
FUND SNAPSHOT
------------------------------------
Common Share Price $9.35
------------------------------------
Common Share
Net Asset Value $11.38
------------------------------------
Premium/(Discount) to NAV -17.84%
------------------------------------
Market Yield 6.67%
------------------------------------
Taxable-Equivalent Yield(2) 9.56%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $178,257
------------------------------------
Average Effective
Maturity on Securities (Years) 16.28
------------------------------------
Leverage-Adjusted Duration 15.38
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -21.86% -15.21%
------------------------------------
1-Year -21.85% -16.57%
------------------------------------
5-Year -3.28% -0.04%
------------------------------------
10-Year 1.96% 3.07%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
U.S. Guaranteed 15.4%
------------------------------------
Education and Civic
Organizations 15.1%
------------------------------------
Transportation 12.8%
------------------------------------
Tax Obligation/General 10.6%
------------------------------------
Utilities 8.9%
------------------------------------
Health Care 8.7%
------------------------------------
Water and Sewer 7.8%
------------------------------------
Tax Obligation/Limited 5.8%
------------------------------------
Other 14.9%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0439 per share.
17
NXM
Performance
OVERVIEW
Nuveen Pennsylvania
Dividend Advantage
Municipal Fund
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments(1)
AAA/U.S. Guaranteed 26%
AA 41%
A 13%
BBB 10%
BB or Lower 5%
N/R 5%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Common Share(3)
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.057
Apr 0.057
May 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.0585
Oct 0.0585
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.52
13.5006
13.43
12.93
12.95
13.1399
13.45
13.03
12.92
13.16
13.76
13.92
13.8
13.77
13.82
13.72
13.33
13.59
13.0101
13.07
12.82
13
13.3
13.2
13.27
13.63
13.79
13.7
13.96
13.85
13.65
13.58
13.48
13.1
13.06
12.99
13.1
12.94
13.24
13.05
12.78
12.67
12.51
12.51
12.67
12.84
12.61
11.84
11.476
11.56
9.43
9.63
10.69
10/31/08 10.76
FUND SNAPSHOT
------------------------------------
Common Share Price $10.76
------------------------------------
Common Share
Net Asset Value $12.04
------------------------------------
Premium/(Discount) to NAV -10.63%
------------------------------------
Market Yield 6.52%
------------------------------------
Taxable-Equivalent Yield(2) 9.34%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $40,117
------------------------------------
Average Effective
Maturity on Securities (Years) 17.15
------------------------------------
Leverage-Adjusted Duration 14.15
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -18.70% -14.66%
------------------------------------
1-Year -16.34% -15.32%
------------------------------------
5-Year -0.77% 0.93%
------------------------------------
Since
Inception 1.92% 4.00%
------------------------------------
INDUSTRIES
(as a % of total investments)
------------------------------------
Education and Civic
Organizations 18.1%
------------------------------------
Health Care 14.3%
------------------------------------
Long-Term Care 11.5%
------------------------------------
U.S. Guaranteed 10.7%
------------------------------------
Tax Obligation/Limited 9.5%
------------------------------------
Tax Obligation/General 9.0%
------------------------------------
Transportation 7.8%
------------------------------------
Housing/Single Family 5.1%
------------------------------------
Other 14.0%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(3) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0516 per share.
18
NVY
Performance
OVERVIEW
Nuveen Pennsylvania
Dividend Advantage
Municipal Fund 2
as of October 31, 2008
Pie Chart:
Credit Quality (as a % of total investments)(1),(2)
AAA/U.S. Guaranteed 28%
AA 46%
A 9%
BBB 8%
BB or Lower 4%
N/R 5%
Bar Chart:
2007-2008 Monthly Tax-Free Dividends Per Share(4)
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
May 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0585
Oct 0.0585
Line Chart:
Common Share Price Performance -- Weekly Closing Price
11/01/07 13.6
13.58
13.23
13.18
13.15
13.32
13.5001
13.06
13.29
13.18
13.81
14.02
14.22
14.22
14.64
14.4
13.92
14
13.2
13.7
13.17
13.16
13.42
13.68
13.48
13.52
13.64
13.51
13.82
13.85
13.58
13.59
13.58
13.04
12.82
12.78
13.06
12.71
12.69
12.78
12.76
12.56
12.51
12.63
12.7
12.82
12.86
11.85
11.05
11.139
7.8
9.73
10.17
10/31/08 10.33
FUND SNAPSHOT
------------------------------------
Common Share Price $10.33
------------------------------------
Common Share
Net Asset Value $12.36
------------------------------------
Premium/(Discount) to NAV -16.42%
------------------------------------
Market Yield 6.80%
------------------------------------
Taxable-Equivalent Yield(3) 9.74%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $46,056
------------------------------------
Average Effective
Maturity on Securities (Years) 14.37
------------------------------------
Leverage-Adjusted Duration 12.68
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
6-Month
(Cumulative) -20.67% -12.52%
------------------------------------
1-Year -19.85% -13.26%
------------------------------------
5-Year -1.33% 1.39%
------------------------------------
Since
Inception 0.28% 3.53%
------------------------------------
INDUSTRIES
(as a % of total investments)(2)
------------------------------------
U.S. Guaranteed 21.1%
------------------------------------
Tax Obligation/Limited 15.8%
------------------------------------
Tax Obligation/General 13.9%
------------------------------------
Education and Civic
Organizations 12.3%
------------------------------------
Health Care 9.6%
------------------------------------
Water and Sewer 5.8%
------------------------------------
Long-Term Care 4.4%
------------------------------------
Industrials 4.1%
------------------------------------
Other 13.0%
------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA, MBIA, RAAI and
SYNCORA as of October 31, 2008. Please see the Portfolio Manager's
Commentary for an expanded discussion of the affect on the Fund of changes
to the ratings of certain bonds in the portfolio resulting from changes to
the ratings of the underlying insurers both during the period and after
period end.
(2) Excluding derivative transactions.
(3) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
(4) The Fund paid shareholders a capital gains distribution in December 2007 of
$0.0487 per share.
19
NQJ
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 513,720
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 436,625
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 950,345
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.1% (2.0% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2007-1A:
4,300 4.750%, 6/01/34 6/17 at 100.00 BBB 2,367,666
10,000 5.000%, 6/01/41 6/17 at 100.00 BBB 5,404,000
------------------------------------------------------------------------------------------------------------------------------------
14,300 Total Consumer Staples 7,771,666
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.1% (10.9% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AA 981,540
The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 1,452,840
Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 417,755
Fairleigh Dickinson University, Series 2004C,
5.500%, 7/01/23
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 841,920
Georgian Court University, Series 2007D, 5.000%, 7/01/27
New Jersey Educational Facilities Authority, Revenue Bonds,
Kean University, Series 2007D:
3,555 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 3,242,196
2,295 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 2,012,371
120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 114,266
Montclair State University, Series 2004L, 5.125%, 7/01/22 -
MBIA Insured
1,225 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 A2 1,227,671
Montclair State University, Series 2005F, 5.000%, 7/01/16 -
FGIC Insured
2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aa3 2,490,812
Montclair State University, Series 2006A, 5.000%, 7/01/36 -
AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2001G:
1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AA 1,003,130
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AA 1,943,074
New Jersey Educational Facilities Authority, Revenue Bonds, New
Jersey Institute of Technology, Series 2004B:
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AA 1,265,897
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AA 2,435,453
185 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AA 159,372
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A- 1,508,111
Ramapo College, Series 2004H, 5.000%, 7/01/16 -
FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A3 562,573
Rider University, Series 2004A, 5.500%, 7/01/23 -
RAAI Insured
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 510 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 A3 $ 396,918
Rider University, Series 2007C, 5.000%, 7/01/37 -
RAAI Insured
1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 1,350,249
William Paterson University, Series 2004A, 5.125%, 7/01/21 -
FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 A3 998,823
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
2,115 New Jersey Higher Education Assistance Authority, 12/08 at 101.00 Aaa 2,117,030
Student Loan Revenue Bonds, New Jersey Class Loan
Program, Series 1997A, 5.800%, 6/01/16 - MBIA Insured
(Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 Aaa 2,010,380
Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17 -
MBIA Insured (Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student 6/18 at 100.00 AAA 1,829,460
Loan Revenue Bonds, Series 2008A, 6.125%, 6/01/30 -
AGC Insured (Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 3,559,729
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart,
Series 2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AA 1,816,494
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AA 1,330,777
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AA 2,010,372
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AA 3,659,760
------------------------------------------------------------------------------------------------------------------------------------
46,225 Total Education and Civic Organizations 42,738,973
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.6% (1.0% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 3,999,100
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.9% (14.0% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey,
Revenue Bonds, Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 153,248
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 820,210
1,920 New Jersey Health Care Facilities Finance Authority, 7/18 at 100.00 A+ 1,619,251
Revenue Bonds, AHS Hospital Corporation, Series 2008A,
5.000%, 7/01/27
5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AA 5,002,960
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical
Center, Series 2001, 5.000%, 8/01/41 - AMBAC Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/18 at 100.00 Baa2 1,555,100
New Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,750 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 A+ 2,876,138
Revenue Bonds, Atlanticare Regional Medical Center,
Series 2007, 5.000%, 7/01/37
2,840 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa1 2,199,892
Revenue Bonds, Capital Health System Obligated Group,
Series 2003A, 5.375%, 7/01/33
1,265 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aaa 1,118,222
Revenue Bonds, CentraState Medical Center, Series 2006A,
5.000%, 7/01/30 - AGC Insured
400 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 307,576
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
650 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 504,270
Revenue Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
615 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 494,343
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
21
NQJ
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 $ 2,814,810
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.500%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 2,737,000
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 3,621,695
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 1,846,500
1,600 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 BBB+ 1,139,952
Revenue Bonds, RWJ Health Care Corporation, Series 2005B,
5.000%, 7/01/35 - RAAI Insured
1,885 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 Baa2 1,388,925
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
2,850 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 BBB+ 2,322,095
Revenue Bonds, Shore Memorial Health System,
Series 2003, 5.000%, 7/01/23 - RAAI Insured
5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AA 3,928,226
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 1,911,525
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
2,160 5.000%, 7/01/36 7/16 at 100.00 A3 1,699,121
1,965 5.000%, 7/01/46 7/16 at 100.00 A3 1,475,892
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa2 1,978,460
Revenue Bonds, St. Peter's University Hospital,
Series 2000A, 6.875%, 7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 BBB+ 2,326,766
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
2,605 New Jersey Health Care Facilities Financing Authority, 1/09 at 101.00 A2 2,232,251
Revenue Refunding Bonds, St. Barnabas Healthcare
System - West Hudson Hospital Obligated Group,
Series 1998A, 5.000%, 7/01/23 - MBIA Insured
3,600 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 3,241,044
Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 -
AGC Insured
3,700 Newark, New Jersey, GNMA Collateralized Healthcare 6/12 at 102.00 Aaa 3,463,015
Facility Revenue Bonds, New Community Urban Renewal
Corporation, Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
66,580 Total Health Care 54,778,487
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
500 Long Branch Housing Finance Corporation New Jersey, 4/09 at 100.00 N/R 501,775
Housing Revenue Bonds, Washington Manor Associates Ltd.
Section 8 Assisted Elderly Project, Series 1980,
10.000%, 10/01/11
2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,531,475
Housing Revenue Bonds, Fairview Apartments Project,
Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,243 Total Housing/Multifamily 3,033,250
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.6% (2.3% OF TOTAL INVESTMENTS)
2,545 New Jersey Housing and Mortgage Finance Agency, 4/09 at 100.75 Aaa 2,257,542
Home Buyer Program Revenue Bonds, Series 1997U,
5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax)
2,085 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 Aaa 2,085,334
Home Buyer Program Revenue Bonds, Series 2000CC,
5.875%, 10/01/31 - MBIA Insured (Alternative Minimum Tax)
350 New Jersey Housing and Mortgage Finance Agency, 4/17 at 100.00 AA 238,511
Single Family Housing Revenue Bonds, Series 2007T,
4.700%, 10/01/37 (Alternative Minimum Tax)
2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,249,576
Securities Home Mortgage Revenue Bonds, Series 2001A,
5.200%, 12/01/33
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
$ 2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA $ 2,147,191
Securities Home Mortgage Revenue Bonds, Series 2001B,
5.300%, 12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,070 Total Housing/Single Family 8,978,154
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
980 Gloucester County Improvement Authority, New Jersey, No Opt. Call BBB 983,763
Solid Waste Resource Recovery Revenue Refunding Bonds,
Waste Management Inc. Project, Series 1999B,
6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9% (1.8% OF TOTAL INVESTMENTS)
1,870 Burlington County Bridge Commission, New Jersey, 1/18 at 100.00 N/R 1,266,084
Economic Development Revenue Bonds, The Evergreens
Project, Series 2007, 5.625%, 1/01/38
1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 955,395
Revenue Bonds, Winchester Gardens at Wards Homestead,
Series 2004A, 5.750%, 11/01/24
2,800 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa 2,557,296
Collateralized Mortgage Revenue Bonds, Victoria Health
Corporation, Series 2001A, 5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue 6/11 at 102.00 A- 598,356
Bonds, Masonic Charity Foundation of New Jersey,
Series 2001, 5.875%, 6/01/18
1,100 New Jersey Economic Development Authority, Revenue 6/13 at 102.00 A- 945,824
Bonds, Masonic Charity Foundation of New Jersey,
Series 2002, 5.250%, 6/01/32
1,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 BBB+ 850,110
Revenue Bonds, House of the Good Shepherd Obligated
Group, Series 2001, 5.100%, 7/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
8,490 Total Long-Term Care 7,173,065
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.6% (4.8% OF TOTAL INVESTMENTS)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AA 1,699,881
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AA 1,614,031
4,300 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AA 4,232,275
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,500 Middletown Township Board of Education, Monmouth 8/10 at 100.00 AAA 1,431,375
County, New Jersey, Refunding School Bonds, Series 2001,
5.000%, 8/01/27 - FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,336,050
6.000%, 2/15/11
915 Ocean City Board of Education, Cape May County, 4/16 at 100.00 Aa2 928,725
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 4/01/20 - MBIA Insured
West Deptford Township, New Jersey, General Obligation
Bonds, Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aa3 1,749,218
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aa3 1,871,192
------------------------------------------------------------------------------------------------------------------------------------
18,595 Total Tax Obligation/General 18,862,747
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.4% (22.6% OF TOTAL INVESTMENTS)
1,775 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 1,793,939
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
1,965 Essex County Improvement Authority, New Jersey, No Opt. Call Aa3 1,992,314
Project Consolidation Revenue Bonds, Series 2007,
5.250%, 12/15/22 - AMBAC Insured
2,650 Garden State Preservation Trust, New Jersey, No Opt. Call AAA 2,778,287
Open Space and Farmland Preservation Bonds,
Series 2005C, 5.125%, 11/01/18 - FSA Insured
Gloucester County Improvement Authority, New Jersey,
Lease Revenue Bonds, Series 2005A:
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AA+ 1,007,820
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AA+ 1,427,242
23
NQJ
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
$ 1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AA $ 1,079,122
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA 2,340,170
1,445 Lower Township Municipal Utilities Authority, Cape No Opt. Call N/R 1,445,390
May County, New Jersey, Revenue Bonds, Series 2003D,
5.000%, 12/01/16 - FGIC Insured
Middlesex County Improvement Authority, New Jersey,
County Guaranteed Open Space Trust Fund
Revenue Bonds, Series 2003:
1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,046,090
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,069,280
5,700 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 5,448,744
Series 2007A, 5.000%, 6/15/26
New Jersey Economic Development Authority, Cigarette
Tax Revenue Bonds, Series 2004:
1,965 5.500%, 6/15/24 6/12 at 100.00 BBB 1,565,240
4,000 5.750%, 6/15/34 6/14 at 100.00 BBB 3,002,160
4,675 New Jersey Economic Development Authority, Lease Revenue 3/15 at 100.00 AAA 4,597,535
Bonds, Liberty State Park Project, Series 2005C,
5.000%, 3/01/27 - FSA Insured
5,000 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AA 5,264,600
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue
Bonds, Newark Downtown District Management
Corporation Project, Series 2007:
205 5.125%, 6/15/27 6/17 at 100.00 Baa3 158,588
345 5.125%, 6/15/37 6/17 at 100.00 Baa3 245,595
New Jersey Economic Development Authority, School
Facilities Construction Financing Program Bonds, Series 2007U:
1,965 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA 1,786,716
3,930 5.000%, 9/01/37 9/17 at 100.00 AA- 3,573,431
1,925 New Jersey Educational Facilities Authority, Revenue No Opt. Call AAA 2,049,182
Bonds, Higher Education Capital Improvement Fund,
Series 2005A, 5.000%, 9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,210,175
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
2,885 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA 2,883,038
4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA 4,229,933
850 New Jersey Health Care Facilities Financing Authority, 10/18 at 100.00 AA- 738,608
State Contract Bonds, Hospital Asset Transformation
Program, Series 2008A, 5.250%, 10/01/38
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 A2 3,353,755
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 1,095,952
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 1,912,825
4,200 New Jersey Transportation Trust Fund Authority, No Opt. Call AA 4,507,398
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 3,902,176
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 4,384,452
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
13,755 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA 4,178,219
10,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 2,372,400
15,310 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 3,184,633
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,500 New Jersey Transportation Trust Fund Authority, 12/17 at 100.00 AA $ 2,374,075
Transportation System Bonds, Series 2007A,
5.000%, 12/15/26 - AMBAC Insured
1,625 Passaic County Improvement Authority, New Jersey, 5/15 at 100.00 Aa3 1,468,269
Lease Revenue Bonds, Preakness Healthcare Center
Project, Series 2005, 5.000%, 5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ 965,894
Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
120,545 Total Tax Obligation/Limited 88,433,247
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.3% (16.8% OF TOTAL INVESTMENTS)
2,250 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AA 2,145,645
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AA 1,922,640
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA 3,869,897
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA 1,425,990
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,554,110
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and 1/12 at 100.00 AAA 2,853,292
New Jersey, Revenue Refunding Bonds, Port District
Project, Series 2001A, 5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue 11/08 at 100.00 CCC+ 1,263,960
Bonds, American Airlines Inc., Series 1991,
7.100%, 11/01/31 (Alternative Minimum Tax)
160 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AA 181,818
6.500%, 1/01/16 - MBIA Insured
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA 9,387,614
5.000%, 1/01/19 - FGIC Insured
1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,252,489
5.250%, 1/01/29 - FSA Insured
7,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AA- 6,675,480
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - SYNCORA GTY Insured
1,000 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 747,720
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 8.256%, 8/15/32 - FSA Insured (IF)
2,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 1,851,180
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, One Hundred Twenty-Fifth Series 2002:
2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,138,549
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 4,699,600
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AA 3,478,720
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/08 at 101.00 AA 5,872,638
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/08 at 100.00 AA 10,501,543
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 1,799,920
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
71,700 Total Transportation 65,622,805
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.3% (14.2% OF TOTAL INVESTMENTS) (4)
2,500 Bergen County Improvement Authority, New Jersey, 9/12 at 101.00 N/R (4) 2,749,050
Revenue Bonds, Yeshiva Ktana of Passaic Project,
Series 2002, 6.000%, 9/15/27 (Pre-refunded 9/01/12)
3,275 Delaware River and Bay Authority, Delaware and 1/10 at 101.00 AA (4) 3,440,584
New Jersey, Revenue Bonds, Series 2000A,
5.750%, 1/01/29 (Pre-refunded 1/01/10) -
AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue 7/13 at 100.00 A- (4) 1,628,520
Bonds, Kean University, Series 2003D, 5.250%, 7/01/20
(Pre-refunded 7/01/13) - FGIC Insured
25
NQJ
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,925 New Jersey Educational Facilities Authority, Revenue 7/16 at 100.00 AA (4) $ 2,076,632
Bonds, Kean University, Series 2005B, 5.000%, 7/01/30
(Pre-refunded 7/01/16) - MBIA Insured
1,380 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA (4) 1,494,664
Bonds, Montclair State University, Series 2004L,
5.125%, 7/01/22 (Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue
Bonds, Montclair State University, Series 2005F:
2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 3,071,360
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,573,398
2,000 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 AA (4) 2,134,600
Bonds, New Jersey City University, Series 2002A,
5.000%, 7/01/32 (Pre-refunded 7/01/12) - AMBAC Insured
1,300 New Jersey Educational Facilities Authority, Revenue 7/13 at 100.00 A+ (4) 1,404,403
Bonds, Rowan University, Series 2003I, 5.125%, 7/01/21
(Pre-refunded 7/01/13) - FGIC Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Rowan University, Series 2004C:
1,195 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AA (4) 1,286,680
1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AA (4) 2,018,850
7,860 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A3 (4) 8,571,643
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
1,690 New Jersey Health Care Facilities Financing Authority, No Opt. Call A3 (4) 1,757,989
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured (ETM)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 195,843
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA (4) 64,293
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,795,505
1,250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AA (4) 1,354,050
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21
(Pre-refunded 1/01/14) - MBIA Insured
7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 7,515,599
Obligation Bonds, Series 2000A, 5.500%, 10/01/34
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2002:
1,180 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,258,482
3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,288,030
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,050 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,208,295
2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,870,385
------------------------------------------------------------------------------------------------------------------------------------
52,145 Total U.S. Guaranteed 55,758,855
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.1% (2.6% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, 12/08 at 100.00 Baa3 3,505,180
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991A, 7.500%, 12/01/10
(Alternative Minimum Tax)
250 Camden County Pollution Control Financing Authority, 12/08 at 100.00 Baa3 250,488
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, 12/13 at 100.00 AA+ 2,154,380
Solid Waste Revenue Bonds, Regional Sludge Project,
Series 2003, 5.000%, 12/15/14 - FGIC Insured
2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 1,922,100
New Jersey, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31
(Alternative Minimum Tax)
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,000 Union County Utilities Authority, New Jersey, Solid Waste 12/08 at 101.00 AA $ 2,468,880
Facility Senior Lien Revenue Bonds, Ogden Martin Systems
of Union Inc., Series 1998A, 5.000%, 6/01/23 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
11,305 Total Utilities 10,301,028
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.8% (5.6% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, 1/09 at 102.00 AA 2,587,110
New Jersey, Sewer Revenue Bonds, Series 2001A-2,
5.200%, 7/15/21 - FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County,
New Jersey, Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 N/R 1,748,653
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 N/R 1,836,560
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 N/R 989,900
7,500 New Jersey Economic Development Authority, 11/08 at 100.00 N/R 7,511,174
Water Facilities Revenue Bonds, American Water
Company, Series 1996, 6.000%, 5/01/36 - FGIC Insured
(Alternative Minimum Tax)
North Hudson Sewerage Authority, New Jersey, Sewerage
Revenue Refunding Bonds, Series 2002A:
3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 N/R 3,113,520
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 N/R 3,034,320
1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,266,338
Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 22,087,575
------------------------------------------------------------------------------------------------------------------------------------
$ 453,003 Total Investments (cost $432,751,083) - 156.7% 391,473,060
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 8.2% 20,322,871
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (64.9)% (5) (162,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $249,795,931
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 41.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
27
NNJ
Nuveen New Jersey Premium Income Municipal Fund, Inc.
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.2% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 308,232
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 262,608
------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 570,840
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.8% (1.8% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A:
2,520 4.750%, 6/01/34 6/17 at 100.00 BBB 1,387,562
5,300 5.000%, 6/01/41 6/17 at 100.00 BBB 2,864,120
------------------------------------------------------------------------------------------------------------------------------------
7,820 Total Consumer Staples 4,251,682
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.0% (9.8% OF TOTAL INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue 6/15 at 100.00 AA 1,104,233
Bonds, The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 -
AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue 7/13 at 100.00 N/R 363,210
Bonds, Fairleigh Dickinson University, Series 2002D,
5.250%, 7/01/32 - ACA Insured
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 250,653
Fairleigh Dickinson University, Series 2004C,
5.500%, 7/01/23
New Jersey Educational Facilities Authority, Revenue
Bonds, Kean University, Series 2007D:
2,090 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 1,906,101
3,350 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 2,937,448
100 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA 98,541
Bonds, Montclair State University, Series 2004L,
5.125%, 7/01/19 - MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue 7/16 at 100.00 Aa3 872,234
Bonds, Montclair State University, Series 2006A,
5.000%, 7/01/36 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue
Bonds, New Jersey Institute of Technology, Series 2004B:
1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AA 1,391,748
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AA 728,393
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AA 1,484,559
New Jersey Educational Facilities Authority, Revenue Bonds,
Ramapo College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 A- 1,617,663
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 A- 966,254
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A3 276,675
Rider University, Series 2004A, 5.500%, 7/01/23 -
RAAI Insured
1,405 New Jersey Higher Education Assistance Authority, 6/09 at 101.00 Aaa 1,333,570
Student Loan Revenue Bonds, Series 1999A,
5.250%, 6/01/18 - MBIA Insured (Alternative Minimum Tax)
985 New Jersey Higher Education Assistance Authority, 6/10 at 101.00 Aaa 994,939
Student Loan Revenue Bonds, Series 2000A,
6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, 6/18 at 100.00 AAA 1,829,460
Student Loan Revenue Bonds, Series 2008A,
6.125%, 6/01/30 - AGC Insured (Alternative Minimum Tax)
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AA $ 1,865,592
Certificates of Participation, Child Health Institute, LLC,
Series 2003, 5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AA 842,860
Certificates of Participation, University Housing Associates,
LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured
2,750 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AA 2,280,163
Revenue Bonds, Series 2002A, 5.000%, 12/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,210 Total Education and Civic Organizations 23,144,296
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,199,730
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.5% (12.7% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey,
Revenue Bonds, Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 141,754
620 5.750%, 2/15/34 8/14 at 100.00 BBB 508,530
1,120 New Jersey Health Care Facilities Finance Authority, 7/18 at 100.00 A+ 944,563
Revenue Bonds, AHS Hospital Corporation,
Series 2008A, 5.000%, 7/01/27
1,615 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 A+ 1,238,657
Revenue Bonds, Atlanticare Regional Medical Center,
Series 2007, 5.000%, 7/01/37
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Capital Health System Obligated Group, Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 590,858
1,670 5.375%, 7/01/33 7/13 at 100.00 Baa1 1,293,599
240 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 184,546
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A3 2,709,325
Revenue Bonds, Hackensack University Medical Center,
Series 2000, 6.000%, 1/01/34
700 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 543,060
Revenue Bonds, Hunterdon Medical Center, Series 2006B,
5.000%, 7/01/36
375 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 301,429
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,078,915
Revenue Bonds, Kennedy Health System Obligated Group,
Series 2001, 5.625%, 7/01/31
1,700 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,746,274
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BB+ 362,021
Revenue Bonds, Palisades Medical Center of New York
Presbyterian Healthcare System, Series 2002,
6.625%, 7/01/31
1,000 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 BBB+ 712,470
Revenue Bonds, RWJ Health Care Corporation,
Series 2005B, 5.000%, 7/01/35 - RAAI Insured
1,160 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 Baa2 854,723
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
1,675 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 BBB+ 1,364,740
Revenue Bonds, Shore Memorial Health System,
Series 2003, 5.000%, 7/01/23 - RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AA 1,968,360
Revenue Bonds, Society of the Valley Hospital Obligated
Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured
1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 1,086,094
Revenue Bonds, Somerset Medical Center,
Series 2003, 5.500%, 7/01/33
29
NNJ
Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
$ 1,245 5.000%, 7/01/36 7/16 at 100.00 A3 $ 979,354
1,155 5.000%, 7/01/46 7/16 at 100.00 A3 867,509
2,050 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa2 2,027,922
Revenue Bonds, St. Peter's University Hospital,
Series 2000A, 6.875%, 7/01/20
630 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A+ 588,344
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 BBB+ 1,413,366
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.000%, 7/01/22 - RAAI Insured
2,160 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 1,944,626
Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 -
AGC Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 12/08 at 100.50 A3 2,612,953
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American
Home Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
35,150 Total Health Care 30,063,992
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4% (0.2% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, 11/12 at 100.00 Aaa 277,960
FNMA Enhanced Multifamily Revenue Bonds, Mount
Carmel Towers, Series 2002, 4.750%, 11/01/22
(Alternative Minimum Tax)
300 Long Branch Housing Finance Corporation New Jersey, 4/09 at 100.00 N/R 301,065
Housing Revenue Bonds, Washington Manor Associates
Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%,
10/01/11
------------------------------------------------------------------------------------------------------------------------------------
640 Total Housing/Multifamily 579,025
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
New Jersey Housing and Mortgage Finance Agency, Home Buyer
Program Revenue Bonds, Series 1997U:
1,455 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 4/09 at 100.75 Aaa 1,456,848
385 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 4/09 at 100.75 Aaa 341,514
430 New Jersey Housing and Mortgage Finance Agency, No Opt. Call Aaa 436,596
Home Buyer Program Revenue Bonds, Series 2000CC,
4.600%, 10/01/09 - MBIA Insured
605 New Jersey Housing and Mortgage Finance Agency, 4/17 at 100.00 AA 412,283
Single Family Housing Revenue Bonds, Series 2007T,
4.700%, 10/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,875 Total Housing/Single Family 2,647,241
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS)
575 Gloucester County Improvement Authority, New Jersey, No Opt. Call BBB 577,208
Solid Waste Resource Recovery Revenue Refunding Bonds,
Waste Management Inc. Project, Series 1999B,
6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,095 Burlington County Bridge Commission, New Jersey, 1/18 at 100.00 N/R 741,370
Economic Development Revenue Bonds, The Evergreens
Project, Series 2007, 5.625%, 1/01/38
750 New Jersey Economic Development Authority, 11/14 at 100.00 N/R 600,480
First Mortgage Revenue Bonds, Winchester Gardens at
Wards Homestead, Series 2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue 6/11 at 102.00 A- 955,370
Bonds, Masonic Charity Foundation of New Jersey,
Series 2001, 5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
2,845 Total Long-Term Care 2,297,220
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.0% (6.5% OF TOTAL INVESTMENTS)
2,460 Freehold Regional High School District, Monmouth County No Opt. Call AA 2,593,307
Board of Education, New Jersey, School District Refunding
Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AA 2,460,625
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
New Jersey, General Obligation Bonds, Series 1992D:
$ 2,580 6.000%, 2/15/11 No Opt. Call AA $ 2,753,402
1,560 6.000%, 2/15/13 No Opt. Call AA 1,707,982
4,000 Passaic County, New Jersey, General Improvement No Opt. Call AA 4,137,840
Refunding Bonds, Series 1993, 5.125%, 9/01/12 -
FGIC Insured
1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aa3 1,803,140
Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,880 Total Tax Obligation/General 15,456,296
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 41.5% (27.0% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 1,010,670
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
5,385 Essex County Improvement Authority, New Jersey, 12/13 at 100.00 Aaa 5,490,276
Lease Revenue Bonds, Series 2003, 5.125%, 12/15/19 -
FSA Insured
1,155 Essex County Improvement Authority, New Jersey, No Opt. Call Aa3 1,171,055
Project Consolidation Revenue Bonds, Series 2007,
5.250%, 12/15/22 - AMBAC Insured
1,225 Garden State Preservation Trust, New Jersey, No Opt. Call AAA 1,284,302
Open Space and Farmland Preservation Bonds,
Series 2005C, 5.125%, 11/01/18 - FSA Insured
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AA 1,173,174
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA 2,553,334
1,000 Middlesex County Improvement Authority, New Jersey, 9/13 at 100.00 AAA 1,046,090
County Guaranteed Open Space Trust Fund Revenue Bonds,
Series 2003, 5.250%, 9/15/16
3,450 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 3,314,243
Series 2007A, 5.000%, 6/15/25
New Jersey Economic Development Authority, Cigarette Tax
Revenue Bonds, Series 2004:
1,155 5.500%, 6/15/24 6/12 at 100.00 BBB 920,027
2,540 5.750%, 6/15/34 6/14 at 100.00 BBB 1,906,372
3,200 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AA 3,369,344
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue
Bonds, Newark Downtown District Management
Corporation Project, Series 2007:
120 5.125%, 6/15/27 6/17 at 100.00 Baa3 92,832
205 5.125%, 6/15/37 6/17 at 100.00 Baa3 145,933
New Jersey Economic Development Authority, School
Facilities Construction Financing Program
Bonds, Series 2007U:
1,155 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA 1,050,207
2,310 5.000%, 9/01/37 9/17 at 100.00 AA- 2,100,414
2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,404,670
Lease Revenue Bonds, Department of Human Services -
Greystone Park Psychiatric Hospital, Series 2003,
5.000%, 9/15/25
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
2,615 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA 2,482,890
3,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AA 2,789,040
500 New Jersey Health Care Facilities Financing Authority, 10/18 at 100.00 AA- 434,475
State Contract Bonds, Hospital Asset Transformation
Program, Series 2008A, 5.250%, 10/01/38
1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AA 1,462,560
Center Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 -
MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of No Opt. Call AA 3,165,630
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation 9/15 at 100.00 A2 1,846,781
Bonds, Series 2005A, 5.000%, 9/15/18 - FGIC Insured
31
NNJ
Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
$ 400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 $ 407,796
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 719,826
2,600 New Jersey Transportation Trust Fund Authority, No Opt. Call AA 2,790,294
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, 12/15 at 100.00 AA 2,050,480
Transportation System Bonds, Series 2005B,
5.250%, 12/15/18 - FGIC Insured
1,110 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 1,113,474
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 1,733,388
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
8,090 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA 2,457,418
6,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 1,423,440
4,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 832,040
4,000 New Jersey Transportation Trust Fund Authority, 12/17 at 100.00 AA 3,798,520
Transportation System Bonds, Series 2007A,
5.000%, 12/15/26 - AMBAC Insured
780 Puerto Rico Convention Center District Authority, 7/16 at 100.00 BBB+ 572,926
Hotel Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
2,745 Union County Improvement Authority, New Jersey, 3/13 at 100.00 Aaa 2,502,534
General Obligation Lease Revenue Bonds, Plainfield Park
Madison Redevelopment Project, Series 2003,
5.000%, 3/01/34 - FSA Insured (4)
2,445 Union County Improvement Authority, New Jersey, 6/13 at 100.00 Aa1 2,432,335
General Obligation Lease Revenue Bonds, Series 2003,
5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
79,635 Total Tax Obligation/Limited 64,048,790
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.9% (12.3% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AA 2,622,455
Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 -
MBIA Insured
2,500 Delaware River and Bay Authority, Delaware and 1/15 at 100.00 AA 2,376,650
New Jersey, Revenue Bonds, Series 2005,
5.000%, 1/01/27 - MBIA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AA 642,043
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AA 392,044
5,750 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AA 5,681,977
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
2,750 Passaic County Improvement Authority, New Jersey, 4/15 at 100.00 Aaa 2,516,553
Revenue Bonds, Paterson Parking Deck Facility,
Series 2005, 5.000%, 4/15/35 - FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AA- 3,814,560
Revenue Bonds, One Hundred Fortieth Series 2005,
5.000%, 12/01/28 - SYNCORA GTY Insured
585 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 437,416
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 8.256%, 8/15/32 - FSA Insured (IF)
1,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 925,590
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 1,879,840
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 4/15/32 - FSA Insured
8,000 Port Authority of New York and New Jersey, Special Project 12/08 at 101.00 AA 7,112,959
Bonds, JFK International Air Terminal LLC, Sixth Series 1997,
5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax)
850 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Baa2 752,412
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,095 Total Transportation 29,154,499
------------------------------------------------------------------------------------------------------------------------------------
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.4% (17.2% OF TOTAL INVESTMENTS) (5)
$ 2,075 Egg Harbor Township School District, Atlantic County, 4/15 at 100.00 Aa2 (5) $ 2,241,291
New Jersey, General Obligation Bonds, Series 2005,
5.000%, 4/01/27 (Pre-refunded 4/01/15) - MBIA Insured
130 Essex County Improvement Authority, New Jersey, 12/13 at 100.00 Aaa 141,284
Lease Revenue Bonds, Series 2003, 5.125%, 12/15/19
(Pre-refunded 12/15/13) - FSA Insured
Manalapan-Englishtown Regional Board of Education,
New Jersey, General Obligation Bonds, Series 2003:
1,000 5.000%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 Baa1 (5) 1,079,140
1,000 5.000%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 1,079,140
2,410 New Jersey Economic Development Authority, Revenue No Opt. Call N/R (5) 2,889,952
Bonds, Yeshiva Ktana of Passaic, Series 1993,
8.000%, 9/15/18 (ETM)
595 New Jersey Educational Facilities Authority, Revenue 7/16 at 100.00 AA (5) 641,868
Bonds, Kean University, Series 2005B, 5.000%, 7/01/30
(Pre-refunded 7/01/16) - MBIA Insured
1,145 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA (5) 1,240,138
Bonds, Montclair State University, Series 2004L,
5.125%, 7/01/19 (Pre-refunded 7/01/14) - MBIA Insured
2,080 New Jersey Educational Facilities Authority, Revenue 7/15 at 100.00 A2 (5) 2,241,554
Bonds, Montclair State University, Series 2005F,
5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured
400 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA (5) 430,688
Bonds, Rowan University, Series 2004C, 5.000%, 7/01/20
(Pre-refunded 7/01/14) - MBIA Insured
3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A3 (5) 3,271,620
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
1,270 New Jersey Health Care Facilities Financing Authority, No Opt. Call A3 (5) 1,321,092
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured (ETM)
545 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (5) 594,366
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
4,445 New Jersey Housing and Mortgage Finance Agency, 11/08 at 100.75 Aaa 3,852,437
Multifamily Housing Revenue Bonds, Series 1997A,
5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 535,689
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA (5) 227,947
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AA (5) 140,275
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,354,241
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 1,964,107
750 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AA (5) 812,430
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21
(Pre-refunded 1/01/14) - MBIA Insured
2,125 Puerto Rico Electric Power Authority, Power Revenue 7/15 at 100.00 AAA 2,304,414
Bonds, Series 2005RR, 5.000%, 7/01/35
(Pre-refunded 7/01/15) - FGIC Insured
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
3,350 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,523,865
2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,460,330
350 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Baa2 (5) 377,699
Guaranteed Parking System Revenue Bonds, Series 2003,
5.000%, 10/01/24 (Pre-refunded 10/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,050 Total U.S. Guaranteed 40,725,567
------------------------------------------------------------------------------------------------------------------------------------
33
NNJ
Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 1,250 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 $ 1,198,100
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.9% (9.0% OF TOTAL INVESTMENTS)
Bayonne Municipal Utilities Authority, New Jersey, Water
System Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - SYNCORA GTY Insured 4/13 at 100.00 N/R 1,371,352
1,250 5.000%, 4/01/24 - SYNCORA GTY Insured 4/13 at 100.00 N/R 1,106,925
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AA 1,068,310
Sewer Revenue Refunding Bonds, Series 1993,
6.250%, 1/01/14 - AMBAC Insured
3,100 New Jersey Economic Development Authority, 3/09 at 100.00 A2 2,802,648
Water Facilities Revenue Refunding Bonds, Hackensack
Water Company, Series 1994B, 5.900%, 3/01/24 -
MBIA Insured (Alternative Minimum Tax)
6,950 New Jersey Environmental Infrastructure Trust, 9/11 at 101.00 AAA 7,349,624
Environmental Infrastructure Bonds, Series 2001A,
4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply 8/15 at 100.00 AA 1,561,940
Authority Bonds, Manasquan Reservoir, Series 2005,
5.000%, 8/01/31 - MBIA Insured
3,500 North Hudson Sewerage Authority, New Jersey, 8/12 at 100.00 N/R 3,523,345
Sewerage Revenue Refunding Bonds, Series 2002A,
5.250%, 8/01/19 - FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, No Opt. Call Aa2 1,040,330
New Jersey, Revenue Refunding Bonds, Series 1993B,
5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AA 1,564,875
New Jersey, Sewer Revenue Refunding Bonds,
Series 1993B, 5.750%, 9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,400 Total Water and Sewer 21,389,349
------------------------------------------------------------------------------------------------------------------------------------
$ 263,820 Total Investments (cost $256,180,716) - 154.0% 237,303,835
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.4% 8,397,071
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (59.4)% (6) (91,600,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $154,100,906
====================================================================================================================
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2008:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION OCTOBER 31, 2008 (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Long 49 12/08 $5,543,125 $(213,351)
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(4) Portion of investment has been pledged to collateralize the
net payment obligations under futures contracts.
(5) 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.
(6) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 38.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
34
NXJ
Nuveen New Jersey Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 166,959
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 145,542
45 New Jersey Economic Development Authority, General No Opt. Call CCC+ 24,750
Motors Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 337,251
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.0% (1.9% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A:
1,345 4.750%, 6/01/34 6/17 at 100.00 BBB 740,584
3,000 5.000%, 6/01/41 6/17 at 100.00 BBB 1,621,200
------------------------------------------------------------------------------------------------------------------------------------
4,345 Total Consumer Staples 2,361,784
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.5% (12.0% OF TOTAL INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 208,878
Fairleigh Dickinson University, Series 2004C,
5.500%, 7/01/23
325 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 264,563
Georgian Court University, Series 2007D, 5.250%, 7/01/37
New Jersey Educational Facilities Authority, Revenue Bonds,
Kean University, Series 2007D:
1,115 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 1,016,891
735 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 644,485
60 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 57,592
Montclair State University, Series 2004L, 5.125%, 7/01/21 -
MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aa3 872,234
Montclair State University, Series 2006A, 5.000%, 7/01/36 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AA 1,002,860
New Jersey Institute of Technology, Series 2001G,
5.250%, 7/01/18 - MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AA 985,180
New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
1,085 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 A+ 994,099
Rowan College, Series 2001C, 5.000%, 7/01/31 -
FGIC Insured
630 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA 611,818
Bonds, William Paterson University, Series 2004A,
5.125%, 7/01/19 - FGIC Insured
300 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 A3 285,378
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
200 New Jersey Educational Facilities Authority, Revenue 7/11 at 100.00 AA 205,056
Refunding Bonds, Seton Hall University Project,
Series 2001A, 5.250%, 7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue
Refunding Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AA 3,570,860
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AA 1,454,608
35
NXJ
Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series
2001:
$ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 1,681,100
500 5.250%, 9/01/31 9/11 at 100.00 BBB 375,235
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 369,265
Environmental Control Facilities Financing Authority,
Higher Education Revenue Refunding Bonds, Ana G.
Mendez University System, Series 2002, 5.500%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
16,090 Total Education and Civic Organizations 14,600,102
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.7% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, 1/13 at 100.00 BBB 832,290
Government Refinery Facilities - Hovensa LLC Coker,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 626,977
Development Revenue Bonds, Glimcher Properties LP,
Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial 12/08 at 100.00 Ba1 240,903
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 599,865
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,467,745
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.2% (14.4% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, 8/14 at 100.00 BBB 254,265
Revenue Bonds, Cooper Health System, Series 2004A,
5.750%, 2/15/34
560 New Jersey Health Care Facilities Finance Authority, 7/18 at 100.00 A+ 472,282
Revenue Bonds, AHS Hospital Corporation, Series 2008A,
5.000%, 7/01/27
865 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 A+ 663,429
Revenue Bonds, Atlanticare Regional Medical Center,
Series 2007, 5.000%, 7/01/37
890 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Baa1 689,403
Revenue Bonds, Capital Health System Obligated Group,
Series 2003A, 5.375%, 7/01/33
1,500 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aaa 1,325,955
Revenue Bonds, CentraState Medical Center, Series 2006A,
5.000%, 7/01/30 - AGC Insured
130 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 99,962
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
400 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 310,320
Revenue Bonds, Hunterdon Medical Center,
Series 2006B, 5.000%, 7/01/36
180 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 144,686
Revenue Bonds, Hunterdon Medical Center,
Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,078,915
Revenue Bonds, Kennedy Health System Obligated
Group, Series 2001, 5.625%, 7/01/31
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
750 5.750%, 7/01/25 7/10 at 100.00 A2 705,525
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,769,750
445 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 Baa2 327,889
Revenue Bonds, Saint Barnabas Health Care System,
Series 2006A, 5.000%, 7/01/29
895 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 BBB+ 729,219
Revenue Bonds, Shore Memorial Health System,
Series 2003, 5.000%, 7/01/23 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 579,250
Revenue Bonds, Somerset Medical Center,
Series 2003, 5.500%, 7/01/33
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
$ 665 5.000%, 7/01/36 7/16 at 100.00 A3 $ 523,109
615 5.000%, 7/01/46 7/16 at 100.00 A3 461,920
1,100 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa2 1,088,153
Revenue Bonds, St. Peter's University Hospital,
Series 2000A, 6.875%, 7/01/20
2,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 A2 2,191,975
Revenue Refunding Bonds, Burdette Tomlin Memorial
Hospital, Series 1999, 5.500%, 7/01/29
1,280 New Jersey Health Facilities Financing Authority, 7/18 at 100.00 AAA 1,152,371
Revenue Bonds, Meridian Health, Series 2007-I,
5.000%, 7/01/38 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,585 Total Health Care 17,568,378
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
310 Gloucester County Improvement Authority, New Jersey, No Opt. Call BBB 311,190
Solid Waste Resource Recovery Revenue Refunding
Bonds, Waste Management Inc. Project, Series 1999B,
6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.8% (1.8% OF TOTAL INVESTMENTS)
585 Burlington County Bridge Commission, New Jersey, 1/18 at 100.00 N/R 396,074
Economic Development Revenue Bonds, The Evergreens
Project, Series 2007, 5.625%, 1/01/38
250 New Jersey Economic Development Authority, First 11/14 at 100.00 N/R 200,160
Mortgage Revenue Bonds, Winchester Gardens at Wards
Homestead, Series 2004A, 5.800%, 11/01/31
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A- 966,350
335 5.500%, 6/01/31 6/11 at 102.00 A- 300,696
500 New Jersey Economic Development Authority, Revenue 1/09 at 101.00 BB+ 322,040
Bonds, United Methodist Homes of New Jersey Obligated
Group, Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,670 Total Long-Term Care 2,185,320
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.8% (1.9% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AA 984,250
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,268,825
Bonds, Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,253,075
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.7% (23.2% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 606,402
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AA 1,780,214
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
1,000 Camden County Improvement Authority, New Jersey, 9/15 at 100.00 AAA 1,053,290
County Guaranteed Lease Revenue Bonds, Series 2005A,
5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AA 1,134,353
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
620 Essex County Improvement Authority, New Jersey, No Opt. Call Aa3 628,618
Project Consolidation Revenue Bonds, Series 2007,
5.250%, 12/15/22 - AMBAC Insured
815 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 854,454
and Farmland Preservation Bonds, Series 2005C,
5.125%, 11/01/18 - FSA Insured
1,785 New Jersey Building Authority, State Building Revenue 6/16 at 100.00 AA- 1,693,644
Bonds, Series 2007A, 5.000%, 6/15/27
37
NXJ
Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Economic Development Authority, Cigarette
Tax Revenue Bonds, Series 2004:
$ 615 5.500%, 6/15/24 6/12 at 100.00 BBB $ 489,884
1,200 5.750%, 6/15/34 6/14 at 100.00 BBB 900,648
1,200 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AA 1,263,504
Bonds, Motor Vehicle Surcharge, Series 2004A,
5.250%, 7/01/15 - MBIA Insured
New Jersey Economic Development Authority, Revenue
Bonds, Newark Downtown District Management
Corporation Project, Series 2007:
65 5.125%, 6/15/27 6/17 at 100.00 Baa3 50,284
115 5.125%, 6/15/37 6/17 at 100.00 Baa3 81,865
New Jersey Economic Development Authority, School
Facilities Construction Financing Program
Bonds, Series 2007U:
615 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA 559,201
1,235 5.000%, 9/01/37 9/17 at 100.00 AA- 1,122,948
525 New Jersey Educational Facilities Authority, Revenue No Opt. Call AAA 558,868
Bonds, Higher Education Capital Improvement Fund,
Series 2005A, 5.000%, 9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
925 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA 924,371
1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA 1,329,272
250 New Jersey Health Care Facilities Financing Authority, 10/18 at 100.00 AA- 217,238
State Contract Bonds, Hospital Asset Transformation
Program, Series 2008A, 5.250%, 10/01/38
1,000 New Jersey Transit Corporation, Certificates of No Opt. Call AA 1,055,210
Participation, Federal Transit Administration Grants,
Series 2002A, 5.500%, 9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation 9/15 at 100.00 A2 984,950
Bonds, Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 356,822
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 614,118
1,300 New Jersey Transportation Trust Fund Authority, No Opt. Call AA 1,395,147
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 1,284,006
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 1,325,532
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
4,315 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA 1,310,724
3,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 711,720
6,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,248,060
1,000 New Jersey Transportation Trust Fund Authority, 12/17 at 100.00 AA 949,630
Transportation System Bonds, Series 2007A,
5.000%, 12/15/26 - AMBAC Insured
405 Puerto Rico Convention Center District Authority, 7/16 at 100.00 BBB+ 297,481
Hotel Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien 4/09 at 101.00 A 1,470,765
Revenue Refunding Bonds, Matching Fund Loan Note,
Series 1998A, 5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
38,870 Total Tax Obligation/Limited 28,253,223
------------------------------------------------------------------------------------------------------------------------------------
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.7% (12.2% OF TOTAL INVESTMENTS)
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
$ 1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AA $ 961,320
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA 955,530
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA 475,330
900 New Jersey Economic Development Authority, Special 11/10 at 101.00 B 582,741
Facilities Revenue Bonds, Continental Airlines Inc.,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
50 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call AA 56,818
Series 1991C, 6.500%, 1/01/16 - MBIA Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AA 2,964,510
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
300 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call AAA 297,033
Series 2005A, 5.250%, 1/01/29 - FSA Insured
310 Port Authority of New York and New Jersey, Consolidated 8/17 at 100.00 AAA 231,793
Revenue Bonds, One Hundred Forty Eighth Series 2008,
Trust 2920, 8.256%, 8/15/32 - FSA Insured (IF)
500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 462,795
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
5,000 Port Authority of New York and New Jersey, Special Project 12/08 at 101.00 AA 4,445,600
Bonds, JFK International Air Terminal LLC, Sixth
Series 1997, 5.750%, 12/01/22 - MBIA Insured
(Alternative Minimum Tax)
3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AA 3,343,045
Transportation System Revenue Bonds, Series 1999,
5.125%, 11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,995 Total Transportation 14,776,515
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.7% (16.0% OF TOTAL INVESTMENTS) (4)
2,400 New Jersey Economic Development Authority, School 6/11 at 100.00 AAA 2,537,328
Facilities Construction Bonds, Series 2001A,
5.000%, 6/15/21 (Pre-refunded 6/15/11) - AMBAC Insured
385 New Jersey Educational Facilities Authority, Revenue 7/16 at 100.00 AA (4) 415,326
Bonds, Kean University, Series 2005B, 5.000%, 7/01/30
(Pre-refunded 7/01/16) - MBIA Insured
690 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA (4) 747,332
Montclair State University, Series 2004L, 5.125%, 7/01/21
(Pre-refunded 7/01/14) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,293,204
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,077,670
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 560,388
415 New Jersey Educational Facilities Authority, Revenue 7/11 at 101.00 A+ (4) 442,859
Bonds, Rowan College, Series 2001C, 5.000%, 7/01/31
(Pre-refunded 7/01/11) - FGIC Insured
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA (4) 672,950
Rowan University, Series 2004C, 5.000%, 7/01/24
(Pre-refunded 7/01/14) - MBIA Insured
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A3 (4) 1,472,229
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
845 New Jersey Health Care Facilities Financing Authority, No Opt. Call A3 (4) 878,994
Revenue Bonds, St. Clare's Hospital, Series 2004A,
5.250%, 7/01/20 - RAAI Insured (ETM)
500 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- (4) 545,290
Revenue Bonds, Trinitas Hospital Obligated Group,
Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 149,763
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA (4) 23,379
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,009,953
375 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AA (4) 406,215
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21
(Pre-refunded 1/01/14) - MBIA Insured
1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,501,515
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
39
NXJ
Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 2,150 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA $ 2,291,492
Bonds, Series 2001, 5.250%, 7/01/27
(Pre-refunded 7/01/11) - FSA Insured
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
2,135 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,245,807
1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,230,165
------------------------------------------------------------------------------------------------------------------------------------
18,270 Total U.S. Guaranteed 19,501,859
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.2% (0.8% OF TOTAL INVESTMENTS)
210 Camden County Pollution Control Financing Authority, 12/08 at 100.00 Baa3 210,410
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 718,860
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
960 Total Utilities 929,270
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 20.4% (13.3% OF TOTAL INVESTMENTS)
225 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 181,640
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, 11/08 at 102.00 N/R 3,702,902
Water Facilities Revenue Bonds, American Water Company,
Series 1997B, 5.375%, 5/01/32 - FGIC Insured
(Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, 2/09 at 101.00 AA 5,373,970
Water Facilities Revenue Bonds, Middlesex Water Company,
Series 1998, 5.350%, 2/01/38 - MBIA Insured
(Alternative Minimum Tax)
390 New Jersey Environmental Infrastructure Trust, 3/09 at 101.00 AAA 390,612
Environmental Infrastructure Bonds, Series 1998A,
4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, No Opt. Call Baa1 6,528,929
Sewerage Revenue Refunding Bonds, Series 2001A,
0.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,090 Total Water and Sewer 16,178,053
------------------------------------------------------------------------------------------------------------------------------------
$ 151,920 Total Investments (cost $136,372,034) - 153.7% 121,556,055
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 7.0% 5,528,770
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (60.7)% (5) (48,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $79,084,825
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 39.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
40
NUJ
Nuveen New Jersey Dividend Advantage Municipal Fund 2
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.4% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 115,587
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 94,919
40 New Jersey Economic Development Authority, General No Opt. Call CCC+ 22,000
Motors Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 232,506
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 3.2% (2.0% OF TOTAL INVESTMENTS)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2007-1A:
950 4.750%, 6/01/34 6/17 at 100.00 BBB 523,089
2,200 5.000%, 6/01/41 6/17 at 100.00 BBB 1,188,880
------------------------------------------------------------------------------------------------------------------------------------
3,150 Total Consumer Staples 1,711,969
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.7% (9.9% OF TOTAL INVESTMENTS)
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA 2,823,509
College of New Jersey Project, Series 2002C,
4.750%, 7/01/19 - FGIC Insured
200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 167,102
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
New Jersey Educational Facilities Authority, Revenue Bonds,
Kean University, Series 2007D:
790 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 A- 720,488
495 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 A- 434,041
575 New Jersey Educational Facilities Authority, Revenue 1/14 at 100.00 AA 566,479
Bonds, New Jersey Institute of Technology, Series 2004B,
5.000%, 7/01/21 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue 7/14 at 100.00 AA 485,570
Bonds, William Paterson University, Series 2004A,
5.125%, 7/01/19 - FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue 7/12 at 100.00 A3 1,036,873
Refunding Bonds, Rider University, Series 2002A,
5.000%, 7/01/17 - RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 860,040
Environmental Control Facilities Financing Authority,
Higher Education Revenue Bonds, Ana G. Mendez
University System, Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AA 1,484,179
Revenue Bonds, Series 2002A, 5.000%, 12/01/31 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,440 Total Education and Civic Organizations 8,578,281
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, 1/13 at 100.00 BBB 832,290
Government Refinery Facilities - Hovensa LLC Coker,
Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 5.2% (3.2% OF TOTAL INVESTMENTS)
600 New Jersey Economic Development Authority, 11/08 at 101.00 N/R 442,572
Economic Development Revenue Bonds, Glimcher
Properties LP, Series 1998, 6.000%, 11/01/28
(Alternative Minimum Tax)
41
NUJ
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS (continued)
$ 1,250 New Jersey Economic Development Authority, Industrial 12/08 at 100.00 Ba1 $ 1,204,513
Development Revenue Refunding Bonds, Newark Airport
Marriott Hotel, Series 1996, 7.000%, 10/01/14
1,450 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,159,739
Refunding Bonds, Kapkowski Road Landfill Project,
Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 2,806,824
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 30.7% (19.4% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, 8/14 at 100.00 BBB 180,446
Revenue Bonds, Cooper Health System, Series 2004A,
5.750%, 2/15/34
400 New Jersey Health Care Facilities Finance Authority, 7/18 at 100.00 A+ 337,344
Revenue Bonds, AHS Hospital Corporation, Series 2008A,
5.000%, 7/01/27
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AA 447,450
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AA 1,674,904
610 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 A+ 467,852
Revenue Bonds, Atlanticare Regional Medical Center,
Series 2007, 5.000%, 7/01/37
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Capital Health System Obligated Group, Series 2003A:
750 5.000%, 7/01/26 7/13 at 100.00 Baa1 590,858
630 5.375%, 7/01/33 7/13 at 100.00 Baa1 488,004
1,000 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aaa 883,970
Revenue Bonds, CentraState Medical Center,
Series 2006A, 5.000%, 7/01/30 - AGC Insured
90 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 69,205
Revenue Bonds, Children's Specialized Hospital,
Series 2005A, 5.500%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 96,457
Revenue Bonds, Hunterdon Medical Center, Series 2006,
5.125%, 7/01/35
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Kennedy Health System Obligated Group, Series 2001:
400 5.500%, 7/01/21 7/11 at 100.00 A2 375,308
140 5.625%, 7/01/31 7/11 at 100.00 A2 123,157
510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 Aaa 398,820
Revenue Bonds, Meridian Health System Obligated Group,
Series 1999, 5.250%, 7/01/29 - FSA Insured
1,185 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BB+ 922,570
Revenue Bonds, Palisades Medical Center of New York
Presbyterian Healthcare System, Series 2002,
6.625%, 7/01/31
3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A2 3,231,374
Revenue Bonds, Robert Wood Johnson University Hospital,
Series 2000, 5.750%, 7/01/31
630 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 BBB+ 513,305
Revenue Bonds, Shore Memorial Health System,
Series 2003, 5.000%, 7/01/23 - RAAI Insured
700 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba2 405,475
Revenue Bonds, Somerset Medical Center, Series 2003,
5.500%, 7/01/33
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, South Jersey Hospital System, Series 2006:
455 5.000%, 7/01/36 7/16 at 100.00 A3 357,917
435 5.000%, 7/01/46 7/16 at 100.00 A3 326,724
775 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa2 766,653
Revenue Bonds, St. Peter's University Hospital,
Series 2000A, 6.875%, 7/01/20
1,390 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A+ 1,298,093
Revenue Refunding Bonds, Atlantic City Medical Center,
Series 2002, 5.750%, 7/01/25
1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 BBB+ 853,519
Revenue Refunding Bonds, Bayshore Community Hospital,
Series 2002, 5.125%, 7/01/32 - RAAI Insured
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 960 New Jersey Health Facilities Financing Authority, 7/18 at 100.00 AAA $ 864,278
Revenue Bonds, Meridian Health, Series 2007-I,
5.000%, 7/01/38 - AGC Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical 12/08 at 100.50 A3 1,084,622
and Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American
Home Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
19,575 Total Health Care 16,758,305
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
225 New Jersey Housing and Mortgage Finance Agency, 4/17 at 100.00 AA 153,329
Single Family Housing Revenue Bonds, Series 2007T,
4.700%, 10/01/37 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS)
220 Gloucester County Improvement Authority, New Jersey, No Opt. Call BBB 220,845
Solid Waste Resource Recovery Revenue Refunding Bonds,
Waste Management Inc. Project, Series 1999B,
6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.3% (5.9% OF TOTAL INVESTMENTS)
415 Burlington County Bridge Commission, New Jersey, 1/18 at 100.00 N/R 280,976
Economic Development Revenue Bonds, The Evergreens
Project, Series 2007, 5.625%, 1/01/38
New Jersey Economic Development Authority, Revenue
Bonds, Masonic Charity Foundation of New Jersey, Series 2001:
1,000 5.500%, 6/01/21 6/11 at 102.00 A- 955,370
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 3,590,399
375 New Jersey Economic Development Authority, Revenue 1/09 at 101.00 BB+ 241,530
Bonds, United Methodist Homes of New Jersey Obligated
Group, Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,790 Total Long-Term Care 5,068,275
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.9% (1.2% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AA 688,975
Series 2006A, 5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 366,100
Bonds, Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,055,075
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 30.2% (19.0% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 404,268
Guaranteed Lease Revenue Bonds, County Administration
Complex Project, Series 2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, 12/13 at 100.00 AA 1,020,180
Guaranteed Pooled Loan Bonds, Series 2003,
5.000%, 12/01/18 - MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AA 773,423
Hotel Room Fee Revenue Bonds, Series 2004,
5.250%, 1/01/16 - AMBAC Insured
435 Essex County Improvement Authority, New Jersey, No Opt. Call Aa3 441,047
Project Consolidation Revenue Bonds, Series 2007,
5.250%, 12/15/22 - AMBAC Insured
530 Garden State Preservation Trust, New Jersey, No Opt. Call AAA 555,657
Open Space and Farmland Preservation Bonds,
Series 2005C, 5.125%, 11/01/18 - FSA Insured
1,305 New Jersey Building Authority, State Building Revenue 6/16 at 100.00 AA- 1,247,476
Bonds, Series 2007A, 5.000%, 6/15/26
New Jersey Economic Development Authority, Cigarette
Tax Revenue Bonds, Series 2004:
435 5.500%, 6/15/24 6/12 at 100.00 BBB 346,504
700 5.750%, 6/15/34 6/14 at 100.00 BBB 525,378
New Jersey Economic Development Authority, Revenue
Bonds, Newark Downtown District Management
Corporation Project, Series 2007:
50 5.125%, 6/15/27 6/17 at 100.00 Baa3 38,680
75 5.125%, 6/15/37 6/17 at 100.00 Baa3 53,390
43
NUJ
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
New Jersey Economic Development Authority, School Facilities
Construction Financing Program Bonds, Series 2007U:
$ 435 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA $ 395,532
870 5.000%, 9/01/37 9/17 at 100.00 AA- 791,065
350 New Jersey Educational Facilities Authority, Revenue No Opt. Call AAA 372,579
Bonds, Higher Education Capital Improvement Fund,
Series 2005A, 5.000%, 9/01/15 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Lease
Revenue Bonds, Department of Human Services - Greystone Park
Psychiatric Hospital, Series 2005:
655 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA 654,555
985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA 935,238
200 New Jersey Health Care Facilities Financing Authority, 10/18 at 100.00 AA- 173,790
State Contract Bonds, Hospital Asset Transformation
Program, Series 2008A, 5.250%, 10/01/38
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AA 1,055,210
Federal Transit Administration Grants, Series 2002A,
5.500%, 9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 A2 753,487
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal
Highway Aid Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 A1 300,750
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 A1 528,544
900 New Jersey Transportation Trust Fund Authority, No Opt. Call AA 965,871
Transportation System Bonds, Series 2004B,
5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 667,081
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 815,712
Transportation System Bonds, Series 2006A,
5.500%, 12/15/22
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
3,040 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA 923,430
2,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 474,480
5,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,040,050
290 Puerto Rico Convention Center District Authority, 7/16 at 100.00 BBB+ 213,011
Hotel Occupancy Tax Revenue Bonds, Series 2006A,
4.500%, 7/01/36 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
24,455 Total Tax Obligation/Limited 16,466,388
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.4% (15.4% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and 1/15 at 100.00 AA 475,330
New Jersey, Revenue Bonds, Series 2005,
5.000%, 1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, 11/10 at 101.00 B 388,494
Special Facilities Revenue Bonds, Continental Airlines Inc.,
Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Revenue Bonds, 7/13 at 100.00 AA 1,976,340
Series 2003A, 5.000%, 1/01/19 - FGIC Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call AAA 1,485,165
Series 2005A, 5.250%, 1/01/29 - FSA Insured
500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 462,795
Revenue Bonds, One Hundred Thirty-Fourth Series 2004,
5.000%, 7/15/34
3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,813,879
Revenue Bonds, One Hundred Twenty-Fifth Series 2002,
5.000%, 10/15/26 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AA 1,696,780
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax)
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series 1997:
$ 4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AA $ 3,975,678
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/08 at 101.00 AA 44,456
------------------------------------------------------------------------------------------------------------------------------------
14,150 Total Transportation 13,318,917
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.1% (18.4% OF TOTAL INVESTMENTS) (4)
1,000 Bergen County Improvement Authority, New Jersey, 9/12 at 101.00 N/R (4) 1,099,620
Revenue Bonds, Yeshiva Ktana of Passaic Project,
Series 2002, 6.000%, 9/15/27 (Pre-refunded 9/01/12)
2,000 Jackson Township School District, Ocean County, 4/12 at 100.00 AA (4) 2,128,980
New Jersey, General Obligation Bonds, Series 2002,
5.000%, 4/15/21 (Pre-refunded 4/15/12) - FGIC Insured
175 New Jersey Educational Facilities Authority, Revenue 7/16 at 100.00 AA (4) 188,785
Bonds, Kean University, Series 2005B, 5.000%, 7/01/30
(Pre-refunded 7/01/16) - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds,
Montclair State University, Series 2005F:
800 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 862,136
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 339,466
1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A3 (4) 1,363,175
Revenue Bonds, South Jersey Hospital System,
Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
1,920 New Jersey Housing and Mortgage Finance Agency, 11/08 at 100.75 Aaa 1,615,373
Multifamily Housing Revenue Bonds, Series 1997A,
5.650%, 5/01/40 - AMBAC Insured (Alternative Minimum Tax)
535 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 578,693
Transportation System Bonds, Series 2005D,
5.000%, 6/15/19 (Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 195,843
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,711,807
250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AA (4) 270,810
Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21
(Pre-refunded 1/01/14) - MBIA Insured
1,000 Puerto Rico Infrastructure Financing Authority, 10/10 at 101.00 AAA 1,001,010
Special Obligation Bonds, Series 2000A, 5.500%, 10/01/40
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 538,704
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
(Pre-refunded 2/01/12)
Tobacco Settlement Financing Corporation, New Jersey,
Tobacco Settlement Asset-Backed Bonds, Series 2003:
1,525 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,604,148
1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,366,850
------------------------------------------------------------------------------------------------------------------------------------
15,125 Total U.S. Guaranteed 15,865,400
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.0% (3.2% OF TOTAL INVESTMENTS)
95 Camden County Pollution Control Financing Authority, 12/08 at 100.00 Baa3 95,185
New Jersey, Solid Waste Disposal and Resource Recovery
System Revenue Bonds, Series 1991B, 7.500%, 12/01/09
(Alternative Minimum Tax)
2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AA 1,926,779
5.250%, 10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 718,860
Control Revenue Refunding Bonds, Public Service Electric
and Gas Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
3,145 Total Utilities 2,740,824
------------------------------------------------------------------------------------------------------------------------------------
45
NUJ
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.2% (0.7% OF TOTAL INVESTMENTS)
$ 150 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 $ 121,094
Wastewater System Revenue Bonds, Series 2005,
6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 N/R 503,335
Revenue Refunding Bonds, Series 2002A,
5.250%, 8/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 624,429
------------------------------------------------------------------------------------------------------------------------------------
$ 101,680 Total Investments (cost $96,425,385) - 158.5% 86,433,657
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.8% 2,605,556
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (63.3)% (5) (34,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $54,539,213
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 39.9%.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
46
NQP
Nuveen Pennsylvania Investment Quality Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.5% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 906,470
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 32.7% (19.2% OF TOTAL INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 3/09 at 102.00 BBB 1,759,180
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 160,664
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 2,849,130
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 870,514
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,000 Chester County Industrial Development Authority, 1/12 at 100.00 AA 1,870,680
Pennsylvania, Educational Facilities Revenue Bonds,
Westtown School, Series 2002, 5.000%, 1/01/26 -
AMBAC Insured
3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,026,490
Haverford College, Series 2000, 5.750%, 11/15/29
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AA 1,662,924
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AA 810,634
Erie Higher Education Building Authority, Pennsylvania,
College Revenue Bonds, Gannon University, Series 2007-GG3:
790 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 BBB+ 612,100
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB+ 188,655
1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 N/R 906,480
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project, Series 1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AA 575,537
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AA 539,579
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AA 504,884
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AA 467,223
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AA 435,601
1,515 Montgomery County Higher Education and Health 4/16 at 100.00 A3 1,167,232
Authority, Pennsylvania, Revenue Bonds, Arcadia
University, Series 2006, 4.500%, 4/01/30 - RAAI Insured
355 New Wilmington, Pennsylvania, Revenue, Westminster 5/17 at 100.00 BBB+ 278,221
College, Series 2007G, 5.125%, 5/01/33 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 AA 6,852,160
Acquisition Revenue Refunding Bonds, Series 2001,
5.000%, 12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aa3 5,017,800
General Revenue Bonds, State System of Higher Education,
Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
4,600 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 4,216,130
General Revenue Bonds, State System of Higher Education,
Series 2008AH, 5.000%, 6/15/33
47
NQP
Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,435 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- $ 1,170,271
Revenue Bonds, Allegheny College, Series 2006,
4.750%, 5/01/31
2,650 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA 2,376,467
Revenue Bonds, Drexel University, Series 2007A,
5.000%, 5/01/37 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 BBB+ 4,068,250
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
3,870 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA 3,817,058
Revenue Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
320 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 313,811
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20
2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA+ 1,800,480
Revenue Bonds, University of Pennsylvania,
Series 2005C, 5.000%, 7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 A- 2,833,561
Revenue Bonds, Ursinus College, Series 2003,
5.375%, 1/01/20 - RAAI Insured
785 Pennsylvania Higher Educational Facilities Authority, 11/15 at 100.00 A 733,112
Revenue Bonds, York College Project, Series 2005EE1,
5.250%, 11/01/27 - SYNCORA GTY Insured
6,500 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 6,200,155
Series 2005, 5.000%, 9/01/29 (UB)
Philadelphia Authority for Industrial Development, Pennsylvania,
Revenue Bonds, Franklin Towne Charter High School, Series 2006A:
510 5.250%, 1/01/27 1/17 at 100.00 BBB 538,902
860 5.375%, 1/01/32 1/17 at 100.00 BBB 916,038
2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore 12/08 at 100.00 AAA 2,830,000
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,711,420
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/18
------------------------------------------------------------------------------------------------------------------------------------
70,940 Total Education and Civic Organizations 64,081,343
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.0% (8.2% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority,
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A:
1,150 5.000%, 4/01/25 4/15 at 100.00 Baa2 841,858
1,555 5.125%, 4/01/35 4/15 at 100.00 Baa2 1,033,064
1,115 Erie County Hospital Authority, Pennsylvania, Revenue 11/12 at 100.00 AA 1,135,215
Bonds, Hamot Health Foundation, Series 2002,
5.250%, 11/01/15 - AMBAC Insured
280 Erie County Hospital Authority, Pennsylvania, Revenue 11/17 at 100.00 A- 228,292
Bonds, Hamot Health Foundation, Series 2007,
5.000%, 11/01/37 - CIFG Insured
1,890 Lancaster County Hospital Authority, Pennsylvania, 3/17 at 100.00 AA- 1,689,547
Hospital Revenue Bonds, The Lancaster General Hospital
Project, Series 2007A, 5.000%, 3/15/26
250 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 220,675
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.800%, 11/15/22
3,280 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 2,941,701
Hospital Revenue Bonds, Lehigh Valley Health Network,
Series 2008A, 5.000%, 7/01/33 - FSA Insured
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,134,888
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
5,345 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 4,954,975
Revenue Bonds, Good Shepherd Group, Series 2007,
5.000%, 11/01/30 - AGC Insured
710 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 512,712
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 9,000 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- $ 8,565,120
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
1,615 Sayre Health Care Facility Authority, Pennsylvania, 7/12 at 100.00 AA 1,586,754
Revenue Bonds, Latrobe Area Hospital, Series 2002A,
5.250%, 7/01/13 - AMBAC Insured
1,060 Sayre Healthcare Facility Authority, Pennsylvania, 12/17 at 100.00 A 545,900
Revenue Bonds, Guthrie Healthcare System,
Series 2007, 4.263%, 12/01/31 - AMBAC Insured
Southcentral Pennsylvania General Authority, Revenue
Bonds, Hanover Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 A3 390,327
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 A3 266,615
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,274,940
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
30,895 Total Health Care 27,322,583
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.6% (2.1% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Higher Educational Facilities Authority, 7/17 at 100.00 BBB- 3,587,250
Revenue Bonds, Slippery Rock University Foundation Inc.,
Series 2007A, 5.000%, 7/01/39 - SYNCORA GTY Insured
3,300 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 2,558,028
Revenue Bonds, Slippery Rock University Foundation Inc.,
Student Housing Project, Series 2005A, 5.000%, 7/01/37 -
SYNCORA GTY Insured
800 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 596,600
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
260 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/09 at 100.00 A2 260,138
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,360 Total Housing/Multifamily 7,002,016
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 9.4% (5.6% OF TOTAL INVESTMENTS)
9,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 6,476,940
Mortgage Revenue Bonds, Series 1995A,
4.900%, 10/01/37 (Alternative Minimum Tax)
2,665 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 2,130,401
Mortgage Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
3,495 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 2,652,216
Mortgage Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,006,426
Mortgage Revenue Bonds, Series 2007-97A,
4.600%, 10/01/27 (Alternative Minimum Tax)
2,130 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,572,877
Mortgage Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
2,150 Pennsylvania Housing Finance Agency, Single Family 10/17 at 100.00 AA+ 1,902,535
Mortgage Revenue Bonds, Series 2008-103-C,
5.450%, 10/01/38
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/09 at 100.00 AAA 967,814
Mortgage Revenue Bonds, Series 1997A,
6.250%, 10/01/28 (Alternative Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 1,755,292
Mortgage Revenue Bonds, Series 2001B,
5.450%, 10/01/32 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,895 Total Housing/Single Family 18,464,501
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.7% (2.8% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A2 3,996,100
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, No Opt. Call AA 5,254,900
Economic Development Revenue Bonds, Series 2002,
5.500%, 7/01/12 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 9,251,000
------------------------------------------------------------------------------------------------------------------------------------
49
NQP
Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.5% (1.5% OF TOTAL INVESTMENTS)
$ 1,330 Cumberland County Municipal Authority, Pennsylvania, 1/17 at 100.00 N/R $ 927,941
Revenue Bonds, Diakon Lutheran Social Ministries,
Series 2007, 5.000%, 1/01/36
1,500 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 BBB+ 1,128,330
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/26 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,550 5.000%, 11/01/26 11/16 at 100.00 A+ 1,250,432
415 5.000%, 11/01/36 11/16 at 100.00 A+ 305,693
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA 1,291,860
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/26 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,295 Total Long-Term Care 4,904,256
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 943,488
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,065,435
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 2,008,923
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 27.7% (16.3% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A 1,803,762
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 6,360,540
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call AA 1,865,430
Obligation Bonds, Series 2000, 0.000%, 9/01/30 -
AMBAC Insured
1,000 Montgomery County, Pennsylvania, General Obligation 7/09 at 100.00 Aaa 1,000,820
Bonds, Series 1999, 5.000%, 7/15/24
5,000 Pennsylvania Public School Building Authority, Lease 12/16 at 100.00 AAA 4,326,800
Revenue Bonds, School District of Philadelphia,
Series 2006B, 5.000%, 6/01/33 - FSA Insured (UB)
4,830 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 4,064,590
Residuals 1986, 10.386%, 3/01/27 (IF)
1,500 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 1,559,055
5.000%, 10/01/18
500 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 519,485
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call Aa3 1,365,075
Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured
4,135 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 3,755,821
Improvement General Obligation Bonds, Series 2005,
5.000%, 7/15/35 - FSA Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,263,940
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/15 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 A1 1,029,468
General Obligation Bonds, Series 2006A, 5.000%, 4/01/22 -
FGIC Insured
445 State Public School Building Authority, Pennsylvania, 11/13 at 100.00 N/R 437,600
School Revenue Bonds, Conneaut School District,
Series 2003, 5.250%, 11/01/21 - FGIC Insured
21,000 State Public School Building Authority, Pennsylvania, No Opt. Call AAA 21,507,360
Lease Revenue Bonds, Philadelphia School District,
Series 2003, 5.500%, 6/01/28 - FSA Insured (UB)
1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,485,583
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
60,595 Total Tax Obligation/General 54,345,329
------------------------------------------------------------------------------------------------------------------------------------
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 10.3% (6.0% OF TOTAL INVESTMENTS)
$ 3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AA $ 3,095,470
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29 -
FGIC Insured
8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AA 8,198,097
Special Tax Revenue Refunding Bonds, Philadelphia Funding
Program, Series 1999, 4.750%, 6/15/23 - FGIC Insured
2,140 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/18 at 100.00 AA 1,955,425
Senior Lien Revenue Bonds, Series 2003A,
5.000%, 12/01/32 - MBIA Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 2,767,095
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium 8/09 at 101.00 AA 3,466,840
Authority, Pennsylvania, Sales Tax Revenue Bonds,
Regional Asset District, Series 1999, 5.000%, 2/01/29 -
AMBAC Insured
3,140 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 638,927
Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,205 Total Tax Obligation/Limited 20,121,854
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 13.2% (7.8% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 641,554
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, 5/10 at 100.00 A2 1,818,537
Airport Revenue Bonds, Lehigh Valley Airport System,
Series 2000A, 6.000%, 5/15/30 - MBIA Insured
(Alternative Minimum Tax)
5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB 4,675,644
Revenue Bonds, Amtrak 30th Street Station Parking
Garage, Series 2002, 5.800%, 6/01/23 - ACA Insured
(Alternative Minimum Tax)
2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AA 2,049,608
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds,
Series 2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AA 3,747,955
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AA 2,835,508
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 A+ 3,946,750
Series 2001B, 5.250%, 6/15/31 - FGIC Insured
(Alternative Minimum Tax)
3,600 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AA 2,525,400
Series 2005A, 4.750%, 6/15/35 - MBIA Insured
(Alternative Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,087,923
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
800 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA 618,064
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,665 Total Transportation 25,946,943
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 36.4% (21.4% OF TOTAL INVESTMENTS) (4)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A+ (4) 3,767,615
Series 2000C-52, 5.250%, 11/01/23
(Pre-refunded 5/01/11) - FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation 5/11 at 100.00 A (4) 1,400,916
Refunding Bonds, Series 2000C-53, 5.250%, 11/01/20
(Pre-refunded 5/01/11) - FGIC Insured
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001:
5,325 5.100%, 5/01/20 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) 5,674,746
1,465 5.100%, 5/01/21 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) 1,561,221
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A2 (4) 1,520,302
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AA (4) 5,350,750
Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) -
MBIA Insured
51
NQP
Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 A (4) $ 6,736,087
Pennsylvania, General Obligation Bonds, Series 2002,
5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC Insured
1,125 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 AAA 1,230,953
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13)
680 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 (4) 727,498
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.000%, 1/01/20 (Pre-refunded 1/01/13)
10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 11,747,358
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.250%, 10/01/30 (Pre-refunded 10/01/11) - FSA Insured
690 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call Aaa 802,808
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 Aa3 (4) 2,725,250
Bonds, Series 2002B, 5.625%, 8/01/18
(Pre-refunded 8/01/12) - FGIC Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 2001A:
5,525 5.375%, 11/01/20 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A- (4) 5,998,327
3,185 5.000%, 11/01/31 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A- (4) 3,413,237
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A1 (4) 1,114,209
Tax Increment Financing District Bonds, Center Triangle
Project, Series 1999A, 6.100%, 5/01/19
(Pre-refunded 5/01/09)
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AA (4) 6,454,776
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
(Pre-refunded 9/15/11) - FGIC Insured
960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,050,643
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AA (4) 2,136,560
General Obligation Bonds, Series 2000, 5.800%, 6/15/30
(Pre-refunded 12/15/10) - MBIA Insured
3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 N/R (4) 3,498,120
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
3,775 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 4,522,563
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
65,900 Total U.S. Guaranteed 71,433,939
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 7.0% (4.1% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call Aa3 1,232,038
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
1,210 Carbon County Industrial Development Authority, No Opt. Call BBB- 1,222,463
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
1,430 Lehigh County Industrial Development Authority, 2/15 at 100.00 A- 1,225,910
Pennsylvania, Pollution Control Revenue Bonds,
Pennsylvania Power and Light Company, Series 2005,
4.750%, 2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 648,487
General Ordinance, Fifth Series 2004A-1,
5.000%, 9/01/26 - FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,033,220
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
5,490 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 10/17 at 100.00 AA 4,368,228
Seventh Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
3,700 York County Industrial Development Authority, 3/12 at 101.00 Baa1 3,013,539
Pennsylvania, Pollution Control Revenue Refunding Bonds,
PSEG Power Project, Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
15,780 Total Utilities 13,743,885
------------------------------------------------------------------------------------------------------------------------------------
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.0% (4.1% OF TOTAL INVESTMENTS)
$ 2,100 Allegheny County Sanitary Authority, Pennsylvania, 12/15 at 100.00 AA $ 1,960,665
Sewerage Revenue Bonds, Series 2005A, 5.000%, 12/01/21 -
MBIA Insured
2,205 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,156,975
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AA 4,026,950
Pennsylvania, Water Facilities Revenue Bonds, Philadelphia
Water Company, Series 2001, 5.350%, 10/01/31 -
AMBAC Insured (Alternative Minimum Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 1,941,900
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
1,815 Philadelphia, Pennsylvania, Water and Wastewater 11/12 at 100.00 A- 1,579,976
Revenue Bonds, Series 2001A, 5.000%, 11/01/31 -
FGIC Insured
2,150 Philadelphia, Pennsylvania, Water and Wastewater 7/15 at 100.00 AAA 2,093,198
Revenue Bonds, Series 2005A, 5.000%, 7/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,270 Total Water and Sewer 13,759,664
------------------------------------------------------------------------------------------------------------------------------------
$ 366,810 Total Investments (cost $362,178,614) - 170.0% 333,292,706
=============-----------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (10.9)% (21,310,000)
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 8.2% 16,098,261
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (67.3)% (5) (132,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $196,080,967
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 39.6%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected
as a financing transaction pursuant to the provisions of
SFAS No. 140.
See accompanying notes to financial statements.
53
NPY
Nuveen Pennsylvania Premium Income Municipal Fund 2
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 24.1% (15.1% OF TOTAL INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 N/R $ 745,649
Pennsylvania, College Revenue Bonds, Thiel College,
Series 1999A, 5.375%, 11/15/29 - ACA Insured
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 160,664
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 A- 1,233,036
Pennsylvania, Revenue Bonds, Duquesne University,
Series 2004A, 5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 803,552
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 4/09 at 102.00 BB+ 2,221,650
Pennsylvania, College Revenue Bonds, Immaculata
College, Series 1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AA 1,521,916
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AA 743,081
Delaware County Authority, Pennsylvania, Revenue Refunding
Bonds, Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AA 1,714,105
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AA 1,345,208
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AA 983,500
Erie Higher Education Building Authority, Pennsylvania,
College Revenue Bonds, Gannon University, Series 2007-GG3:
725 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 BBB+ 561,737
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB+ 188,655
3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 AA 2,783,223
Pennsylvania, Revenue Bonds, Student Cooperative
Association Inc./Indiana University of Pennsylvania - Student
Union Project, Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 A3 1,213,459
Pennsylvania, Revenue Bonds, Arcadia University,
Series 2006, 4.500%, 4/01/30 - RAAI Insured
325 New Wilmington, Pennsylvania, Revenue, Westminster 5/17 at 100.00 BBB+ 254,709
College, Series 2007G, 5.125%, 5/01/33 - RAAI Insured
4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aa3 4,099,543
General Revenue Bonds, State System of Higher
Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured
4,200 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 3,849,510
General Revenue Bonds, State System of Higher Education,
Series 2008AH, 5.000%, 6/15/33
1,285 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 1,047,943
Revenue Bonds, Allegheny College, Series 2006,
4.750%, 5/01/31
2,420 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA 2,170,208
Revenue Bonds, Drexel University, Series 2007A,
5.000%, 5/01/37 - MBIA Insured
3,000 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA 2,958,960
Revenue Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
1,845 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,636,589
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.000%, 1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA+ 1,800,480
Revenue Bonds, University of Pennsylvania,
Series 2005C, 5.000%, 7/15/38
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,310 Pennsylvania Higher Educational Facilities Authority, 7/13 at 100.00 A- $ 1,226,671
Revenue Bonds, Ursinus College, Series 2003,
5.500%, 1/01/24 - RAAI Insured
800 Pennsylvania Higher Educational Facilities Authority, 11/15 at 100.00 A 747,120
Revenue Bonds, York College Project, Series 2005EE1,
5.250%, 11/01/27 - SYNCORA GTY Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 A3 791,380
University of the Sciences in Philadelphia Revenue Bonds,
Series 2005, 4.750%, 11/01/33 - SYNCORA GTY Insured
3,105 Pennsylvania State University, General Revenue Bonds, 8/16 at 100.00 AA 2,422,397
Tender Option Bond Trust 3214, 10.747%, 8/15/36 (IF)
Philadelphia Authority for Industrial Development,
Pennsylvania, Revenue Bonds, Franklin Towne
Charter High School, Series 2006A:
470 5.250%, 1/01/27 1/17 at 100.00 BBB 496,635
790 5.375%, 1/01/32 1/17 at 100.00 BBB 841,476
1,545 State Public School Building Authority, Pennsylvania, 5/15 at 100.00 Aa3 1,582,003
College Revenue Bonds, Montgomery County Community
College, Series 2005, 5.000%, 5/01/18 - AMBAC Insured
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 767,153
Pennsylvania, Revenue Bonds, Bucknell University,
Series 2002A, 5.250%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
47,560 Total Education and Civic Organizations 42,912,212
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.8% (8.7% OF TOTAL INVESTMENTS)
Allegheny County Hospital Development Authority,
Pennsylvania, Revenue Bonds, Ohio Valley General Hospital,
Series 2005A:
1,150 5.000%, 4/01/25 4/15 at 100.00 Baa2 841,858
1,455 5.125%, 4/01/35 4/15 at 100.00 Baa2 966,629
1,230 Erie County Hospital Authority, Pennsylvania, Revenue 11/12 at 100.00 AA 1,244,711
Bonds, Hamot Health Foundation, Series 2002,
5.250%, 11/01/16 - AMBAC Insured
395 Erie County Hospital Authority, Pennsylvania, Revenue 11/17 at 100.00 A- 322,055
Bonds, Hamot Health Foundation, Series 2007,
5.000%, 11/01/37 - CIFG Insured
1,885 Lancaster County Hospital Authority, Pennsylvania, 3/17 at 100.00 AA- 1,685,077
Hospital Revenue Bonds, The Lancaster General Hospital
Project, Series 2007A, 5.000%, 3/15/26
5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 4,237,300
Revenue Bonds, Good Samaritan Hospital Project,
Series 2002, 5.900%, 11/15/28
2,990 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 2,681,611
Hospital Revenue Bonds, Lehigh Valley Health Network,
Series 2008A, 5.000%, 7/01/33 - FSA Insured
1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,134,888
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
4,505 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 4,176,270
Revenue Bonds, Good Shepherd Group, Series 2007,
5.000%, 11/01/30 - AGC Insured
650 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 469,385
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 1/09 at 100.00 BB- 1,573,760
2,000 5.625%, 7/01/24 1/09 at 100.00 BB- 1,450,940
Sayre Health Care Facility Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 AA 1,649,663
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AA 1,148,496
970 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 499,550
Bonds, Guthrie Healthcare System, Series 2007,
4.263%, 12/01/31 - AMBAC Insured
55
NPY
Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
$ 475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 A3 $ 353,153
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 A3 237,791
------------------------------------------------------------------------------------------------------------------------------------
29,185 Total Health Care 24,673,137
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.7% (3.5% OF TOTAL INVESTMENTS)
3,260 Bucks County Redevelopment Authority, Pennsylvania, 2/09 at 100.00 Baa2 3,244,091
Section 8 Assisted Second Lien Multifamily Mortgage
Revenue Bonds, Country Commons Apartments,
Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 1,815,960
Pennsylvania, Multifamily Housing Revenue Bonds,
Darby Townhouses Project, Series 2002A, 5.500%, 4/01/32
(Mandatory put 4/01/22) (Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority,
Revenue Bonds, Slippery Rock University Foundation Inc.,
Student Housing Project, Series 2005A:
2,035 5.000%, 7/01/19 - SYNCORA GTY Insured 7/15 at 100.00 BBB- 1,895,175
3,400 5.000%, 7/01/37 - SYNCORA GTY Insured 7/15 at 100.00 BBB- 2,635,544
740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 551,855
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
11,435 Total Housing/Multifamily 10,142,625
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.0% (4.4% OF TOTAL INVESTMENTS)
880 Allegheny County Residential Finance Authority, 11/10 at 100.00 Aaa 767,325
Pennsylvania, GNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series 2000II-2,
5.900%, 11/01/32 (Alternative Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 2,878,640
Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
140 Pennsylvania Housing Finance Agency, Single Family 12/08 at 101.50 AA+ 126,820
Mortgage Revenue Bonds, Series 1998-62A,
5.500%, 10/01/22 (Alternative Minimum Tax)
1,365 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 1,091,181
Mortgage Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
3,295 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 2,500,444
Mortgage Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,006,426
Mortgage Revenue Bonds, Series 2007-97A,
4.600%, 10/01/27 (Alternative Minimum Tax)
1,710 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 1,262,732
Mortgage Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
Pennsylvania Housing Finance Agency, Single Family
Mortgage Revenue Bonds, Series 2008-103-C:
430 5.200%, 10/01/28 10/17 at 100.00 AA+ 385,250
1,900 5.450%, 10/01/38 10/17 at 100.00 AA+ 1,681,310
765 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/09 at 100.00 AAA 744,705
Mortgage Revenue Bonds, Series 1997A,
6.200%, 10/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,840 Total Housing/Single Family 12,444,833
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.4% (2.1% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/09 at 100.00 BB- 1,600,620
Solid Waste Disposal Revenue Bonds, New Morgan Landfill
Company Inc., Series 1994, 6.500%, 4/01/19
(Alternative Minimum Tax)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A2 1,616,760
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AA 2,790,865
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 6,008,245
------------------------------------------------------------------------------------------------------------------------------------
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.5% (3.5% OF TOTAL INVESTMENTS)
$ 1,100 Chester County Health and Education Facilities Authority, 12/08 at 100.00 BBB- $ 890,417
Pennsylvania, Mortgage Revenue Refunding Bonds,
Tel Hai Obligated Group, Series 1998, 5.500%, 6/01/25
4,905 Cumberland County Municipal Authority, Pennsylvania, 1/17 at 100.00 N/R 3,422,219
Revenue Bonds, Diakon Lutheran Social Ministries,
Series 2007, 5.000%, 1/01/36
1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 BBB+ 797,400
Revenue Bonds, Presbyterian Homes Inc., Series 2003A,
5.000%, 12/01/22 - RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health
Center Revenue Bonds, Masonic Homes Project, Series 2006:
1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,187,929
230 5.000%, 11/01/36 11/16 at 100.00 A+ 169,420
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 2/09 at 100.00 BBB+ 982,000
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 BBB+ 1,631,700
1,230 Pennsylvania Economic Development Financing Authority, 12/08 at 100.00 BB+ 798,578
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A, 5.250%, 6/01/28
------------------------------------------------------------------------------------------------------------------------------------
13,030 Total Long-Term Care 9,879,663
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.3% (1.4% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 891,072
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 433,875
Environmental Improvement Revenue Refunding Bonds,
Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 2,739,690
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 4,064,637
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 16.9% (10.6% OF TOTAL INVESTMENTS)
Harrisburg Redevelopment Authority, Dauphin County,
Pennsylvania, Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 752,535
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,146,173
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,101,568
260 Lower Merion School District, Montgomery County, 9/17 at 100.00 Aaa 263,130
Pennsylvania, General Obligation Bonds, Series 2007,
5.000%, 9/01/23
2,115 Owen J. Roberts School District, Chester County, 5/16 at 100.00 Aaa 2,083,529
Pennsylvania, General Obligation Bonds, Series 2006,
5.000%, 5/15/24 - FSA Insured
4,835 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 4,068,798
Residuals 1986, 10.386%, 3/01/27 (IF)
3,200 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 3,325,984
5.000%, 10/01/18
1,000 Pennsylvania, General Obligation Bonds, Second 1/16 at 100.00 AA 1,038,970
Series 2005, 5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General No Opt. Call Aa3 1,365,075
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 -
FGIC Insured
3,775 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 3,428,833
Improvement General Obligation Bonds, Series 2005,
5.000%, 7/15/35 - FSA Insured
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,840,643
Series 2006B, 5.250%, 9/01/16 - FSA Insured
6,710 Reading School District, Berks County, Pennsylvania, No Opt. Call AA 1,504,785
General Obligation Bonds, Series 2003B, 0.000%, 1/15/32 -
FGIC Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 N/R 354,013
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 N/R 452,897
57
NPY
Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,500 State Public School Building Authority, Pennsylvania, 5/13 at 100.00 Aaa $ 1,270,275
School Revenue Bonds, York City School District,
Series 2003, 4.000%, 5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,549,797
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 1,439,704
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
2,400 York County, Pennsylvania, General Obligation Bonds, 12/15 at 100.00 AA 2,199,912
Series 2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,030 Total Tax Obligation/General 30,186,621
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.3% (5.8% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AA 1,301,715
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
1,950 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/18 at 100.00 AA 1,781,813
Senior Lien Revenue Bonds, Series 2003A,
5.000%, 12/01/32 - MBIA Insured
5,015 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 5,139,623
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call Aaa 5,481,240
Revenue Bonds, Series 2007N, 5.500%, 7/01/29 -
AMBAC Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 586,022
Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AA 2,321,138
Transportation Authority, Series 2003AA, 5.500%, 7/01/19 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,750 Total Tax Obligation/Limited 16,611,551
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 20.5% (12.8% OF TOTAL INVESTMENTS)
650 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 661,921
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB 3,705,208
Revenue Bonds, Amtrak 30th Street Station Parking
Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue 12/11 at 101.00 AA 3,330,613
Bonds, Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue 6/16 at 100.00 AA 2,593,570
Bonds, Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
3,250 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AA 2,279,875
Series 2005A, 4.750%, 6/15/35 - MBIA Insured
(Alternative Minimum Tax)
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A+ 8,117,595
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 -
FGIC Insured (Alternative Minimum Tax)
6,525 Pittsburgh and Allegheny County Sports and Exhibition 12/08 at 100.00 Aa3 6,233,593
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.350%, 12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AA 1,747,360
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 -
FGIC Insured
2,250 Scranton Parking Authority, Pennsylvania, Guaranteed 6/17 at 100.00 BBB+ 1,765,260
Revenue Bonds, Series 2007, 5.250%, 6/01/39 -
RAAI Insured
940 Scranton Parking Authority, Pennsylvania, Guaranteed 9/13 at 100.00 AA 726,225
Parking Revenue Bonds, Series 2004, 5.000%, 9/15/33 -
FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aa3 5,385,929
Airport System Revenue Bonds, Series 2003B,
5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
43,170 Total Transportation 36,547,149
------------------------------------------------------------------------------------------------------------------------------------
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.6% (15.4% OF TOTAL INVESTMENTS) (4)
$ 1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AA (4) $ 1,814,769
Revenue Bonds, Series 2000, 5.500%, 12/01/30
(Pre-refunded 12/01/10) - MBIA Insured
1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/13 at 100.00 A+ (4) 1,305,084
Series 2003, 5.250%, 7/15/23 (Pre-refunded 7/15/13) -
FGIC Insured
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A2 (4) 1,753,777
Pennsylvania, Sewerage Revenue Bonds, Series 2004,
5.250%, 5/01/23 (Pre-refunded 5/01/14) - MBIA Insured
2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AA (4) 2,245,019
Series 2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) -
AMBAC Insured
2,600 Norristown Area School District, Montgomery County, 3/13 at 100.00 N/R (4) 2,789,488
Pennsylvania, General Obligation Bonds, Series 2003,
5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured
960 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,081,133
College Revenue Bonds, Ninth Series 1976,
7.625%, 7/01/15 (ETM)
2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 A3 (4) 2,218,776
Revenue Bonds, Philadelphia University, Series 2000,
6.000%, 6/01/29 (Pre-refunded 6/01/10) - RAAI Insured
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 Aaa 1,601,175
Revenue Bonds, Temple University, Series 2001,
5.000%, 7/15/31 (Pre-refunded 7/15/11) - MBIA Insured
3,905 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 (4) 4,177,764
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.000%, 1/01/32 (Pre-refunded 1/01/13)
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 5,935,724
General Ordinance, Second Series 1999, 5.000%, 7/01/29
(Pre-refunded 7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities
Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian
Medical Center of Philadelphia, Series 1993:
825 6.500%, 12/01/11 (ETM) No Opt. Call AAA 874,236
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,299,953
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,110,836
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
1,930 5.000%, 2/01/20 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1 (4) 2,053,887
1,955 5.000%, 2/01/21 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1 (4) 2,080,491
4,050 State Public School Building Authority, Pennsylvania, 6/13 at 100.00 AAA 4,321,877
Lease Revenue Bonds, Philadelphia School District,
Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) -
FSA Insured
2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,723,725
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,145 West View Borough Municipal Authority, Allegheny No Opt. Call AAA 1,371,744
County, Pennsylvania, Special Obligation Bonds,
Series 1985A, 9.500%, 11/15/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
40,595 Total U.S. Guaranteed 43,759,458
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 14.2% (8.9% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call Aa3 1,108,834
Pennsylvania, Pollution Control Revenue Refunding
Bonds, Duquesne Light Company, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, 12/08 at 102.00 Aaa 6,651,039
Pennsylvania, Exempt Facilities Revenue Bonds,
Shippingport Project, Series 1998A, 5.375%, 6/01/28 -
AMBAC Insured (Alternative Minimum Tax)
1,645 Carbon County Industrial Development Authority, No Opt. Call BBB- 1,661,944
Pennsylvania, Resource Recovery Revenue Refunding
Bonds, Panther Creek Partners Project, Series 2000,
6.650%, 5/01/10 (Alternative Minimum Tax)
7,590 Indiana County Industrial Development Authority, 11/08 at 101.00 AA 6,802,157
Pennsylvania, Pollution Control Revenue Bonds, Metropolitan
Edison Company, Series 1997A, 5.950%, 5/01/27 -
AMBAC Insured (Alternative Minimum Tax)
2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 1,574,360
Pennsylvania, Pollution Control Revenue Refunding
Bonds, PSEG Power LLC, Series 2001A, 5.850%, 6/01/27
(Alternative Minimum Tax)
59
NPY
Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 2,150 Lehigh County Industrial Development Authority, 2/15 at 100.00 A- $ 1,843,152
Pennsylvania, Pollution Control Revenue Bonds,
Pennsylvania Power and Light Company, Series 2005,
4.750%, 2/15/27 - FGIC Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 648,487
General Ordinance, Fifth Series 2004A-1,
5.000%, 9/01/26 - FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,016,610
General Ordinance, Seventeenth Series 2003,
5.375%, 7/01/19 - FSA Insured
5,050 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 10/17 at 100.00 AA 4,018,134
Seventh Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,260 Total Utilities 25,324,717
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.5% (7.8% OF TOTAL INVESTMENTS)
305 Allegheny County Sanitary Authority, Pennsylvania, 12/10 at 101.00 AA 301,907
Sewerage Revenue Bonds, Series 2000,
5.500%, 12/01/30 - MBIA Insured
Allegheny County Sanitary Authority, Pennsylvania,
Sewerage Revenue Bonds, Series 2005A:
1,900 5.000%, 12/01/21 - MBIA Insured 12/15 at 100.00 AA 1,773,935
2,120 5.000%, 12/01/23 - MBIA Insured 12/15 at 100.00 AA 1,946,923
545 5.000%, 12/01/30 - MBIA Insured 12/15 at 100.00 AA 466,880
2,500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,445,550
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, 3/12 at 100.00 AA- 3,276,160
Pennsylvania, Water Facility Revenue Bonds, Pennsylvania
Suburban Water Company, Series 2002, 5.550%, 9/01/32 -
FGIC Insured (Alternative Minimum Tax)
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 1,941,900
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
3,360 Mercer County Industrial Development Authority, 7/10 at 100.00 AA 2,977,498
Pennsylvania, Water Facility Revenue Bonds, Consumers
Water Company, Shenango Valley Division Project,
Series 2000, 6.000%, 7/01/30 - MBIA Insured
(Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania,
Sewer Revenue Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 N/R 1,065,718
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 N/R 2,347,968
2,000 Philadelphia, Pennsylvania, Water and Wastewater 7/15 at 100.00 AAA 1,947,160
Revenue Bonds, Series 2005A, 5.000%, 7/01/23 -
FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, 12/14 at 100.00 AAA 1,764,180
Sewerage Revenue Bonds, Series 2004, 5.000%, 12/01/34 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,405 Total Water and Sewer 22,255,779
------------------------------------------------------------------------------------------------------------------------------------
$ 328,200 Total Investments (cost $317,316,745) - 159.8% 284,810,627
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 6.5% 11,546,079
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (66.3)% (5) (118,100,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $178,256,706
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 41.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
60
NXM
Nuveen Pennsylvania Dividend Advantage Municipal Fund
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.4% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 906,470
Solid Waste Disposal Revenue Bonds, Procter & Gamble
Paper Project, Series 2001, 5.375%, 3/01/31
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 28.7% (18.1% OF TOTAL INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 80,332
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 165,644
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, 9/11 at 100.00 Aa3 2,037,690
Pennsylvania, Revenue Bonds, George School Project,
Series 2001, 5.125%, 9/15/31 - AMBAC Insured
700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 523,299
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 551,822
Pennsylvania, Avon Grove Charter School Revenue
Bonds, Series 2007A, 6.375%, 12/15/37
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB 839,790
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
300 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 A3 226,110
Bonds, Eastern University, Series 2006,
4.500%, 10/01/27 - RAAI Insured
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AA 286,879
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AA 139,931
160 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 BBB+ 123,970
College Revenue Bonds, Gannon University,
Series 2007-GG3, 5.000%, 5/01/32 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 A1 963,350
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/27 - MBIA Insured
75 New Wilmington, Pennsylvania, Revenue, Westminster 5/17 at 100.00 BBB+ 58,779
College, Series 2007G, 5.125%, 5/01/33 - RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aa3 1,003,560
General Revenue Bonds, State System of Higher
Education, Series 2002W, 5.000%, 6/15/19 -
AMBAC Insured
900 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 824,895
General Revenue Bonds, State System of Higher
Education, Series 2008AH, 5.000%, 6/15/33
220 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 179,414
Revenue Bonds, Allegheny College, Series 2006,
4.750%, 5/01/31
540 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA 484,261
Revenue Bonds, Drexel University, Series 2007A,
5.000%, 5/01/37 - MBIA Insured
1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 BBB+ 1,220,475
Revenue Bonds, Moravian College, Series 2001,
5.375%, 7/01/31 - RAAI Insured
700 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA 690,424
Revenue Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
350 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 359,926
Revenue Bonds, Thomas Jefferson University,
Series 2002, 5.500%, 1/01/16
61
NXM
Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 255 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB $ 269,451
Pennsylvania, Revenue Bonds, Franklin Towne Charter
High School, Series 2006A, 5.250%, 1/01/27
470 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BB 302,877
Pennsylvania, Revenue Bonds, Leadership Learning
Partners, Series 2005A, 5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 175,704
Pennsylvania, Revenue Bonds, Richard Allen Preparatory
Charter School, Series 2006, 6.250%, 5/01/33
------------------------------------------------------------------------------------------------------------------------------------
13,145 Total Education and Civic Organizations 11,508,583
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.6% (14.3% OF TOTAL INVESTMENTS)
550 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 365,393
Pennsylvania, Revenue Bonds, Ohio Valley General
Hospital, Series 2005A, 5.125%, 4/01/35
640 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- 539,546
Bonds, Sacred Heart Hospital, Series 2005,
6.000%, 11/15/16
2,500 Chester County Health and Educational Facilities 11/08 at 101.00 AA- 2,326,550
Authority, Pennsylvania, Health System Revenue Bonds,
Jefferson Health System, Series 1997B, 5.375%, 5/15/27
80 Erie County Hospital Authority, Pennsylvania, Revenue 11/17 at 100.00 A- 65,226
Bonds, Hamot Health Foundation, Series 2007,
5.000%, 11/01/37 - CIFG Insured
230 Fulton County, Pennsylvania, Industrial Development 7/16 at 100.00 N/R 157,886
Authority Hospital Revenue Bonds, Fulton County Medical
Center Project, Series 2006, 5.900%, 7/01/40
650 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 582,959
Hospital Revenue Bonds, Lehigh Valley Health Network,
Series 2008A, 5.000%, 7/01/33 - FSA Insured
250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 226,978
Revenue Bonds, Good Shepherd Group, Series 2004A,
5.500%, 11/01/24
1,025 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 915,817
Revenue Bonds, Good Shepherd Group, Series 2007,
5.000%, 11/01/37 - AGC Insured
140 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 101,098
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
2,150 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 2,046,112
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
25 Pottsville Hospital Authority, Pennsylvania, Hospital Revenue 1/09 at 100.00 BB- 18,137
Bonds, Pottsville Hospital and Warne Clinic, Series 1998,
5.625%, 7/01/24
215 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 110,725
Bonds, Guthrie Healthcare System, Series 2007,
4.263%, 12/01/31 - AMBAC Insured
1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 967,560
Revenue Bonds, Monongahela Valley Hospital Project,
Series 2002, 5.500%, 6/01/17
750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 637,470
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
10,205 Total Health Care 9,061,457
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 542,612
Revenue Bonds, Slippery Rock University Foundation Inc.,
Student Housing Project, Series 2005A, 5.000%, 7/01/37 -
SYNCORA GTY Insured
100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 74,575
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 617,187
------------------------------------------------------------------------------------------------------------------------------------
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.1% (5.1% OF TOTAL INVESTMENTS)
$ 1,495 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa $ 1,249,641
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 1998DD-2,
5.400%, 11/01/29 (Alternative Minimum Tax)
500 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 359,830
Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
480 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 383,712
Mortgage Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
700 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 531,202
Mortgage Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
430 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 317,529
Mortgage Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
450 Pennsylvania Housing Finance Agency, Single Family 10/17 at 100.00 AA+ 398,205
Mortgage Revenue Bonds, Series 2008-103-C,
5.450%, 10/01/38
------------------------------------------------------------------------------------------------------------------------------------
4,055 Total Housing/Single Family 3,240,119
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 7.2% (4.6% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A2 1,616,760
Exempt Facilities Revenue Bonds, Amtrak Project,
Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AA 1,268,575
Development Revenue Bonds, Series 2002,
5.500%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 2,885,335
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 18.2% (11.5% OF TOTAL INVESTMENTS)
Bucks County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Lutheran Community at Telford Center, Series 2007:
220 5.750%, 1/01/27 1/17 at 100.00 N/R 159,280
360 5.750%, 1/01/37 1/17 at 100.00 N/R 241,369
265 Cumberland County Municipal Authority, Pennsylvania, 1/17 at 100.00 N/R 184,891
Revenue Bonds, Diakon Lutheran Social Ministries,
Series 2007, 5.000%, 1/01/36
200 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ 147,322
Health Center Revenue Bonds, Masonic Homes Project,
Series 2006, 5.000%, 11/01/36
2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 1,842,309
Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
185 Lancaster County Hospital Authority, Pennsylvania, 7/17 at 100.00 N/R 146,189
Revenue Bonds, Brethren Village Project, Series 2008A,
6.375%, 7/01/30
785 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 543,032
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A:
1,240 5.250%, 6/01/14 12/08 at 100.00 BB+ 1,064,900
50 5.125%, 6/01/18 12/08 at 100.00 BB+ 38,191
Philadelphia Authority for Industrial Development,
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B:
670 5.250%, 7/01/23 - AMBAC Insured 7/11 at 101.00 AA 592,092
2,875 5.250%, 7/01/31 - AMBAC Insured 7/11 at 101.00 AA 2,360,461
------------------------------------------------------------------------------------------------------------------------------------
8,950 Total Long-Term Care 7,320,036
------------------------------------------------------------------------------------------------------------------------------------
63
NXM
Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.1% (2.6% OF TOTAL INVESTMENTS)
$ 350 Allegheny County Industrial Development Authority, No Opt. Call Baa3 $ 303,692
Pennsylvania, Revenue Bonds, United States Steel
Corporation, Series 2005, 5.500%, 11/01/16
210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 157,248
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
750 Bucks County Industrial Development Authority, No Opt. Call BBB+ 726,165
Pennsylvania, Environmental Improvement Revenue Bonds,
USX Corporation Project, Series 1995, 5.400%, 11/01/17
(Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 456,615
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 1,643,720
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.3% (9.0% OF TOTAL INVESTMENTS)
300 Pennsylvania, General Obligation Bonds, 10/16 at 100.00 AA 311,811
First Series 2006, 5.000%, 10/01/18
375 Philadelphia School District, Pennsylvania, General No Opt. Call Aa3 341,269
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 -
FGIC Insured
840 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 762,972
Improvement General Obligation Bonds, Series 2005,
5.000%, 7/15/35 - FSA Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,263,757
General Obligation Refunding Bonds, Series 2002A,
5.500%, 9/01/14 - FSA Insured
2,220 Reading School District, Berks County, Pennsylvania, No Opt. Call AA 497,857
General Obligation Bonds, Series 2003B, 0.000%, 1/15/32 -
FGIC Insured
600 York County, Pennsylvania, General Obligation Bonds, 12/15 at 100.00 AA 549,978
Series 2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,335 Total Tax Obligation/General 5,727,644
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 15.1% (9.5% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 762,090
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
450 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AA 390,515
Convention Center Revenue Bonds, Series 2005,
5.000%, 1/15/36 - FGIC Insured
425 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 388,344
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 -
MBIA Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee No Opt. Call AAA 1,053,400
Revenue Bonds, Series 2005A, 5.250%, 7/15/18 -
FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 1,024,850
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 -
FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, 4/12 at 100.00 AA 1,501,350
Revenue Bonds, Philadelphia Neighborhood Transformation
Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured
750 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AA 632,243
Revenue Bonds, Series 2007N, 5.250%, 7/01/33 -
MBIA Insured
630 Puerto Rico Infrastructure Financing Authority, Special No Opt. Call BBB+ 128,192
Tax Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
250 Washington County Redevelopment Authority, 7/17 at 100.00 N/R 174,343
Pennsylvania, Tanger Outlet Victory Center Tax Increment
Bonds, Series 2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
7,005 Total Tax Obligation/Limited 6,055,327
------------------------------------------------------------------------------------------------------------------------------------
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.4% (7.8% OF TOTAL INVESTMENTS)
$ 130 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 $ 132,384
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB 805,480
Revenue Bonds, Amtrak 30th Street Station Parking
Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue 6/16 at 100.00 AA 406,455
Bonds, Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A+ 1,420,580
Pennsylvania, Airport Revenue Bonds, Philadelphia Airport
System Project, Series 2001A, 5.250%, 7/01/28 -
FGIC Insured (Alternative Minimum Tax)
2,210 Pittsburgh and Allegheny County Sports and Exhibition 12/08 at 100.00 Aa3 2,080,671
Authority, Pennsylvania, Parking Revenue Bonds,
Series 2001A, 5.375%, 12/01/30 - AMBAC Insured
160 Scranton Parking Authority, Pennsylvania, Guaranteed 9/13 at 100.00 AA 123,613
Parking Revenue Bonds, Series 2004, 5.000%, 9/15/33 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,670 Total Transportation 4,969,183
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 16.8% (10.7% OF TOTAL INVESTMENTS) (4)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,161,100
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
(Pre-refunded 1/01/13)
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AA- (4) 1,190,494
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17
(Pre-refunded 2/15/12) - FGIC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,088,150
1,000 5.250%, 8/01/19 (Pre-refunded 8/01/13) - FSA Insured 8/13 at 100.00 AAA 1,088,150
160 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call Aaa 186,158
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
1,700 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 1,853,170
Obligation Bonds, Series 2002B, 5.625%, 8/01/18
(Pre-refunded 8/01/12) - FGIC Insured
170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 186,051
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
6,135 Total U.S. Guaranteed 6,753,273
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2% (2.7% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call Aa3 492,815
Pennsylvania, Pollution Control Revenue Refunding
Bonds, Duquesne Light Company, Series 1999A,
4.350%, 12/01/13 - AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 189,833
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 129,697
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
1,105 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 10/17 at 100.00 AA 879,215
Seventh Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,030 Total Utilities 1,691,560
------------------------------------------------------------------------------------------------------------------------------------
65
NXM
Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.7% (1.7% OF TOTAL INVESTMENTS)
$ 500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA $ 489,110
Pennsylvania, Guaranteed Water Revenue Bonds,
Series 2004, 5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 582,570
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,071,680
------------------------------------------------------------------------------------------------------------------------------------
$ 72,740 Total Investments (cost $70,668,835) - 158.2% 63,451,574
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.1% 1,665,694
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (62.3)% (5) (25,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $40,117,268
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's) rating. Ratings below BBB by Standard & Poor's or
Baa by Moody's are considered to be below investment grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(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) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 39.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
66
NVY
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
Portfolio of INVESTMENTS
October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.8% (12.3% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 803,320
Pennsylvania, College Revenue Refunding Bonds,
Robert Morris College, Series 1998A, 6.000%, 5/01/28
800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 598,056
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 551,822
Pennsylvania, Avon Grove Charter School Revenue Bonds,
Series 2007A, 6.375%, 12/15/37
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB 272,932
Refunding Bonds, Neumann College, Series 2001,
6.000%, 10/01/31
450 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 A3 339,165
Bonds, Eastern University, Series 2006, 4.500%, 10/01/27 -
RAAI Insured
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AA 330,640
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AA 159,232
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AA 1,449,953
Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 -
FGIC Insured
180 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 BBB+ 139,466
College Revenue Bonds, Gannon University,
Series 2007-GG3, 5.000%, 5/01/32 - RAAI Insured
80 New Wilmington, Pennsylvania, Revenue, Westminster 5/17 at 100.00 BBB+ 62,698
College, Series 2007G, 5.125%, 5/01/33 - RAAI Insured
1,050 Pennsylvania Higher Educational Facilities Authority, General 6/18 at 100.00 Aa3 962,378
Revenue Bonds, State System of Higher Education,
Series 2008AH, 5.000%, 6/15/33
285 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 232,423
Revenue Bonds, Allegheny College, Series 2006,
4.750%, 5/01/31
610 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA 547,036
Revenue Bonds, Drexel University, Series 2007A,
5.000%, 5/01/37 - MBIA Insured
800 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA 789,056
Revenue Bonds, Temple University, First Series of 2006,
5.000%, 4/01/21 - MBIA Insured
315 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 332,851
Pennsylvania, Revenue Bonds, Franklin Towne Charter
High School, Series 2006A, 5.250%, 1/01/27
530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BB 341,543
Pennsylvania, Revenue Bonds, Leadership Learning
Partners, Series 2005A, 5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 206,261
Pennsylvania, Revenue Bonds, Richard Allen Preparatory
Charter School, Series 2006, 6.250%, 5/01/33
1,000 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,016,090
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
10,355 Total Education and Civic Organizations 9,134,922
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 15.4% (9.6% OF TOTAL INVESTMENTS)
625 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 415,219
Pennsylvania, Revenue Bonds, Ohio Valley General
Hospital, Series 2005A, 5.125%, 4/01/35
735 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- 619,634
Bonds, Sacred Heart Hospital, Series 2005,
6.000%, 11/15/16
67
NVY
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,000 Chester County Health and Educational Facilities Authority, 11/08 at 101.00 AA- $ 1,861,240
Pennsylvania, Health System Revenue Bonds,
Jefferson Health System, Series 1997B, 5.375%, 5/15/27
95 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 77,456
Hamot Health Foundation, Series 2007,
5.000%, 11/01/37 - CIFG Insured
270 Fulton County, Pennsylvania, Industrial Development 7/16 at 100.00 N/R 185,344
Authority Hospital Revenue Bonds, Fulton County Medical
Center Project, Series 2006, 5.900%, 7/01/40
740 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 663,676
Hospital Revenue Bonds, Lehigh Valley Health Network,
Series 2008A, 5.000%, 7/01/33 - FSA Insured
1,155 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 1,031,969
Revenue Bonds, Good Shepherd Group, Series 2007,
5.000%, 11/01/37 - AGC Insured
160 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 115,541
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
70 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 66,618
Revenue Bonds, UPMC Health System, Series 2001A,
6.000%, 1/15/31
245 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 126,175
Bonds, Guthrie Healthcare System, Series 2007,
4.263%, 12/01/31 - AMBAC Insured
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,409,893
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 23,026
600 6.250%, 1/01/32 1/12 at 100.00 BBB 509,976
------------------------------------------------------------------------------------------------------------------------------------
8,170 Total Health Care 7,105,767
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 620,128
Revenue Bonds, Slippery Rock University Foundation Inc.,
Student Housing Project, Series 2005A, 5.000%, 7/01/37 -
SYNCORA GTY Insured
120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 89,490
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 709,618
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.6% (4.1% OF TOTAL INVESTMENTS)
500 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 359,830
Mortgage Revenue Bonds, Series 1995A,
4.900%, 10/01/37 (Alternative Minimum Tax)
550 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 439,670
Mortgage Revenue Bonds, Series 2006-93A,
4.950%, 10/01/26 (Alternative Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 607,088
Mortgage Revenue Bonds, Series 2006-94A,
5.150%, 10/01/37 (Alternative Minimum Tax)
1,100 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 817,025
Mortgage Revenue Bonds, Series 2007-97A,
4.600%, 10/01/27 (Alternative Minimum Tax)
480 Pennsylvania Housing Finance Agency, Single Family 10/16 at 100.00 AA+ 354,451
Mortgage Revenue Bonds, Series 2007-98A,
4.850%, 10/01/31 (Alternative Minimum Tax)
500 Pennsylvania Housing Finance Agency, Single Family 10/17 at 100.00 AA+ 442,450
Mortgage Revenue Bonds, Series 2008-103-C,
5.450%, 10/01/38
------------------------------------------------------------------------------------------------------------------------------------
3,930 Total Housing/Single Family 3,020,514
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.6% (4.1% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AA 3,046,560
Development Revenue Bonds, Series 2002,
5.500%, 7/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 7.1% (4.4% OF TOTAL INVESTMENTS)
Bucks County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Lutheran Community at Telford Center, Series
2007:
$ 250 5.750%, 1/01/27 1/17 at 100.00 N/R $ 181,000
400 5.750%, 1/01/37 1/17 at 100.00 N/R 268,188
300 Cumberland County Municipal Authority, Pennsylvania, 1/17 at 100.00 N/R 209,310
Revenue Bonds, Diakon Lutheran Social Ministries,
Series 2007, 5.000%, 1/01/36
205 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ 151,005
Health Center Revenue Bonds, Masonic Homes Project,
Series 2006, 5.000%, 11/01/36
185 Lancaster County Hospital Authority, Pennsylvania, 7/17 at 100.00 N/R 146,189
Revenue Bonds, Brethren Village Project, Series 2008A,
6.375%, 7/01/30
785 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 543,032
Health Center Revenue Bonds, Pleasant View Retirement
Community, Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Northwestern Human Services Inc.,
Series 1998A:
1,260 5.250%, 6/01/14 12/08 at 100.00 BB+ 1,082,075
50 5.125%, 6/01/18 12/08 at 100.00 BB+ 38,191
750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA 662,790
Pennsylvania, Revenue Bonds, Philadelphia Corporation
for the Aging Project, Series 2001B, 5.250%, 7/01/23 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
4,185 Total Long-Term Care 3,281,780
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.3% (2.7% OF TOTAL INVESTMENTS)
400 Allegheny County Industrial Development Authority, No Opt. Call Baa3 347,076
Pennsylvania, Revenue Bonds, United States Steel
Corporation, Series 2005, 5.500%, 11/01/16
280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 209,664
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B,
5.200%, 12/01/19 (Alternative Minimum Tax)
1,000 Bucks County Industrial Development Authority, No Opt. Call BBB+ 968,220
Pennsylvania, Environmental Improvement Revenue Bonds,
USX Corporation Project, Series 1995, 5.400%, 11/01/17
(Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 456,615
Exempt Facilities Revenue Bonds, National Gypsum
Company, Series 1997B, 6.125%, 11/01/27
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 1,981,575
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 22.4% (13.9% OF TOTAL INVESTMENTS)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AA 1,701,755
General Obligation Bonds, Series 2002A,
5.375%, 10/01/26 - FGIC Insured
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,240,356
Local Government Revenue Bonds, Series 2002,
5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AA 757,727
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AA 1,045,140
375 Philadelphia School District, Pennsylvania, General No Opt. Call Aa3 341,269
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 -
FGIC Insured
950 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 862,885
Improvement General Obligation Bonds, Series 2005,
5.000%, 7/15/35 - FSA Insured
225 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 236,720
Series 2006B, 5.250%, 9/01/16 - FSA Insured
2,510 Reading School District, Berks County, Pennsylvania, No Opt. Call AA 562,893
General Obligation Bonds, Series 2003B, 0.000%, 1/15/32 -
FGIC Insured
600 York County, Pennsylvania, General Obligation Bonds, 12/15 at 100.00 AA 549,978
Series 2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,125 Total Tax Obligation/General 10,298,723
------------------------------------------------------------------------------------------------------------------------------------
69
NVY
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.5% (15.8% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R $ 762,090
TIF Revenue Bonds, Pittsburg Mills Project, Series 2004,
5.600%, 7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AA 1,759,100
Pennsylvania, Revenue Bonds, County Guaranteed,
Woodland Place Project, Series 2002, 5.400%, 3/01/31 -
FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed 9/11 at 100.00 A2 3,822,680
Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 -
MBIA Insured
485 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 443,169
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 -
MBIA Insured (4)
1,200 Pennsylvania Turnpike Commission, Registration Fee No Opt. Call AAA 1,264,080
Revenue Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AA 1,006,120
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AA 1,699,775
800 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AA 674,392
Revenue Bonds, Series 2007N, 5.250%, 7/01/33 -
MBIA Insured
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 144,471
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 -
FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 174,343
Tanger Outlet Victory Center Tax Increment Bonds,
Series 2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
13,195 Total Tax Obligation/Limited 11,750,220
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.5% (3.4% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, New Jersey 7/13 at 100.00 A2 132,384
and Pennsylvania, Revenue Bonds, Series 2003,
5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB 805,480
Revenue Bonds, Amtrak 30th Street Station Parking
Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured
(Alternative Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue 6/16 at 100.00 AA 648,393
Bonds, Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
180 Scranton Parking Authority, Pennsylvania, Guaranteed 9/13 at 100.00 AA 139,064
Parking Revenue Bonds, Series 2004,
5.000%, 9/15/33 - FGIC Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aa3 788,840
Airport System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Transportation 2,514,161
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 34.0% (21.1% OF TOTAL INVESTMENTS) (5)
2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 N/R (5) 2,136,040
Series 2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) -
FGIC Insured
100 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 114,033
Pennsylvania, Revenue Bonds, West Penn Allegheny Health
System, Series 2000B, 9.250%, 11/15/22
(Pre-refunded 11/15/10)
1,155 Bucks County Industrial Development Authority, 10/12 at 101.00 N/R (5) 1,280,398
Pennsylvania, Revenue Bonds, Pennswood Village Project,
Series 2002A, 6.000%, 10/01/34 (Pre-refunded 10/01/12)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (5) 1,161,100
Retirement Community Revenue Bonds, Wesley Affiliated
Services Inc., Series 2002A, 7.125%, 1/01/25
(Pre-refunded 1/01/13)
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Baa1 (5) 551,144
Series 2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) -
MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AA (5) 3,181,749
Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) -
AMBAC Insured
2,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 2,141,640
Pennsylvania, Lease Revenue Bonds, Series 2001B,
5.125%, 10/01/26 (Pre-refunded 10/01/11) - FSA Insured
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (5) (continued)
$ 2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA $ 2,633,323
General Ordinance, Fourth Series 1998, 5.250%, 8/01/20
(Pre-refunded 8/01/13) - FSA Insured
65 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call Aaa 75,627
Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,153,320
Obligation Bonds, Series 2002A, 5.500%, 2/01/31
(Pre-refunded 2/01/12) - FSA Insured
225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (5) 246,245
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
15,010 Total U.S. Guaranteed 15,674,619
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 2.9% (1.8% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 209,815
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 134,329
General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 -
FSA Insured
1,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 10/17 at 100.00 AA 986,631
Seventh Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,700 Total Utilities 1,330,775
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.3% (5.8% OF TOTAL INVESTMENTS)
4,500 Bucks County Industrial Development Authority, 3/12 at 100.00 AA- 3,685,680
Pennsylvania, Water Facility Revenue Bonds, Pennsylvania
Suburban Water Company, Series 2002, 5.550%, 9/01/32 -
FGIC Insured (Alternative Minimum Tax)
600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 582,570
Water Revenue Refunding Bonds, Series 2004,
5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 4,268,250
------------------------------------------------------------------------------------------------------------------------------------
$ 83,100 Total Investments (cost $80,789,985) - 160.9% 74,117,484
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.0% 438,051
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (61.9)% (6) (28,500,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $46,055,535
====================================================================================================================
71
NVY
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
Portfolio of INVESTMENTS October 31, 2008 (Unaudited)
FUTURES CONTRACTS OUTSTANDING AT OCTOBER 31, 2008:
UNREALIZED
CONTRACT NUMBER OF CONTRACT VALUE AT APPRECIATION
TYPE POSITION CONTRACTS EXPIRATION OCTOBER 31, 2008 (DEPRECIATION)
--------------------------------------------------------------------------------------------------------------------
U.S. Treasury Bond Long 20 12/08 $2,262,500 $ (87,082)
====================================================================================================================
(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: 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: Using the higher of Standard & Poor's Group
("Standard & Poor's") or Moody's Investor Service, Inc.
("Moody's") rating. Ratings below BBB by Standard & Poor's
or Baa by Moody's are considered to be below investment
grade.
The Portfolio of Investments may reflect the ratings on
certain bonds insured by ACA, AGC, AMBAC, CIFG, FGIC, FSA,
MBIA, RAAI and SYNCORA as of October 31, 2008. Please see
the Portfolio Manager's Commentary for an expanded
discussion of the affect on the Fund of changes to the
ratings of certain bonds in the portfolio resulting from
changes to the ratings of the underlying insurers both
during the period and after period end.
(4) Portion of investment has been pledged to collateralize the
net payment obligations under futures contracts.
(5) 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.
(6) Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 38.5%.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
72
Statement of
ASSETS & LIABILITIES
October 31, 2008 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $432,751,083, $256,180,716,
$136,372,034 and $96,425,385, respectively) $391,473,060 $237,303,835 $121,556,055 $86,433,657
Cash 14,164,538 5,290,548 3,350,826 1,163,574
Deposits with brokers for open futures contracts -- 41,089 -- --
Receivables:
Interest 6,961,582 3,849,699 2,196,949 1,561,406
Investments sold 505,000 -- 415,000 190,000
Other assets 59,658 35,470 5,959 5,790
------------------------------------------------------------------------------------------------------------------------------------
Total assets 413,163,838 246,520,641 127,524,789 89,354,427
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- --
Floating rate obligations -- -- -- --
Payables:
Investments purchased -- -- -- --
Variation margin on futures contracts -- 58,188 -- --
Common share dividends 960,430 529,546 341,502 249,663
Preferred share dividends 49,064 13,142 12,181 5,650
Accrued expenses:
Management fees 222,435 133,726 53,874 34,098
Other 135,978 85,133 32,407 25,803
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,367,907 819,735 439,964 315,214
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $249,795,931 $154,100,906 $ 79,084,825 $54,539,213
====================================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,577,112 4,523,121
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 12.19 $ 12.79 $ 12.02 $ 12.06
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,771 $ 45,231
Paid-in surplus 289,027,855 172,022,510 93,390,241 64,152,098
Undistributed (Over-distribution of) net investment income (732,505) (424,178) (211,266) (103,382)
Accumulated net realized gain (loss) from investments and
derivative transactions 2,573,761 1,472,311 656,058 436,994
Net unrealized appreciation (depreciation) of
investments and derivative transactions (41,278,023) (19,090,232) (14,815,979) (9,991,728)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $249,795,931 $154,100,906 $ 79,084,825 $54,539,213
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
73
Statement of
ASSETS & LIABILITIES (continued)
October 31, 2008 (Unaudited)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $362,178,614, $317,316,745
$70,668,835 and $80,789,985, respectively) $333,292,706 $284,810,627 $63,451,574 $74,117,484
Cash 12,180,568 7,709,009 824,368 --
Deposits with brokers for open futures contracts -- -- -- 14,885
Receivables:
Interest 5,609,406 5,594,257 1,203,462 1,161,152
Investments sold 200,000 60,000 60,000 65,000
Other assets 48,431 41,261 5,681 5,771
------------------------------------------------------------------------------------------------------------------------------------
Total assets 351,331,111 298,215,154 65,545,085 75,364,292
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- -- 285,063
Floating rate obligations 21,310,000 -- -- --
Payables:
Investments purchased 842,988 842,988 194,479 221,304
Variation margin on futures contracts -- -- -- 23,750
Common share dividends 772,523 715,064 178,253 209,450
Preferred share dividends 19,519 32,685 6,347 10,854
Accrued expenses:
Management fees 176,838 160,731 27,786 28,477
Other 128,276 106,980 20,952 29,859
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 23,250,144 1,858,448 427,817 808,757
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $196,080,967 $178,256,706 $40,117,268 $46,055,535
====================================================================================================================================
Common shares outstanding 16,161,598 15,670,651 3,332,584 3,725,809
====================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 12.13 $ 11.38 $ 12.04 $ 12.36
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 161,616 $ 156,707 $ 33,326 $ 37,258
Paid-in surplus 228,889,752 214,507,972 47,308,739 52,811,188
Undistributed (Over-distribution of) net investment income (476,252) 241,029 (45,264) (24,126)
Accumulated net realized gain (loss) from investments and
derivative transactions (3,608,241) (4,142,884) 37,728 (9,202)
Net unrealized appreciation (depreciation) of
investments and derivative transactions (28,885,908) (32,506,118) (7,217,261) (6,759,583)
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $196,080,967 $178,256,706 $40,117,268 $46,055,535
====================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
====================================================================================================================================
See accompanying notes to financial statements.
74
Statement of
OPERATIONS
Six Months Ended October 31, 2008 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 11,125,048 $ 6,384,570 $ 3,455,071 $ 2,455,951
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,395,103 834,726 443,754 311,724
Preferred shares - auction fees 204,165 115,441 60,493 43,479
Preferred shares - dividend disbursing agent fees 15,110 15,105 5,041 5,041
Shareholders' servicing agent fees and expenses 16,133 9,743 793 818
Interest expense on floating rate obligations -- -- -- --
Custodian's fees and expenses 34,419 27,772 14,157 12,039
Directors'/Trustees' fees and expenses 4,311 2,758 1,380 964
Professional fees 18,227 12,382 8,733 7,459
Shareholders' reports - printing and mailing expenses 29,750 18,146 11,558 9,251
Stock exchange listing fees 4,635 4,635 468 322
Investor relations expense 28,179 16,526 8,746 6,150
Other expenses 15,522 9,709 8,403 7,407
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,765,554 1,066,943 563,526 404,654
Custodian fee credit (24,556) (20,735) (6,520) (6,729)
Expense reimbursement -- -- (104,449) (97,645)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,740,998 1,046,208 452,557 300,280
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 9,384,050 5,338,362 3,002,514 2,155,671
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (703) (95,813) 171,665 (4,589)
Futures -- 166,151 -- --
Change in net unrealized appreciation (depreciation) of:
Investments (41,946,638) (21,793,298) (14,761,201) (10,287,834)
Futures -- (213,351) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (41,947,341) (21,936,311) (14,589,536) (10,292,423)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,136,756) (1,771,003) (919,738) (667,733)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (3,136,756) (1,771,003) (919,738) (667,733)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $(35,700,047) $(18,368,952) $(12,506,760) $ (8,804,485)
====================================================================================================================================
See accompanying notes to financial statements.
75
Statement of
OPERATIONS (continued)
Six Months Ended October 31, 2008 (Unaudited)
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 9,520,205 $ 8,615,227 $ 1,881,100 $ 2,113,573
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,121,463 1,025,442 229,660 259,376
Preferred shares - auction fees 166,356 148,838 31,507 35,918
Preferred shares - dividend disbursing agent fees 15,094 15,109 5,041 5,041
Shareholders' servicing agent fees and expenses 17,321 15,113 907 804
Interest expense on floating rate obligations 286,800 84,390 -- --
Custodian's fees and expenses 44,016 32,002 14,316 20,514
Directors'/Trustees' fees and expenses 3,681 2,154 730 816
Professional fees 14,379 14,468 6,686 6,942
Shareholders' reports - printing and mailing expenses 28,634 26,163 7,841 8,599
Stock exchange listing fees 4,635 4,635 237 265
Investor relations expense 24,082 22,264 4,948 5,786
Other expenses 13,255 9,552 7,577 7,706
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and
expense reimbursement 1,739,716 1,400,130 309,450 351,767
Custodian fee credit (10,561) (25,586) (2,600) (759)
Expense reimbursement -- -- (53,955) (81,246)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,729,155 1,374,544 252,895 269,762
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 7,791,050 7,240,683 1,628,205 1,843,811
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (671,608) (2,641,807) 153,952 (95,877)
Futures -- -- -- 66,461
Change in net unrealized appreciation (depreciation) of:
Investments (35,616,041) (34,572,641) (8,247,548) (7,824,725)
Futures -- -- -- (87,082)
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (36,287,649) (37,214,448) (8,093,596) (7,941,223)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (2,551,975) (2,289,259) (479,030) (550,933)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (2,551,975) (2,289,259) (479,030) (550,933)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $(31,048,574) $(32,263,024) $(6,944,421) $(6,648,345)
====================================================================================================================================
See accompanying notes to financial statements.
76
Statement of
CHANGES in NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ)
--------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 9,384,050 $ 18,787,832 $ 5,338,362 $ 10,807,974
Net realized gain (loss) from:
Investments (703) 1,697,124 (95,813) 1,002,315
Forward swaps -- 1,271,098 -- 560,840
Futures -- -- 166,151 --
Change in net unrealized appreciation (depreciation) of:
Investments (41,946,638) (16,370,030) (21,793,298) (7,924,293)
Forward swaps -- (2,853) -- (984)
Futures -- -- (213,351) --
Distributions to Preferred Shareholders:
From net investment income (3,136,756) (5,356,071) (1,771,003) (3,012,048)
From accumulated net realized gains -- (225,437) -- (175,613)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (35,700,047) (198,337) (18,368,952) 1,258,191
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (6,698,373) (13,396,750) (3,904,037) (7,926,161)
From accumulated net realized gains -- (612,481) -- (497,644)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (6,698,373) (14,009,231) (3,904,037) (8,423,805)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- -- --
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (42,398,420) (14,207,568) (22,272,989) (7,165,614)
Net assets applicable to Commo
shares at the beginning of period 292,194,351 306,401,919 176,373,895 183,539,509
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $249,795,931 $292,194,351 $154,100,906 $176,373,895
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (732,505) $ (281,426) $ (424,178) $ (87,500)
====================================================================================================================================
See accompanying notes to financial statements.
77
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
--------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,002,514 $ 6,154,007 $ 2,155,671 $ 4,379,414
Net realized gain (loss) from:
Investments 171,665 222,219 (4,589) 667,227
Forward swaps -- 372,082 -- 194,404
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (14,761,201) (5,887,711) (10,287,834) (4,419,598)
Forward swaps -- (590) -- (295)
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (919,738) (1,639,115) (667,733) (1,046,557)
From accumulated net realized gains -- (53,203) -- (214,756)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (12,506,760) (832,311) (8,804,485) (440,161)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,170,447) (4,465,787) (1,560,477) (3,231,672)
From accumulated net realized gains -- (176,924) -- (685,253)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (2,170,447) (4,642,711) (1,560,477) (3,916,925)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- 34,444 -- 23,495
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- 34,444 -- 23,495
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (14,677,207) (5,440,578) (10,364,962) (4,333,591)
Net assets applicable to Common
shares at the beginning of period 93,762,032 99,202,610 64,904,175 69,237,766
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 79,084,825 $93,762,032 $ 54,539,213 $64,904,175
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (211,266) $ (123,595) $ (103,382) $ (30,843)
====================================================================================================================================
See accompanying notes to financial statements.
78
PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM
QUALITY (NQP) INCOME 2 (NPY)
--------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 7,791,050 $ 15,437,317 $ 7,240,683 $ 14,156,508
Net realized gain (loss) from:
Investments (671,608) (700,898) (2,641,807) (976,106)
Forward swaps -- (1,940,455) -- (524,955)
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (35,616,041) (11,038,711) (34,572,641) (13,138,981)
Forward swaps -- 340,646 -- (181,467)
Futures -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (2,551,975) (4,735,546) (2,289,259) (4,100,251)
From accumulated net realized gains -- -- -- (267,657)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (31,048,574) (2,637,647) (32,263,024) (5,032,909)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (5,397,975) (10,625,493) (4,732,538) (9,656,362)
From accumulated net realized gains -- -- -- (688,161)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (5,397,975) (10,625,493) (4,732,538) (10,344,523)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- -- --
Repurchased -- (1,853,014) -- (2,020,258)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- (1,853,014) -- (2,020,258)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (36,446,549) (15,116,154) (36,995,562) (17,397,690)
Net assets applicable to Common
shares at the beginning of period 232,527,516 247,643,670 215,252,268 232,649,958
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $196,080,967 $232,527,516 $178,256,706 $215,252,268
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (476,252) $ (317,352) $ 241,029 $ 22,143
====================================================================================================================================
See accompanying notes to financial statements.
79
Statement of
CHANGES in NET ASSETS (continued) (Unaudited)
PENNSYLVANIA DIVIDEND PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM) ADVANTAGE 2 (NVY)
--------------------------- ----------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,628,205 $ 3,248,492 $ 1,843,811 $ 3,696,558
Net realized gain (loss) from:
Investments 153,952 20,306 (95,877) 74,310
Forward swaps -- -- -- --
Futures -- -- 66,461 --
Change in net unrealized appreciation (depreciation) of:
Investments (8,247,548) (2,827,071) (7,824,725) (3,075,387)
Forward swaps -- -- -- --
Futures -- -- (87,082) --
Distributions to Preferred Shareholders:
From net investment income (479,030) (849,664) (550,933) (970,796)
From accumulated net realized gains -- (54,170) -- (61,834)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations (6,944,421) (462,107) (6,648,345) (337,149)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (1,149,742) (2,342,752) (1,292,856) (2,635,991)
From accumulated net realized gains -- (171,961) -- (181,447)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (1,149,742) (2,514,713) (1,292,856) (2,817,438)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- 28,147 -- 9,543
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions -- 28,147 -- 9,543
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares (8,094,163) (2,948,673) (7,941,201) (3,145,044)
Net assets applicable to Common
shares at the beginning of period 48,211,431 51,160,104 53,996,736 57,141,780
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $40,117,268 $48,211,431 $46,055,535 $53,996,736
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ (45,264) $ (44,697) $ (24,126) $ (24,148)
====================================================================================================================================
See accompanying notes to financial statements.
80
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds covered in this report and their corresponding Common share
stock exchange symbols are Nuveen New Jersey Investment Quality Municipal Fund,
Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ), Nuveen
New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen New Jersey Dividend
Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania Investment Quality
Municipal Fund (NQP), Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY),
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) and Nuveen
Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (collectively, the
"Funds"). Common shares of New Jersey Investment Quality (NQJ), New Jersey
Premium Income (NNJ), Pennsylvania Investment Quality (NQP) and Pennsylvania
Premium Income 2 (NPY) are traded on the New York Stock Exchange while Common
shares of New Jersey Dividend Advantage (NXJ), New Jersey Dividend Advantage 2
(NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage
2 (NVY) are traded on the American Stock Exchange. The Funds are registered
under the Investment Company Act of 1940, as amended, as closed-end management
investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish 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. Futures
contracts are valued using the closing settlement price, or, in the absence of
such a price, at the mean of the bid and asked prices. If the pricing service is
unable to supply a price for an investment or derivative instrument, each Fund
may use market quotes provided by major broker/dealers in such investments. If
it is determined that the market price for an investment or derivative
instrument is unavailable or inappropriate, the Board of Directors/Trustees of
the Funds, or its designee, may establish fair value in accordance with
procedures established in good faith by the Board of Directors/Trustees.
Temporary investments in securities that have variable rate and demand features
qualifying them as short-term investments are valued at amortized cost, which
approximates 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/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, 2008, there
were no such outstanding purchase commitments in any of the Funds.
Investment Income
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
81
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its net investment income and net
capital gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
Effective October 31, 2007, the Funds adopted Financial Accounting Standards
Board (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 affirmative evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether it
is "more-likely-than-not" (i.e., a greater than 50-percent likelihood) of being
sustained by the applicable tax authority. Tax positions not deemed to meet the
more-likely-than-not threshold may result in a tax expense in the current year.
Implementation of FIN 48 required management of the Funds to analyze all open
tax years, as defined by the statute of limitations, for all major
jurisdictions, which includes federal and certain states. Open tax years are
those that are open for examination by taxing authorities (i.e., generally the
last four tax year ends and the interim tax period since then). The Funds have
no examinations in progress.
For all open tax years and all major taxing jurisdictions through the end of the
reporting period, management of the Funds has reviewed all tax positions taken
or expected to be taken in the preparation of the Funds' tax returns and
concluded the adoption of FIN 48 resulted in no impact to the Funds' net assets
or results of operations as of and during the six months ended October 31, 2008.
The Funds are also not aware of any tax positions for which it is reasonably
possible that the total amounts of unrecognized tax benefits will significantly
change in the next twelve months.
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 at least 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.
82
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of October 31, 2008, the number of Preferred shares outstanding, by Series and
in total, for each Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
--------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Preferred shares issued by the Funds than there were
offers to buy. This meant that these auctions "failed to clear," and that many
Preferred shareholders who wanted to sell their shares in these auctions were
unable to do so. Preferred shareholders unable to sell their shares received
distributions at the "maximum rate" applicable to failed auctions as calculated
in accordance with the pre-established terms of the Preferred shares.
These developments generally do not affect the management or investment policies
of the Funds. However, one implication of these auction failures for Common
shareholders is that the Funds' cost of leverage will likely be higher, at least
temporarily, than it otherwise would have been had the auctions continued to be
successful. As a result, the Funds' future Common share earnings may be lower
than they otherwise would have been.
On June 11, 2008, Nuveen Investments, Inc. ("Nuveen") announced the Fund Board's
approval of plans to use tender option bonds (TOBs), also known as "floaters" or
floating rate obligations, to refinance a portion of the municipal funds'
outstanding Preferred shares, whose auctions have been failing for several
months. The plan included an initial phase of approximately $1 billion in
forty-one funds. The Funds did not redeem any of their Preferred shares during
the six months ended October 31, 2008.
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
83
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater is accounted for as a financing transaction in
accordance with Statement of Financial Accounting Standards No. 140 (SFAS No.
140) "Accounting for Transfers and Servicing of Financial Assets and
Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited
into a special purpose trust is identified in the Portfolio of Investments as an
"Underlying bond of an inverse floating rate trust", with the Fund accounting
for the short-term floating rate certificates issued by the trust as "Floating
rate obligations" on the Statement of Assets and Liabilities. In addition, the
Fund reflects in Investment Income the entire earnings of the underlying bond
and the related interest paid to the holders of the short-term floating rate
certificates is included as "Interest expense on floating rate obligations" on
the Statement of Operations.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is included as "Unrealized
depreciation on Recourse Trusts" on the Statement of Assets and Liabilities.
During the six months ended October 31, 2008, New Jersey Investment Quality
(NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
invested in externally deposited inverse floaters and/or self-deposited inverse
floaters. New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage
(NXM) and Pennsylvania Dividend Advantage 2 (NVY) did not invest in any such
instruments during the six months ended October 31, 2008.
At October 31, 2008, the Funds were not invested in any externally-deposited
Recourse Trusts.
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $ -- $ --
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Maximum exposure $ -- $ -- $ -- $ --
================================================================================
84
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the six months
ended October 31, 2008, were as follows:
PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM
QUALITY INCOME 2
(NQP) (NPY)
--------------------------------------------------------------------------------
Average floating rate obligations $21,652,391 $6,220,272
Average annual interest rate and fees 2.63% 2.69%
================================================================================
Forward Swap Transactions
Each Fund is authorized to invest in forward interest rate swap transactions.
Each Fund's 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 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. None of the Funds invested
in forward interest rate swap transactions during the six months ended October
31, 2008.
Futures Contracts
Each Fund is authorized to invest in futures contracts. Upon entering into a
futures contract, a Fund is required to deposit with the broker an amount of
cash or liquid securities equal to a specified percentage of the contract
amount. This is known as the "initial margin." Subsequent payments ("variation
margin") are made or received by a Fund each day, depending on the daily
fluctuation of the value of the contract.
During the period the futures contract is open, changes in the value of the
contract are recognized as an unrealized gain or loss by "marking-to-market" on
a daily basis to reflect the changes in market value of the contract. When the
contract is closed or expired, a Fund records a realized gain or loss equal to
the difference between the value of the contract on the closing date and value
of the contract when originally entered into. Cash held by the broker to cover
initial margin requirements on open futures contracts, if any, is recognized on
the Statement of Assets and Liabilities. Additionally, the Statement of Assets
and Liabilities reflects a receivable or payable for the variation margin, when
applicable. New Jersey Premium Income (NNJ) and Pennsylvania Dividend Advantage
2 (NVY) invested in futures contracts during the six months ended October 31,
2008.
Risks of investments in futures contracts include the possible adverse movement
of the securities or indices underlying the contracts, the possibility that
there may not be a liquid secondary market for the contracts and/or that a
change in the value of the contract may not correlate with a change in the value
of the underlying securities or indices.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
85
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
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. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted the provisions of Statement
of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value
Measurements." SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosure about fair value measurements. In determining the value of each
Fund's investments various inputs are used. These inputs are summarized in the
three broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit
risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities.
The following is a summary of each Fund's fair value measurements as of October
31, 2008:
NEW JERSEY INVESTMENT QUALITY (NQJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $391,473,060 $ -- $391,473,060
=======================================================================================================================
NEW JERSEY PREMIUM INCOME (NNJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $237,303,835 $ -- $237,303,835
Derivatives* (213,351) -- -- (213,351)
-----------------------------------------------------------------------------------------------------------------------
Total $(213,351) $237,303,835 $ -- $237,090,484
=======================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $121,556,055 $ -- $121,556,055
=======================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $86,433,657 $ -- $86,433,657
=======================================================================================================================
* Represents net unrealized appreciation (depreciation).
86
PENNSYLVANIA INVESTMENT QUALITY (NQP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $333,292,706 $ -- $333,292,706
=======================================================================================================================
PENNSYLVANIA PREMIUM INCOME 2 (NPY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $284,810,627 $ -- $284,810,627
=======================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $63,451,574 $ -- $63,451,574
=======================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
-----------------------------------------------------------------------------------------------------------------------
Investments $ -- $74,117,484 $ -- $74,117,484
Derivatives* (87,082) -- -- (87,082)
-----------------------------------------------------------------------------------------------------------------------
Total $(87,082) $74,117,484 $ -- $74,030,402
=======================================================================================================================
* Represents net unrealized appreciation (depreciation).
3. FUND SHARES
Common Shares
The Board of Directors/Trustees approved an open-market share repurchase program
on July 10, 2007, for Pennsylvania Investment Quality (NQP) and Pennsylvania
Premium Income 2 (NPY) and on July 31, 2008 for New Jersey Investment Quality
(NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ), New
Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and
Pennsylvania Dividend Advantage 2 (NVY) under which each Fund may repurchase an
aggregate of up to 10% of its outstanding Common shares.
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ)
------------------------ ----------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
10/31/08 4/30/08 10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 2,302
Repurchased -- -- -- -- -- --
------------------------------------------------------------------------------------------------------------------
Weighted average price per Common
share repurchased -- -- -- -- -- --
Weighted average discount per Common
share repurchased -- -- -- -- -- --
==================================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
------------------------ ----------------------- ------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
10/31/08 4/30/08 10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- 1,545 -- -- -- --
Repurchased -- -- -- (139,900) -- (156,100)
------------------------------------------------------------------------------------------------------------------
Weighted average price per Common
share repurchased -- -- -- $13.23 -- $12.92
Weighted average discount per Common
share repurchased -- -- -- 9.64% -- 8.93%
==================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND DIVIDEND
ADVANTAGE (NXM) ADVANTAGE 2 (NVY)
----------------------- -----------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
10/31/08 4/30/08 10/31/08 4/30/08
------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- 1,846 -- 626
Repurchased -- -- -- --
------------------------------------------------------------------------------------------------------------------
Weighted average price per Common share repurchased -- -- -- --
Weighted average discount per Common share repurchased -- -- -- --
==================================================================================================================
87
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the six months ended October 31, 2008, were
as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Purchases $ 3,899,750 $3,114,075 $ 575,565 $ 197,894
Sales and maturities 14,148,446 4,443,224 4,156,246 1,240,380
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Purchases $12,630,271 $17,981,782 $2,603,507 $3,067,058
Sales and maturities 19,553,397 24,127,616 3,799,002 2,075,670
================================================================================
5. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
transactions subject to SFAS No.140. 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.
At October 31, 2008, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Cost of investments $432,718,329 $255,999,509 $136,345,802 $96,398,190
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Cost of investments $340,975,953 $317,092,453 $70,622,392 $80,754,640
================================================================================
88
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2008, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
---------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 4,051,968 $ 4,277,304 $ 1,028,664 $ 783,406
Depreciation (45,297,237) (22,972,978) (15,818,411) (10,747,939)
---------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $(41,245,269) $(18,695,674) $(14,789,747) $ (9,964,533)
=============================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
---------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 6,168,420 $ 4,406,333 $ 720,660 $ 1,304,111
Depreciation (35,156,165) (36,688,159) (7,891,478) (7,941,267)
---------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $(28,987,745) $(32,281,826) $(7,170,818) $(6,637,156)
=============================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2008, the Funds' last tax year end,
were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 864,838 $450,899 $ 71,016 $319,006
Undistributed net ordinary income ** 1,237,909 516,439 346,098 182,576
Undistributed net long-term capital gains 1,336,555 885,534 144,716 265,912
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $626,146 $610,618 $109,462 $167,649
Undistributed net ordinary income ** -- 37,787 -- --
Undistributed net long-term capital gains -- -- -- 20,215
==================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 1, 2008, paid on May 1, 2008.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
89
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
The tax character of distributions paid during the Funds' last tax year ended
April 30, 2008, was designated for purposes of the dividends paid deduction as
follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $18,776,382 $10,955,180 $6,276,949 $4,206,447
Distributions from net ordinary income ** -- 12,727 -- 886
Distributions from net long-term capital gains 837,918 673,257 230,127 899,123
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $15,335,512 $13,821,804 $3,228,981 $3,634,945
Distributions from net ordinary income ** -- -- -- --
Distributions from net long-term capital gains -- 955,818 226,011 243,281
==================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At April 30, 2008, the Funds' last tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM
QUALITY INCOME 2
(NQP) (NPY)
--------------------------------------------------------------------------------
Expiration:
April 30, 2014 $124,650 $ --
April 30, 2015 170,887 --
April 30, 2016 217,013 840,338
--------------------------------------------------------------------------------
Total $512,550 $840,338
================================================================================
The following Funds have elected to defer net realized losses from investments
incurred from November 1, 2007 through April 30, 2008, the Funds' last tax year
end, ("post-October losses") in accordance with federal income tax regulations.
Post-October losses are treated as having arisen on the first day of the current
fiscal year:
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND
QUALITY INCOME 2 ADVANTAGE
(NQP) (NPY) (NXM)
--------------------------------------------------------------------------------
Post-October capital losses $2,297,704 $659,889 $116,226
================================================================================
6. MANAGEMENT FEES 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, and a
specific fund-level component, based only on the amount of assets within each
individual Fund. This pricing structure enables Nuveen
90
fund shareholders to benefit from growth in the assets within each individual
fund as well as from growth in the amount of complex-wide assets managed by the
Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA INVESTMENT QUALITY (NQP)
(INCLUDING NET ASSETS PENNSYLVANIA PREMIUM INCOME 2 (NPY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
AVERAGE DAILY NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
(INCLUDING NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the following table.
As of October 31, 2008, the complex-level fee rate was .1998%.
The complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily net assets of all Nuveen funds,
with such daily net assets to include assets attributable to preferred
stock issued by or borrowings by such funds but to exclude assets
attributable to investments in other Nuveen funds.
91
Notes to
FINANCIAL STATEMENTS (continued) (Unaudited)
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 ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
-------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
92
7. NEW ACCOUNTING PRONOUNCEMENT
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 161 (SFAS No. 161)
In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities." This standard is intended to enhance
financial statement disclosures for derivative instruments and hedging
activities and enable investors to understand: a) how and why a fund uses
derivative instruments, b) how derivative instruments and related hedge items
are accounted for, and c) how derivative instruments and related hedge items
affect a fund's financial position, results of operations and cash flows. SFAS
No. 161 is effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. As of October 31, 2008,
management does not believe the adoption of SFAS No. 161 will impact the
financial statement amounts; however, additional footnote disclosures may be
required about the use of derivative instruments and hedging items.
8. 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, 2008, to shareholders of record
on November 15, 2008, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------
Dividend per share $.0545 $.0515 $.0550 $.0575
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $.0570 $.0520 $.0585 $.0585
================================================================================
93
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
NEW JERSEY INVESTMENT QUALITY (NQJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $14.26 $ .46 $(2.05) $(.15) $ -- $(1.74) $(.33) $ -- $ (.33)
2008 14.96 .92 (.67) (.26) (.01) (.02) (.65) (.03) (.68)
2007(c) 14.53 .75 .47 (.20) (.01) 1.01 (.55) (.03) (.58)
Year Ended 6/30:
2006 15.61 .91 (.75) (.18) (.03) (.05) (.79) (.24) (1.03)
2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
NEW JERSEY PREMIUM INCOME (NNJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 14.64 .44 (1.82) (.15) -- (1.53) (.32) -- (.32)
2008 15.23 .90 (.53) (.25) (.01) .11 (.66) (.04) (.70)
2007(c) 14.79 .74 .49 (.20) --*** 1.03 (.58) (.01) (.59)
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16) (.79) (.31) (1.10)
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
===============================================================================================================================
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*
=============================================================================
NEW JERSEY INVESTMENT QUALITY (NQJ)
-----------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $ -- $12.19 $10.31 (19.07)% (12.43)%
2008 -- 14.26 13.09 (3.64) (.08)
2007(c) -- 14.96 14.30 8.75 7.05
Year Ended 6/30:
2006 -- 14.53 13.70 (3.62) (.31)
2005 -- 15.61 15.25 15.13 13.81
2004 -- 14.69 14.19 (4.09) 1.26
2003 -- 15.65 15.94 11.68 10.72
NEW JERSEY PREMIUM INCOME (NNJ)
-----------------------------------------------------------------------------
Year Ended 4/30:
2009(b) -- 12.79 10.86 (17.31) (10.59)
2008 -- 14.64 13.48 (6.18) .77
2007(c) -- 15.23 15.12 11.10 7.03
Year Ended 6/30:
2006 -- 14.79 14.16 (3.36) (1.04)
2005 -- 16.05 15.76 19.43 12.31
2004 -- 15.35 14.19 (5.65) .85
2003 -- 16.28 16.10 10.18 10.48
=============================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
------------------------------------------ -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW JERSEY INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $249,796 1.25%**** 1.25%**** 6.60%**** 1.23%**** 1.23%**** 6.62%**** 1%
2008 292,194 1.23 1.23 6.30 1.21 1.21 6.31 17
2007(c) 306,402 1.20**** 1.20**** 6.04**** 1.19**** 1.19**** 6.06**** 7
Year Ended 6/30:
2006 297,539 1.21 1.21 6.05 1.19 1.19 6.08 17
2005 319,083 1.21 1.21 6.22 1.20 1.20 6.23 15
2004 299,671 1.21 1.21 6.64 1.21 1.21 6.64 19
2003 316,970 1.22 1.22 6.80 1.22 1.22 6.81 12
NEW JERSEY PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 154,101 1.24**** 1.24**** 6.19**** 1.22**** 1.22**** 6.21**** 1
2008 176,374 1.24 1.24 6.04 1.23 1.23 6.04 19
2007(c) 183,540 1.21**** 1.21**** 5.83**** 1.20**** 1.20**** 5.84**** 6
Year Ended 6/30:
2006 178,199 1.19 1.19 5.81 1.18 1.18 5.83 12
2005 193,182 1.18 1.18 5.91 1.17 1.17 5.92 21
2004 184,753 1.18 1.18 6.23 1.18 1.18 6.23 23
2003 195,568 1.20 1.20 6.48 1.20 1.20 6.48 13
====================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
NEW JERSEY INVESTMENT QUALITY (NQJ)
----------------------------------------------------
Year Ended 4/30:
2009(b) $162,000 $25,000 $63,549
2008 162,000 25,000 70,092
2007(c) 162,000 25,000 72,284
Year Ended 6/30:
2006 162,000 25,000 70,917
2005 162,000 25,000 74,241
2004 162,000 25,000 71,246
2003 162,000 25,000 73,915
NEW JERSEY PREMIUM INCOME (NNJ)
----------------------------------------------------
Year Ended 4/30:
2009(b) 91,600 25,000 67,058
2008 91,600 25,000 73,137
2007(c) 91,600 25,000 75,093
Year Ended 6/30:
2006 91,600 25,000 73,635
2005 91,600 25,000 77,724
2004 91,600 25,000 75,424
2003 91,600 25,000 78,376
====================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2008.
(c) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
94-95 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
===============================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $14.26 $ .46 $(2.23) $(.14) $ -- $(1.91) $(.33) $ -- $(.33)
2008 15.09 .94 (.80) (.25) (.01) (.12) (.68) (.03) (.71)
2007(c) 14.68 .78 .47 (.19) --*** 1.06 (.64) (.01) (.65)
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94)
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 14.35 .48 (2.27) (.15) -- (1.94) (.35) -- (.35)
2008 15.31 .97 (.79) (.23) (.05) (.10) (.71) (.15) (.86)
2007(c) 14.87 .83 .47 (.20) --*** 1.10 (.66) --*** (.66)
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03 (.86) (.09) (.95)
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
===============================================================================================================================
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*
===========================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
---------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $ -- $12.02 $10.23 (19.78)% (13.62)%
2008 -- 14.26 13.11 (12.31) (.81)
2007(c) -- 15.09 15.75 14.37 7.26
Year Ended 6/30:
2006 -- 14.68 14.35 (.78) (.05)
2005 -- 15.63 15.38 19.97 13.80
2004 -- 14.59 13.63 (5.13) 1.20
2003 .01 15.35 15.30 15.09 13.18
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
---------------------------------------------------------------------------
Year Ended 4/30:
2009(b) -- 12.06 10.80 (18.32) (13.79)
2008 -- 14.35 13.59 (12.41) (.60)
2007(c) -- 15.31 16.50 15.40 7.50
Year Ended 6/30:
2006 -- 14.87 14.90 (.49) .25
2005 -- 15.79 15.90 23.39 15.00
2004 -- 14.62 13.74 (4.81) 1.02
2003 -- 15.44 15.40 9.14 13.74
===========================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
------------------------------------------ -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
====================================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $79,085 1.24%**** 1.24**** 6.37%**** 1.00%**** 1.00%**** 6.61%**** --%
2008 93,762 1.20 1.20 6.10 .89 .89 6.41 17
2007(c) 99,203 1.20**** 1.20**** 5.85**** .83**** .83**** 6.23**** 9
Year Ended 6/30:
2006 96,378 1.19 1.19 5.83 .75 .75 6.28 16
2005 102,502 1.19 1.19 5.94 .74 .74 6.39 17
2004 95,651 1.20 1.20 6.26 .74 .74 6.71 11
2003 100,502 1.19 1.19 6.56 .74 .74 7.01 8
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 54,539 1.29**** 1.29**** 6.53**** .96**** .96**** 6.87**** --
2008 64,904 1.25 1.25 6.16 .85 .85 6.56 16
2007(c) 69,238 1.24**** 1.24**** 6.03**** .78**** .78**** 6.49**** 11
Year Ended 6/30:
2006 67,150 1.23 1.23 5.99 .76 .76 6.47 13
2005 71,231 1.23 1.23 6.09 .77 .77 6.54 11
2004 65,919 1.25 1.25 6.41 .79 .79 6.87 11
2003 69,616 1.23 1.23 6.53 .76 .76 7.00 12
====================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
----------------------------------------------------
Year Ended 4/30:
2009(b) $48,000 $25,000 $66,190
2008 48,000 25,000 73,834
2007(c) 48,000 25,000 76,668
Year Ended 6/30:
2006 48,000 25,000 75,197
2005 48,000 25,000 78,386
2004 48,000 25,000 74,818
2003 48,000 25,000 77,345
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
----------------------------------------------------
Year Ended 4/30:
2009(b) 34,500 25,000 64,521
2008 34,500 25,000 72,032
2007(c) 34,500 25,000 75,172
Year Ended 6/30:
2006 34,500 25,000 73,659
2005 34,500 25,000 76,617
2004 34,500 25,000 72,767
2003 34,500 25,000 75,446
====================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Rounds to less than $.01 per share.
**** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2008.
(c) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
96-97 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
==============================================================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $14.39 $ .48 $(2.25) $(.16) $ -- $(1.93) $(.33) $ -- $ (.33)
2008 15.19 .95 (.80) (.29) -- (.14) (.66) -- (.66)
2007(c) 14.71 .77 .47 (.23) -- 1.01 (.53) -- (.53)
Year Ended 6/30:
2006 15.73 .90 (.87) (.21) (.02) (.20) (.71) (.11) (.82)
2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 13.74 .46 (2.37) (.15) -- (2.06) (.30) -- (.30)
2008 14.70 .90 (.93) (.26) (.02) (.31) (.61) (.04) (.65)
2007(c) 14.22 .74 .50 (.21) -- 1.03 (.55) -- (.55)
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12) (.77) (.21) (.98)
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
==============================================================================================================================
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*
==========================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $ -- $12.13 $10.29 (19.21)% (13.60)
2008 -- 14.39 13.10 (1.78) (.92)
2007(c) -- 15.19 14.01 12.41 6.89
Year Ended 6/30:
2006 -- 14.71 12.95 (9.47) (1.34)
2005 -- 15.73 15.16 19.53 12.67
2004 -- 14.92 13.58 (9.73) (.38)
2003 -- 15.91 16.01 11.98 14.79
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------
Year Ended 4/30:
2009(b) -- 11.38 9.35 (21.86) (15.21)
2008 -- 13.74 12.30 (5.26) (2.06)
2007(c) -- 14.70 13.67 9.83 7.31
Year Ended 6/30:
2006 -- 14.22 12.96 (8.42) (.80)***
2005 -- 15.32 15.16 17.79 11.80
2004 -- 14.74 13.84 (7.22) .94
2003 -- 15.65 16.00 15.09 12.09
==========================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
------------------------------------------ -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
===================================================================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $196,081 1.55%**** 1.29%**** 6.93%**** 1.54%**** 1.28%**** 6.94%**** 3%
2008 232,528 1.65 1.27 6.48 1.64 1.26 6.49 20
2007(c) 247,644 1.54**** 1.25**** 6.06**** 1.53**** 1.23**** 6.07**** 16
Year Ended 6/30:
2006 239,718 1.23 1.23 5.87 1.21 1.21 5.89 20
2005 256,365 1.23 1.23 5.96 1.22 1.22 5.97 18
2004 243,287 1.23 1.23 6.38 1.22 1.22 6.39 17
2003 258,924 1.27 1.27 6.59 1.26 1.26 6.60 11
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 178,257 1.35**** 1.27**** 6.96**** 1.33**** 1.24**** 6.98**** 6
2008 215,252 1.55 1.28 6.36 1.53 1.27 6.37 27
2007(c) 232,650 1.40**** 1.21**** 6.08**** 1.39**** 1.20**** 6.09**** 15
Year Ended 6/30:
2006 225,121 1.20 1.20 6.01 1.18 1.18 6.03 18
2005 242,373 1.19 1.19 6.09 1.19 1.19 6.10 22
2004 232,455 1.18 1.18 6.45 1.17 1.17 6.46 16
2003 246,604 1.20 1.20 6.76 1.19 1.19 6.77 19
===================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
----------------------------------------------------
Year Ended 4/30:
2009(b) $132,000 $25,000 $62,137
2008 132,000 25,000 69,039
2007(c) 132,000 25,000 71,902
Year Ended 6/30:
2006 132,000 25,000 70,401
2005 132,000 25,000 73,554
2004 132,000 25,000 71,077
2003 132,000 25,000 74,039
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
----------------------------------------------------
Year Ended 4/30:
2009(b) 118,100 25,000 62,734
2008 118,100 25,000 70,566
2007(c) 118,100 25,000 74,249
Year Ended 6/30:
2006 118,100 25,000 72,655
2005 118,100 25,000 76,307
2004 118,100 25,000 74,207
2003 118,100 25,000 77,202
====================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Fund's Total Return on Common Share Net Asset Value.
**** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2008.
(c) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
98-99 spread
Financial
HIGHLIGHTS (continued) (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
---------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
==============================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $14.47 $ .49 $(2.43) $(.14) $ -- $(2.08) $(.35) $ -- $ (.35)
2008 15.36 .97 (.84) (.25) (.02) (.14) (.70) (.05) (.75)
2007(c) 14.95 .82 .46 (.21) -- 1.07 (.66) -- (.66)
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98)
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 14.49 .49 (2.12) (.15) -- (1.78) (.35) -- (.35)
2008 15.34 .99 (.80) (.26) (.02) (.09) (.71) (.05) (.76)
2007(c) 14.93 .83 .44 (.21) (.01) 1.05 (.62) (.02) (.64)
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07) (.79) (.10) (.89)
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
==============================================================================================================================
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*
==========================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $ -- $12.04 $10.76 (18.70)% (14.66)%
2008 -- 14.47 13.61 (8.46) (.87)
2007(c) -- 15.36 15.70 8.40 7.22
Year Ended 6/30:
2006 -- 14.95 15.10 (.56) (.01)
2005 -- 15.93 16.14 21.84 13.02
2004 -- 15.32 14.39 (5.95) 1.30
2003 .02 16.25 16.46 18.13 15.95
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------
Year Ended 4/30:
2009(b) -- 12.36 10.33 (20.67) (12.52)
2008 -- 14.49 13.40 (6.81) (.60)
2007(c) -- 15.34 15.18 11.88 7.14
Year Ended 6/30:
2006 -- 14.93 14.16 .88 (.46)
2005 -- 15.89 14.90 17.63 13.37
2004 -- 14.87 13.48 (8.58) .29
2003 -- 15.90 15.84 14.38 15.48
==========================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement**
------------------------------------------ -----------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net Expenses Expenses Net Portfolio
to Common Including Excluding Investment Including Excluding Investment Turnover
Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
===================================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) $40,117 1.33%*** 1.33%*** 6.73%*** 1.08%*** 1.08%*** 6.98%*** 4%
2008 48,211 1.39 1.28 6.26 1.07 .96 6.57 20
2007(c) 51,160 1.33*** 1.27*** 5.99*** .95*** .89*** 6.37*** 11
Year Ended 6/30:
2006 49,660 1.25 1.25 5.90 .80 .80 6.35 12
2005 52,712 1.23 1.23 5.82 .78 .78 6.28 13
2004 50,549 1.21 1.21 6.15 .76 .76 6.60 10
2003 53,591 1.23 1.23 6.44 .79 .79 6.88 13
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009(b) 46,056 1.34*** 1.34*** 6.72*** 1.03*** 1.03*** 7.03*** 3
2008 53,997 1.40 1.29 6.29 1.01 .90 6.67 27
2007(c) 57,142 1.33*** 1.27*** 6.03*** .88*** .82*** 6.48*** 13
Year Ended 6/30:
2006 55,597 1.24 1.24 5.93 .77 .77 6.40 13
2005 59,174 1.23 1.23 5.80 .78 .78 6.25 8
2004 55,370 1.24 1.24 5.95 .78 .78 6.40 4
2003 59,202 1.25 1.25 6.07 .78 .78 6.53 13
===================================================================================================================================
Preferred Shares at End of Period
--------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
====================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
----------------------------------------------------
Year Ended 4/30:
2009(b) $25,000 $25,000 $65,117
2008 25,000 25,000 73,211
2007(c) 25,000 25,000 76,160
Year Ended 6/30:
2006 25,000 25,000 74,660
2005 25,000 25,000 77,712
2004 25,000 25,000 75,549
2003 25,000 25,000 78,591
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
----------------------------------------------------
Year Ended 4/30:
2009(b) 28,500 25,000 65,400
2008 28,500 25,000 72,366
2007(c) 28,500 25,000 75,124
Year Ended 6/30:
2006 28,500 25,000 73,769
2005 28,500 25,000 76,907
2004 28,500 25,000 73,570
2003 28,500 25,000 76,932
====================================================
* Total Return Based 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. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based 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. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for the
last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in the calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** Annualized.
+ 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) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1 - Inverse Floating Rate Securities.
(b) For the six months ended October 31, 2008.
(c) For the ten months ended April 30, 2007.
See accompanying notes to financial statements.
100-101 spread
Annual Investment
Management Agreement
APPROVAL PROCESS
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 28-29, 2008 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be)(each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreement (each, an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 23, 2008 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, as described in further
detail below, the Independent Board Members reviewed a broad range of
information relating to the Funds and NAM, including absolute performance, fee
and expense information for the Funds as well as comparative performance, fee
and expense information for a comparable peer group of funds, the performance
information of recognized benchmarks (as applicable), the profitability of
Nuveen for its advisory activities (which includes its wholly owned
subsidiaries), and other information regarding the organization, personnel, and
services provided by NAM. The Independent Board Members also met quarterly as
well as at other times as the need arose during the year and took into account
the information provided at such meetings and the knowledge gained therefrom.
Prior to approving the renewal of the Advisory Agreements, the Independent Board
Members reviewed the foregoing information with their independent legal counsel
and with management, reviewed materials from independent legal counsel
describing applicable law and their duties in reviewing advisory contracts, and
met with independent legal counsel in private sessions without management
present. The Independent Board Members considered the legal advice provided by
independent legal counsel and relied upon their knowledge of NAM, its services
and the Funds resulting from their meetings and other interactions throughout
the year and their own business judgment in determining the factors to be
considered in evaluating the Advisory Agreements. Each Board Member may have
accorded different weight to the various factors in reaching his or her
conclusions with respect to a Fund's Advisory Agreement. The Independent Board
Members did not identify any single factor as all-important or controlling. The
Independent Board Members' considerations were instead based on a comprehensive
consideration of all the information presented. The principal factors considered
by the Board and its conclusions are described below.
102
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM 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 Nuveen had taken for the applicable
fund product line. With respect to personnel, the Independent Board Members
evaluated the background, experience and track record of NAM's investment
personnel. In this regard, the Independent Board Members considered the
additional investment in personnel to support Nuveen fund advisory activities,
including in operations, product management and marketing as well as related
fund support functions, including sales, executive, finance, human resources and
information technology. The Independent Board Members also reviewed information
regarding portfolio manager compensation arrangements to evaluate NAM's ability
to attract and retain high quality investment personnel.
In evaluating the services of NAM, the Independent Board Members also considered
NAM's ability to supervise the Funds' other service providers and given the
importance of compliance, NAM's compliance program. Among other things, the
Independent Board Members considered the report of the chief compliance officer
regarding the Funds' compliance policies and procedures.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support.
In addition to the foregoing services, the Independent Board Members also noted
the additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, its secondary market support activities and the costs
of such activities. The Independent Board Members recognized Nuveen's continued
commitment to supporting the secondary market for the common shares of its
closed-end funds through a variety of programs designed to raise investor and
analyst awareness and understanding of closed-end funds. These efforts include
maintaining an investor relations program to timely provide information and
education to financial advisers and investors; providing advertising and
marketing for the closed-end funds; maintaining its closed-end fund website; and
providing educational seminars. With respect to closed-end funds that utilize
leverage through the issuance of auction rate preferred securities ("ARPS"), the
Board has recognized the unprecedented market conditions in the auction rate
market industry with the failure of the auction process. The Independent Board
Members noted Nuveen's efforts and the resources and personnel employed to
analyze the situation, explore potential alternatives and develop and implement
solutions that serve the interests of the affected funds and all of their
respective shareholders. The Independent Board Members further noted Nuveen's
commitment and efforts to keep investors and financial advisers informed as to
its progress in addressing the ARPS situation through, among other things,
conference calls, press releases, and information posted on its website as well
as its refinancing activities. The Independent Board Members also noted Nuveen's
continued support for holders of preferred shares of its closed-end funds by,
among other things, seeking distribution for preferred shares with new market
participants, managing relations with remarketing agents and the broker
community, maintaining the leverage and risk management of leverage and
maintaining systems necessary to test compliance with rating agency criteria.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
103
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent third party (as described below). The Independent
Board Members also reviewed portfolio level performance (which does not reflect
fund level fees, expenses and leverage), as described in further detail below.
In evaluating the performance information, the Board considered whether the Fund
has operated within its investment objectives and parameters and the impact that
the investment mandates may have had on performance. In addition, in comparing a
Fund's performance with that of its Performance Peer Group, the Independent
Board Members took into account that the closest Performance Peer Group in
certain instances may not adequately reflect the respective fund's investment
objectives and strategies thereby hindering a meaningful comparison of the
fund's performance with that of the Performance Peer Group.
The Independent Board Members also recognized that certain funds lack comparable
peers in which case their performance is measured against a more general
municipal category for various states. The closed-end municipal funds that do
not have corresponding state-specific Performance Peer Groups are from states
other than New York, California, Florida, New Jersey, Michigan, and
Pennsylvania.
The Independent Board Members reviewed performance information including, among
other things, total return information compared with the Fund's Performance Peer
Group and recognized benchmarks for the one-, three-, and five-year periods (as
applicable) ending December 31, 2007 and with the Performance Peer Group for the
quarter and same yearly periods ending March 31, 2008 (as applicable). The
Independent Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses (and leverage for
closed-end funds)) compared to recognized benchmarks for the one-, three-, and
five-year periods ending December 31, 2007 (as applicable). The analysis was
used to assess the efficacy of investment decisions against appropriate measures
of risk and total return, within specific market segments. This information
supplemented the Fund performance information provided to the Board at each of
its quarterly meetings. Based on their review, the Independent Board Members
determined that each Fund's investment performance over time had been
satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
The Board evaluated the management fees and expenses of each Fund
reviewing, among other things, such Fund's gross management fees (which
take into account breakpoints), net management fees (which take into
account fee waivers or reimbursements) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
compared to the gross management fees, net management fees (after waivers
and/or reimbursements) and total expense ratios (before and after waivers)
of a comparable universe of unaffiliated funds based on data provided by an
independent data provider (the "Peer Universe") and/or a more focused
subset of funds therein (the "Peer Group"). The Independent Board Members
further 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 reviewing the comparisons of fee and expense
information, the Independent Board Members took into account that in
certain instances various factors such as the size of the Fund relative to
peers, the size and particular composition of the Peer Group, the
investment objectives of the peers, expense anomalies, and the timing of
information used may impact the comparative data, thereby limiting the
ability to make a meaningful comparison. The Independent Board Members also
considered, among other things, the differences in the use of leverage and
the differences in the use of insurance as well as the states reflected in
a respective Peer Group for the state municipal funds (such as the use of a
104
general "other states" category for closed-end state funds (other than New
York and California)). In reviewing the fee schedule for a Fund, the
Independent Board Members also 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 closed-end funds launched since 1999). Based on their review of
the fee and expense information provided, the Independent Board Members
determined that each Fund's management fees and net total expense ratio
were reasonable in light of the nature, extent and quality of services
provided to the Fund.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Independent Board Members further reviewed information regarding the
nature of services and fee rates offered by NAM to other clients. Such
other clients include NAM's municipal separately managed accounts. In
evaluating the comparisons of fees, the Independent Board Members noted
that the fee rates charged to the Funds and other clients vary, among other
things, because of the different services involved and the additional
regulatory and compliance requirements associated with registered
investment companies, such as the Funds. Accordingly, the Independent Board
Members considered the differences in the product types, including, but not
limited to, the services provided, the structure and operations, product
distribution and costs thereof, portfolio investment policies, investor
profiles, account sizes and regulatory requirements. The Independent Board
Members noted, in particular, that the range of services provided to the
Funds (as discussed above) is much more extensive than that provided to
separately managed accounts. Given the inherent differences in the
products, particularly the extensive services provided to the Funds, the
Independent Board Members believe such facts justify the different levels
of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. The Independent Board Members reviewed the revenues
and expenses of Nuveen's advisory activities for the last two years and the
allocation methodology used in preparing the profitability data. The
Independent Board Members noted this information supplemented the
profitability information requested and received during the year to help
keep them apprised of developments affecting profitability (such as changes
in fee waivers and expense reimbursement commitments). In this regard, the
Independent Board Members noted that they had also appointed an Independent
Board Member as a point person to review and keep them apprised of changes
to the profitability analysis and/or methodologies during the year. The
Independent Board Members considered Nuveen's profitability compared with
other fund sponsors prepared by two independent third party service
providers as well as comparisons of the revenues, expenses and profit
margins of various unaffiliated management firms with similar amounts of
assets under management prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by
numerous factors including the allocation of expenses. Further, the
Independent Board Members recognized the difficulties in making comparisons
as the profitability of other advisers generally is not publicly available
and the profitability information that is available for certain advisers or
management firms may not be representative of the industry and may be
affected by, among other things, the adviser's particular business mix,
capital costs, types of funds managed and expense allocations.
Notwithstanding the foregoing, the Independent Board Members reviewed Nuveen's
methodology and assumptions for allocating expenses across product lines to
determine profitability. In reviewing profitability, the Independent Board
Members recognized Nuveen's investment in its fund business.
Based on its review, the Independent Board Members concluded that Nuveen's level
of profitability for its advisory activities was reasonable in light of the
services provided.
105
ANNUAL INVESTMENT MANAGEMENT AGREEMENT
APPROVAL PROCESS (continued)
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Funds, if any. See Section E below for additional
information on indirect benefits NAM may receive as a result of its relationship
with the Funds. Based on their review of the overall fee arrangements of each
Fund, the Independent Board Members determined that the advisory fees and
expenses of the respective Fund were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Independent Board Members recognized the
potential benefits resulting from the costs of a fund being spread over a larger
asset base. The Independent Board Members therefore considered whether the Funds
have appropriately benefited from any economies of scale and whether there is
potential realization of any further economies of scale. In considering
economies of scale, the Independent Board Members have recognized that economies
of scale are difficult to measure and predict with precision, particularly on a
fund-by-fund basis. Notwithstanding the foregoing, one method to help ensure the
shareholders share in these benefits is to include breakpoints in the advisory
fee schedule. Accordingly, the Independent Board Members reviewed and considered
the fund-level breakpoints in the advisory fee schedules that reduce advisory
fees. In this regard, given that the Funds are closed-end funds, the Independent
Board Members recognized that although the Funds may from time to time make
additional share offerings, the growth in their assets will occur primarily
through appreciation of each Fund's investment portfolio.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. 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 Independent Board Members
recognized that the complex-wide fee schedule was recently revised in 2007 to
provide for additional fee savings to shareholders and considered the amended
schedule. The Independent Board Members further considered that the complex-wide
fee arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Based on their review, the Independent Board
Members concluded that the breakpoint schedule and complex-wide fee arrangement
were acceptable and desirable in providing benefits from economies of scale to
shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM 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.
106
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
107
Reinvest Automatically
EASILY and CONVENIENTLY
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
greater of the net asset value or 95% of 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. 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 on the last business day
immediately prior to the purchase date. 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.
108
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.
109
Glossary of
TERMS USED in this REPORT
[] AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed", with current holders receiving a
formula-based interest rate until the next scheduled auction.
[] 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 the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (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 unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
[] INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
[] 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 NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common 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.
[] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon
to its holders during the life of the bond. Tax-exempt income to the holder
of the bond comes from accretion of the difference between the original
purchase price of the bond at issuance and the par value of the bond at
maturity and is effectively paid at maturity. The market prices of zero
coupon bonds generally are more volatile than the market prices of bonds
that pay interest periodically.
110
Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2008, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) 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.
BOARD OF DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase and/or redeem 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 or redeemed during the period covered by
this report. Any future repurchases and/or redemptions will be reported to
shareholders in the next annual or semi-annual report.
111
Nuveen Investments:
-------------------
SERVING INVESTORS FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
We offer many different investing solutions for our clients' different needs.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Rittenhouse, Santa Barbara,
Symphony and Tradewinds. In total, the Company managed $134 billion of assets on
September 30, 2008.
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.
Learn more about Nuveen Funds at: www.nuveen.com/etf
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ESA-B-1008D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. 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.
Not applicable to this filing.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
AUGUST 7-31, 2008 0 $0 0 660,000
SEPTEMBER 1-30, 2008 0 $0 0 660,000
OCTOBER 1-31, 2008 0 $0 0 660,000
TOTAL 0
* The registrant's repurchase program, which authorized the repurchase of
660,000 shares, was announced August 7, 2008. Any repurchases made by the
registrant pursuant to the program were made through open-market
transactions.
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 registrant's 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.
(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 to
this filing.
(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: See
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: See Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
(Vice President and Secretary)
Date: January 9, 2009
-------------------------------------------------------------------
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 9, 2009
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By (Signature and Title) /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 9, 2009
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