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
---------------------
Nuveen New Jersey Dividend Advantage Municipal Fund
--------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
--------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: April 30
------------------
Date of reporting period: April 30, 2007
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
----------------------------
ANNUAL REPORT April 30, 2007
----------------------------
Nuveen Investments
Municipal Closed-End Funds
NUVEEN NEW JERSEY
INVESTMENT QUALITY
MUNICIPAL FUND, INC.
NQJ
NUVEEN NEW JERSEY
PREMIUM INCOME
MUNICIPAL FUND, INC.
NNJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXJ
NUVEEN NEW JERSEY
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NUJ
NUVEEN PENNSYLVANIA
INVESTMENT QUALITY
MUNICIPAL FUND
NQP
NUVEEN PENNSYLVANIA
PREMIUM INCOME
MUNICIPAL FUND 2
NPY
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NXM
NUVEEN PENNSYLVANIA
DIVIDEND ADVANTAGE
MUNICIPAL FUND 2
NVY
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IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
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NUVEEN
INVESTMENTS
Chairman's
LETTER TO SHAREHOLDERS
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Once again, I am pleased to report that over the period covered by this
report your Fund continued to provide you with attractive monthly tax-free
income.
You may notice that this report is coming at a slightly different time of
year than in the past. This is because the fiscal year reporting period
for these Funds has been changed to April 30. This change was made to take
advantage of administrative efficiencies that may help to keep fund
expenses lower over the long term. There have been no changes to the
investment objectives of the Funds, portfolio management strategies or
their dividend policies. For more details about the management strategy
and performance of your Fund, please read the Portfolio Manager's
Comments, the Dividend and Share Price Information, and the Performance
Overview sections of this report.
For some time, I've used these letters to remind you that municipal bonds
can be an important building block in a well-balanced investment
portfolio. In addition to providing attractive tax-free monthly income, a
municipal bond investment like your Fund may help you achieve and benefit
from greater portfolio diversification. Portfolio diversification is a
recognized way to try to reduce some of the risk that comes with
investing. For more information about this important investment strategy,
I encourage you to contact your personal financial advisor.
"IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND
INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER
PORTFOLIO DIVERSIFICATION."
We also are pleased to be able to offer you a choice concerning how you
receive your shareholder reports and other Fund information. As an
alternative to mailed copies, you can sign up to receive future Fund
reports and other Fund information by e-mail and the internet. The inside
front cover of this report contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals, and we look forward to continuing to earn your trust in
the months and years ahead. At Nuveen Investments, our mission continues
to be to assist you and your financial advisor by offering investment
services and products that can help you to secure your financial
objectives.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
CHAIRMAN OF THE BOARD
June 15, 2007
Nuveen Investments Municipal Closed-End Funds
(NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY)
Portfolio Manager's
COMMENTS
PORTFOLIO MANAGER CATHRYN STEEVES REVIEWS ECONOMIC AND MUNICIPAL MARKET
CONDITIONS AT BOTH THE NATIONAL AND STATE LEVELS, KEY INVESTMENT STRATEGIES, AND
THE 10-MONTH PERFORMANCE OF THESE NUVEEN NEW JERSEY AND PENNSYLVANIA FUNDS.
CATHRYN, WHO JOINED NUVEEN IN 1996, ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY
FOR THE NEW JERSEY AND PENNSYLVANIA FUNDS IN JULY 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED APRIL 30, 2007?
Slowing economic growth, higher energy prices and a slumping housing market all
contributed to a slowdown in economic growth over much of this abbreviated
reporting period. The U.S. gross domestic product expanded at an annual rate of
2.0% in the third quarter 2006 and 2.5% in the fourth quarter. In the first
quarter of 2007, the rate of GDP growth slowed even further to an annualized
0.6% the weakest quarterly number in four years.
Given the growing economic uncertainty, the Federal Reserve kept the closely
watched Fed Funds rate unchanged at 5.25% for the entire length of this
reporting period, the first sustained break in what had been a steady stream of
rate increases that began in June 2004. This pause, combined with the slowing
economy, helped create a generally positive atmosphere for fixed income
investments over this period. While taxable and tax-free bonds of varying
maturities tended to perform well, bonds with relatively longer durations 1
often outperformed shorter duration bonds over this ten-month period. As one
measure of the municipal market performance, the yield on the widely followed
Bond Buyer 25 Revenue Bond Index fell to 4.45% at the end of April 2007, a
decline of 86 basis points from the end of June 2006. As bond yields decline,
bond prices and total returns rise. At the same time, the yield curve flattened.
The 30 year MMD (Municipal Market Data) AAA-scale declined by 53 bps over the
period, while 1-year MMD declined by just 8 bps.
Over the 10 months ended April 2007, municipal bond issuance nationwide totaled
$340 billion, up 13% from the same period in the previous year. This total
reflected very strong supply during the first four months of 2007, when $135
billion in new municipal securities came to market, an increase of 37% from the
same four-month period in 2006. A major factor in the 2007 volume was an
increase in advance refundings 2 driven by attractive borrowing rates for
issuers. Strong demand for municipal bonds easily absorbed the increase in
issuance, as retail investors, institutional investors such as hedge funds and
arbitragers, and overseas investors all continued to participate in the market.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
2 Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
4
HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW JERSEY AND PENNSYLVANIA
DURING THIS PERIOD?
New Jersey's diverse economy is closely tied to that of New York City, and the
state continued to benefit from an influx of jobs from the city across the
Hudson River during this period. The state is also home to the Port of
Elizabeth-Newark, the East Coast's largest seaport, which handles about one
third of the country's ocean-going trade. One recent, positive development has
been a decline in the state's unemployment rate to 4.3% in April 2007 compared
with a national rate of 4.5% and a state rate of 4.7% in June 2006. While
Moody's reports that New Jersey's per capita debt burden is among the highest in
the nation, the state was able to deposit $271 million into its "Rainy Day" fund
during fiscal year 2006, and state officials reported that tax revenues for the
six months ended December 2006 were in line with expectations. As of April 30,
2007, Standard & Poor's continued to rate the state's general obligation debt at
AA, while Moody's maintained its Aa3 rating. Municipal issuance within the state
grew by 23% during the 10 months ended April 30, 2007, reaching a total of $104
billion.
Pennsylvania's economy is mature and diverse, led by education, health care,
manufacturing, and retail trade. The manufacturing sector continued to decline
during this period, with little indication of any short-term turnaround.
However, growth in the service sectors offset some of this decline, and
unemployment stood at 4.1% in April 2007, down from 4.8% in June 2006 and close
to pre-recession levels. State government has been aggressive in promoting new
growth industries, and Pennsylvania's population posted the highest growth of
the 11 northeastern states in 2006. As of April 30, 2007, Standard & Poor's
rated Pennsylvania's general obligation debt at AA-, while Moody's reported a
rating of Aa3. Municipal issuance in Pennsylvania totaled more than $15 billion
for the 10 months ended April 30, 2007, an increase of almost 24% over the same
period in the prior year.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
As interest rates declined and the yield curve flattened during this 10-month
period, we continued to emphasize careful duration management, part of which
included efforts to more closely align the duration 1 and yield curve
positioning of these Funds. In the Pennsylvania Funds, we purchased long
duration bonds, including zero coupons and non-callable bonds to keep the funds
within our preferred strategic range. In addition,
5
we added inverse floating rate securities 3 to the Pennsylvania Funds. These
derivative instruments are used to try to increase distributable income
generated by the portfolio. In the New Jersey Funds we also purchased long
duration bonds, including zero coupon bonds. In all four of the New Jersey
Funds, we added duration through the purchase of forward interest rate swaps.
These swaps were not intended to gain from predicting the level or direction of
interest rates, but rather were employed to reduce portfolio risk by bringing us
within our preferred strategic duration range. In NQP and NPY, we used similar
interest rate swaps to reduce duration.
To help us maintain the Funds' durations within our preferred strategic range,
we were also selectively selling holdings with shorter durations, such as bonds
priced to short call dates, bonds that were currently callable, and short-dated
pre-refunded bonds. Selling these shorter duration bonds and reinvesting further
in longer duration bonds with 10 year calls and in non-callable bonds also
helped to improve the Funds' overall call protection profile.
During this period, we also took advantage of opportunities to strategically
increase the Pennsylvania Funds' exposure to AA rated housing bonds issued by
the Commonwealth. Even though the housing sector underperformed over the past 10
months, we think this sector continues to have performance potential. Long-term,
we believe that housing bonds have favorable income generation potential and
defensive performance characteristics in a rising rate environment.
We also continued to emphasize maintaining the Funds' weightings of bonds in the
health care and higher education sectors. In both New Jersey and Pennsylvania,
the period offered numerous opportunities to purchase bonds for hospitals,
continuing care retirement communities and colleges and universities.
3 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, that index is typically 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 the Funds
invested in during this reporting period, are further defined within the
Notes to Financial Statements and Glossary of Terms Used in This Report
sections of this shareholder report.
6
HOW DID THE FUNDS PERFORM?
Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well
as relevant index and peer group information, are presented in the accompanying
table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/07
CUMULATIVE ANNUALIZED
----------- -------------------------------------
10-MONTH 1-YEAR 5-YEAR 10-YEAR
-----------------------------------------------------------------------------
NEW JERSEY FUNDS
-----------------------------------------------------------------------------
NQJ 7.05% 6.90% 6.75% 6.40%
-----------------------------------------------------------------------------
NNJ 7.03% 6.77% 6.28% 6.74%
-----------------------------------------------------------------------------
NXJ 7.26% 7.13% 7.33% NA
-----------------------------------------------------------------------------
NUJ 7.50% 7.39% 7.61% NA
-----------------------------------------------------------------------------
Lipper New Jersey
Municipal Debt Funds
Average 4 8.02% 7.84% 7.40% 6.53%
-----------------------------------------------------------------------------
PENNSYLVANIA FUNDS
-----------------------------------------------------------------------------
NQP 6.89% 6.57% 6.86% 5.95%
-----------------------------------------------------------------------------
NPY 7.31% 7.12% 6.61% 6.77%
-----------------------------------------------------------------------------
NXM 7.22% 7.13% 7.98% NA
-----------------------------------------------------------------------------
NVY 7.14% 6.98% 7.49% NA
-----------------------------------------------------------------------------
Lipper Pennsylvania
Municipal Debt Funds
Average 4 7.50% 7.12% 7.11% 6.58%
-----------------------------------------------------------------------------
Lehman Brothers
Municipal Bond Index 5 6.03% 5.78% 5.16% 5.81%
-----------------------------------------------------------------------------
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
For the 10 months ended April 30, 2007 the total returns on net asset value
(NAV) for the New Jersey and Pennsylvania Funds outperformed the return on the
Lehman Brothers Municipal Bond Index. The four New Jersey Funds trailed the
average return for their Lipper New Jersey peer group, and the performance of
the four Pennsylvania Funds lagged the Lipper Pennsylvania average.
4 The Lipper New Jersey Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 10-Months, 13; 1 year, 13; 5 years, 12; and 10 years, 6. The
Lipper Pennsylvania Municipal Debt Funds Average is calculated using the
returns of all closed-end funds for each period as follows: 10-Months, 9;
1 year, 9; 5 years, 8; and 10 years, 4. Fund and Lipper returns assume
reinvestment of dividends.
5 The Lehman Brothers Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of investment-grade municipal
bonds. Results for the Lehman Brothers Municipal Bond Index do not reflect
any expenses.
7
As the yield curve continued to flatten over the course of this period, bonds in
the Lehman Brothers Municipal Bond Index with longer durations outperformed
those with shorter durations. In both the New Jersey Funds and the Pennsylvania
Funds, our overall duration and yield curve positioning was favorable. The Funds
generally had minor exposure to the shortest part of the yield curve, and this
was favorable. The Funds emphasized the intermediate part of the yield curve,
and this was also favorable, but this exposure was somewhat offset by an
underweight in the longest part of the curve, which performed well for the
10-month period. Another favorable feature for the Funds derived from the use of
leverage in the funds. In addition, the Dividend Advantage fee reimbursement
structure also had a favorable impact on the performance of those Funds.
With bonds rated BBB or lower and non-rated bonds generally outperformed other
credit quality sectors during this period, all of these Funds benefited from
their allocations of lower-quality credits. The performance of this sector was
largely the result of investor demand for the higher yields typically associated
with lower-quality bonds, which drove up their value and tightened credit
spreads. The Dividend Advantage Funds, NXJ, NUJ, NXM, and NVY can invest a
portion of their assets in subinvestment-grade bonds (those rated BB and lower),
which was particularly beneficial to performance during this period.
Among the sectors which performed favorably during the period were health care
(including hospitals), higher education, transportation, and tobacco, all of
which ranked among the top performing revenue sectors in the Lehman Brothers
Municipal Bond Index. The Funds benefited from their holdings in these sectors,
with the exception of tobacco, which was not held in the Pennsylvania Funds.
8
The Pennsylvania funds' exposure to housing bonds was a negative, while in New
Jersey, the funds have less emphasis on housing bonds and this was favorable.
This stems in part from less issuance of New Jersey housing bonds.
During this period, we continued to see advance refundings which benefit the
Funds through price appreciation and enhanced credit quality. As the yield curve
flattened, more lower coupon bonds were being pre-refunded, which meant that, in
general, the positive impact from refinancings was less than in the previous
reporting period.
9
Dividend and Share Price
INFORMATION
All of the Funds in this report use leverage to potentially enhance
opportunities for additional income for common shareholders. Although the Funds'
use of this strategy continued to provide incremental income, the extent of this
benefit was reduced during this period due to relatively high short-term
interest rates. The Funds' borrowing costs also rose, reducing the extent of the
benefits of leveraging. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds generally offering lower yields, especially in the older
Funds. These factors resulted in one monthly dividend increase and one monthly
dividend reduction in NQP, one monthly reduction in NUJ and NVY and two monthly
dividend reductions in NQJ, NNJ, NXJ, NPY and NXM during the twelve months ended
April 30, 2007.
Due to capital gains generated by normal portfolio activity, common shareholders
of the following Funds received capital gains and net ordinary income
distributions at the end of December 2006 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQJ $0.0342 --
--------------------------------------------------------------------------------
NNJ $0.0102 $0.0003
--------------------------------------------------------------------------------
NXJ $0.0053 --
--------------------------------------------------------------------------------
NUJ $0.0033 --
--------------------------------------------------------------------------------
NVY $0.0244 --
--------------------------------------------------------------------------------
These distributions, which represented an important part of the Funds' total
returns for this period, were generated by bond calls and sales of appreciated
securities.
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
10
net investment income as dividends to shareholders. As of April 30, 2007, all
the funds except NNJ had negative UNII balances for financial statement purposes
and positive UNII balances for tax purposes. NNJ had positive UNII balances for
both financial statement and tax purposes.
At the end of the reporting period, the Funds' share prices were trading at
premiums or discounts to their NAVs as shown in the accompanying chart:
4/30/07 10-MONTH AVERAGE (THRU 4/30/07)
PREMIUM/DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NQJ -4.41% -5.41%
--------------------------------------------------------------------------------
NNJ -0.72% -3.23%
--------------------------------------------------------------------------------
NXJ +4.37% +2.74%
--------------------------------------------------------------------------------
NUJ +7.77% +4.01%
--------------------------------------------------------------------------------
NQP -7.77% -10.61%
--------------------------------------------------------------------------------
NPY -7.01% -7.94%
--------------------------------------------------------------------------------
NXM +2.21% +2.74%
--------------------------------------------------------------------------------
NVY -1.04% -2.13%
--------------------------------------------------------------------------------
11
Nuveen New Jersey Investment Quality Municipal Fund, Inc.
NQJ
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.30
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.96
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -4.41%
--------------------------------------------------------------------------------
Market Yield 4.57%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.78%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 306,402
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.12
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.74
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 8.75% 7.05%
--------------------------------------------------------------------------------
1-Year 2.70% 6.90%
--------------------------------------------------------------------------------
5-Year 5.78% 6.75%
--------------------------------------------------------------------------------
10-Year 5.32% 6.40%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 18.1%
--------------------------------------------------------------------------------
Transportation 17.9%
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.4%
--------------------------------------------------------------------------------
Health Care 12.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.5%
--------------------------------------------------------------------------------
Tax Obligation/General 6.9%
--------------------------------------------------------------------------------
Water and Sewer 5.1%
--------------------------------------------------------------------------------
Other 11.1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S.Guaranteed 78%
AA 6%
A 4%
BBB 9%
BB or Lower 2%
N/R 1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0620 $0.0575 $0.0575 $0.0575 $0.0545 $0.0545 $0.0545 $0.0545 $0.0545 $0.0545 $0.0545 $0.0545
---------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.74
$14.69
$14.38
$14.59
$14.42
$14.31
$14.01
$13.80
$13.63
$13.76
$13.78
$13.78
$13.93
$14.03
$14.10
$13.99
$14.10
$14.20
$14.17
$14.11
$14.04
$14.10
$14.06
$14.05
$13.88
$13.84
$14.04
$14.11
$14.15
$14.18
$14.23
$14.32
$14.31
$14.14
$14.05
$14.14
$14.20
$14.11
$14.25
$14.18
$14.26
$14.25
$14.21
$14.23
$14.34
$14.36
$14.36
$14.37
$14.37
$14.36
$14.26
$14.28
4/30/07 $14.30
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006
of $0.0342 per share.
12
Nuveen New Jersey Premium Income Municipal Fund, Inc.
NNJ
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 78%
AA 7%
A 6%
BBB 6%
BB or Lower 1%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0640 $0.0605 $0.0605 $0.0605 $0.0575 $0.0575 $0.0575 $0.0575 $0.0575 $0.0575 $0.0575 $0.0575
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.79
$14.81
$14.53
$14.49
$14.57
$14.70
$14.55
$14.58
$14.15
$14.26
$14.26
$14.35
$14.68
$14.46
$14.53
$14.40
$14.72
$14.63
$15.01
$14.82
$14.66
$14.54
$14.75
$14.72
$14.50
$14.53
$14.72
$14.77
$14.65
$14.71
$14.65
$14.89
$14.90
$14.66
$14.56
$14.55
$14.69
$14.67
$14.74
$14.66
$14.83
$14.83
$14.67
$14.87
$14.95
$15.19
$15.22
$15.00
$15.11
$15.00
$14.79
$14.91
4/30/07 $15.12
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.12
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.23
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -0.72%
--------------------------------------------------------------------------------
Market Yield 4.56%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.77%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 183,540
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 14.87
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.60
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/17/92)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 11.10% 7.03%
--------------------------------------------------------------------------------
1-Year 7.66% 6.77%
--------------------------------------------------------------------------------
5-Year 7.24% 6.28%
--------------------------------------------------------------------------------
10-Year 6.87% 6.74%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 22.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.3%
--------------------------------------------------------------------------------
Transportation 14.8%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.9%
--------------------------------------------------------------------------------
Health Care 10.0%
--------------------------------------------------------------------------------
Water and Sewer 8.7%
--------------------------------------------------------------------------------
Tax Obligation/General 8.2%
--------------------------------------------------------------------------------
Other 8.8%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains and net ordinary income
distributions in December 2006 of $0.0102 and $0.0003 per share,
respectively.
13
Nuveen New Jersey Dividend Advantage Municipal Fund
NXJ
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.75
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.09
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 4.37%
--------------------------------------------------------------------------------
Market Yield 4.72%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.00%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 99,203
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.97
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.59
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 14.37% 7.26%
--------------------------------------------------------------------------------
1-Year 8.74% 7.13%
--------------------------------------------------------------------------------
5-Year 8.68% 7.33%
--------------------------------------------------------------------------------
Since Inception 6.84% 6.91%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 17.3%
--------------------------------------------------------------------------------
Transportation 16.9%
--------------------------------------------------------------------------------
Water and Sewer 15.9%
--------------------------------------------------------------------------------
Health Care 11.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 11.3%
--------------------------------------------------------------------------------
Other 9.5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 73%
AA 4%
A 9%
BBB 10%
BB or Lower 2%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.0680 $0.0645 $0.0645 $0.0645 $0.0645 $0.0645 $0.0645 $0.0645 $0.0645 $0.0645 $0.0620 $0.0620
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $15.15
$15.35
$15.25
$15.11
$14.75
$14.75
$14.97
$14.57
$14.40
$14.44
$14.45
$14.56
$14.80
$15.15
$14.88
$14.83
$14.94
$15.20
$15.30
$15.19
$15.29
$15.50
$15.71
$15.55
$15.79
$15.30
$15.85
$15.62
$15.45
$15.70
$15.51
$15.88
$15.70
$15.62
$15.85
$15.74
$15.95
$15.79
$16.17
$15.69
$15.62
$15.90
$15.99
$15.93
$16.19
$15.86
$15.50
$15.79
$15.66
$15.99
$15.57
$15.79
4/30/07 $15.75
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders a capital gains distribution in December 2006
of $0.0053 per share.
14
Nuveen New Jersey Dividend Advantage Municipal Fund 2
NUJ
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 64%
AA 5%
A 14%
BBB 12%
BB or Lower 3%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
[BAR CHART]
$0.069 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066 $0.066
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $15.40
$15.40
$14.70
$15.21
$15.38
$15.25
$15.27
$14.96
$14.95
$15.09
$15.00
$15.15
$15.24
$15.29
$15.77
$15.26
$15.27
$15.60
$15.74
$15.75
$15.48
$15.59
$15.90
$15.90
$16.22
$16.00
$16.36
$16.06
$16.00
$15.85
$15.78
$15.99
$15.88
$15.99
$15.98
$16.02
$16.23
$15.93
$16.14
$15.90
$16.26
$16.11
$16.00
$16.01
$16.29
$16.31
$16.24
$16.08
$16.18
$16.16
$16.19
$16.32
4/30/07 $16.50
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 16.50
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.31
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 7.77%
--------------------------------------------------------------------------------
Market Yield 4.80%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.12%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 69,238
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 16.73
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.36
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 15.40% 7.50%
--------------------------------------------------------------------------------
1-Year 11.98% 7.39%
--------------------------------------------------------------------------------
5-Year 8.32% 7.61%
--------------------------------------------------------------------------------
Since Inception 8.14% 7.59%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 19.7%
--------------------------------------------------------------------------------
Health Care 18.2%
--------------------------------------------------------------------------------
Transportation 16.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.3%
--------------------------------------------------------------------------------
Education and Civic Organizations 10.5%
--------------------------------------------------------------------------------
Long-Term Care 6.2%
--------------------------------------------------------------------------------
Other 14.6%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 32.6%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
2 The Fund paid shareholders capital gains in December 2006 of $0.0033 per
share.
15
Nuveen Pennsylvania Investment Quality Municipal Fund
NQP
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 14.01
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.19
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.77%
--------------------------------------------------------------------------------
Market Yield 4.58%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.56%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 247,644
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 17.18
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.67
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 2/21/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 12.41% 6.89%
--------------------------------------------------------------------------------
1-Year 9.59% 6.57%
--------------------------------------------------------------------------------
5-Year 5.19% 6.86%
--------------------------------------------------------------------------------
10-Year 4.43% 5.95%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 17.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 15.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.0%
--------------------------------------------------------------------------------
Transportation 7.6%
--------------------------------------------------------------------------------
Water and Sewer 6.8%
--------------------------------------------------------------------------------
Health Care 6.4%
--------------------------------------------------------------------------------
Housing/Single Family 5.2%
--------------------------------------------------------------------------------
Other 10.8%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 70%
AA 20%
A 5%
BBB 4%
N/R 1%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0545 $0.0515 $0.0515 $0.0515 $0.0515 $0.0515 $0.0535 $0.0535 $0.0535 $0.0535 $0.0535 $0.0535
------------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $13.43
$13.42
$13.20
$13.27
$13.35
$13.29
$13.24
$13.08
$13.00
$13.04
$13.13
$12.84
$12.83
$13.13
$13.21
$13.13
$13.23
$13.24
$13.28
$13.37
$13.34
$13.50
$13.50
$13.54
$13.35
$13.30
$13.47
$13.60
$13.73
$13.67
$13.71
$13.84
$13.86
$13.68
$13.67
$13.63
$13.64
$13.67
$13.68
$13.69
$13.77
$13.78
$13.83
$13.86
$14.01
$14.12
$13.94
$13.91
$14.01
$14.00
$13.92
$13.95
4/30/07 $14.01
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
16
Nuveen Pennsylvania Premium Income Municipal Fund 2
NPY
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 72%
AA 14%
A 4%
BBB 5%
BB or Lower 3%
N/R 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
[BAR CHART]
$0.0595 $0.0555 $0.0555 $0.0555 $0.0555 $0.0555 $0.0555 $0.0555 $0.0555 $0.0555 $0.0535 $0.0535
-------------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $13.47
$13.60
$13.39
$13.32
$13.29
$13.27
$13.23
$13.01
$12.89
$13.06
$13.05
$13.06
$12.95
$13.12
$13.34
$13.35
$13.45
$13.39
$13.44
$13.37
$13.46
$13.54
$13.46
$13.47
$13.47
$13.30
$13.43
$13.49
$13.51
$13.52
$13.46
$13.66
$13.66
$13.52
$13.57
$13.54
$13.53
$13.50
$13.54
$13.53
$13.65
$13.70
$13.72
$13.69
$13.78
$13.98
$13.70
$13.73
$13.88
$13.85
$13.75
$13.68
4/30/07 $13.67
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.67
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 14.70
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -7.01%
--------------------------------------------------------------------------------
Market Yield 4.70%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.73%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 232,650
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 17.17
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.63
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/18/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 9.83% 7.31%
--------------------------------------------------------------------------------
1-Year 6.68% 7.12%
--------------------------------------------------------------------------------
5-Year 5.94% 6.61%
--------------------------------------------------------------------------------
10-Year 7.14% 6.77%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 15.0%
--------------------------------------------------------------------------------
U.S. Guaranteed 14.1%
--------------------------------------------------------------------------------
Tax Obligation/General 12.7%
--------------------------------------------------------------------------------
Transportation 12.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.9%
--------------------------------------------------------------------------------
Utilities 7.4%
--------------------------------------------------------------------------------
Health Care 7.0%
--------------------------------------------------------------------------------
Water and Sewer 6.5%
--------------------------------------------------------------------------------
Other 13.8%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
17
Nuveen Pennsylvania Dividend Advantage Municipal Fund
NXM
Performance
OVERVIEW As of April 30, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.70
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.36
--------------------------------------------------------------------------------
Premium/(Discount) to NAV 2.21%
--------------------------------------------------------------------------------
Market Yield 4.89%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 7.01%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 51,160
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 17.27
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.05
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/27/01)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 8.40% 7.22%
--------------------------------------------------------------------------------
1-Year 1.91% 7.13%
--------------------------------------------------------------------------------
5-Year 9.03% 7.98%
--------------------------------------------------------------------------------
Since Inception 7.49% 7.93%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Education and Civic Organizations 19.6%
--------------------------------------------------------------------------------
Health Care 13.2%
--------------------------------------------------------------------------------
U.S. Guaranteed 12.5%
--------------------------------------------------------------------------------
Tax Obligation/General 9.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 8.8%
--------------------------------------------------------------------------------
Long-Term Care 8.3%
--------------------------------------------------------------------------------
Transportation 7.5%
--------------------------------------------------------------------------------
Housing/Single Family 5.0%
--------------------------------------------------------------------------------
Industrials 4.6%
--------------------------------------------------------------------------------
Other 11.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 57%
AA 19%
A 10%
BBB 6%
BB or Lower 3%
N/R 5%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE
$0.0700 $0.0665 $0.0665 $0.0665 $0.0665 $0.0665 $0.0665 $0.0665 $0.0665 $0.0665 $0.0640 $0.0640
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $16.10
$16.62
$15.95
$16.35
$16.13
$16.00
$15.56
$15.28
$15.20
$15.28
$15.40
$15.38
$15.79
$15.33
$15.54
$15.50
$15.94
$15.95
$15.79
$15.46
$15.60
$15.99
$15.80
$15.96
$15.61
$15.91
$15.80
$16.15
$15.85
$16.00
$16.05
$16.14
$16.34
$16.15
$15.91
$16.14
$15.88
$15.79
$15.80
$15.52
$16.01
$15.70
$16.05
$15.98
$16.00
$15.87
$15.80
$15.93
$15.95
$15.86
$15.80
$15.63
4/30/07 $15.70
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a combined federal and state income tax
rate of 30.2%. When comparing this Fund to investments that generate
qualified dividend income, the Taxable-Equivalent Yield is lower.
18
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2
NVY
Performance
OVERVIEW As of April 30, 2007
--------------------------------------------------------------------------------
CREDIT QUALITY
(as a % of total investments)
[PIE CHART]
AAA/U.S. Guaranteed 64%
AA 17%
A 4%
BBB 8%
BB or Lower 3%
N/R 4%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2006-2007 MONTHLY TAX-FREE DIVIDENDS PER SHARE 2
$0.0635 $0.0635 $0.0635 $0.0635 $0.0635 $0.0635 $0.0635 $0.0610 $0.0610 $0.0610 $0.0610 $0.0610
----------------------------------------------------------------------------------------------------------
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
SHARE PRICE PERFORMANCE
[LINE CHART]
Weekly
Date Closing Price
-------- -------------
5/01/06 $14.43
$14.39
$14.38
$14.37
$14.48
$14.53
$14.60
$14.75
$14.25
$14.24
$14.12
$14.18
$14.27
$14.99
$14.70
$14.86
$14.90
$15.25
$15.08
$15.18
$15.20
$15.21
$15.26
$15.36
$15.28
$15.35
$15.23
$15.21
$15.28
$15.20
$15.16
$15.50
$15.60
$15.64
$15.58
$15.40
$15.38
$14.86
$14.71
$14.50
$14.67
$14.69
$14.85
$14.83
$14.96
$15.07
$14.80
$14.83
$15.06
$15.30
$15.30
$15.12
4/30/07 $15.18
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE RESULTS.
--------------------------------------------------------------------------------
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 15.18
--------------------------------------------------------------------------------
Common Share
Net Asset Value $ 15.34
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -1.04%
--------------------------------------------------------------------------------
Market Yield 4.82%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield 1 6.91%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 57,142
--------------------------------------------------------------------------------
Average Effective
Maturity on Securities (Years) 15.70
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.35
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
10-Month (Cumulative) 11.88% 7.14%
--------------------------------------------------------------------------------
1-Year 10.21% 6.98%
--------------------------------------------------------------------------------
5-Year 6.61% 7.49%
--------------------------------------------------------------------------------
Since Inception 6.49% 7.49%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 17.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 17.3%
--------------------------------------------------------------------------------
Tax Obligation/General 15.3%
--------------------------------------------------------------------------------
Health Care 10.9%
--------------------------------------------------------------------------------
Education and Civic Organizations 9.9%
--------------------------------------------------------------------------------
Water and Sewer 6.2%
--------------------------------------------------------------------------------
Housing/Single Family 4.0%
--------------------------------------------------------------------------------
Industrials 3.7%
--------------------------------------------------------------------------------
Other 15.4%
--------------------------------------------------------------------------------
1 Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment in order to equal the yield of the Fund on an
after-tax basis. It is based on a 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.
2 The Fund also paid shareholders a capital gains distribution in December
2006 of $0.0244 per share.
19
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF 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, 2007, and the related statements of
operations, statements of changes in net assets 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, 2007, 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, 2007,
the results of their operations, changes in their net assets and their financial
highlights for each of the periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
June 20, 2007
20
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.6% (0.3% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 800 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 806,280
690 5.125%, 1/01/37 1/15 at 100.00 Baa3 699,557
------------------------------------------------------------------------------------------------------------------------------------
1,490 Total Consumer Discretionary 1,505,837
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (1.7% 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 4,092,267
4,000 5.000%, 6/01/41 6/17 at 100.00 BBB 3,944,400
------------------------------------------------------------------------------------------------------------------------------------
8,300 Total Consumer Staples 8,036,667
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 17.3% (11.5% OF TOTAL
INVESTMENTS)
2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R 2,632,675
Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27
1,000 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 AAA 1,061,730
Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,083,180
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 536,170
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,611,945
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 AAA 1,327,349
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 Aaa 2,946,809
Montclair State University, Series 2006, 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 AAA 1,055,960
1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,053,842
New Jersey Educational Facilities Authority, Revenue Bonds,
New Jersey Institute of Technology, Series 2004B:
2,285 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 AAA 2,434,005
1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,341,396
2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,616,876
2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,051,204
1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,606,587
Ramapo College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured
610 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 663,143
Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/16 at 100.00 AAA 2,003,620
University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured
New Jersey Educational Facilities Authority, Revenue Bonds, St.
Peter's College, Series 1998B:
1,000 5.375%, 7/01/18 7/08 at 102.00 BB+ 1,015,330
1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,780,345
21
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 1,536,721
William Paterson University, Series 2004A, 5.125%,
7/01/21 - FGIC Insured
1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,093,806
Bonds, Rider University, Series 2002A, 5.000%,
7/01/17 - RAAI Insured
3,040 New Jersey Higher Education Assistance Authority, Student Loan 6/07 at 102.00 AAA 3,065,475
Revenue Bonds, New Jersey Class Loan Program, Series 1997A,
5.800%, 6/01/16 - MBIA Insured (Alternative Minimum Tax)
2,145 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 AAA 2,207,870
Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured
(Alternative Minimum Tax)
4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,385,597
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series
2001, 5.250%, 9/01/21
University of Medicine and Dentistry of New Jersey, Certificates
of Participation, Child Health Institute, LLC, Series 2003:
1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 AAA 2,063,587
1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,438,267
University of Medicine and Dentistry of New Jersey, Revenue
Bonds, Series 2002A:
2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 AAA 2,206,281
4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,316,240
------------------------------------------------------------------------------------------------------------------------------------
50,725 Total Education and Civic Organizations 53,136,010
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 New Jersey Economic Development Authority, Revenue Refunding Bonds, No Opt. Call Baa3 5,561,800
Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 18.0% (12.0% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
200 5.000%, 2/15/25 2/15 at 100.00 BBB 204,978
1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 1,077,220
5,750 New Jersey Health Care Facilities Financing Authority, FHA-Insured 8/11 at 100.00 AAA 6,021,055
Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001,
5.000%, 8/01/41 - AMBAC Insured
1,265 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa1 1,348,528
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 423,840
Bonds, Children's Specialized Hospital, Series 2005A,
5.500%, 7/01/36
1,200 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 1,230,084
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- 637,964
Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,145,800
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 3,630,865
Bonds, Meridian Health System Obligated Group, Series 1999,
5.250%, 7/01/29 - FSA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, Robert Wood Johnson University Hospital, Series 2000:
3,850 5.750%, 7/01/25 7/10 at 100.00 A2 4,076,111
2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,117,460
2,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 2,717,728
Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%,
7/01/35 - RAAI Insured
1,985 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 2,036,153
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA $ 5,263,927
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 Ba1 3,431,670
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
2,160 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 2,210,112
Bonds, South Jersey Hospital System, Series 2006, 5.000%,
7/01/36
1,690 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,799,309
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa1 2,167,880
Bonds, St. Peter's University Hospital, Series 2000A, 6.875%,
7/01/20
3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 3,240,493
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
2,605 New Jersey Health Care Facilities Financing Authority, Revenue 7/08 at 101.00 Aaa 2,659,992
Refunding Bonds, St. Barnabas Healthcare System - West Hudson
Hospital Obligated Group, Series 1998A, 5.000%, 7/01/23 -
MBIA Insured
New Jersey Health Care Facilities Financing Authority, Revenue
Refunding Bonds, St. Elizabeth Hospital Obligated Group,
Series 1997:
140 6.000%, 7/01/20 7/07 at 102.00 BBB- 143,167
1,605 6.000%, 7/01/27 7/07 at 102.00 BBB- 1,641,353
3,785 Newark, New Jersey, GNMA Collateralized Healthcare Facility 6/12 at 102.00 Aaa 4,024,553
Revenue Bonds, New Community Urban Renewal Corporation,
Series 2001A, 5.200%, 6/01/30
------------------------------------------------------------------------------------------------------------------------------------
52,825 Total Health Care 55,250,242
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS)
775 Long Branch Housing Finance Corporation New Jersey, Housing 10/07 at 100.00 N/R 779,929
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 2,879,017
Revenue Bonds, Fairview Apartments Project, Series 2000A,
6.400%, 10/20/34 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,518 Total Housing/Multifamily 3,658,946
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,655 New Jersey Housing and Mortgage Finance Agency, Home Buyer Program 10/07 at 101.50 AAA 2,705,790
Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA Insured
(Alternative Minimum Tax)
2,085 New Jersey Housing and Mortgage Finance Agency, Home Buyer Program 10/10 at 100.00 AAA 2,102,514
Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA Insured
(Alternative Minimum Tax)
2,590 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,665,732
Securities Home Mortgage Revenue Bonds, Series 2001A, 5.200%,
12/01/33
2,585 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,664,515
Securities Home Mortgage Revenue Bonds, Series 2001B, 5.300%,
12/01/28 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,915 Total Housing/Single Family 10,138,551
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS)
980 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 1,046,189
Resource Recovery Revenue Refunding Bonds, Waste Management Inc.
Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.8% (1.9% OF TOTAL INVESTMENTS)
1,125 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 1,211,850
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.750%, 11/01/24
2,855 New Jersey Economic Development Authority, GNMA Collateralized 12/11 at 103.00 Aaa 3,041,117
Mortgage Revenue Bonds, Victoria Health Corporation,
Series 2001A, 5.200%, 12/20/36
23
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE (continued)
$ 595 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/11 at 102.00 A- $ 644,445
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- 1,170,774
Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32
New Jersey Health Care Facilities Financing Authority, Revenue
Bonds, House of the Good Shepherd Obligated Group, Series 2001:
1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,032,920
1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,552,500
------------------------------------------------------------------------------------------------------------------------------------
8,175 Total Long-Term Care 8,653,606
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 10.4% (6.9% OF TOTAL INVESTMENTS)
Clifton, New Jersey, General Obligation Bonds, Series 2002:
1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AAA 1,769,547
1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,685,499
1,000 Essex County, New Jersey, General Obligation Refunding Bonds, 11/07 at 101.00 Aaa 1,016,650
Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured
4,300 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 4,619,920
5.000%, 9/01/22 - AMBAC Insured
1,735 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,845,971
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
1,420 Lenape Regional High School District, Burlington County, New No Opt. Call Aaa 1,532,649
Jersey, General Obligation Bonds, Series 2004, 5.000%,
4/01/14 - FGIC Insured
1,500 Middletown Township Board of Education, Monmouth County, New 8/10 at 100.00 AAA 1,547,550
Jersey, Refunding School Bonds, Series 2001, 5.000%,
8/01/27 - FSA Insured
5,000 New Jersey, General Obligation Bonds, Series 1992D, 6.000%, 2/15/11 No Opt. Call AA 5,405,800
2,040 Ocean City Board of Education, Cape May County, New Jersey, General 4/16 at 100.00 Aaa 2,195,672
Obligation Bonds, Series 2005, 5.000%, 4/01/20 - MBIA Insured
Sayreville School District, Middlesex County, New Jersey, General
Obligation Bonds, Series 2002:
1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,535,297
1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,613,629
1,285 Tinton Falls Board of Education, Monmouth County, New Jersey, 10/14 at 100.00 Aaa 1,390,293
General Obligation Bonds, Series 2004, 5.000%, 10/15/15 - FSA
Insured
1,745 Washington Township Board of Education, Mercer County, New Jersey, 1/16 at 100.00 Aaa 1,881,634
General Obligation Bonds, Series 2005, 5.000%, 1/01/19 -
FSA Insured
West Deptford Township, New Jersey, General Obligation Bonds,
Series 2004:
1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,824,085
1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,971,063
------------------------------------------------------------------------------------------------------------------------------------
29,920 Total Tax Obligation/General 31,835,259
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.2% (17.4% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed Lease
Revenue Bonds, County Administration Complex Project, Series 2003:
1,795 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,935,190
2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,145,220
1,775 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 1,989,598
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 Aaa 2,234,716
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 2,947,277
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
Gloucester County Improvement Authority, New Jersey, Lease Revenue
Bonds, Series 2005A:
$ 1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA $ 1,181,950
1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,066,950
1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AAA 1,513,010
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series 2005:
1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,153,089
2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,658,951
1,445 Lower Township Municipal Utilities Authority, Cape May County, New No Opt. Call Aaa 1,544,806
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 1,083,900
2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,162,140
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,074,340
4,000 New Jersey Economic Development Authority, Cigarette Tax Revenue 6/14 at 100.00 BBB 4,308,760
Bonds, Series 2004, 5.750%, 6/15/34
4,675 New Jersey Economic Development Authority, Lease Revenue Bonds, 3/15 at 100.00 AAA 4,949,469
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 AAA 5,446,100
Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, Higher No Opt. Call AAA 2,087,489
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- 2,598,675
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 AAA 3,096,528
4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 4,725,240
3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AAA 3,647,164
2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 1,164,666
1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 2,051,525
4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,747,386
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 4,160,199
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,943,538
System Bonds, Series 2006A, 5.500%, 12/15/22
15,310 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 4,551,051
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
1,625 Passaic County Improvement Authority, New Jersey, Lease Revenue 5/15 at 100.00 Aaa 1,713,140
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 AAA 1,323,285
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
------------------------------------------------------------------------------------------------------------------------------------
85,225 Total Tax Obligation/Limited 80,205,352
------------------------------------------------------------------------------------------------------------------------------------
25
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 26.9% (17.9% OF TOTAL INVESTMENTS)
$ 2,250 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AAA $ 2,451,510
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey, Revenue
Bonds, Series 2005:
2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 2,122,040
4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,297,131
1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,589,505
2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,645,800
3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,671,500
Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured
2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 3,103,323
Revenue Refunding Bonds, Port District Project, Series 2001A,
5.200%, 1/01/27 - FSA Insured
3,000 New Jersey Economic Development Authority, Revenue Bonds, American 5/07 at 100.00 CCC+ 3,004,920
Airlines Inc., Series 1991, 7.100%, 11/01/31 (Alternative
Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
495 6.500%, 1/01/16 No Opt. Call A 568,676
160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 184,650
9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,097,074
5.000%, 1/01/19 - FGIC Insured
1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,463,529
5.250%, 1/01/29 - FSA Insured
4,660 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 4,916,067
5.000%, 1/01/35 - FSA Insured
7,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AAA 7,457,660
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 -
XLCA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 2,106,500
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 2,392,974
5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,247,750
Port Authority of New York and New Jersey, Special Project Bonds,
JFK International Air Terminal LLC, Sixth Series 1997:
3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,028,745
6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 6,805,396
12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,260,757
2,000 South Jersey Port Corporation, New Jersey, Marine Terminal Revenue 1/13 at 100.00 A 2,078,920
Refunding Bonds, Series 2002K, 5.100%, 1/01/33
------------------------------------------------------------------------------------------------------------------------------------
78,355 Total Transportation 82,494,427
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 27.2% (18.1% OF TOTAL INVESTMENTS) (4)
3,320 Atlantic County Improvement Authority, New Jersey, Egg Harbor 11/10 at 100.00 Aaa 3,508,875
Township Golf Corporation Township Guaranteed Revenue Bonds,
Series 2000, 5.400%, 11/01/30 (Pre-refunded 11/01/10) -
AMBAC Insured
3,275 Delaware River and Bay Authority, Delaware and New Jersey, Revenue 1/10 at 101.00 AAA 3,474,972
Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded 1/01/10) -
AMBAC Insured
2,225 Essex County Improvement Authority, New Jersey, General Obligation 10/13 at 100.00 Aaa 2,388,871
Lease Revenue Bonds, Correctional Facilities Project, Series
2003A, 5.000%, 10/01/28 (Pre-refunded 10/01/13) - FGIC Insured
3,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,253,500
Construction Bonds, Series 2003F, 5.250%, 6/15/21 (Pre-refunded
6/15/13) - FGIC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/13 at 100.00 AAA 1,624,110
University, Series 2003D, 5.250%, 7/01/20 (Pre-refunded 7/01/13)
- FGIC Insured
1,925 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA 2,096,903
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16)
- MBIA Insured
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
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 AAA $ 3,091,224
1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,583,574
2,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/12 at 100.00 AAA 2,125,560
Jersey City University, Series 2002A, 5.000%, 7/01/32
(Pre-refunded 7/01/12) - AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo 7/11 at 100.00 AAA 1,051,530
College, Series 2001D, 5.000%, 7/01/31 (Pre-refunded 7/01/11) -
AMBAC Insured
1,300 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/13 at 100.00 AAA 1,398,683
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:
1,000 5.000%, 7/01/15 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 1,076,270
1,195 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 1,286,143
1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 2,018,006
7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 (4) 8,612,673
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
5,670 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 5,991,602
System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded
12/15/11) - MBIA Insured
3,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 3,294,270
System Bonds, Series 2003C, 5.500%, 6/15/17 (Pre-refunded
6/15/13)
3,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 3,372,266
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 197,083
55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 63,762
2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,904,072
760 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 881,076
1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 1,360,050
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
7,500 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 8,019,524
Bonds, Series 2000A, 5.500%, 10/01/34
1,230 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,299,274
Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA
Insured
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2002:
7,275 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 7,777,702
3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,317,850
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,200 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,422,656
2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,985,281
------------------------------------------------------------------------------------------------------------------------------------
77,135 Total U.S. Guaranteed 83,477,362
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 4.3% (2.8% OF TOTAL INVESTMENTS)
3,500 Camden County Pollution Control Financing Authority, New Jersey, 6/07 at 100.00 Baa3 3,548,160
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991A, 7.500%, 12/01/10 (Alternative Minimum Tax)
1,250 Camden County Pollution Control Financing Authority, New Jersey, 6/07 at 100.00 Baa3 1,267,200
Solid Waste Disposal and Resource Recovery System Revenue Bonds,
Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax)
2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AAA 2,200,001
Revenue Bonds, Regional Sludge Project, Series 2003, 5.000%,
12/15/14 - FGIC Insured
27
Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 400 New Jersey Economic Development Authority, Pollution Control 7/07 at 100.00 Baa3 $ 401,948
Revenue Bonds, Jersey Central Power and Light Company, Series
1985, 7.100%, 7/01/15
2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,675,350
Pollution Control Revenue Refunding Bonds, PSEG Power LLC
Project, Series 2001A, 5.750%, 4/01/31 (Alternative Minimum Tax)
3,000 Union County Utilities Authority, New Jersey, Solid Waste Facility 6/08 at 101.00 AAA 3,049,140
Senior Lien Revenue Bonds, Ogden Martin Systems of Union Inc.,
Series 1998A, 5.000%, 6/01/23 - AMBAC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
12,705 Total Utilities 13,141,799
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 7.6% (5.1% OF TOTAL INVESTMENTS)
3,000 Jersey City Municipal Utilities Authority, Hudson County, New 7/08 at 102.00 AAA 3,094,110
Jersey, Sewer Revenue Bonds, Series 2001A-2, 5.200%, 7/15/21 -
FGIC Insured (Alternative Minimum Tax)
Lacey Municipal Utilities Authority, Ocean County, New Jersey,
Water Revenue Bonds, Series 2003B:
1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,874,548
1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,957,229
1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,066,610
7,500 New Jersey Economic Development Authority, Water Facilities 5/07 at 101.00 Aaa 7,580,850
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 Aaa 3,214,650
3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,207,390
1,250 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/11 at 101.00 Aa1 1,311,525
Refunding Bonds, Series 2000, 5.000%, 1/01/18
------------------------------------------------------------------------------------------------------------------------------------
22,335 Total Water and Sewer 23,306,912
------------------------------------------------------------------------------------------------------------------------------------
$ 446,603 Total Investments (cost $444,410,314) - 150.6% 461,448,959
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 6,952,960
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (162,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 306,401,919
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
--------------------------------------------------------------------------------------------
JPMorgan $7,250,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually
============================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
-------------------------------------------------------
JPMorgan 4/25/08 4/25/35 $2,853
=======================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(ETM) Escrowed to maturity.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.6% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior Revenue
Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 483,768
415 5.125%, 1/01/37 1/15 at 100.00 Baa3 420,748
------------------------------------------------------------------------------------------------------------------------------------
895 Total Consumer Discretionary 904,516
------------------------------------------------------------------------------------------------------------------------------------
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 2,398,259
2,300 5.000%, 6/01/41 6/17 at 100.00 BBB 2,268,030
------------------------------------------------------------------------------------------------------------------------------------
4,820 Total Consumer Staples 4,666,289
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.1% (10.9% OF TOTAL
INVESTMENTS)
1,125 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 AAA 1,194,446
Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured
2,705 New Jersey Economic Development Authority, Revenue Bonds, Yeshiva No Opt. Call N/R 3,231,582
Ktana of Passaic, Series 1993, 8.000%, 9/15/18
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 520,795
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 321,702
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,341,139
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 Aaa 1,031,915
Montclair State University, Series 2006, 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 AAA 1,464,664
725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 771,835
1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,595,147
1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,120,196
New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo
College, Series 2004H:
1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 AAA 1,753,914
1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,101,225
300 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/14 at 100.00 AA 326,136
University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
1,150 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/16 at 100.00 AAA 1,152,082
University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured
235 New Jersey Educational Facilities Authority, Revenue Bonds, 7/07 at 100.00 A- 235,463
Trenton State College Issue, Series 1976D, 6.750%, 7/01/08
10 New Jersey Higher Education Assistance Authority, Student Loan 7/07 at 100.00 A+ 10,017
Revenue Bonds, New Jersey Class Loan Program, Series 1992A,
6.125%, 7/01/09 (Alternative Minimum Tax)
1,595 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 101.00 AAA 1,606,739
Revenue Bonds, Series 1999A, 5.250%, 6/01/18 - MBIA Insured
(Alternative Minimum Tax)
29
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
New Jersey Higher Education Assistance Authority, Student Loan
Revenue Bonds, Series 2000A:
$ 1,570 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA $ 1,595,732
1,050 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,080,356
2,000 Rutgers State University, New Jersey, Revenue Bonds, Series 2004E, 5/14 at 100.00 AAA 2,106,360
5.000%, 5/01/34 - FGIC Insured
2,025 University of Medicine and Dentistry of New Jersey, Certificates 4/13 at 100.00 AAA 2,148,464
of Participation, Child Health Institute, LLC, Series 2003,
5.000%, 4/15/21 - AMBAC Insured
1,000 University of Medicine and Dentistry of New Jersey, Certificates 6/14 at 100.00 AAA 1,052,870
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 Bonds, 12/12 at 100.00 AAA 2,875,153
Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
27,965 Total Education and Civic Organizations 29,637,932
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,500 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 1,668,540
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 14.8% (10.0% OF TOTAL INVESTMENTS)
Camden County Improvement Authority, New Jersey, Revenue Bonds,
Cooper Health System, Series 2004A:
185 5.000%, 2/15/25 2/15 at 100.00 BBB 189,605
620 5.750%, 2/15/34 8/14 at 100.00 BBB 667,876
240 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 254,304
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 3,058,166
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- 717,549
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- 389,003
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 3,686,655
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 1,783,232
Bonds, Meridian Health System Obligated Group, Series 1999,
5.625%, 7/01/12 - FSA Insured
465 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 515,480
Bonds, Palisades Medical Center of New York Presbyterian
Healthcare System, Series 2002, 6.625%, 7/01/31
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 AA 1,567,920
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 BBB 1,189,893
Bonds, Saint Barnabas Health Care System, Series 2006A,
5.000%, 7/01/29
2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 AAA 2,105,520
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 Ba1 1,949,813
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
1,245 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 1,273,884
Bonds, South Jersey Hospital System, Series 2006, 5.000%,
7/01/36
1,270 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 1,352,144
Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 -
RAAI Insured
545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 600,110
Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%,
7/01/30
1,130 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 1,208,659
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 1,710 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA $ 1,762,600
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.000%, 7/01/22 - RAAI Insured
25 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 25,566
Refunding Bonds, St. Elizabeth Hospital Obligated Group, Series
1997, 6.000%, 7/01/27
2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/07 at 101.50 A3 2,803,409
Environmental Control Facilities Financing Authority, Adjustable
Rate Industrial Revenue Bonds, American Home Products
Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
25,795 Total Health Care 27,101,388
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS)
340 Essex County Improvement Authority, New Jersey, FNMA Enhanced 11/12 at 100.00 Aaa 342,373
Multifamily Revenue Bonds, Mount Carmel Towers, Series 2002,
4.750%, 11/01/22 (Alternative Minimum Tax)
460 Long Branch Housing Finance Corporation New Jersey, Housing 10/07 at 100.00 N/R 462,926
Revenue Bonds, Washington Manor Associates Ltd. Section 8
Assisted Elderly Project, Series 1980, 10.000%, 10/01/11
7,000 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 7,158,619
Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
7,800 Total Housing/Multifamily 7,963,918
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 1.3% (0.9% OF TOTAL INVESTMENTS)
New Jersey Housing and Mortgage Finance Agency, Home Buyer Program
Revenue Bonds, Series 1997U:
1,515 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 1,544,664
400 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 407,652
430 New Jersey Housing and Mortgage Finance Agency, Home Buyer Program No Opt. Call AAA 436,325
Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,345 Total Housing/Single Family 2,388,641
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS)
575 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 613,836
Resource Recovery Revenue Refunding Bonds, Waste Management Inc.
Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 1.0% (0.7% OF TOTAL INVESTMENTS)
750 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 814,133
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.800%, 11/01/31
1,000 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/11 at 102.00 A- 1,067,720
Charity Foundation of New Jersey, Series 2001, 5.500%, 6/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,750 Total Long-Term Care 1,881,853
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 12.2% (8.2% OF TOTAL INVESTMENTS)
2,460 Freehold Regional High School District, Monmouth County Board of No Opt. Call AAA 2,703,023
Education, New Jersey, School District Refunding Bonds, Series
2001, 5.000%, 3/01/17 - FGIC Insured
2,500 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 2,686,000
5.000%, 9/01/22 - AMBAC Insured
1,500 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,595,940
Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured
2,000 Manalapan-Englishtown Regional Board of Education, New Jersey, 10/13 at 100.00 AAA 2,097,180
General Obligation Bonds, Series 2003, 5.000%, 10/01/27 - MBIA
Insured
New Jersey, General Obligation Bonds, Series 1992D:
2,580 6.000%, 2/15/11 No Opt. Call AA 2,789,393
1,560 6.000%, 2/15/13 No Opt. Call AA 1,741,366
4,000 Passaic County, New Jersey, General Improvement Refunding Bonds, No Opt. Call AAA 4,210,360
Series 1993, 5.125%, 9/01/12 - FGIC Insured
31
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
Stafford Township Board of Education, Ocean County, New Jersey,
General Obligation Bonds, Series 2003:
$ 1,350 5.250%, 1/15/18 - FSA Insured 1/12 at 100.00 Aaa $ 1,434,483
1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,168,838
1,780 West Deptford Township, New Jersey, General Obligation Bonds, 9/14 at 100.00 Aaa 1,887,530
Series 2004, 4.750%, 9/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,830 Total Tax Obligation/General 22,314,113
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 32.9% (22.3% OF TOTAL INVESTMENTS)
Bergen County Improvement Authority, New Jersey, Guaranteed Lease
Revenue Bonds, County Administration Complex Project, Series 2003:
1,200 5.000%, 11/15/17 11/13 at 100.00 Aaa 1,293,720
1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,228,138
1,000 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 1,120,900
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
5,515 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aaa 5,924,158
Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured
1,155 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 1,313,535
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 1,362,421
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
Hudson County Improvement Authority, New Jersey, County Secured
Lease Revenue Bonds, County Services Building Project, Series
2005:
1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,253,588
2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,901,153
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 1,083,900
1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,843,020
1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,074,340
2,540 New Jersey Economic Development Authority, Cigarette Tax Revenue 6/14 at 100.00 BBB 2,736,063
Bonds, Series 2004, 5.750%, 6/15/34
3,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AAA 3,485,504
Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured
2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,827,358
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 AAA 2,773,626
4,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AAA 4,239,720
1,500 New Jersey Sports and Exposition Authority, Convention Center No Opt. Call AAA 1,734,330
Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 - MBIA Insured
3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,316,050
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AAA 2,008,350
2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 433,364
715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 772,021
2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,938,858
System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AAA $ 2,192,220
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 1,187,101
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,954,422
System Bonds, Series 2006A, 5.500%, 12/15/22
4,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,189,040
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
780 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 AAA 784,914
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
2,745 Union County Improvement Authority, New Jersey, General Obligation 3/13 at 100.00 Aaa 2,867,592
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 Obligation 6/13 at 100.00 Aa1 2,569,768
Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23
------------------------------------------------------------------------------------------------------------------------------------
58,830 Total Tax Obligation/Limited 60,409,174
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 21.9% (14.8% OF TOTAL INVESTMENTS)
2,750 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AAA 2,996,290
Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured
Delaware River and Bay Authority, Delaware and New Jersey,
Revenue Bonds, Series 2005:
2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,649,175
4,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 4,233,280
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
1,365 6.500%, 1/01/16 No Opt. Call A 1,568,167
565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 652,044
345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 398,151
5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,111,387
5.000%, 1/01/19 - FGIC Insured
1,995 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 2,104,625
5.000%, 1/01/35 - FSA Insured
2,750 Passaic County Improvement Authority, New Jersey, Revenue Bonds, 4/15 at 100.00 Aaa 2,887,033
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 AAA 4,261,520
Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 -
XLCA Insured
1,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 1,053,250
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 2,099,100
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 Bonds, 12/07 at 102.00 AAA 8,242,715
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 Aaa 895,220
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
37,870 Total Transportation 40,151,957
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 24.0% (16.3% OF TOTAL INVESTMENTS) (4)
2,075 Egg Harbor Township School District, Atlantic County, New Jersey, 4/15 at 100.00 Aaa 2,246,810
General Obligation Bonds, Series 2005, 5.000%, 4/01/27
(Pre-refunded 4/01/15) - MBIA Insured
2,225 Essex County Improvement Authority, New Jersey, General Obligation 10/13 at 100.00 Aaa 2,388,871
Lease Revenue Bonds, Correctional Facilities Project, Series
2003A, 5.000%, 10/01/28 (Pre-refunded 10/01/13) - FGIC Insured
1,750 Garden State Preservation Trust, New Jersey, Open Space and 11/13 at 100.00 AAA 1,880,218
Farmland Preservation Bonds, Series 2003A, 5.000%, 11/01/20
(Pre-refunded 11/01/13) - FSA Insured
3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,714,413
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
33
Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 595 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AAA $ 648,134
University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16)
- MBIA Insured
2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,256,051
Montclair State University, Series 2005F, 5.000%, 7/01/32
(Pre-refunded 7/01/15) - FGIC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/13 at 100.00 AAA 1,075,910
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:
905 5.000%, 7/01/15 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 974,024
400 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AAA 430,508
3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 (4) 3,287,280
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 965,054
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 539,079
195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 226,065
120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 139,117
6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,639,852
1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,040,386
2,745 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 3,182,306
750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 816,030
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
2,795 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 2,988,135
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
3,520 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,764,922
2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,558,813
350 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Aaa 375,778
Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24
(Pre-refunded 10/01/13) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,885 Total U.S. Guaranteed 44,137,756
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.9% (1.3% OF TOTAL INVESTMENTS)
1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,281,463
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,252,734
Series 2005RR, 5.000%, 7/01/35 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,375 Total Utilities 3,534,197
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 12.8% (8.7% OF TOTAL INVESTMENTS)
Bayonne Municipal Utilities Authority, New Jersey, Water System
Revenue Refunding Bonds, Series 2003A:
1,450 5.000%, 4/01/19 - XLCA Insured 4/13 at 100.00 Aaa 1,526,720
1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,306,888
1,000 Hudson County Improvement Authority, New Jersey, Utility System 1/08 at 101.50 AAA 1,024,240
Revenue Bonds, Harrison Franchise Acquisition Project, Series
1997, 5.350%, 1/01/27 - FSA Insured
1,000 Jersey City Sewer Authority, Hudson County, New Jersey, Sewer No Opt. Call AAA 1,112,390
Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 - AMBAC
Insured
3,100 New Jersey Economic Development Authority, Water Facilities 9/07 at 100.00 AAA 3,121,080
Revenue Refunding Bonds, Hackensack Water Company, Series 1994B,
5.900%, 3/01/24 - MBIA Insured (Alternative Minimum Tax)
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA $ 7,217,991
Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20
1,650 New Jersey Water Supply Authority, Water Supply Authority Bonds, 8/15 at 100.00 AAA 1,748,835
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 Aaa 3,741,955
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
1,000 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 1,052,620
Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12
1,500 Wanaque Valley Regional Sewer Authority, Passaic County, New No Opt. Call AAA 1,682,970
Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%,
9/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,400 Total Water and Sewer 23,535,689
------------------------------------------------------------------------------------------------------------------------------------
$ 256,635 Total Investments (cost $260,069,089) - 147.6% 270,909,799
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 4,229,710
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (91,600,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 183,539,509
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
--------------------------------------------------------------------------------------------
JPMorgan $2,500,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually
============================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
-------------------------------------------------------
JPMorgan 4/25/08 4/25/35 $984
=======================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(ETM) Escrowed to maturity.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
35
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior Revenue
Bonds, Heldrich Center Hotel/Conference Center Project, Series
2005A:
$ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 262,041
230 5.125%, 1/01/37 1/15 at 100.00 Baa3 233,186
45 New Jersey Economic Development Authority, General Motors No Opt. Call B- 44,969
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
535 Total Consumer Discretionary 540,196
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (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 1,280,023
1,300 5.000%, 6/01/41 6/17 at 100.00 BBB 1,281,930
------------------------------------------------------------------------------------------------------------------------------------
2,645 Total Consumer Staples 2,561,953
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 16.5% (11.3% OF TOTAL
INVESTMENTS)
250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 268,085
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 805,973
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 Aaa 1,031,915
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/11 at 100.00 AAA 1,055,960
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 AAA 1,062,790
Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 -
AMBAC Insured
1,500 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/11 at 101.00 AAA 1,563,645
College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured
650 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/16 at 100.00 AAA 651,177
University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured
630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 678,649
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 312,516
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI
Insured
200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 AAA 211,668
Bonds, Seton Hall University Project, Series 2001A, 5.250%,
7/01/16 - AMBAC Insured
New Jersey Educational Facilities Authority, Revenue Refunding
Bonds, Seton Hall University Project, Series 2001G:
3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 3,938,839
1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,655,520
Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, University of the Sacred Heart, Series
2001:
2,000 5.250%, 9/01/21 9/11 at 100.00 BBB 2,071,120
500 5.250%, 9/01/31 9/11 at 100.00 BBB 516,780
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- $ 528,060
Environmental Control Facilities Financing Authority, Higher
Education Revenue Refunding Bonds, Ana G. Mendez University
System, Series 2002, 5.500%, 12/01/31
------------------------------------------------------------------------------------------------------------------------------------
15,670 Total Education and Civic Organizations 16,352,697
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government Refinery 1/13 at 100.00 BBB 1,126,980
Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 2.0% (1.3% OF TOTAL INVESTMENTS)
850 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R 864,586
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
250 New Jersey Economic Development Authority, Industrial Development 4/08 at 100.00 Ba1 258,455
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 834,270
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Financials 1,957,311
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.9% (11.5% OF TOTAL INVESTMENTS)
310 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 333,938
Cooper Health System, Series 2004A, 5.750%, 2/15/34
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa1 1,599,045
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 137,748
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- 410,028
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- 186,721
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 3,686,655
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 794,048
3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,176,190
610 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 625,720
Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%,
7/01/29
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 1,039,900
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
665 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 680,428
Bonds, South Jersey Hospital System, Series 2006, 5.000%,
7/01/36
845 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 899,655
Revenue Bonds, St. Clare's Hospital, Series 2004A, 5.250%,
7/01/20 - RAAI Insured
500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- 550,560
Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%,
7/01/30
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,585,975
Refunding Bonds, Burdette Tomlin Memorial Hospital, Series 1999,
5.500%, 7/01/29
40 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 40,906
Refunding Bonds, St. Elizabeth Hospital Obligated Group, Series
1997, 6.000%, 7/01/27
------------------------------------------------------------------------------------------------------------------------------------
15,930 Total Health Care 16,747,517
------------------------------------------------------------------------------------------------------------------------------------
37
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
$ 310 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB $ 330,937
Resource Recovery Revenue Refunding Bonds, Waste Management Inc.
Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 3.1% (2.1% OF TOTAL INVESTMENTS)
250 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 271,378
Bonds, Winchester Gardens at Wards Homestead, Series 2004A,
5.800%, 11/01/31
880 New Jersey Economic Development Authority, Retirement Community 11/16 at 100.00 N/R 886,873
Revenue Bonds, Seabrook Village, Series 2006, 5.250%, 11/15/36
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- 1,092,270
335 5.500%, 6/01/31 6/11 at 102.00 A- 356,249
500 New Jersey Economic Development Authority, Revenue Bonds, United 1/08 at 102.00 BB+ 496,170
Methodist Homes of New Jersey Obligated Group, Series 1998,
5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
2,965 Total Long-Term Care 3,102,940
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 2.5% (1.7% OF TOTAL INVESTMENTS)
1,000 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 1,074,400
5.000%, 9/01/22 - AMBAC Insured
1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,421,564
Series 2001, 5.250%, 7/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,350 Total Tax Obligation/General 2,495,964
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 25.8% (17.6% OF TOTAL INVESTMENTS)
600 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 672,540
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,745 Burlington County Bridge Commission, New Jersey, Guaranteed Pooled 12/13 at 100.00 AAA 1,861,234
Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured
1,500 Camden County Improvement Authority, New Jersey, County Guaranteed 9/15 at 100.00 AAA 1,625,055
Lease Revenue Bonds, Series 2005A, 5.000%, 9/01/16 - FSA Insured
1,100 Casino Reinvestment Development Authority, New Jersey, Hotel Room 1/15 at 102.00 AAA 1,210,418
Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured
500 Essex County Improvement Authority, New Jersey, Lease Revenue No Opt. Call Aaa 532,585
Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured
620 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 705,101
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 906,427
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
1,055 Gloucester County Improvement Authority, New Jersey, Lease Revenue 9/15 at 100.00 AAA 1,127,173
Bonds, Series 2005A, 5.000%, 9/01/20 - MBIA Insured
1,200 New Jersey Economic Development Authority, Cigarette Tax Revenue 6/14 at 100.00 BBB 1,292,628
Bonds, Series 2004, 5.750%, 6/15/34
1,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AAA 1,307,064
Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured
525 New Jersey Educational Facilities Authority, Revenue Bonds, Higher No Opt. Call AAA 569,315
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 AAA 992,821
1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,484,924
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA $ 1,105,350
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AAA 1,071,120
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 AAA 379,194
610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 658,648
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,469,429
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 1,368,909
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,494,558
System Bonds, Series 2006A, 5.500%, 12/15/22
6,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,783,560
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
405 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 AAA 407,552
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,542,045
Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%,
10/01/18 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
27,930 Total Tax Obligation/Limited 25,567,650
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.8% (16.9% OF TOTAL INVESTMENTS)
Delaware River and Bay Authority, Delaware and New Jersey, Revenue
Bonds, Series 2005:
1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AAA 1,061,020
1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,061,020
500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 529,835
1,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 1,058,320
900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 960,525
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
180 6.500%, 1/01/16 No Opt. Call A 206,791
50 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 57,703
3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,188,550
5.000%, 1/01/19 - FGIC Insured
300 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 347,082
5.250%, 1/01/29 - FSA Insured
1,195 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 1,260,665
5.000%, 1/01/35 - FSA Insured
2,000 Port Authority of New York and New Jersey, Consolidated Revenue 7/07 at 101.00 AAA 2,022,360
Bonds, One Hundred Ninth Series 1997, 5.375%, 1/15/32 - MBIA
Insured
500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 526,625
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
3,500 Port Authority of New York and New Jersey, Consolidated Revenue 10/07 at 101.00 AAA 3,559,535
Bonds, One Hundred Twentieth Series 2000, 5.500%, 10/15/35 -
MBIA Insured (Alternative Minimum Tax)
5,000 Port Authority of New York and New Jersey, Special Project Bonds, 12/07 at 102.00 AAA 5,151,699
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, Transportation 11/09 at 101.00 AAA 3,566,423
System Revenue Bonds, Series 1999, 5.125%, 11/01/22 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
23,560 Total Transportation 24,558,153
------------------------------------------------------------------------------------------------------------------------------------
39
Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 25.3% (17.3% OF TOTAL INVESTMENTS) (4)
$ 900 Garden State Preservation Trust, New Jersey, Open Space and 11/13 at 100.00 AAA $ 966,969
Farmland Preservation Bonds, Series 2003A, 5.000%, 11/01/20
(Pre-refunded 11/01/13) - FSA Insured
1,630 Hamilton Township, Mercer County Board of Education, New Jersey, 8/10 at 100.00 AAA 1,684,801
General Obligation Bonds, Series 2001, 4.750%, 8/15/19
(Pre-refunded 8/15/10) - FSA Insured
2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,522,472
Construction Bonds, Series 2001A, 5.000%, 6/15/21
(Pre-refunded 6/15/11) - AMBAC Insured
1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 1,084,500
Construction Bonds, Series 2003F, 5.250%, 6/15/21
(Pre-refunded 6/15/13) - FGIC Insured
385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 419,381
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:
1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,301,568
1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,084,640
520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 564,013
625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 672,669
Rowan University, Series 2004C, 5.000%, 7/01/24
(Pre-refunded 7/01/14) - MBIA Insured
1,350 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 1,479,276
Revenue Bonds, South Jersey Hospital System, Series 2002,
5.875%, 7/01/21 (Pre-refunded 7/01/12)
1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 1,098,090
System Bonds, Series 2003C, 5.500%, 6/15/17
(Pre-refunded 6/15/13)
1,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 1,106,017
System Bonds, Series 2005D, 5.000%, 6/15/19
(Pre-refunded 6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 150,710
20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 23,186
905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,049,176
375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 408,015
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 1,602,900
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
Puerto Rico, General Obligation and Public Improvement Bonds,
Series 2001:
2,150 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 2,281,387
1,000 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,056,320
795 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 849,935
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
2,240 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,395,859
1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,279,406
------------------------------------------------------------------------------------------------------------------------------------
23,270 Total U.S. Guaranteed 25,081,290
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 1.8% (1.2% OF TOTAL INVESTMENTS)
1,030 Camden County Pollution Control Financing Authority, New Jersey, 6/07 at 100.00 Baa3 1,044,173
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 768,878
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
1,780 Total Utilities 1,813,051
------------------------------------------------------------------------------------------------------------------------------------
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 23.2% (15.9% OF TOTAL INVESTMENTS)
$ 225 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 246,956
System Revenue Bonds, Series 2005, 6.000%, 7/01/25
4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,779,843
Revenue Bonds, American Water Company, Series 1997B, 5.375%,
5/01/32 - FGIC Insured (Alternative Minimum Tax)
7,000 New Jersey Economic Development Authority, Water Facilities 2/08 at 102.00 AAA 7,191,449
Revenue Bonds, Middlesex Water Company, Series 1998, 5.350%,
2/01/38 - MBIA Insured (Alternative Minimum Tax)
2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA 2,822,258
Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
15,840 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue No Opt. Call Aaa 7,983,990
Refunding Bonds, Series 2001A, 0.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
30,475 Total Water and Sewer 23,024,496
------------------------------------------------------------------------------------------------------------------------------------
$ 150,270 Total Investments (cost $139,428,202) - 146.4% 145,261,135
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 1,941,475
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.4)% (48,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 99,202,610
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
----------------------------------------------------------------------------------------------
JPMorgan $1,500,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually
==============================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
-----------------------------------------------------
JPMorgan 4/25/08 4/25/35 $590
=====================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(ETM) Escrowed to maturity.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 0.5% (0.4% OF TOTAL INVESTMENTS)
Middlesex County Improvement Authority, New Jersey, Senior
Revenue Bonds, Heldrich Center Hotel/Conference Center Project,
Series 2005A:
$ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 181,413
150 5.125%, 1/01/37 1/15 at 100.00 Baa3 152,078
40 New Jersey Economic Development Authority, General Motors No Opt. Call B- 39,972
Corporation, Series 1984, 5.350%, 4/01/09
------------------------------------------------------------------------------------------------------------------------------------
370 Total Consumer Discretionary 373,463
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.6% (1.8% 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 904,106
900 5.000%, 6/01/41 6/17 at 100.00 BBB 887,490
------------------------------------------------------------------------------------------------------------------------------------
1,850 Total Consumer Staples 1,791,596
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.6% (10.5% OF TOTAL
INVESTMENTS)
1,000 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R 1,053,070
Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27
3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,109,650
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 214,468
Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23
710 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 755,319
Montclair State University, Series 2006, 5.000%, 7/01/36 -
AMBAC Insured
575 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 611,104
New Jersey Institute of Technology, Series 2004B, 5.000%,
7/01/21 - AMBAC Insured
450 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/16 at 100.00 AAA 450,815
University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured
500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 538,610
William Paterson University, Series 2004A, 5.125%, 7/01/19 -
FGIC Insured
1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA 1,135,475
Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 -
RAAI Insured
1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 2/09 at 101.00 BBB- 1,027,410
Environmental Control Facilities Financing Authority, Higher
Education Revenue Bonds, Ana G. Mendez University System,
Series 1999, 5.375%, 2/01/19
1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 AAA 1,871,463
Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
10,315 Total Education and Civic Organizations 10,767,384
------------------------------------------------------------------------------------------------------------------------------------
ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS)
1,000 Virgin Islands, Senior Secured Revenue Bonds, Government Refinery 1/13 at 100.00 BBB 1,126,980
Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FINANCIALS - 5.1% (3.4% OF TOTAL INVESTMENTS)
600 New Jersey Economic Development Authority, Economic Development 11/08 at 101.00 N/R 610,296
Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%,
11/01/28 (Alternative Minimum Tax)
1,250 New Jersey Economic Development Authority, Industrial Development 4/08 at 100.00 Ba1 1,292,275
Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series
1996, 7.000%, 10/01/14
42
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 $ 1,612,922
Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%,
10/01/21
------------------------------------------------------------------------------------------------------------------------------------
3,300 Total Financials 3,515,493
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 26.9% (18.2% OF TOTAL INVESTMENTS)
220 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 236,988
Cooper Health System, Series 2004A, 5.750%, 2/15/34
New Jersey Health Care Facilities Financing Authority,
FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center,
Series 2001:
500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 521,990
1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 2,015,745
1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa1 1,066,030
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 95,364
Bonds, Children's Specialized Hospital, Series 2005A, 5.500%,
7/01/36
250 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 256,268
Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36
120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 124,481
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 419,440
140 5.625%, 7/01/31 7/11 at 100.00 A2 147,466
510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 529,069
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 BBB- 1,313,644
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 3,705,554
Bonds, Robert Wood Johnson University Hospital, Series 2000,
5.750%, 7/01/31
435 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 446,210
Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%,
7/01/29
700 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba1 727,930
Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33
455 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 465,556
Bonds, South Jersey Hospital System, Series 2006, 5.000%,
7/01/36
2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 2,674,025
Refunding Bonds, Atlantic City Medical Center, Series 2002,
5.750%, 7/01/25
1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 AA 1,188,698
Refunding Bonds, Bayshore Community Hospital, Series 2002,
5.125%, 7/01/32 - RAAI Insured
1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/07 at 102.00 BBB- 1,533,975
Refunding Bonds, St. Elizabeth Hospital Obligated Group, Series
1997, 6.000%, 7/01/27
1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/07 at 101.50 A3 1,163,679
Environmental Control Facilities Financing Authority,
Adjustable Rate Industrial Revenue Bonds, American Home
Products Corporation, Series 1983A, 5.100%, 12/01/18
------------------------------------------------------------------------------------------------------------------------------------
17,680 Total Health Care 18,632,112
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 3.3% (2.3% OF TOTAL INVESTMENTS)
2,250 New Jersey Housing and Mortgage Finance Agency, Multifamily 11/07 at 101.50 AAA 2,301,885
Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS)
220 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 234,859
Resource Recovery Revenue Refunding Bonds, Waste Management
Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory
put 12/01/09)
------------------------------------------------------------------------------------------------------------------------------------
43
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 9.1% (6.2% OF TOTAL INVESTMENTS)
$ 620 New Jersey Economic Development Authority, Retirement Community 11/16 at 100.00 N/R $ 624,842
Revenue Bonds, Seabrook Village, Series 2006, 5.250%, 11/15/36
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- 1,067,720
4,000 5.500%, 6/01/31 6/11 at 102.00 A- 4,253,719
375 New Jersey Economic Development Authority, Revenue Bonds, United 1/08 at 102.00 BB+ 372,128
Methodist Homes of New Jersey Obligated Group, Series 1998,
5.125%, 7/01/25
------------------------------------------------------------------------------------------------------------------------------------
5,995 Total Long-Term Care 6,318,409
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 1.7% (1.1% OF TOTAL INVESTMENTS)
700 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 AAA 752,080
5.000%, 9/01/22 - AMBAC Insured
385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 403,873
Series 2001, 5.125%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,085 Total Tax Obligation/General 1,155,953
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 21.1% (14.3% OF TOTAL INVESTMENTS)
400 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 448,360
Revenue Bonds, County Administration Complex Project, Series
2005, 5.000%, 11/15/26
1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,066,610
Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured
750 Casino Reinvestment Development Authority, New Jersey, Hotel Room 1/15 at 102.00 AAA 825,285
Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured
435 Essex County Improvement Authority, New Jersey, Project No Opt. Call Aaa 494,708
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 589,455
Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 -
FSA Insured
535 Mansfield Township Board of Education, Warren County, New Jersey, 9/07 at 101.00 AAA 541,243
Certificates of Participation, Series 1995, 5.900%, 3/01/15 -
MBIA Insured
700 New Jersey Economic Development Authority, Cigarette Tax Revenue 6/14 at 100.00 BBB 754,033
Bonds, Series 2004, 5.750%, 6/15/34
350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 379,544
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 AAA 703,025
985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AAA 1,044,750
1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,105,350
Federal Transit Administration Grants, Series 2002A, 5.500%,
9/15/14 - AMBAC Insured
765 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AAA 819,407
2005A, 5.000%, 9/15/18 - FGIC Insured
New Jersey Transportation Trust Fund Authority, Federal Highway
Aid Grant Anticipation Bonds, Series 2006:
295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 319,606
525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 566,869
900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,017,297
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 711,191
System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured
800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 919,728
System Bonds, Series 2006A, 5.500%, 12/15/22
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 5,000 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA $ 1,486,300
System Bonds, Series 2006C, 0.000%, 12/15/34 - FSA Insured
290 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 AAA 291,827
Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured
505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- 533,876
Appropriation Bonds, Series 2002E, 5.500%, 8/01/29
------------------------------------------------------------------------------------------------------------------------------------
17,085 Total Tax Obligation/Limited 14,618,464
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 24.4% (16.5% OF TOTAL INVESTMENTS)
500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 529,835
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 640,350
Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%,
11/15/30 (Alternative Minimum Tax)
505 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call A 580,164
6.500%, 1/01/16
2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,125,700
5.000%, 1/01/19 - FGIC Insured
1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,735,410
5.250%, 1/01/29 - FSA Insured
820 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 865,059
5.000%, 1/01/35 - FSA Insured
500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 526,625
Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34
3,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 3,148,650
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 Revenue 6/14 at 100.00 AAA 2,092,000
Bonds, One Hundred Twenty-Seventh Series 2002, 5.125%, 6/15/37
- AMBAC Insured (Alternative Minimum Tax)
Port Authority of New York and New Jersey, Special Project Bonds,
JFK International Air Terminal LLC, Sixth Series 1997:
4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,604,277
50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 51,517
------------------------------------------------------------------------------------------------------------------------------------
15,475 Total Transportation 16,899,587
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 29.1% (19.7% OF TOTAL INVESTMENTS) (4)
Garden State Preservation Trust, New Jersey, Open Space and
Farmland Preservation Bonds, Series 2003A:
500 5.250%, 11/01/19 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 544,370
625 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 671,506
3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,181,439
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, Kean 7/16 at 100.00 AAA 190,628
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 AAA 867,712
315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 341,662
1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 (4) 1,369,700
Bonds, South Jersey Hospital System, Series 2002, 5.875%,
7/01/21 (Pre-refunded 7/01/12)
680 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 718,570
System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded
12/15/11) - MBIA Insured
535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 580,117
System Bonds, Series 2005D, 5.000%, 6/15/19 (Pre-refunded
6/15/15) - FSA Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 1991C:
170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 197,083
2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,817,123
250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 272,010
Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded
1/01/14) - MBIA Insured
45
Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, Series 7/12 at 101.00 AAA $ 3,238,109
2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) - FSA Insured
1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,068,600
Obligation Bonds, Series 2000A, 5.500%, 10/01/40
895 Tobacco Settlement Financing Corporation, New Jersey, Tobacco 6/12 at 100.00 AAA 956,845
Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32
(Pre-refunded 6/01/12)
Tobacco Settlement Financing Corporation, New Jersey, Tobacco
Settlement Asset-Backed Bonds, Series 2003:
1,600 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,711,328
1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,421,563
------------------------------------------------------------------------------------------------------------------------------------
18,475 Total U.S. Guaranteed 20,148,365
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.3% (3.6% OF TOTAL INVESTMENTS)
470 Camden County Pollution Control Financing Authority, New Jersey, 6/07 at 100.00 Baa3 476,467
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 AAA 2,390,275
10/01/34 - MBIA Insured
750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 768,878
Revenue Refunding Bonds, Public Service Electric and Gas
Company, Series 2001A, 5.000%, 3/01/12
------------------------------------------------------------------------------------------------------------------------------------
3,520 Total Utilities 3,635,620
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 1.0% (0.7% OF TOTAL INVESTMENTS)
150 Guam Government Waterworks Authority, Water and Wastewater System 7/15 at 100.00 Ba2 164,637
Revenue Bonds, Series 2005, 6.000%, 7/01/25
500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 Aaa 534,565
Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
650 Total Water and Sewer 699,202
------------------------------------------------------------------------------------------------------------------------------------
$ 99,270 Total Investments (cost $97,503,668) - 147.6% 102,219,372
============------------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 1,518,394
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.8)% (34,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 69,237,766
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
------------------------------------------------------------------------------------------
JPMorgan $750,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually
==========================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
-----------------------------------------------------
JPMorgan 4/25/08 4/25/35 $295
=====================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
(ETM) Escrowed to maturity.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
46
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 0.4% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,127,850
Waste Disposal Revenue Bonds, Procter & Gamble Paper Project,
Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 25.6% (15.7% OF TOTAL
INVESTMENTS)
2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,051,460
Pennsylvania, College Revenue Bonds, Chatham College, Series
1998A, 5.250%, 9/01/18
200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 232,556
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- 3,132,150
Pennsylvania, Revenue Bonds, Carnegie Mellon University,
Series 2002, 5.125%, 3/01/32
1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,242,422
Pennsylvania, Revenue Bonds, Robert Morris University, Series
2006A, 4.750%, 2/15/26
2,000 Chester County Industrial Development Authority, Pennsylvania, 1/12 at 100.00 AAA 2,075,680
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 3,212,160
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 AAA 1,832,180
840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 898,674
1,315 Delaware County Authority, Pennsylvania, Revenue Refunding Bonds, 8/13 at 100.00 AAA 1,419,779
Villanova University, Series 2003, 5.250%, 8/01/18 - FGIC
Insured
1,000 Harveys Lake General Municipal Authority, Pennsylvania, College 11/09 at 100.00 A 1,044,030
Revenue Bonds, College of Misericordia Project, Series 1999,
6.000%, 5/01/19 - ACA Insured
Indiana County Industrial Development Authority, Pennsylvania,
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 1999B:
815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 580,141
815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 554,811
815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 530,622
815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 506,514
815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 484,689
1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,494,684
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 AAA 8,275,040
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 Aaa 5,278,000
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,463,442
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,215,450
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI
Insured
3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 4,153,284
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 333,517
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/20
47
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA $ 2,106,440
Bonds, University of Pennsylvania, Series 2005C, 5.000%,
7/15/38
2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 3,132,008
Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 - RAAI
Insured
6,500 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 6,887,985
2005, 5.000%, 9/01/29
510 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 528,952
Revenue Bonds, Franklin Towne Charter High School, Series
2006A, 5.250%, 1/01/27
2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore College 9/08 at 100.00 Aaa 2,877,799
Revenue Bonds, Series 1998, 5.000%, 9/15/28
1,665 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,774,857
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/18
5 Wilkes-Barre General Municipal Authority, Pennsylvania, College 6/07 at 100.00 N/R 5,016
Revenue Refunding Bonds, College of Misericordia, Series 1992B,
7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
61,970 Total Education and Civic Organizations 63,324,342
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 10.4% (6.4% OF TOTAL INVESTMENTS)
1,555 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,594,606
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,185,947
Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 - AMBAC
Insured
750 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 781,725
Revenue Bonds, The Lancaster General Hospital Project, Series
2007A, 5.000%, 3/15/31
800 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 787,496
Revenue Bonds, The Lancaster General Hospital Project, Series
2007B, 4.500%, 3/15/36
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,325,175
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 9,717,569
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Children's Hospital of
Philadelphia, Series 2007:
1,500 4.500%, 7/01/33 7/17 at 100.00 AA 1,487,370
3,500 4.500%, 7/01/37 (DD1, Settling 5/01/07) 7/17 at 100.00 AA 3,451,455
1,225 Philadelphia Hospitals and Higher Education Facilities Authority, 7/07 at 100.00 BBB 1,228,197
Pennsylvania, Hospital Revenue Bonds, Temple University
Hospital, Series 1993A, 6.625%, 11/15/23
1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 AAA 1,720,379
Bonds, Latrobe Area Hospital, Series 2002A, 5.250%, 7/01/13 -
AMBAC Insured
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 548,641
370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 387,201
1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,603,800
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001, 6.250%,
1/01/32
------------------------------------------------------------------------------------------------------------------------------------
24,705 Total Health Care 25,819,561
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.9% (1.2% OF TOTAL INVESTMENTS)
3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 3,467,970
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
800 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 838,504
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35
425 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 8/07 at 100.00 A2 425,531
Revenue Bonds, Series 1992C, 7.125%, 8/01/13 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
4,525 Total Housing/Multifamily 4,732,005
------------------------------------------------------------------------------------------------------------------------------------
48
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 8.5% (5.2% OF TOTAL INVESTMENTS)
$ 10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ $ 10,096,499
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
2,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,805,688
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
3,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,602,200
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+ 1,336,409
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative
Minimum Tax)
960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 10/07 at 102.00 AAA 969,034
Revenue Bonds, Series 1997A, 6.250%, 10/01/28 (Alternative
Minimum Tax)
2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage 10/11 at 100.00 AAA 2,200,969
Revenue Bonds, Series 2001B, 5.450%, 10/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
20,705 Total Housing/Single Family 21,010,799
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 4.3% (2.7% OF TOTAL INVESTMENTS)
5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A3 5,351,450
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.375%,
11/01/41 (Alternative Minimum Tax)
5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,408,650
Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
10,000 Total Industrials 10,760,100
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 2.9% (1.8% OF TOTAL INVESTMENTS)
1,330 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 1,352,876
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 AA 1,546,710
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+ 1,612,434
840 5.000%, 11/01/36 11/16 at 100.00 A+ 865,956
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/08 at 102.00 N/R 234,731
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A,
5.875%, 5/15/28
1,500 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,578,375
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B, 5.250%, 7/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,950 Total Long-Term Care 7,191,082
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 1.3% (0.8% OF TOTAL INVESTMENTS)
1,260 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,282,025
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 11/08 at 102.00 N/R 1,820,420
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,010 Total Materials 3,102,445
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 28.6% (17.5% OF TOTAL INVESTMENTS)
1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,898,460
Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured
2,200 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,310,968
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
2,345 Delaware County, Pennsylvania, General Obligation Bonds, Series 10/15 at 100.00 AA 2,511,167
2005, 5.000%, 10/01/20
6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 6,821,520
Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
49
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL (continued)
$ 7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call AAA $ 2,637,695
Obligation Bonds, Series 2000, 0.000%, 9/01/30 - AMBAC Insured
7,500 Montgomery County, Pennsylvania, General Obligation Bonds, Series 7/09 at 100.00 Aaa 7,667,700
1999, 5.000%, 7/15/24 (6)
1,000 New Castle Area School District, Lawrence County, Pennsylvania, 3/10 at 100.00 AAA 1,051,210
General Obligation Bonds, Series 2000, 5.600%, 3/01/25 - MBIA
Insured
Pennsylvania, General Obligation Bonds, Second Series 2005:
1,500 5.000%, 1/01/18 1/16 at 100.00 AA 1,618,590
2,100 5.000%, 1/01/19 1/16 at 100.00 AA 2,259,621
4,000 Pennsylvania, General Obligation Bonds, Series 2006-1, 5.000%, 10/16 at 100.00 AA 4,336,400
10/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 1,676,025
Bonds, Series 2007A, 5.000%, 6/01/34 (WI/DD, Settling 5/22/07)
- FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,354,930
General Obligation Refunding Bonds, Series 2002A, 5.500%,
9/01/15 - FSA Insured
2,475 Pittsburgh, Pennsylvania, General Obligation Bonds, Series 2006B, No Opt. Call AAA 2,734,652
5.250%, 9/01/16 - FSA Insured
1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 Aaa 1,145,842
General Obligation Bonds, Series 2006A, 5.000%, 4/01/22 - FGIC
Insured
445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 481,735
Revenue Bonds, Conneaut School District, Series 2003, 5.250%,
11/01/21 - FGIC Insured
21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA 24,647,280
Revenue Bonds, Philadelphia School District, Series 2003,
5.500%, 6/01/28 - FSA Insured (UB)
1,465 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,543,495
General Obligation Bonds, Series 2001A, 5.000%, 4/01/18 - FSA
Insured
415 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 446,328
Pennsylvania, General Obligation Bonds, Series 2003, 5.250%,
2/15/19
1,600 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 1,732,784
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
68,765 Total Tax Obligation/General 70,876,402
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 23.0% (14.0% OF TOTAL INVESTMENTS)
3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AAA 3,631,285
Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29 -
FGIC Insured
455 Erie County Convention Center Authority, Pennsylvania, No Opt. Call AAA 525,734
Appropriation Bonds, Series 2006, Drivers 1507, 6.690%, 1/15/13
- FGIC Insured (IF)
7,700 Erie County Convention Center Authority, Pennsylvania, Convention 1/15 at 100.00 AAA 8,099,013
Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC
Insured (UB)
8,725 Pennsylvania Intergovernmental Cooperative Authority, Special Tax 6/09 at 100.00 AAA 8,842,438
Revenue Refunding Bonds, Philadelphia Funding Program, Series
1999, 4.750%, 6/15/23 - FGIC Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue
Bonds, Series 2006B:
6,775 4.750%, 12/01/30 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,014,903
7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,888,978
100 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 110,958
Series 2005A, 5.250%, 7/15/16 - FSA Insured
10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,531,939
Lease Revenue Bonds, Series 2001B, 5.250%, 10/01/30 - FSA
Insured
2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,895,426
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
4,000 Pittsburgh and Allegheny Counties Public Auditorium Authority, 8/09 at 101.00 AAA 4,118,160
Pennsylvania, Sales Tax Revenue Bonds, Regional Asset District,
Series 1999, 5.000%, 2/01/29 - AMBAC Insured
1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, Tax 5/09 at 100.00 A2 1,131,889
Increment Financing District Bonds, Center Triangle Project,
Series 1999A, 6.100%, 5/01/19
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA $ 1,046,625
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
56,745 Total Tax Obligation/Limited 56,837,348
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 12.4% (7.6% OF TOTAL INVESTMENTS)
630 Delaware River Joint Toll Bridge Commission, Pennsylvania and New 7/13 at 100.00 A2 671,756
Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,148,350
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, Revenue 6/12 at 102.00 A 5,842,962
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, Series 12/11 at 101.00 AAA 2,304,896
2001R, 5.000%, 12/01/30 - AMBAC Insured
Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series
2006A:
3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 4,097,943
2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,133,987
3,750 Philadelphia Airport System, Pennsylvania, Airport Revenue Bonds, 6/15 at 100.00 AAA 3,805,388
Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative
Minimum Tax)
5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, Series 6/11 at 101.00 AAA 5,223,150
2001B, 5.250%, 6/15/31 - FGIC Insured (Alternative Minimum Tax)
3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,369,925
Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,015 Total Transportation 30,598,357
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.1% (16.0% OF TOTAL INVESTMENTS) (4)
5,045 Allegheny County Industrial Development Authority, Pennsylvania, 11/12 at 100.00 AAA 5,362,381
Revenue Bonds, Guaranteed County Building Project, Series
2002A, 5.000%, 11/01/22 (Pre-refunded 11/01/12) - MBIA Insured
3,550 Allegheny County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 AAA 3,755,013
2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) - FGIC
Insured
1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 1,396,230
Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded 5/01/11)
- FGIC Insured
5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, Series 12/11 at 100.00 AAA 5,316,800
2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) - MBIA Insured
6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,736,526
Pennsylvania, General Obligation Bonds, Series 2002, 5.375%,
2/15/18 (Pre-refunded 2/15/12) - FGIC Insured
2,500 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (4) 2,710,800
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) 722,840
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/20 (Pre-refunded 1/01/13)
2,125 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/13 at 100.00 AAA 2,313,955
Revenue Bonds, Series 2003A, 5.250%, 12/01/18 (Pre-refunded
12/01/13) - MBIA Insured
3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, 7/11 at 101.00 AAA 3,866,628
Series 2001, 5.000%, 7/15/41 (Pre-refunded 7/15/11) - AMBAC
Insured
725 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 864,918
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,712,188
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
5,525 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 11/12 at 100.00 AAA 5,986,227
Series 2001A, 5.375%, 11/01/20 (Pre-refunded 11/01/12) - FGIC
Insured
6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,464,536
General Obligation Bonds, Series 2001, 5.250%, 9/15/30
(Pre-refunded 9/15/11) - FGIC Insured
51
Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
$ 960 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) $ 1,058,189
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
785 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 854,041
Revenue Bonds, Conneaut School District, Series 2003, 5.250%,
11/01/21 (Pre-refunded 11/01/13) - FGIC Insured
2,000 Sto Rox School District, Allegheny County, Pennsylvania, General 12/10 at 100.00 AAA 2,137,320
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 AAA 3,607,020
Pennsylvania, Water and Sewer Revenue Bonds, Series 1991,
7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured
4,805 West View Borough Municipal Authority, Allegheny County, No Opt. Call Aaa 5,894,245
Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%,
11/15/14
1,700 Wilkes-Barre Area School District, Luzerne County, Pennsylvania, 4/14 at 100.00 AAA 1,854,632
General Obligation Bonds, Series 2003A, 5.250%, 4/01/19
(Pre-refunded 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
59,145 Total U.S. Guaranteed 64,614,489
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.5% (4.0% OF TOTAL INVESTMENTS)
1,250 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 1,292,413
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
1,680 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 1,746,343
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10
(Alternative Minimum Tax)
2,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,494,322
Pollution Control Revenue Bonds, Pennsylvania Power and Light
Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
3,500 Montgomery County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 3,786,825
Resource Recovery Revenue Refunding Bonds, Montgomery County
Montenay Project, Series 2002A, 5.250%, 11/01/13 -
MBIA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 735,679
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 2,167,680
Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA
Insured
3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,914,933
Pollution Control Revenue Refunding Bonds, PSEG Power Project,
Series 2001A, 5.500%, 9/01/20
------------------------------------------------------------------------------------------------------------------------------------
15,260 Total Utilities 16,138,195
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 11.0% (6.8% OF TOTAL INVESTMENTS)
2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,353,220
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
5,000 Delaware County Industrial Development Authority, Pennsylvania, 10/12 at 100.00 AAA 5,274,200
Water Facilities Revenue Bonds, Philadelphia Water Company,
Series 2001, 5.350%, 10/01/31 - AMBAC Insured (Alternative
Minimum Tax)
Delaware County Regional Water Quality Control Authority,
Pennsylvania, Sewerage Revenue Bonds, Series 2001A:
5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,614,201
1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,544,564
1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,513,064
Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%,
5/01/20 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 2,127,920
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage Revenue 4/14 at 100.00 AAA 1,327,975
Bonds, Series 2004, 5.000%, 4/01/20 - MBIA Insured
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 5,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 11/12 at 100.00 AAA $ 5,207,150
Series 2001A, 5.000%, 11/01/31 - FGIC Insured
2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 7/15 at 100.00 AAA 2,280,763
Series 2005A, 5.000%, 7/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
25,795 Total Water and Sewer 27,243,057
------------------------------------------------------------------------------------------------------------------------------------
$ 387,590 Total Investments (cost $385,607,188) - 162.9% 403,376,032
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.6)% (28,715,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 4,982,638
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.3)% (132,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 247,643,670
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
-----------------------------------------------------------------------------------------
JPMorgan $31,000,000 Receive SIFM 3.698% Quarterly
=========================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
-------------------------------------------------------
JPMorgan 2/04/08 2/02/13 $(340,646)
=======================================================
SIFM - The daily arithmetic average of the weekly SIFM (The
Securities Industry and Financial Markets) Municipal Swap Index.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
(6) Portion of the investment, with an aggregate market value of $265,814,
has been pledged to collateralize the net payment obligations under
forward swap contracts.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
DD1 Portion of investment purchased on a delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
53
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 23.9% (15.0% OF TOTAL
INVESTMENTS)
$ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,085,870
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 232,556
Pennsylvania, College Revenue Refunding Bonds, Robert Morris
College, Series 1998A, 6.000%, 5/01/28
1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AAA 1,323,348
Pennsylvania, Revenue Bonds, Duquesne University, Series 2004A,
5.000%, 3/01/19 - FGIC Insured
1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 1,146,851
Pennsylvania, Revenue Bonds, Robert Morris University, Series
2006A, 4.750%, 2/15/26
3,000 Chester County Health and Education Facilities Authority, 10/08 at 102.00 BB+ 3,048,810
Pennsylvania, College Revenue Bonds, Immaculata College, Series
1998, 5.625%, 10/15/27
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 1,676,819
770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 823,785
Delaware County Authority, Pennsylvania, Revenue Refunding Bonds,
Villanova University, Series 2003:
1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AAA 1,840,854
1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,457,568
1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,079,680
3,060 Indiana County Industrial Development Authority, Pennsylvania, 11/14 at 100.00 AAA 3,239,377
Revenue Bonds, Student Cooperative Association Inc./Indiana
University of Pennsylvania - Student Union Project,
Series 2004, 5.000%, 11/01/24 - AMBAC Insured
1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,553,879
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
2,500 Montgomery County Industrial Development Authority, Pennsylvania, 8/15 at 100.00 Aaa 2,657,575
Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/25 - MBIA
Insured
4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 4,312,126
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,310,469
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,023,170
Bonds, LaSalle University, Series 1998, 5.250%, 5/01/23 - MBIA
Insured
2,100 Pennsylvania Higher Educational Facilities Authority, Revenue 6/10 at 100.00 AA 2,217,285
Bonds, Philadelphia University, Series 2000, 6.000%, 6/01/29 -
RAAI Insured
3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 3,219,600
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 1,902,232
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 2,106,440
Bonds, University of Pennsylvania, Series 2005C, 5.000%,
7/15/38
1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA 1,408,630
Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 - RAAI
Insured
1,000 Pennsylvania Higher Educational Facilities Authority, University 5/15 at 100.00 AAA 1,027,130
of the Sciences in Philadelphia Revenue Bonds, Series 2005,
4.750%, 11/01/33 - XLCA Insured
10,600 Pennsylvania State University, General Revenue Bonds, Series 8/16 at 100.00 AA 10,530,994
2007A, 4.500%, 8/15/36 (UB)
470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 487,465
Revenue Bonds, Franklin Towne Charter High School, Series
2006A, 5.250%, 1/01/27
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS (continued)
$ 1,545 State Public School Building Authority, Pennsylvania, College 5/15 at 100.00 Aaa $ 1,652,316
Revenue Bonds, Montgomery County Community College, Series
2005, 5.000%, 5/01/18 - AMBAC Insured
2,270 Swarthmore Boro Authority, Pennsylvania, College Revenue Bonds, 9/16 at 100.00 Aaa 2,415,757
Swarthmore College, Series 2006A, 5.000%, 9/15/30
750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 807,758
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/19
10 Wilkes-Barre General Municipal Authority, Pennsylvania, College 6/07 at 100.00 N/R 10,032
Revenue Refunding Bonds, College of Misericordia, Series 1992B,
7.750%, 12/01/12
------------------------------------------------------------------------------------------------------------------------------------
53,425 Total Education and Civic Organizations 55,598,376
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 11.1% (7.0% OF TOTAL INVESTMENTS)
1,455 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,492,059
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,306,395
Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 - AMBAC
Insured
750 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 781,725
Revenue Bonds, The Lancaster General Hospital Project, Series
2007A, 5.000%, 3/15/31
800 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 787,496
Revenue Bonds, The Lancaster General Hospital Project, Series
2007B, 4.500%, 3/15/36
5,000 Lebanon County Health Facilities Authority, Pennsylvania, Revenue 11/12 at 101.00 BBB 5,408,050
Bonds, Good Samaritan Hospital Project, Series 2002, 5.900%,
11/15/28
1,250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 1,325,175
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Children's Hospital of
Philadelphia, Series 2007:
1,500 4.500%, 7/01/33 7/17 at 100.00 AA 1,487,370
5,380 4.500%, 7/01/37 (DD1, Settling 5/01/07) 7/17 at 100.00 AA 5,305,379
Pottsville Hospital Authority, Pennsylvania, Hospital Revenue
Bonds, Pottsville Hospital and Warne Clinic, Series 1998:
2,000 5.500%, 7/01/18 7/08 at 100.00 BB+ 2,005,440
2,000 5.625%, 7/01/24 7/08 at 100.00 BB+ 2,001,500
Sayre Health Care Facility Authority, Pennsylvania, Revenue
Bonds, Latrobe Area Hospital, Series 2002A:
1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 AAA 1,806,828
1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,272,516
Southcentral Pennsylvania General Authority, Revenue Bonds,
Hanover Hospital Inc., Series 2005:
475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 AA 496,389
330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 345,342
------------------------------------------------------------------------------------------------------------------------------------
25,070 Total Health Care 25,821,664
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 5.3% (3.4% OF TOTAL INVESTMENTS)
3,830 Bucks County Redevelopment Authority, Pennsylvania, Section 8 8/07 at 100.00 Baa2 3,835,017
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, Pennsylvania, 4/12 at 100.00 AAA 2,065,480
Multifamily Housing Revenue Bonds, Darby Townhouses Project,
Series 2002A, 5.500%, 4/01/32 (Mandatory put 4/01/22)
(Alternative Minimum Tax)
Pennsylvania Higher Educational Facilities Authority, Revenue
Bonds, Slippery Rock University Foundation Inc., Student Housing
Project, Series 2005A:
2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 AAA 2,174,052
3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 AAA 3,573,060
740 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 775,616
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
12,005 Total Housing/Multifamily 12,423,225
------------------------------------------------------------------------------------------------------------------------------------
55
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 5.6% (3.5% OF TOTAL INVESTMENTS)
$ 915 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa $ 946,595
GNMA Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32 (Alternative
Minimum Tax)
4,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 4,038,600
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
300 Pennsylvania Housing Finance Agency, Single Family Mortgage 6/08 at 101.50 AA+ 306,996
Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22 (Alternative
Minimum Tax)
1,410 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,438,553
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
3,300 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 3,396,360
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+ 1,336,409
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative
Minimum Tax)
Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage
Revenue Bonds, Series 1997A:
845 6.150%, 10/01/16 (Alternative Minimum Tax) 10/07 at 102.00 AAA 852,554
765 6.200%, 10/01/21 (Alternative Minimum Tax) 10/07 at 102.00 AAA 781,034
------------------------------------------------------------------------------------------------------------------------------------
12,890 Total Housing/Single Family 13,097,101
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 3.1% (1.9% OF TOTAL INVESTMENTS)
2,000 New Morgan Industrial Development Authority, Pennsylvania, Solid 10/07 at 100.00 BB- 2,010,120
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 A3 2,140,980
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%,
11/01/31 (Alternative Minimum Tax)
2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 2,985,318
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,750 Total Industrials 7,136,418
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 5.1% (3.2% OF TOTAL INVESTMENTS)
1,225 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 1,246,070
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 AA 1,033,140
Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/22
- RAAI Insured
Lancaster County Hospital Authority, Pennsylvania, Health Center
Revenue Bonds, Masonic Homes Project, Series 2006:
1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,620,683
620 5.000%, 11/01/36 11/16 at 100.00 A+ 639,158
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000:
1,000 6.150%, 12/01/20 - RAAI Insured 8/07 at 100.00 AA 1,001,690
2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,120,820
1,230 Pennsylvania Economic Development Financing Authority, Revenue 6/08 at 100.00 BB+ 1,205,363
Bonds, Northwestern Human Services Inc., Series 1998A, 5.250%,
6/01/28
Philadelphia Authority for Industrial Development, Pennsylvania,
Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A:
1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,374,017
1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,683,941
------------------------------------------------------------------------------------------------------------------------------------
11,640 Total Long-Term Care 11,924,882
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 2.8% (1.8% OF TOTAL INVESTMENTS)
1,190 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 1,210,801
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 528,145
Environmental Improvement Revenue Refunding Bonds, Series
2000B, 6.000%, 9/01/16 (Alternative Minimum Tax)
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS (continued)
$ 4,500 Pennsylvania Economic Development Financing Authority, Exempt 11/08 at 102.00 N/R $ 4,681,080
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,190 Total Materials 6,420,026
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 20.2% (12.7% OF TOTAL INVESTMENTS)
2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa 2,226,933
Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured
2,315 Delaware County, Pennsylvania, General Obligation Bonds, Series 10/15 at 100.00 AA 2,479,041
2005, 5.000%, 10/01/20
Harrisburg Redevelopment Authority, Dauphin County, Pennsylvania,
Guaranteed Revenue Bonds, Series 1998B:
1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 885,833
2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,356,548
2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,316,425
1,000 New Castle Area School District, Lawrence County, Pennsylvania, 3/10 at 100.00 AAA 1,051,210
General Obligation Bonds, Series 2000, 5.600%, 3/01/25 - MBIA
Insured
2,115 Owen J. Roberts School District, Chester County, Pennsylvania, 5/16 at 100.00 Aaa 2,260,047
General Obligation Bonds, Series 2006, 5.000%, 5/15/24 - FSA
Insured
Pennsylvania, General Obligation Bonds, Second Series 2005:
2,000 5.000%, 1/01/18 1/16 at 100.00 AA 2,158,120
1,900 5.000%, 1/01/19 1/16 at 100.00 AA 2,044,419
3,200 Pennsylvania, General Obligation Bonds, Series 2006-1, 5.000%, 10/16 at 100.00 AA 3,469,120
10/01/18
1,500 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 1,676,025
Bonds, Series 2007A, 5.000%, 6/01/34 (WI/DD, Settling 5/22/07)
- FGIC Insured
2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, Series 2006B, No Opt. Call AAA 2,983,257
5.250%, 9/01/16 - FSA Insured
6,710 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 2,256,305
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
State Public School Building Authority, Berkes County,
Pennsylvania, School Revenue Bonds, Brandywine Heights Area
School District, Series 2003:
2,930 5.000%, 2/01/20 - FGIC Insured 2/13 at 100.00 Aaa 3,106,093
1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,072,496
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AAA 389,718
490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 525,927
2,550 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 2,508,359
Revenue Bonds, York City School District, Series 2003, 4.000%,
5/01/21 - FSA Insured
1,535 Stroudsburg Area School District, Monroe County, Pennsylvania, 4/12 at 100.00 AAA 1,617,245
General Obligation Bonds, Series 2001A, 5.000%, 4/01/19 - FSA
Insured
8,900 West Chester Area School District, Chester and Delaware Counties, 8/16 at 100.00 Aaa 8,970,132
Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%,
2/15/26 - FSA Insured (UB)
1,400 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 1,516,186
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
52,930 Total Tax Obligation/General 46,869,439
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 17.2% (10.9% OF TOTAL INVESTMENTS)
1,500 Erie County Convention Center Authority, Pennsylvania, Convention 1/15 at 100.00 AAA 1,577,730
Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC
Insured
Pennsylvania Turnpike Commission, Oil Franchise Tax Revenue Bonds,
Series 2006B:
6,780 4.750%, 12/01/30 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,020,080
7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,888,978
1,700 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 1,886,286
Series 2005A, 5.250%, 7/15/16 - FSA Insured
57
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 7,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA $ 7,522,745
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
7,000 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 8,332,239
Bonds, Series 2007N, 5.500%, 7/01/29 - AMBAC Insured
2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 959,962
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
2,405 Puerto Rico, Highway Revenue Bonds, Highway and Transportation No Opt. Call AAA 2,761,036
Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured
York County School of Technology Authority, Pennsylvania, Lease
Revenue Bonds, Series 2003:
1,000 5.375%, 2/15/20 - FGIC Insured 2/13 at 100.00 Aaa 1,080,320
1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,081,090
------------------------------------------------------------------------------------------------------------------------------------
38,905 Total Tax Obligation/Limited 40,110,466
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 20.0% (12.6% OF TOTAL INVESTMENTS)
2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding Bonds, 1/08 at 101.00 AAA 2,340,227
Pittsburgh International Airport, Series 1997A, 5.250%, 1/01/16
- MBIA Insured (Alternative Minimum Tax)
650 Delaware River Joint Toll Bridge Commission, Pennsylvania and New 7/13 at 100.00 A2 693,082
Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
4,600 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 A 4,992,932
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, Series 12/11 at 101.00 AAA 3,745,456
2001R, 5.000%, 12/01/30 - AMBAC Insured
2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 6/16 at 100.00 AAA 2,866,582
2006A, 5.000%, 12/01/24 - AMBAC Insured
3,250 Philadelphia Airport System, Pennsylvania, Airport Revenue Bonds, 6/15 at 100.00 AAA 3,298,003
Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative
Minimum Tax)
10,000 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 10,469,498
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 Authority, 6/07 at 100.00 Aaa 6,532,243
Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.350%,
12/01/26 - AMBAC Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,129,840
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
2,355 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AAA 2,467,357
Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured
6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 6,955,538
Airport System Revenue Bonds, Series 2003B, 5.000%, 1/01/33 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
44,635 Total Transportation 46,490,758
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 22.4% (14.1% OF TOTAL INVESTMENTS) (4)
1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 1,808,141
Revenue Bonds, Series 2000, 5.500%, 12/01/30 (Pre-refunded
12/01/10) - MBIA Insured
Butler County, Pennsylvania, General Obligation Bonds, Series
2003:
1,000 5.250%, 7/15/21 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,084,350
1,200 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,301,220
2,110 Fayette County, Pennsylvania, General Obligation Bonds, Series 11/10 at 100.00 AAA 2,244,702
2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) - AMBAC Insured
2,425 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (4) 2,629,476
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
58
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED (4) (continued)
Norristown Area School District, Montgomery County, Pennsylvania,
General Obligation Bonds, Series 2003:
$ 1,000 5.000%, 9/01/20 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa $ 1,066,820
2,000 5.000%, 9/01/22 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,133,640
2,270 5.000%, 9/01/23 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,421,681
2,600 5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,773,732
1,110 North Hills School District, Allegheny County, Pennsylvania, 12/15 at 100.00 AAA 1,207,636
General Obligation Bonds, Series 2005, 5.000%, 12/15/20
(Pre-refunded 12/15/15) - FSA Insured
1,140 Pennsylvania Higher Educational Facilities Authority, College No Opt. Call Aaa 1,290,605
Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM)
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,589,025
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
3,905 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (4) 4,151,015
Bonds, Thomas Jefferson University, Series 2002, 5.000%,
1/01/32 (Pre-refunded 1/01/13)
2,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien 12/13 at 100.00 AAA 2,177,840
Revenue Bonds, Series 2003A, 5.250%, 12/01/18
(Pre-refunded 12/01/13) - MBIA Insured
5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/09 at 101.00 AAA 5,962,750
Ordinance, Second Series 1999, 5.000%, 7/01/29 (Pre-refunded
7/01/09) - FSA Insured
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Presbyterian Medical Center
of Philadelphia, Series 1993:
1,000 6.500%, 12/01/11 (ETM) No Opt. Call AAA 1,067,110
3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,512,534
1,015 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) 1,118,814
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,331,030
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
State Public School Building Authority, Pennsylvania, School
Revenue Bonds, Conneaut School District, Series 2003:
640 5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 696,288
865 5.250%, 11/01/22 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 941,077
2,500 West Cornwall Township Municipal Authority, Pennsylvania, College 12/11 at 100.00 BBB+ (4) 2,725,600
Revenue Bonds, Elizabethtown College Project, Series 2001,
5.900%, 12/15/18 (Pre-refunded 12/15/11)
1,455 West View Borough Municipal Authority, Allegheny County, No Opt. Call Aaa 1,784,834
Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%,
11/15/14
1,000 Wilkes-Barre Area School District, Luzerne County, Pennsylvania, 4/14 at 100.00 AAA 1,090,960
General Obligation Bonds, Series 2003A, 5.250%, 4/01/19
(Pre-refunded 4/01/14) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
47,970 Total U.S. Guaranteed 52,110,880
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 11.7% (7.4% OF TOTAL INVESTMENTS)
1,125 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 1,163,171
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,254,399
Exempt Facilities Revenue Bonds, Shippingport Project, Series
1998A, 5.375%, 6/01/28 - AMBAC Insured (Alternative Minimum
Tax)
2,280 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,370,037
Resource Recovery Revenue Refunding Bonds, Panther Creek
Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative
Minimum Tax)
59
Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES (continued)
$ 7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/07 at 102.00 AAA $ 7,753,108
Pollution Control Revenue Bonds, Metropolitan Edison Company,
Series 1997A, 5.950%, 5/01/27 - AMBAC Insured (Alternative
Minimum Tax)
2,000 Indiana County Industrial Development Authority, Pennsylvania, 6/12 at 101.00 Baa1 2,100,060
Pollution Control Revenue Refunding Bonds, PSEG Power LLC,
Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax)
2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,206,911
Pollution Control Revenue Bonds, Pennsylvania Power and Light
Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured
1,530 Montgomery County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 1,655,384
Resource Recovery Revenue Refunding Bonds, Montgomery County
Montenay Project, Series 2002A, 5.250%, 11/01/13 - MBIA Insured
700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 735,679
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,083,840
General Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
26,375 Total Utilities 27,322,589
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 10.4% (6.5% OF TOTAL INVESTMENTS)
305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 324,145
Revenue Bonds, Series 2000, 5.500%, 12/01/30 - MBIA Insured
2,500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,668,050
Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA 4,238,360
Water Facility Revenue Bonds, Pennsylvania Suburban Water
Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured
(Alternative Minimum Tax)
1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,744,394
Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%,
5/01/23 - MBIA Insured
2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 2,127,920
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage Revenue 4/14 at 100.00 AAA 1,396,201
Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured
3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,558,475
Water Facility Revenue Bonds, Consumers Water Company, Shenango
Valley Division Project, Series 2000, 6.000%, 7/01/30 - MBIA
Insured (Alternative Minimum Tax)
Norristown Municipal Waste Authority, Pennsylvania, Sewer Revenue
Bonds, Series 2003:
1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 Aaa 1,206,907
2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,680,788
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER (continued)
$ 2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, 7/15 at 100.00 AAA $ 2,121,640
Series 2005A, 5.000%, 7/01/23 - FSA Insured
2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,103,620
Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,770 Total Water and Sewer 24,170,500
------------------------------------------------------------------------------------------------------------------------------------
$ 361,555 Total Investments (cost $354,290,820) - 158.8% 369,496,324
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.7)% (22,585,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 3,838,634
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (50.8)% (118,100,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 232,649,958
=====================================================================================================================
FORWARD SWAPS OUTSTANDING AT APRIL 30, 2007:
FUND FIXED RATE
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY
-------------------------------------------------------------------------------------------------
Morgan Stanley $4,500,000 Receive 3-Month USD-LIBOR 5.073% Semi-Annually
=================================================================================================
UNREALIZED
EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY DATE (5) DATE (DEPRECIATION)
---------------------------------------------------------
Morgan Stanley 12/03/07 6/01/32 $181,467
=========================================================
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Effective date represents the date on which both the Fund and
counterparty commence interest payment accruals on each forward swap
contract.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
DD1 Portion of investment purchased on a delayed delivery basis.
(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 ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
61
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM)
Portfolio of
INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONSUMER STAPLES - 2.2% (1.5% OF TOTAL INVESTMENTS)
$ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,127,850
Waste Disposal Revenue Bonds, Procter & Gamble Paper Project,
Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 29.3% (19.6% OF TOTAL
INVESTMENTS)
100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 116,278
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 236,412
Pennsylvania, Revenue Bonds, Robert Morris University, Series
2006A, 4.750%, 2/15/26
2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 Aaa 2,350,575
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 720,461
Pennsylvania, Revenue Bonds, Immaculata University, Series
2005, 5.500%, 10/15/25
1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 1,055,170
Refunding Bonds, Neumann College, Series 2001, 6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 316,078
145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 155,128
300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 295,977
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
1,000 Montgomery County Industrial Development Authority, Pennsylvania, 8/15 at 100.00 Aaa 1,061,580
Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/27 - MBIA
Insured
1,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aaa 1,055,600
Revenue Bonds, State System of Higher Education, Series 2002W,
5.000%, 6/15/19 - AMBAC Insured
220 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 224,360
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,564,635
Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI
Insured
700 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 751,240
Bonds, Temple University, First Series of 2006, 5.000%,
4/01/21 - MBIA Insured
350 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 375,918
Bonds, Thomas Jefferson University, Series 2002, 5.500%,
1/01/16
3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,283,200
Bonds, Series 2002, 5.250%, 8/15/14
105 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 108,902
Revenue Bonds, Franklin Towne Charter High School, Series
2006A, 5.250%, 1/01/27
470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/13 at 102.00 BBB- 472,895
Revenue Bonds, Leadership Learning Partners, Series 2005A,
5.375%, 7/01/36
230 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 233,876
Revenue Bonds, Richard Allen Preparatory Charter School,
Series 2006, 6.250%, 5/01/33
565 Swarthmore Boro Authority, Pennsylvania, College Revenue Bonds, 9/16 at 100.00 Aaa 601,279
Swarthmore College, Series 2006A, 5.000%, 9/15/30
------------------------------------------------------------------------------------------------------------------------------------
14,165 Total Education and Civic Organizations 14,979,564
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 19.7% (13.2% OF TOTAL INVESTMENTS)
260 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 266,622
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
400 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 Ba3 472,320
Revenue Bonds, West Penn Allegheny Health System, Series 2000B,
9.250%, 11/15/30
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 700 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB+ $ 727,118
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,500 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,553,400
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
230 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 238,986
Hospital Revenue Bonds, Fulton County Medical Center Project,
Series 2006, 5.900%, 7/01/40
110 Jeannette Health Services Authority, Pennsylvania, Hospital 5/07 at 101.50 BB- 110,296
Revenue Bonds, Jeannette District Memorial Hospital, Series
1996A, 6.000%, 11/01/18
200 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 196,874
Revenue Bonds, The Lancaster General Hospital Project, Series
2007B, 4.500%, 3/15/36
250 Lehigh County General Purpose Authority, Pennsylvania, Revenue 11/14 at 100.00 A 265,035
Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24
2,150 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 2,321,420
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Children's Hospital of
Philadelphia, Series 2007:
500 4.500%, 7/01/33 7/17 at 100.00 AA 495,790
500 4.500%, 7/01/37 7/17 at 100.00 AA 493,065
70 Philadelphia Hospitals and Higher Education Facilities Authority, 7/07 at 100.00 BBB 70,183
Pennsylvania, Hospital Revenue Bonds, Temple University
Hospital, Series 1993A, 6.625%, 11/15/23
25 Pottsville Hospital Authority, Pennsylvania, Hospital Revenue 7/08 at 100.00 BB+ 25,019
Bonds, Pottsville Hospital and Warne Clinic, Series 1998,
5.625%, 7/01/24
1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,058,790
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 801,900
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of
the Sisters of Christian Charity Project, Series 2001, 6.250%,
1/01/32
------------------------------------------------------------------------------------------------------------------------------------
9,645 Total Health Care 10,096,818
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS)
700 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 735,630
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
100 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 104,813
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
800 Total Housing/Multifamily 840,443
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 7.4% (5.0% OF TOTAL INVESTMENTS)
1,535 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,569,184
GNMA Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1998DD-2, 5.400%, 11/01/29 (Alternative
Minimum Tax)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,009,650
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
495 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 505,024
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
700 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 720,440
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,730 Total Housing/Single Family 3,804,298
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 6.8% (4.6% OF TOTAL INVESTMENTS)
2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A3 2,140,980
Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%,
11/01/31 (Alternative Minimum Tax)
1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,356,963
Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
3,250 Total Industrials 3,497,943
------------------------------------------------------------------------------------------------------------------------------------
63
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 12.5% (8.3% OF TOTAL INVESTMENTS)
$ 265 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R $ 269,558
Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%,
1/01/36
285 Lancaster County Hospital Authority, Pennsylvania, Health Center 11/16 at 100.00 A+ 293,807
Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%,
11/01/36
2,100 Lancaster County Hospital Authority, Pennsylvania, Health Center 12/11 at 100.00 A- 2,224,152
Revenue Bonds, Willow Valley Retirement Communities Project,
Series 2001, 5.875%, 6/01/31
285 Lebanon County Health Facilities Authority, Pennsylvania, Health 12/14 at 100.00 N/R 290,800
Center Revenue Bonds, Pleasant View Retirement Community,
Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Northwestern Human Services Inc., Series 1998A:
240 5.250%, 6/01/14 6/08 at 100.00 BB+ 240,338
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,643
2,875 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 3,011,678
Revenue Bonds, Philadelphia Corporation for the Aging Project,
Series 2001B, 5.250%, 7/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,100 Total Long-Term Care 6,379,976
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.2% (2.8% OF TOTAL INVESTMENTS)
350 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Baa3 372,061
Revenue Bonds, United States Steel Corporation, Series 2005,
5.500%, 11/01/16
210 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 213,671
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum
Tax)
750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 795,270
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, Exempt 11/08 at 102.00 N/R 780,180
Facilities Revenue Bonds, National Gypsum Company, Series
1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,060 Total Materials 2,161,182
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 14.3% (9.5% OF TOTAL INVESTMENTS)
300 Pennsylvania, General Obligation Bonds, Series 2006-1, 5.000%, 10/16 at 100.00 AA 325,230
10/01/18
375 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 419,006
Bonds, Series 2007A, 5.000%, 6/01/34 (WI/DD, Settling 5/22/07)
- FGIC Insured
3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,324,086
General Obligation Refunding Bonds, Series 2002A, 5.500%,
9/01/14 - FSA Insured
450 Pittsburgh, Pennsylvania, General Obligation Bonds, Series 2006B, No Opt. Call AAA 497,210
5.250%, 9/01/16 - FSA Insured
2,220 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 746,497
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
1,960 West Chester Area School District, Chester and Delaware Counties, 8/16 at 100.00 Aaa 1,975,445
Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%,
2/15/26 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
8,305 Total Tax Obligation/General 7,287,474
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 13.1% (8.8% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 1,064,430
Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%,
7/01/23
450 Erie County Convention Center Authority, Pennsylvania, Convention 1/15 at 100.00 AAA 473,319
Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured
1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 1,120,120
Series 2005A, 5.250%, 7/15/18 - FSA Insured
1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,072,380
Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured
1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,613,880
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A, 5.500%, 4/15/19 - FGIC Insured
750 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 877,575
Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA $ 209,992
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
250 Washington County Redevelopment Authority, Pennsylvania, Tanger 7/17 at 100.00 N/R 257,358
Outlet Victory Center Tax Increment Bonds, Series 2006A,
5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
6,580 Total Tax Obligation/Limited 6,689,054
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 11.2% (7.5% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 138,616
New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 A 1,085,420
Bonds, Amtrak 30th Street Station Parking Garage, Series 2002,
5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax)
420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 449,240
Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
1,750 Philadelphia Authority for Industrial Development, Pennsylvania, 7/11 at 101.00 AAA 1,832,163
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 Authority, 6/07 at 100.00 Aaa 2,212,519
Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.375%,
12/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,510 Total Transportation 5,717,958
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 18.7% (12.5% OF TOTAL INVESTMENTS) (4)
2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,614,962
General Obligation Bonds, Series 2002, 5.500%, 5/15/18
(Pre-refunded 5/15/12) - FGIC Insured
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R (4) 1,158,960
Community Revenue Bonds, Wesley Affiliated Services Inc.,
Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13)
600 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (4) 650,592
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,192,295
General Obligation Bonds, Series 2001A, 5.500%, 2/15/17
(Pre-refunded 2/15/12) - FGIC Insured
740 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (4) 805,349
Bonds, Thomas Jefferson University, Series 2002, 5.500%,
1/01/16 (Pre-refunded 1/01/13)
170 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 202,808
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,729,550
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
170 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) 187,388
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
8,700 Total U.S. Guaranteed 9,541,904
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 6.1% (4.1% OF TOTAL INVESTMENTS)
500 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 516,965
Pollution Control Revenue Refunding Bonds, Duquesne Light
Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured
285 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 B2 313,831
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 147,136
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fourth Series 1998:
1,000 5.250%, 8/01/18 - FSA Insured 8/13 at 100.00 AAA 1,068,430
1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,067,860
------------------------------------------------------------------------------------------------------------------------------------
2,925 Total Utilities 3,114,222
------------------------------------------------------------------------------------------------------------------------------------
65
Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 2.3% (1.5% OF TOTAL INVESTMENTS)
$ 500 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA $ 533,610
Pennsylvania, Guaranteed Water RevenueBonds, Series 2004,
5.000%, 11/15/20 - FSA Insured
600 Harrisburg Authority, Dauphin County, Pennsylvania, Water Revenue 7/14 at 100.00 AAA 638,376
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
1,100 Total Water and Sewer 1,171,986
------------------------------------------------------------------------------------------------------------------------------------
$ 73,870 Total Investments (cost $72,553,314) - 149.4% 76,410,672
============------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.6)% (1,305,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 1,054,432
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (48.9)% (25,000,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 51,160,104
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(UB) Underlying bond of an inverse floating rate trust reflected as a
financing transaction pursuant to the provisions of SFAS No. 140.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
66
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
EDUCATION AND CIVIC ORGANIZATIONS - 15.1% (9.9% OF TOTAL INVESTMENTS)
$ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 1,162,780
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 823,384
Pennsylvania, Revenue Bonds, Immaculata University,
Series 2005, 5.500%, 10/15/25
325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB- 342,930
Refunding Bonds, Neumann College, Series 2001, 6.000%, 10/01/31
Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova
University, Series 2006:
340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 364,293
165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 176,525
1,435 Delaware County Authority, Pennsylvania, Revenue Refunding Bonds, 8/13 at 100.00 AAA 1,553,402
Villanova University, Series 2003, 5.250%, 8/01/17 - FGIC
Insured
450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 443,966
Pennsylvania, Revenue Bonds, Arcadia University, Series 2006,
4.500%, 4/01/30 - RAAI Insured
285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 290,649
Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31
800 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 858,560
Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21
- MBIA Insured
115 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 119,273
Revenue Bonds, Franklin Towne Charter High School, Series
2006A, 5.250%, 1/01/27
530 Philadelphia Authority for Industrial Development, Pennsylvania, 1/13 at 102.00 BBB- 533,265
Revenue Bonds, Leadership Learning Partners, Series 2005A,
5.375%, 7/01/36
270 Philadelphia Authority for Industrial Development, Pennsylvania, 5/16 at 100.00 BB+ 274,550
Revenue Bonds, Richard Allen Preparatory Charter School, Series
2006, 6.250%, 5/01/33
565 Swarthmore Boro Authority, Pennsylvania, College Revenue Bonds, 9/16 at 100.00 Aaa 601,279
Swarthmore College, Series 2006A, 5.000%, 9/15/30
1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,077,010
Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A,
5.250%, 4/01/20
------------------------------------------------------------------------------------------------------------------------------------
8,080 Total Education and Civic Organizations 8,621,866
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE - 16.7% (10.9% OF TOTAL INVESTMENTS)
295 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 302,514
Revenue Bonds, Ohio Valley General Hospital, Series 2005A,
5.125%, 4/01/35
Allegheny County Hospital Development Authority, Pennsylvania,
Revenue Bonds, West Penn
Allegheny Health System, Series 2000B:
100 9.250%, 11/15/22 11/10 at 102.00 Ba3 117,891
300 9.250%, 11/15/30 11/10 at 102.00 Ba3 354,240
800 Allentown Area Hospital Authority, Pennsylvania, Revenue Bonds, No Opt. Call BB+ 830,992
Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16
2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,042,720
Pennsylvania, Health System Revenue Bonds, Jefferson Health
System, Series 1997B, 5.375%, 5/15/27
270 Fulton County, Pennsylvania, Industrial Development Authority 7/16 at 100.00 N/R 280,549
Hospital Revenue Bonds, Fulton County Medical Center Project,
Series 2006, 5.900%, 7/01/40
120 Jeannette Health Services Authority, Pennsylvania, Hospital 5/07 at 101.50 BB- 120,323
Revenue Bonds, Jeannette District Memorial Hospital, Series
1996A, 6.000%, 11/01/18
200 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 196,874
Revenue Bonds, The Lancaster General Hospital Project, Series
2007B, 4.500%, 3/15/36
67
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
HEALTH CARE (continued)
$ 70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 $ 75,581
Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31
Philadelphia Hospitals and Higher Education Facilities Authority,
Pennsylvania, Hospital Revenue Bonds, Children's Hospital of
Philadelphia, Series 2007:
500 4.500%, 7/01/33 7/17 at 100.00 AA 495,790
1,500 4.500%, 7/01/37 (DD1, Settling 5/01/07) 7/17 at 100.00 AA 1,479,195
1,000 Philadelphia Hospitals and Higher Education Facilities Authority, 7/07 at 100.00 BBB 1,002,610
Pennsylvania, Hospital Revenue Bonds, Temple University
Hospital, Series 1993A, 6.625%, 11/15/23
1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,580,877
Bonds, Monongahela Valley Hospital Project, Series 2002,
6.250%, 6/01/22
West Shore Area Hospital Authority, Cumberland County,
Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the
Sisters of Christian Charity Project, Series 2001:
25 6.150%, 1/01/21 1/12 at 100.00 BBB 26,622
600 6.250%, 1/01/32 1/12 at 100.00 BBB 641,520
------------------------------------------------------------------------------------------------------------------------------------
9,230 Total Health Care 9,548,298
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/MULTIFAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS)
800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 840,720
Bonds, Slippery Rock University Foundation Inc., Student
Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured
120 Philadelphia Authority for Industrial Development, Pennsylvania, 5/15 at 102.00 Baa2 125,776
Multifamily Housing Revenue Bonds, Presbyterian Homes
Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
920 Total Housing/Multifamily 966,496
------------------------------------------------------------------------------------------------------------------------------------
HOUSING/SINGLE FAMILY - 6.1% (4.0% OF TOTAL INVESTMENTS)
1,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,009,650
Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative
Minimum Tax)
565 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 576,441
Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative
Minimum Tax)
800 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 823,360
Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative
Minimum Tax)
1,100 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,084,908
Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,465 Total Housing/Single Family 3,494,359
------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIALS - 5.7% (3.7% OF TOTAL INVESTMENTS)
3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,269,970
Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
LONG-TERM CARE - 4.3% (2.8% OF TOTAL INVESTMENTS)
1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,242,780
Revenue Bonds, Pennswood Village Project, Series 2002A, 6.000%,
10/01/34
300 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 305,160
Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%,
1/01/36
305 Lancaster County Hospital Authority, Pennsylvania, Health Center 11/16 at 100.00 A+ 314,425
Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%,
11/01/36
285 Lebanon County Health Facilities Authority, Pennsylvania, Health 12/14 at 100.00 N/R 290,800
Center Revenue Bonds, Pleasant View Retirement Community,
Series 2005A, 5.300%, 12/15/26
Pennsylvania Economic Development Financing Authority, Revenue
Bonds, Northwestern Human Services Inc., Series 1998A:
260 5.250%, 6/01/14 6/08 at 100.00 BB+ 260,367
50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,643
------------------------------------------------------------------------------------------------------------------------------------
2,355 Total Long-Term Care 2,463,175
------------------------------------------------------------------------------------------------------------------------------------
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MATERIALS - 4.5% (2.9% OF TOTAL INVESTMENTS)
$ 400 Allegheny County Industrial Development Authority, Pennsylvania, No Opt. Call Baa3 $ 425,212
Revenue Bonds, United States Steel Corporation, Series 2005,
5.500%, 11/01/16
280 Bradford County Industrial Development Authority, Pennsylvania, 12/15 at 100.00 BBB 284,894
Solid Waste Disposal Revenue Bonds, International Paper
Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum
Tax)
1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 1,060,360
Environmental Improvement Revenue Bonds, USX Corporation
Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11)
750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 780,180
Exempt Facilities Revenue Bonds, National Gypsum Company,
Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,430 Total Materials 2,550,646
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/GENERAL - 23.2% (15.3% OF TOTAL INVESTMENTS)
1,740 Butler County, Pennsylvania, Butler Area School District, General 10/12 at 100.00 AAA 1,859,851
Obligation Bonds, Series 2002A, 5.375%, 10/01/26 - FGIC Insured
625 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 669,288
Series 2005, 5.000%, 10/01/20
4,000 Delaware Valley Regional Finance Authority, Pennsylvania, Local No Opt. Call AA- 4,547,680
Government Revenue Bonds, Series 2002, 5.750%, 7/01/17
Greensburg Salem School District, Westmoreland County,
Pennsylvania, General Obligation Refunding Bonds, Series 2002:
725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 781,949
1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,078,550
375 Philadelphia School District, Pennsylvania, General Obligation No Opt. Call AAA 419,006
Bonds, Series 2007A, 5.000%, 6/01/34 (WI/DD, Settling 5/22/07)
- FGIC Insured
300 Pittsburgh, Pennsylvania, General Obligation Bonds, Series 2006B, No Opt. Call AAA 331,473
5.250%, 9/01/16 - FSA Insured
2,510 Reading School District, Berks County, Pennsylvania, General No Opt. Call AAA 844,013
Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured
2,200 West Chester Area School District, Chester and Delaware Counties, 8/16 at 100.00 Aaa 2,217,336
Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%,
2/15/26 - FSA Insured (UB)
500 Woodland Hills School District, Allegheny County, Pennsylvania, 9/15 at 100.00 AAA 541,495
General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
13,975 Total Tax Obligation/General 13,290,641
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED - 26.5% (17.3% OF TOTAL INVESTMENTS)
1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 1,064,430
Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%,
7/01/23
2,000 Grove City Area Hospital Authority, Mercer County, Pennsylvania, 3/12 at 100.00 AAA 2,107,600
Revenue Bonds, County Guaranteed, Woodland Place Project,
Series 2002, 5.400%, 3/01/31 - FGIC Insured
4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed Revenue 9/11 at 100.00 Aaa 4,168,920
Refunding Bonds, Series 2001J, 5.000%, 9/01/22 - MBIA Insured
1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, No Opt. Call AAA 1,344,144
Series 2005A, 5.250%, 7/15/18 - FSA Insured
2,000 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 2,100,400
Lease Revenue Bonds, Series 2001B, 5.125%, 10/01/26 - FSA
Insured
Philadelphia Redevelopment Authority, Pennsylvania, Revenue
Bonds, Philadelphia Neighborhood Transformation Initiative,
Series 2002A:
1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AAA 1,075,920
1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,874,285
800 Puerto Rico Highway and Transportation Authority, Highway Revenue No Opt. Call AAA 936,080
Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured
710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 236,657
Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured
69
Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued)
Portfolio of INVESTMENTS April 30, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TAX OBLIGATION/LIMITED (continued)
$ 250 Washington County Redevelopment Authority, Pennsylvania, Tanger 7/17 at 100.00 N/R $ 257,358
Outlet Victory Center Tax Increment Bonds, Series 2006A,
5.450%, 7/01/35
------------------------------------------------------------------------------------------------------------------------------------
14,710 Total Tax Obligation/Limited 15,165,794
------------------------------------------------------------------------------------------------------------------------------------
TRANSPORTATION - 5.2% (3.4% OF TOTAL INVESTMENTS)
130 Delaware River Joint Toll Bridge Commission, Pennsylvania and New 7/13 at 100.00 A2 138,616
Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17
1,000 Pennsylvania Economic Development Financing Authority, Revenue 6/12 at 102.00 A 1,085,420
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, Series 6/16 at 100.00 AAA 716,645
2006A, 5.000%, 12/01/24 - AMBAC Insured
1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa 1,032,800
Airport System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 -
AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
2,800 Total Transportation 2,973,481
------------------------------------------------------------------------------------------------------------------------------------
U.S. GUARANTEED - 26.6% (17.3% OF TOTAL INVESTMENTS) (4)
2,000 Adams County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 AAA 2,135,120
2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) - FGIC Insured
1,000 Cumberland County Municipal Authority, Pennsylvania, Retirement 1/13 at 101.00 N/R (4) 1,158,960
Community Revenue Bonds, Wesley Affiliated Services Inc.,
Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13)
600 Lehigh County General Purpose Authority, Pennsylvania, Hospital 8/13 at 100.00 Baa1 (4) 650,592
Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003,
5.375%, 8/15/33 (Pre-refunded 8/15/13)
1,100 Luzerne County, Pennsylvania, General Obligation Bonds, Series 11/12 at 57.97 Aaa 517,363
2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) - MBIA Insured
1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 101.00 AAA 1,589,025
Bonds, Temple University, Series 2001, 5.000%, 7/15/31
(Pre-refunded 7/15/11) - MBIA Insured
2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue Bonds, 7/11 at 101.00 AAA 3,176,683
Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) - AMBAC
Insured
70 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call AAA 83,509
Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM)
2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,156,820
Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12)
- FSA Insured
3,170 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,461,069
Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) -
FGIC Insured
225 St. Mary Hospital Authority, Pennsylvania, Health System Revenue 11/14 at 100.00 A1 (4) 248,013
Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34
(Pre-refunded 11/15/14)
------------------------------------------------------------------------------------------------------------------------------------
14,610 Total U.S. Guaranteed 15,177,154
------------------------------------------------------------------------------------------------------------------------------------
UTILITIES - 5.4% (3.5% OF TOTAL INVESTMENTS)
315 Pennsylvania Economic Development Financing Authority, Exempt 12/09 at 103.00 B2 346,865
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 152,391
Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured
2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,582,285
Ordinance, Fourth Series 1998, 5.250%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
2,880 Total Utilities 3,081,541
------------------------------------------------------------------------------------------------------------------------------------
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WATER AND SEWER - 9.5% (6.2% OF TOTAL INVESTMENTS)
$ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AAA $ 4,768,153
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 Revenue 7/14 at 100.00 AAA 638,376
Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,100 Total Water and Sewer 5,406,529
------------------------------------------------------------------------------------------------------------------------------------
$ 83,555 Total Long-Term Investments (cost $81,782,339) - 150.5% 86,009,950
============------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.6% (1.7% OF TOTAL INVESTMENTS)
$ 1,500 Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 1,500,000
Bonds, Variable Rate Demand Obligations, Series 1985, 3.710%,
12/01/15 - MBIA Insured (5)
============------------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $1,500,000) 1,500,000
---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $83,282,339) - 153.1% 87,509,950
---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (2.6)% (1,460,000)
---------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.6)% (408,170)
---------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.9)% (28,500,000)
---------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 57,141,780
=====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's or Moody's
rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's
Investor Service, Inc. are considered to be below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or
U.S. Government agency securities which ensure the timely payment of
principal and interest. Such investments are normally considered to be
equivalent to AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate
and demand features which qualify it as a short-term investment. The
rate disclosed is that in effect at the end of the reporting period.
This rate changes periodically based on market conditions or a specified
market index.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
DD1 Portion of investment purchased on a delayed delivery basis.
(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 ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
71
Statement of
ASSETS AND LIABILITIES April 30, 2007
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 $444,410,314, $260,069,089,
$139,428,202 and $97,503,668, respectively) $ 461,448,959 $ 270,909,799 $ 145,261,135 $ 102,219,372
Cash -- 142,317 -- --
Receivables:
Interest 7,219,693 3,974,571 2,189,167 1,604,469
Investments sold 920,000 350,000 100,000 110,000
Unrealized appreciation on forward swaps 2,853 984 590 295
Other assets 44,309 31,975 663 526
----------------------------------------------------------------------------------------------------------------------------------
Total assets 469,635,814 275,409,646 147,551,555 103,934,662
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 793,420 -- 228,091 118,699
Floating rate obligations -- -- -- --
Payable for investments purchased -- -- -- --
Unrealized depreciation on forward swaps -- -- -- --
Accrued expenses:
Management fees 237,551 141,160 52,087 32,594
Other 124,589 86,093 39,317 30,996
Preferred share dividends payable 78,335 42,884 29,450 14,607
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,233,895 270,137 348,945 196,896
----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 306,401,919 $ 183,539,509 $ 99,202,610 $ 69,237,766
==================================================================================================================================
Common shares outstanding 20,484,322 12,049,496 6,574,810 4,521,576
==================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 14.96 $ 15.23 $ 15.09 $ 15.31
==================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,748 $ 45,216
Paid-in surplus 289,027,855 172,022,510 93,357,777 64,133,317
Undistributed (Over-distribution of) net investment income (309,186) 44,669 (171,723) (128,820)
Accumulated net realized gain (loss) from investments and
derivative transactions 436,909 510,141 117,285 472,054
Net unrealized appreciation (depreciation) of
investments 17,041,498 10,841,694 5,833,523 4,715,999
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 306,401,919 $ 183,539,509 $ 99,202,610 $ 69,237,766
==================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 Unlimited Unlimited
Preferred 1,000,000 1,000,000 Unlimited Unlimited
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
72
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $385,607,188, $354,290,820,
$72,553,314 and $83,282,339, respectively) $ 403,376,032 $ 369,496,324 $ 76,410,672 $ 87,509,950
Cash -- -- 286,183 --
Receivables:
Interest 5,823,960 5,714,331 1,170,184 1,094,726
Investments sold 9,608,451 20,290,700 1,248,001 1,310,088
Unrealized appreciation on forward swaps -- 181,467 -- --
Other assets 43,950 37,118 414 442
----------------------------------------------------------------------------------------------------------------------------------
Total assets 418,852,393 395,719,940 79,115,454 89,915,206
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 376,957 11,284,314 -- 28,039
Floating rate obligations 28,715,000 22,585,000 1,305,000 1,460,000
Payable for investments purchased 9,418,225 10,807,550 1,580,350 2,707,766
Unrealized depreciation on forward swaps 340,646 -- -- --
Accrued expenses:
Management fees 193,267 178,802 27,062 26,919
Other 101,439 71,966 27,115 29,931
Preferred share dividends payable 63,189 42,350 15,823 20,771
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 39,208,723 44,969,982 2,955,350 4,273,426
----------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 247,643,670 $ 232,649,958 $ 51,160,104 $ 57,141,780
==================================================================================================================================
Common shares outstanding 16,301,498 15,826,751 3,330,738 3,725,183
==================================================================================================================================
Net asset value per Common share outstanding
(net assets applicable to Common shares,
divided by Common shares outstanding) $ 15.19 $ 14.70 $ 15.36 $ 15.34
==================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 163,015 $ 158,268 $ 33,307 $ 37,252
Paid-in surplus 230,741,367 216,526,365 47,280,611 52,803,302
Undistributed (Over-distribution of) net investment income (393,373) (377,624) (100,466) (109,173)
Accumulated net realized gain (loss) from investments and
derivative transactions (295,537) 955,978 89,294 182,788
Net unrealized appreciation (depreciation) of
investments 17,428,198 15,386,971 3,857,358 4,227,611
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 247,643,670 $ 232,649,958 $ 51,160,104 $ 57,141,780
==================================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited Unlimited
Preferred Unlimited Unlimited Unlimited Unlimited
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
73
Statement of
OPERATIONS
NEW JERSEY INVESTMENT NEW JERSEY PREMIUM
QUALITY (NQJ) INCOME (NNJ)
--------------------------------- ----------------------------------
FOR THE YEAR FOR THE YEAR
TEN MONTHS ENDED ENDED TEN MONTHS ENDED ENDED
4/30/07 6/30/06 4/30/07 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 18,472,143 $ 22,346,450 $ 10,756,827 $ 12,975,406
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,417,728 2,932,222 1,436,793 1,748,294
Preferred shares - auction fees 337,315 405,718 190,730 229,274
Preferred shares - dividend disbursing agent fees 24,986 30,000 24,986 26,603
Shareholders' servicing agent fees and expenses 32,257 49,124 19,269 28,931
Floating rate obligations interest expense and fees -- -- -- --
Custodian's fees and expenses 88,947 125,950 71,223 72,367
Directors'/Trustees' fees and expenses 9,401 9,704 5,338 4,979
Professional fees 25,831 26,665 18,830 19,466
Shareholders' reports - printing and mailing expenses 49,367 53,151 28,491 25,867
Stock exchange listing fees 8,199 10,288 8,134 10,149
Investor relations expense 49,175 47,016 29,800 26,525
Other expenses 26,586 35,661 18,744 18,422
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 3,069,792 3,725,499 1,852,338 2,210,877
Custodian fee credit (38,257) (67,167) (13,942) (29,197)
Expense reimbursement -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,031,535 3,658,332 1,838,396 2,181,680
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 15,440,608 18,688,118 8,918,431 10,793,726
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 705,064 2,924,752 510,558 1,016,202
Net increase from payments by the
Adviser for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 8,995,606 (18,288,152) 5,450,660 (11,273,653)
Change in net unrealized appreciation
(depreciation) of forward swaps 2,853 -- 984 --
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 9,703,523 (15,363,400) 5,962,202 (10,257,451)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (4,125,527) (3,729,225) (2,385,561) (1,991,793)
From accumulated net realized gains (168,273) (599,726) (27,729) (454,296)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (4,293,800) (4,328,951) (2,413,290) (2,446,089)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations $ 20,850,331 $ (1,004,233) $ 12,467,343 $ (1,909,814)
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
74
NEW JERSEY DIVIDEND NEW JERSEY DIVIDEND
ADVANTAGE (NXJ) ADVANTAGE 2 (NUJ)
--------------------------------- ----------------------------------
FOR THE YEAR FOR THE YEAR
TEN MONTHS ENDED ENDED TEN MONTHS ENDED ENDED
4/30/07 6/30/06 4/30/07 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 5,828,828 $ 6,980,326 $ 4,181,236 $ 4,989,618
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 776,109 939,552 547,871 662,374
Preferred shares - auction fees 99,946 120,143 71,835 86,353
Preferred shares - dividend disbursing agent fees 8,329 10,000 8,329 10,000
Shareholders' servicing agent fees and expenses 1,455 2,076 1,361 1,888
Floating rate obligations interest expense and fees -- -- -- --
Custodian's fees and expenses 43,563 42,944 30,024 31,366
Directors'/Trustees' fees and expenses 2,809 3,212 1,926 2,278
Professional fees 13,906 15,116 12,386 13,453
Shareholders' reports - printing and mailing expenses 18,127 18,242 14,751 15,885
Stock exchange listing fees 465 558 320 384
Investor relations expense 15,294 16,441 11,179 12,018
Other expenses 13,738 15,685 12,425 13,046
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 993,741 1,183,969 712,407 849,045
Custodian fee credit (8,952) (17,438) (10,034) (15,833)
Expense reimbursement (300,359) (424,010) (254,528) (310,768)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 684,430 742,521 447,845 522,444
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 5,144,398 6,237,805 3,733,391 4,467,174
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 307,186 484,326 526,783 178,837
Net increase from payments by the
Adviser for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 2,703,743 (5,541,649) 1,671,929 (3,595,338)
Change in net unrealized appreciation
(depreciation) of forward swaps 590 -- 295 --
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 3,011,519 (5,057,323) 2,199,007 (3,416,501)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,250,055) (1,154,022) (919,957) (861,957)
From accumulated net realized gains (7,668) (82,061) (3,401) (57,711)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (1,257,723) (1,236,083) (923,358) (919,668)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 6,898,194 $ (55,601) $ 5,009,040 $ 131,005
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
75
Statement of
OPERATIONS (continued)
PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM
QUALITY (NQP) INCOME 2 (NPY)
--------------------------------- ----------------------------------
FOR THE YEAR FOR THE YEAR
TEN MONTHS ENDED ENDED TEN MONTHS ENDED ENDED
4/30/07 6/30/06 4/30/07 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 15,674,289 $ 17,579,842 $ 14,482,082 $ 16,819,465
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 1,968,233 2,379,304 1,819,306 2,204,767
Preferred shares - auction fees 274,849 330,395 245,906 295,665
Preferred shares - dividend disbursing agent fees 24,986 30,000 24,986 31,616
Shareholders' servicing agent fees and expenses 34,899 53,922 29,707 43,648
Floating rate obligations interest expense and fees 610,779 -- 365,895 --
Custodian's fees and expenses 116,583 95,008 95,690 100,425
Directors'/Trustees' fees and expenses 7,549 7,991 6,787 7,429
Professional fees 22,464 22,514 21,229 22,257
Shareholders' reports - printing and mailing expenses 48,289 49,845 38,473 33,900
Stock exchange listing fees 8,119 10,136 8,201 10,224
Investor relations expense 41,440 38,396 38,369 37,601
Other expenses 21,467 29,560 19,729 17,304
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 3,179,657 3,047,071 2,714,278 2,804,836
Custodian fee credit (28,011) (57,357) (17,184) (43,739)
Expense reimbursement -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,151,646 2,989,714 2,697,094 2,761,097
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 12,522,643 14,590,128 11,784,988 14,058,368
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 525,913 (822,081) 1,099,235 (44,620)
Net increase from payments by the
Adviser for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- -- -- 27,169
Change in net unrealized appreciation
(depreciation) of investments 7,529,900 (13,473,894) 6,516,874 (12,682,405)
Change in net unrealized appreciation
(depreciation) of forward swaps (340,646) -- 181,467 --
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 7,715,167 (14,295,975) 7,797,576 (12,699,856)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (3,721,535) (3,413,477) (3,333,169) (2,800,234)
From accumulated net realized gains -- (261,069) -- (435,619)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (3,721,535) (3,674,546) (3,333,169) (3,235,853)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 16,516,275 $ (3,380,393) $ 16,249,395 $ (1,877,341)
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76
PENNSYLVANIA DIVIDEND PENNSYLVANIA DIVIDEND
ADVANTAGE (NXM) ADVANTAGE 2 (NVY)
--------------------------------- ----------------------------------
FOR THE YEAR FOR THE YEAR
TEN MONTHS ENDED ENDED TEN MONTHS ENDED ENDED
4/30/07 6/30/06 4/30/07 6/30/06
----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 3,116,269 $ 3,650,014 $ 3,505,004 $ 4,110,056
----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 402,660 486,311 453,168 548,422
Preferred shares - auction fees 52,054 62,575 59,344 71,418
Preferred shares - dividend disbursing agent fees 8,329 10,000 8,329 10,000
Shareholders' servicing agent fees and expenses 1,577 2,563 1,410 2,338
Floating rate obligations interest expense and fees 23,922 -- 26,764 --
Custodian's fees and expenses 31,092 27,825 32,820 28,389
Directors'/Trustees' fees and expenses 1,538 1,578 1,612 1,877
Professional fees 11,441 12,101 11,788 12,510
Shareholders' reports - printing and mailing expenses 12,290 12,431 14,935 15,377
Stock exchange listing fees 235 281 264 317
Investor relations expense 8,327 8,663 9,698 10,105
Other expenses 11,991 12,856 12,215 12,200
----------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense
reimbursement 565,456 637,184 632,347 712,953
Custodian fee credit (5,419) (8,720) (3,022) (12,703)
Expense reimbursement (155,370) (218,799) (210,536) (257,305)
----------------------------------------------------------------------------------------------------------------------------------
Net expenses 404,667 409,665 418,789 442,945
----------------------------------------------------------------------------------------------------------------------------------
Net investment income 2,711,602 3,240,349 3,086,215 3,667,111
----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 212,309 (47,126) 328,218 239,396
Net increase from payments by the
Adviser for losses realized on the disposal of
investments purchased in violation of
investment restrictions -- -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,305,436 (2,528,439) 1,348,046 (3,414,928)
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- -- --
----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,517,745 (2,575,565) 1,676,264 (3,175,532)
----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (684,854) (637,236) (791,861) (715,207)
From accumulated net realized gains -- (40,350) (22,246) (47,059)
----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Preferred shareholders (684,854) (677,586) (814,107) (762,266)
----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares from operations $ 3,544,493 $ (12,802) $ 3,948,372 $ (270,687)
==================================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
77
Statement of
CHANGES IN NET ASSETS
NEW JERSEY
INVESTMENT QUALITY (NQJ)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,440,608 $ 18,688,118 $ 19,481,237
Net realized gain (loss) from investments 705,064 2,924,752 3,339,508
Net realized gain (loss) from forward
swaps -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 8,995,606 (18,288,152) 19,532,836
Change in net unrealized appreciation
(depreciation) of forward swaps 2,853 -- --
Distributions to Preferred Shareholders:
From net investment income (4,125,527) (3,729,225) (2,081,219)
From accumulated net realized gains (168,273) (599,726) (107,515)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 20,850,331 (1,004,233) 40,164,847
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (11,286,866) (16,230,307) (19,283,118)
From accumulated net realized gains (700,556) (4,917,869) (2,241,452)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (11,987,422) (21,148,176) (21,524,570)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 608,791 770,952
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 608,791 770,952
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 8,862,909 (21,543,618) 19,411,229
Net assets applicable to Common
shares at the beginning of period 297,539,010 319,082,628 299,671,399
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 306,401,919 $ 297,539,010 $ 319,082,628
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (309,186) $ (337,401) $ 934,719
====================================================================================================
NEW JERSEY
PREMIUM INCOME (NNJ)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 8,918,431 $ 10,793,726 $ 11,306,412
Net realized gain (loss) from investments 510,558 1,016,202 4,268,639
Net realized gain (loss) from forward
swaps -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 5,450,660 (11,273,653) 7,825,789
Change in net unrealized appreciation
(depreciation) of forward swaps 984 -- --
Distributions to Preferred Shareholders:
From net investment income (2,385,561) (1,991,793) (1,150,783)
From accumulated net realized gains (27,729) (454,296) (121,121)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 12,467,343 (1,909,814) 22,128,936
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (7,003,612) (9,510,935) (11,079,485)
From accumulated net realized gains (123,667) (3,721,776) (2,620,075)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (7,127,279) (13,232,711) (13,699,560)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 159,660 --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 159,660 --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 5,340,064 (14,982,865) 8,429,376
Net assets applicable to Common
shares at the beginning of period 178,199,445 193,182,310 184,752,934
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 183,539,509 $ 178,199,445 $ 193,182,310
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ 44,669 $ 515,769 $ 1,224,771
====================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
78
NEW JERSEY
DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 5,144,398 $ 6,237,805 $ 6,400,915
Net realized gain (loss) from investments 307,186 484,326 1,221,262
Net realized gain (loss) from forward
swaps -- -- (201,571)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 2,703,743 (5,541,649) 6,136,129
Change in net unrealized appreciation
(depreciation) of forward swaps 590 -- --
Distributions to Preferred Shareholders:
From net investment income (1,250,055) (1,154,022) (658,577)
From accumulated net realized gains (7,668) (82,061) --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 6,898,194 (55,601) 12,898,158
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (4,204,503) (5,512,880) (6,070,304)
From accumulated net realized gains (34,815) (678,056) --
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (4,239,318) (6,190,936) (6,070,304)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 166,210 122,384 22,984
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 166,210 122,384 22,984
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,825,086 (6,124,153) 6,850,838
Net assets applicable to Common
shares at the beginning of period 96,377,524 102,501,677 95,650,839
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 99,202,610 $ 96,377,524 $ 102,501,677
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (171,723) $ 139,151 $ 568,730
====================================================================================================
NEW JERSEY
DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,733,391 $ 4,467,174 $ 4,539,226
Net realized gain (loss) from investments 526,783 178,837 545,334
Net realized gain (loss) from forward
swaps -- -- (143,801)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,671,929 (3,595,338) 5,262,530
Change in net unrealized appreciation
(depreciation) of forward swaps 295 -- --
Distributions to Preferred Shareholders:
From net investment income (919,957) (861,957) (500,033)
From accumulated net realized gains (3,401) (57,711) (13,577)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 5,009,040 131,005 9,689,679
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,982,781) (3,899,566) (4,140,074)
From accumulated net realized gains (14,809) (424,522) (237,176)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,997,590) (4,324,088) (4,377,250)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 76,290 111,985 --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 76,290 111,985 --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 2,087,740 (4,081,098) 5,312,429
Net assets applicable to Common
shares at the beginning of period 67,150,026 71,231,124 65,918,695
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 69,237,766 $ 67,150,026 $ 71,231,124
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (128,820) $ 41,782 $ 337,234
====================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
79
Statement of
CHANGES IN NET ASSETS (continued)
PENNSYLVANIA
INVESTMENT QUALITY (NQP)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 12,522,643 $ 14,590,128 $ 15,081,033
Net realized gain (loss) from investments 525,913 (822,081) 3,033,351
Net realized gain (loss) from forward
swaps -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 7,529,900 (13,473,894) 13,962,464
Change in net unrealized appreciation
(depreciation) of forward swaps (340,646) -- --
Distributions to Preferred Shareholders:
From net investment income (3,721,535) (3,413,477) (2,017,435)
From accumulated net realized gains -- (261,069) (138,958)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 16,516,275 (3,380,393) 29,920,455
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,590,894) (11,533,314) (14,534,163)
From accumulated net realized gains -- (1,732,849) (2,308,550)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (8,590,894) (13,266,163) (16,842,713)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- -- --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- -- --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 7,925,381 (16,646,556) 13,077,742
Net assets applicable to Common
shares at the beginning of period 239,718,289 256,364,845 243,287,103
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 247,643,670 $ 239,718,289 $ 256,364,845
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (393,373) $ (603,568) $ (246,293)
====================================================================================================
PENNSYLVANIA
PREMIUM INCOME 2 (NPY)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 11,784,988 $ 14,058,368 $ 14,629,139
Net realized gain (loss) from investments 1,099,235 (44,620) 5,554,834
Net realized gain (loss) from forward
swaps -- -- --
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- 27,169 --
Change in net unrealized appreciation
(depreciation) of investments 6,516,874 (12,682,405) 8,419,347
Change in net unrealized appreciation
(depreciation) of forward swaps 181,467 -- --
Distributions to Preferred Shareholders:
From net investment income (3,333,169) (2,800,234) (1,647,195)
From accumulated net realized gains -- (435,619) (131,391)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 16,249,395 (1,877,341) 26,824,734
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (8,720,545) (12,127,724) (14,724,745)
From accumulated net realized gains -- (3,389,440) (2,842,911)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (8,720,545) (15,517,164) (17,567,656)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions -- 142,460 661,012
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions -- 142,460 661,012
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 7,528,850 (17,252,045) 9,918,090
Net assets applicable to Common
shares at the beginning of period 225,121,108 242,373,153 232,455,063
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 232,649,958 $ 225,121,108 $ 242,373,153
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (377,624) $ (110,182) $ 759,544
====================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
80
PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 2,711,602 $ 3,240,349 $ 3,275,260
Net realized gain (loss) from investments 212,309 (47,126) 1,620,266
Net realized gain (loss) from forward
swaps -- -- (232,654)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,305,436 (2,528,439) 2,111,728
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- --
Distributions to Preferred Shareholders:
From net investment income (684,854) (637,236) (327,355)
From accumulated net realized gains -- (40,350) (58,447)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,544,493 (12,802) 6,388,798
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,195,386) (2,902,469) (3,171,680)
From accumulated net realized gains -- (336,361) (1,198,780)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,195,386) (3,238,830) (4,370,460)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 151,298 199,614 144,217
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 151,298 199,614 144,217
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,500,405 (3,052,018) 2,162,555
Net assets applicable to Common
shares at the beginning of period 49,659,699 52,711,717 50,549,162
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 51,160,104 $ 49,659,699 $ 52,711,717
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (100,466) $ 68,404 $ 367,990
====================================================================================================
PENNSYLVANIA
DIVIDEND ADVANTAGE 2 (NVY)
------------------------------------------------
FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05
----------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 3,086,215 $ 3,667,111 $ 3,626,330
Net realized gain (loss) from investments 328,218 239,396 320,219
Net realized gain (loss) from forward
swaps -- -- (164,341)
Net increase from payments by the
Adviser for losses realized on the
disposal of investments purchased
in violation of investment restrictions -- -- --
Change in net unrealized appreciation
(depreciation) of investments 1,348,046 (3,414,928) 3,889,901
Change in net unrealized appreciation
(depreciation) of forward swaps -- -- --
Distributions to Preferred Shareholders:
From net investment income (791,861) (715,207) (416,243)
From accumulated net realized gains (22,246) (47,059) (9,192)
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations 3,948,372 (270,687) 7,246,674
----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (2,318,778) (2,942,584) (3,283,404)
From accumulated net realized gains (90,880) (363,540) (159,790)
----------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Common shareholders (2,409,658) (3,306,124) (3,443,194)
----------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares
issued to shareholders due to
reinvestment of distributions 6,072 -- --
----------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from
capital share transactions 6,072 -- --
----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares 1,544,786 (3,576,811) 3,803,480
Net assets applicable to Common
shares at the beginning of period 55,596,994 59,173,805 55,370,325
----------------------------------------------------------------------------------------------------
Net assets applicable to Common
shares at the end of period $ 57,141,780 $ 55,596,994 $ 59,173,805
====================================================================================================
Undistributed (Over-distribution of)
net investment income at the
end of period $ (109,173) $ (83,424) $ (92,744)
====================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
81
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The state funds (the "Funds") covered in this report and their corresponding
Common share stock exchange symbols are Nuveen New Jersey Investment Quality
Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund,
Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen
New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania
Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income
Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund
(NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common
shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ),
Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY)
are traded on the New York Stock Exchange while Common shares of New Jersey
Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania
Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded
on the American Stock Exchange. The Funds are registered under the Investment
Company Act of 1940, as amended, as closed-end management investment companies.
Each Fund seeks to provide current income exempt from both regular federal and
designated state income taxes by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities within
a single state or certain U.S. territories.
In February 2007, the Board of Directors/Trustees of the Funds approved a change
in the Funds' fiscal year end from June 30 to April 30.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment is unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/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, 2007,
Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY),
Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2
(NVY) had outstanding when-issued/delayed delivery purchase commitments of
$3,640,055, $5,492,475, $417,349 and $1,402,679, respectively. There were no
such outstanding purchase commitments in any of the other 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.
INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and designated state
income taxes, to retain such tax-exempt status when distributed to shareholders
of the Funds. Net realized capital gains and ordinary income distributions paid
by the Funds are subject to federal taxation.
82
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in one or more Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Number of shares:
Series M 3,200 -- -- --
Series T -- 624 1,920 --
Series W -- 1,440 -- 1,380
Series TH 2,000 1,600 -- --
Series F 1,280 -- -- --
--------------------------------------------------------------------------------------------------
Total 6,480 3,664 1,920 1,380
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Number of shares:
Series M -- 844 -- 1,140
Series T 880 -- 1,000 --
Series W 2,400 -- -- --
Series TH 2,000 2,080 -- --
Series F -- 1,800 -- --
--------------------------------------------------------------------------------------------------
Total 5,280 4,724 1,000 1,140
==================================================================================================
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
83
Notes to
FINANCIAL STATEMENTS (Continued)
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"). An investment in an externally-deposited
inverse floater is identified in the Portfolio of Investments as an "Inverse
floating rate investment". An investment in a self-deposited inverse floater is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Floating
rate obligations interest expense and fees" in the Statement of Operations.
During the ten months ended April 30, 2007, 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
Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend
Advantage (NXJ) and New Jersey Dividend Advantage 2 (NUJ) did not invest in any
such instruments during the ten months ended April 30, 2007.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the ten months
ended April 30, 2007, 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 $19,053,257 $11,360,378 $742,648 $830,855
Average annual interest rate and fees 3.85% 3.87% 3.87% 3.87%
==================================================================================================
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
the Funds have instructed the custodian to pledge assets of the Funds as
collateral with a value approximately equal to the amount of the unrealized loss
above a pre-determined threshold. Collateral pledges are monitored and
subsequently adjusted if and when the swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount.
84
CUSTODIAN FEE CREDIT
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
INDEMNIFICATIONS
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY
INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ)
-------------------------------------- ---------------------------------------
FOR THE TEN FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05 4/30/07 6/30/06 6/30/05
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- 39,742 49,812 -- 10,167 --
=======================================================================================================================
NEW JERSEY NEW JERSEY
DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ)
-------------------------------------- ---------------------------------------
FOR THE TEN FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05 4/30/07 6/30/06 6/30/05
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 10,642 7,907 1,445 4,764 6,973 --
=======================================================================================================================
PENNSYLVANIA PENNSYLVANIA
INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY)
-------------------------------------- ---------------------------------------
FOR THE TEN FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05 4/30/07 6/30/06 6/30/05
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions -- -- -- -- 9,155 42,619
=======================================================================================================================
PENNSYLVANIA PENNSYLVANIA
DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY)
-------------------------------------- ---------------------------------------
FOR THE TEN FOR THE TEN
MONTHS ENDED YEAR ENDED YEAR ENDED MONTHS ENDED YEAR ENDED YEAR ENDED
4/30/07 6/30/06 6/30/05 4/30/07 6/30/06 6/30/05
-----------------------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of distributions 9,600 12,400 8,948 393 -- --
=======================================================================================================================
85
Notes to
FINANCIAL STATEMENTS (Continued)
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the ten months ended April 30, 2007, 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 $33,136,609 $15,999,782 $12,634,562 $10,828,401
Sales and maturities 36,935,209 17,702,505 13,575,412 11,013,222
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Purchases $90,163,042 $86,307,076 $ 9,628,209 $11,831,562
Sales and maturities 61,948,116 54,663,456 8,678,287 11,015,542
==================================================================================================
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No.140. To the
extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At April 30, 2007, 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 $444,391,033 $259,921,664 $139,386,809 $97,507,522
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Cost of investments $356,881,785 $331,535,160 $ 71,246,808 $81,825,115
==================================================================================================
86
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2007, 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 $17,435,435 $11,157,931 $5,986,088 $4,797,430
Depreciation (377,509) (169,796) (111,762) (85,580)
--------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $17,057,926 $10,988,135 $5,874,326 $4,711,850
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $17,868,970 $15,588,917 $3,929,218 $4,311,621
Depreciation (87,354) (185,657) (70,315) (86,628)
--------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $17,781,616 $15,403,260 $3,858,903 $4,224,993
==================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at April 30, 2007, 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 * $866,264 $621,055 $207,777 $154,139
Undistributed net ordinary income ** -- 11,923 -- 886
Undistributed net long-term
capital gains 436,909 510,142 133,483 505,099
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $529,184 $313,702 $ 98,160 $112,624
Undistributed net ordinary income ** -- -- -- --
Undistributed net long-term
capital gains -- 955,975 118,117 211,623
==================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on April 2, 2007, paid on May 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the ten months ended April 30,
2007 and during the tax years ended June 30, 2006 and June 30, 2005, was
designated for purposes of the dividends paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2007 (NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income*** $15,443,038 $9,395,450 $5,456,484 $3,895,191
Distributions from net
ordinary income ** -- 3,495 -- 127
Distributions from net long-term
capital gains **** 868,829 151,396 42,483 18,210
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2007 (NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income*** $12,242,231 $12,079,079 $2,880,245 $3,111,211
Distributions from net
ordinary income ** -- -- -- --
Distributions from net long-term
capital gains **** -- -- -- 113,126
==================================================================================================
87
Notes to
FINANCIAL STATEMENTS(Continued)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2006 (NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $20,266,148 $11,621,963 $6,701,392 $4,803,247
Distributions from net
ordinary income ** -- 9,989 -- 124
Distributions from net long-term
capital gains 5,517,595 4,174,209 760,117 482,233
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2006 (NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $15,205,803 $15,141,147 $3,570,220 $3,664,279
Distributions from net
ordinary income ** 8,580 41,520 -- --
Distributions from net long-term
capital gains 1,984,315 3,816,421 357,090 410,598
==================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
2005 (NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $21,476,819 $12,307,476 $6,771,438 $4,644,877
Distributions from net
ordinary income ** -- 3,453 -- 44
Distributions from net long-term
capital gains 2,348,967 2,741,196 -- 250,753
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
2005 (NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $16,672,670 $16,397,456 $3,485,060 $3,731,320
Distributions from net
ordinary income ** 17,181 90,448 20,509 --
Distributions from net long-term
capital gains 2,440,428 2,957,194 1,257,227 168,982
==================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the ten months ended
April 30, 2007, as Exempt Interest Dividends.
**** The Funds hereby designate these amounts paid during the ten months ended
April 30, 2007, as long-term capital gain dividends pursuant to Internal
Revenue Code Section 852(b)(3).
At April 30, 2007, Pennsylvania Investment Quality (NQP) had unused capital loss
carryforwards of $295,537 available for federal income tax purposes to be
applied against future capital gains, if any. If not applied $124,650 of the
carryforward will expire in 2014 and $170,887 will expire in 2015.
88
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by Nuveen
Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc., ("Nuveen"), and a specific fund-level component, based only
on the amount of assets within each individual fund. This pricing structure
enables Nuveen fund shareholders to benefit from growth in the assets within
each individual fund as well as from growth in the amount of complex-wide assets
managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ)
NEW JERSEY PREMIUM INCOME (NNJ)
PENNSYLVANIA INVESTMENT QUALITY (NQP)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
==============================================================================================================================
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
==============================================================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of April 30, 2007, the complex-level fee rate was .1824%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
------------------------------------------------------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
==============================================================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of 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.
89
Notes to
FINANCIAL STATEMENTS (Continued)
For the first ten years of New Jersey Dividend Advantage's (NXJ) and
Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2001* .30% 2007 .25%
2002 .30 2008 .20
2003 .30 2009 .15
2004 .30 2010 .10
2005 .30 2011 .05
2006 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and
Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses
beyond March 31, 2011.
For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and
Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to
reimburse the Funds, as a percentage of average daily net assets (including net
assets attributable to Preferred shares), for fees and expenses in the amounts
and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ)
and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and
expenses beyond March 31, 2012.
As a result of certain trading errors that occurred during the fiscal year ended
June 30, 2006, Pennsylvania Premium Income 2 (NPY) was reimbursed $27,169 by the
Adviser to offset losses realized upon the disposal of investments purchased in
violation of investment restrictions.
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006 and is to be applied
to all open tax years as of the effective date. Recent SEC guidance allows funds
to delay implementing FIN 48 into NAV calculations until the fund's last NAV
calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
on October 31, 2007. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
90
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of April 30, 2007, the Funds do not believe the adoption of
SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2007, to shareholders of record on
May 15, 2007, as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME ADVANTAGE ADVANTAGE 2
(NQJ) (NNJ) (NXJ) (NUJ)
--------------------------------------------------------------------------------------------------
Dividend per share $.0545 $.0575 $.0620 $.0660
==================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA
INVESTMENT PREMIUM DIVIDEND DIVIDEND
QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2
(NQP) (NPY) (NXM) (NVY)
--------------------------------------------------------------------------------------------------
Dividend per share $.0535 $.0535 $.0640 $.0610
==================================================================================================
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with an investor
group majority-led by Madison Dearborn Partners, LLC. Madison Dearborn Partners,
LLC is a private equity investment firm based in Chicago, Illinois. The investor
group includes affiliates of Merrill Lynch, Wachovia, Citigroup, Deutsche Bank
and Morgan Stanley. It is anticipated that Merrill Lynch and its affiliates will
be indirect "affiliated persons" (as that term is defined in the Investment
Company Act of 1940) of the Funds. Under the terms of the merger, each
outstanding share of Nuveen Investments' common stock (other than dissenting
shares) will be converted into the right to receive a specified amount of cash,
without interest. The merger is expected to be completed by the end of the year,
subject to customary conditions, including obtaining the approval of Nuveen
Investments shareholders, obtaining necessary fund and client consents
sufficient to satisfy the terms of the Merger Agreement, and expiration of
certain regulatory waiting periods. The obligations of Madison Dearborn
Partners, LLC to consummate the merger are not conditioned on its obtaining
financing. The Merger Agreement includes a "go shop" provision through July 19,
2007 during which Nuveen Investments may actively solicit and negotiate
competing takeover proposals.
The consummation of the merger will be deemed to be an "assignment" (as defined
in the 1940 Act) of the investment management agreement between each Fund and
the Adviser, and will result in the automatic termination of each Fund's
agreement. Prior to the consummation of the merger, it is anticipated that the
Board of Trustees of each Fund will consider a new investment management
agreement with the Adviser. If approved by the Board, the new agreement would be
presented to the Fund's shareholders for approval, and, if so approved by
shareholders, would take effect upon consummation of the merger. There can be no
assurance that the merger described above will be consummated as contemplated or
that necessary shareholder approvals will be obtained.
91
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $14.53 $ .75 $ .47 $ (.20) $ (.01) $1.01 $ (.55) $ (.03) $ (.58)
Year Ended 6/30:
2006 15.61 .91 (.75) (.18) (.03) (.05) (.79) (.24) (1.03)
2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05)
2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16)
2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00)
2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92)
NEW JERSEY PREMIUM INCOME (NNJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 14.79 .74 .49 (.20) --** 1.03 (.58) (.01) (.59)
Year Ended 6/30:
2006 16.05 .90 (.85) (.17) (.04) (.16) (.79) (.31) (1.10)
2005 15.35 .94 1.01 (.10) (.01) 1.84 (.92) (.22) (1.14)
2004 16.28 .99 (.79) (.05) (.01) .14 (.94) (.13) (1.07)
2003 15.60 1.04 .63 (.07) -- 1.60 (.92) -- (.92)
2002 15.27 1.06 .24 (.12) -- 1.18 (.85) -- (.85)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value*** Value*** Shares (000)
------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $ -- $14.96 $14.30 8.75% 7.05% $ 306,402
Year Ended 6/30:
2006 -- 14.53 13.70 (3.62) (.31) 297,539
2005 -- 15.61 15.25 15.13 13.81 319,083
2004 -- 14.69 14.19 (4.09) 1.26 299,671
2003 -- 15.65 15.94 11.68 10.72 316,970
2002 -- 15.07 15.22 4.19 6.56 304,808
NEW JERSEY PREMIUM INCOME (NNJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) -- 15.23 15.12 11.10 7.03 183,540
Year Ended 6/30:
2006 -- 14.79 14.16 (3.36) (1.04) 178,199
2005 -- 16.05 15.76 19.43 12.31 193,182
2004 -- 15.35 14.19 (5.65) .85 184,753
2003 -- 16.28 16.10 10.18 10.48 195,568
2002 -- 15.60 15.50 7.88 7.91 187,393
================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
---------------------------------------- ------------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.20%* 1.20%* 6.04%* 1.19%* 1.19%* 6.06%* 7%
Year Ended 6/30:
2006 1.21 1.21 6.05 1.19 1.19 6.08 17
2005 1.21 1.21 6.22 1.20 1.20 6.23 15
2004 1.21 1.21 6.64 1.21 1.21 6.64 19
2003 1.22 1.22 6.80 1.22 1.22 6.81 12
2002 1.25 1.25 7.35 1.23 1.23 7.36 22
NEW JERSEY PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.21* 1.21* 5.83* 1.20* 1.20* 5.84* 6
Year Ended 6/30:
2006 1.19 1.19 5.81 1.18 1.18 5.83 12
2005 1.18 1.18 5.91 1.17 1.17 5.92 21
2004 1.18 1.18 6.23 1.18 1.18 6.23 23
2003 1.20 1.20 6.48 1.20 1.20 6.48 13
2002 1.22 1.22 6.85 1.22 1.22 6.86 14
==========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
NEW JERSEY INVESTMENT QUALITY (NQJ)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
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 -- --
2003 162,000 25,000 73,915 -- --
2002 162,000 25,000 72,038 -- --
NEW JERSEY PREMIUM INCOME (NNJ)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
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 -- --
2003 91,600 25,000 78,376 -- --
2002 91,600 25,000 76,144 -- --
============================================================================================
* Annualized.
** Per share capital gains rounds to less than $.01 per share.
*** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) 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.
Spread 92-93
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $14.68 $ .78 $ .47 $ (.19) $ --** $1.06 $ (.64) $ (.01) $ (.65)
Year Ended 6/30:
2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94)
2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93)
2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94)
2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87)
2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85)
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 14.87 .83 .47 (.20) --** 1.10 (.66) --** (.66)
Year Ended 6/30:
2006 15.79 .99 (.76) (.19) (.01) .03 (.86) (.09) (.95)
2005 14.62 1.00 1.25 (.11) -- 2.14 (.92) (.05) (.97)
2004 15.44 1.03 (.82) (.06) -- .15 (.92) (.05) (.97)
2003 14.46 1.05 .96 (.08) -- 1.93 (.92) (.03) (.95)
2002(c) 14.33 .16 .27 (.01) -- .42 (.15) -- (.15)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value*** Value*** Shares (000)
------------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $ -- $15.09 $15.75 14.37% 7.26% $ 99,203
Year Ended 6/30:
2006 -- 14.68 14.35 (.78) (.05) 96,378
2005 -- 15.63 15.38 19.97 13.80 102,502
2004 -- 14.59 13.63 (5.13) 1.20 95,651
2003 .01 15.35 15.30 15.09 13.18 100,502
2002 -- 14.38 14.12 (.17) 6.05 94,130
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) -- 15.31 16.50 15.40 7.50 69,238
Year Ended 6/30:
2006 -- 14.87 14.90 (.49) .25 67,150
2005 -- 15.79 15.90 23.39 15.00 71,231
2004 -- 14.62 13.74 (4.81) 1.02 65,919
2003 -- 15.44 15.40 9.14 13.74 69,616
2002(c) (.14) 14.46 15.04 1.29 1.98 65,153
================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement****
---------------------------------------- ------------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.20%* 1.20%* 5.85%* .83%* .83%* 6.23%* 9%
Year Ended 6/30:
2006 1.19 1.19 5.83 .75 .75 6.28 16
2005 1.19 1.19 5.94 .74 .74 6.39 17
2004 1.20 1.20 6.26 .74 .74 6.71 11
2003 1.19 1.19 6.56 .74 .74 7.01 8
2002 1.24 1.24 6.76 .75 .75 7.25 7
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.24* 1.24* 6.03* .78* .78* 6.49* 11
Year Ended 6/30:
2006 1.23 1.23 5.99 .76 .76 6.47 13
2005 1.23 1.23 6.09 .77 .77 6.54 11
2004 1.25 1.25 6.41 .79 .79 6.87 11
2003 1.23 1.23 6.53 .76 .76 7.00 12
2002(c) 1.07* 1.07* 3.86* .67* .67* 4.25* --
==========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
NEW JERSEY DIVIDEND ADVANTAGE (NXJ)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
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 -- --
2003 48,000 25,000 77,345 -- --
2002 48,000 25,000 74,026 -- --
NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
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 -- --
2003 34,500 25,000 75,446 -- --
2002(c) 34,500 25,000 72,213 -- --
============================================================================================
* Annualized.
** Per share capital gains rounds to less than $.01 per share.
*** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
**** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) 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.
(c) For the period March 25, 2002 (commencement of operations) through June
30, 2002.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 94-95
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $14.71 $ .77 $ .47 $ (.23) $ -- $1.01 $ (.53) $ -- $ (.53)
Year Ended 6/30:
2006 15.73 .90 (.87) (.21) (.02) (.20) (.71) (.11) (.82)
2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03)
2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93)
2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91)
2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91)
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 14.22 .74 .50 (.21) -- 1.03 (.55) -- (.55)
Year Ended 6/30:
2006 15.32 .89 (.80) (.18) (.03) (.12) (.77) (.21) (.98)
2005 14.74 .92 .88 (.10) (.01) 1.69 (.93) (.18) (1.11)
2004 15.65 .98 (.77) (.05) (.01) .15 (.95) (.11) (1.06)
2003 14.83 1.04 .79 (.08) -- 1.75 (.93) -- (.93)
2002 14.44 1.07 .30 (.12) -- 1.25 (.86) -- (.86)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value** Value** Shares (000)
--------------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $-- $15.19 $14.01 12.41% 6.89% $247,644
Year Ended 6/30:
2006 -- 14.71 12.95 (9.47) (1.34) 239,718
2005 -- 15.73 15.16 19.53 12.67 256,365
2004 -- 14.92 13.58 (9.73) (.38) 243,287
2003 -- 15.91 16.01 11.98 14.79 258,924
2002 -- 14.70 15.18 6.57 7.34 238,926
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) -- 14.70 13.67 9.83 7.31 232,650
Year Ended 6/30:
2006 -- 14.22 12.96 (8.42) (.80)**** 225,121
2005 -- 15.32 15.16 17.79 11.80 242,373
2004 -- 14.74 13.84 (7.22) .94 232,455
2003 -- 15.65 16.00 15.09 12.09 246,604
2002 -- 14.83 14.79 13.25 8.88 233,536
==================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------------------- ------------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.54%* 1.25%* 6.06%* 1.53%* 1.23%* 6.07%* 16%
Year Ended 6/30:
2006 1.23 1.23 5.87 1.21 1.21 5.89 20
2005 1.23 1.23 5.96 1.22 1.22 5.97 18
2004 1.23 1.23 6.38 1.22 1.22 6.39 17
2003 1.27 1.27 6.59 1.26 1.26 6.60 11
2002 1.31 1.31 7.42 1.30 1.30 7.44 34
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.40* 1.21* 6.08* 1.39* 1.20* 6.09* 15
Year Ended 6/30:
2006 1.20 1.20 6.01 1.18 1.18 6.03 18
2005 1.19 1.19 6.09 1.19 1.19 6.10 22
2004 1.18 1.18 6.45 1.17 1.17 6.46 16
2003 1.20 1.20 6.76 1.19 1.19 6.77 19
2002 1.24 1.24 7.28 1.23 1.23 7.29 7
==========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
PENNSYLVANIA INVESTMENT QUALITY (NQP)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $132,000 $25,000 $71,902 $28,715 $14,221
Year Ended 6/30:
2006 132,000 25,000 70,401 -- --
2005 132,000 25,000 73,554 -- --
2004 132,000 25,000 71,077 -- --
2003 132,000 25,000 74,039 -- --
2002 132,000 25,000 70,251 -- --
PENNSYLVANIA PREMIUM INCOME 2 (NPY)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 118,100 25,000 74,249 22,585 16,530
Year Ended 6/30:
2006 118,100 25,000 72,655 -- --
2005 118,100 25,000 76,307 -- --
2004 118,100 25,000 74,207 -- --
2003 118,100 25,000 77,202 -- --
2002 118,100 25,000 74,436 -- --
============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
**** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2
(NPY) received a payment from the Adviser of $27,169, to offset losses
realized on the disposal of investments purchased in violation of the
Fund's investment restrictions. This reimbursement did not have an impact
on the Funds' Total Return on Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) 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 end April 30, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 96-97
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $14.95 $ .82 $ .46 $ (.21) $ -- $1.07 $ (.66) $ -- $ (.66)
Year Ended 6/30:
2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98)
2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32)
2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13)
2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02)
2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88)
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
-----------------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 14.93 .83 .44 (.21) (.01) 1.05 (.62) (.02) (.64)
Year Ended 6/30:
2006 15.89 .98 (.85) (.19) (.01) (.07) (.79) (.10) (.89)
2005 14.87 .97 1.08 (.11) -- 1.94 (.88) (.04) (.92)
2004 15.90 .98 (.87) (.05) (.01) .05 (.92) (.16) (1.08)
2003 14.64 1.00 1.30 (.09) -- 2.21 (.92) (.03) (.95)
2002(c) 14.33 .15 .46 (.01) -- .60 (.15) -- (.15)
===================================================================================================================================
Total Returns
---------------------
Offering Based Ending
Costs and Ending on Net
Preferred Common Based Common Assets
Share Share Ending on Share Net Applicable
Underwriting Net Asset Market Market Asset to Common
Discounts Value Value Value** Value** Shares (000)
--------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $ -- $15.36 $15.70 8.40% 7.22% 51,160
Year Ended 6/30:
2006 -- 14.95 15.10 (.56) (.01) 49,660
2005 -- 15.93 16.14 21.84 13.02 52,712
2004 -- 15.32 14.39 (5.95) 1.30 50,549
2003 .02 16.25 16.46 18.13 15.95 53,591
2002 -- 14.96 14.89 9.10 9.67 49,306
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) -- 15.34 15.18 11.88 7.14 57,142
Year Ended 6/30:
2006 -- 14.93 14.16 .88 (.46) 55,597
2005 -- 15.89 14.90 17.63 13.37 59,174
2004 -- 14.87 13.48 (8.58) .29 55,370
2003 -- 15.90 15.84 14.38 15.48 59,202
2002(c) (.14) 14.64 14.74 (.73) 3.24 54,481
==================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
Ratios to Average Net Assets Ratios to Average Net Assets
Applicable to Common Shares Applicable to Common Shares
Before Credit/Reimbursement After Credit/Reimbursement***
---------------------------------------- ------------------------------------------------------
Expenses Expenses Net Expenses Expenses Net Portfolio
Including Excluding Investment Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.33%* 1.27%* 5.99%* .95%* .89%* 6.37%* 11%
Year Ended 6/30:
2006 1.25 1.25 5.90 .80 .80 6.35 12
2005 1.23 1.23 5.82 .78 .78 6.28 13
2004 1.21 1.21 6.15 .76 .76 6.60 10
2003 1.23 1.23 6.44 .79 .79 6.88 13
2002 1.29 1.29 7.12 .82 .82 7.59 48
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 1.33* 1.27* 6.03* .88* .82* 6.48* 13
Year Ended 6/30:
2006 1.24 1.24 5.93 .77 .77 6.40 13
2005 1.23 1.23 5.80 .78 .78 6.25 8
2004 1.24 1.24 5.95 .78 .78 6.40 4
2003 1.25 1.25 6.07 .78 .78 6.53 13
2002(c) 1.09* 1.09* 3.77* .70* .70* 4.15* 8
==========================================================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- ---------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------
PENNSYLVANIA DIVIDEND ADVANTAGE (NXM)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) $25,000 $25,000 $76,160 $ 1,305 $59,360
Year Ended 6/30:
2006 25,000 25,000 74,660 -- --
2005 25,000 25,000 77,712 -- --
2004 25,000 25,000 75,549 -- --
2003 25,000 25,000 78,591 -- --
2002 25,000 25,000 74,306 -- --
PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY)
--------------------------------------------------------------------------------------------
Year Ended 4/30:
2007(b) 28,500 25,000 75,124 1,460 59,659
Year Ended 6/30:
2006 28,500 25,000 73,769 -- --
2005 28,500 25,000 76,907 -- --
2004 28,500 25,000 73,570 -- --
2003 28,500 25,000 76,932 -- --
2002(c) 28,500 25,000 72,790 -- --
============================================================================================
* Annualized.
** Total Return on Market Value is the combination of changes in the market
price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. Total returns are not
annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ 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.
(c) For the period March 25, 2002 (commencement of operations) through June
30, 2002.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
Spread 98-99
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at ten. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
YEAR FIRST PORTFOLIOS
ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD OR APPOINTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS AND CLASS(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen 175
3/28/49 the Board Investments, Inc., Nuveen Investments, LLC; Chairman
333 W. Wacker Drive and Board and Director (since 1997) of Nuveen Asset
Chicago, IL 60606 Member Management; Chairman and Director of Rittenhouse
Asset Management, Inc. (since 1999); Chairman of
Nuveen Investments Advisers Inc. (since 2002);
formerly, Chairman and Director (1996-2004) Nuveen
Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Director (1996-2006) of
Institutional Capital Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Lead Independent 1997 Private Investor and Management Consultant. 175
8/22/40 Board member
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 175
7/29/34 (retiring Northern Trust Company; Director (since 2002)
333 W. Wacker Drive 6/30/07) Community Advisory Board for Highland Park and
Chicago, IL 60606 Highwood, United Way of the North Shore; Director
(since 2006) of the Michael Rolfe Pancreatic Cancer
Foundation.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private 175
10/22/48 philanthropic corporation (since 1996); Director and
333 W. Wacker Drive Vice Chairman, United Fire Group, a publicly held
Chicago, IL 60606 company; Member of the Board of Regents for the
State of Iowa University System; Director, Gazette
Companies; Life Trustee of Coe College and Iowa
College Foundation; formerly, Director, Alliant
Energy; formerly, Director, Federal Reserve Bank of
Chicago; formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a regional
financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean, Tippie College of Business, University of Iowa 175
3/6/48 (since July 2006); formerly, Dean and Distinguished
333 W. Wacker Drive Professor of Finance, School of Business at the
Chicago, IL 60606 University of Connecticut (2003-2006); previously,
Senior Vice President and Director of Research at
the Federal Reserve Bank of Chicago (1995-2003);
Director (since 1997), Credit Research Center at
Georgetown University; Director (since 2004) of
Xerox Corporation; Director, SS&C Technologies, Inc.
(May 2005-October 2005).
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Director, Northwestern Mutual Wealth Management 173
10/28/42 Company; Retired (since 2004) as Chairman, JPMorgan
333 W. Wacker Drive Fleming Asset Management, President and CEO, Banc
Chicago, IL 60606 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; Board
of Regents, Luther College; member of the Wisconsin
Bar Association; member of Board of Directors,
Friends of Boerner Botanical Gardens; member of
Board of Directors, Milwaukee Repertory Theater.
100
NUMBER OF
YEAR FIRST PORTFOLIOS
ELECTED PRINCIPAL OCCUPATION(S) IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD OR APPOINTED INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS WITH THE FUNDS AND CLASS(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real 175
9/24/44 estate investment company; formerly, Senior Partner
333 W. Wacker Drive and Chief Operating Officer (retired, 2004) of
Chicago, IL 60606 Miller-Valentine Group; formerly, Vice President,
Miller-Valentine Realty; Board Member, Chair of the
Finance Committee and member of the Audit Committee
of Premier Health Partners, the not-for-profit
company of Miami Valley Hospital; Vice President,
Dayton Philharmonic Orchestra Association; Board
Member, Regional Leaders Forum, which promotes
cooperation on economic development issues;
Director, Dayton Development Coalition; formerly,
Member, Community Advisory Board, National City
Bank, Dayton, Ohio and Business Advisory
Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 175
12/29/47 Foundation (since 1994); prior thereto, Executive
333 W. Wacker Drive Director, Great Lakes Protection Fund (from 1990 to
Chicago, IL 60606 1994).
------------------------------------------------------------------------------------------------------------------------------------
Carole E. Stone Board member 2007 Director, Chicago Board Options Exchange (since 175
6/28/47 2006); Chair New York Racing Association Oversight
333 West Wacker Drive Board (since 2005); Commissioner, New York State
Chicago, IL 60606 Commission on Public Authority Reform (since 2005);
formerly Director, New York State Division of the
Budget (2000-2004), Chair, Public Authorities
Control Board (2000-2004) and Director, Local
Government Assistance Corporation (2000-2004).
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 175
1/22/50 Northwestern University (since 1997); Director
333 W. Wacker Drive (since 2003), Chicago Board Options Exchange;
Chicago, IL 60606 Chairman (since 1997), Board of Directors, Rubicon,
a pure captive insurance company owned by
Northwestern University; Director (since 1997),
Evanston Chamber of Commerce and Evanston Inventure,
a business development organization; Director (since
2006), Pathways, a provider of therapy and related
information for physically disabled infants and
young children; formerly, Director (2003-2006),
National Mentor Holdings, a privately-held, national
provider of home and community-based services.
101
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
YEAR FIRST IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS WITH THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary 175
9/9/56 Administrative and Associate General Counsel, formerly, Vice
333 W. Wacker Drive Officer President and Assistant General Counsel, of Nuveen
Chicago, IL 60606 Investments, LLC; Managing Director (2002-2004),
General Counsel (1998-2004) and Assistant Secretary,
formerly, Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant
Secretary and Associate General Counsel, formerly,
Vice President (since 1997), of Nuveen Asset
Management; Managing Director (since 2004) and
Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ
Investment Management Company, LLC. (since 2002);
Vice President and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002); Managing
Director, Associate General Counsel and Assistant
Secretary of Rittenhouse Asset Management, Inc.,
Symphony Asset Management LLC (since 2003),
Tradewinds Global Investors, LLC and Santa Barbara
Asset Management, LLC; (since 2006); Chartered
Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Williams Adams IV Vice President 2007 Executive Vice President, U.S. Structured Products 118
6/9/55 of Nuveen Investments, LLC, (since 1999), prior
333 West Wacker Drive thereto, Managing Director of Structured Investments.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice 175
9/22/63 President (since 2002) of Nuveen Investments, LLC;
333 W. Wacker Drive Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Cedric H. Antosiewicz Vice President 2007 Managing Director, (since 2004) previously, Vice 118
1/11/62 President (1993-2004) of Nuveen Investments, LLC.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002) of Nuveen Investments, 175
2/3/66 and Assistant LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President and Treasurer of Nuveen Investments, 175
11/28/67 LLC and of Nuveen Investments, Inc. (since 1999);
333 W. Wacker Drive Vice President and Treasurer of Nuveen Asset
Chicago, IL 60606 Management (since 2002) and of Nuveen Investments
Advisers Inc. (since 2002); Assistant Treasurer of
NWQ Investment Management Company, LLC. (since
2002); Vice President and Treasurer of Nuveen
Rittenhouse Asset Management, Inc. (since 2003);
Treasurer of Symphony Asset Management LLC (since
2003) and Santa Barbara Asset Management, LLC (since
2006); Assistant Treasurer, Tradewinds Global
Investors, LLC (since 2006); formerly, Vice
President and Treasurer (1999-2004) of Nuveen
Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); Chartered Financial Analyst.
102
NUMBER OF
PORTFOLIOS
YEAR FIRST IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS WITH THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice 175
10/24/45 President of Nuveen Investments, LLC, Managing
333 W. Wacker Drive Director (2004) formerly, Vice President (1998-2004)
Chicago, IL 60606 of Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.(3); Managing Director (since 2005)
of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice 175
3/2/64 President of Nuveen Investments, LLC; Managing
333 W. Wacker Drive Director (1997-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing
Director (since 2001) of Nuveen Asset Management;
Vice President (since 2002) of Nuveen Investments
Advisers Inc.; Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller 175
5/31/54 and Controller (since 1998) of Nuveen Investments, LLC; formerly,
333 W. Wacker Drive Vice President and Funds Controller (1998-2004) of
Chicago, IL 60606 Nuveen Investments, Inc.; Certified Public
Accountant.
------------------------------------------------------------------------------------------------------------------------------------
Walter M. Kelly Chief Compliance 2003 Assistant Vice President and Assistant Secretary of 175
2/24/70 Officer and the Nuveen Funds (2003-2006); Assistant Vice
333 West Wacker Drive Vice President President and Assistant General Counsel (since 2003)
Chicago, IL 60606 of Nuveen Investments, LLC; previously, Associate
(2001-2003) at the law firm of Vedder, Price,
Kaufman & Kammholz.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 175
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 175
8/27/61 1999).
333 W. Wacker Drive
Chicago, IL 60606
103
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS
YEAR FIRST IN FUND COMPLEX
NAME, BIRTHDATE POSITION(S) HELD ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS WITH THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant 175
7/27/51 and Assistant General Counsel of Nuveen Investments, LLC;
333 W. Wacker Drive Secretary formerly, Vice President and Assistant Secretary of
Chicago, IL 60606 Nuveen Advisory Corp. and Nuveen Institutional
Advisory Corp.(3); Vice President (since 2005) and
Assistant Secretary of Nuveen Investments, Inc.;
Vice President (since 2005) and Assistant Secretary
(since 1997) of Nuveen Asset Management; Vice
President (since 2000), Assistant Secretary and
Assistant General Counsel (since 1998) of
Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); Assistant Secretary of
NWQ Investment Management Company, LLC (since 2002),
Symphony Asset Management LLC (since 2003) and
Tradewinds Global Investors, LLC and Santa Barbara
Asset Management, LLC (since 2006).
------------------------------------------------------------------------------------------------------------------------------------
Kevin J. McCarthy Vice President 2007 Vice President and Assistant General Counsel, Nuveen 175
3/26/66 and Secretary Investments, LLC (since 2007); prior thereto,
333 W. Wacker Drive Partner, Bell, Boyd & Lloyd LLP (1997-2007)
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
John V. Miller Vice President 2007 Managing Director (since 2007), formerly, Vice 175
4/10/67 President (2002-2007) of Nuveen Investments, LLC;
333 W. Wacker Drive Chartered Financial Analyst.
Chicago, IL 60606
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve three year terms. The Board of Trustees is divided
into three classes, Class I, Class II, and Class III, with each class
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. The year first
elected or appointed represents the year in which the board member was
first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
104
Notes
105
Notes
106
Notes
107
Reinvest Automatically
EASILY AND CONVENIENTLY
NUVEEN MAKES
REINVESTING EASY.
A PHONE CALL IS
ALL IT TAKES TO
SET UP YOUR
REINVESTMENT
ACCOUNT.
NUVEEN CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price per share may exceed
the market price at the time of valuation, resulting in the acquisition of fewer
shares than if the dividend or distribution had been paid in shares issued by
the Fund. A pro rata portion of any applicable brokerage commissions on open
market purchases will be paid by Plan participants. These commissions usually
will be lower than those charged on individual transactions.
108
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
109
Glossary of
TERMS USED IN THIS REPORT
AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time period. It
expresses the return that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of
the bonds in a Fund's portfolio, computed by weighting each bond's time to
maturity (the date the security comes due) by the market value of the security.
This figure does not account for the likelihood of prepayments or the exercise
of call provisions unless an escrow account has been established to redeem the
bond before maturity. The market value weighting for an investment in an inverse
floating rate security is the value of the portfolio's residual interest in the
inverse floating rate trust, and does not include the value of the floating rate
securities issued by the trust.
INVERSE FLOATERS: Inverse floating rate securities are created by depositing a
municipal bond, typically with a fixed interest rate, into a special purpose
trust created by a broker-dealer. This trust, in turn, (a) issues floating rate
certificates typically paying short-term tax-exempt interest rates to third
parties in amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate (sometimes
referred to as an "inverse floater") to an investor (such as a Fund) interested
in gaining investment exposure to a long-term municipal bond. The income
received by the holder of the inverse floater varies inversely with the
short-term rate paid to the floating rate certificates' holders, and in most
circumstances the holder of the inverse floater bears substantially all of the
underlying bond's downside investment risk. The holder of the inverse floater
typically also benefits disproportionately from any potential appreciation of
the underlying bond's value. Hence, an inverse floater essentially represents an
investment in the underlying bond on a leveraged basis.
LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's
current annualized dividend divided by its current market price.
NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to
equal, on an after-tax basis, the yield of a municipal bond investment.
110
Other Useful
INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2006, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
For Funds listed on the New York Stock Exchange, each Fund's Chief Executive
Officer has submitted to the Exchange the annual CEO certification as required
by Section 303A.12(a) of the NYSE Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
INVESTMENT POLICY CHANGE
In February 2007, the Board of Trustees voted to remove investment policy
restrictions that limited the territorial bond holdings of these Funds to a
maximum of 10 percent of net assets. This change will give the Funds' portfolio
managers greater flexibility to achieve its investment objectives.
BOARD OF TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Carol E. Stone
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust Company
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
EACH FUND INTENDS TO REPURCHASE SHARES OF ITS OWN COMMON STOCK IN
THE FUTURE AT SUCH TIMES AND IN SUCH AMOUNTS AS IS DEEMED ADVISABLE.
NO SHARES WERE REPURCHASED DURING THE PERIOD COVERED BY THIS REPORT.
ANY FUTURE REPURCHASES WILL BE REPORTED TO SHAREHOLDERS IN THE NEXT
ANNUAL OR SEMIANNUAL REPORT.
111
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past
century, Nuveen Investments has adhered to the belief that the best
approach to investing is to apply conservative risk-management principles
to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity
and fixed-income solutions that are integral to a well-diversified core
portfolio. Our clients have come to appreciate this diversity, as well as
our continued adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS'
DIFFERENT NEEDS.
Managing $166 billion in assets, as of March 31, 2007, Nuveen Investments
offers access to a number of different asset classes and investing
solutions through a variety of products. Nuveen Investments markets its
capabilities under six distinct brands: NWQ, specializing in value-style
equities; Nuveen, managing fixed-income investments; Santa Barbara,
committed to growth equities; Tradewinds, specializing in global value
equities; Rittenhouse, focused on "blue-chip" growth equities; and
Symphony, with expertise in alternative investments as well as equity and
income portfolios.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers,
talk to your financial advisor, or call us at (800) 257-8787. Please read
the information provided carefully before you invest.
BE SURE TO OBTAIN A PROSPECTUS, WHERE APPLICABLE. INVESTORS SHOULD
CONSIDER THE INVESTMENT OBJECTIVE AND POLICIES, RISK CONSIDERATIONS,
CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. THE
PROSPECTUS CONTAINS THIS AND OTHER INFORMATION RELEVANT TO AN INVESTMENT
IN THE FUND. FOR A PROSPECTUS, PLEASE CONTACT YOUR SECURITIES
REPRESENTATIVE OR NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL
60606. PLEASE READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Learn more
about Nuveen Funds at
www.nuveen.com/cef
[LOGO]
NUVEEN
INVESTMENTS
EAN-B-0407D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen New Jersey Dividend Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP 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, 2007 (5) $ 10,223 $ 0 $ 0 $ 1,500
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 9,707 $ 0 $ 516 $ 2,900
------------------------------------------------------------------------------------------------------------------------------------
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".
(5) Fund changed fiscal year from June to April starting in (2007.)
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS (1) SERVICE PROVIDERS
-----------------------------------------------------------------------------------------------------------------------------
April 30, 2007 (2) $ 0 $ 0 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
June 30, 2006 $ 0 $ 2,400 $ 0
-----------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
-----------------------------------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees"
represents amounts billed to the Adviser exclusively for the preparation
for the Fund's tax return, the cost of which is borne by the Adviser. In
the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as
independent registered public accounting firm, these fees amounted to
$161,400 in 2006. Beginning with fund fiscal years ending August 31, 2006,
Ernst & Young LLP will no longer prepare the fund tax returns.
(2) Fund changed fiscal year from June to April starting in (2007.)
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. The Audit
Committee is required to pre-approve non-audit services that Ernst & Young LLP
provides to the Adviser and any Affiliated Fund Services Provider, if the
engagement related directly to the Fund's operations and financial reporting
(except for those subject to the de minimis exception described above). The
Audit Committee requested and received information from Ernst & Young LLP about
any non-audit services that Ernst & Young LLP rendered during the Fund's last
fiscal year to the Adviser and any Affiliated Fund Service Provider. The
Committee considered this information in evaluating Ernst & Young LLP's
independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------
April 30, 2007 (1) $ 1,500 $ 0 $ 0 $ 1,500
June 30, 2006 $ 3,416 $ 2,400 $ 0 $ 5,816
"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.
(1) Fund changed fiscal year from June to April starting in (2007.)
Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit
Committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the Audit Committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the Audit Committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the Audit Committee at
the next Audit Committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
Audit Committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider, Eugene S. Sunshine and effective January 1, 2007,
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 of Trustees on its
control activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
would either engage an independent third party to determine how the proxy should
be voted or vote the proxy with the consent, or based on the instructions, of
the registrant's Board of Trustees or its representative. A member of NAM's
legal department would oversee the administration of the voting, and ensure that
records were maintained in accordance with Rule 206(4)-6, reports were filed
with the SEC on Form N-PX, and the results provided to the registrant's Board of
Trustees and made available to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
CATHRYN 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:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS*
--------------------------------------------------------------------------------
Cathryn P. Steeves Registered Investment Company 41 $8.26 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 0 0
* Assets are as of April 30, 2007. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of April 30, 2007, the S&P/Investortools Municipal Bond index was
comprised of 50,300 securities with an aggregate current market value of $
985.260 billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. Each portfolio manager is eligible to receive
bonus compensation in the form of equity-based awards issued in securities
issued by Nuveen Investments, Inc. The amount of such compensation is dependent
upon the same factors articulated for cash bonus awards but also factors in his
long-term potential with the firm.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the Registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, 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, 2007, 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
DOLLAR RANGE SECURITIES BENEFICIALLY
OF EQUITY OWNED IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
------------------------------------------------------------------------------------------------------------------------------------
Cathryn Steeves Nuveen New Jersey Dividend Advantage Municipal Fund $0 $10,000-$50,000
------------------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO:
Cathryn P. Steeves, PhD is currently a portfolio manager for 42 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, an MA, MPhil and a PhD from Columbia University.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrants Board implemented after the registrant
last provided disclosure in response to this item.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")
(17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
Attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. Not applicable.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: July 9, 2007
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: July 9, 2007
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: July 9, 2007
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.