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
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(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: April 30, 2009
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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.
LOGO: NUVEEN Investments
Closed-End Funds
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Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report
April 30, 2009
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-------------------- ------------------- ------------------- -------------------
NUVEEN NEW JERSEY NUVEEN NEW JERSEY NUVEEN NEW JERSEY NUVEEN NEW JERSEY
INVESTMENT QUALITY PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND, INC. MUNICIPAL FUND, MUNICIPAL FUND MUNICIPAL FUND 2
NQJ INC. NXJ NUJ
NNJ
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NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA
INVESTMENT QUALITY PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE
MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND MUNICIPAL FUND 2
NQP NPY NXM NVY
(April 09)
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LOGO: NUVEEN Investments
Chairman's
Letter to Shareholders
(PHOTO OF ROBERT P. BREMNER)
DEAR SHAREHOLDER,
The problems in the U.S. financial system and the slowdown in global economic
activity continue to create a very difficult environment for the U.S. economy.
The administration, the Federal Reserve System and Congress have initiated a
variety of programs directed at restoring liquidity to the financial markets,
providing financial support for critical financial institutions and stimulating
economic activity. There are encouraging signs that these initiatives are
beginning to have a constructive impact. It is not possible to predict whether
the actions taken to date will be sufficient to restore more normal conditions
in the financial markets or enable the economy to stabilize and set a course
toward recovery. However, the speed and scope of the government's actions are
very encouraging and, more importantly, reflect a commitment to act decisively
to meet the economic challenges we face.
The performance information in the attached report reflects the impact of many
forces at work in the equity and fixed income markets. The comments by the
portfolio manager describe the strategies being used to pursue your Fund's
long-term investment goals. Parts of the financial markets continue to
experience serious dislocations and thorough research and strong investment
disciplines have never been more important in identifying risks and
opportunities. I hope you will read this information carefully.
Your Board is particularly sensitive to our shareholders' concerns in these
uncertain times. We believe that frequent and thorough communication is
essential in this regard and encourage you to visit the Nuveen website:
www.nuveen.com, for recent developments in all Nuveen funds. We also encourage
you to communicate with your financial consultant for answers to your questions
and to seek advice on your long-term investment strategy in the current market
environment.
Nuveen continues to work on resolving the issues related to the auction rate
preferred shares situation, but the unsettled conditions in the credit markets
have slowed progress. Nuveen is actively pursuing a number of 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 work through the many issues involved.
On behalf of myself and the other members of your Fund's Board, 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 Nuveen Fund Board
June 19, 2009
Nuveen Investments 3
Portfolio Manager's Comments
Nuveen Investments Municipal Closed-End Funds NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM,
NVY
Portfolio manager Cathryn Steeves reviews U.S. economic and municipal market
conditions at the national and state levels, key investment strategies, and the
twelve-month performance of the Nuveen New Jersey and Pennsylvania Funds.
Cathryn, who joined Nuveen in 1996, has managed NQJ, NNJ, NXJ, NUJ, NQP, NPY,
NXM and NVY since 2006. In April 2009, she assumed portfolio management
responsibility for the newly introduced Nuveen New Jersey Municipal Value (NJV)
and Nuveen Pennsylvania Municipal Value Fund (NPN). These two new Funds are
disclosed in a separate shareholder report for the period April 28, 2009
(commencement of operations) through April 30, 2009.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH PERIOD ENDED APRIL 30, 2009?
During this period, downward pressure on the economy continued and stress in the
financial and credit markets led to increased price volatility for most
securities, reduced liquidity and a general flight to quality. In an effort to
improve overall economic conditions, the Federal Reserve (Fed) continued to cut
interest rates, lowering the fed funds rate from 2.00% in May 2008 to a target
range of zero to 0.25% in December 2008, its lowest level on record. In March
2009, the Fed announced that, in addition to maintaining the target rate at its
current level, it would buy $300 billion of long-term Treasury securities in an
effort to support private credit markets, and up to an additional $750 billion
(for a total of $1.25 trillion) in agency mortgage-backed securities to bolster
the housing market.
The Fed's rate-cutting was in part a response to the decline in U.S. economic
growth, as measured by the U.S. gross domestic product (GDP). Since posting
growth of 2.8% in the second quarter of 2008, the GDP has contracted at annual
rates of 0.5% in the third quarter of 2008, 6.3% in the fourth quarter of 2008,
and 5.7% in the first quarter of 2009, all of which adds up to the worst
recession in 50 years. The ongoing housing slump also continued to trouble the
economy, with the average home price falling 19.1% nationally between March 2008
and March 2009, pushing home values to 2002 levels. In the labor markets, April
2009 marked the sixteenth consecutive month of job losses, with a total of 5.7
million jobs lost since the economic recession began in January 2008. The
national unemployment rate for April 2009 was 8.9%, its highest point since
1983, up from 5.0% in April 2008. At the same time, inflation remained subdued,
as the Consumer Price Index (CPI), reflecting a 25% drop in energy prices, fell
0.7% year-over-year as of April 2009, the largest 12-month decline since 1955.
The core CPI (which excludes food and
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF
SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS
RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND
OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE
OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY
FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED
HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER
FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY
FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN.
4 Nuveen Investments
energy) rose 1.9% over this same period, within the Fed's unofficial objective
of 2.0% or lower for this measure.
During this period, the nation's financial institutions and markets--including
the municipal bond market--experienced significant turmoil, and reductions in
demand for many types of securities decreased valuations. In the municipal
market, this negative impact was felt across all credit ratings, particularly
lower-rated credits, reducing the net asset values of municipal bond funds. As a
result, some of the dealer firms that make markets in bonds were unwilling to
commit capital to purchase or continue serving as dealers. The reduction in
dealer involvement was accompanied by significant selling pressure by investors,
predominantly related to lower-rated municipal bonds. This was especially true
of institutional investors, whose need to reduce the leveraging of their
municipal investments forced them to remove money from the municipal market.
This deleveraging was driven to some extent by the overall reduction in the
amount of financing available for leverage, the increased costs of leverage
financing, and the need to reduce leverage levels that had increased as
municipal bond prices declined.
Municipal bond prices were further negatively impacted by concerns that the need
for additional deleveraging and a supply overhang (i.e., a large backlog of new
issues that had been postponed) would cause selling pressure to persist. The
municipal market was also beset by conditions that contributed to greater price
volatility, including wider credit spreads (i.e., lower quality bonds fell in
price more than higher quality bonds); greatly reduced liquidity (i.e., the
ability to sell bonds at prices close to their carrying values), 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).
The performance of the municipal bond market was significantly impacted during
this period by these events as well as by concerns about the credit markets,
downgrades of municipal bond insurers, and the freeze-up of the auction rate
market. The surges of selling pressure resulting from these events added to the
level of illiquidity in the market, which combined with the Fed rate cuts to
produce a steepening of the municipal yield curve. For the twelve-month period
as a whole, bonds with shorter and intermediate maturities generally
outperformed longer maturity bonds, and higher quality bonds tended to
outperform lower quality credits.
After a very difficult phase, market conditions began to show some general signs
of improvement in mid-December 2008, and municipal bonds were on an improving
trend during the first four months of 2009. In April 2009, this was enhanced by
the introduction of Build America Bonds (BABs), which were authorized by the
American Recovery and Reinvestment Act of 2009. This legislation allows state
and local governments to sell taxable bonds and receive a subsidy equal to 35%
of the interest cost instead of the tax exemptions standard in the municipal
market. The issuance of BABs has taken some of the supply out of the new
issuance municipal market and reduced concerns about a supply overhang, driving
up prices on tax-exempt municipal issues, especially among bonds with longer
maturities.
Over the twelve months ended April 30, 2009, municipal bond issuance nationwide
totaled $430.0 billion, a drop of 5% compared with the twelve-month period ended
April 30, 2008. While market conditions during this period impacted the demand
for municipal
Nuveen Investments 5
bonds, investors, especially from the retail sector, continued to be attracted
by the higher interest rates and yields of the municipal bond market relative to
taxable bonds.
HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA?
In 2008, New Jersey's economy grew at a rate of 0.6%, which ranked the state
31st in the nation in terms of GDP growth, just behind the national average
growth rate of 0.7%. Although New Jersey continued to benefit from a highly
diverse industrial base and the presence of a large number of high-tech and
research companies, the state's labor market has recently deteriorated. Only the
education and health care services sector continued to post employment gains
over the period, which were more than offset by major job losses in
manufacturing, construction and financial services. The state's strong links to
international trade, including import and export activity at New Jersey's
once-bustling Newark and Camden ports, have been weakened by the deceleration in
trade due to the worldwide recession. In April 2009, New Jersey's jobless rate
was 8.4%, its highest level since December 1992, up from 5.0% in April 2008 but
less than the national average of 8.9%.
All of these factors have led to a sharp decrease in state revenues, and New
Jersey faces growing fiscal problems, including an estimated $1.2 billion budget
gap for fiscal 2010. Proposals for closing this shortfall include spending cuts
and a reduction in state payrolls. New Jersey could also be forced to reduce
spending on outside contracts, resulting in a negative impact on private sector
businesses. As of April 30, 2009, New Jersey general obligation debt was rated
Aa3/AA/AA by Moody's, Standard & Poor's (S&P) and Fitch, respectively. Moody's
and Fitch listed their outlooks for the state as negative, while S&P continued
to post a stable outlook. For the twelve months ended April 30, 2009, municipal
issuance in New Jersey totaled $15.1 billion.
Although still more dependent on the manufacturing sector than the nation as a
whole, Pennsylvania has made aggressive efforts to diversify its economy into
new industries in recent years. As a result, health and education services now
comprise the largest segment of the commonwealth's economy. In conjunction with
these sectors, Pennsylvania has a strong presence in biotechnology and
pharmaceutical research and manufacturing, with the commonwealth's higher
education institutions, including several medical schools, contributing to
growth in these areas. Retail trade has served as another growth driver,
although that sector is now feeling the impact of the economic slump. Even
before the current recession, however, Pennsylvania's old-line manufacturing
sector was in major decline, with little indication of any short-term
turnaround. Growth in the service sectors also slowed. Declining home prices and
the resulting layoffs in housing-related industries as well as an aging
infrastructure also served as hurdles to growth. In 2008, Pennsylvania's economy
grew at a rate of 1.1%, which ranked it 26th in the nation in terms of GDP
growth, compared with the national average growth rate of 0.7%. As of April
2009, unemployment in Pennsylvania was 7.8%, up from 5.0% in April 2008 but less
than the national average of 8.9%.
For fiscal 2009, the commonwealth's $61.3 billion budget contained no
broad-based tax increases, relying on $375 million from the budget stabilization
reserve fund to achieve balance. Current projections estimate a potential
revenue shortfall of $2.3 billion by the end of the fiscal year in June 2009,
and various measures, including
6 Nuveen Investments
expenditure reductions and the use of federal stimulus funds, which are
estimated at $1.9 billion for Pennsylvania, have been suggested to close the
gap. In March 2009, Moody's and S&P confirmed their ratings on Pennsylvania
general obligation debt at Aa2 and AA, respectively, while Fitch maintained its
rating at AA. Moody's listed its outlook for Pennsylvania as negative, while
S&P's outlook remained positive. During the twelve months ended April 30, 2009,
municipal issuance in the commonwealth totaled $18.4 billion.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
During this time, as the municipal market remained under pressure from price
volatility, reduced liquidity and fundamental economic concerns, we continued to
focus on finding bonds that offered relative value, while seeking to manage
liquidity and invest for the long term.
Much of our investment activity during this period was driven by opportunities
created by market conditions. We sought to capitalize on this environment by
continuing to take a bottom-up approach to finding undervalued sectors and
individual credits with the potential to perform well over the long term.
Overall, our emphasis was on purchasing higher coupon bonds with longer
maturities, i.e., 20 to 30 years, to take advantage of the spreads offered by
the extremely steep yield curve. Among the credits we added, especially in the
Pennsylvania Funds, were higher education and housing bonds. We also were able
to purchase lower-rated health care bonds at discounted prices as the result of
selling by some municipal market participants, particularly during the last part
of 2008.
Some of the cash for new purchases was generated by bond calls. In addition, we
monitored the types of credits and bond structures that were attractive to the
retail market and took advantage of strong bids to sell bonds into relatively
consistent retail demand. In view of tighter liquidity, we positioned the Funds
somewhat more defensively by retaining slightly more cash than usual in order to
improve the Funds' liquidity profiles and have the capital we needed to reinvest
at opportune times.
During this period, we used inverse floating rate securities1 in seven of the
eight Funds (NUJ did not use inverse floaters). We employed inverse floaters for
a variety of reasons, including duration2 management, income enhancement, and as
a form of leverage. NNJ and NVY also invested in additional types of
derivatives3 intended to help manage duration and common share net asset value
(NAV) volatility without having a negative impact on income streams or common
share dividends over the short term. As of April 30, 2009, the inverse floaters
remained in place in the seven Funds, while we had removed the derivative
positions from NNJ and NVY.
(1) An inverse floating rate security, also known as inverse floaters, 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 the reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in this Report
sections of this report.
(2) 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.
(3) Each Fund may invest in derivative instruments such as forwards, futures,
options, and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this report.
Nuveen Investments 7
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED
4/30/09
1-YEAR 5-YEAR 10-YEAR
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NEW JERSEY FUNDS
NQJ -3.41% 3.23% 4.47%
NNJ -0.40% 3.62% 4.84%
NXJ -3.63% 3.16% N/A
NUJ -4.36% 3.38% N/A
PENNSYLVANIA FUNDS
NQP -1.01% 3.11% 4.34%
NPY -2.65% 2.53% 4.37%
NXM -4.57% 2.82% N/A
NVY -2.33% 3.32% N/A
Lipper Other States Municipal
Debt Funds Average(4) -2.30% 3.12% 4.26%
Barclays Capital Municipal
Bond Index(5) 3.11% 4.11% 4.78%
S&P New Jersey Municipal
Bond Index(6) 1.14% 3.84% 4.61%
S&P Pennsylvania Municipal
Bond Index(6) 1.85% 4.01% 4.70%
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For the twelve months ended April 30, 2009, the total returns on common share
NAV for NNJ and NQP exceeded the average return for the Lipper Other States
Municipal Debt Funds Average, NVY performed in line with the Lipper group, and
NQJ, NXJ, NUJ, NPY and NXM trailed the Lipper benchmark. All of the New Jersey
and Pennsylvania Funds underperformed the returns on the national Barclays
Capital Municipal Bond Index and their respective Standard & Poor's (S&P) New
Jersey or Pennsylvania Municipal Bond Index for the period. Shareholders should
note that some of the benchmarks shown in the accompanying table include bonds
from states in addition to New Jersey and Pennsylvania, which may make direct
comparisons between the Funds and these benchmarks less meaningful.
Key management factors that influenced the Funds' returns during this period
included duration and yield curve positioning, the use of derivatives, credit
exposure and sector allocations, and individual security selection. In addition,
the use of leverage was an important factor affecting the Funds' performances
over this period. The impact of leverage is discussed in more detail on page 10.
Over the course of this twelve-month period, the municipal bond yield curve
remained steep. Bonds in the Barclays Capital Municipal Bond Index with
maturities of three to ten
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.
(4) 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: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Fund
and Lipper returns assume reinvestment of dividends.
(5) 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.
(6) The Standard & Poor's (S&P) New Jersey and Pennsylvania Municipal Bond
Indexes are unleveraged, market value-weighted indexes designed to measure
the performance of the municipal bond market, in these states.
8 Nuveen Investments
years, especially those maturing in approximately four to six years, benefited
the most from the interest rate environment. Although the New Jersey Funds were
generally underweighted in the shorter part of the yield curve and overweighted
in the longest part, these Funds had good allocations to the intermediate parts
of the curve that performed well. This made their duration and yield curve
positioning a net positive for performance during this period, except in NXJ,
which had the highest exposure to longer bonds among these four Funds. Among the
Pennsylvania Funds, duration positioning was neutral for performance except in
NXM, which was penalized by heavier exposure to the longer part of the yield
curve.
As mentioned earlier, seven of the eight Funds used inverse floating rate
securities. During this period, the impact of the inverse floaters varied, with
inverse floaters based on higher credit quality bonds outperforming those that
used lower-quality credits. In general, the inverse floaters had a positive
impact on performance in the Pennsylvania Funds and a neutral impact in the New
Jersey Funds. At the same time, the inverse floaters also benefited all of the
Funds by helping to support their income streams. In addition, NNJ and NVY,
which had durations that were shorter than our strategic target, used derivative
positions during part of this period to synthetically extend duration and move
the Funds closer to the target. These derivative positions, which boosted the
Funds' interest rate sensitivity, performed well and made positive contributions
to NNJ and NVY's total return performance.
Credit quality exposure was also a major factor in performance during this
period, as contributions from duration and yield curve positioning and the use
of derivatives were offset to varying degrees by the Funds' exposures to
lower-rated credits. During a difficult economic environment and disruptions in
the financial markets, risk-averse investors put a priority on higher quality
investments, and bonds with higher credit quality typically performed very well.
Bonds rated BBB or below and non-rated bonds generally posted poorer returns.
Pre-refunded7 bonds, which are 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 the
Pennsylvania Funds, NQP and NVY had significantly larger exposures to
pre-refunded bonds, while NXM had the smallest allocation of these bonds.
Additional sectors of the market that generally contributed positively to the
Funds' returns included general obligation and other tax-backed bonds, water and
sewer, education, and housing credits. The performances of all of these Funds
were hampered by their underweighting in tax-backed bonds relative to the market
indexes. The New Jersey Funds were also relatively underexposed to education
bonds, while the Pennsylvania Funds benefited from good allocations of education
credits.
Holdings that generally detracted from the Funds' performances included
industrial development revenue (IDR) bonds, which performed very poorly during
this period. The health care revenue sector also underperformed the overall
municipal market. All of these Funds, especially NXM and NVY, had larger
allocations to the IDR sector than the market as a whole, and the New Jersey
Funds were also heavily weighted in health care, particularly NUJ. Zero coupon
bonds also performed poorly, as did lower-rated tobacco bonds.
(7) 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.
Nuveen Investments 9
Individual security selection was also a factor in the Funds' performances
during this period. In particular, the Funds were impacted to varying degrees by
the downgrades of municipal bond issuers, and the subsequent impact on the
returns and values of insured bonds. See below for more information on municipal
bond insurers.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
In this generally unfavorable investment environment, a significant factor
impacting the returns of these Funds relative to the comparative indexes was the
Funds' use of financial leverage. The Funds use leverage because their managers
believe that, over time, leveraging provides opportunities for additional income
and total returns for common shareholders. However, use of leverage also can
expose common shareholders to additional risk--especially when market conditions
are as unfavorable as they were during much of this twelve-month period. As the
prices of many securities held by these Funds declined, the negative impact of
these valuation changes on common share net asset value and common shareholder
total return was magnified by the use of leverage.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that experienced downgrades
in their credit ratings. At the time this report was prepared, there were no
longer any bond insurers rated AAA by all three of the major rating agencies
(Moody's Investor Service, S&P and Fitch) and at least one rating agency has
placed each insurer on "negative credit watch," "credit watch evolving," "credit
outlook developing," or "rating withdrawn," which may presage one or more rating
reductions in the future. As concern increased about the balance sheets of
insurers, prices on insured bonds - especially those bonds issued by weaker
underlying credits - declined, detracting from the Funds' performance. By the
end of this period, most insured bonds were being valued according to their
fundamentals as if they were uninsured. On the whole, the holdings of these
Funds continued to be well diversified, and 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
As noted in previous shareholder reports, beginning in February 2008, more
shares were submitted for sale 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, of
the Funds' 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 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.
10 Nuveen Investments
These developments generally have not affected the portfolio management or
investment policies of these Funds. However, one continuing implication for
common shareholders of these auction failures 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 might have been.
As noted in the last shareholder report, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. As of April 30, 2009, the amount of auction rate preferred
securities redeemed by the Funds are as shown in the accompanying table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED PREFERRED SHARES
--------------------------------------------------------------------------------
NQJ $ 12,175,000 7.5%
NNJ $ -- 0.0%
NXJ $ 975,000 2.0%
NUJ $ 1,900,000 5.5%
NQP $ 20,250,000 15.3%
NPY $ 18,825,000 15.9%
NXM $ 2,500,000 10.0%
NVY $ 5,500,000 19.3%
--------------------------------------------------------------------------------
Subsequent to the reporting period, NQJ, NNJ, NXJ and NUJ noticed for redemption
an additional $3,525,000, $2,075,000, $1,100,000 and $775,000 auction rate
preferred securities, respectively.
While the Funds' Board of Directors/Trustees and management continue to work to
resolve this situation, the Funds cannot provide any assurance on when the
remaining outstanding auction rate preferred shares might be redeemed.
As of April 30, 2009, sixty-seven Nuveen closed-end municipal funds have
redeemed and/or noticed for redemption at par a portion of their outstanding
auction rate preferred shares. These redemptions bring the total amount of
Nuveen's municipal closed-end funds' auction rate preferred share redemptions to
approximately $2.1 billion of the original $11 billion outstanding.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:
http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx.
Nuveen Investments 11
Common Share Dividend
and Share Price Information
During the twelve-month reporting period ended April 30, 2009, NQP, NPY and NVY
each had two monthly dividend increases, NXM had one monthly dividend increase,
and the dividends of NQJ, NXJ and NUJ remained stable throughout the period. NNJ
had one dividend cut in October 2008.
Due to normal portfolio activity, common shareholders of the following Funds
received capital gains and/or net ordinary income distributions at the end of
December 2008 as follows:
SHORT-TERM
CAPITAL GAINS
AND/OR
LONG-TERM ORDINARY
CAPITAL GAINS INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQJ $ 0.0465 $ 0.0431
NNJ $ 0.0533 $ 0.0311
NXJ $ 0.0390 $ 0.0379
NUJ $ 0.0443 $ 0.0291
NPY -- $ 0.0017
NVY $ 0.0040 --
--------------------------------------------------------------------------------
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 April 30, 2009, all of the
Funds in this report had positive UNII balances for both tax and financial
statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
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 an aggregate of up to
10% of its outstanding common shares. Since the inception of this program, NVY
has not repurchased any of its outstanding common shares.
12 Nuveen Investments
As of April 30, 2009, the Funds repurchased common shares as shown in the
accompanying table.
% OF
COMMON OUTSTANDING
SHARES COMMON
FUND REPURCHASED SHARES
--------------------------------------------------------------------------------
NQJ 30,600 0.2%
NNJ 12,900 0.1%
NXJ 7,200 0.1%
NUJ 2,800 0.1%
NQP 167,400 1.0%
NPY 207,900 1.3%
NXM 2,000 0.1%
--------------------------------------------------------------------------------
During the twelve-month reporting period, common shares were repurchased at a
weighted average price and a weighted average discount per common share as shown
in the accompanying table.
WEIGHTED WEIGHTED
AVERAGE AVERAGE
PRICE DISCOUNT
PER SHARE PER SHARE
FUND REPURCHASED REPURCHASED
--------------------------------------------------------------------------------
NQJ $ 10.34 18.29%
NNJ $ 11.07 17.90%
NXJ $ 10.14 18.93%
NUJ $ 10.41 17.27%
NQP $ 10.80 18.20%
NPY $ 10.01 18.84%
NXM $ 10.49 17.12%
--------------------------------------------------------------------------------
As of April 30, 2009, the Funds' common share prices were trading at discounts
to their common share NAVs as shown in the accompanying table.
4/30/09 TWELVE-MONTH
FUND DISCOUNT AVERAGE DISCOUNT
--------------------------------------------------------------------------------
NQJ -12.54% -13.30%
NNJ -13.52% -13.83%
NXJ -14.03% -14.06%
NUJ -11.37% -11.07%
NQP -16.19% -15.81%
NPY -16.67% -16.75%
NXM -13.60% -12.49%
NVY -14.68% -13.40%
--------------------------------------------------------------------------------
Nuveen Investments 13
NQJ Performance OVERVIEW | Nuveen New Jersey Investment Quality Municipal Fund,
Inc. as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.37
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.00
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -12.54%
--------------------------------------------------------------------------------
Market Yield 5.75%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.53%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 265,928
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.48
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.47
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -7.10% -3.41%
--------------------------------------------------------------------------------
5-Year 1.02% 3.23%
--------------------------------------------------------------------------------
10-Year 2.34% 4.47%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.8%
--------------------------------------------------------------------------------
Transportation 16.5%
--------------------------------------------------------------------------------
Health Care 14.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.3%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.8%
--------------------------------------------------------------------------------
Water and Sewer 5.4%
--------------------------------------------------------------------------------
Tax Obligation/General 4.6%
--------------------------------------------------------------------------------
Other 10.9%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S.
Guaranteed 32%
AA 33%
A 15%
BBB 13%
BB or Lower 1%
N/R 6%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0545
Nov 0.0545
Dec 0.0545
Jan 0.0545
Feb 0.0545
Mar 0.0545
Apr 0.0545
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 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
10.7084
10.16
9.75
9.68
9.5
8.61
9.31
9.36
9.92
11.4
11.26
10.8
10.9
11.29
11.23
10.39
10.61
10.26
10.53
10.63
10.71
11.08
11.13
11.3001
11.38
4/30/09 11.37
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 capital gains and net ordinary income
distributions in December 2008 of $0.0896 per share.
14 Nuveen Investments
NNJ Performance OVERVIEW | Nuveen New Jersey Premium Income Municipal Fund, Inc.
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 28%
AA 42%
A 15%
BBB 11%
BB or Lower 1%
N/R 3%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0545
Jun 0.0545
Jul 0.0545
Aug 0.0545
Sep 0.0545
Oct 0.0515
Nov 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0515
Apr 0.0515
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.53
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
10.86
11.08
10.674
9.35
9.994
9.5754
9.05
10.25
10.12
10.57
11.67
11.46
11.482
11.88
11.97
12.1
11.38
11.8
11.19
11.1
11.18
11.36
11.7
12.03
11.97
11.97
4/30/09 11.96
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.96
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 13.83
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -13.52%
--------------------------------------------------------------------------------
Market Yield 5.17%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 7.67%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 166,428
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 13.94
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.74
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -5.69% -0.40%
--------------------------------------------------------------------------------
5-Year 1.92% 3.62%
--------------------------------------------------------------------------------
10-Year 2.86% 4.84%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 27.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.4%
--------------------------------------------------------------------------------
Health Care 12.7%
--------------------------------------------------------------------------------
Transportation 12.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.9%
--------------------------------------------------------------------------------
Water and Sewer 8.8%
--------------------------------------------------------------------------------
Tax Obligation/General 6.5%
--------------------------------------------------------------------------------
Other 5.3%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 capital gains and net ordinary income
distributions in December 2008 of $0.0844 per share.
Nuveen Investments 15
NXJ Performance OVERVIEW | Nuveen New Jersey Dividend Advantage Municipal Fund
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.15
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.97
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -14.03%
--------------------------------------------------------------------------------
Market Yield 5.92%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.78%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 85,230
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.60
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.65
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -8.95% -3.63%
--------------------------------------------------------------------------------
5-Year 0.86% 3.16%
--------------------------------------------------------------------------------
Since Inception 2.23% 4.58%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 23.1%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.9%
--------------------------------------------------------------------------------
Health Care 14.7%
--------------------------------------------------------------------------------
Water and Sewer 13.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 12.3%
--------------------------------------------------------------------------------
Transportation 11.8%
--------------------------------------------------------------------------------
Other 8.3%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 24%
AA 30%
A 23%
BBB 17%
BB or Lower 2%
N/R 4%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.055
Oct 0.055
Nov 0.055
Dec 0.055
Jan 0.055
Feb 0.055
Mar 0.055
Apr 0.055
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 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
10.23
10.26
9.675
9.1
9.5
9.05
8.53
8.9
8.97
9.57
10.7999
10.38
10.25
10.59
10.96
10.9
10.23
10.67
10.12
10.39
10.27
10.55
10.83
10.976
11.21
11.1166
4/30/09 11.15
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 capital gains and net ordinary income
distributions in December 2008 of $0.0769 per share.
16 Nuveen Investments
NUJ Performance OVERVIEW | Nuveen New Jersey Dividend Advantage Municipal Fund 2
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 29%
AA 30%
A 23%
BBB 13%
BB or Lower 4%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0575
Oct 0.0575
Nov 0.0575
Dec 0.0575
Jan 0.0575
Feb 0.0575
Mar 0.0575
Apr 0.0575
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.58
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
10.8
10.88
9.97
9.15
9.55
9.15
8.42
8.95
9.14
9.83
11.06
10.41
10.54
11
11.33
11.388
10.99
11.36
10.75
10.72
10.6116
10.88
11.25
11.59
11.32
11.51
4/30/09 11.46
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.46
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.93
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.37%
--------------------------------------------------------------------------------
Market Yield 6.02%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.93%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 58,456
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.59
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.86
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -9.75% -4.36%
--------------------------------------------------------------------------------
5-Year 2.02% 3.38%
--------------------------------------------------------------------------------
Since Inception 2.34% 4.65%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Health Care 20.0%
--------------------------------------------------------------------------------
Tax Obligation/Limited 19.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.1%
--------------------------------------------------------------------------------
Transportation 15.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.0%
--------------------------------------------------------------------------------
Long-Term Care 5.7%
--------------------------------------------------------------------------------
Other 11.2%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 capital gains and net ordinary income
distributions in December 2008 of $0.0734 per share.
Nuveen Investments 17
NQP Performance OVERVIEW | Nuveen Pennsylvania Investment Quality Municipal Fund
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.34
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.53
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -16.19%
--------------------------------------------------------------------------------
Market Yield 6.19%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.87%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 218,353
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.32
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.97
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -7.99% -1.01%
--------------------------------------------------------------------------------
5-Year 1.64% 3.11%
--------------------------------------------------------------------------------
10-Year 1.62% 4.34%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.1%
--------------------------------------------------------------------------------
Education and Civic Organizations 19.4%
--------------------------------------------------------------------------------
Tax Obligation/General 16.4%
--------------------------------------------------------------------------------
Health Care 8.5%
--------------------------------------------------------------------------------
Transportation 8.0%
--------------------------------------------------------------------------------
Housing/Single Family 6.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 6.2%
--------------------------------------------------------------------------------
Water and Sewer 4.3%
--------------------------------------------------------------------------------
Other 10.8%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 40%
AA 36%
A 13%
BBB 10%
N/R 1%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.055
Jun 0.055
Jul 0.055
Aug 0.055
Sep 0.057
Oct 0.057
Nov 0.057
Dec 0.057
Jan 0.057
Feb 0.057
Mar 0.0585
Apr 0.0585
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.13
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
10.286
10.47
10.28
9.08
9.47
8.76
8.25
8.83
9.17
9.67
10.97
10.9552
10.8499
10.95
11.26
11.38
10.67
10.975
10.68
10.5301
10.75
11.18
11.43
11.53
11.29
11.39
4/30/09 11.34
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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.
18 Nuveen Investments
NPY Performance OVERVIEW | Nuveen Pennsylvania Premium Income Municipal Fund 2
as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 28%
AA 35%
A 14%
BBB 15%
BB or Lower 2%
N/R 6%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0495
Jun 0.0495
Jul 0.0495
Aug 0.0495
Sep 0.052
Oct 0.052
Nov 0.052
Dec 0.052
Jan 0.052
Feb 0.052
Mar 0.0565
Apr 0.0565
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 12.31
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
9.35
9.71
9.03
8.74
8.75
8.13
7.55
8.21
8.29
9.04
10.15
10.06
10.02
10.08
10.34
10.53
9.93
10.09
9.93
9.99
10.05
10.07
10.36
10.68
10.57
10.63
4/30/09 10.6036
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 10.60
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.72
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -16.67%
--------------------------------------------------------------------------------
Market Yield 6.40%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.17%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 198,739
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.71
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 11.94
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -8.43% -2.65%
--------------------------------------------------------------------------------
5-Year 0.93% 2.53%
--------------------------------------------------------------------------------
10-Year 3.36% 4.37%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 15.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 15.3%
--------------------------------------------------------------------------------
Transportation 13.2%
--------------------------------------------------------------------------------
Tax Obligation/General 11.5%
--------------------------------------------------------------------------------
Health Care 9.3%
--------------------------------------------------------------------------------
Water and Sewer 8.1%
--------------------------------------------------------------------------------
Utilities 6.2%
--------------------------------------------------------------------------------
Tax Obligation/Limited 5.9%
--------------------------------------------------------------------------------
Other 14.6%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 net ordinary income distribution in December
2008 of $0.0017 per share.
Nuveen Investments 19
NXM Performance OVERVIEW | Nuveen Pennsylvania Dividend Advantage Municipal Fund
as of April 30, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.31
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.09
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -13.60%
--------------------------------------------------------------------------------
Market Yield 6.21%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 8.90%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 43,587
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.75
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 12.19
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -11.67% -4.57%
--------------------------------------------------------------------------------
5-Year 1.21% 2.82%
--------------------------------------------------------------------------------
Since Inception 2.85% 5.19%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 18.2%
--------------------------------------------------------------------------------
Health Care 14.6%
--------------------------------------------------------------------------------
Long-Term Care 11.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 9.6%
--------------------------------------------------------------------------------
Tax Obligation/General 9.4%
--------------------------------------------------------------------------------
U.S. Guaranteed 9.0%
--------------------------------------------------------------------------------
Transportation 8.0%
--------------------------------------------------------------------------------
Housing/Single Family 5.8%
--------------------------------------------------------------------------------
Other 13.9%
--------------------------------------------------------------------------------
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 25%
AA 29%
A 19%
BBB 11%
BB or Lower 5%
N/R 11%
2008-2009 Monthly Tax-Free Dividends Per Common Share
[BAR CHART]
May $ 0.057
Jun 0.057
Jul 0.057
Aug 0.057
Sep 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0585
Apr 0.0585
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.65
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
10.76
10.91
11.17
9.23
9.54
9.27
8.482
8.85
9.28
9.79
11.65
11.65
11.28
11.41
11.44
11.42
10.86
10.92
10.15
10.46
10.388
10.61
10.96
10.8895
10.86
11.14
4/30/09 11.31
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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.
20 Nuveen Investments
NVY Performance OVERVIEW | Nuveen Pennsylvania Dividend Advantage Municipal Fund
2 as of April 30, 2009
Credit Quality (as a % of total investments)(1)
[PIE CHART]
AAA/U.S. Guaranteed 26%
AA 41%
A 10%
BBB 15%
BB or Lower 4%
N/R 4%
2008-2009 Monthly Tax-Free Dividends Per Common Share(3)
[BAR CHART]
May $ 0.0575
Jun 0.0575
Jul 0.0575
Aug 0.0575
Sep 0.0585
Oct 0.0585
Nov 0.0585
Dec 0.0585
Jan 0.0585
Feb 0.0585
Mar 0.0605
Apr 0.0605
Common Share Price Performance -- Weekly Closing Price
[LINE CHART]
5/01/08 $ 13.53
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
10.33
10.79
10.2684
8.77
9.3619
9.29
8.57
9.36
9.14
8.99
11.25
10.9
11.15
11.25
11.251
11.34
11.026
11.75
12.03
12.15
11.62
11.499
12.24
11.71
11.76
11.59
4/30/09 11.45
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.45
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.42
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -14.68%
--------------------------------------------------------------------------------
Market Yield 6.34%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(2) 9.08%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 49,993
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.26
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.22
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -9.16% -2.33%
--------------------------------------------------------------------------------
5-Year 2.10% 3.32%
--------------------------------------------------------------------------------
Since Inception 2.19% 4.89%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.7%
--------------------------------------------------------------------------------
Tax Obligation/General 14.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 12.5%
--------------------------------------------------------------------------------
Health Care 9.8%
--------------------------------------------------------------------------------
Water and Sewer 6.3%
--------------------------------------------------------------------------------
Housing/Single Family 4.7%
--------------------------------------------------------------------------------
Long-Term Care 4.4%
--------------------------------------------------------------------------------
Other 13.1%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. 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 2008
of $0.0040 per share.
Nuveen Investments 21
NQJ NNJ NXJ | Shareholder MEETING REPORT
The annual meeting of shareholders was held in the offices of Nuveen Investments
on November 18, 2008; at this meeting the shareholders were asked to vote on the
election of Board Members, the elimination of Fundamental Investment Policies
and the approval of new Fundamental Investment Policies. The meeting was
subsequently adjourned to January 13, 2009 and additionally adjourned to March
17, 2009.
NQJ NNJ NXJ
-----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 9,059,685 896 5,368,743 640 2,793,252 227
Against 666,405 152 544,456 128 221,030 57
Abstain 216,158 64 139,465 18 64,336 21
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 1,080,559 1,163
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 4,159,177 1,468
===================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 9,116,378 910 5,359,235 650 2,794,909 257
Against 626,823 137 544,176 118 214,704 25
Abstain 199,047 65 149,253 18 69,005 23
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 1,080,559 1,163
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 4,159,177 1,468
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT
COMPANIES.
For 8,994,424 898 5,318,200 627 -- --
Against 726,240 136 567,836 132 -- --
Abstain 221,584 78 166,628 27 -- --
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 -- --
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For 8,973,257 907 5,332,178 636 -- --
Against 734,940 141 560,400 126 -- --
Abstain 234,051 64 160,086 24 -- --
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 -- --
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 8,939,668 895 5,303,702 642 -- --
Against 750,857 152 574,840 120 -- --
Abstain 251,723 65 174,122 24 -- --
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 -- --
===================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For 8,944,984 896 5,306,334 643 -- --
Against 734,029 141 568,517 119 -- --
Abstain 263,235 75 177,813 24 -- --
Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Total 13,039,899 5,144 7,847,139 2,989 -- --
===================================================================================================================================
22 Nuveen Investments
NQJ NNJ NXJ
----------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
============================================================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
John P. Amboian
For 12,381,210 -- 7,370,898 -- 3,922,807 --
Withhold 658,447 -- 474,970 -- 235,618 --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- 4,158,425 --
============================================================================================================================
Robert P. Bremner
For 12,368,621 -- 7,365,646 -- -- --
Withhold 671,036 -- 480,222 -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- -- --
============================================================================================================================
Jack B. Evans
For 12,377,055 -- 7,389,940 -- -- --
Withhold 662,602 -- 455,928 -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- -- --
============================================================================================================================
William C. Hunter
For -- 4,867 -- 2,697 -- 1,359
Withhold -- 235 -- 221 -- 107
----------------------------------------------------------------------------------------------------------------------------
Total -- 5,102 -- 2,918 -- 1,466
============================================================================================================================
David J. Kundert
For 12,380,067 -- 7,391,552 -- 3,926,731 --
Withhold 659,590 -- 454,316 -- 231,694 --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- 4,158,425 --
============================================================================================================================
William J. Schneider
For -- 4,867 -- 2,697 -- 1,359
Withhold -- 235 -- 221 -- 107
----------------------------------------------------------------------------------------------------------------------------
Total -- 5,102 -- 2,918 -- 1,466
============================================================================================================================
Judith M. Stockdale
For 12,364,919 -- 7,362,796 -- -- --
Withhold 674,738 -- 483,072 -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- -- --
============================================================================================================================
Carole E. Stone
For 12,371,020 -- 7,374,368 -- -- --
Withhold 668,637 -- 471,500 -- -- --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- -- --
============================================================================================================================
Terence J. Toth
For 12,374,976 -- 7,356,530 -- 3,927,117 --
Withhold 664,681 -- 489,338 -- 231,308 --
----------------------------------------------------------------------------------------------------------------------------
Total 13,039,657 -- 7,845,868 -- 4,158,425 --
============================================================================================================================
Nuveen Investments 23
NUJ NQP NPY | Shareholder MEETING REPORT (continued)
NUJ NQP NPY
-----------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO
INVESTMENTS IN MUNICIPAL SECURITIES AND
BELOW INVESTMENT GRADE SECURITIES.
For 2,038,755 207 7,820,745 856 8,119,909 784
Against 162,188 16 530,134 105 663,063 253
Abstain 45,227 18 322,426 97 262,301 26
Broker Non-Votes 674,929 850 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,921,099 1,091 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO INVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 2,046,977 207 7,858,679 851 8,155,451 791
Against 158,613 14 475,540 106 606,665 245
Abstain 40,580 20 339,086 101 283,157 27
Broker Non-Votes 674,929 850 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total 2,921,099 1,091 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING
INVESTMENT IN OTHER INVESTMENT
COMPANIES.
For -- -- 7,775,516 835 8,099,284 787
Against -- -- 543,830 126 648,771 252
Abstain -- -- 353,959 97 297,218 24
Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total -- -- 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
DERIVATIVES AND SHORT SALES.
For -- -- 7,655,018 851 8,042,223 803
Against -- -- 602,731 109 706,132 239
Abstain -- -- 415,556 98 296,918 21
Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total -- -- 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For -- -- 7,742,732 856 8,025,347 774
Against -- -- 560,518 105 715,530 266
Abstain -- -- 370,055 97 304,396 23
Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total -- -- 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- 7,654,581 856 8,014,963 770
Against -- -- 584,836 105 708,535 270
Abstain -- -- 433,888 97 321,775 23
Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779
-----------------------------------------------------------------------------------------------------------------------------------
Total -- -- 10,889,143 3,256 11,445,735 2,842
===================================================================================================================================
24 Nuveen Investments
NUJ NQP NPY
---------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
Preferred Preferred Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
===========================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 2,759,408 -- 10,257,388 -- 10,775,612 --
Withhold 161,688 -- 631,716 -- 666,978 --
---------------------------------------------------------------------------------------------------------------------------
Total 2,921,096 -- 10,889,104 -- 11,442,590 --
===========================================================================================================================
Robert P. Bremner
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===========================================================================================================================
Jack B. Evans
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===========================================================================================================================
William C. Hunter
For -- 1,044 -- 3,108 -- 2,556
Withhold -- 45 -- 109 -- 141
---------------------------------------------------------------------------------------------------------------------------
Total -- 1,089 -- 3,217 -- 2,697
===========================================================================================================================
David J. Kundert
For 2,754,748 -- 10,260,514 -- 10,765,250 --
Withhold 166,348 -- 628,590 -- 677,340 --
---------------------------------------------------------------------------------------------------------------------------
Total 2,921,096 -- 10,889,104 -- 11,442,590 --
===========================================================================================================================
William J. Schneider
For -- 1,044 -- 3,108 -- 2,556
Withhold -- 45 -- 109 -- 141
---------------------------------------------------------------------------------------------------------------------------
Total -- 1,089 -- 3,217 -- 2,697
===========================================================================================================================
Judith M. Stockdale
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===========================================================================================================================
Carole E. Stone
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
===========================================================================================================================
Terence J. Toth
For 2,759,408 -- 10,255,973 -- 10,756,020 --
Withhold 161,688 -- 633,131 -- 686,570 --
---------------------------------------------------------------------------------------------------------------------------
Total 2,921,096 -- 10,889,104 -- 11,442,590 --
===========================================================================================================================
Nuveen Investments 25
NXM NVY | Shareholder MEETING REPORT (continued)
NXM NVY
---------------------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
=========================================================================================================
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICY RELATING TO INVESTMENTS
IN MUNICIPAL SECURITIES AND BELOW INVESTMENT
GRADE SECURITIES.
For 1,656,198 111 1,748,477 150
Against 158,458 9 128,938 33
Abstain 40,828 5 42,008 22
Broker Non-Votes 439,435 602 625,152 553
---------------------------------------------------------------------------------------------------------
Total 2,294,919 727 2,544,575 758
=========================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TOINVESTMENTS IN MUNICIPAL
SECURITIES FOR THE FUND.
For 1,656,591 110 1,778,304 150
Against 158,209 12 108,596 33
Abstain 40,684 3 32,523 22
Broker Non-Votes 439,435 602 625,152 553
---------------------------------------------------------------------------------------------------------
Total 2,294,919 727 2,544,575 758
=========================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY PROHIBITING INVESTMENT
IN OTHER INVESTMENT COMPANIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
---------------------------------------------------------------------------------------------------------
Total -- -- -- --
=========================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO DERIVATIVES
AND SHORT SALES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
---------------------------------------------------------------------------------------------------------
Total -- -- -- --
=========================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
---------------------------------------------------------------------------------------------------------
Total -- -- -- --
=========================================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY
RELATING TO COMMODITIES.
For -- -- -- --
Against -- -- -- --
Abstain -- -- -- --
Broker Non-Votes -- -- -- --
---------------------------------------------------------------------------------------------------------
Total -- -- -- --
=========================================================================================================
26 Nuveen Investments
NXM NVY
------------------------------------------------------------------------------------------
Common and Common and
Preferred Preferred Preferred Preferred
shares voting shares voting shares voting shares voting
together together together together
as a class as a class as a class as a class
==========================================================================================
APPROVAL OF THE BOARD MEMBERS
WAS REACHED AS FOLLOWS:
John P. Amboian
For 2,103,821 -- 2,409,167 --
Withhold 191,098 -- 135,387 --
------------------------------------------------------------------------------------------
Total 2,294,919 -- 2,544,554 --
==========================================================================================
Robert P. Bremner
For -- -- -- --
Withhold -- -- -- --
------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================
Jack B. Evans
For -- -- -- --
Withhold -- -- -- --
------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================
William C. Hunter
For -- 712 -- 728
Withhold -- 15 -- 9
------------------------------------------------------------------------------------------
Total -- 727 -- 737
==========================================================================================
David J. Kundert
For 2,103,121 -- 2,409,467 --
Withhold 191,798 -- 135,087 --
------------------------------------------------------------------------------------------
Total 2,294,919 -- 2,544,554 --
==========================================================================================
William J. Schneider
For -- 712 -- 728
Withhold -- 15 -- 9
------------------------------------------------------------------------------------------
Total -- 727 -- 737
==========================================================================================
Judith M. Stockdale
For -- -- -- --
Withhold -- -- -- --
------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================
Carole E. Stone
For -- -- -- --
Withhold -- -- -- --
------------------------------------------------------------------------------------------
Total -- -- -- --
==========================================================================================
Terence J. Toth
For 2,103,621 -- 2,408,341 --
Withhold 191,298 -- 136,213 --
------------------------------------------------------------------------------------------
Total 2,294,919 -- 2,544,554 --
==========================================================================================
Nuveen Investments 27
Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC.
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND
NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen New Jersey Investment Quality Municipal
Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New
Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage
Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen
Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend
Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal
Fund 2 (the Funds) as of April 30, 2009, and the related statements of
operations and cash flows (Nuveen Pennsylvania Investment Quality Municipal Fund
only) for the year then ended, the statements of changes in net assets for each
of the two years in the period than ended and financial highlights for each of
the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of April 30, 2009, by correspondence with the custodian and
brokers or by other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey
Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage
Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen
Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium
Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund
and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 at April 30, 2009,
the results of their operations and cash flows (Nuveen Pennsylvania Investment
Quality Municipal Fund only) for the year then ended, the changes in their net
assets for each of the two years in the period then ended and the financial
highlights for each of the periods indicated therein in conformity with US
generally accepted accounting principles.
/s/ ERNST & YOUNG LLP
Chicago, Illinois
June 19, 2009
28 Nuveen Investments
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center
Project, Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 B1 $ 390,656
690 5.125%, 1/01/37 1/15 at 100.00 B1 329,786
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 720,442
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.9% (1.9% 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 2,331,460
10,000 5.000%, 6/01/41 6/17 at 100.00 BBB 5,294,800
------------------------------------------------------------------------------------------------------------------------------------
14,300 Total Consumer Staples 7,626,260
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.5% (10.8% OF TOTAL INVESTMENTS)
1,000 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 A 1,042,100
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 1,518,540
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 430,200
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+ 859,450
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 AA- 3,573,699
2,295 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 2,278,912
120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 126,156
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 1,324,703
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 A2 2,765,707
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- 1,039,820
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AA- 2,022,450
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 A 1,326,830
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 A 2,600,159
185 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 A 179,370
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 1,637,877
Ramapo College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/14 at 100.00 Baa1 597,617
University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
Nuveen Investments 29
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
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, Rider 7/12 at 100.00 Baa1 $ 394,429
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- 1,474,716
William Paterson University, Series 2004A, 5.125%, 7/01/21 -
FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 Baa1 1,003,758
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI
Insured
1,420 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 100.00 Aaa 1,421,335
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 Loan 6/10 at 101.00 Aaa 2,042,300
Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured
(Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/18 at 100.00 AAA 2,039,620
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 3,783,507
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 A 1,901,335
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 A 1,308,295
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 A 1,781,283
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 A 3,478,480
------------------------------------------------------------------------------------------------------------------------------------
45,530 Total Education and Civic Organizations 43,952,648
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 3,796,000
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.5% (14.7% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
2,200 5.000%, 2/15/25 2/15 at 100.00 BBB 1,617,748
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 719,390
1,920 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 1,730,765
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 A 5,527,188
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, New 7/18 at 100.00 Baa2 1,570,560
Jersey, Revenue Bonds, Saint Peters University Hospital,
Series 2007, 5.750%, 7/01/37
3,750 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 3,180,150
Bonds, Atlanticare Regional Medical Center, Series 2007,
5.000%, 7/01/37
2,840 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 3,213,602
Bonds, Capital Health System Obligated Group, Series 2003A,
5.375%, 7/01/33
1,265 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 1,206,127
Bonds, CentraState Medical Center, Series 2006A, 5.000%,
7/01/30 - AGC Insured
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 310,748
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
650 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 513,214
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
615 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 504,595
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 $ 3,005,820
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.500%, 7/01/21
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,320,380
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 3,855,660
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 1,934,200
1,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 BBB- 1,213,584
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%,
7/01/35 - RAAI Insured
1,885 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 1,400,367
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
2,850 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 2,460,120
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A 4,075,697
Bonds, Society of the Valley Hospital Obligated Group, Series
2000, 5.375%, 7/01/31 - AMBAC Insured
3,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 1,723,689
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:
670 5.000%, 7/01/25 7/16 at 100.00 A2 612,226
2,160 5.000%, 7/01/36 7/16 at 100.00 A2 1,796,731
1,295 5.000%, 7/01/46 7/16 at 100.00 A2 1,036,557
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 2,003,620
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- 2,156,284
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
2,605 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 100.00 Baa1 2,021,350
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 Bonds, 7/18 at 100.00 AAA 3,550,788
Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured
3,670 Newark, New Jersey, GNMA Collateralized Healthcare Facility 6/12 at 102.00 Aaa 3,515,750
Revenue Bonds, New Community Urban Renewal Corporation, Series
2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
68,550 Total Health Care 59,776,910
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
500 Long Branch Housing Finance Corporation New Jersey, Housing 10/09 at 100.00 N/R 501,765
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 Housing 10/09 at 102.00 Aaa 2,795,066
Revenue Bonds, Fairview Apartments Project, Series 2000A,
6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,243 Total Housing/Multifamily 3,296,831
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,545 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/09 at 100.00 Aaa 2,547,443
Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA
Insured (Alternative Minimum Tax)
2,075 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 Aaa 2,082,283
Program Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA
Insured (Alternative Minimum Tax)
350 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 296,678
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
Nuveen Investments 31
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
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 $ 2,546,858
Securities Home Mortgage Revenue Bonds, Series 2001A, 5.200%,
12/01/33
2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,505,273
Securities Home Mortgage Revenue Bonds, Series 2001B, 5.300%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,060 Total Housing/Single Family 9,978,535
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS)
980 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 985,635
Resource Recovery Revenue Refunding Bonds, Waste Management
Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put
12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.7% (1.8% OF TOTAL INVESTMENTS)
1,870 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 1,129,031
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
1,125 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 949,973
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.750%, 11/01/24
2,780 New Jersey Economic Development Authority, GNMA Collateralized 12/11 at 103.00 Aaa 2,594,824
Mortgage Revenue Bonds, Victoria Health Corporation, Series
2001A, 5.200%, 12/20/36
595 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/11 at 102.00 A- 617,110
Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18
1,100 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/13 at 102.00 A- 1,024,815
Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 BBB- 854,470
Bonds, House of the Good Shepherd Obligated Group, Series
2001, 5.100%, 7/01/21 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
8,470 Total Long-Term Care 7,170,223
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 7.0% (4.6% 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- 1,752,683
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AA- 1,660,376
4,300 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 A1 4,476,429
5.000%, 9/01/22 - AMBAC Insured
1,500 Middletown Township Board of Education, Monmouth County, New 8/10 at 100.00 AAA 1,505,310
Jersey, Refunding School Bonds, Series 2001, 5.000%, 8/01/27 -
FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, 6.000%, No Opt. Call AA 5,425,450
2/15/11
West Deptford Township, New Jersey, General Obligation Bonds,
Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Baa1 1,820,874
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Baa1 1,947,284
------------------------------------------------------------------------------------------------------------------------------------
17,680 Total Tax Obligation/General 18,588,406
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 35.0% (22.8% OF TOTAL INVESTMENTS)
1,775 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 1,987,645
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,965 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 2,165,057
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
2,650 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 3,072,463
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+ 1,076,470
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AA+ 1,515,907
32 Nuveen Investments
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- $ 1,136,292
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA- 2,568,859
1,445 Lower Township Municipal Utilities Authority, Cape May County, No Opt. Call N/R 1,447,803
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 1,105,790
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,202,120
5,700 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 5,798,781
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 1,536,768
4,000 5.750%, 6/15/34 6/14 at 100.00 BBB 2,858,920
4,675 New Jersey Economic Development Authority, Lease Revenue Bonds, 3/15 at 100.00 AAA 4,834,745
Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 -
FSA Insured
5,000 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 5,457,200
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 155,661
345 5.125%, 6/15/37 6/17 at 100.00 Baa3 242,180
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- 1,947,217
3,930 5.000%, 9/01/37 9/17 at 100.00 AA- 3,894,434
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,168,416
Higher Education Capital Improvement Fund, Series 2005A,
5.000%, 9/01/15 - FSA Insured
2,500 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,469,600
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- 2,989,899
4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 4,435,844
850 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 843,659
Contract Bonds, Hospital Asset Transformation Program, Series
2008A, 5.250%, 10/01/38
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AA- 3,500,374
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 AA- 1,162,204
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 2,028,231
4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,708,452
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
3,890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 4,132,931
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,680,593
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- 4,302,977
10,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 2,364,400
15,310 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 3,178,509
Nuveen Investments 33
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,500 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- $ 2,522,525
System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
1,625 Passaic County Improvement Authority, New Jersey, Lease Revenue 5/15 at 100.00 A3 1,565,671
Bonds, Preakness Healthcare Center Project, Series 2005,
5.000%, 5/01/30 - AMBAC Insured
1,315 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 BBB+ 1,011,643
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
120,545 Total Tax Obligation/Limited 93,070,240
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 25.4% (16.5% OF TOTAL INVESTMENTS)
2,250 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AA- 2,243,160
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- 2,025,460
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA- 4,079,525
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA- 1,515,375
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,533,145
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 2,997,710
Revenue Refunding Bonds, Port District Project, Series 2001A,
5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, 5/09 at 100.00 CCC+ 1,205,280
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 193,938
6.500%, 1/01/16 - MBIA Insured
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 9,860,997
5.000%, 1/01/19 - FGIC Insured
1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,362,051
5.250%, 1/01/29 - FSA Insured
7,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AA- 7,120,749
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 Revenue 8/17 at 100.00 AAA 1,035,120
Bonds, One Hundred Forty Eighth Series 2008, Trust 2920,
17.177%, 8/15/32 - FSA Insured (IF)
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 2,012,200
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 2,319,968
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,068,000
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- 3,636,290
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/09 at 101.00 AA- 5,509,098
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 6/09 at 100.00 AA- 9,707,759
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,003,840
Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
71,700 Total Transportation 67,429,665
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.0% (14.3% OF TOTAL INVESTMENTS) (4)
2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R (4) 2,872,975
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 New Jersey, 1/10 at 101.00 A+ (4) 3,421,818
Revenue Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded
1/01/10) - AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/13 at 100.00 A- (4) 1,718,970
University, Series 2003D, 5.250%, 7/01/20 (Pre-refunded
7/01/13) - FGIC Insured
34 Nuveen Investments
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 Bonds, Kean 7/16 at 100.00 AA- (4) $ 2,256,254
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded
7/01/16) - MBIA Insured
1,380 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 1,591,126
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) 3,308,822
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,695,045
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/12 at 100.00 A (4) 2,224,060
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 Bonds, Rowan 7/13 at 100.00 A+ (4) 1,483,248
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) 1,370,522
1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AA- (4) 2,150,400
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 8,963,622
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, Revenue No Opt. Call BBB- (4) 1,959,707
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 211,587
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 69,419
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,943,851
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 1,441,375
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 7,836,749
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 1,275,332
3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,417,780
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 3,200,670
2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,032,190
------------------------------------------------------------------------------------------------------------------------------------
52,145 Total U.S. Guaranteed 58,445,522
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.2% (2.7% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, New Jersey, 6/09 at 100.00 Baa3 3,488,100
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, New Jersey, 6/09 at 100.00 Baa3 250,525
Solid Waste Disposal and Resource Recovery System Revenue
Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative
Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AA+ 2,285,037
Revenue Bonds, Regional Sludge Project, Series 2003,
5.000%, 12/15/14 - FGIC Insured
2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,348,925
Pollution Control Revenue Refunding Bonds, PSEG Power LLC
Project, Series 2001A, 5.750%, 4/01/31 (Alternative
Minimum Tax)
Nuveen Investments 35
NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/09 at 100.50 A $ 2,803,860
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 11,176,447
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 8.2% (5.4% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, New 7/09 at 101.00 AA- 2,862,240
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 1,821,855
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 N/R 1,877,150
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 N/R 1,024,970
7,500 New Jersey Economic Development Authority, Water Facilities 5/09 at 100.00 N/R 6,686,700
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 3,156,150
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 N/R 3,117,960
1,250 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/11 at 101.00 Aa1 1,300,800
Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 21,847,825
------------------------------------------------------------------------------------------------------------------------------------
$ 453,333 Total Investments (cost $432,059,118) - 153.4% 407,861,589
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 7,890,950
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (56.3)% (5) (149,825,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 265,927,539
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 36.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
36 Nuveen Investments
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc.
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (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 B1 $ 234,394
415 5.125%, 1/01/37 1/15 at 100.00 B1 198,349
------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 432,743
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.5% (1.7% 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 1,366,344
5,300 5.000%, 6/01/41 6/17 at 100.00 BBB 2,806,244
------------------------------------------------------------------------------------------------------------------------------------
7,820 Total Consumer Staples 4,172,588
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (9.9% OF TOTAL
INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 A 1,172,363
Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 379,635
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 258,120
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 AA- 2,100,993
3,350 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 3,326,517
100 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 107,179
Montclair State University, Series 2004L, 5.125%, 7/01/19 -
MBIA Insured
970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 A2 968,497
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 A 1,459,425
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 A 763,454
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 A 1,584,958
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 AA- 1,763,361
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 BBB- 1,083,150
300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A3 293,910
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
1,405 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 101.00 AA- 1,413,500
Revenue Bonds, Series 1999A, 5.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
985 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 Aaa 1,008,601
Revenue Bonds, Series 2000A, 6.000%, 6/01/15 - MBIA Insured
(Alternative Minimum Tax)
2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/18 at 100.00 AAA 2,039,620
Revenue Bonds, Series 2008A, 6.125%, 6/01/30 - AGC Insured
(Alternative Minimum Tax)
2,025 University of Medicine and Dentistry of New Jersey, Certificates 4/13 at 100.00 A 1,956,170
of Participation, Child Health Institute, LLC, Series 2003,
5.000%, 4/15/21 - AMBAC Insured
Nuveen Investments 37
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,000 University of Medicine and Dentistry of New Jersey, Certificates 6/14 at 100.00 AA- $ 886,110
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, Revenue 12/12 at 100.00 A 2,169,365
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,210 Total Education and Civic Organizations 24,734,928
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 1,138,800
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.0% (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 136,038
620 5.750%, 2/15/34 8/14 at 100.00 BBB 446,022
1,120 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 1,009,613
Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27
1,615 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 1,369,585
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 837,488
1,670 5.375%, 7/01/33 7/13 at 100.00 Baa1 1,889,689
240 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 186,449
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
2,900 New Jersey Health Care Facilities Financing Authority, Revenue 1/10 at 101.00 A3 2,795,020
Bonds, Hackensack University Medical Center, Series 2000,
6.000%, 1/01/34
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 552,692
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
375 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 307,680
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,258,920
Bonds, Kennedy Health System Obligated Group, Series 2001,
5.625%, 7/01/31
1,700 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 1,723,749
Bonds, Meridian Health System Obligated Group, Series 1999,
5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BB+ 335,237
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, Revenue 7/15 at 100.00 BBB- 758,490
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%,
7/01/35 - RAAI Insured
1,160 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 861,764
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
1,675 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 1,445,860
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A 2,003,180
Bonds, Society of the Valley Hospital Obligated Group, Series
2000, 5.750%, 7/01/15 - AMBAC Insured
1,875 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 979,369
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:
1,245 5.000%, 7/01/36 7/16 at 100.00 A2 1,035,616
1,155 5.000%, 7/01/46 7/16 at 100.00 A2 924,497
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 2,050 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 $ 2,053,711
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
630 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 632,835
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,710 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- 1,359,638
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.000%, 7/01/22 - RAAI Insured
2,160 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA 2,130,473
Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/09 at 100.50 A3 2,667,623
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 31,701,238
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 0.4% (0.3% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA Enhanced 11/12 at 100.00 Aaa 330,847
Multifamily Revenue Bonds, Mount Carmel Towers, Series 2002,
4.750%, 11/01/22 (Alternative Minimum Tax)
300 Long Branch Housing Finance Corporation New Jersey, Housing 10/09 at 100.00 N/R 301,059
Revenue Bonds, Washington Manor Associates Ltd. Section 8
Assisted Elderly Project, Series 1980, 10.000%, 10/01/11
------------------------------------------------------------------------------------------------------------------------------------
640 Total Housing/Multifamily 631,906
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.5% (1.0% 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) 10/09 at 100.00 Aaa 1,463,323
385 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/09 at 100.00 Aaa 385,370
220 New Jersey Housing and Mortgage Finance Agency, Home Buyer No Opt. Call Aaa 223,032
Program Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 - MBIA
Insured
605 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 512,828
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,665 Total Housing/Single Family 2,584,553
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
575 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 578,306
Resource Recovery Revenue Refunding Bonds, Waste Management
Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put
12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.4% (0.9% OF TOTAL INVESTMENTS)
1,095 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 661,117
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 590,738
Revenue Bonds, Winchester Gardens at Wards Homestead, Series
2004A, 5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,005,750
Masonic Charity Foundation of New Jersey, Series 2001,
5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
2,845 Total Long-Term Care 2,257,605
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 9.7% (6.5% OF TOTAL INVESTMENTS)
2,460 Freehold Regional High School District, Monmouth County Board of No Opt. Call AA 2,828,262
Education, New Jersey, School District Refunding Bonds,
Series 2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 A1 2,602,575
5.000%, 9/01/22 - AMBAC Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,799,532
1,560 6.000%, 2/15/13 No Opt. Call AA 1,792,253
Nuveen Investments 39
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 4,000 Passaic County, New Jersey, General Improvement Refunding Bonds, No Opt. Call AA- $ 4,226,560
Series 1993, 5.125%, 9/01/12 - FGIC Insured
1,780 West Deptford Township, New Jersey, General Obligation Bonds, 9/14 at 100.00 Baa1 1,878,487
Series 2004, 4.750%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
14,880 Total Tax Obligation/General 16,127,669
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 40.6% (27.2% OF TOTAL INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,119,800
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
5,385 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa3 5,829,799
Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
1,155 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 1,272,591
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 -
AMBAC Insured
1,225 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 1,420,290
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- 1,235,327
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA- 2,802,854
1,000 Middlesex County Improvement Authority, New Jersey, County 9/13 at 100.00 AAA 1,105,790
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- 3,499,335
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 903,291
2,540 5.750%, 6/15/34 6/14 at 100.00 BBB 1,815,414
3,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 3,492,608
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 91,118
205 5.125%, 6/15/37 6/17 at 100.00 Baa3 143,904
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- 1,144,547
2,310 5.000%, 9/01/37 9/17 at 100.00 AA- 2,289,095
2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,686,925
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- 2,603,756
3,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AA- 2,895,150
500 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 496,270
Contract Bonds, Hospital Asset Transformation Program, Series
2008A, 5.250%, 10/01/38
1,500 New Jersey Sports and Exposition Authority, Convention Center No Opt. Call AA- 1,631,040
Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 - MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call A1 3,270,960
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AA- 1,927,519
Series 2005A, 5.000%, 9/15/18 - FGIC Insured
40 Nuveen Investments
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 AA- $ 432,448
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 763,255
2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,914,756
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AA- 2,148,240
System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured
1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,179,320
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,850,467
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- 2,530,795
6,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 1,418,640
4,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 830,440
4,000 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- 4,036,040
System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ 600,062
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aa1 2,691,253
Obligation Lease Revenue Bonds, Plainfield Park Madison
Redevelopment Project, Series 2003, 5.000%, 3/01/34 - FSA
Insured
2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,566,419
Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
79,635 Total Tax Obligation/Limited 67,639,518
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 18.2% (12.2% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AA- 2,741,640
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
2,500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AA- 2,525,625
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 684,842
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call A 418,178
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 5,968,498
5.000%, 1/01/19 - FGIC Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue Bonds, 4/15 at 100.00 Aa3 2,785,255
Paterson Parking Deck Facility, Series 2005, 5.000%, 4/15/35
- FSA Insured
4,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AA- 4,069,000
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 -
SYNCORA GTY Insured
585 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 605,545
Bonds, One Hundred Forty Eighth Series 2008, Trust 2920,
17.177%, 8/15/32 - FSA Insured (IF)
1,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 1,006,100
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 2,027,200
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 6/09 at 101.00 AA- 6,672,638
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, Guaranteed 10/13 at 100.00 Baa2 766,811
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
31,095 Total Transportation 30,271,332
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41
NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.1% (17.4% OF TOTAL INVESTMENTS) (4)
$ 2,075 Egg Harbor Township School District, Atlantic County, New 4/15 at 100.00 Aa2 (4) $ 2,412,665
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, Lease Revenue 12/13 at 100.00 Aa3 (4) 149,959
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 N/R (4) 1,146,570
1,000 5.000%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 1,146,570
2,410 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R (4) 3,051,735
Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18 (ETM)
595 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AA- (4) 697,388
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded
7/01/16) - MBIA Insured
1,145 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 1,320,174
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 Bonds, 7/15 at 100.00 A2 (4) 2,414,859
Montclair State University, Series 2005F, 5.000%, 7/01/32
(Pre-refunded 7/01/15) - FGIC Insured
400 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 458,752
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, Revenue 7/12 at 100.00 A2 (4) 3,421,230
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, Revenue No Opt. Call BBB- (4) 1,472,679
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured (ETM)
545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 Baa3 (4) 593,249
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, Multifamily 5/09 at 100.75 A+ (4) 4,445,533
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 578,753
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 246,121
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call A (4) 151,459
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,744,500
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,068,334
750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 864,825
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 Bonds, 7/15 at 100.00 AAA 2,481,809
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 3,515,490
2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,599,020
350 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Baa2 (4) 401,300
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24
(Pre-refunded 10/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
38,050 Total U.S. Guaranteed 43,382,974
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,222,025
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 13.2% (8.8% 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 $ 1,402,382
1,250 5.000%, 4/01/24 - SYNCORA GTY Insured 4/13 at 100.00 N/R 1,131,275
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, Sewer No Opt. Call A 1,103,820
Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 -
AMBAC Insured
3,100 New Jersey Economic Development Authority, Water Facilities 9/09 at 100.00 Baa1 2,904,700
Revenue Refunding Bonds, Hackensack Water Company, Series
1994B, 5.900%, 3/01/24 - MBIA Insured (Alternative Minimum
Tax)
6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,577,583
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AA 1,687,191
Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 -
MBIA Insured
3,500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 N/R 3,614,940
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
820 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 873,997
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, New No Opt. Call A 1,670,100
Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%,
9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
21,220 Total Water and Sewer 21,965,988
------------------------------------------------------------------------------------------------------------------------------------
$ 263,430 Total Investments (cost $255,546,427) - 149.5% 248,842,173
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.5% 9,185,720
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.0)% (5) (91,600,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 166,427,893
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 36.8%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
Nuveen Investments 43
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% 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 B1 $ 126,963
230 5.125%, 1/01/37 1/15 at 100.00 B1 109,929
------------------------------------------------------------------------------------------------------------------------------------
490 Total Consumer Discretionary 236,892
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.7% (1.8% 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 729,259
3,000 5.000%, 6/01/41 6/17 at 100.00 BBB 1,588,440
------------------------------------------------------------------------------------------------------------------------------------
4,345 Total Consumer Staples 2,317,699
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 18.5% (12.3% OF TOTAL INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 215,100
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
325 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 262,837
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 AA- 1,120,865
735 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 729,848
60 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 63,437
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 A2 968,497
Montclair State University, Series 2006A, 5.000%, 7/01/36 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/11 at 100.00 AA- 1,060,300
Jersey Institute of Technology, Series 2001G, 5.250%,
7/01/18 - MBIA Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 A 1,039,990
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+ 1,088,396
Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 659,471
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA- 286,788
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 A 212,496
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 A 3,898,156
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 A 1,616,256
44 Nuveen Investments
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 $ 1,786,780
500 5.250%, 9/01/31 9/11 at 100.00 BBB 402,315
500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 344,585
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 15,756,117
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 788,840
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.6% (1.1% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic Development 11/10 at 100.00 N/R 544,986
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial 10/09 at 100.00 Ba1 225,775
Development Revenue Refunding Bonds, Newark Airport Marriott
Hotel, Series 1996, 7.000%, 10/01/14
750 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 569,400
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,340,161
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 22.0% (14.7% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 223,011
Cooper Health System, Series 2004A, 5.750%, 2/15/34
560 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 504,806
Bonds, AHS Hospital Corporation, Series 2008A, 5.000%,
7/01/27
865 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 733,555
Bonds, Atlanticare Regional Medical Center, Series 2007,
5.000%, 7/01/37
890 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 1,007,080
Bonds, Capital Health System Obligated Group, Series 2003A,
5.375%, 7/01/33
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 1,430,190
Bonds, CentraState Medical Center, Series 2006A, 5.000%,
7/01/30 - AGC Insured
130 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 100,993
Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
400 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 315,824
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%,
7/01/36
180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 147,686
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,258,920
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 751,103
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,901,300
445 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 330,591
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
Nuveen Investments 45
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 895 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- $ 772,564
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 522,330
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:
665 5.000%, 7/01/36 7/16 at 100.00 A2 553,160
615 5.000%, 7/01/46 7/16 at 100.00 A2 492,264
1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 1,101,991
Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,354,675
Refunding Bonds, Burdette Tomlin Memorial Hospital, Series
1999, 5.500%, 7/01/29
1,280 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 1,262,502
Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC
Insured
------------------------------------------------------------------------------------------------------------------------------------
20,585 Total Health Care 18,764,545
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
310 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 311,783
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 - 2.6% (1.7% OF TOTAL INVESTMENTS)
585 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 353,200
Development Revenue Bonds, The Evergreens Project, Series
2007, 5.625%, 1/01/38
250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 Baa1 196,913
Revenue Bonds, Winchester Gardens at Wards Homestead, Series
2004A, 5.800%, 11/01/31
New Jersey Economic Development Authority, Revenue Bonds,
Masonic Charity Foundation of New Jersey, Series 2001:
1,000 6.000%, 6/01/25 6/11 at 102.00 A- 1,006,760
335 5.500%, 6/01/31 6/11 at 102.00 A- 305,480
500 New Jersey Economic Development Authority, Revenue Bonds, 7/09 at 101.00 BB+ 329,100
United Methodist Homes of New Jersey Obligated Group, Series
1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,670 Total Long-Term Care 2,191,453
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.8% (1.9% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 A1 1,041,030
2006A, 5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,354,010
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,395,040
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 34.7% (23.1% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 671,880
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AA 1,884,897
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA
Insured
1,000 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,132,220
Guaranteed Lease Revenue Bonds, Series 2005A, 5.000%,
9/01/16 - FSA Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,100 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 A $ 1,130,415
Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 -
AMBAC Insured
620 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 683,122
Consolidation Revenue Bonds, Series 2007, 5.250%,
12/15/22 - AMBAC Insured
815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 944,927
Farmland Preservation Bonds, Series 2005C, 5.125%,
11/01/18 - FSA Insured
1,785 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 1,810,526
Series 2007A, 5.000%, 6/15/27
New Jersey Economic Development Authority, Cigarette Tax
Revenue Bonds, Series 2004:
615 5.500%, 6/15/24 6/12 at 100.00 BBB 480,973
1,200 5.750%, 6/15/34 6/14 at 100.00 BBB 857,676
1,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 1,309,728
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 49,356
115 5.125%, 6/15/37 6/17 at 100.00 Baa3 80,727
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- 609,434
1,235 5.000%, 9/01/37 9/17 at 100.00 AA- 1,223,823
525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 591,386
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- 958,633
1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 1,393,980
250 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 248,135
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 A1 1,090,320
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AA- 1,028,010
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 AA- 378,392
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 651,169
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,457,378
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,359,936
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,415,063
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- 1,349,861
3,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 709,320
6,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,245,660
1,000 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- 1,009,010
System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
Nuveen Investments 47
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ $ 311,571
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 -
CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/09 at 100.50 Baa2 1,475,070
Refunding Bonds, Matching Fund Loan Note, Series 1998A,
5.500%, 10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
38,870 Total Tax Obligation/Limited 29,542,598
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 17.7% (11.8% 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- 1,012,730
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA- 1,007,290
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA- 505,125
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 631,593
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
50 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AA 60,606
6.500%, 1/01/16 - MBIA Insured
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 3,114,000
5.000%, 1/01/19 - FGIC Insured
300 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 323,016
5.250%, 1/01/29 - FSA Insured
310 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 320,887
Bonds, One Hundred Forty Eighth Series 2008, Trust 2920,
17.177%, 8/15/32 - FSA Insured (IF)
500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 503,050
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
5,000 Port Authority of New York and New Jersey, Special Project 6/09 at 101.00 AA- 4,170,399
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 A 3,467,461
Transportation System Revenue Bonds, Series 1999, 5.125%,
11/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
15,995 Total Transportation 15,116,157
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 23.9% (15.9% OF TOTAL INVESTMENTS) (4)
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,599,416
Construction Bonds, Series 2001A, 5.000%, 6/15/21
(Pre-refunded 6/15/11) - AMBAC Insured
385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AA- (4) 451,251
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) 795,563
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) 1,393,188
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,160,990
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 603,715
415 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 A+ (4) 454,450
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) 716,800
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, Revenue 7/12 at 100.00 Baa3 (4) 1,539,554
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 845 New Jersey Health Care Facilities Financing Authority, Revenue No Opt. Call BBB- (4) $ 979,854
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured (ETM)
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 544,265
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 161,802
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 25,243
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,063,547
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 432,413
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 1,567,350
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
2,150 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 2,345,349
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 2,240,469
1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,299,510
------------------------------------------------------------------------------------------------------------------------------------
18,270 Total U.S. Guaranteed 20,374,729
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.1% (0.7% OF TOTAL INVESTMENTS)
210 Camden County Pollution Control Financing Authority, New 6/09 at 100.00 Baa3 210,441
Jersey, Solid Waste Disposal and Resource Recovery System
Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative
Minimum Tax)
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 733,215
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
960 Total Utilities 943,656
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 20.9% (13.9% OF TOTAL INVESTMENTS)
225 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 185,339
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/09 at 101.00 N/R 3,844,268
Revenue Bonds, American Water Company, Series 1997B, 5.375%,
5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 8/09 at 101.00 AA- 6,188,419
Revenue Bonds, Middlesex Water Company, Series 1998, 5.350%,
2/01/38 - MBIA Insured (Alternative Minimum Tax)
390 New Jersey Environmental Infrastructure Trust, Environmental 9/09 at 100.50 AAA 394,407
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
Nuveen Investments 49
NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 15,840 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue No Opt. Call Baa1 $ 7,202,130
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
28,090 Total Water and Sewer 17,814,563
------------------------------------------------------------------------------------------------------------------------------------
$ 151,875 Total Investments (cost $136,432,591) - 150.1% 127,894,233
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 5.1% 4,360,920
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.2)% (5) (47,025,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 85,230,153
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 36.8%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
See accompanying notes to financial statements.
50 Nuveen Investments
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.3% (0.2% 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 B1 $ 87,898
150 5.125%, 1/01/37 1/15 at 100.00 B1 71,693
------------------------------------------------------------------------------------------------------------------------------------
330 Total Consumer Discretionary 159,591
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.9% (1.9% 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 515,090
2,200 5.000%, 6/01/41 6/17 at 100.00 BBB 1,164,856
------------------------------------------------------------------------------------------------------------------------------------
3,150 Total Consumer Staples 1,679,946
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (10.0% OF TOTAL INVESTMENTS)
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA- 3,052,769
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 172,080
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 AA- 794,155
495 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 491,530
575 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 A 597,994
Jersey Institute of Technology, Series 2004B, 5.000%,
7/01/21 - AMBAC Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 523,390
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 Baa1 1,041,996
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 8/09 at 101.00 BBB- 838,500
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 A 1,412,059
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,440 Total Education and Civic Organizations 8,924,473
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.3% (0.9% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 788,840
Refinery Facilities - Hovensa LLC Coker, Series 2002,
6.500%, 7/01/21 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 4.5% (2.9% OF TOTAL INVESTMENTS)
600 New Jersey Economic Development Authority, Economic Development 11/10 at 100.00 N/R 384,696
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial 10/09 at 100.00 Ba1 1,128,875
Development Revenue Refunding Bonds, Newark Airport Marriott
Hotel, Series 1996, 7.000%, 10/01/14
Nuveen Investments 51
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS (continued)
$ 1,450 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 $ 1,100,840
Bonds, Kapkowski Road Landfill Project, Series 2002,
5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 2,614,411
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 30.7% (20.0% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 158,266
Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34
400 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 360,576
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 A 496,775
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 A 1,850,406
610 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 517,304
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 837,488
630 5.375%, 7/01/33 7/13 at 100.00 Baa1 712,877
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 953,460
Bonds, CentraState Medical Center, Series 2006A, 5.000%,
7/01/30 - AGC Insured
90 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 69,918
Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 98,458
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 400,776
140 5.625%, 7/01/31 7/11 at 100.00 A2 130,357
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AA 483,827
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BB+ 854,314
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, Revenue 7/10 at 100.00 A2 3,384,849
Bonds, Robert Wood Johnson University Hospital, Series
2000, 5.750%, 7/01/31
630 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 543,816
Bonds, Shore Memorial Health System, Series 2003, 5.000%,
7/01/23 - RAAI Insured
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 365,631
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 A2 378,478
435 5.000%, 7/01/46 7/16 at 100.00 A2 348,187
775 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 776,403
Bonds, St. Peter's University Hospital, Series 2000A,
6.875%, 7/01/20
1,390 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 1,396,255
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- $ 790,982
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
960 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 946,877
Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 -
AGC Insured
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/09 at 100.50 A3 1,107,315
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 17,963,595
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS)
225 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 190,721
Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
220 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 221,265
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 - 8.8% (5.7% OF TOTAL INVESTMENTS)
415 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 250,560
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- 1,005,750
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 3,647,519
375 New Jersey Economic Development Authority, Revenue Bonds, 7/09 at 101.00 BB+ 246,825
United Methodist Homes of New Jersey Obligated Group,
Series 1998, 5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,790 Total Long-Term Care 5,150,654
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.9% (1.2% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 A1 728,721
2006A, 5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 387,041
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,115,762
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 29.5% (19.2% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 447,920
Lease Revenue Bonds, County Administration Complex Project,
Series 2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AA 1,080,170
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA
Insured
750 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 A 770,738
Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 -
AMBAC Insured
435 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 479,287
Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22
- AMBAC Insured
530 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 614,493
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18
- FSA Insured
1,305 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 1,327,616
Series 2007A, 5.000%, 6/15/26
Nuveen Investments 53
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
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:
$ 435 5.500%, 6/15/24 6/12 at 100.00 BBB $ 340,200
700 5.750%, 6/15/34 6/14 at 100.00 BBB 500,311
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 37,966
75 5.125%, 6/15/37 6/17 at 100.00 Baa3 52,648
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- 431,063
870 5.000%, 9/01/37 9/17 at 100.00 AA- 862,127
350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 394,258
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- 678,816
985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 980,765
200 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 198,508
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 A1 1,090,320
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 AA- 786,428
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 AA- 318,930
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 560,432
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,008,954
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 706,529
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 870,808
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- 951,003
2,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 472,880
5,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,038,050
290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ 223,100
Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36
- CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
24,455 Total Tax Obligation/Limited 17,224,320
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.2% (15.8% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AA- 505,125
Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured
600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 421,062
Revenue Bonds, Continental Airlines Inc., Series 2000,
7.000%, 11/15/30 (Alternative Minimum Tax)
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 2,076,000
5.000%, 1/01/19 - FGIC Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,615,080
5.250%, 1/01/29 - FSA Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- $ 503,050
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 3,052,589
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- 1,811,160
Revenue Bonds, One Hundred Twenty-Seventh Series 2002,
5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project
Bonds, JFK International Air Terminal LLC, Sixth Series
1997:
4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AA- 4,155,759
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/09 at 101.00 AA- 41,704
------------------------------------------------------------------------------------------------------------------------------------
14,150 Total Transportation 14,181,529
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.7% (18.1% OF TOTAL INVESTMENTS) (4)
1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R (4) 1,149,190
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, New Jersey, 4/12 at 100.00 AA (4) 2,216,220
General Obligation Bonds, Series 2002, 5.000%, 4/15/21
(Pre-refunded 4/15/12) - FGIC Insured
175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AA- (4) 205,114
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) 928,792
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 365,712
1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 1,425,513
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, Multifamily 5/09 at 100.75 A+ (4) 1,920,845
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 -
AMBAC Insured (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 211,587
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,855,712
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 288,275
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,044,900
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 557,025
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 1,600,335
1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,443,900
------------------------------------------------------------------------------------------------------------------------------------
14,590 Total U.S. Guaranteed 16,213,120
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.4% (2.9% OF TOTAL INVESTMENTS)
95 Camden County Pollution Control Financing Authority, New 6/09 at 100.00 Baa3 95,200
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, 5.250%, 10/09 at 101.00 AA 1,735,925
10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 733,215
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
3,145 Total Utilities 2,564,340
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 55
NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 150 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 123,560
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 N/R 516,420
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 639,980
------------------------------------------------------------------------------------------------------------------------------------
$ 101,105 Total Investments (cost $95,759,793) - 153.3% 89,632,547
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 1,423,295
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.8)% (5) (32,600,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 58,455,842
---------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 36.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
See accompanying notes to financial statements.
56 Nuveen Investments
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund
| Portfolio of INVESTMENTS April 30, 2009
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, Solid No Opt. Call AA- $ 1,004,400
Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum
Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 31.0% (19.4% OF TOTAL
INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 9/09 at 101.00 BBB 1,847,960
Pennsylvania, College Revenue Bonds, Chatham College,
Series 1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 162,010
Pennsylvania, College Revenue Refunding Bonds, Robert
Morris College, Series 1998A, 6.000%, 5/01/28
3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,013,530
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 878,752
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 A 2,004,320
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 3,095,430
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 A 1,759,094
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 858,900
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- 627,339
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB- 195,453
575 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 N/R 522,014
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 A 622,375
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call A 586,140
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call A 550,321
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call A 516,686
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call A 481,999
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 BBB- 1,087,740
Pennsylvania, Revenue Bonds, Arcadia University, Series
2006, 4.500%, 4/01/30 - RAAI Insured
355 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 285,477
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 AA 7,623,520
Acquisition Revenue Refunding Bonds, Series 2001, 5.000%,
12/15/30 - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aa3 5,215,450
Revenue Bonds, State System of Higher Education, Series
2002W, 5.000%, 6/15/19 - AMBAC Insured
4,600 Pennsylvania Higher Educational Facilities Authority, General 6/18 at 100.00 Aa3 4,629,900
Revenue Bonds, State System of Higher Education, Series
2008AH, 5.000%, 6/15/33
Nuveen Investments 57
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- $ 1,238,821
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
2,650 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AA- 2,606,832
Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 -
MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 BBB- 4,199,650
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 -
RAAI Insured
3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AA- 4,075,497
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
320 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 327,510
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/20
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA+ 2,008,320
Bonds, University of Pennsylvania, Series 2005C, 5.000%,
7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 A- 2,990,324
Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 -
RAAI Insured
785 Pennsylvania Higher Educational Facilities Authority, Revenue 11/15 at 100.00 A 790,581
Bonds, York College Project, Series 2005EE1, 5.250%,
11/01/27 - SYNCORA GTY Insured
6,500 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 6,681,740
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 595,109
860 5.375%, 1/01/32 1/17 at 100.00 BBB 1,010,878
2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/09 at 100.00 AAA 2,838,235
College Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,786,129
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/18
------------------------------------------------------------------------------------------------------------------------------------
70,515 Total Education and Civic Organizations 67,714,036
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.6% (8.5% 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 870,401
1,555 5.125%, 4/01/35 4/15 at 100.00 Baa2 1,065,439
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 A 1,119,304
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 -
AMBAC Insured
280 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 214,049
Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 -
CIFG Insured
1,890 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 1,835,360
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 Baa2 221,613
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 3,057,780
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 1,199,663
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 5,221,103
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- 564,755
Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%,
1/01/37
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,000 Northampton County General Purpose Authority, Pennsylvania, 8/18 at 100.00 BBB+ $ 828,990
Hospital Revenue Bonds, Saint Luke's Hospital Project,
Series 2008A, 5.500%, 8/15/35
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 9,158,399
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 A 1,786,658
Bonds, Latrobe Area Hospital, Series 2002A, 5.250%,
7/01/13 - AMBAC Insured
1,060 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 558,355
Bonds, Guthrie Healthcare System, Series 2007, 1.675%,
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 BBB- 412,141
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 BBB- 281,977
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,243,320
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital
of the Sisters of Christian Charity Project, Series 2001,
6.250%, 1/01/32
------------------------------------------------------------------------------------------------------------------------------------
31,895 Total Health Care 29,639,307
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 2.9% (1.8% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 3,414,900
Bonds, Slippery Rock University Foundation Inc., Series
2007A, 5.000%, 7/01/39 - SYNCORA GTY Insured
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 BBB- 2,235,750
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 554,016
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
175 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/09 at 100.00 A2 175,298
Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,275 Total Housing/Multifamily 6,379,964
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 10.1% (6.3% OF TOTAL INVESTMENTS)
9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 8,015,309
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
2,665 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,507,632
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
1,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,612,940
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,181,275
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27
(Alternative Minimum Tax)
2,130 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,881,749
Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31
(Alternative Minimum Tax)
2,150 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 2,171,565
Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38
1,745 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,608,332
Revenue Bonds, Series 2006, 5.150%, 10/01/37 (Alternative
Minimum Tax) (UB)
910 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/09 at 100.00 AAA 917,453
Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28
(Alternative Minimum Tax)
2,125 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,062,015
Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
23,830 Total Housing/Single Family 21,958,270
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.3% (2.7% OF TOTAL INVESTMENTS)
$ 5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 $ 3,855,500
Facilities Revenue Bonds, Amtrak Project, Series 2001A,
6.375%, 11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call A 5,479,750
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 9,335,250
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS)
1,330 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 913,351
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 BBB+ 1,147,755
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 1,372,711
415 5.000%, 11/01/36 11/16 at 100.00 A 335,718
1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A 1,314,630
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/26 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,295 Total Long-Term Care 5,084,165
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 943,249
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, Exempt 5/09 at 102.00 N/R 913,868
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 1,857,117
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 26.3% (16.4% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A 1,835,352
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 6,516,120
Local Government Revenue Bonds, Series 2002, 5.750%,
7/01/17 (UB)
7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call A 2,194,196
Obligation Bonds, Series 2000, 0.000%, 9/01/30 - AMBAC
Insured
5,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,863,450
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 5,288,319
Residuals 1986, 12.678%, 3/01/27 (IF)
1,500 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 1,702,140
5.000%, 10/01/18
500 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 563,885
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 1,452,030
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC
Insured
4,135 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 4,134,669
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 3,455,130
General Obligation Refunding Bonds, Series 2002A, 5.500%,
9/01/15 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, 4/16 at 100.00 A1 1,105,513
Pennsylvania, General Obligation Bonds, Series 2006A,
5.000%, 4/01/22 - FGIC Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AA- 449,971
Revenue Bonds, Conneaut School District, Series 2003,
5.250%, 11/01/21 - FGIC Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA $ 22,334,760
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 1,537,063
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,595 Total Tax Obligation/General 57,432,598
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 9.9% (6.2% OF TOTAL INVESTMENTS)
3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AA- 3,447,815
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29
- FGIC Insured
8,725 Pennsylvania Intergovernmental Cooperative Authority, Special 6/09 at 100.00 AA 8,727,093
Tax Revenue Refunding Bonds, Philadelphia Funding Program,
Series 1999, 4.750%, 6/15/23 - FGIC Insured
2,140 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 2,164,289
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA
Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,896,776
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium 8/09 at 101.00 A 3,742,240
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 Tax No Opt. Call BBB+ 557,664
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,205 Total Tax Obligation/Limited 21,535,877
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.8% (8.0% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 662,281
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Baa1 2,020,511
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+ 4,711,338
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 Aa3 2,208,844
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 Aa3 3,994,994
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 Aa3 3,032,316
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AA- 4,465,000
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- 2,916,720
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 3,225,690
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
800 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 688,128
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,665 Total Transportation 27,925,822
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 32.1% (20.1% OF TOTAL INVESTMENTS) (4)
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A+ (4) 3,846,887
Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) -
FGIC Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 A (4) 1,428,464
Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded
5/01/11) - FGIC Insured
Nuveen Investments 61
NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
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) $ 5,845,945
1,465 5.100%, 5/01/21 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) 1,608,321
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A3 (4) 1,623,468
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) 5,515,150
Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) -
MBIA Insured
425 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 N/R (4) 436,054
College Revenue Bonds, College of Misericordia Project,
Series 1999, 6.000%, 5/01/19 (Pre-refunded 11/01/09) - ACA
Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 A (4) 6,981,000
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 1,303,223
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, Revenue 1/13 at 100.00 A1 (4) 764,517
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 12,089,952
Pennsylvania, Lease Revenue Bonds, Series 2001B, 5.250%,
10/01/30 (Pre-refunded 10/01/11) - FSA Insured
650 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 808,425
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
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) 6,274,190
3,185 5.000%, 11/01/31 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A (4) 3,576,182
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AA- (4) 6,681,818
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) 1,119,715
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) 2,161,000
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) 3,714,150
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
3,575 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 4,415,161
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
62,495 Total U.S. Guaranteed 70,193,622
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.4% (4.0% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, No Opt. Call Baa2 1,245,538
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
610 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 612,245
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, Pennsylvania, 2/15 at 100.00 AA- 1,245,930
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, General 9/14 at 100.00 AAA 708,120
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA
Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 2,094,360
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA
Insured
5,490 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 4,778,771
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 $ 3,330,481
Pollution Control Revenue Refunding Bonds, PSEG Power Project,
Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
15,180 Total Utilities 14,015,445
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 6.8% (4.3% OF TOTAL INVESTMENTS)
2,100 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AA- 2,158,842
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 2,288,062
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- 4,522,200
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, Water 7/14 at 100.00 AAA 2,051,440
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
1,815 Philadelphia, Pennsylvania, Water and Wastewater Revenue 11/12 at 100.00 A 1,718,823
Bonds, Series 2001A, 5.000%, 11/01/31 - FGIC Insured
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,219,487
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,270 Total Water and Sewer 14,958,854
------------------------------------------------------------------------------------------------------------------------------------
$ 362,230 Total Investments (cost $356,718,588) - 159.8% 349,034,727
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.3)% (26,855,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.7% 7,923,186
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.2)% (5) (111,750,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 218,352,913
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 32.0%.
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 Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
Nuveen Investments 63
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.6% (15.9% OF TOTAL INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 N/R $ 665,634
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 162,010
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 AA- 1,295,298
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 811,156
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/09 at 101.00 BB+ 2,087,130
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 A 1,609,931
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 787,325
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- 1,782,731
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AA- 1,405,121
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AA- 1,033,750
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- 575,723
250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB- 195,453
3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 A 3,092,222
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 BBB- 1,130,819
Pennsylvania, Revenue Bonds, Arcadia University, Series
2006, 4.500%, 4/01/30 - RAAI Insured
325 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 261,352
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aa3 4,261,023
Revenue Bonds, State System of Higher Education, Series
2002W, 5.000%, 6/15/19 - AMBAC Insured
4,200 Pennsylvania Higher Educational Facilities Authority, General 6/18 at 100.00 Aa3 4,227,300
Revenue Bonds, State System of Higher Education, Series
2008AH, 5.000%, 6/15/33
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,109,328
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
2,420 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AA- 2,380,578
Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 -
MBIA Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AA- 3,159,300
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
1,845 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,749,042
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/32
2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA+ 2,008,320
Bonds, University of Pennsylvania, Series 2005C, 5.000%,
7/15/38
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 A- 1,311,821
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 -
RAAI Insured
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 800 Pennsylvania Higher Educational Facilities Authority, Revenue 11/15 at 100.00 A $ 805,688
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 950,010
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, Tender 8/16 at 100.00 AA 4,070,220
Option Bond Trust 3214, 13.459%, 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 548,434
790 5.375%, 1/01/32 1/17 at 100.00 BBB 928,598
1,545 State Public School Building Authority, Pennsylvania, College 5/15 at 100.00 Aa3 1,668,631
Revenue Bonds, Montgomery County Community College, Series
2005, 5.000%, 5/01/18 - AMBAC Insured
750 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 809,348
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/19
------------------------------------------------------------------------------------------------------------------------------------
47,560 Total Education and Civic Organizations 46,883,296
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 13.8% (9.3% 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 870,401
1,455 5.125%, 4/01/35 4/15 at 100.00 Baa2 996,922
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 A 1,225,326
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 -
AMBAC Insured
395 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 301,962
Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 -
CIFG Insured
1,885 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 1,830,505
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 Baa2 4,080,650
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 2,787,428
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 1,199,663
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 4,400,574
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- 517,030
Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%,
1/01/37
Northampton County General Purpose Authority, Pennsylvania,
Hospital Revenue Bonds, Saint Luke's Hospital Project,
Series 2008A:
1,235 5.250%, 8/15/23 8/18 at 100.00 BBB+ 1,119,281
1,000 5.500%, 8/15/35 8/18 at 100.00 BBB+ 828,990
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/09 at 100.00 BB- 1,595,080
2,000 5.625%, 7/01/24 7/09 at 100.00 BB- 1,411,960
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 A 1,880,693
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 A 1,327,548
970 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 510,948
Bonds, Guthrie Healthcare System, Series 2007, 1.675%,
12/01/31 - AMBAC Insured
Nuveen Investments 65
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
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 BBB $ 372,889
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 BBB 251,493
------------------------------------------------------------------------------------------------------------------------------------
31,420 Total Health Care 27,509,343
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.8% (3.2% OF TOTAL INVESTMENTS)
3,060 Bucks County Redevelopment Authority, Pennsylvania, Section 8 8/09 at 100.00 Baa2 2,973,065
Assisted Second Lien Multifamily Mortgage Revenue Bonds,
Country Commons Apartments, Series 1993A, 6.200%, 8/01/14
(Alternative Minimum Tax)
2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 2,032,740
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- 1,711,944
3,400 5.000%, 7/01/37 - SYNCORA GTY Insured 7/15 at 100.00 BBB- 2,303,500
740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 512,465
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
11,235 Total Housing/Multifamily 9,533,714
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4% (4.9% OF TOTAL INVESTMENTS)
820 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 823,731
GNMA Mortgage-Backed Securities Program Single Family
Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32
(Alternative Minimum Tax)
90 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/09 at 100.75 AA+ 90,364
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22
(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+ 429,983
1,900 5.450%, 10/01/38 10/17 at 100.00 AA+ 1,919,057
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 2006:
1,365 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ 1,284,397
4,000 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 3,562,360
3,295 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 3,036,936
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 2007:
1,355 4.600%, 10/01/27 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 1,181,275
1,710 4.850%, 10/01/31 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 1,510,700
765 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/09 at 100.00 AAA 765,757
Mortgage Revenue Bonds, Series 1997A, 6.200%, 10/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
15,730 Total Housing/Single Family 14,604,560
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.2% (2.2% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, 10/09 at 100.00 BBB 1,946,560
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, Exempt 5/11 at 101.00 A2 1,567,620
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 A 2,938,980
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 6,453,160
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.6% (3.1% OF TOTAL INVESTMENTS)
4,905 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 3,368,411
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 BBB+ 812,010
Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%,
12/01/22 - RAAI Insured
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
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 $ 1,303,974
230 5.000%, 11/01/36 11/16 at 100.00 A 186,061
Pennsylvania Economic Development Financing Authority,
Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series
2000:
1,000 6.150%, 12/01/20 - RAAI Insured 8/09 at 100.00 BBB 1,000,780
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 BBB 1,667,680
1,230 Pennsylvania Economic Development Financing Authority, 6/09 at 100.00 BB+ 764,888
Revenue Bonds, Northwestern Human Services Inc., Series
1998A, 5.250%, 6/01/28
------------------------------------------------------------------------------------------------------------------------------------
11,930 Total Long-Term Care 9,103,804
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 890,846
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 430,150
Environmental Improvement Revenue Refunding Bonds, Series
2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
4,500 Pennsylvania Economic Development Financing Authority, Exempt 5/09 at 102.00 N/R 2,349,945
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 3,670,941
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 17.1% (11.5% 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 878,938
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,343,320
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,282,903
260 Lower Merion School District, Montgomery County, 9/17 at 100.00 Aaa 284,825
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 Aa3 2,221,511
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 5,293,793
Residuals 1986, 12.678%, 3/01/27 (IF)
3,200 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 3,631,232
5.000%, 10/01/18
1,000 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 1,127,770
5.000%, 1/01/18
1,500 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 1,452,030
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 3,774,698
Improvement General Obligation Bonds, Series 2005, 5.000%,
7/15/35 - FSA Insured
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 2,973,888
2006B, 5.250%, 9/01/16 - FSA Insured
6,710 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 1,746,881
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 AA- 364,021
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AA- 463,687
1,500 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aa3 1,502,040
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 1,610,507
Pennsylvania, General Obligation Bonds, Series 2001A,
5.000%, 4/01/19 - FSA Insured
Nuveen Investments 67
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA $ 1,543,682
Pennsylvania, General Obligation Bonds, Series 2005D,
5.000%, 9/01/17 - FSA Insured
2,400 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 2,418,648
2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
41,030 Total Tax Obligation/General 33,914,374
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 8.7% (5.9% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AA- 1,467,435
Convention Center Revenue Bonds, Series 2005, 5.000%,
1/15/36 - FGIC Insured
1,950 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 1,972,133
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 5,380,493
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 - FSA
Insured
6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 5,657,878
Revenue Bonds, Series 2007N, 5.500%, 7/01/29 - AMBAC
Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 511,488
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC
Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AA- 2,371,691
Transportation Authority, Series 2003AA, 5.500%, 7/01/19
- MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
19,750 Total Tax Obligation/Limited 17,361,118
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 19.6% (13.2% OF TOTAL INVESTMENTS)
650 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 683,306
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 3,733,038
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 Aa3 3,589,372
Series 2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,773,586
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
3,250 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AA- 2,633,150
Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative
Minimum Tax)
10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA- 9,151,597
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 6/09 at 100.00 N/R 6,509,925
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- 1,967,600
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC
Insured
2,250 Scranton Parking Authority, Pennsylvania , Guaranteed 6/17 at 100.00 BBB- 1,757,408
Revenue Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured
940 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 808,550
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Baa3 5,257,356
Airport System Revenue Bonds, Series 2003B, 5.000%,
1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
43,170 Total Transportation 38,864,888
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.7% (15.3% OF TOTAL INVESTMENTS) (4)
1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AA- (4) 1,818,735
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) 1,381,188
Series 2003, 5.250%, 7/15/23 (Pre-refunded 7/15/13) -
FGIC Insured
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A3 (4) $ 1,872,786
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 A (4) 2,268,714
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) 2,938,468
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 1,122,048
College Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15
(ETM)
2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 BBB- (4) 2,221,800
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 BBB- (4) 1,643,190
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) 4,390,352
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, General 7/09 at 101.00 AAA 5,852,233
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:
635 6.500%, 12/01/11 (ETM) No Opt. Call AAA 687,197
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,683,303
1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,183,866
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) 2,162,411
1,955 5.000%, 2/01/21 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1 (4) 2,190,421
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,594,563
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) 2,801,025
College Revenue Bonds, Elizabethtown College Project,
Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,085 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,339,986
Pennsylvania, Special Obligation Bonds, Series 1985A,
9.500%, 11/15/14 (ETM)
------------------------------------------------------------------------------------------------------------------------------------
40,345 Total U.S. Guaranteed 45,152,286
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 9.2% (6.2% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, No Opt. Call Baa2 1,120,984
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 -
AMBAC Insured
830 Carbon County Industrial Development Authority, No Opt. Call BBB- 833,054
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, 5/09 at 100.00 A 6,579,238
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 1,768,000
Pennsylvania, Pollution Control Revenue Refunding Bonds,
PSEG Power LLC, Series 2001A, 5.850%, 6/01/27
(Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, 2/15 at 100.00 AA- 1,873,252
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, General 9/14 at 100.00 AAA 708,120
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA
Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 1,047,180
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA
Insured
Nuveen Investments 69
NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 5,050 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A $ 4,395,773
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,445 Total Utilities 18,325,601
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.1% (8.1% OF TOTAL INVESTMENTS)
305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AA 309,435
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- 1,953,238
2,120 5.000%, 12/01/23 - MBIA Insured 12/15 at 100.00 AA- 2,156,782
545 5.000%, 12/01/30 - MBIA Insured 12/15 at 100.00 AA- 519,385
2,500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,594,175
Pennsylvania, Guaranteed Water Revenue Bonds, Series
2004, 5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AA- 3,699,680
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, Water 7/14 at 100.00 AAA 2,051,440
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- 3,269,448
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 1,065,421
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 N/R 2,342,796
2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,064,640
Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 1,988,479
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,405 Total Water and Sewer 24,014,919
------------------------------------------------------------------------------------------------------------------------------------
$ 319,960 Total Investments (cost $307,032,759) - 148.6% 295,392,004
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (3.5)% (7,025,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.9% 9,646,503
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.0)% (5) (99,275,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 198,738,507
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 33.6%.
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 Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
70 Nuveen Investments
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,004,400
Waste Disposal Revenue Bonds, Procter & Gamble Paper
Project, Series 2001, 5.375%, 3/01/31 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 27.3% (18.2% OF TOTAL INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 81,005
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 167,212
Pennsylvania, Revenue Bonds, Robert Morris University,
Series 2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 N/R 2,087,415
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 505,162
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 514,022
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 885,570
Refunding Bonds, Neumann College, Series 2001, 6.000%,
10/01/31
300 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 BBB- 222,258
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 A 303,469
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 148,263
160 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 BBB- 127,056
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 1,011,760
Pennsylvania, Revenue Bonds, Hill School, Series 2005,
5.000%, 8/15/27 - MBIA Insured
75 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 60,312
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aa3 1,043,090
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 905,850
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- 189,924
Revenue Bonds, Allegheny College, Series 2006, 4.750%,
5/01/31
540 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA- 531,203
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- 1,259,895
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- 737,170
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 370,797
Revenue Bonds, Thomas Jefferson University, Series 2002,
5.500%, 1/01/16
Nuveen Investments 71
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
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 $ 297,554
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 280,905
Pennsylvania, Revenue Bonds, Leadership Learning
Partners, Series 2005A, 5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BBB- 172,972
Pennsylvania, Revenue Bonds, Richard Allen Preparatory
Charter School, Series 2006, 6.250%, 5/01/33
------------------------------------------------------------------------------------------------------------------------------------
13,145 Total Education and Civic Organizations 11,902,864
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 21.8% (14.6% OF TOTAL INVESTMENTS)
550 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 376,844
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- 546,003
Bonds, Sacred Heart Hospital, Series 2005, 6.000%,
11/15/16
2,500 Chester County Health and Educational Facilities Authority, 5/09 at 100.50 AA- 2,489,924
Pennsylvania, Health System Revenue Bonds, Jefferson
Health System, Series 1997B, 5.375%, 5/15/27
80 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 61,157
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 143,591
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 605,963
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 239,933
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 984,410
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- 111,360
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 2,187,839
Revenue Bonds, UPMC Health System, Series 2001A, 6.000%,
1/15/31
25 Pottsville Hospital Authority, Pennsylvania, Hospital 7/09 at 100.00 BB- 17,650
Revenue 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 113,251
Bonds, Guthrie Healthcare System, Series 2007, 2.713%,
12/01/31 - AMBAC Insured
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,015,880
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 621,660
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 9,515,465
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 474,250
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 69,252
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 543,502
------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.7% (5.8% OF TOTAL INVESTMENTS)
$ 1,425 Allegheny County Residential Finance Authority, 5/09 at 102.00 Aaa $ 1,407,601
Pennsylvania, GNMA Mortgage-Backed Securities Program
Single Family Mortgage Revenue Bonds, Series 1998DD-2,
5.400%, 11/01/29 (Alternative Minimum Tax)
450 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 454,514
Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 2006:
480 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ 451,656
500 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 445,295
700 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 645,176
430 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 379,884
Revenue Bonds, Series 2007, 4.850%, 10/01/31 (Alternative
Minimum Tax) (UB)
------------------------------------------------------------------------------------------------------------------------------------
3,985 Total Housing/Single Family 3,784,126
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.7% (4.5% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A2 1,567,620
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 A 1,335,900
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 2,903,520
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 17.2% (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 152,693
360 5.750%, 1/01/37 1/17 at 100.00 N/R 223,430
265 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 181,983
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
200 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A 161,792
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- 1,991,808
Center Revenue Bonds, Willow Valley Retirement
Communities Project, Series 2001, 5.875%, 6/01/31
185 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 152,669
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 520,471
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 6/09 at 100.00 BB+ 1,108,262
50 5.125%, 6/01/18 6/09 at 100.00 BB+ 38,764
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 A 609,613
2,875 5.250%, 7/01/31 - AMBAC Insured 7/11 at 101.00 A 2,373,887
------------------------------------------------------------------------------------------------------------------------------------
8,950 Total Long-Term Care 7,515,372
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.7% (2.5% OF TOTAL INVESTMENTS)
350 Allegheny County Industrial Development Authority, No Opt. Call BB 321,192
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 157,208
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%,
12/01/19 (Alternative Minimum Tax)
Nuveen Investments 73
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ $ 745,508
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, 5/09 at 102.00 N/R 391,658
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 1,615,566
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.2% (9.4% OF TOTAL INVESTMENTS)
300 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 340,428
5.000%, 10/01/18
375 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 363,008
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC
Insured
840 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 839,933
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 3,442,019
General Obligation Refunding Bonds, Series 2002A, 5.500%,
9/01/14 - FSA Insured
2,220 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 577,955
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC
Insured
600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 604,662
2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
7,335 Total Tax Obligation/General 6,168,005
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 14.4% (9.6% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 743,230
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- 440,231
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 429,824
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA
Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,133,410
Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 1,072,880
Revenue Bonds, Series 2003B, 5.250%, 11/15/17 - FSA
Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AA- 1,535,700
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- 677,760
Revenue Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA
Insured
630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 111,888
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC
Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 145,880
Tanger Outlet Victory Center Tax Increment Bonds, Series
2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
7,005 Total Tax Obligation/Limited 6,290,803
------------------------------------------------------------------------------------------------------------------------------------
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.1% (8.0% OF TOTAL INVESTMENTS)
$ 130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 $ 136,661
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 811,530
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 434,666
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA- 1,601,530
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 6/09 at 100.00 N/R 2,129,290
Authority, Pennsylvania, Parking Revenue Bonds, Series
2001A, 5.375%, 12/01/30 - AMBAC Insured
160 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 137,626
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,670 Total Transportation 5,251,303
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 13.5% (9.0% OF TOTAL INVESTMENTS) (4)
1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,189,320
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) 1,232,130
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17
(Pre-refunded 2/15/12) - FGIC Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 1,150,880
Ordinance, Fourth Series 1998, 5.250%, 8/01/18
(Pre-refunded 8/01/13) - FSA Insured
150 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 186,560
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
1,700 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 1,928,446
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) 198,283
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
5,125 Total U.S. Guaranteed 5,885,619
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.3% (2.9% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, No Opt. Call Baa2 498,215
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 264,540
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 141,624
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA
Insured
1,105 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 961,847
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,030 Total Utilities 1,866,226
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 75
NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.6% (1.7% OF TOTAL INVESTMENTS)
$ 500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA $ 518,835
Pennsylvania, Guaranteed Water Revenue Bonds, Series
2004, 5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 615,433
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,134,268
------------------------------------------------------------------------------------------------------------------------------------
$ 71,660 Total Investments (cost $69,265,939) - 150.0% 65,381,039
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.9)% (1,270,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.5% 1,976,253
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (5) (22,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 43,587,292
---------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 34.4%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
76 Nuveen Investments
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 19.0% (12.5% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 810,050
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 577,328
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 514,022
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 287,810
Refunding Bonds, Neumann College, Series 2001, 6.000%,
10/01/31
450 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 BBB- 333,387
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 BBB- 349,761
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 168,713
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AA- 1,551,737
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+ 142,938
College Revenue Bonds, Gannon University, Series
2007-GG3, 5.000%, 5/01/32 - RAAI Insured
80 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 64,333
Series 2007G, 5.125%, 5/01/33 - RAAI Insured
1,050 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 1,056,825
General 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- 246,038
Revenue Bonds, Allegheny College, Series 2006, 4.750%,
5/01/31
610 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA- 600,063
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- 842,480
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 367,567
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 316,765
Pennsylvania, Revenue Bonds, Leadership Learning
Partners, Series 2005A, 5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BBB- 203,054
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 1,079,130
Authority, Pennsylvania, Revenue Bonds, Bucknell
University, Series 2002A, 5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
10,355 Total Education and Civic Organizations 9,512,001
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 77
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.8% (9.8% OF TOTAL INVESTMENTS)
$ 625 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 $ 428,231
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- 627,051
Bonds, Sacred Heart Hospital, Series 2005, 6.000%,
11/15/16
2,000 Chester County Health and Educational Facilities Authority, 5/09 at 100.50 AA- 1,991,940
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- 72,624
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 168,564
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 689,865
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 1,109,262
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- 127,269
Revenue Bonds, Pocono Medical Center, Series 2007,
5.125%, 1/01/37
70 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 71,232
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 129,054
Bonds, Guthrie Healthcare System, Series 2007, 2.713%,
12/01/31 - AMBAC Insured
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,476,376
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 23,284
600 6.250%, 1/01/32 1/12 at 100.00 BBB 497,328
------------------------------------------------------------------------------------------------------------------------------------
8,170 Total Health Care 7,412,080
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.3% (0.8% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 542,000
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 83,102
Pennsylvania, Multifamily Housing Revenue Bonds,
Presbyterian Homes Germantown - Morrisville Project,
Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 625,102
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.2% (4.7% OF TOTAL INVESTMENTS)
250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 222,648
Revenue Bonds, Series 1995A, 4.900%, 10/01/37
(Alternative Minimum Tax)
275 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 258,761
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26
(Alternative Minimum Tax)
400 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 368,672
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37
(Alternative Minimum Tax)
500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 505,015
Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY (continued)
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 2006:
$ 275 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ $ 258,761
250 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 222,648
400 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 368,672
Pennsylvania Housing Finance Agency, Single Family Mortgage
Revenue Bonds, Series 2007:
1,100 4.600%, 10/01/27 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 958,969
480 4.850%, 10/01/31 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 424,056
------------------------------------------------------------------------------------------------------------------------------------
3,930 Total Housing/Single Family 3,588,202
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.3% (4.2% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 A 3,166,350
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 6.6% (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 173,515
400 5.750%, 1/01/37 1/17 at 100.00 N/R 248,256
300 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 206,019
Bonds, Diakon Lutheran Social Ministries, Series 2007,
5.000%, 1/01/36
205 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A 165,837
Center Revenue Bonds, Masonic Homes Project, Series 2006,
5.000%, 11/01/36
185 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 152,669
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 520,471
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 6/09 at 100.00 BB+ 1,126,138
50 5.125%, 6/01/18 6/09 at 100.00 BB+ 38,764
750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A 682,403
Pennsylvania, Revenue Bonds, Philadelphia Corporation for
the Aging Project, Series 2001B, 5.250%, 7/01/23 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
4,185 Total Long-Term Care 3,314,072
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 3.9% (2.6% OF TOTAL INVESTMENTS)
400 Allegheny County Industrial Development Authority, No Opt. Call BB 367,076
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 209,611
Pennsylvania, Solid Waste Disposal Revenue Bonds,
International Paper Company, Series 2005B, 5.200%,
12/01/19 (Alternative Minimum Tax)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 994,010
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, 5/09 at 102.00 N/R 391,658
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 1,962,355
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 21.6% (14.2% OF TOTAL INVESTMENTS)
1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AA- 1,757,487
General Obligation Bonds, Series 2002A, 5.375%, 10/01/26
- FGIC Insured
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,344,080
Local Government Revenue Bonds, Series 2002, 5.750%,
7/01/17 (UB)
Nuveen Investments 79
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
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- $ 795,021
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AA- 1,096,580
375 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 363,008
Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC
Insured
950 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 949,924
Improvement General Obligation Bonds, Series 2005,
5.000%, 7/15/35 - FSA Insured
225 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 247,824
2006B, 5.250%, 9/01/16 - FSA Insured
2,510 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 653,453
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC
Insured
600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 604,662
2006, 5.000%, 6/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
12,125 Total Tax Obligation/General 10,812,039
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.9% (15.7% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 743,230
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- 1,575,980
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 Baa1 4,004,960
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 490,505
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA
Insured
1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,360,092
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- 1,028,500
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AA- 1,770,388
800 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AA- 722,944
Revenue Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA
Insured
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 126,096
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC
Insured
250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 145,880
Tanger Outlet Victory Center Tax Increment Bonds, Series
2006A, 5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
13,195 Total Tax Obligation/Limited 11,968,575
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.4% (3.5% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 136,661
Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 811,530
Revenue Bonds, Amtrak 30th Street Station Parking Garage,
Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative
Minimum Tax)
670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 693,396
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION (continued)
$ 180 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- $ 154,829
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Baa3 879,330
Airport System Revenue Bonds, Series 2003A, 5.000%,
1/01/28 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,980 Total Transportation 2,675,746
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.3% (19.3% OF TOTAL INVESTMENTS) (4)
2,000 Adams County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 N/R (4) 2,180,200
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 114,584
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, Pennsylvania, 10/12 at 101.00 N/R (4) 1,340,043
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 (4) 1,189,320
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 N/R (4) 597,245
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 A1 (4) 3,245,154
Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded
7/15/11) - AMBAC Insured
1,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 1,102,650
Pennsylvania, Lease Revenue Bonds, Series 2001B, 5.125%,
10/01/26 (Pre-refunded 10/01/11) - FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,301,760
Ordinance, Fourth Series 1998, 5.250%, 8/01/20
(Pre-refunded 8/01/13) - FSA Insured
60 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 74,624
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,222,640
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 (4) 262,433
Revenue Bonds, Catholic Health East, Series 2004B,
5.375%, 11/15/34 (Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
13,585 Total U.S. Guaranteed 14,630,653
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 3.0% (2.0% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 292,386
Exempt Facilities Revenue Bonds, Reliant Energy Inc.,
Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax)
145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 146,682
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA
Insured
1,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 1,079,358
Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
1,700 Total Utilities 1,518,426
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 81
NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued)
| Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.6% (6.3% OF TOTAL INVESTMENTS)
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AA- $ 4,162,136
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, Water 7/14 at 100.00 AAA 615,432
Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 4,777,568
------------------------------------------------------------------------------------------------------------------------------------
$ 81,675 Total Investments (cost $78,920,903) - 151.9% 75,963,169
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.0)% (4,500,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.1% 1,529,825
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (46.0)% (5) (23,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 49,992,994
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's 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
whose insurer has experienced downgrades as of the end of the reporting
period. 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 30.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. See Notes to
Financial Statements, Footnote 1- Inverse Floating Rate Securities for
more information.
See accompanying notes to financial statements.
82 Nuveen Investments
| Statement of ASSETS & LIABILITIES April 30, 2009
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 $432,059,118, $255,546,427,
$136,432,591 and $95,759,793, respectively) $ 407,861,589 $ 248,842,173 $ 127,894,233 $ 89,632,547
Cash 2,187,911 5,998,086 2,592,821 178,943
Receivables:
Interest 6,988,219 3,879,277 2,190,145 1,545,184
Investments sold -- -- -- --
Other assets 81,448 72,854 11,952 8,618
--------------------------------------------------------------------------------------------------------------------------
Total assets 417,119,167 258,792,390 132,689,151 91,365,292
--------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations -- -- -- --
Payables:
Common share dividends 963,644 528,825 341,929 248,614
Preferred share dividends 49,389 13,477 2,042 708
Accrued expenses:
Management fees 215,309 135,289 59,021 37,007
Other 138,286 86,906 31,006 23,121
--------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,366,628 764,497 433,998 309,450
--------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 149,825,000 91,600,000 47,025,000 32,600,000
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 265,927,539 $ 166,427,893 $ 85,230,153 $ 58,455,842
==========================================================================================================================
Common shares outstanding 20,453,722 12,036,596 6,569,912 4,520,321
==========================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 13.00 $ 13.83 $ 12.97 $ 12.93
==========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
--------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,537 $ 120,366 $ 65,699 $ 45,203
Paid-in surplus 288,713,495 171,875,082 93,319,807 64,128,513
Undistributed (Over-distribution of) net investment
income 1,341,160 896,324 383,005 336,683
Accumulated net realized gain (loss) from investments
and derivative transactions (134,124) 240,375 -- 72,689
Net unrealized appreciation (depreciation) of investments (24,197,529) (6,704,254) (8,538,358) (6,127,246)
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 265,927,539 $ 166,427,893 $ 85,230,153 $ 58,455,842
==========================================================================================================================
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.
Nuveen Investments 83
| Statement of ASSETS & LIABILITIES (continued) April 30, 2009
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $356,718,588, $307,032,759,
$69,265,939 and $78,920,903, respectively) $ 349,034,727 $ 295,392,004 $ 65,381,039 $ 75,963,169
Cash 1,263,741 4,297,796 971,471 622,626
Receivables:
Interest 5,756,775 5,452,033 1,187,013 1,145,834
Investments sold 1,930,000 895,000 40,000 5,000
Other assets 74,121 63,851 6,276 27,152
--------------------------------------------------------------------------------------------------------------------------
Total assets 358,059,364 306,100,684 67,585,799 77,763,781
--------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Floating rate obligations 26,855,000 7,025,000 1,270,000 4,500,000
Payables:
Common share dividends 799,192 776,858 181,265 216,483
Preferred share dividends 8,343 10,998 977 1,498
Accrued expenses:
Management fees 174,011 157,687 29,944 30,938
Other 119,905 116,634 16,321 21,868
--------------------------------------------------------------------------------------------------------------------------
Total liabilities 27,956,451 8,087,177 1,498,507 4,770,787
--------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 111,750,000 99,275,000 22,500,000 23,000,000
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 218,352,913 $ 198,738,507 $ 43,587,292 $ 49,992,994
==========================================================================================================================
Common shares outstanding 16,134,098 15,618,851 3,330,584 3,725,809
==========================================================================================================================
Net asset value per Common share outstanding (net assets
applicable to Common shares, divided by Common shares
outstanding) $ 13.53 $ 12.72 $ 13.09 $ 13.42
==========================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
--------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 161,341 $ 156,189 $ 33,306 $ 37,258
Paid-in surplus 228,592,566 213,988,850 47,287,047 52,810,121
Undistributed (Over-distribution of) net investment
income 995,879 1,640,390 262,184 330,715
Accumulated net realized gain (loss) from investments
and derivative transactions (3,713,012) (5,406,167) (110,345) (227,366)
Net unrealized appreciation (depreciation) of investments (7,683,861) (11,640,755) (3,884,900) (2,957,734)
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 218,352,913 $ 198,738,507 $ 43,587,292 $ 49,992,994
==========================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
==========================================================================================================================
See accompanying notes to financial statements.
84 Nuveen Investments
| Statement of OPERATIONS Year Ended April 30, 2009
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 22,025,902 $ 12,739,315 $ 6,854,320 $ 4,881,958
--------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,689,145 1,635,299 856,166 598,621
Preferred shares - auction fees 397,609 229,001 119,426 85,053
Preferred shares - dividend disbursing agent fees 29,986 29,982 10,000 10,000
Shareholders' servicing agent fees and expenses 33,445 20,186 1,637 1,673
Interest expense on floating rate obligations -- -- -- --
Custodian's fees and expenses 71,955 52,713 28,556 24,412
Directors'/Trustees' fees and expenses 12,517 7,790 3,961 2,766
Professional fees 41,974 28,912 18,432 15,369
Shareholders' reports - printing and mailing expenses 73,648 48,346 27,339 21,547
Stock exchange listing fees 9,203 9,203 929 639
Investor relations expense 47,761 28,963 14,884 10,729
Other expenses 34,528 21,765 17,510 15,945
--------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 3,441,771 2,112,160 1,098,840 786,754
Custodian fee credit (39,484) (29,984) (11,342) (8,901)
Expense reimbursement -- -- (194,331) (182,249)
--------------------------------------------------------------------------------------------------------------------------
Net expenses 3,402,287 2,082,176 893,167 595,604
--------------------------------------------------------------------------------------------------------------------------
Net investment income 18,623,615 10,657,139 5,961,153 4,286,354
--------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (155,945) (101,953) 166,737 69,453
Futures -- 338,253 -- --
Change in net unrealized appreciation (depreciation) of
investments (24,866,144) (9,620,671) (8,483,580) (6,423,352)
--------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (25,022,089) (9,384,371) (8,316,843) (6,353,899)
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,606,751) (2,047,311) (1,074,755) (791,185)
From accumulated net realized gains (715,741) (385,419) (182,420) (107,762)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (4,322,492) (2,432,730) (1,257,175) (898,947)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ (10,720,966) $ (1,159,962) $ (3,612,865) $ (2,966,492)
==========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 85
| Statement of OPERATIONS (continued) Year Ended April 30, 2009
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 18,723,176 $ 16,938,933 $ 3,733,269 $ 4,201,163
--------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,167,214 1,972,586 440,554 501,624
Preferred shares - auction fees 320,562 287,578 61,686 70,347
Preferred shares - dividend disbursing agent fees 29,970 29,986 10,000 10,000
Shareholders' servicing agent fees and expenses 35,762 31,254 1,873 1,650
Interest expense on floating rate obligations 400,043 93,002 1,741 6,158
Custodian's fees and expenses 70,951 64,252 24,262 29,726
Directors'/Trustees' fees and expenses 10,257 8,106 2,065 2,351
Professional fees 33,011 31,870 13,598 14,300
Shareholders' reports - printing and mailing expenses 69,660 65,037 17,984 20,450
Stock exchange listing fees 9,203 9,203 471 526
Investor relations expense 41,052 37,954 8,459 9,910
Other expenses 29,987 22,299 15,746 16,062
--------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 3,217,672 2,653,127 598,439 683,104
Custodian fee credit (17,685) (33,302) (4,081) (785)
Expense reimbursement -- -- (99,917) (152,715)
--------------------------------------------------------------------------------------------------------------------------
Net expenses 3,199,987 2,619,825 494,441 529,604
--------------------------------------------------------------------------------------------------------------------------
Net investment income 15,523,189 14,319,108 3,238,828 3,671,559
--------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (776,556) (3,905,819) 4,996 (378,076)
Futures -- -- -- 149,827
Change in net unrealized appreciation (depreciation) of
investments (14,413,994) (13,707,278) (4,915,187) (4,109,958)
--------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (15,190,550) (17,613,097) (4,910,191) (4,338,207)
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,239,309) (2,916,528) (612,503) (701,178)
From accumulated net realized gains -- -- -- (5,495)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Preferred shareholders (3,239,309) (2,916,528) (612,503) (706,673)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ (2,906,670) $ (6,210,517) $ (2,283,866) $ (1,373,321)
==========================================================================================================================
See accompanying notes to financial statements.
86 Nuveen Investments
| Statement of CHANGES in NET ASSETS
NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ)
------------------------------ ------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/09 4/30/08 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 18,623,615 $ 18,787,832 $ 10,657,139 $ 10,807,974
Net realized gain (loss) from:
Investments (155,945) 1,697,124 (101,953) 1,002,315
Forward swaps -- 1,271,098 -- 560,840
Futures -- -- 338,253 --
Change in net unrealized appreciation (depreciation) of:
Investments (24,866,144) (16,370,030) (9,620,671) (7,924,293)
Forward swaps -- (2,853) -- (984)
Distributions to Preferred Shareholders:
From net investment income (3,606,751) (5,356,071) (2,047,311) (3,012,048)
From accumulated net realized gains (715,741) (225,437) (385,419) (175,613)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (10,720,966) (198,337) (1,159,962) 1,258,191
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,393,416) (13,396,750) (7,626,004) (7,926,161)
From accumulated net realized gains (1,835,395) (612,481) (1,016,977) (497,644)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (15,228,811) (14,009,231) (8,642,981) (8,423,805)
--------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders due
to reinvestment of distributions -- -- -- --
Repurchased (317,035) -- (143,059) --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions (317,035) -- (143,059) --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (26,266,812) (14,207,568) (9,946,002) (7,165,614)
Net assets applicable to Common shares at the beginning
of year 292,194,351 306,401,919 176,373,895 183,539,509
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
year $ 265,927,539 $ 292,194,351 $ 166,427,893 $ 176,373,895
==========================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 1,341,160 $ (281,426) $ 896,324 $ (87,500)
==========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 87
| Statement of CHANGES in NET ASSETS (continued)
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------ ------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/09 4/30/08 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,961,153 $ 6,154,007 $ 4,286,354 $ 4,379,414
Net realized gain (loss) from:
Investments 166,737 222,219 69,453 667,227
Forward swaps -- 372,082 -- 194,404
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (8,483,580) (5,887,711) (6,423,352) (4,419,598)
Forward swaps -- (590) -- (295)
Distributions to Preferred Shareholders:
From net investment income (1,074,755) (1,639,115) (791,185) (1,046,557)
From accumulated net realized gains (182,420) (53,203) (107,762) (214,756)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (3,612,865) (832,311) (2,966,492) (440,161)
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,340,103) (4,465,787) (3,120,632) (3,231,672)
From accumulated net realized gains (505,780) (176,924) (331,997) (685,253)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (4,845,883) (4,642,711) (3,452,629) (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 (73,131) -- (29,212) --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions (73,131) 34,444 (29,212) 23,495
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (8,531,879) (5,440,578) (6,448,333) (4,333,591)
Net assets applicable to Common shares at the beginning
of year 93,762,032 99,202,610 64,904,175 69,237,766
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
year $ 85,230,153 $ 93,762,032 $ 58,455,842 $ 64,904,175
==========================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 383,005 $ (123,595) $ 336,683 $ (30,843)
==========================================================================================================================
See accompanying notes to financial statements.
88 Nuveen Investments
PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM
QUALITY (NQP) INCOME 2 (NPY)
------------------------------ ------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/09 4/30/08 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,523,189 $ 15,437,317 $ 14,319,108 $ 14,156,508
Net realized gain (loss) from:
Investments (776,556) (700,898) (3,905,819) (976,106)
Forward swaps -- (1,940,455) -- (524,955)
Futures -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (14,413,994) (11,038,711) (13,707,278) (13,138,981)
Forward swaps -- 340,646 -- (181,467)
Distributions to Preferred Shareholders:
From net investment income (3,239,309) (4,735,546) (2,916,528) (4,100,251)
From accumulated net realized gains -- -- -- (267,657)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (2,906,670) (2,637,647) (6,210,517) (5,032,909)
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (10,970,472) (10,625,493) (9,783,604) (9,656,362)
From accumulated net realized gains -- -- -- (688,161)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (10,970,472) (10,625,493) (9,783,604) (10,344,523)
--------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from shares issued to shareholders due
to reinvestment of distributions -- -- -- --
Repurchased (297,461) (1,853,014) (519,640) (2,020,258)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions (297,461) (1,853,014) (519,640) (2,020,258)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (14,174,603) (15,116,154) (16,513,761) (17,397,690)
Net assets applicable to Common shares at the beginning
of year 232,527,516 247,643,670 215,252,268 232,649,958
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
year $ 218,352,913 $ 232,527,516 $ 198,738,507 $ 215,252,268
==========================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 995,879 $ (317,352) $ 1,640,390 $ 22,143
==========================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 89
| Statement of CHANGES in NET ASSETS (continued)
PENNSYLVANIA DIVIDEND PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM) ADVANTAGE 2 (NVY)
------------------------------ ------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
4/30/09 4/30/08 4/30/09 4/30/08
--------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,238,828 $ 3,248,492 $ 3,671,559 $ 3,696,558
Net realized gain (loss) from:
Investments 4,996 20,306 (378,076) 74,310
Forward swaps -- -- -- --
Futures -- -- 149,827 --
Change in net unrealized appreciation (depreciation) of:
Investments (4,915,187) (2,827,071) (4,109,958) (3,075,387)
Forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (612,503) (849,664) (701,178) (970,796)
From accumulated net realized gains -- (54,170) (5,495) (61,834)
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations (2,283,866) (462,107) (1,373,321) (337,149)
--------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,319,245) (2,342,752) (2,615,518) (2,635,991)
From accumulated net realized gains -- (171,961) (14,903) (181,447)
--------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (2,319,245) (2,514,713) (2,630,421) (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 (21,028) -- -- --
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from capital share transactions (21,028) 28,147 -- 9,543
--------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (4,624,139) (2,948,673) (4,003,742) (3,145,044)
Net assets applicable to Common shares at the beginning
of year 48,211,431 51,160,104 53,996,736 57,141,780
--------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of
year $ 43,587,292 $ 48,211,431 $ 49,992,994 $ 53,996,736
==========================================================================================================================
Undistributed (Over-distribution of) net investment
income at the end of year $ 262,184 $ (44,697) $ 330,715 $ (24,148)
==========================================================================================================================
See accompanying notes to financial statements.
90 Nuveen Investments
| Statement of CASH FLOWS Year Ended April 30, 2009
PENNSYLVANIA
INVESTMENT
QUALITY
(NQP)
---------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM
OPERATIONS $ (2,906,670)
Adjustments to reconcile the net increase (decrease) in net assets applicable
to Common shares from operations to net cash provided by (used in)
operating activities:
Purchases of investments (12,352,581)
Proceeds from sales and maturities of investments 30,180,197
Amortization (Accretion) of premiums and discounts, net 295,589
(Increase) Decrease in receivable for interest (9,881)
(Increase) Decrease in receivable for investments sold (1,225,000)
(Increase) Decrease in other assets (28,041)
Increase (Decrease) in payable for investments purchased (3,189,220)
Increase (Decrease) in payable for Preferred share dividends (63,614)
Increase (Decrease) in accrued management fees (12,167)
Increase (Decrease) in accrued other liabilities 14,679
Net realized (gain) loss from investments 776,556
Change in net unrealized (appreciation) depreciation of investments 14,413,994
---------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 25,893,841
---------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations 5,185,000
Cash distributions paid to Common shareholders (10,915,988)
Cost of Common shares repurchased (297,461)
Increase (Decrease) in Preferred shares, at liquidation value (20,250,000)
---------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (26,278,449)
---------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (384,608)
Cash at the beginning of year 1,648,349
---------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ 1,263,741
===================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid by Pennsylvania Investment Qualify (NQP) for interest was $400,043.
See accompanying notes to financial statements.
Nuveen Investments 91
| Notes to FINANCIAL STATEMENTS
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 NYSE Amex (formerly, 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 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 US
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. 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. When market price quotes are not
readily available (which is usually the case for municipal securities), the
pricing service or, in the absence of a pricing service for a particular
investment or derivative instrument, the Board of Directors/Trustees of the
Fund, or its designee, may establish fair value using a wide variety of market
data including yields or prices of investments of comparable quality, type of
issue, coupon, maturity and rating, market quotes or indications of value from
security dealers, evaluations of anticipated cash flows or collateral, general
market conditions and other information and analysis, including the obligor's
credit characteristics considered relevant. 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 April 30, 2009, 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.
92 Nuveen Investments
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.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. 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). Furthermore,
management of the Funds is 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 US
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period. As
of April 30, 2009, 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 2,960 -- -- --
Series T -- 624 1,881 --
Series W -- 1,440 -- 1,304
Series TH 1,850 1,600 -- --
Series F 1,183 -- -- --
-------------------------------------------------------------------------------------------
Total 5,993 3,664 1,881 1,304
===========================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------
Number of shares:
Series M -- 710 -- 920
Series T 744 -- 900 --
Series W 2,033 -- -- --
Series TH 1,693 1,748 -- --
Series F -- 1,513 -- --
-------------------------------------------------------------------------------------------
Total 4,470 3,971 900 920
===========================================================================================
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.
Nuveen Investments 93
| Notes to FINANCIAL STATEMENTS (continued)
These developments have generally not affected the portfolio 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. As of April 30, 2009,
the aggregate amount of outstanding Preferred shares redeemed by 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)
-------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 12,175,000 $ -- $ 975,000 $ 1,900,000
===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed, at liquidation value $ 20,250,000 $ 18,825,000 $ 2,500,000 $ 5,500,000
===================================================================================================================
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.
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 "(IF) - 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
"(UB) - 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 recognized as "Interest expense on floating rate
obligations" on the Statement of Operations.
94 Nuveen Investments
During the fiscal year ended April 30, 2009, New Jersey Investment Quality
(NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ),
Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY),
Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2
(NVY) invested in externally-deposited inverse floaters and/or self-deposited
inverse floaters. New Jersey Dividend Advantage 2 (NUJ) did not invest in any
such instruments during the fiscal year ended April 30, 2009.
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.
At April 30, 2009, the Funds were not invested in 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 to Recourse Trusts $ -- $ -- $ -- $ --
===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ --
===================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended April 30, 2009, were as follows:
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $ 22,135,849 $ 3,963,301 $ 149,616 $ 530,137
Average annual interest rate and fees 1.81% 2.35% 1.16% 1.16%
===================================================================================================================
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. The Funds did not invest
in forward interest rate swap transactions during the fiscal year ended April
30, 2009.
Nuveen Investments 95
| Notes to FINANCIAL STATEMENTS (continued)
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 fiscal year ended April 30,
2009.
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.
Market and Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (credit risk). Similar to credit risk, each Fund may be
exposed to counterparty risk, or the risk that an institution or other entity
with which the Fund has unsettled or open transactions will default. The
potential loss could exceed the value of the financial assets recorded on the
financial statements. Financial assets, which potentially expose each Fund to
credit risk, consist principally of cash due from counterparties on forward,
option and swap transactions. The extent of each Fund's exposure to credit and
counterparty risks in respect to these financial assets approximates their
carrying value as recorded on the Statement of Assets and Liabilities.
Each Fund helps manage credit risk by entering into agreements only with
counterparties Nuveen Asset Management (the "Adviser"), a wholly owned
subsidiary of Nuveen Investments Inc. ("Nuveen"), believes have the financial
resources to honor their obligations and by having the Adviser monitor the
financial stability of the counterparties. Additionally, counterparties may be
required to pledge collateral daily (based on the daily valuation of the
financial asset) on behalf of each Fund with a value approximately equal to the
amount of any unrealized gain above a pre-determined threshold. Reciprocally,
when each Fund has an unrealized loss, 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 valuations
fluctuate, either up or down, by at least the predetermined threshold amount.
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.
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.
96 Nuveen Investments
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US 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 April
30, 2009:
NEW JERSEY INVESTMENT QUALITY (NQJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 407,861,589 $ -- $ 407,861,589
==============================================================================================================
NEW JERSEY PREMIUM INCOME (NNJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 248,842,173 $ -- $ 248,842,173
==============================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 127,894,233 $ -- $ 127,894,233
==============================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 89,632,547 $ -- $ 89,632,547
==============================================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 349,034,727 $ -- $ 349,034,727
==============================================================================================================
PENNSYLVANIA PREMIUM INCOME 2 (NPY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 295,392,004 $ -- $ 295,392,004
==============================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 65,381,039 $ -- $ 65,381,039
==============================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
--------------------------------------------------------------------------------------------------------------
Investments $ -- $ 75,963,169 $ -- $ 75,963,169
==============================================================================================================
Nuveen Investments 97
| Notes to FINANCIAL STATEMENTS (continued)
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 approximately 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)
--------------------------- -------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08 4/30/09 4/30/08
---------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 2,302
Repurchased (30,600) -- (12,900) -- (7,200) --
---------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.34 -- $ 11.07 -- $ 10.14 --
Discount per share repurchased 18.29% -- 17.90% -- 18.93% --
===========================================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
--------------------------- -------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08 4/30/09 4/30/08
----------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- 1,545 -- -- -- --
Repurchased (2,800) -- (27,500) (139,900) (51,800) (156,100)
----------------------------------------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.41 -- $ 10.80 $ 13.23 $ 10.01 $ 12.92
Discount per share repurchased 17.27% -- 18.20% 9.64% 18.84% 8.93%
============================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
-------------------------- ---------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08
---------------------------------------------------------------------------------------------
Common shares:
Issued to shareholders due to
reinvestment of distributions -- 1,846 -- 626
Repurchased (2,000) -- -- --
---------------------------------------------------------------------------------------------
Weighted average Common share:
Price per share repurchased $ 10.49 -- -- --
Discount per share repurchased 17.12% -- -- --
=============================================================================================
98 Nuveen Investments
Preferred Shares
Transactions in Preferred shares were as follows:
NEW JERSEY
INVESTMENT QUALITY (NQJ)
------------------------------------------------------
YEAR ENDED YEAR ENDED
4/30/09 4/30/08
-----------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------
Preferred shares redeemed:
Series M 240 $ 6,000,000 -- $ --
Series TH 150 3,750,000 -- --
Series F 97 2,425,000 -- --
-----------------------------------------------------------------------------------
Total 487 $ 12,175,000 -- $ --
===================================================================================
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
---------------------------------------------- ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08
-----------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series T 39 $ 975,000 -- $ -- -- $ -- -- $ --
Series W -- -- -- -- 76 1,900,000 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 39 $ 975,000 -- $ -- 76 $ 1,900,000 -- $ --
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA
INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
---------------------------------------------- ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08
-----------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- -- $ -- 134 $ 3,350,000 -- $ --
Series T 136 3,400,000 -- -- -- -- -- --
Series W 367 9,175,000 -- -- -- -- -- --
Series TH 307 7,675,000 -- -- 332 8,300,000 -- --
Series F -- -- -- -- 287 7,175,000 -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 810 $ 20,250,000 -- $ -- 753 $ 18,825,000 -- $ --
=============================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
---------------------------------------------- ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
4/30/09 4/30/08 4/30/09 4/30/08
-----------------------------------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------------------
Preferred shares redeemed:
Series M -- $ -- -- $ -- 220 $ 5,500,000 -- $ --
Series T 100 2,500,000 -- -- -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------
Total 100 $ 2,500,000 -- $ -- 220 $ 5,500,000 -- $ --
=============================================================================================================================
There were no transactions in Preferred shares for New Jersey Premium Income
(NNJ) during the fiscal years ended April 30, 2009 and April 30, 2008.
Nuveen Investments 99
| Notes to FINANCIAL STATEMENTS (continued)
4. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended April 30, 2009, 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 $ 5,772,752 $ 3,114,075 $ 575,565 $ 197,894
Sales and maturities 16,328,950 4,688,224 4,201,246 1,915,569
======================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------
Purchases $ 12,352,581 $ 19,673,763 $ 2,603,507 $ 3,067,058
Sales and maturities 30,180,197 34,762,617 5,031,892 3,651,892
======================================================================================
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, if any. 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 April 30, 2009, 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 $ 432,010,326 $ 255,351,414 $ 136,405,667 $ 95,732,578
======================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------
Cost of investments $ 330,353,597 $ 301,456,515 $ 68,218,376 $ 74,819,697
======================================================================================
100 Nuveen Investments
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2009, 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 $ 9,874,025 $ 9,086,243 $ 2,804,494 $ 2,091,066
Depreciation (34,022,762) (15,595,484) (11,315,928) (8,191,097)
----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (24,148,737) $ (6,509,241) $ (8,511,434) $ (6,100,031)
======================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $ 12,398,913 $ 9,897,044 $ 1,671,218 $ 2,632,262
Depreciation (20,572,212) (22,988,681) (5,777,660) (5,989,618)
----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) of investments $ (8,173,299) $ (13,091,637) $ (4,106,442) $ (3,357,356)
======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2009, the Funds' 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 * $ 2,456,485 $ 1,334,676 $ 708,223 $ 563,694
Undistributed net ordinary income ** -- 125,223 11,246 6,190
Undistributed net long-term capital gains -- 115,152 -- 72,905
======================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 1,909,521 $ 2,199,968 $ 402,196 $ 513,141
Undistributed net ordinary income ** -- 112,103 -- 37,476
Undistributed net long-term capital gains -- -- 167,005 179,271
======================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 1, 2009, paid on May 1, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
Nuveen Investments 101
| Notes to FINANCIAL STATEMENTS (continued)
The tax character of distributions paid during the Funds' tax years ended April
30, 2009 and 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
2009 (NQJ) (NNJ) (NXJ) (NUJ)
-------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 17,007,219 $ 9,745,985 $ 5,316,513 $ 4,035,146
Distributions from net ordinary income** 1,227,039 516,711 339,082 174,706
Distributions from net long-term capital gains**** 1,324,097 885,685 349,118 265,912
===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2009 (NQP) (NPY) (NXM) (NVY)
-------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income*** $ 14,218,439 $ 12,592,717 $ 2,928,477 $ 3,309,636
Distributions from net ordinary income** -- 37,841 -- --
Distributions from net long-term capital gains**** -- -- -- 20,398
===================================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2008 (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
2008 (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.
*** The Funds hereby designate these amounts paid during the fiscal year ended
April 30, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended April 30, 2009.
102 Nuveen Investments
At April 30, 2009, the Funds' 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:
NEW JERSEY PENNSYLVANIA PENNSYLVANIA
INVESTMENT INVESTMENT PREMIUM
QUALITY QUALITY INCOME 2
(NQJ) (NQP) (NPY)
--------------------------------------------------------------------------------
Expiration:
April 30, 2014 $ -- $ 124,650 $ --
April 30, 2015 -- 170,887 --
April 30, 2016 -- 217,013 840,338
April 30, 2017 642 2,672,468 2,893,165
--------------------------------------------------------------------------------
Total $ 642 $ 3,185,018 $ 3,733,503
================================================================================
The following Fund has elected to defer net realized losses from investments
incurred from November 1, 2008 through April 30, 2009, the Fund's 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
following fiscal year:
NEW JERSEY
INVESTMENT
QUALITY
(NQJ)
--------------------------------------------------------------------------------
Post-October capital losses $ 133,482
================================================================================
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 the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
PENNSYLVANIA INVESTMENT QUALITY (NQP)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
AVERAGE DAILY NET ASSETS (1) 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)
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
AVERAGE DAILY NET ASSETS (1) 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 net assets managed as stated in the following
table. As of April 30, 2009, the complex-level fee rate was .1998%.
Nuveen Investments 103
| Notes to FINANCIAL STATEMENTS (continued)
The complex-level fee schedule is as follows:
COMPLEX-LEVEL NET 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 managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets includes assets managed by the
Adviser that are attributable to each fund's use of financial leverage.
For these purposes, financial leverage includes the funds' use of
preferred stock and borrowings and investments in the residual interest
certificates (also called inverse floating rate securities) in tender
option bond (TOB) trusts, including the portion of assets held by the TOB
trust that has been effectively financed by the trust's issuance of
floating rate securities, subject to an agreement by the Adviser to limit
the amount of such assets for determining managed net assets in certain
circumstances.
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.
104 Nuveen Investments
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.
7. NEW ACCOUNTING PRONOUNCEMENTS
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 April 30, 2009,
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.
Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4)
On April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4,
"Determining Fair Value When the Volume and Level of Activity for the Asset or
Liability Have Significantly Decreased and Identifying Transactions That Are Not
Orderly." FSP No. 157-4 provides additional guidance for estimating fair value
in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and
level of activity for the asset or liability have significantly decreased. FSP
No. 157-4 also requires additional disaggregation of the current SFAS No. 157
required disclosures. FSP No. 157-4 is effective for interim and annual
reporting periods ending after June 15, 2009, and shall be applied
prospectively. At this time, management is evaluating the implications of FSP
No. 157-4 and the impact it will have on the financial statement disclosures.
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 June 1, 2009, to shareholders of record on
May 15, 2009, 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 $ .0600 $ .0580 $ .0590 $ .0620
================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------
Dividend per share $ .0630 $ .0590 $ .0610 $ .0635
================================================================================
Nuveen Investments 105
| Notes to FINANCIAL STATEMENTS (continued)
Auction Participation Fees
Effective May 1, 2009, auction participation fees for Nuveen Preferred shares
with respect to auctions that have failed have been reduced from 25 bps
(annualized) to 15 bps (annualized). All auction participants have signed new
agreements incorporating this change.
Preferred Shares
On May 13, 2009, New Jersey Premium Income (NNJ) and New Jersey Dividend
Advantage (NXJ) noticed for redemption $2.075 million and $1.1 million,
respectively, of their outstanding Preferred shares, at liquidation value, using
tender option bonds (TOBs).
On June 2, 2009, New Jersey Investment Quality (NQJ) and New Jersey Dividend
Advantage 2 (NUJ) noticed for redemption $3.525 million and $0.775 million,
respectively, of their outstanding Preferred shares, at liquidation value, using
TOBs.
106 Nuveen Investments
| Financial HIGHLIGHTS
Nuveen Investments 107
| Financial HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ 14.26 $ .91 $ (1.22) $ (.18) $ (.03) $ (.52)
2008 14.96 .92 (.67) (.26) (.01) (.02)
2007(b) 14.53 .75 .47 (.20) (.01) 1.01
Year Ended 6/30:
2006 15.61 .91 (.75) (.18) (.03) (.05)
2005 14.69 .95 1.13 (.10) (.01) 1.97
2004 15.65 1.01 (.75) (.05) (.01) .20
NEW JERSEY PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 14.64 .88 (.78) (.17) (.03) (.10)
2008 15.23 .90 (.53) (.25) (.01) .11
2007(b) 14.79 .74 .49 (.20) --*** 1.03
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16)
2005 15.35 .94 1.01 (.10) (.01) 1.84
2004 16.28 .99 (.79) (.05) (.01) .14
==============================================================================================================================
Less Distributions
---------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ (.65) $ (.09) $ (.74) $ 13.00 $ 11.37
2008 (.65) (.03) (.68) 14.26 13.09
2007(b) (.55) (.03) (.58) 14.96 14.30
Year Ended 6/30:
2006 (.79) (.24) (1.03) 14.53 13.70
2005 (.94) (.11) (1.05) 15.61 15.25
2004 (.96) (.20) (1.16) 14.69 14.19
NEW JERSEY PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (.63) (.08) (.71) 13.83 11.96
2008 (.66) (.04) (.70) 14.64 13.48
2007(b) (.58) (.01) (.59) 15.23 15.12
Year Ended 6/30:
2006 (.79) (.31) (1.10) 14.79 14.16
2005 (.92) (.22) (1.14) 16.05 15.76
2004 (.94) (.13) (1.07) 15.35 14.19
============================================================================================================
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 $ 149,825 $ 25,000 $ 69,373
2008 162,000 25,000 70,092
2007(b) 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
NEW JERSEY PREMIUM INCOME (NNJ)
-------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 91,600 25,000 70,422
2008 91,600 25,000 73,137
2007(b) 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
===========================================================================================
108 Nuveen Investments
Ratios/Supplemental Data
-------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
----------------------- ----------------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
-------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (7.10)% (3.41)% $ 265,928 1.29% 1.29% 6.94%
2008 (3.64) (.08) 292,194 1.23 1.23 6.30
2007(b) 8.75 7.05 306,402 1.20**** 1.20**** 6.04****
Year Ended 6/30:
2006 (3.62) (.31) 297,539 1.21 1.21 6.05
2005 15.13 13.81 319,083 1.21 1.21 6.22
2004 (4.09) 1.26 299,671 1.21 1.21 6.64
NEW JERSEY PREMIUM INCOME (NNJ)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (5.69) (.40) 166,428 1.28 1.28 6.44
2008 (6.18) .77 176,374 1.24 1.24 6.04
2007(b) 11.10 7.03 183,540 1.21**** 1.21**** 5.83****
Year Ended 6/30:
2006 (3.36) (1.04) 178,199 1.19 1.19 5.81
2005 19.43 12.31 193,182 1.18 1.18 5.91
2004 (5.65) .85 184,753 1.18 1.18 6.23
===============================================================================================================================
Ratios/Supplemental Data
-----------------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
-------------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
Year Ended 4/30:
2009 1.27% 1.27% 6.95% 1%
2008 1.21 1.21 6.31 17
2007(b) 1.19**** 1.19**** 6.06**** 7
Year Ended 6/30:
2006 1.19 1.19 6.08 17
2005 1.20 1.20 6.23 15
2004 1.21 1.21 6.64 19
NEW JERSEY PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.26 1.26 6.46 1
2008 1.23 1.23 6.04 19
2007(b) 1.20**** 1.20**** 5.84**** 6
Year Ended 6/30:
2006 1.18 1.18 5.83 12
2005 1.17 1.17 5.92 21
2004 1.18 1.18 6.23 23
========================================================================================================
* 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 ten months ended April 30, 2007.
See accompanying notes to financial statements.
Nuveen Investments 109
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
--------------------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
========================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ 14.26 $ .91 $ (1.27) $ (.16) $ (.03) $ (.55)
2008 15.09 .94 (.80) (.25) (.01) (.12)
2007(b) 14.68 .78 .47 (.19) --*** 1.06
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01)
2005 14.59 .98 1.09 (.10) -- 1.97
2004 15.35 1.00 (.77) (.05) -- .18
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 14.35 .95 (1.42) (.17) (.02) (.66)
2008 15.31 .97 (.79) (.23) (.05) (.10)
2007(b) 14.87 .83 .47 (.20) --*** 1.10
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03
2005 14.62 1.00 1.25 (.11) -- 2.14
2004 15.44 1.03 (.82) (.06) -- .15
========================================================================================================================
Less Distributions
----------------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
===========================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ (.66) $ (.08) $ (.74) $ 12.97 $ 11.15
2008 (.68) (.03) (.71) 14.26 13.11
2007(b) (.64) (.01) (.65) 15.09 15.75
Year Ended 6/30:
2006 (.84) (.10) (.94) 14.68 14.35
2005 (.93) -- (.93) 15.63 15.38
2004 (.94) -- (.94) 14.59 13.63
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (.69) (.07) (.76) 12.93 11.46
2008 (.71) (.15) (.86) 14.35 13.59
2007(b) (.66) --*** (.66) 15.31 16.50
Year Ended 6/30:
2006 (.86) (.09) (.95) 14.87 14.90
2005 (.92) (.05) (.97) 15.79 15.90
2004 (.92) (.05) (.97) 14.62 13.74
===========================================================================================================
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 $47,025 $25,000 $70,311
2008 48,000 25,000 73,834
2007(b) 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
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------
Year Ended 4/30:
2009 32,600 25,000 69,828
2008 34,500 25,000 72,032
2007(b) 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
==============================================================================
110 Nuveen Investments
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------- ----------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
=======================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (8.95)% (3.63)% $ 85,230 1.29% 1.29% 6.74%
2008 (12.31) (.81) 93,762 1.20 1.20 6.10
2007(b) 14.37 7.26 99,203 1.20**** 1.20**** 5.85****
Year Ended 6/30:
2006 (.78) (.05) 96,378 1.19 1.19 5.83
2005 19.97 13.80 102,502 1.19 1.19 5.94
2004 (5.13) 1.20 95,651 1.20 1.20 6.26
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (9.75) (4.36) 58,456 1.33 1.33 6.95
2008 (12.41) (.60) 64,904 1.25 1.25 6.16
2007(b) 15.40 7.50 69,238 1.24**** 1.24**** 6.03****
Year Ended 6/30:
2006 (.49) .25 67,150 1.23 1.23 5.99
2005 23.39 15.00 71,231 1.23 1.23 6.09
2004 (4.81) 1.02 65,919 1.25 1.25 6.41
=======================================================================================================================
Ratios/Supplemental Data
--------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.05% 1.05% 6.99% --%
2008 .89 .89 6.41 17
2007(b) .83**** .83**** 6.23**** 9
Year Ended 6/30:
2006 .75 .75 6.28 16
2005 .74 .74 6.39 17
2004 .74 .74 6.71 11
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.01 1.01 7.27 --
2008 .85 .85 6.56 16
2007(b) .78**** .78**** 6.49**** 11
Year Ended 6/30:
2006 .76 .76 6.47 13
2005 .77 .77 6.54 11
2004 .79 .79 6.87 11
================================================================================================
* 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 ten months ended April 30, 2007.
See accompanying notes to financial statements.
Nuveen Investments 111
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
=========================================================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ 14.39 $ .96 $ (.94) $ (.20) $ -- $ (.18)
2008 15.19 .95 (.80) (.29) -- (.14)
2007(b) 14.71 .77 .47 (.23) -- 1.01
Year Ended 6/30:
2006 15.73 .90 (.87) (.21) (.02) (.20)
2005 14.92 .92 1.05 (.12) (.01) 1.84
2004 15.91 .98 (.98) (.06) -- (.06)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 13.74 .91 (1.12) (.19) -- (.40)
2008 14.70 .90 (.93) (.26) (.02) (.31)
2007(b) 14.22 .74 .50 (.21) -- 1.03
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12)
2005 14.74 .92 .88 (.10) (.01) 1.69
2004 15.65 .98 (.77) (.05) (.01) .15
=========================================================================================================================
Less Distributions
-------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
==============================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
----------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ (.68) $ -- $ (.68) $ 13.53 $ 11.34
2008 (.66) -- (.66) 14.39 13.10
2007(b) (.53) -- (.53) 15.19 14.01
Year Ended 6/30:
2006 (.71) (.11) (.82) 14.71 12.95
2005 (.89) (.14) (1.03) 15.73 15.16
2004 (.92) (.01) (.93) 14.92 13.58
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
----------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (.62) -- (.62) 12.72 10.60
2008 (.61) (.04) (.65) 13.74 12.30
2007(b) (.55) -- (.55) 14.70 13.67
Year Ended 6/30:
2006 (.77) (.21) (.98) 14.22 12.96
2005 (.93) (.18) (1.11) 15.32 15.16
2004 (.95) (.11) (1.06) 14.74 13.84
==============================================================================================
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 $ 111,750 $ 25,000 $ 73,849
2008 132,000 25,000 69,039
2007(b) 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
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-----------------------------------------------------------------------------
Year Ended 4/30:
2009 99,275 25,000 75,047
2008 118,100 25,000 70,566
2007(b) 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
=============================================================================
112 Nuveen Investments
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
------------------- ----------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
=========================================================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (7.99)% (1.01)% $ 218,353 1.50% 1.31% 7.23%
2008 (1.78) (.92) 232,528 1.65 1.27 6.48
2007(b) 12.41 6.89 247,644 1.54**** 1.25**** 6.06****
Year Ended 6/30:
2006 (9.47) (1.34) 239,718 1.23 1.23 5.87
2005 19.53 12.67 256,365 1.23 1.23 5.96
2004 (9.73) (.38) 243,287 1.23 1.23 6.38
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (8.43) (2.65) 198,739 1.35 1.31 7.28
2008 (5.26) (2.06) 215,252 1.55 1.28 6.36
2007(b) 9.83 7.31 232,650 1.40**** 1.21**** 6.08****
Year Ended 6/30:
2006 (8.42) (.80)*** 225,121 1.20 1.20 6.01
2005 17.79 11.80 242,373 1.19 1.19 6.09
2004 (7.22) .94 232,455 1.18 1.18 6.45
=========================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
==============================================================================================
PENNSYLVANIA INVESTMENT QUALITY (NQP)
----------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.49% 1.31% 7.24% 3%
2008 1.64 1.26 6.49 20
2007(b) 1.53**** 1.23**** 6.07**** 16
Year Ended 6/30:
2006 1.21 1.21 5.89 20
2005 1.22 1.22 5.97 18
2004 1.22 1.22 6.39 17
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
----------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.34 1.29 7.30 6
2008 1.53 1.27 6.37 27
2007(b) 1.39**** 1.20**** 6.09**** 15
Year Ended 6/30:
2006 1.18 1.18 6.03 18
2005 1.19 1.19 6.10 22
2004 1.17 1.17 6.46 16
==============================================================================================
* 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 ten months ended April 30, 2007.
See accompanying notes to financial statements.
Nuveen Investments 113
| Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations
-------------------------------------------------------------------
Distributions Distributions
from Net from
Beginning Investment Capital
Common Net Income to Gains to
Share Net Realized/ Preferred Preferred
Net Asset Investment Unrealized Share- Share-
Value Income Gain (Loss) holders+ holders+ Total
=========================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $ 14.47 $ c .97 $ (1.47) $ (.18) $ -- $ (.68)
2008 15.36 .97 (.84) (.25) (.02) (.14)
2007(b) 14.95 .82 .46 (.21) -- 1.07
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) --
2005 15.32 .99 1.06 (.10) (.02) 1.93
2004 16.25 1.04 (.78) (.05) (.01) .20
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
-------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 14.49 .99 (1.17) (.19) --*** (.37)
2008 15.34 .99 (.80) (.26) (.02) (.09)
2007(b) 14.93 .83 .44 (.21) (.01) 1.05
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07)
2005 14.87 .97 1.08 (.11) -- 1.94
2004 15.90 .98 (.87) (.05) (.01) .05
=========================================================================================================================
Less Distributions
--------------------------------
Net
Investment Capital Ending
Income to Gains to Common
Common Common Share Ending
Share- Share- Net Asset Market
holders holders Total Value Value
================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 $(.70) $ -- $ (.70) $ 13.09 $ 11.31
2008 (.70) (.05) (.75) 14.47 13.61
2007(b) (.66) -- (.66) 15.36 15.70
Year Ended 6/30:
2006 (.88) (.10) (.98) 14.95 15.10
2005 (.96) (.36) (1.32) 15.93 16.14
2004 (.96) (.17) (1.13) 15.32 14.39
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (.70) --*** (.70) 13.42 11.45
2008 (.71) (.05) (.76) 14.49 13.40
2007(b) (.62) (.02) (.64) 15.34 15.18
Year Ended 6/30:
2006 (.79) (.10) (.89) 14.93 14.16
2005 (.88) (.04) (.92) 15.89 14.90
2004 (.92) (.16) (1.08) 14.87 13.48
================================================================================================
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 $ 22,500 $ 25,000 $ 73,430
2008 25,000 25,000 73,211
2007(b) 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
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------
Year Ended 4/30:
2009 23,000 25,000 79,340
2008 28,500 25,000 72,366
2007(b) 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
================================================================================
114 Nuveen Investments
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Total Returns Before Credit/Reimbursement
-------------------- ----------------------------------------
Based Ending
on Net
Based Common Assets
on Share Net Applicable Expenses Expenses Net
Market Asset to Common Including Excluding Investment
Value* Value* Shares (000) Interest++(a) Interest++(a) Income++
==========================================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (11.67)% (4.57)% $ 43,587 1.37% 1.36% 7.17%
2008 (8.46) (.87) 48,211 1.39 1.28 6.26
2007(b) 8.40 7.22 51,160 1.33**** 1.27**** 5.99****
Year Ended 6/30:
2006 (.56) (.01) 49,660 1.25 1.25 5.90
2005 21.84 13.02 52,712 1.23 1.23 5.82
2004 (5.95) 1.30 50,549 1.21 1.21 6.15
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 (9.16) (2.33) 49,993 1.37 1.36 7.07
2008 (6.81) (.60) 53,997 1.40 1.29 6.29
2007(b) 11.88 7.14 57,142 1.33**** 1.27**** 6.03****
Year Ended 6/30:
2006 .88 (.46) 55,597 1.24 1.24 5.93
2005 17.63 13.37 59,174 1.23 1.23 5.80
2004 (8.58) .29 55,370 1.24 1.24 5.95
==========================================================================================================================
Ratios/Supplemental Data
------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
----------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
================================================================================================
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.13% 1.13% 7.40% 4%
2008 1.07 .96 6.57 20
2007(b) .95**** .89**** 6.37**** 11
Year Ended 6/30:
2006 .80 .80 6.35 12
2005 .78 .78 6.28 13
2004 .76 .76 6.60 10
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2009 1.06 1.05 7.38 4
2008 1.01 .90 6.67 27
2007(b) .88**** .82**** 6.48**** 13
Year Ended 6/30:
2006 .77 .77 6.40 13
2005 .78 .78 6.25 8
2004 .78 .78 6.40 4
================================================================================================
* 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 ten months ended April 30, 2007.
See accompanying notes to financial statements.
Nuveen Investments 115
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") has ever been a director or
employee of, or consultant to, Nuveen or its affiliates. The names and business
addresses of the board members and officers of the Funds, their principal
occupations and other affiliations during the past five years, the number of
portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER
8/22/40 Chairman of the 1997 200 Private Investor and Management Consultant;
333 W. Wacker Drive Board and Board Treasurer and Director, Humanities Council of
Chicago, IL 60606 Member Washington D.C.
o JACK B. EVANS
10/22/48 Board Member 1999 200 President, The Hall-Perrine Foundation, a
333 W. Wacker Drive private philanthropic corporation (since
Chicago, IL 60606 1996); Director and Vice Chairman, United Fire
Group, a publicly held company; Member of the
Board of Regents for the State of Iowa
University System; Director, Gazette
Companies; Life Trustee of Coe College;
Director, Iowa College Foundation; Member of
the Advisory Council of the Department of
Finance in the Tippie College of Business,
University of Iowa; formerly, Director,
Alliant Energy; formerly, Director, Federal
Reserve Bank of Chicago; formerly, President
and Chief Operating Officer, SCI Financial
Group, Inc., a regional financial services
firm.
o WILLIAM C. HUNTER
3/6/48 Board Member 2004 200 Dean, Tippie College of Business, University
333 W. Wacker Drive of Iowa (since 2006); Director (since 2004) of
Chicago, IL 60606 Xerox Corporation; Director (since 2005), Beta
Gamma Sigma International Honor Society;
formerly, Dean and Distinguished Professor of
Finance, School of Business at the University
of Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at the
Federal Reserve Bank of Chicago (1995-2003);
Director, SS&C Technologies, Inc. (May
2005-October 2005); formerly, Director
(1997-2007), Credit Research Center at
Georgetown University.
o DAVID J. KUNDERT
10/28/42 Board Member 2005 200 Director, Northwestern Mutual Wealth
333 W. Wacker Drive Management Company; retired (since 2004) as
Chicago, IL 60606 Chairman, JPMorgan Fleming Asset Management,
President and CEO, Banc One Investment
Advisors Corporation, and President, One Group
Mutual Funds; prior thereto, Executive Vice
President, Banc One Corporation and Chairman
and CEO, Banc One Investment Management Group;
Member, Board of Regents, Luther College;
member of the Wisconsin Bar Association;
member of Board of Directors, Friends of
Boerner Botanical Gardens; member of
Investment Committee, Greater Milwaukee
Foundation.
o WILLIAM J. SCHNEIDER
9/24/44 Board Member 1997 200 Chairman of Miller-Valentine Partners Ltd., a
333 W. Wacker Drive real estate investment company; formerly,
Chicago, IL 60606 Senior Partner and Chief Operating Officer
(retired, 2004) of Miller-Valentine Group;
member, University of Dayton Business School
Advisory Council; member, Dayton Philharmonic
Orchestra Association; formerly, member,
Business Advisory Council, Cleveland Federal
Reserve Bank; formerly, Director, Dayton
Development Coalition.
116 Nuveen Investments
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE
12/29/47 Board Member 1997 200 Executive Director, Gaylord and Dorothy
333 W. Wacker Drive Donnelley Foundation (since 1994); prior
Chicago, IL 60606 thereto, Executive Director, Great Lakes
Protection Fund (from 1990 to 1994).
o CAROLE E. STONE
6/28/47 Board Member 2007 200 Director, Chicago Board Options Exchange
333 W. Wacker Drive (since 2006); Commissioner, New York State
Chicago, IL 60606 Commission on Public Authority Reform (since
2005); formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH
9/29/59 Board Member 2008 200 Director, Legal & General Investment
333 W. Wacker Drive Management America, Inc. (since 2008);
Chicago, IL 60606 Managing Partner, Musso Capital Management
(since 2008); Private Investor (since 2007);
CEO and President, Northern Trust Investments
(2004-2007); Executive Vice President,
Quantitative Management & Securities Lending
(2004-2007); prior thereto, various positions
with Northern Trust Company (since 1994);
Member: Goodman Theatre Board (since 2004),
Chicago Fellowship Boards (since 2005),
University of Illinois Leadership Council
Board (since 2007) and Catalyst Schools of
Chicago Board (since 2008); formerly, Member:
Northern Trust Mutual Funds Board (2005-2007),
Northern Trust Investments Board (2004-2007),
Northern Trust Japan Board (2004-2007),
Northern Trust Securities Inc. Board
(2003-2007) and Northern Trust Hong Kong Board
(1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2)
6/14/61 Board Member 2008 200 Chief Executive Officer (since July 2007) and
333 W. Wacker Drive Director (since 1999) of Nuveen Investments,
Chicago, IL 60606 Inc.; Chief Executive Officer (since 2007) of
Nuveen Asset Management, Nuveen Investments
Advisors, Inc. formerly, President (1999-2004)
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3)
Nuveen Investments 117
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN
9/9/56 Chief 1988 200 Managing Director (since 2002), Assistant
333 W. Wacker Drive Administrative Secretary and Associate General Counsel of
Chicago, IL 60606 Officer Nuveen Investments, LLC; Managing Director,
Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management and of
Symphony Asset Management LLC, (since 2003);
Vice President and Assistant Secretary of NWQ
Investment Management Company, LLC. (since
2002), Nuveen Investments Advisers Inc. (since
2002), Tradewinds Global Investors, LLC, and
Santa Barbara Asset Management, LLC (since
2006), Nuveen HydePark Group LLC and Nuveen
Investment Solutions, Inc. (since 2007);
Managing Director (since 2004) and Assistant
Secretary (since 1994) of Nuveen Investments,
Inc.; formerly, Managing Director (2002-
2004), General Counsel (1998-2004) and
Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3);
Chartered Financial Analyst.
o WILLIAM ADAMS IV
6/9/55 Vice President 2007 125 Executive Vice President of Nuveen
333 W. Wacker Drive Investments, Inc.; Executive Vice President,
Chicago, IL 60606 U.S. Structured Products of Nuveen
Investments, LLC, (since 1999), prior thereto,
Managing Director of Structured Investments.
MARK J.P. ANSON
6/10/59 Vice President 2009 200 President and Executive Director of Nuveen
333 W. Wacker Drive Investments, Inc. (since 2007); President of
Chicago, IL 60606 Nuveen Investments Institutional Services
Group LLC (since 2007); previously, Chief
Executive Officer of the British Telecom
Pension Scheme (2006-2007) and Chief
Investment Officer of Calpers (1999-2006);
PhD, Chartered Financial Analyst, Chartered
Alternative Investment Analyst, Certified
Public Accountant, Certified Management
Accountant and Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ
1/11/62 Vice President 2007 125 Managing Director, (since 2004), previously,
333 W. Wacker Drive Vice President (1993-2004) of Nuveen
Chicago, IL 60606 Investments, LLC.
o NIZIDA ARRIAGA
6/1/68 Vice President 2009 200 Vice President (since 2007) of Nuveen
333 W. Wacker Drive Investments, LLC; previously, Portfolio
Chicago, IL 60606 Manager, Allstate Investments, LLC
(1996-2006); Chartered Financial Analyst.
o MICHAEL T. ATKINSON
2/3/66 Vice President 2000 200 Vice President (since 2002) of Nuveen
333 W. Wacker Drive and Assistant Investments, LLC.; Vice President of Nuveen
Chicago, IL 60606 Secretary Asset Management (since 2005).
o MARGO L. COOK
4/11/64 Vice President 2009 200 Executive Vice President (since Oct 2008) of
333 W. Wacker Drive Nuveen Investments, Inc.; previously, Head of
Chicago, IL 60606 Institutional Asset Management (2007-2008) of
Bear Stearns Asset Management; Head of
Institutional Asset Mgt (1986-2007) of Bank of
NY Mellon; Chartered Financial Analyst.
o LORNA C. FERGUSON
10/24/45 Vice President 1998 200 Managing Director (since 2004), formerly, Vice
333 W. Wacker Drive President of Nuveen Investments, LLC; Managing
Chicago, IL 60606 Director (since 2005) of Nuveen Asset
Management; Managing Director (2004-2005),
formerly, Vice President (1998-2004) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3)
118 Nuveen Investments
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY
5/31/54 Vice President 1998 200 Vice President (since 1993) and Funds
333 W. Wacker Drive and Controller Controller (since 1998) of Nuveen Investments,
Chicago, IL 60606 LLC; Vice President (since 2005) of Nuveen
Asset Management; Certified Public Accountant.
o WILLIAM T. HUFFMAN
5/7/69 Vice President 2009 200 Chief Operating Officer, Municipal Fixed
333 W. Wacker Drive Income (since 2008) of Nuveen Asset
Chicago, IL 60606 Management; previously, Chairman, President
and Chief Executive Officer (2002 - 2007) of
Northern Trust Global Advisors, Inc. and Chief
Executive Officer (2007) of Northern Trust
Global Investments Limited; CPA.
o WALTER M. KELLY
2/24/70 Chief Compliance 2003 200 Senior Vice President (since 2008), Vice
333 W. Wacker Drive Officer and President (2006-2008) formerly, Assistant Vice
Chicago, IL 60606 Vice President President and Assistant General Counsel
(2003-2006) of Nuveen Investments, LLC; Vice
President (since 2006) and Assistant Secretary
(since 2008) of Nuveen Asset Management.
o DAVID J. LAMB
3/22/63 Vice President 2000 200 Senior Vice President (since 2009), formerly,
333 W. Wacker Drive Vice President (2000-2009) of Nuveen
Chicago, IL 60606 Investments, LLC; Vice President (since 2005)
of Nuveen Asset Management; Certified Public
Accountant.
o TINA M. LAZAR
8/27/61 Vice President 2002 200 Senior Vice President (since 2009), formerly,
333 W. Wacker Drive Vice President of Nuveen Investments, LLC
Chicago, IL 60606 (1999-2009); Vice President of Nuveen Asset
Management (since 2005).
o LARRY W. MARTIN
7/27/51 Vice President 1988 200 Vice President, Assistant Secretary and
333 W. Wacker Drive and Assistant Assistant General Counsel of Nuveen
Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005)
and Assistant Secretary of Nuveen Investments,
Inc.; Vice President (since 2005) and
Assistant Secretary (since 1997) of Nuveen
Asset Management; Vice President and Assistant
Secretary of Nuveen Investments Advisers Inc.
(since 2002); NWQ Investment Management
Company, LLC (since 2002), Symphony Asset
Management LLC (since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset Management
LLC (since 2006) and of Nuveen HydePark Group,
LLC and Nuveen Investment Solutions, Inc.
(since 2007); formerly, Vice President and
Assistant Secretary of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3)
o KEVIN J. MCCARTHY
3/26/66 Vice President 2007 200 Managing Director (since 2008), formerly, Vice
333 W. Wacker Drive and Secretary President (2007-2008), Nuveen Investments,
Chicago, IL 60606 LLC; Managing Director (since 2008), formerly,
Vice President, and Assistant Secretary,
Nuveen Asset Management, and Nuveen
Investments Holdings, Inc.; Vice President
(since 2007) and Assistant Secretary, Nuveen
Investment Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC, Tradewinds
Global Investors LLC, NWQ Holdings, LLC,
Symphony Asset Management LLC, Santa Barbara
Asset Management LLC, Nuveen HydePark Group,
LLC and Nuveen Investment Solutions, Inc.
(since 2007); prior thereto, Partner, Bell,
Boyd & Lloyd LLP (1997-2007).
Nuveen Investments 119
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER
4/10/67 Vice President 2007 200 Managing Director (since 2007), formerly, Vice
333 W. Wacker Drive President (2002-2007) of Nuveen Asset
Chicago, IL 60606 Management and Nuveen Investments, LLC;
Chartered Financial Analyst.
o GREGORY MINO
1/4/71 Vice President 2009 200 Vice President of Nuveen Investments, LLC
333 W. Wacker Drive (since 2008); previously, Director (2004-2007)
Chicago, IL 60606 and Executive Director (2007-2008) of UBS
Global Asset Management; previously, Vice
President (2000-2003) and Director (2003-2004)
of Merrill Lynch Investment Managers;
Chartered Financial Analyst.
o CHRISTOPHER M. ROHRBACHER
8/1/71 Vice President 2008 200 Vice President, Nuveen Investments, LLC (since
333 W. Wacker Drive and Assistant 2008); Vice President and Assistant Secretary,
Chicago, IL 60606 Secretary Nuveen Asset Management (since 2008); prior
thereto, Associate, Skadden, Arps, Slate
Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE
7/3/62 Vice President 2007 200 Vice President, Nuveen Investments, LLC (since
333 W. Wacker Drive and Assistant 2007); prior thereto, Partner, Deloitte &
Chicago, IL 60606 Secretary Touche USA LLP (2005-2007), formerly, senior
tax manager (2002-2005); Certified Public
Accountant.
o MARK L. WINGET
12/21/68 Vice President 2008 200 Vice President, Nuveen Investments, LLC (since
333 W. Wacker Drive and Assistant 2008); Vice President and Assistant Secretary,
Chicago, IL 60606 Secretary Nuveen Asset Management (since 2008); prior
thereto, Counsel, Vedder Price P.C.
(1997-2007).
(1) Board Members serve three year terms, except for two board members who are
elected by the holders of Preferred Shares. The Board of Trustees is
divided into three classes, Class I, Class II, and Class III, with each
being elected to serve until the third succeeding annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed, except two board
members are elected by the holders of Preferred Shares to serve until the
next annual shareholders' meeting subsequent to its election or thereafter
in each case when its respective successors are duly elected or appointed.
The first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
120 Nuveen Investments
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
Nuveen Investments 121
Reinvest Automatically Easily and Conveniently (continued)
by the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
122 Nuveen Investments
Glossary of Terms Used in this Report
o 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.
o 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 invest- ment'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.
o 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.
o 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 disproportion- ately 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.
Nuveen Investments 123
Glossary of Terms Used in this Report (continued)
o 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.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o 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.
o 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.
o 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.
124 Nuveen Investments
Notes
Nuveen Investments 125
Notes
126 NUVEEN INVESTMENTS
Other Useful Information
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
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 SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
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. During the period covered by this report, the Funds repurchased
and/or redeemed shares of their common and/or preferred stock as shown in the
accompanying table.
COMMON SHARES PREFERRED SHARES
FUND REPURCHASED REDEEMED
--------------------------------------------------------------------------------
NQJ 30,600 487
NNJ 12,900 --
NXJ 7,200 39
NUJ 2,800 76
NQP 27,500 810
NPY 51,800 753
NXM 2,000 100
NVY -- 220
--------------------------------------------------------------------------------
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 127
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, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $115 billion of
assets on March 31, 2009.
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/CEF
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EAN-B-0409D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder.
(To view the code, click on Fund Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees ("Board") determined that the
registrant has at least one "audit committee financial expert" (as defined in
Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit
committee financial expert is Jack B. Evans, who is "independent" for purposes
of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP the Audit Committee approved in advance all
audit services and non-audit services that Ernst & Young LLP provided to the
Fund, except for those non-audit services that were subject to the pre-approval
exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The
pre-approval exception for services provided directly to the Fund waives the
pre-approval requirement for services other than audit, review or attest
services if: (A) the aggregate amount of all such services provided constitutes
no more than 5% of the total amount of revenues paid by the Fund to its
accountant during the fiscal year in which the services are provided; (B) the
Fund did not recognize the services as non-audit services at the time of the
engagement; and (C) the services are promptly brought to the Audit Committee's
attention, and the Committee (or its delegate) approves the services before the
audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
------------------------------------------------------------------------------------------------------------------------------------
April 30, 2009 $ 11,738 $ 0 $ 0 $ 850
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
April 30, 2008 $ 11,592 $ 0 $ 500 $ 800
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
other than "Audit Fees," "Audit Related Fees," and "Tax Fees."
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM that provides ongoing services to
the Fund ("Affiliated Fund Service Provider"), for engagements directly related
to the Fund's operations and financial reporting, during the Fund's last two
full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
------------------------------------------------------------------------------------------------------------------------------------
April 30, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
April 30, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the pre-approval exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
-------------------------------------------------------------------------------------------------------------------------------
April 30, 2009 $ 850 $ 0 $ 0 $ 850
April 30, 2008 $ 1,300 $ 0 $ 0 $ 1,300
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax
Fees" billed to Adviser in their respective amounts from the previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board has a separately designated Audit Committee established
in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934,
as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are
Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
NUMBER OF
PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 44 $7.56 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 $0
* Assets are as of April 30, 2009. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation to the market
in order to create a compensation structure that is competitive and consistent
with similar financial services companies. As discussed below, several factors
are considered in determining each portfolio manager's total compensation. In
any year these factors may include, among others, the effectiveness of the
investment strategies recommended by the portfolio manager's investment team,
the investment performance of the accounts managed by the portfolio manager, and
the overall performance of Nuveen Investments, Inc. (the parent company of NAM).
Although investment performance is a factor in determining the portfolio
manager's compensation, it is not necessarily a decisive factor. The portfolio
manager's performance is evaluated in part by comparing manager's performance
against a specified investment benchmark. This fund-specific benchmark is a
customized subset (limited to bonds in each Fund's specific state and with
certain maturity parameters) of the S&P/Investortools Municipal Bond index, an
index comprised of bonds held by managed municipal bond fund customers of
Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund
holdings aggregate at least $2 million. As of April 30, 2009, the
S&P/Investortools Municipal Bond index was comprised of 52,532 securities with
an aggregate current market value of $1,047 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of the April 30, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE BENEFICIALLY OWNED
OF EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
------------------------------------------------------------------------------------------------------------------------------
Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund $0 $10,000-$50,000
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD, Vice President of NAM, is currently a portfolio manager
for 45 state-specific municipal bond funds. She joined Nuveen in 1996 and worked
as a senior analyst in the healthcare sector. Ms. Steeves has an undergraduate
degree from Wake Forest University as well as an MA, an MPhil and a PhD from
Columbia University.
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 0 660,000
SEPTEMBER 1-30, 2008 0 0 660,000
OCTOBER 1-31, 2008 0 0 660,000
NOVEMBER 1-30, 2008 0 0 660,000
DECEMBER 1-31, 2008 0 0 660,000
JANUARY 1-31, 2009 0 0 660,000
FEBRUARY 1-28, 2009 3,400 $10.15 3,400 656,600
MARCH 1-31, 2009 3,800 $10.13 3,800 652,800
APRIL 1-30, 2009 0 0 652,800
TOTAL 7,200
* 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. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, click on Fund Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 8, 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: July 8, 2009
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 8, 2009
-------------------------------------------------------------------