-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UGc/ko56/l9tKT6I5iQaKoK47VpkqPx4nap0YY/oe4ZA2eL1HEAAzigeHZjDz0vK 5h6S/57M0MbWdP1oGQKQzg== 0000891804-07-000796.txt : 20070309 0000891804-07-000796.hdr.sgml : 20070309 20070309085236 ACCESSION NUMBER: 0000891804-07-000796 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20061231 FILED AS OF DATE: 20070309 DATE AS OF CHANGE: 20070309 EFFECTIVENESS DATE: 20070309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2 CENTRAL INDEX KEY: 0001161070 IRS NUMBER: 752998783 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-10551 FILM NUMBER: 07682550 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178146 N-CSRS 1 file001.txt NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNI FUND 2 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 811-10551 --------------------- Nuveen New Jersey Dividend Advantage Municipal Fund 2 ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: June 30 ------------------ Date of reporting period: December 31, 2006 ------------------ 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. SEMIANNUAL REPORT December 31, 2006 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 Photo of: Woman and man at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Woman Photo of: Man and child NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. It only takes a minute to sign up for E-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready -- no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report, and save it on your computer if you wish. ---------------------- DELIVERY DIRECT TO YOUR E-MAIL INBOX ---------------------- IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the six-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. 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 February 15, 2007 Nuveen Investments Municipal Closed-End Funds (NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY) Portfolio Manager's COMMENTS Portfolio manager Cathryn Steeves discusses key investment strategies and the six month performance of the eight Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility for the New Jersey and Pennsylvania Funds in June 2006. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE SIX-MONTH PERIOD ENDED DECEMBER 31, 2006? As the yield curve flattened during this six-month period, we continued to emphasize a disciplined approach to duration1 management and yield curve positioning. In selecting new additions for our portfolios, our activity focused mainly on attractively priced bonds in the longer range of the yield curve. We believed that bonds in this part of the curve generally offered better value and reward opportunities more commensurate with their risk levels. To help us maintain the Funds' durations within our preferred strategic range, we also were selectively selling holdings with shorter durations in all the Funds. At the same time, we maintained the Funds' weightings of lower-quality bonds. However, since these types of bonds performed well over this period, we generally found fewer attractive purchase opportunities in the market. In the New Jersey Funds, we added health care bonds, with an emphasis on hospital bonds. In the Pennsylvania Funds, we added higher education and charter school bonds, as well as health care bonds such as Continuing Care Retirement Community (CCRC) securities. In NQP, NPY, NXM and NVY, we also purchased inverse floaters which had the benefit of increasing the Funds' distributable income and bringing the duration closer to our preferred strategic range. In addition, we also purchased zero coupon bonds which added incremental income as well. 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 4 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 12/31/06 6-MONTH 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------- NEW JERSEY FUNDS - -------------------------------------------------------------------------------- NQJ 5.86% 5.45% 7.21% 6.38% - -------------------------------------------------------------------------------- NNJ 5.92% 4.93% 6.79% 6.69% - -------------------------------------------------------------------------------- NXJ 6.11% 5.61% 8.17% NA - -------------------------------------------------------------------------------- NUJ 6.08% 5.92% NA NA - -------------------------------------------------------------------------------- Lipper New Jersey Municipal Debt Fund Average2 6.69% 6.80% 7.80% 6.42% - -------------------------------------------------------------------------------- PENNSYLVANIA FUNDS - -------------------------------------------------------------------------------- NQP 6.16% 5.02% 7.39% 5.92% - -------------------------------------------------------------------------------- NPY 6.17% 5.35% 7.04% 6.66% - -------------------------------------------------------------------------------- NXM 6.04% 5.72% 8.54% NA - -------------------------------------------------------------------------------- NVY 5.94% 5.43% NA NA - -------------------------------------------------------------------------------- Lipper Pennsylvania Municipal Debt Funds Average3 6.39% 6.17% 7.60% 6.51% - -------------------------------------------------------------------------------- Lehman Brothers Municipal Bond Index4 4.55% 4.84% 5.53% 5.76% - -------------------------------------------------------------------------------- *Six-month returns are cumulative; returns for one, five and ten years are annualized. Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 2 The Lipper New Jersey Municipal Debt Funds category average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 14 funds, 1 year, 14 funds; 5 years, 11 funds; and 10 years, 7 funds. Fund and Lipper returns assume reinvestment of dividends. 3 The Lipper Pennsylvania Municipal Debt Funds category average is calculated using the returns of all closed-end funds in this category for each period as follows: 6 months, 10 funds, 1 year, 10 funds; 5 years, 8 funds; and 10 years, 5 funds. Fund and Lipper returns assume reinvestment of dividends. 4 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 indexes do not reflect any expenses. 5 For the six months ended December 31, 2006, 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, as well. With bonds rated BBB or lower bonds generally outperforming other credit quality sectors during this period, all of these Funds benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor demand for the higher yields typically associated with lower-quality bonds, which drove up their value. The Dividend Advantage Funds, NXJ, NUJ, NXM, and NVY, can invest a portion of their assets in bonds rated BB and lower, which was particularly beneficial to performance during this period. In particular, NUJ's overall heavier weighting to lower credit quality securities helped its performance. NQP, which cannot invest in below investment-grade bonds, had the smallest exposure to lower credit categories among these Funds, detracting from its six-month performance. Among the lower-rated holdings making contributions to the Funds' total returns for this period were health care (including hospitals). In Pennsylvania, the funds exposures to the single family housing sector were a minor negative, as this sector generally underperforms in declining interest rate environments. 6 As the yield curve continued to flatten over the course of this period, bonds with shorter maturities generally underperformed longer maturity bonds. In general, the Funds had limited exposure to the shortest maturities which was positive, and generally had an emphasis on intermediate duration bonds which was also favorable. On the other hand, the Funds had limited exposure to the very longest part of the curve, which had a slight countervailing negative impact. Another factor in the six-month performance of these Funds, especially relative to that of the unleveraged Lehman Brothers Municipal Bond Index, was the use of financial leverage. While leverage can add volatility to a Fund's NAV and share price, this strategy can also provide opportunities for additional income and total return for common shareholders. The Funds' leveraging strategy positively impacted their results over this period. 7 Dividend and Share Price INFORMATION As previously noted, all of the Funds in this report use leverage to potentially enhance opportunities for additional income for common shareholders. While the Fund's leveraging strategy continued to produce incremental income, the extent of this benefit was reduced during this period as short-term rates rose, causing the Funds' borrowing cost to rise, reducing some of the benefits of leveraging. This resulted in one monthly dividend reduction in NQJ, NNJ and NVY. However, our duration lengthening strategies allowed us to raise the dividend in NQP as the period continued. NXJ, NUJ, NPY and NXM's dividend remained unchanged throughout the six month period. In addition, due to normal portfolio activity, common shareholders of the 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 $0.003 - -------------------------------------------------------------------------------- NXJ $0.0053 -- - -------------------------------------------------------------------------------- NUJ $0.0033 -- - -------------------------------------------------------------------------------- NQP -- -- - -------------------------------------------------------------------------------- NPY -- -- - -------------------------------------------------------------------------------- NXM -- -- - -------------------------------------------------------------------------------- NVY $0.0244 -- - -------------------------------------------------------------------------------- These distributions had a slight negative impact on the Funds' earning power per common share and were a minor factor in the per share dividend reductions noted above. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of December 31, 2006, NNJ had positive UNII balances for both financial statement and, based on our best estimates, 8 tax purposes, while the rest of the Funds had positive UNII balances, based on our best estimates, for tax purposes and negative UNII balances for financial statement purposes. At the end of the reporting period, the Funds' share prices were trading at discounts to their NAVs as shown in the accompanying chart: 12/31/06 6-MONTH AVERAGE DISCOUNT PREMIUM/DISCOUNT - -------------------------------------------------------------------------------- NQJ -6.20% -5.86% - -------------------------------------------------------------------------------- NNJ -4.64% -3.75% - -------------------------------------------------------------------------------- NXJ 4.41% 1.46% - -------------------------------------------------------------------------------- NUJ 4.75% 3.09% - -------------------------------------------------------------------------------- NQP -11.24% -11.67% - -------------------------------------------------------------------------------- NPY -8.27% - 8.55% - -------------------------------------------------------------------------------- NXM 2.85% 2.60% - -------------------------------------------------------------------------------- NVY 0.19% -1.73% - -------------------------------------------------------------------------------- 9 Nuveen New Jersey Investment Quality Municipal Fund, Inc. NQJ Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 76% AA 6% A 4% BBB 11% BB or Lower 2% N/R 1% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jan 0.0655 Feb 0.0655 Mar 0.062 Apr 0.062 May 0.062 Jun 0.0575 Jul 0.0575 Aug 0.0575 Sep 0.0545 Oct 0.0545 Nov 0.0545 Dec 0.0545 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 14.23 14.44 14.63 14.75 14.62 14.81 14.85 15.07 15.11 15.21 15 14.8 14.72 14.65 14.77 14.55 14.65 14.63 14.65 14.48 14.69 14.47 14.39 14.08 13.83 13.67 13.7 13.76 13.78 13.71 13.78 14 14.08 14.01 14.1 14.16 14.2 14.11 14.1 14.1 14.05 14.05 13.89 13.89 13.97 14.06 14.18 14.16 14.2 14.2 14.29 14.25 14.19 13.95 14.08 14.08 14.72 14.5 14.55 14.51 14.6 14.65 14.8 14.7 14.72 14.8 14.77 14.76 14.7 14.73 14.55 14.57 14.65 14.65 14.7 14.65 14.62 14.56 14.64 14.6 14.63 14.63 14.74 14.74 14.76 14.73 14.65 14.69 14.63 14.75 14.61 14.48 14.38 14.44 14.36 14.42 14.69 14.59 14.54 14.49 14.5 14.47 14.42 14.4 14.46 14.39 14.31 14.25 14.11 14.07 14.08 14.01 13.96 13.81 13.85 13.83 13.8 13.82 13.77 13.6501 13.67 13.63 13.63 13.67 13.65 13.7 13.76 13.77 13.76 13.78 13.78 13.81 13.75 13.76 13.71 13.78 13.75 13.63 13.71 13.78 13.93 13.96 13.97 14 14 14.03 14.03 14.01 14.02 14.08 14.1 14.1 14.09 14.09 14.01 13.99 13.97 14.02 14.05 14.0999 14.1 14.18 14.11 14.15 14.16 14.2 14.26 14.28 14.19 14.2 14.17 14.1 14.08 14.11 14.11 14.16 14.1 14.04 14.1 14.04 14.04 14.0601 14.09 14.1 14.1 14.14 14.2 14.08 14.05 14.05 14.06 14.09 14.11 14.1 14.05 14.05 14.02 13.94 13.87 13.89 13.88 13.85 13.86 13.9 13.89 13.84 13.9 13.94 13.95 13.97 14.04 14.08 14.13 14.1799 14.06 14.11 14.08 14.06 14.1 14.18 14.15 14.16 14.15 14.13 14.16 14.18 14.22 14.2 14.2 14.23 14.28 14.26 14.26 14.29 14.3199 14.3601 14.37 14.34 14.25 14.31 14.36 14.22 14.15 14.19 14.14 14.05 13.99 13.98 13.95 14.05 14.05 14 14.0799 12/31/06 14.0799 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.08 - ------------------------------------ Common Share Net Asset Value $15.01 - ------------------------------------ Premium/(Discount) to NAV -6.20% - ------------------------------------ Market Yield 4.64% - ------------------------------------ Taxable-Equivalent Yield1 6.87% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $307,378 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.69 - ------------------------------------ Leverage-Adjusted Duration 7.51 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 5.47% 5.86% - ------------------------------------ 1-Year 5.05% 5.45% - ------------------------------------ 5-Year 5.14% 7.21% - ------------------------------------ 10-Year 5.54% 6.38% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Transportation 17.8% - ------------------------------------ Tax Obligation/Limited 17.6% - ------------------------------------ Education and Civic Organizations 13.7% - ------------------------------------ U.S. Guaranteed 12.5% - ------------------------------------ Health Care 12.0% - ------------------------------------ Tax Obligation/General 7.9% - ------------------------------------ Water and Sewer 5.0% - ------------------------------------ Other 13.5% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.5%. 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. 10 Nuveen New Jersey Premium Income Municipal Fund, Inc. NNJ Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 77% AA 7% A 6% BBB 7% BB or Lower 1% N/R 2% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jan 0.064 Feb 0.064 Mar 0.064 Apr 0.064 May 0.064 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0575 Oct 0.0575 Nov 0.0575 Dec 0.0575 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 14.63 15.01 14.83 14.93 15.24 15.38 15.5 15.65 15.44 15.51 15.44 15.26 14.84 15.13 15.08 15.26 14.97 14.74 14.88 14.57 14.6 14.35 14.75 14.6 14.42 14.25 14.16 14.26 14.25 14.35 14.6 14.46 14.61 14.4 14.68 14.68 14.96 14.88 14.77 14.59 14.75 14.65 14.48 14.53 14.71 14.77 14.75 14.57 14.72 14.73 14.8 14.89 14.71 14.54 14.59 14.59 14.84 14.77 14.9 15.08 15.01 15.13 15.04 14.96 15.06 15.1 15.08 14.95 15.07 15 15.26 14.91 14.9 14.84 14.89 14.97 14.64 14.73 14.75 14.83 14.74 14.74 14.79 14.7501 14.78 14.82 14.88 14.81 14.8 14.7 14.67 14.57 14.53 14.6 14.45 14.53 14.6 14.49 14.37 14.37 14.47 14.35 14.57 14.6 14.85 14.75 14.7 14.67 14.69 14.71 14.6 14.5499 14.55 14.4 14.48 14.42 14.58 14.7 14.39 14.31 14.25 14.15 14.12 14.19 13.99 14.16 14.26 14.16 14.21 14.25 14.26 14.3 14.21 14.3 14.35 14.35 14.47 14.58 14.53 14.6 14.68 14.68 14.58 14.55 14.46 14.46 14.55 14.54 14.5999 14.61 14.5301 14.5 14.39 14.47 14.4 14.4 14.52 14.64 14.7 14.68 14.72 14.6 14.6 14.6 14.68 14.63 14.75 14.92 14.93 14.96 15.01 14.83 14.93 14.88 14.82 14.82 14.75 14.85 14.77 14.66 14.67 14.63 14.65 14.59 14.54 14.61 14.71 14.73 14.75 14.75 14.75 14.73 14.72 14.73 14.65 14.72 14.69 14.6 14.52 14.48 14.5 14.46 14.53 14.52 14.53 14.53 14.58 14.62 14.64 14.71 14.72 14.82 14.88 14.93 14.77 14.77 14.76 14.75 14.7 14.75 14.65 14.68 14.6 14.62 14.57 14.71 14.67 14.72 14.7299 14.65 14.76 14.79 14.69 14.8 14.89 14.92 14.85 15.01 14.89 14.9 14.96 14.79 14.72 14.71 14.66 14.57 14.47 14.56 14.54 14.56 14.6 14.49 14.59 12/31/06 14.59 FUND SNAPSHOT - ------------------------------------ Common Share Price $14.59 - ------------------------------------ Common Share Net Asset Value $15.30 - ------------------------------------ Premium/(Discount) to NAV -4.64% - ------------------------------------ Market Yield 4.73% - ------------------------------------ Taxable-Equivalent Yield1 7.01% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $184,364 - ------------------------------------ Average Effective Maturity on Securities (Years) 15.32 - ------------------------------------ Leverage-Adjusted Duration 7.86 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 5.58% 5.92% - ------------------------------------ 1-Year 6.05% 4.93% - ------------------------------------ 5-Year 6.34% 6.79% - ------------------------------------ 10-Year 7.11% 6.69% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/Limited 21.2% - ------------------------------------ Transportation 15.1% - ------------------------------------ U.S. Guaranteed 14.0% - ------------------------------------ Education and Civic Organizations 11.8% - ------------------------------------ Health Care 9.7% - ------------------------------------ Tax Obligation/General 9.0% - ------------------------------------ Water and Sewer 8.7% - ------------------------------------ Other 10.5% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.5%. 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. 11 Nuveen New Jersey Dividend Advantage Municipal Fund NXJ Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 73% AA 4% A 9% BBB 10% BB or Lower 2% N/R 2% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jan 0.0715 Feb 0.0715 Mar 0.068 Apr 0.068 May 0.068 Jun 0.0645 Jul 0.0645 Aug 0.0645 Sep 0.0645 Oct 0.0645 Nov 0.0645 Dec 0.0645 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 15.21 15.2 15.48 15.35 15.91 15.43 15.41 16.55 15.77 15.48 15.99 15.45 15.26 15.52 15 15.59 15.7 15.23 15.35 15.26 15.23 14.91 14.99 14.98 14.67 14.37 14.35 14.44 14.47 14.5 14.75 14.95 14.84 14.75 14.99 15.14 15.06 15.16 15.29 15.46 15.75 15.72 15.67 15.48 15.8 15.45 15.45 15.51 15.42 15.42 15.87 15.36 15.64 15.75 15.85 15.85 15.26 15.26 15.27 15.53 15.27 15.52 15.5 15.7 15.6 15.26 15 15.0601 15.4 15.2 15.59 15.4 15.3 15.37 15.33 15.7 15.25 15.6 15.7 15.55 15.23 15.23 15.15 15.25 15.34 15.34 15.35 15.35 15.3001 15.3 15.35 15.26 15.25 15.24 15.15 15.1 15.23 15.1101 14.94 14.7 15.04 14.91 14.75 14.85 14.99 14.99 14.75 14.8501 14.95 14.95 14.98 14.97 14.92 14.68 14.67 14.67 14.57 14.67 14.64 14.56 14.37 14.4 14.23 14.4 14.42 14.35 14.44 14.4 14.4 14.47 14.45 14.4 14.35 14.45 14.5 14.56 14.45 14.65 14.75 14.75 14.8 14.71 14.89 14.9899 14.95 15.15 15 14.82 14.92 14.8401 14.88 14.81 14.7799 14.87 14.75 14.83 14.9 14.86 14.88 14.99 14.94 15 14.98 15.2 15.1375 15.2 15.07 15.07 15.08 15.06 15.3 14.95 15.18 15.16 15.19 15.31 15.3368 15.2 15.29 15.29 15.21 15.3 15.35 15.46 15.4999 15.7 15.8 15.59 15.75 15.75 15.71 15.6 15.74 15.62 15.72 15.55 15.75 15.7 15.5601 15.67 15.79 15.64 15.55 15.55 15.48 15.3 15.42 15.57 15.8 15.8 15.85 15.9 15.75 15.63 15.4501 15.6226 15.59 15.38 15.45 15.45 15.45 15.45 15.55 15.57 15.51 15.7 15.39 15.42 15.42 15.51 15.58 15.61 15.69 15.87 15.8789 15.81 15.64 15.8 15.36 15.7 15.65 15.5 15.55 15.64 15.62 15.71 15.8 15.65 15.75 15.85 15.85 15.8 15.85 12/31/06 15.85 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.85 - ------------------------------------ Common Share Net Asset Value $15.18 - ------------------------------------ Premium/(Discount) to NAV 4.41% - ------------------------------------ Market Yield 4.88% - ------------------------------------ Taxable-Equivalent Yield1 7.23% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $99,709 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.73 - ------------------------------------ Leverage-Adjusted Duration 7.35 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 13.27% 6.11% - ------------------------------------ 1-Year 9.48% 5.61% - ------------------------------------ 5-Year 7.95% 8.17% - ------------------------------------ Since Inception 7.07% 7.12% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 18.8% - ------------------------------------ Transportation 16.9% - ------------------------------------ Water and Sewer 15.7% - ------------------------------------ Tax Obligation/Limited 14.8% - ------------------------------------ Education and Civic Organizations 11.9% - ------------------------------------ Health Care 11.2% - ------------------------------------ Other 10.7% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.5%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2006 of $0.0053 per share. 12 Nuveen New Jersey Dividend Advantage Municipal Fund 2 NUJ Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 62% AA 5% A 14% BBB 14% BB or Lower 3% N/R 2% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jan 0.073 Feb 0.073 Mar 0.069 Apr 0.069 May 0.069 Jun 0.066 Jul 0.066 Aug 0.066 Sep 0.066 Oct 0.066 Nov 0.066 Dec 0.066 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 16.52 16.6 16.44 16.95 16.55 16.59 16.44 16.55 16.17 15.72 15.95 15.85 15.63 15.89 15.58 15.78 15.55 15.49 15.4 14.75 15.2 15.12 15.5 15.13 15.01 14.9 14.9 15.09 14.99 15.2 15.02 15.35 15.63 15.59 15.35 15.59 15.79 15.85 15.59 15.5 15.9 15.9 16.04 16 16.4 16.11 16.08 15.9 15.78 15.78 15.99 16.09 16 15.85 16.1 16.1 15.6301 15.58 15.97 15.83 15.79 15.89 16.02 16.1 15.9 15.83 15.58 15.9 15.75 15.9 15.78 15.71 15.6 15.61 15.87 15.55 15.41 15.71 16.11 16.01 15.49 15.49 15.4 15.4 15.36 15.56 15.4 15.4 15.15 15.23 15 14.75 14.7 15.05 15 15.01 15.2 15.21 15.21 14.94 15 15.12 15.38 15.4 15.6 15.5 15.25 15.35 15.4 15.15 15.13 15.27 15.11 15.01 15.05 15.01 14.96 15 14.96 14.96 14.9 14.95 14.79 14.8 14.88 14.9 15.09 15.07 15 14.9925 15 15.18 15.2 15.0744 15.2 15.15 15.14 15.08 15.03 15.02 15.24 15.3 15.2001 15.35 15.35 15.29 15.49 15.5 15.65 15.63 15.77 15.6 15.28 15.6 15.59 15.26 15.26 15.44 15.24 15.35 15.27 15.32 15.32 15.4 15.59 15.6 15.67 15.72 15.76 15.79 15.74 15.54 15.76 15.85 15.75 15.85 15.6299 15.57 15.59 15.48 15.59 15.59 15.59 15.5 15.586 15.96 16.05 16 15.9 15.9 15.9 16.12 16.06 15.86 15.9 15.9 16.01 16.14 16.25 16.04 16.22 16.05 16 16.15 16 16 16.1 16 16.08 16.4 16.36 16.35 16.35 16.25 16.11 16.06 16.31 16.12 16.01 16.08 16 16 16.13 15.96 15.9 15.85 15.81 15.78 15.78 15.78 15.79 15.88 15.86 15.99 15.99 16.01 16.05 16.2 16.09 15.88 15.99 15.87 15.9 16 15.99 15.99 16 16.05 15.85 15.98 16.09 16.01 16.1 12/31/06 16.1 FUND SNAPSHOT - ------------------------------------ Common Share Price $16.10 - ------------------------------------ Common Share Net Asset Value $15.37 - ------------------------------------ Premium/(Discount) to NAV 4.75% - ------------------------------------ Market Yield 4.92% - ------------------------------------ Taxable-Equivalent Yield1 7.29% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $69,458 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.86 - ------------------------------------ Leverage-Adjusted Duration 7.23 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 10.79% 6.08% - ------------------------------------ 1-Year 2.73% 5.92% - ------------------------------------ Since Inception 7.80% 7.83% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 19.6% - ------------------------------------ Health Care 17.8% - ------------------------------------ Transportation 15.0% - ------------------------------------ Tax Obligation/Limited 11.3% - ------------------------------------ Education and Civic Organizations 10.6% - ------------------------------------ Utilities 6.6% - ------------------------------------ Long-Term Care 6.1% - ------------------------------------ Other 13.0% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.5%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders capital gains distributions in December 2006 of $0.0033 per share. 13 Nuveen Pennsylvania Investment Quality Municipal Fund NQP Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 70% AA 19% A 5% BBB 5% N/R 1% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Jan 0.0575 Feb 0.0575 Mar 0.0545 Apr 0.0545 May 0.0545 Jun 0.0515 Jul 0.0515 Aug 0.0515 Sep 0.0515 Oct 0.0515 Nov 0.0535 Dec 0.0535 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 13.75 13.93 13.94 14.01 13.85 13.92 13.73 13.72 13.72 13.7 13.64 13.68 13.67 13.82 13.64 13.52 13.55 13.39 13.4 13.27 13.17 13.24 13.34 13.21 13.09 13.04 12.95 13.04 13.08 12.83 12.75 13.1 13.21 13.2 13.21 13.16 13.35 13.33 13.27 13.49 13.55 13.54 13.4 13.37 13.48 13.61 13.71 13.65 13.67 13.69 13.81 13.83 13.76 13.58 13.58 13.58 13.67 13.66 13.7 13.74 13.75 13.82 13.8 13.75 13.67 13.66 13.64 13.5 13.54 13.46 13.52 13.5 13.55 13.5 13.55 13.55 13.62 13.54 13.55 13.44 13.39 13.39 13.43 13.43 13.35 13.35 13.4 13.42 13.37 13.3601 13.37 13.27 13.2 13.2 13.15 13.15 13.17 13.27 13.22 13.19 13.2 13.24 13.35 13.32 13.25 13.34 13.29 13.33 13.25 13.21 13.21 13.24 13.15 13.1701 13.11 13.09 13.08 13.13 13.08 13.04 13.04 13 12.95 12.9 12.96 12.9501 13.04 13.05 13.13 13.08 13.13 13.15 13.03 12.88 12.83 12.84 12.77 12.85 12.86 12.75 12.83 12.88 12.97 12.99 13.1 13.13 13.13 13.18 13.17 13.21 13.21 13.22 13.21 13.24 13.2 13.13 13.15 13.19 13.16 13.21 13.23 13.25 13.16 13.22 13.16 13.24 13.28 13.43 13.38 13.35 13.28 13.18 13.22 13.33 13.37 13.39 13.3 13.27 13.27 13.3399 13.31 13.38 13.41 13.49 13.5 13.53 13.58 13.54 13.55 13.55 13.5 13.57 13.59 13.59 13.54 13.54 13.57 13.47 13.39 13.4 13.35 13.32 13.23 13.3 13.37 13.3 13.47 13.41 13.5 13.48 13.47 13.6 13.63 13.71 13.61 13.6 13.62 13.65 13.66 13.71 13.73 13.72 13.65 13.63 13.65 13.67 13.65 13.67 13.69 13.71 13.76 13.8 13.81 13.81 13.84 13.83 13.89 13.85 13.83 13.86 13.85 13.77 13.73 13.76 13.68 13.69 13.6 13.62 13.58 13.67 13.67 13.59 13.58 12/31/06 13.58 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.58 - ------------------------------------ Common Share Net Asset Value $15.30 - ------------------------------------ Premium/(Discount) to NAV -11.24% - ------------------------------------ Market Yield 4.73% - ------------------------------------ Taxable-Equivalent Yield1 6.76% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $249,342 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.96 - ------------------------------------ Leverage-Adjusted Duration 9.51 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 7.31% 6.16% - ------------------------------------ 1-Year 4.15% 5.02% - ------------------------------------ 5-Year 4.28% 7.39% - ------------------------------------ 10-Year 4.64% 5.92% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 16.8% - ------------------------------------ Education and Civic Organizations 16.6% - ------------------------------------ Tax Obligation/Limited 15.6% - ------------------------------------ U.S. Guaranteed 15.3% - ------------------------------------ Water and Sewer 8.2% - ------------------------------------ Transportation 6.6% - ------------------------------------ Health Care 5.7% - ------------------------------------ Housing/Single Family 4.9% - ------------------------------------ Other 10.3% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 14 Nuveen Pennsylvania Premium Income Municipal Fund 2 NPY Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 74% AA 9% A 6% BBB 6% BB or Lower 3% N/R 2% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Jan 0.063 Feb 0.063 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Oct 0.0555 Nov 0.0555 Dec 0.0555 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 14.14 14.36 14.33 14.25 14.23 14.18 14.21 14.13 14.17 14.06 13.84 13.86 13.69 13.71 13.65 13.47 13.41 13.46 13.61 13.3 13.33 13.32 13.34 13.21 13.01 12.87 12.96 13.06 13.04 13.13 12.99 13.11 13.26 13.32 13.38 13.34 13.4 13.4 13.4 13.46 13.48 13.54 13.46 13.31 13.36 13.46 13.57 13.51 13.54 13.44 13.59 13.62 13.55 13.58 13.54 13.54 13.69 13.72 13.69 13.78 13.67 13.71 13.7 13.75 13.72 13.73 13.65 13.64 13.65 13.55 13.47 13.44 13.48 13.41 13.45 13.41 13.5 13.53 13.44 13.4 13.46 13.46 13.47 13.5001 13.52 13.6699 13.61 13.6 13.56 13.64 13.4 13.3 13.39 13.31 13.27 13.29 13.33 13.32 13.35 13.2601 13.23 13.32 13.29 13.29 13.3 13.34 13.27 13.37 13.34 13.23 13.21 13.23 13.16 13.04 13.0699 13.01 13.01 13.03 13.13 13.02 12.87 12.89 12.8 12.78 12.9 12.96 13.06 13.08 13.14 13.04 13.05 13.07 13.06 13.08 13.13 13.06 13.05 13.06 13.05 12.99 12.9501 12.9 12.99 13.06 13.11 13.12 13.18 13.25 13.23 13.26 13.34 13.36 13.38 13.45 13.32 13.35 13.39 13.4 13.38 13.38 13.45 13.38 13.4 13.33 13.34 13.39 13.39 13.44 13.42 13.4 13.44 13.26 13.36 13.4 13.37 13.41 13.38 13.39 13.4 13.46 13.48 13.46 13.46 13.46 13.54 13.42 13.5395 13.57 13.48 13.48 13.46 13.53 13.55 13.53 13.54 13.47 13.5101 13.45 13.51 13.46 13.47 13.43 13.42 13.32 13.3099 13.3 13.33 13.33 13.37 13.36 13.43 13.4205 13.51 13.53 13.46 13.49 13.51 13.48 13.53 13.57 13.51 13.55 13.54 13.5 13.51 13.52 13.5 13.54 13.44 13.46 13.49 13.54 13.54 13.59 13.66 13.71 13.68 13.65 13.62 13.66 13.72 13.6 13.5601 13.55 13.52 13.45 13.49 13.56 13.58 13.57 13.48 13.45 13.5399 12/31/06 13.5399 FUND SNAPSHOT - ------------------------------------ Common Share Price $13.54 - ------------------------------------ Common Share Net Asset Value $14.76 - ------------------------------------ Premium/(Discount) to NAV -8.27% - ------------------------------------ Market Yield 4.92% - ------------------------------------ Taxable-Equivalent Yield1 7.03% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $233,657 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.77 - ------------------------------------ Leverage-Adjusted Duration 8.22 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 7.08% 6.17% - ------------------------------------ 1-Year 1.69% 5.35% - ------------------------------------ 5-Year 5.97% 7.04% - ------------------------------------ 10-Year 7.29% 6.66% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ U.S. Guaranteed 15.0% - ------------------------------------ Tax Obligation/General 14.7% - ------------------------------------ Education and Civic Organizations 13.3% - ------------------------------------ Transportation 11.7% - ------------------------------------ Health Care 9.6% - ------------------------------------ Tax Obligation/Limited 8.6% - ------------------------------------ Utilities 7.5% - ------------------------------------ Water and Sewer 6.5% - ------------------------------------ Other 13.1% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 15 Nuveen Pennsylvania Dividend Advantage Municipal Fund NXM Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 58% AA 18% A 11% BBB 6% BB or Lower 3% N/R 4% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE Jan 0.074 Feb 0.074 Mar 0.07 Apr 0.07 May 0.07 Jun 0.0665 Jul 0.0665 Aug 0.0665 Sep 0.0665 Oct 0.0665 Nov 0.0665 Dec 0.0665 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 15.65 17 15.8 16.8 16.49 16.8 15.7 15.7 15.49 15.8 16.08 16.25 16.1 16.05 15.9 16.1 16.05 16.2 15.96 15.95 16.1 16.1 16.21 15.61 15.28 15.2 15.1 15.28 15.18 15.14 15.3 15.45 15.54 15.46 15.55 15.72 15.77 15.39 15.61 15.75 15.83 15.96 15.61 15.9 15.8 15.95 16.28 16 16.15 16.15 16.12 16.14 16.4 15.82 15.89 15.89 16.1 15.9 15.9 15.8 15.8 16.05 16 16.24 16.22 16.08 15.9 15.9 15.9 16.1 16.1 15.9 15.9 15.8 15.8 16.05 16.3 16.39 16.15 16.32 16.2 16.2 16.1 16.45 16.3 16.15 15.96 16.62 16.35 16.32 16 15.95 15.95 16.15 16.15 16.05 16.1 16.35 16.05 16.1 16.1 16.1 16.13 16.28 16.36 16.21 16 15.78 15.84 15.75 15.61 15.56 15.5 15.34 15.36 15.28 15.28 15.19 15.27 15.3 15.2 15.2 15.2 15.01 15 15.1 15.28 14.93 15.02 15.18 15.4 15.4 15.4 15.14 15.14 15.38 15.2 15.14 15.3 15.3 15.79 15.79 15.45 15.41 15.45 15.33 15.41 15.46 15.53 15.54 15.54 15.5 15.5 15.5 15.46 15.5 15.5 15.45 15.7 15.55 15.94 15.76 15.72 15.62 15.72 15.95 15.7 15.6 15.6 15.77 15.79 15.36 15.33 15.39 15.46 15.74 15.77 15.78 15.61 15.6 15.6 15.57 15.55 15.75 15.99 15.83 15.99 15.91 15.83 15.83 15.8 15.8101 15.75 15.8 15.96 15.96 16.01 15.84 15.8 15.61 15.61 15.61 15.8 15.8 15.9 15.91 15.91 16.15 16.15 15.8 15.8 15.84 15.9 15.8726 15.95 16.15 16.08 16.2 16.07 16.28 15.85 15.95 16.01 16.1 16 16 15.87 16.15 16.15 16.05 16.07 16.24 16.16 16.12 16.14 16.05 16.09 16.07 16.14 16.34 16.34 16.34 16.34 16.4 16.15 15.85 15.87 15.88 15.82 15.91 15.9 15.83 15.89 12/31/06 15.89 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.89 - ------------------------------------ Common Share Net Asset Value $15.45 - ------------------------------------ Premium/(Discount) to NAV 2.85% - ------------------------------------ Market Yield 5.02% - ------------------------------------ Taxable-Equivalent Yield1 7.17% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $51,383 - ------------------------------------ Average Effective Maturity on Securities (Years) 16.98 - ------------------------------------ Leverage-Adjusted Duration 7.86 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 7.92% 6.04% - ------------------------------------ 1-Year 5.76% 5.72% - ------------------------------------ 5-Year 8.46% 8.54% - ------------------------------------ Since Inception 7.85% 8.19% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Education and Civic Organizations 22.2% - ------------------------------------ Health Care 12.5% - ------------------------------------ Tax Obligation/General 11.2% - ------------------------------------ U.S. Guaranteed 11.0% - ------------------------------------ Long-Term Care 7.9% - ------------------------------------ Tax Obligation/Limited 7.5% - ------------------------------------ Transportation 7.4% - ------------------------------------ Housing/Single Family 5.0% - ------------------------------------ Industrials 4.5% - ------------------------------------ Other 10.8% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 16 Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 NVY Performance OVERVIEW As of December 31, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) AAA/U.S. Guaranteed 60% AA 20% A 4% BBB 9% BB or Lower 3% N/R 4% Bar Chart: 2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Jan 0.067 Feb 0.067 Mar 0.0635 Apr 0.0635 May 0.0635 Jun 0.0635 Jul 0.0635 Aug 0.0635 Sep 0.0635 Oct 0.0635 Nov 0.0635 Dec 0.061 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 1/01/06 14.6 15.3 14.75 14.9 15.08 15.2 14.8 14.62 14.83 15.01 15.22 14.98 14.94 14.62 14.37 14.37 14.28 14.5 14.27 14.15 14.37 14.5 14.79 14.72 14.75 14.5 14.16 14.24 14.12 14.16 14.15 14.99 14.7 14.86 14.95 15.19 15.08 15.23 15.33 15.25 15.31 15.36 15.35 15.3 15.34 15.16 15.34 15.26 15.35 15.18 15.49 15.35 15.54 15.75 15.44 15.44 14.94 14.9 14.9 14.75 14.7 14.62 14.63 14.53 14.59 14.63 14.37 14.37 14.2 14.36 14.37 14.26 14.2 14.3 14.35 14.28 14.24 14.35 14.57 14.66 14.5 14.5 14.43 14.37 14.26 14.35 14.27 14.39 14.26 14.26 14.15 14.15 14.38 14.5301 14.48 14.32 14.37 14.37 14.64 14.45 14.5 14.5 14.4799 14.5 14.75 14.79 14.53 14.6 14.65 14.6 14.72 14.6 14.44 14.5 14.65 14.75 14.75 14.75 14.92 14.75 14.5 14.25 14.03 14.03 14.0901 14.16 14.24 13.91 13.94 14.12 14.12 14.13 14.09 14.1 14.16 14.18 14.1 14.04 14.01 14.15 14.27 14.59 14.4951 14.5 14.99 14.99 14.8 14.91 14.71 14.7 14.7 14.7001 14.61 14.9 14.86 14.86 14.79 14.85 14.81 14.95 14.9 14.9 15.02 14.96 15.19 15.25 15.0101 15 14.95 15.08 15.08 15.07 15.18 15.23 15.18 15.1801 15.09 15.18 15.33 15.2 15.2 15.35 15.2822 15.25 15.21 15.11 15.23 15.34 15.31 15.31 15.26 15.31 15.35 15.54 15.36 15.36 15.36 15.4 15.4 15.35 15.28 15.3399 15.21 15.29 15.3 15.35 15.2 15.23 15.3 15.34 15.23 15.28 15.3 15.43 15.16 15.21 15.16 15.16 15.27 15.34 15.28 15.34 15.25 15.26 15.26 15.2 15.22 15.35 15.18 15.16 15.1601 15.3 15.3599 15.49 15.5 15.48 15.37 15.4899 15.35 15.6 15.6 15.6 15.47 15.54 15.64 15.64 15.63 15.56 15.75 15.58 15.6399 15.5 15.44 12/31/06 15.44 FUND SNAPSHOT - ------------------------------------ Common Share Price $15.44 - ------------------------------------ Common Share Net Asset Value $15.41 - ------------------------------------ Premium/(Discount) to NAV 0.19% - ------------------------------------ Market Yield 4.74% - ------------------------------------ Taxable-Equivalent Yield1 6.77% - ------------------------------------ Net Assets Applicable to Common Shares ($000) $57,407 - ------------------------------------ Average Effective Maturity on Securities (Years) 15.20 - ------------------------------------ Leverage-Adjusted Duration 7.99 - ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - ------------------------------------ ON SHARE PRICE ON NAV - ------------------------------------ 6-Month (Cumulative) 11.95% 5.94% - ------------------------------------ 1-Year 12.00% 5.43% - ------------------------------------ Since Inception 6.96% 7.77% - ------------------------------------ INDUSTRIES (as a % of total investments) - ------------------------------------ Tax Obligation/General 17.8% - ------------------------------------ U.S. Guaranteed 17.7% - ------------------------------------ Tax Obligation/Limited 16.3% - ------------------------------------ Education and Civic Organizations 12.5% - ------------------------------------ Health Care 9.5% - ------------------------------------ Water and Sewer 6.2% - ------------------------------------ Industrials 3.8% - ------------------------------------ Utilities 3.5% - ------------------------------------ Other 12.7% - ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 2 The Fund paid shareholders a capital gains distribution in December 2006 of $0.0244 per share. 17 Shareholder MEETING REPORT Approval of the Board Members was the proposal voted upon at the November 14, 2006, shareholder meeting held at the offices of Nuveen Investments.
NQJ NNJ NXJ - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 18,692,482 -- 10,979,130 -- 6,325,506 -- Withhold 289,443 -- 263,582 -- 48,267 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== Lawrence H. Brown For 18,688,827 -- 10,985,899 -- 6,317,409 -- Withhold 293,098 -- 256,813 -- 56,364 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== Jack B. Evans For 18,696,261 -- 10,989,452 -- 6,321,809 -- Withhold 285,664 -- 253,260 -- 51,964 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== William C. Hunter For 18,690,827 -- 10,981,362 -- 6,322,839 -- Withhold 291,098 -- 261,350 -- 50,934 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== David J. Kundert For 18,695,725 -- 10,988,169 -- 6,326,872 -- Withhold 286,200 -- 254,543 -- 46,901 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== William J. Schneider For -- 6,285 -- 3,534 -- 1,861 Withhold -- 21 -- 87 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 6,306 -- 3,621 -- 1,861 ==================================================================================================================================== Timothy R. Schwertfeger For -- 6,285 -- 3,534 -- 1,861 Withhold -- 21 -- 87 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 6,306 -- 3,621 -- 1,861 ==================================================================================================================================== Judith M. Stockdale For 18,686,029 -- 10,989,587 -- 6,325,809 -- Withhold 295,896 -- 253,125 -- 47,964 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ==================================================================================================================================== Eugene S. Sunshine For 18,693,274 -- 10,975,995 -- 6,325,572 -- Withhold 288,651 -- 266,717 -- 48,201 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 18,981,925 -- 11,242,712 -- 6,373,773 -- ====================================================================================================================================
18
NUJ NQP NPY - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 4,255,135 -- 14,059,427 -- 14,403,731 -- Withhold 63,558 -- 568,565 -- 246,499 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== Lawrence H. Brown For 4,252,133 -- 14,053,670 -- 14,394,125 -- Withhold 66,560 -- 574,322 -- 256,105 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== Jack B. Evans For 4,251,725 -- 14,068,853 -- 14,396,583 -- Withhold 66,968 -- 559,139 -- 253,647 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== William C. Hunter For 4,252,138 -- 14,071,261 -- 14,403,312 -- Withhold 66,555 -- 556,731 -- 246,918 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== David J. Kundert For 4,251,534 -- 14,053,399 -- 14,407,270 -- Withhold 67,159 -- 574,593 -- 242,960 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== William J. Schneider For -- 1,346 -- 5,197 -- 4,634 Withhold -- 3 -- 10 -- 1 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,349 -- 5,207 -- 4,635 ==================================================================================================================================== Timothy R. Schwertfeger For -- 1,348 -- 5,198 -- 4,635 Withhold -- 1 -- 9 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 1,349 -- 5,207 -- 4,635 ==================================================================================================================================== Judith M. Stockdale For 4,255,133 -- 14,046,240 -- 14,390,225 -- Withhold 63,560 -- 581,752 -- 260,005 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ==================================================================================================================================== Eugene S. Sunshine For 4,252,475 -- 14,062,362 -- 14,405,200 -- Withhold 66,218 -- 565,630 -- 245,030 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 4,318,693 -- 14,627,992 -- 14,650,230 -- ====================================================================================================================================
19 Shareholder MEETING REPORT (continued)
NXM NVY - ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: Common and Common and MuniPreferred MuniPreferred MuniPreferred MuniPreferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ==================================================================================================================================== Robert P. Bremner For 3,177,629 -- 3,605,371 -- Withhold 54,844 -- 35,998 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== Lawrence H. Brown For 3,176,429 -- 3,598,756 -- Withhold 56,044 -- 42,613 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== Jack B. Evans For 3,177,929 -- 3,605,571 -- Withhold 54,544 -- 35,798 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== William C. Hunter For 3,178,129 -- 3,606,571 -- Withhold 54,344 -- 34,798 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== David J. Kundert For 3,176,129 -- 3,605,571 -- Withhold 56,344 -- 35,798 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== William J. Schneider For -- 983 -- 1,131 Withhold -- 8 -- 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 991 -- 1,135 ==================================================================================================================================== Timothy R. Schwertfeger For -- 983 -- 1,131 Withhold -- 8 -- 4 - ------------------------------------------------------------------------------------------------------------------------------------ Total -- 991 -- 1,135 ==================================================================================================================================== Judith M. Stockdale For 3,177,933 -- 3,605,015 -- Withhold 54,540 -- 36,354 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ==================================================================================================================================== Eugene S. Sunshine For 3,178,129 -- 3,604,821 -- Withhold 54,344 -- 36,548 -- - ------------------------------------------------------------------------------------------------------------------------------------ Total 3,232,473 -- 3,641,369 -- ====================================================================================================================================
20 Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.5% (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 $ 802,352 690 5.125%, 1/01/37 1/15 at 100.00 Baa3 696,990 - ------------------------------------------------------------------------------------------------------------------------------------ 1,490 Total Consumer Discretionary 1,499,342 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.0% (4.0% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 8,195 5.750%, 6/01/32 6/12 at 100.00 BBB 8,706,941 3,000 6.000%, 6/01/37 6/12 at 100.00 BBB 3,260,820 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 3,200 6.125%, 6/01/24 6/13 at 100.00 BBB 3,470,592 2,625 6.375%, 6/01/32 6/13 at 100.00 BBB 2,954,516 - ------------------------------------------------------------------------------------------------------------------------------------ 17,020 Total Consumer Staples 18,392,869 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.7% (13.7% OF TOTAL INVESTMENTS) 2,500 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 2,630,975 Bonds, Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27 1,000 New Jersey Economic Development Authority, Revenue Bonds, The Seeing Eye Inc., Series 2005, 6/15 at 100.00 AAA 1,065,350 5.000%, 12/01/24 - AMBAC Insured 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 2,074,080 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 536,320 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA 1,622,070 Kean University, Series 2003D, 5.250%, 7/01/20 - FGIC Insured 1,925 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 2,056,343 Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured 1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,621,605 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 1,330,522 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 2,954,510 Montclair State University, Series 2006, 5.000%, 7/01/36 - AMBAC Insured 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 2,099,960 New Jersey City University, Series 2002A, 5.000%, 7/01/32 - AMBAC Insured New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey Institute of Technology, Series 2001G: 1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AAA 1,059,740 1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AAA 2,061,194 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 2,447,898 1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 1,349,032 2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 2,621,670 2,060 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 2,041,172 21 Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA $ 1,610,683 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 666,962 Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured New Jersey Educational Facilities Authority, Revenue Bonds, Rowan University, Series 2004C: 1,000 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 1,080,090 1,195 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 1,283,036 1,875 5.000%, 7/01/24 - MBIA Insured 7/14 at 100.00 AAA 1,989,919 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 2,003,840 Rowan 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+ 1,016,570 1,750 5.500%, 7/01/27 7/08 at 102.00 BB+ 1,780,065 1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,545,930 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 1,095,885 Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI Insured 3,175 New Jersey Higher Education Assistance Authority, Student 6/07 at 102.00 AAA 3,177,032 Loan Revenue Bonds, New Jersey Class Loan Program, Series 1997A, 5.800%, 6/01/16 - MBIA Insured (Alternative Minimum Tax) 2,365 New Jersey Higher Education Assistance Authority, Student 6/10 at 101.00 AAA 2,407,263 Loan Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured (Alternative Minimum Tax) 4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 4,377,127 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 2,069,422 1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 AAA 1,447,049 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 2,216,487 4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 AAA 4,342,000 - ------------------------------------------------------------------------------------------------------------------------------------ 60,575 Total Education and Civic Organizations 63,681,801 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 5,000 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 5,531,250 Refunding Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 18.2% (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 206,254 1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 1,079,490 5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 AAA 5,925,433 FHA-Insured 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, 7/17 at 100.00 Aa1 1,346,377 Revenue Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 400 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 424,672 Revenue Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 1,200 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 1,254,960 Revenue Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 615 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 643,979 Revenue Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 3,000 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,173,070 Revenue Bonds, Kennedy Health System Obligated Group, Series 2001, 5.500%, 7/01/21 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 3,500 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA $ 3,652,915 Revenue Bonds, Meridian Health System Obligated Group, Series 1999, 5.250%, 7/01/29 - FSA Insured New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University Hospital, Series 2000: 3,850 5.750%, 7/01/25 7/10 at 100.00 A2 4,106,603 2,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,133,300 2,600 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 AA 2,729,454 Revenue Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%, 7/01/35 - RAAI Insured 1,985 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 2,056,162 Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 5,040 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 5,301,626 Revenue Bonds, Society of the Valley Hospital Obligated Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured 3,300 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 3,436,191 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 980 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 1,017,936 Revenue Bonds, South Jersey Hospital System, Series 2006, 5.000%, 7/01/36 1,690 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,810,531 Revenue Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI Insured 2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 Baa1 2,188,740 Revenue Bonds, St. Peter's University Hospital, Series 2000A, 6.875%, 7/01/20 3,135 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 3,249,647 Revenue Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.125%, 7/01/32 - RAAI Insured 4,320 New Jersey Health Care Facilities Financing Authority, 7/08 at 101.00 Aaa 4,413,226 Revenue Refunding Bonds, St. Barnabas Healthcare System - West Hudson Hospital Obligated Group, Series 1998A, 5.000%, 7/01/23 - MBIA Insured New Jersey Health Care Facilities Financing Authority, Revenue Refunding Bonds, St. Elizabeth Hospital Obligated Group, Series 1997: 70 6.000%, 7/01/20 7/07 at 102.00 BBB- 71,993 1,605 6.000%, 7/01/27 7/07 at 102.00 BBB- 1,650,277 3,785 Newark, New Jersey, GNMA Collateralized Healthcare 6/12 at 102.00 Aaa 4,033,788 Facility Revenue Bonds, New Community Urban Renewal Corporation, Series 2001A, 5.200%, 6/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ 53,290 Total Health Care 55,906,624 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS) 775 Long Branch Housing Finance Corporation New Jersey, 4/07 at 100.00 N/R 779,921 Housing Revenue Bonds, Washington Manor Associates Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%, 10/01/11 2,743 Newark Housing Authority, New Jersey, GNMA Collateralized 10/09 at 102.00 Aaa 2,893,032 Housing Revenue Bonds, Fairview Apartments Project, Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,518 Total Housing/Multifamily 3,672,953 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.8% (2.5% OF TOTAL INVESTMENTS) 3,545 New Jersey Housing and Mortgage Finance Agency, 10/07 at 101.50 AAA 3,626,677 Home Buyer Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 2,745 New Jersey Housing and Mortgage Finance Agency, 10/10 at 100.00 AAA 2,770,995 Home Buyer Program Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA Insured (Alternative Minimum Tax) 2,590 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,667,208 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 2,679,895 Securities Home Mortgage Revenue Bonds, Series 2001B, 5.300%, 12/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,465 Total Housing/Single Family 11,744,775 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.8% (1.9% OF TOTAL INVESTMENTS) 1,125 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 1,220,434 Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.750%, 11/01/24 23 Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) $ 2,855 New Jersey Economic Development Authority, GNMA 12/11 at 103.00 Aaa $ 3,049,740 Collateralized Mortgage Revenue Bonds, Victoria Health Corporation, Series 2001A, 5.200%, 12/20/36 595 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 647,265 Masonic Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18 1,100 New Jersey Economic Development Authority, Revenue Bonds, 6/13 at 102.00 A- 1,172,743 Masonic Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, House of the Good Shepherd Obligated Group, Series 2001: 1,000 5.100%, 7/01/21 - RAAI Insured 7/11 at 100.00 AA 1,036,300 1,500 5.200%, 7/01/31 - RAAI Insured 7/11 at 100.00 AA 1,556,310 - ------------------------------------------------------------------------------------------------------------------------------------ 8,175 Total Long-Term Care 8,682,792 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 12.0% (7.9% 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 1,773,508 1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AAA 1,691,251 1,000 Essex County, New Jersey, General Obligation Refunding 11/07 at 101.00 Aaa 1,021,030 Bonds, Series 1996A-1, 5.000%, 11/15/11 - FGIC Insured 4,300 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 4,640,087 Series 2006A, 5.000%, 9/01/22 - AMBAC Insured 1,735 Jersey City, New Jersey, General Obligation Public 9/11 at 102.00 AAA 1,849,684 Improvement Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured 1,420 Lenape Regional High School District, Burlington County, No Opt. Call Aaa 1,538,329 New Jersey, General Obligation Bonds, Series 2004, 5.000%, 4/01/14 - FGIC Insured Middletown Township Board of Education, Monmouth County, New Jersey, Refunding School Bonds, Series 2001: 4,725 5.000%, 8/01/22 - FSA Insured 8/10 at 100.00 AAA 4,894,155 1,500 5.000%, 8/01/27 - FSA Insured 8/10 at 100.00 AAA 1,554,705 5,000 New Jersey, General Obligation Bonds, Series 1992D, No Opt. Call AA 5,438,850 6.000%, 2/15/11 2,040 Ocean City Board of Education, Cape May County, New Jersey, 4/16 at 100.00 Aaa 2,205,403 General Obligation Bonds, Series 2005, 5.000%, 4/01/20 - MBIA Insured Sayreville School District, Middlesex County, New Jersey, General Obligation Bonds, Series 2002: 1,470 5.000%, 3/01/24 - FGIC Insured 3/12 at 100.00 AAA 1,542,192 1,545 5.000%, 3/01/25 - FGIC Insured 3/12 at 100.00 AAA 1,620,875 1,285 Tinton Falls Board of Education, Monmouth County, 10/14 at 100.00 Aaa 1,395,240 New Jersey, General Obligation Bonds, Series 2004, 5.000%, 10/15/15 - FSA Insured 1,745 Washington Township Board of Education, Mercer County, 1/16 at 100.00 Aaa 1,887,532 New Jersey, General Obligation Bonds, Series 2005, 5.000%, 1/01/19 - FSA Insured West Deptford Township, New Jersey, General Obligation Bonds, Series 2004: 1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Aaa 1,828,698 1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Aaa 1,973,972 - ------------------------------------------------------------------------------------------------------------------------------------ 34,645 Total Tax Obligation/General 36,855,511 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 26.7% (17.6% 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 1,942,675 2,000 5.000%, 11/15/18 11/13 at 100.00 Aaa 2,160,000 1,775 Bergen County Improvement Authority, New Jersey, No Opt. Call Aaa 2,002,324 Guaranteed Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,352,737 Obligation Lease Revenue Bonds, Correctional Facilities Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 10,000 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa $ 10,686,799 Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured 2,650 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 2,964,688 and Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured Gloucester County Improvement Authority, New Jersey, Lease Revenue Bonds, Series 2005A: 1,100 5.000%, 9/01/18 - MBIA Insured 9/15 at 100.00 AAA 1,184,722 1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AAA 1,071,480 1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AAA 1,519,357 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 1,156,872 2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,665,441 1,445 Lower Township Municipal Utilities Authority, Cape May No Opt. Call Aaa 1,548,448 County, New Jersey, Revenue Bonds, Series 2003D, 5.000%, 12/01/16 - FGIC Insured Middlesex County Improvement Authority, New Jersey, County Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003: 1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,089,640 2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,169,640 1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,082,050 4,000 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 4,305,440 Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34 4,675 New Jersey Economic Development Authority, Lease Revenue 3/15 at 100.00 AAA 4,959,427 Bonds, Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 - FSA Insured 5,000 New Jersey Economic Development Authority, Revenue 7/14 at 100.00 AAA 5,467,850 Bonds, Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured 1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,094,516 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured 2,500 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,606,100 Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25 2,885 New Jersey Health Care Facilities Financing Authority, 9/15 at 100.00 AAA 3,116,867 Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 - AMBAC Insured 3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 3,655,233 Series 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 1,169,213 1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 2,060,873 4,200 New Jersey Transportation Trust Fund Authority, No Opt. Call AAA 4,774,770 Transportation System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 3,890 New Jersey Transportation Trust Fund Authority, 6/15 at 100.00 AAA 4,181,283 Transportation System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 4,300 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 4,975,272 Transportation System Bonds, Series 2006A, 5.500%, 12/15/22 1,625 Passaic County Improvement Authority, New Jersey, Lease 5/15 at 100.00 Aaa 1,718,503 Revenue Bonds, Preakness Healthcare Center Project, Series 2005, 5.000%, 5/01/30 - AMBAC Insured 1,315 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 1,331,753 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 75,720 Total Tax Obligation/Limited 82,013,973 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 26.9% (17.8% OF TOTAL INVESTMENTS) 2,250 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,453,558 Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured 25 Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) 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 $ 2,129,500 4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 4,309,403 1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 1,592,910 2,500 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 2,651,350 3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,698,240 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 3,122,415 Revenue Refunding Bonds, Port District Project, Series 2001A, 5.200%, 1/01/27 - FSA Insured 3,000 New Jersey Economic Development Authority, Revenue Bonds, 5/07 at 100.00 CCC+ 3,004,500 American Airlines Inc., Series 1991, 7.100%, 11/01/31 (Alternative Minimum Tax) New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 495 6.500%, 1/01/16 No Opt. Call A 574,081 160 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 186,443 9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 10,126,239 5.000%, 1/01/19 - FGIC Insured 4,660 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 4,929,068 5.000%, 1/01/35 - FSA Insured 1,250 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 1,347,413 Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured 7,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 7,471,170 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - XLCA Insured 2,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 2,109,080 Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Twenty-Fifth Series 2002: 2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,414,018 5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,293,900 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 4,061,050 6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 6,850,772 12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 12/07 at 100.00 AAA 12,346,880 2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,087,440 Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ 78,340 Total Transportation 82,759,430 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 18.9% (12.5% OF TOTAL INVESTMENTS) (4) 3,320 Atlantic County Improvement Authority, New Jersey, 11/10 at 100.00 Aaa 3,528,031 Egg Harbor Township Golf Corporation Township Guaranteed Revenue Bonds, Series 2000, 5.400%, 11/01/30 (Pre-refunded 11/01/10) - AMBAC Insured 3,275 Delaware River and Bay Authority, Delaware and 1/10 at 101.00 AAA 3,499,927 New Jersey, Revenue Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded 1/01/10) - AMBAC Insured 3,365 Garden State Preservation Trust, New Jersey, Open Space 11/13 at 100.00 AAA 3,636,522 and Farmland Preservation Bonds, Series 2003A, 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 3,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,273,120 Construction Bonds, Series 2003F, 5.250%, 6/15/21 (Pre-refunded 6/15/13) - FGIC Insured 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 2,163,040 Higher Education Capital Improvement Bonds, Fund Issue, Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) - AMBAC Insured New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F: 2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 3,104,135 1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,590,188 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,055,830 Ramapo College, Series 2001D, 5.000%, 7/01/31 (Pre-refunded 7/01/11) - AMBAC Insured 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA $ 1,409,759 Rowan University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded 7/01/13) - FGIC Insured 7,860 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 8,661,326 Revenue 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 6,015,700 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 3,315,930 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 3,393,352 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 198,206 55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 64,126 2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,920,630 760 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 886,099 7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 8,051,925 Obligation Bonds, Series 2000A, 5.500%, 10/01/34 (ETM) 1,230 Puerto Rico, General Obligation and Public Improvement 7/11 at 100.00 AAA 1,308,167 Bonds, Series 2001, 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 53,430 Total U.S. Guaranteed 58,076,013 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.3% (2.8% OF TOTAL INVESTMENTS) 3,500 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 3,551,170 New Jersey, 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, 6/07 at 100.00 Baa3 1,268,275 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 2,055 Mercer County Improvement Authority, New Jersey, 12/13 at 100.00 AAA 2,206,638 Solid Waste Revenue Bonds, Regional Sludge Project, Series 2003, 5.000%, 12/15/14 - FGIC Insured 400 New Jersey Economic Development Authority, Pollution 1/07 at 100.50 Baa1 406,024 Control Revenue Bonds, Jersey Central Power and Light Company, Series 1985, 7.100%, 7/01/15 2,500 Salem County Pollution Control Financing Authority, 4/12 at 101.00 Baa1 2,677,000 New Jersey, Pollution Control Revenue Refunding Bonds, PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31 (Alternative Minimum Tax) 3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/08 at 101.00 AAA 3,055,770 Facility 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 13,164,877 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.6% (5.0% OF TOTAL INVESTMENTS) 3,000 Jersey City Municipal Utilities Authority, Hudson County, 7/08 at 102.00 AAA 3,108,720 New Jersey, Sewer Revenue Bonds, Series 2001A-2, 5.200%, 7/15/21 - FGIC Insured (Alternative Minimum Tax) Lacey Municipal Utilities Authority, Ocean County, New Jersey, Water Revenue Bonds, Series 2003B: 1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 Aaa 1,873,970 1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 Aaa 1,962,679 1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 Aaa 1,069,580 7,500 New Jersey Economic Development Authority, 5/07 at 101.00 Aaa 7,637,625 Water Facilities Revenue Bonds, American Water Company, Series 1996, 6.000%, 5/01/36 - FGIC Insured (Alternative Minimum Tax) 27 Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) North Hudson Sewerage Authority, New Jersey, Sewerage Revenue Refunding Bonds, Series 2002A: $ 3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 Aaa $ 3,223,950 3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 Aaa 3,216,300 1,250 Ocean County Utilities Authority, New Jersey, Wastewater 1/11 at 101.00 Aa1 1,314,325 Revenue Refunding Bonds, Series 2000, 5.000%, 1/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 22,335 Total Water and Sewer 23,407,149 - ------------------------------------------------------------------------------------------------------------------------------------ $ 437,708 Total Investments (cost $446,871,039) - 151.4% 465,389,359 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 3,988,833 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.7)% (162,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 307,378,192 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 28 Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.5% (0.3% OF TOTAL INVESTMENTS) Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: $ 480 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 481,411 415 5.125%, 1/01/37 1/15 at 100.00 Baa3 419,204 - ------------------------------------------------------------------------------------------------------------------------------------ 895 Total Consumer Discretionary 900,615 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.3% (3.6% OF TOTAL INVESTMENTS) 3,145 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 3,341,468 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 3,520 6.125%, 6/01/24 6/13 at 100.00 BBB 3,817,651 2,250 6.375%, 6/01/32 6/13 at 100.00 BBB 2,532,443 - ------------------------------------------------------------------------------------------------------------------------------------ 8,915 Total Consumer Staples 9,691,562 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.8% OF TOTAL INVESTMENTS) 1,125 New Jersey Economic Development Authority, Revenue Bonds, 6/15 at 100.00 AAA 1,198,519 The Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured 2,705 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R 3,223,278 Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18 500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 A 518,520 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 321,792 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 595 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 635,597 Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured 1,245 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,349,306 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 1,034,612 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 1,473,024 725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 AAA 776,229 1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 AAA 1,598,070 1,125 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 AAA 1,114,718 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 1,764,132 1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 AAA 1,105,125 300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA 328,014 Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured New Jersey Educational Facilities Authority, Revenue Bonds, Rowan University, Series 2004C: 905 5.000%, 7/01/15 - MBIA Insured 7/14 at 100.00 AAA 977,481 400 5.000%, 7/01/20 - MBIA Insured 7/14 at 100.00 AAA 429,468 1,150 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 1,152,208 Rowan University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured 235 New Jersey Educational Facilities Authority, Revenue Bonds, 1/07 at 100.00 A- 235,477 Trenton State College Issue, Series 1976D, 6.750%, 7/01/08 29 Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 10 New Jersey Higher Education Assistance Authority, Student 1/07 at 100.00 A+ $ 10,017 Loan Revenue Bonds, New Jersey Class Loan Program, Series 1992A, 6.125%, 7/01/09 (Alternative Minimum Tax) 1,765 New Jersey Higher Education Assistance Authority, Student 6/09 at 101.00 AAA 1,775,431 Loan Revenue Bonds, Series 1999A, 5.250%, 6/01/18 - MBIA Insured (Alternative Minimum Tax) New Jersey Higher Education Assistance Authority, Student Loan Revenue Bonds, Series 2000A: 1,730 5.700%, 6/01/08 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 1,753,788 1,155 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 6/10 at 101.00 AAA 1,174,439 2,000 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,111,940 Series 2004E, 5.000%, 5/01/34 - FGIC Insured 2,025 University of Medicine and Dentistry of New Jersey, 4/13 at 100.00 AAA 2,154,539 Certificates of Participation, Child Health Institute, LLC, Series 2003, 5.000%, 4/15/21 - AMBAC Insured 1,000 University of Medicine and Dentistry of New Jersey, 6/14 at 100.00 AAA 1,055,030 Certificates of Participation, University Housing Associates, LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured 2,750 University of Medicine and Dentistry of New Jersey, 12/12 at 100.00 AAA 2,896,603 Revenue Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 30,300 Total Education and Civic Organizations 32,167,357 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,500 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,659,375 Refunding Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 14.3% (9.7% OF TOTAL INVESTMENTS) Camden County Improvement Authority, New Jersey, Revenue Bonds, Cooper Health System, Series 2004A: 185 5.000%, 2/15/25 2/15 at 100.00 BBB 190,785 620 5.750%, 2/15/34 8/14 at 100.00 BBB 669,284 240 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 254,803 Revenue Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 2,900 New Jersey Health Care Facilities Financing Authority, 1/10 at 101.00 A3 3,079,568 Revenue Bonds, Hackensack University Medical Center, Series 2000, 6.000%, 1/01/34 700 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 732,060 Revenue Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 375 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 392,670 Revenue Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 3,500 New Jersey Health Care Facilities Financing Authority, 7/11 at 100.00 A2 3,712,380 Revenue Bonds, Kennedy Health System Obligated Group, Series 2001, 5.625%, 7/01/31 1,700 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 1,793,330 Revenue Bonds, Meridian Health System Obligated Group, Series 1999, 5.625%, 7/01/12 - FSA Insured 465 New Jersey Health Care Facilities Financing Authority, 7/12 at 101.00 BBB- 517,433 Revenue 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, 7/15 at 100.00 AA 1,574,685 Revenue Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%, 7/01/35 - RAAI Insured 1,160 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 1,201,586 Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 2,000 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 AAA 2,117,440 Revenue Bonds, Society of the Valley Hospital Obligated Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured 1,875 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 1,952,381 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 550 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 571,291 Revenue Bonds, South Jersey Hospital System, Series 2006, 5.000%, 7/01/36 1,270 New Jersey Health Care Facilities Financing Authority, 7/14 at 100.00 AA 1,360,576 Revenue Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI Insured 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 545 New Jersey Health Care Facilities Financing Authority, 7/10 at 101.00 BBB- $ 605,043 Revenue Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 1,130 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 1,213,857 Revenue Refunding Bonds, Atlantic City Medical Center, Series 2002, 5.750%, 7/01/25 1,710 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,768,448 Revenue Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.000%, 7/01/22 - RAAI Insured 25 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 25,705 Revenue 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 Aa3 2,692,586 Environmental Control Facilities Financing Authority, Adjustable Rate Industrial Revenue Bonds, American Home Products Corporation, Series 1983A, 5.100%, 12/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 25,100 Total Health Care 26,425,911 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.3% (2.9% OF TOTAL INVESTMENTS) 340 Essex County Improvement Authority, New Jersey, 11/12 at 100.00 Aaa 344,740 FNMA Enhanced Multifamily Revenue Bonds, Mount Carmel Towers, Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax) 460 Long Branch Housing Finance Corporation New Jersey, 4/07 at 100.00 N/R 462,921 Housing Revenue Bonds, Washington Manor Associates Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%, 10/01/11 7,000 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 7,200,689 Multifamily Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 7,800 Total Housing/Multifamily 8,008,350 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.7% (1.1% OF TOTAL INVESTMENTS) New Jersey Housing and Mortgage Finance Agency, Home Buyer Program Revenue Bonds, Series 1997U: 1,965 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 2,010,667 535 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/07 at 101.50 AAA 547,326 500 New Jersey Housing and Mortgage Finance Agency, No Opt. Call AAA 507,855 Home Buyer Program Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 3,000 Total Housing/Single Family 3,065,848 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.0% (0.7% OF TOTAL INVESTMENTS) 750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 814,943 Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.800%, 11/01/31 1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,071,730 Masonic Charity Foundation of New Jersey, Series 2001, 5.500%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 1,750 Total Long-Term Care 1,886,673 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 13.4% (9.0% OF TOTAL INVESTMENTS) 2,075 Egg Harbor Township School District, Atlantic County, 4/15 at 100.00 Aaa 2,205,289 New Jersey, General Obligation Bonds, Series 2005, 5.000%, 4/01/27 - MBIA Insured 2,460 Freehold Regional High School District, Monmouth County No Opt. Call AAA 2,720,563 Board of Education, New Jersey, School District Refunding Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured 2,500 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 2,697,725 Series 2006A, 5.000%, 9/01/22 - AMBAC Insured 1,500 Jersey City, New Jersey, General Obligation Public Improvement 9/11 at 102.00 AAA 1,599,150 Bonds, Series 2003B, 5.000%, 9/01/20 - FSA Insured 2,000 Manalapan-Englishtown Regional Board of Education, 10/13 at 100.00 AAA 2,114,820 New Jersey, General Obligation Bonds, Series 2003, 5.000%, 10/01/27 - MBIA Insured New Jersey, General Obligation Bonds, Series 1992D: 2,580 6.000%, 2/15/11 No Opt. Call AA 2,806,447 1,560 6.000%, 2/15/13 No Opt. Call AA 1,750,944 4,000 Passaic County, New Jersey, General Improvement Refunding No Opt. Call AAA 4,227,160 Bonds, Series 1993, 5.125%, 9/01/12 - FGIC Insured 31 Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) 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 $ 1,438,749 1,100 5.250%, 1/15/19 - FSA Insured 1/12 at 100.00 Aaa 1,172,314 1,780 West Deptford Township, New Jersey, General Obligation 9/14 at 100.00 Aaa 1,890,556 Bonds, Series 2004, 4.750%, 9/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,905 Total Tax Obligation/General 24,623,717 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 31.3% (21.2% 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 1,298,724 1,145 5.000%, 11/15/18 11/13 at 100.00 Aaa 1,236,600 1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,128,070 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 2,225 Essex County Improvement Authority, New Jersey, General 10/13 at 100.00 Aaa 2,352,737 Obligation Lease Revenue Bonds, Correctional Facilities Project, Series 2003A, 5.000%, 10/01/28 - FGIC Insured 5,515 Essex County Improvement Authority, New Jersey, Lease 12/13 at 100.00 Aaa 5,945,942 Revenue Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured 1,225 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 1,370,469 and Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured Hudson County Improvement Authority, New Jersey, County Secured Lease Revenue Bonds, County Services Building Project, Series 2005: 1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AAA 1,257,700 2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AAA 2,908,233 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 1,089,640 1,705 5.250%, 9/15/17 9/13 at 100.00 AAA 1,850,658 1,000 5.250%, 9/15/21 9/13 at 100.00 AAA 1,082,050 2,540 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 2,733,954 Revenue Bonds, Series 2004, 5.750%, 6/15/34 3,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 3,499,424 Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured 2,720 New Jersey Health Care Facilities Financing Authority, 9/13 at 100.00 AA- 2,835,437 Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25 4,000 New Jersey Health Care Facilities Financing Authority, 9/15 at 100.00 AAA 4,247,680 Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/28 - AMBAC Insured 1,500 New Jersey Sports and Exposition Authority, Convention No Opt. Call AAA 1,745,580 Center 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 3,329,700 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 2,012,794 Series 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 435,056 715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 775,539 2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 2,955,810 System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AAA 2,200,140 System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA $ 1,193,117 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,966,968 System Bonds, Series 2006A, 5.500%, 12/15/22 780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 789,937 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured 2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aaa 2,890,595 Obligation Lease Revenue Bonds, Plainfield Park Madison Redevelopment Project, Series 2003, 5.000%, 3/01/34 - FSA Insured 2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,585,808 Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ 53,285 Total Tax Obligation/Limited 57,718,362 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 22.3% (15.1% OF TOTAL INVESTMENTS) 2,750 Casino Reinvestment Development Authority, New Jersey, 6/15 at 100.00 AAA 2,998,793 Parking Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2005: 2,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 2,654,850 4,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 4,242,160 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 1,365 6.500%, 1/01/16 No Opt. Call A 1,583,072 565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 658,378 345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call AAA 402,498 5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 6,129,039 5.000%, 1/01/19 - FGIC Insured 1,995 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 2,110,191 5.000%, 1/01/35 - FSA Insured 750 Newark Housing Authority, New Jersey, Port Authority 1/14 at 100.00 AAA 808,448 Terminal Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured 2,750 Passaic County Improvement Authority, New Jersey, Revenue 4/15 at 100.00 Aaa 2,893,715 Bonds, Paterson Parking Deck Facility, Series 2005, 5.000%, 4/15/35 - FSA Insured 4,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 4,269,240 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - XLCA Insured 1,000 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 1,054,540 Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 2,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 2,117,560 Revenue Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 4/15/32 - FSA Insured 8,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 8,297,677 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 850 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 900,864 Guaranteed Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 38,620 Total Transportation 41,121,025 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.8% (14.0% OF TOTAL INVESTMENTS) (4) Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds, Series 2003A: 1,750 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,891,208 1,965 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 2,123,556 3,425 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA 3,736,812 Construction Bonds, Series 2003F, 5.250%, 6/15/21 (Pre-refunded 6/15/13) - FGIC Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,081,520 Higher Education Capital Improvement Bonds, Fund Issue, Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) - AMBAC Insured 2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 AAA 2,265,474 Montclair State University, Series 2005F, 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 33 Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 AAA $ 1,084,430 Rowan University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded 7/01/13) - FGIC Insured 3,000 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 3,305,850 Revenue Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12) 2,025 New Jersey Transportation Trust Fund Authority, Transportation 12/11 at 100.00 AAA 2,239,610 System Bonds, Series 2001B, 6.000%, 12/15/19 (Pre-refunded 12/15/11) - MBIA Insured 2,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 2,210,620 System Bonds, Series 2003C, 5.500%, 6/15/18 (Pre-refunded 6/15/13) 890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 971,088 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 542,153 195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 227,354 120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 139,910 6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,683,412 1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,052,019 2,745 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 3,200,450 1,155 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 1,252,909 Authority, Revenue Bonds, Series 2002, 5.250%, 12/01/18 (Pre-refunded 12/01/12) - FGIC Insured 350 Trenton Parking Authority, Mercer County, New Jersey, 10/13 at 100.00 Aaa 377,937 Guaranteed Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 (Pre-refunded 10/01/13) - FGIC Insured 1,800 Woodbridge Township, Middlesex County, New Jersey, Sewer 7/09 at 102.00 Aaa 1,908,504 Utility Bonds, Series 1999, 5.300%, 7/01/20 (Pre-refunded 7/01/09) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 34,315 Total U.S. Guaranteed 38,294,816 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.9% (1.3% OF TOTAL INVESTMENTS) 1,250 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 1,285,738 Control 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 2,263,529 Series 2005RR, 5.000%, 7/01/35 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 3,375 Total Utilities 3,549,267 - ------------------------------------------------------------------------------------------------------------------------------------ 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 1,531,345 1,250 5.000%, 4/01/24 - XLCA Insured 4/13 at 100.00 Aaa 1,311,088 1,000 Hudson County Improvement Authority, New Jersey, Utility 1/08 at 101.50 AAA 1,030,030 System Revenue Bonds, Harrison Franchise Acquisition Project, Series 1997, 5.350%, 1/01/27 - FSA Insured 1,000 Jersey City Sewer Authority, Hudson County, New Jersey, No Opt. Call AAA 1,121,370 Sewer Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 - AMBAC Insured 3,100 New Jersey Economic Development Authority, Water 3/07 at 100.00 AAA 3,143,710 Facilities Revenue Refunding Bonds, Hackensack Water Company, Series 1994B, 5.900%, 3/01/24 - MBIA Insured (Alternative Minimum Tax) 6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,232,030 Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20 1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AAA 1,752,234 Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 - MBIA Insured 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 3,500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa $ 3,752,350 Revenue 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 1,057,870 Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12 1,500 Wanaque Valley Regional Sewer Authority, Passaic County, No Opt. Call AAA 1,697,430 New Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%, 9/01/18 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,400 Total Water and Sewer 23,629,457 - ------------------------------------------------------------------------------------------------------------------------------------ $ 254,160 Total Investments (cost $260,706,955) - 147.9% 272,742,335 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 3,221,261 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.7)% (91,600,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 184,363,596 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 35 Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
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: $ 260 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 260,764 230 5.125%, 1/01/37 1/15 at 100.00 Baa3 232,330 45 New Jersey Economic Development Authority, General Motors No Opt. Call B- 44,889 Corporation, Series 1984, 5.350%, 4/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ 535 Total Consumer Discretionary 537,983 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.7% (3.2% OF TOTAL INVESTMENTS) 895 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 950,911 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 2,240 6.125%, 6/01/24 6/13 at 100.00 BBB 2,429,414 1,125 6.375%, 6/01/32 6/13 at 100.00 BBB 1,266,221 - ------------------------------------------------------------------------------------------------------------------------------------ 4,260 Total Consumer Staples 4,646,546 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.5% (11.9% OF TOTAL INVESTMENTS) 250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 268,160 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 411,269 Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured 750 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 810,803 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 1,034,612 Montclair State University, Series 2006, 5.000%, 7/01/36 - AMBAC Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 100.00 AAA 1,059,740 New Jersey Institute of Technology, Series 2001G, 5.250%, 7/01/18 - MBIA Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 1/14 at 100.00 AAA 1,068,760 New Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 - AMBAC Insured 1,500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 AAA 1,563,300 Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured 625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 663,306 Rowan University, Series 2004C, 5.000%, 7/01/24 - MBIA Insured 650 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 651,248 Rowan University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured 630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 682,781 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 313,110 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 212,672 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 3,949,383 1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 AAA 1,660,352 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001: $ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 2,067,120 500 5.250%, 9/01/31 9/11 at 100.00 BBB 515,290 500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 529,590 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.500%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 16,680 Total Education and Civic Organizations 17,461,496 - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 1.1% (0.8% OF TOTAL INVESTMENTS) 1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,129,170 Refinery Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 2.0% (1.3% OF TOTAL INVESTMENTS) 850 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R 864,076 Development Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax) 250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 258,728 Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14 750 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 829,688 Refunding Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Financials 1,952,492 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 16.5% (11.2% OF TOTAL INVESTMENTS) 310 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 334,642 Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34 1,500 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aa1 1,596,495 Revenue Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 130 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 138,018 Revenue 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- 418,320 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- 188,482 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 3,712,380 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 799,988 3,000 5.750%, 7/01/31 7/10 at 100.00 A2 3,199,950 610 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 BBB 631,869 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 1,041,270 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 295 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 Baa1 306,419 Bonds, South Jersey Hospital System, Series 2006, 5.000%, 7/01/36 845 New Jersey Health Care Facilities Financing Authority, Revenue 7/14 at 100.00 AA 905,265 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- 555,085 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 2,595,125 Refunding Bonds, Burdette Tomlin Memorial Hospital, Series 1999, 5.500%, 7/01/29 37 Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 40 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- $ 41,128 Revenue Refunding Bonds, St. Elizabeth Hospital Obligated Group, Series 1997, 6.000%, 7/01/27 - ------------------------------------------------------------------------------------------------------------------------------------ 15,560 Total Health Care 16,464,436 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.1% (2.1% OF TOTAL INVESTMENTS) 250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 271,648 Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.800%, 11/01/31 880 New Jersey Economic Development Authority, Retirement 11/16 at 100.00 N/R 891,114 Community 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- 1,100,290 335 5.500%, 6/01/31 6/11 at 102.00 A- 357,200 500 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 494,405 United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 2,965 Total Long-Term Care 3,114,657 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 2.5% (1.7% OF TOTAL INVESTMENTS) 1,000 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 1,079,090 Series 2006A, 5.000%, 9/01/22 - AMBAC Insured 1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,429,218 Series 2001, 5.250%, 7/01/27 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,350 Total Tax Obligation/General 2,508,308 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 21.7% (14.8% OF TOTAL INVESTMENTS) 600 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 676,842 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,866,417 Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured 1,500 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,628,625 Guaranteed Lease Revenue Bonds, Series 2005A, 5.000%, 9/01/16 - FSA Insured 1,100 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 1,214,059 Hotel Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured 500 Essex County Improvement Authority, New Jersey, Lease No Opt. Call Aaa 534,340 Revenue Bonds, Series 2003, 5.000%, 12/15/12 - FSA Insured 815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 911,781 Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured 1,055 Gloucester County Improvement Authority, New Jersey, Lease 9/15 at 100.00 AAA 1,132,015 Revenue Bonds, Series 2005A, 5.000%, 9/01/20 - MBIA Insured 1,200 New Jersey Economic Development Authority, Cigarette Tax 6/14 at 100.00 BBB 1,291,632 Revenue Bonds, Series 2004, 5.750%, 6/15/34 1,200 New Jersey Economic Development Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,312,284 Motor Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured 525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 571,232 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured 925 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 999,342 Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 - AMBAC Insured 1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,109,900 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 1,073,490 Series 2005A, 5.000%, 9/15/18 - FGIC Insured 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: $ 350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA $ 380,674 610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 661,649 1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,477,905 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 1,375,846 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,504,152 System Bonds, Series 2006A, 5.500%, 12/15/22 405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 410,160 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured 1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/08 at 101.00 AA 1,551,030 Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%, 10/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 19,910 Total Tax Obligation/Limited 21,683,375 - ------------------------------------------------------------------------------------------------------------------------------------ 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 1,064,750 1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AAA 1,064,050 500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AAA 530,970 1,000 5.000%, 1/01/28 - MBIA Insured 1/15 at 100.00 AAA 1,060,540 900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 963,864 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 208,757 50 6.500%, 1/01/16 - MBIA Insured No Opt. Call AAA 58,264 3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 3,197,760 5.000%, 1/01/19 - FGIC Insured 1,195 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 1,263,999 5.000%, 1/01/35 - FSA Insured 375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 404,224 Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured 2,000 Port Authority of New York and New Jersey, Consolidated 1/07 at 101.00 AAA 2,022,560 Revenue Bonds, One Hundred Ninth Series 1997, 5.375%, 1/15/32 - MBIA Insured 500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 527,270 Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 3,500 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 3,579,730 Revenue Bonds, One Hundred Twentieth Series 2000, 5.500%, 10/15/35 - MBIA Insured (Alternative Minimum Tax) 5,000 Port Authority of New York and New Jersey, Special Project 12/07 at 102.00 AAA 5,186,050 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 AAA 3,582,362 Transportation System Revenue Bonds, Series 1999, 5.125%, 11/01/22 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 23,635 Total Transportation 24,715,150 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.7% (18.8% OF TOTAL INVESTMENTS) (4) Garden State Preservation Trust, New Jersey, Open Space and Farmland Preservation Bonds, Series 2003A: 900 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 972,621 1,015 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 1,096,900 1,630 Hamilton Township, Mercer County Board of Education, 8/10 at 100.00 AAA 1,691,190 New Jersey, General Obligation Bonds, Series 2001, 4.750%, 8/15/19 (Pre-refunded 8/15/10) - FSA Insured 2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,532,744 Construction Bonds, Series 2001A, 5.000%, 6/15/21 (Pre-refunded 6/15/11) - AMBAC Insured 39 Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,000 New Jersey Economic Development Authority, School Facilities 6/13 at 100.00 AAA $ 1,091,040 Construction Bonds, Series 2003F, 5.250%, 6/15/21 (Pre-refunded 6/15/13) - FGIC Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 9/12 at 100.00 AAA 1,081,520 Higher Education Capital Improvement Bonds, Fund Issue, Series 2002A, 5.250%, 9/01/19 (Pre-refunded 9/01/12) - AMBAC 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 1,307,004 1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 1,089,170 520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 566,368 1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa1 (4) 1,487,633 Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12) New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2003C: 1,000 5.500%, 6/15/17 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 1,105,310 1,000 5.500%, 6/15/18 (Pre-refunded 6/15/13) 6/13 at 100.00 AAA 1,105,310 1,020 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 1,112,932 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 151,570 20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AAA 23,318 905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,055,158 1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,609,845 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 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 2,297,705 1,000 5.125%, 7/01/30 (Pre-refunded 7/01/11) - FSA Insured 7/11 at 100.00 AAA 1,063,550 3,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 3,236,670 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) 1,905 University of Puerto Rico, University System Revenue Bonds, 3/07 at 100.75 AAA 1,925,555 Series 1995M, 5.250%, 6/01/25 (Pre-refunded 3/12/07) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 25,645 Total U.S. Guaranteed 27,603,113 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.8% (1.2% OF TOTAL INVESTMENTS) 1,030 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 1,045,059 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 771,443 Control Revenue Refunding Bonds, Public Service Electric and Gas Company, Series 2001A, 5.000%, 3/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 1,780 Total Utilities 1,816,502 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 23.0% (15.7% OF TOTAL INVESTMENTS) 225 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 246,717 Wastewater System Revenue Bonds, Series 2005, 6.000%, 7/01/25 4,635 New Jersey Economic Development Authority, Water Facilities 5/08 at 102.00 Aaa 4,805,244 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 7,212,800 Revenue Bonds, Middlesex Water Company, Series 1998, 5.350%, 2/01/38 - MBIA Insured (Alternative Minimum Tax) 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 2,775 New Jersey Environmental Infrastructure Trust, Environmental 9/08 at 101.00 AAA $ 2,826,143 Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18 15,840 North Hudson Sewerage Authority, New Jersey, Sewerage No Opt. Call Aaa 7,884,516 Revenue Refunding Bonds, Series 2001A, 0.000%, 8/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 30,475 Total Water and Sewer 22,975,420 - ------------------------------------------------------------------------------------------------------------------------------------ $ 146,645 Total Investments (cost $139,998,983) - 147.0% 146,608,648 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.1% 1,100,047 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.1)% (48,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 99,708,695 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 41 Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
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: $ 180 5.000%, 1/01/32 1/15 at 100.00 Baa3 $ 180,529 150 5.125%, 1/01/37 1/15 at 100.00 Baa3 151,520 40 New Jersey Economic Development Authority, General Motors No Opt. Call B- 39,902 Corporation, Series 1984, 5.350%, 4/01/09 - ------------------------------------------------------------------------------------------------------------------------------------ 370 Total Consumer Discretionary 371,951 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 6.1% (4.1% OF TOTAL INVESTMENTS) 1,005 Tobacco Settlement Financing Corporation, New Jersey, 6/12 at 100.00 BBB 1,067,782 Tobacco Settlement Asset-Backed Bonds, Series 2002, 5.750%, 6/01/32 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 1,600 6.125%, 6/01/24 6/13 at 100.00 BBB 1,735,296 1,250 6.375%, 6/01/32 6/13 at 100.00 BBB 1,406,913 - ------------------------------------------------------------------------------------------------------------------------------------ 3,855 Total Consumer Staples 4,209,991 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.8% (10.6% OF TOTAL INVESTMENTS) 1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R 1,052,390 Bonds, Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27 3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AAA 3,114,690 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 214,528 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 186,940 Kean University, Series 2005B, 5.000%, 7/01/30 - MBIA Insured 710 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 Aaa 757,293 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 614,537 New Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 - AMBAC Insured 450 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AAA 450,864 Rowan University, Series 2006G, 4.500%, 7/01/31 - MBIA Insured 500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 541,890 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 1,137,633 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- 1,022,790 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 1,885,425 Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,490 Total Education and Civic Organizations 10,978,980 - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 1.6% (1.1% OF TOTAL INVESTMENTS) 1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 1,129,170 Refinery Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 5.0% (3.4% OF TOTAL INVESTMENTS) $ 600 New Jersey Economic Development Authority, Economic 11/08 at 101.00 N/R $ 609,936 Development Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax) 1,250 New Jersey Economic Development Authority, Industrial 4/08 at 100.00 Ba1 1,293,638 Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14 1,450 New Jersey Economic Development Authority, Revenue No Opt. Call Baa3 1,604,063 Refunding Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 3,300 Total Financials 3,507,637 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 26.4% (17.8% OF TOTAL INVESTMENTS) 220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 237,488 Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34 New Jersey Health Care Facilities Financing Authority, FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001: 500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 AAA 520,310 1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 AAA 1,983,732 1,000 New Jersey Health Care Facilities Financing Authority, 7/17 at 100.00 Aa1 1,064,330 Revenue Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 90 New Jersey Health Care Facilities Financing Authority, 7/15 at 100.00 Baa3 95,551 Revenue Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 250 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 261,450 Revenue Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 120 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 A- 125,654 Revenue Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Kennedy Health System Obligated Group, Series 2001: 400 5.500%, 7/01/21 7/11 at 100.00 A2 423,076 140 5.625%, 7/01/31 7/11 at 100.00 A2 148,495 510 New Jersey Health Care Facilities Financing Authority, 7/09 at 101.00 AAA 532,282 Revenue Bonds, Meridian Health System Obligated Group, Series 1999, 5.250%, 7/01/29 - FSA Insured 1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BBB- 1,318,621 Bonds, Palisades Medical Center of New York Presbyterian Healthcare System, Series 2002, 6.625%, 7/01/31 3,500 New Jersey Health Care Facilities Financing Authority, 7/10 at 100.00 A2 3,733,274 Revenue Bonds, Robert Wood Johnson University Hospital, Series 2000, 5.750%, 7/01/31 435 New Jersey Health Care Facilities Financing Authority, 1/17 at 100.00 BBB 450,595 Revenue Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 700 New Jersey Health Care Facilities Financing Authority, 7/13 at 100.00 Ba1 728,889 Revenue Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 195 New Jersey Health Care Facilities Financing Authority, 7/16 at 100.00 Baa1 202,548 Revenue Bonds, South Jersey Hospital System, Series 2006, 5.000%, 7/01/36 2,500 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 A 2,685,525 Revenue Refunding Bonds, Atlantic City Medical Center, Series 2002, 5.750%, 7/01/25 1,150 New Jersey Health Care Facilities Financing Authority, 1/12 at 100.00 AA 1,192,056 Revenue Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.125%, 7/01/32 - RAAI Insured 1,500 New Jersey Health Care Facilities Financing Authority, 7/07 at 102.00 BBB- 1,542,315 Revenue 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 Aa3 1,117,677 Environmental Control Facilities Financing Authority, Adjustable Rate Industrial Revenue Bonds, American Home Products Corporation, Series 1983A, 5.100%, 12/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 17,420 Total Health Care 18,363,868 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.3% (2.2% OF TOTAL INVESTMENTS) 2,250 New Jersey Housing and Mortgage Finance Agency, 11/07 at 101.50 AAA 2,315,768 Multifamily Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 43 Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 9.1% (6.1% OF TOTAL INVESTMENTS) $ 620 New Jersey Economic Development Authority, Retirement 11/16 at 100.00 N/R $ 627,831 Community 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- 1,071,730 4,000 5.500%, 6/01/31 6/11 at 102.00 A- 4,265,079 375 New Jersey Economic Development Authority, Revenue Bonds, 1/08 at 102.00 BB+ 370,804 United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 5,995 Total Long-Term Care 6,335,444 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 1.7% (1.1% OF TOTAL INVESTMENTS) 700 Jersey City, New Jersey, General Obligation Bonds, 9/16 at 100.00 AAA 755,363 Series 2006A, 5.000%, 9/01/22 - AMBAC Insured 385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 405,778 Series 2001, 5.125%, 7/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,085 Total Tax Obligation/General 1,161,141 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 16.8% (11.3% OF TOTAL INVESTMENTS) 400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 451,228 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AAA 1,069,580 Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured 750 Casino Reinvestment Development Authority, New Jersey, 1/15 at 102.00 AAA 827,768 Hotel Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured 530 Garden State Preservation Trust, New Jersey, Open Space No Opt. Call AAA 592,938 and Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured 535 Mansfield Township Board of Education, Warren County, 3/07 at 101.00 AAA 546,604 New Jersey, Certificates of Participation, Series 1995, 5.900%, 3/01/15 - MBIA Insured 700 New Jersey Economic Development Authority, Cigarette 6/14 at 100.00 BBB 753,452 Tax Revenue Bonds, Series 2004, 5.750%, 6/15/34 350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 380,821 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured 655 New Jersey Health Care Facilities Financing Authority, Lease 9/15 at 100.00 AAA 707,642 Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005, 5.000%, 9/15/18 - AMBAC Insured 1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 1,109,900 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AAA 821,220 Series 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AAA 320,854 525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AAA 569,452 900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AAA 1,023,165 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 714,795 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 925,632 System Bonds, Series 2006A, 5.500%, 12/15/22 290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 AAA 293,695 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 BBB- $ 536,204 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 - ------------------------------------------------------------------------------------------------------------------------------------ 10,665 Total Tax Obligation/Limited 11,644,950 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 22.3% (15.0% OF TOTAL INVESTMENTS) 500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AAA 530,970 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 642,576 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 505 New Jersey Turnpike Authority, Revenue Bonds, No Opt. Call A 585,679 Series 1991C, 6.500%, 1/01/16 2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,131,840 5.000%, 1/01/19 - FGIC Insured 820 New Jersey Turnpike Authority, Revenue Bonds, Series 2005C, 1/15 at 100.00 AAA 867,347 5.000%, 1/01/35 - FSA Insured 250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AAA 269,483 Revenue Bonds, Series 2004, 5.250%, 1/01/21 - MBIA Insured 500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- 527,270 Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,176,340 Revenue Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 10/15/26 - FSA Insured 2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AAA 2,096,760 Revenue Bonds, One Hundred Twenty-Seventh Series 2002, 5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax) Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997: 4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AAA 4,641,197 50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 12/07 at 102.00 AAA 51,861 - ------------------------------------------------------------------------------------------------------------------------------------ 14,225 Total Transportation 15,521,323 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 29.1% (19.6% 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 547,850 625 5.000%, 11/01/20 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 675,431 700 5.000%, 11/01/21 (Pre-refunded 11/01/13) - FSA Insured 11/13 at 100.00 AAA 756,483 3,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AAA 3,193,950 General Obligation Bonds, Series 2002, 5.000%, 4/15/21 (Pre-refunded 4/15/12) - FGIC 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 871,336 315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 AAA 343,089 1,250 New Jersey Health Care Facilities Financing Authority, 7/12 at 100.00 Baa1 (4) 1,377,438 Revenue 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 721,460 System Bonds, Series 2001B, 5.000%, 12/15/21 (Pre-refunded 12/15/11) - MBIA Insured 1,000 New Jersey Transportation Trust Fund Authority, Transportation 6/13 at 100.00 AAA 1,105,310 System Bonds, Series 2003C, 5.500%, 6/15/18 (Pre-refunded 6/15/13) 535 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 Aaa 583,744 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 198,206 2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,833,186 3,000 Ocean County, New Jersey, Brick Township Municipal Utilities 12/12 at 100.00 Aaa 3,214,679 Authority, Revenue Bonds, Series 2002, 5.000%, 12/01/25 (Pre-refunded 12/01/12) - FGIC Insured 1,000 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 1,073,230 Bonds, Series 2000A, 5.500%, 10/01/40 (ETM) 45 Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,495 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 Aaa $ 1,624,153 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) 1,000 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 7/10 at 100.00 AAA 1,078,890 Asset-Backed Bonds, Series 2000, 6.000%, 7/01/26 (Pre-refunded 7/01/10) - ------------------------------------------------------------------------------------------------------------------------------------ 18,500 Total U.S. Guaranteed 20,198,435 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.9% (6.6% OF TOTAL INVESTMENTS) 470 Camden County Pollution Control Financing Authority, 6/07 at 100.00 Baa3 476,871 New Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 10/09 at 101.00 AAA 2,404,604 5.250%, 10/01/34 - MBIA Insured 750 New Jersey Economic Development Authority, Pollution No Opt. Call Baa1 771,443 Control Revenue Refunding Bonds, Public Service Electric and Gas Company, Series 2001A, 5.000%, 3/01/12 3,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA 3,196,469 Series 2002II, 5.125%, 7/01/26 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,520 Total Utilities 6,849,387 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.0% (0.7% OF TOTAL INVESTMENTS) 150 Guam Government Waterworks Authority, Water and 7/15 at 100.00 Ba2 164,478 Wastewater System Revenue Bonds, Series 2005, 6.000%, 7/01/25 500 North Hudson Sewerage Authority, New Jersey, Sewerage 8/12 at 100.00 Aaa 536,050 Revenue Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 650 Total Water and Sewer 700,528 - ------------------------------------------------------------------------------------------------------------------------------------ $ 96,325 Total Investments (cost $97,870,150) - 148.7% 103,288,573 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.0% 669,871 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.7)% (34,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 69,458,444 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 46 Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) Portfolio of INVESTMENTS December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 0.4% (0.2% OF TOTAL INVESTMENTS) $ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,141,710 Solid Waste Disposal Revenue Bonds, Procter & Gamble Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 27.1% (16.6% OF TOTAL INVESTMENTS) 2,000 Allegheny County Higher Education Building Authority, 9/08 at 102.00 BBB 2,054,900 Pennsylvania, College Revenue Bonds, Chatham College, Series 1998A, 5.250%, 9/01/18 200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 238,858 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- 3,150,390 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 1,255,069 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 2,089,920 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 3,234,870 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 1,841,482 840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 903,899 1,315 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,424,776 Bonds, Villanova University, Series 2003, 5.250%, 8/01/18 - FGIC Insured 1,000 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 A 1,048,590 College Revenue Bonds, College of Misericordia Project, Series 1999, 6.000%, 5/01/19 - ACA Insured Indiana County Industrial Development Authority, Pennsylvania, Revenue Bonds, Student Cooperative Association Inc./Indiana University of Pennsylvania - Student Union Project, Series 1999B: 815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call AAA 574,428 815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call AAA 548,960 815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call AAA 523,825 815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call AAA 499,408 815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call AAA 476,164 1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,492,336 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 8,307,360 Acquisition Revenue Refunding Bonds, Series 2001, 5.000%, 12/15/30 - MBIA Insured 5,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 5,289,550 General Revenue Bonds, State System of Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured 1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,465,867 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 5,242,000 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 4,174,453 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,043,420 Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/20 2,000 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AA 2,117,520 Revenue Bonds, University of Pennsylvania, Series 2005C, 5.000%, 7/15/38 47 Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 AA $ 3,147,969 Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 - RAAI Insured 6,500 Pennsylvania State University, General Revenue Bonds, 9/15 at 100.00 AA 6,915,610 Series 2005, 5.000%, 9/01/29 510 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 527,039 Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 6,000 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/08 at 100.00 Aaa 6,082,560 College Revenue Bonds, Series 1998, 5.000%, 9/15/28 1,665 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,785,063 Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/18 5 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/07 at 100.00 N/R 5,016 College Revenue Refunding Bonds, College of Misericordia, Series 1992B, 7.750%, 12/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 65,820 Total Education and Civic Organizations 67,461,302 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 9.3% (5.7% OF TOTAL INVESTMENTS) 1,555 Allegheny County Hospital Development Authority, Pennsylvania, 4/15 at 100.00 Baa2 1,604,294 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 1,192,147 Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 - AMBAC Insured 2,500 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,631,350 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,333,850 Revenue 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 9,788,219 Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 1,225 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 1,230,611 Authority, 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 1,728,276 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 550,589 370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 389,151 960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,022,218 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,608,495 Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001, 6.250%, 1/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 21,615 Total Health Care 23,079,200 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.9% (1.2% OF TOTAL INVESTMENTS) 3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 3,485,955 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 835,520 Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 430 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 2/07 at 100.00 A2 430,529 Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 4,530 Total Housing/Multifamily 4,752,004 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.0% (4.9% OF TOTAL INVESTMENTS) 10,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 10,163,799 Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 2,805 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,880,342 Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax) 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 3,500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ $ 3,624,950 Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) 960 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 4/07 at 102.00 AAA 970,099 Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28 (Alternative Minimum Tax) 2,140 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,210,556 Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 19,405 Total Housing/Single Family 19,849,746 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 4.3% (2.7% OF TOTAL INVESTMENTS) 5,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 5,361,700 Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax) 5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call AAA 5,440,700 Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,000 Total Industrials 10,802,400 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% (1.4% OF TOTAL INVESTMENTS) 1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 AA 1,552,350 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+ 1,624,168 840 5.000%, 11/01/36 11/16 at 100.00 A+ 877,464 230 Philadelphia Authority for Industrial Development, 5/08 at 102.00 N/R 234,986 Pennsylvania, Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A, 5.875%, 5/15/28 1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,586,295 Pennsylvania, Revenue Bonds, Philadelphia Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,620 Total Long-Term Care 5,875,263 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.1% (0.7% OF TOTAL INVESTMENTS) 1,260 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 1,279,807 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 1,750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 1,830,098 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,010 Total Materials 3,109,905 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 27.4% (16.8% OF TOTAL INVESTMENTS) 1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 1,905,246 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 2,325,202 Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured 1,255 Cumberland Valley School District, Cumberland County, No Opt. Call Aaa 1,370,297 Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 11/15/15 - FSA Insured 2,345 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,524,721 Series 2005, 5.000%, 10/01/20 6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 6,851,940 Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17 7,500 Montgomery County, Pennsylvania, General Obligation Bonds, 7/09 at 100.00 Aaa 7,697,850 Series 1999, 5.000%, 7/15/24 1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,058,780 Pennsylvania, 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 1,627,260 2,100 5.000%, 1/01/19 1/16 at 100.00 AA 2,271,528 49 Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 4,000 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA $ 4,359,720 5.000%, 10/01/18 3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,374,100 General Obligation Refunding Bonds, Series 2002A, 5.500%, 9/01/15 - FSA Insured 2,475 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 2,750,789 Series 2006B, 5.250%, 9/01/16 - FSA Insured 1,070 Schuylkill Valley School District, Berks County, Pennsylvania, 4/16 at 100.00 Aaa 1,152,454 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 483,377 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 24,798,060 Revenue Bonds, Philadelphia School District Project, 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 1,546,879 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 447,955 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 1,734,736 General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 61,170 Total Tax Obligation/General 68,280,894 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 25.4% (15.6% OF TOTAL INVESTMENTS) 5,045 Allegheny County Industrial Development Authority, 11/12 at 100.00 AAA 5,321,264 Pennsylvania, Revenue Bonds, Guaranteed County Building Project, Series 2002A, 5.000%, 11/01/22 - MBIA Insured 3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AAA 3,642,800 Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29 - FGIC Insured 9,050 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 9,568,203 Convention Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured (UB) 8,725 Pennsylvania Intergovernmental Cooperative Authority, 6/09 at 100.00 AAA 8,876,814 Special Tax 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 7,021,712 7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,896,412 100 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 111,634 Bonds, Series 2005A, 5.250%, 7/15/16 - FSA Insured 10,935 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 11,579,835 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 2,902,392 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 4,136,400 Pennsylvania, Sales Tax Revenue Bonds, Regional Asset District, Series 1999, 5.000%, 2/01/29 - AMBAC Insured 1,090 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 5/09 at 100.00 A2 1,140,434 Tax Increment Financing District Bonds, Center Triangle Project, Series 1999A, 6.100%, 5/01/19 3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 1,023,703 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 62,685 Total Tax Obligation/Limited 63,221,603 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 10.8% (6.6% OF TOTAL INVESTMENTS) 630 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 675,272 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Aaa 2,163,958 Revenue Bonds, Lehigh Valley Airport System, Series 2000A, 6.000%, 5/15/30 - MBIA Insured (Alternative Minimum Tax) 5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 5,854,464 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative Minimum Tax) 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA $ 2,317,458 Series 2001R, 5.000%, 12/01/30 - AMBAC Insured Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A: 3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 AAA 4,121,971 2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 AAA 3,152,094 5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AAA 5,241,300 Series 2001B, 5.250%, 6/15/31 - FGIC Insured (Alternative Minimum Tax) 3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,389,458 Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 25,265 Total Transportation 26,915,975 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 24.9% (15.3% OF TOTAL INVESTMENTS) (4) 3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 3,778,052 Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) - FGIC Insured 1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 AAA 1,404,797 Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded 5/01/11) - FGIC Insured 830 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 904,534 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 (Pre-refunded 7/01/13) 5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AAA 5,349,650 Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) - MBIA Insured 6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 AAA 6,781,330 Pennsylvania, General Obligation Bonds, Series 2002, 5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC Insured 1,025 Norristown Area School District, Montgomery County, 3/13 at 100.00 Aaa 1,101,096 Pennsylvania, General Obligation Bonds, Series 2003, 5.000%, 9/01/19 (Pre-refunded 3/01/13) - FGIC Insured Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien Revenue Bonds, Series 2003A: 1,500 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 1,646,070 2,600 5.250%, 12/01/17 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,853,188 2,125 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,331,933 2,125 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,331,933 Subordinate Lien Revenue Bonds, Series 2003B, 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 3,650 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,887,907 Bonds, Series 2001, 5.000%, 7/15/41 (Pre-refunded 7/15/11) - AMBAC Insured 760 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 909,895 Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) 3,400 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,739,320 Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) - FGIC Insured 6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AAA 6,506,382 General Obligation Bonds, Series 2001, 5.250%, 9/15/30 (Pre-refunded 9/15/11) - FGIC Insured 785 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AAA 860,619 Revenue Bonds, Conneaut School District, Series 2003, 5.250%, 11/01/21 (Pre-refunded 11/01/13) - FGIC Insured 2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AAA 2,152,260 General Obligation Bonds, Series 2000, 5.800%, 6/15/30 (Pre-refunded 12/15/10) - MBIA Insured 3,605 Upper Merion Area School District, Montgomery County, 2/13 at 100.00 Aa2 (4) 3,920,041 Pennsylvania, General Obligation Bonds, Series 2003, 5.250%, 2/15/19 (Pre-refunded 2/15/13) 3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 AAA 3,622,410 Pennsylvania, Water and Sewer Revenue Bonds, Series 1991, 7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured 5,020 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 6,236,848 Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%, 11/15/14 (ETM) 1,700 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,870,204 Pennsylvania, General Obligation Bonds, Series 2003A, 5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 56,370 Total U.S. Guaranteed 62,188,469 - ------------------------------------------------------------------------------------------------------------------------------------ 51 Nuveen Pennsylvania Investment Quality Municipal Fund (NQP) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.6% (4.1% OF TOTAL INVESTMENTS) $ 1,250 Allegheny County Industrial Development Authority, No Opt. Call AAA $ 1,295,863 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 2,015 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 2,110,551 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 2,491,649 Pollution Control Revenue Bonds, Pennsylvania Power and Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured 3,500 Montgomery County Industrial Development Authority, No Opt. Call AAA 3,804,710 Pennsylvania, 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, 9/14 at 100.00 AAA 736,603 General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 2,168,060 General Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA Insured 3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 3,911,862 Pollution Control Revenue Refunding Bonds, PSEG Power Project, Series 2001A, 5.500%, 9/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 15,595 Total Utilities 16,519,298 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.4% (8.2% OF TOTAL INVESTMENTS) 2,205 Bethlehem Authority, Northhampton and Lehigh Counties, 11/14 at 100.00 AAA 2,359,571 Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured 5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AAA 5,294,350 Pennsylvania, Water Facilities Revenue Bonds, Philadelphia Water Company, Series 2001, 5.350%, 10/01/31 - AMBAC Insured (Alternative Minimum Tax) Delaware County Regional Water Quality Control Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2001A: 5,325 5.100%, 5/01/20 - FGIC Insured 11/11 at 100.00 AAA 5,628,312 1,465 5.100%, 5/01/21 - FGIC Insured 11/11 at 100.00 AAA 1,548,446 1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 Aaa 1,521,408 Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%, 5/01/20 - MBIA Insured 2,000 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 2,129,780 Water Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured 1,250 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,331,613 Revenue 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) Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2001A: $ 5,525 5.375%, 11/01/20 - FGIC Insured 11/12 at 100.00 AAA $ 5,981,032 5,000 5.000%, 11/01/31 - FGIC Insured 11/12 at 100.00 AAA 5,244,550 2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,291,750 Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 31,320 Total Water and Sewer 33,330,812 - ------------------------------------------------------------------------------------------------------------------------------------ $ 383,405 Total Investments (cost $386,801,576) - 163.0% 406,528,581 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (11.9)% (29,610,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 4,423,742 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.9)% (132,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 249,342,323 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (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 December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 21.1% (13.3% OF TOTAL INVESTMENTS) $ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 A $ 1,087,437 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 238,858 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 1,328,540 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 1,158,525 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+ 3,031,320 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 1,685,333 770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 828,574 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 1,847,333 1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AAA 1,462,698 1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,083,480 3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 AAA 3,256,605 Pennsylvania, Revenue Bonds, Student Cooperative Association Inc./Indiana University of Pennsylvania - Student Union Project, Series 2004, 5.000%, 11/01/24 - AMBAC Insured 1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 1,551,438 Pennsylvania, Revenue Bonds, Arcadia University, Series 2006, 4.500%, 4/01/30 - RAAI Insured 2,500 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 2,670,425 Pennsylvania, Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/25 - MBIA Insured 4,085 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 4,321,562 General 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- 1,312,640 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 5/08 at 101.00 Aaa 1,028,210 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 2,233,350 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 3,236,010 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 5,750 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 5,977,988 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 2,117,520 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 1,415,730 Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 - RAAI Insured 1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 1,028,730 University of the Sciences in Philadelphia Revenue Bonds, Series 2005, 4.750%, 11/01/33 - XLCA Insured 470 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 485,703 Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 1,545 State Public School Building Authority, Pennsylvania, 5/15 at 100.00 Aaa 1,661,725 College Revenue Bonds, Montgomery County Community College, Series 2005, 5.000%, 5/01/18 - AMBAC Insured 54 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 2,270 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa $ 2,429,354 Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30 750 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 810,645 Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/19 10 Wilkes-Barre General Municipal Authority, Pennsylvania, 6/07 at 100.00 N/R 10,033 College Revenue Refunding Bonds, College of Misericordia, Series 1992B, 7.750%, 12/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 46,730 Total Education and Civic Organizations 49,299,766 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.2% (9.6% OF TOTAL INVESTMENTS) 1,455 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 1,501,124 Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A, 5.125%, 4/01/35 14,000 Allegheny County Hospital Development Authority, 4/07 at 102.00 AAA 14,336,418 Pennsylvania, Revenue Bonds, University of Pittsburgh Medical Center System, Series 1997A, 5.625%, 4/01/27 - MBIA Insured 1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 AAA 1,312,459 Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 - AMBAC Insured 5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 BBB 5,398,650 Revenue Bonds, Good Samaritan Hospital Project, Series 2002, 5.900%, 11/15/28 2,425 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 2,552,410 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,333,850 Revenue Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24 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+ 2,006,860 2,000 5.625%, 7/01/24 7/08 at 100.00 BB+ 2,006,980 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 1,815,753 1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 AAA 1,279,260 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 498,152 330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 AA 347,081 1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 1,080,782 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 - ------------------------------------------------------------------------------------------------------------------------------------ 34,080 Total Health Care 35,469,779 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.4% (3.4% OF TOTAL INVESTMENTS) 4,005 Bucks County Redevelopment Authority, Pennsylvania, 2/07 at 100.00 Baa2 4,010,126 Section 8 Assisted Second Lien Multifamily Mortgage Revenue Bonds, Country Commons Apartments, Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax) 2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 2,081,620 Pennsylvania, Multifamily Housing Revenue Bonds, Darby Townhouses Project, Series 2002A, 5.500%, 4/01/32 (Mandatory put 4/01/22) (Alternative Minimum Tax) Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A: 2,035 5.000%, 7/01/19 - XLCA Insured 7/15 at 100.00 AAA 2,185,041 3,400 5.000%, 7/01/37 - XLCA Insured 7/15 at 100.00 AAA 3,591,590 740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 772,856 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 12,180 Total Housing/Multifamily 12,641,233 - ------------------------------------------------------------------------------------------------------------------------------------ 55 Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 5.1% (3.2% OF TOTAL INVESTMENTS) $ 1,025 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa $ 1,065,590 GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32 (Alternative Minimum Tax) 4,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 4,065,520 Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 350 Pennsylvania Housing Finance Agency, Single Family 6/08 at 101.50 AA+ 359,587 Mortgage Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22 (Alternative Minimum Tax) 1,440 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 1,478,678 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+ 3,417,810 Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) Pittsburgh Urban Redevelopment Authority, Pennsylvania, Mortgage Revenue Bonds, Series 1997A: 845 6.150%, 10/01/16 (Alternative Minimum Tax) 4/07 at 102.00 AAA 853,475 765 6.200%, 10/01/21 (Alternative Minimum Tax) 4/07 at 102.00 AAA 782,794 - ------------------------------------------------------------------------------------------------------------------------------------ 11,725 Total Housing/Single Family 12,023,454 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.0% (1.9% OF TOTAL INVESTMENTS) 2,000 New Morgan Industrial Development Authority, Pennsylvania, 4/07 at 100.00 BB- 1,999,840 Solid Waste Disposal Revenue Bonds, New Morgan Landfill Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative Minimum Tax) 2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,144,320 Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax) 2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,009,078 Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,750 Total Industrials 7,153,238 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.6% (2.9% OF TOTAL INVESTMENTS) 1,000 Cumberland County Municipal Authority, Pennsylvania, 12/12 at 100.00 AA 1,037,550 Revenue Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/22 - RAAI Insured Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Masonic Homes Project, Series 2006: 1,565 5.000%, 11/01/31 11/16 at 100.00 A+ 1,637,334 620 5.000%, 11/01/36 11/16 at 100.00 A+ 647,652 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000: 1,000 6.150%, 12/01/20 - RAAI Insured 2/07 at 100.00 AA 1,001,780 2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 AA 2,135,780 1,230 Pennsylvania Economic Development Financing Authority, 6/08 at 100.00 BB+ 1,202,116 Revenue Bonds, Northwestern Human Services Inc., Series 1998A, 5.250%, 6/01/28 Philadelphia Authority for Industrial Development, Pennsylvania, Health Care Facilities Revenue Bonds, Paul's Run, Series 1998A: 1,350 5.750%, 5/15/18 5/08 at 102.00 N/R 1,375,988 1,650 5.875%, 5/15/28 5/08 at 102.00 N/R 1,685,772 - ------------------------------------------------------------------------------------------------------------------------------------ 10,415 Total Long-Term Care 10,723,972 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 2.7% (1.7% OF TOTAL INVESTMENTS) 1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 1,208,707 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 528,725 Environmental Improvement Revenue Refunding Bonds, Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax) 4,500 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 4,705,965 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,190 Total Materials 6,443,397 - ------------------------------------------------------------------------------------------------------------------------------------ 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 23.3% (14.7% OF TOTAL INVESTMENTS) $ 2,120 Central Bucks County School District, Pennsylvania, General 5/13 at 100.00 Aaa $ 2,240,649 Obligation Bonds, Series 2003, 5.000%, 5/15/23 - MBIA Insured 1,250 Cumberland Valley School District, Cumberland County, No Opt. Call Aaa 1,364,838 Pennsylvania, General Obligation Bonds, Series 2005, 5.000%, 11/15/15 - FSA Insured 2,315 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 2,492,422 Series 2005, 5.000%, 10/01/20 Harrisburg Redevelopment Authority, Dauphin County, Pennsylvania, Guaranteed Revenue Bonds, Series 1998B: 1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 875,070 2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,340,075 2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,300,255 1,000 New Castle Area School District, Lawrence County, 3/10 at 100.00 AAA 1,058,780 Pennsylvania, 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 2,272,948 General Obligation Bonds, Series 2006, 5.000%, 5/15/24 - FSA Insured 10,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 10,000,000 Bonds, School District of Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB) Pennsylvania, General Obligation Bonds, Second Series 2005: 2,000 5.000%, 1/01/18 1/16 at 100.00 AA 2,169,680 1,900 5.000%, 1/01/19 1/16 at 100.00 AA 2,055,192 3,200 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 3,487,776 5.000%, 10/01/18 2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 3,000,861 Series 2006B, 5.250%, 9/01/16 - FSA 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 3,115,323 1,955 5.000%, 2/01/21 - FGIC Insured 2/13 at 100.00 Aaa 2,078,654 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 391,046 490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AAA 529,651 2,550 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aaa 2,491,325 Revenue Bonds, York City School District, Series 2003, 4.000%, 5/01/21 - FSA Insured 1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,620,791 Pennsylvania, General Obligation Bonds, Series 2001A, 5.000%, 4/01/19 - FSA Insured 8,900 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 8,965,371 Counties, Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB) 1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 1,517,894 Pennsylvania, General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 55,970 Total Tax Obligation/General 54,368,601 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 13.6% (8.6% OF TOTAL INVESTMENTS) 1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 1,585,890 Convention 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 7,026,894 7,625 4.750%, 12/01/31 - AMBAC Insured (UB) 12/16 at 100.00 AAA 7,896,412 1,700 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,897,778 Bonds, Series 2005A, 5.250%, 7/15/16 - FSA Insured 7,015 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 7,540,843 Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured 2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 938,938 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,784,269 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured 57 Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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 $ 1,084,480 1,000 5.500%, 2/15/22 - FGIC Insured 2/13 at 100.00 Aaa 1,087,550 - ------------------------------------------------------------------------------------------------------------------------------------ 31,905 Total Tax Obligation/Limited 31,843,054 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 18.6% (11.7% OF TOTAL INVESTMENTS) 2,300 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 2,350,048 Bonds, Pittsburgh International Airport, Series 1997A, 5.250%, 1/01/16 - MBIA Insured (Alternative Minimum Tax) 650 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 696,709 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 4,981,524 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 AAA 3,765,869 Series 2001R, 5.000%, 12/01/30 - AMBAC Insured 2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,883,144 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured 10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 10,520,399 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative Minimum Tax) 6,525 Pittsburgh and Allegheny County Sports and Exhibition 6/07 at 100.00 Aaa 6,532,895 Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.350%, 12/01/26 - AMBAC Insured 2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,140,260 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 2,488,010 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 6,987,296 Airport System Revenue Bonds, Series 2003B, 5.000%, 1/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 41,385 Total Transportation 43,346,154 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 23.8% (15.0% OF TOTAL INVESTMENTS) (4) 1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA 1,823,600 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 1,092,680 1,200 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured 7/13 at 100.00 AAA 1,311,216 850 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 926,330 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 (Pre-refunded 7/01/13) 2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 AAA 2,259,705 Series 2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) - AMBAC Insured Norristown Area School District, Montgomery County, Pennsylvania, General Obligation Bonds, Series 2003: 1,000 5.000%, 9/01/19 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,074,240 1,000 5.000%, 9/01/20 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,074,240 1,735 5.000%, 9/01/21 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 1,863,806 2,000 5.000%, 9/01/22 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,148,480 2,270 5.000%, 9/01/23 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,438,525 2,600 5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured 3/13 at 100.00 Aaa 2,793,024 1,110 North Hills School District, Allegheny County, Pennsylvania, 12/15 at 100.00 AAA 1,215,284 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 1,304,228 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 1,597,770 Bonds, Temple University, Series 2001, 5.000%, 7/15/31 (Pre-refunded 7/15/11) - MBIA Insured 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) Pennsylvania Turnpike Commission, Oil Franchise Tax Senior Lien Revenue Bonds, Series 2003A: $ 1,000 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA $ 1,097,380 2,400 5.250%, 12/01/17 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,633,712 2,000 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 2,194,760 1,000 5.250%, 12/01/19 (Pre-refunded 12/01/13) - MBIA Insured 12/13 at 100.00 AAA 1,097,380 2,000 Pennsylvania Turnpike Commission, Oil Franchise Tax 12/13 at 100.00 AAA 2,194,760 Subordinate Lien Revenue Bonds, Series 2003B, 5.250%, 12/01/18 (Pre-refunded 12/01/13) - MBIA Insured 5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/09 at 101.00 AAA 6,000,125 General Ordinance, Second Series 1999, 5.000%, 7/01/29 (Pre-refunded 7/01/09) - FSA Insured Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian Medical Center of Philadelphia, Series 1993: 1,000 6.500%, 12/01/11 (ETM) No Opt. Call AAA 1,077,320 3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,541,407 4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,361,607 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 701,651 865 5.250%, 11/01/22 (Pre-refunded 11/01/13) - FGIC Insured 11/13 at 100.00 AAA 948,325 2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,745,375 College Revenue Bonds, Elizabethtown College Project, Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11) 1,520 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,888,448 Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%, 11/15/14 (ETM) 1,000 Wilkes-Barre Area School District, Luzerne County, 4/14 at 100.00 AAA 1,100,120 Pennsylvania, General Obligation Bonds, Series 2003A, 5.250%, 4/01/19 (Pre-refunded 4/01/14) - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 50,675 Total U.S. Guaranteed 55,505,498 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.0% (7.5% OF TOTAL INVESTMENTS) 1,125 Allegheny County Industrial Development Authority, No Opt. Call AAA 1,166,276 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 8,000 Beaver County Industrial Development Authority, Pennsylvania, 6/08 at 102.00 AAA 8,298,719 Exempt Facilities Revenue Bonds, Shippingport Project, Series 1998A, 5.375%, 6/01/28 - AMBAC Insured (Alternative Minimum Tax) 2,735 Carbon County Industrial Development Authority, No Opt. Call BBB- 2,864,694 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 7,590 Indiana County Industrial Development Authority, Pennsylvania, 5/07 at 102.00 AAA 7,791,817 Pollution Control Revenue Bonds, Metropolitan Edison Company, Series 1997A, 5.950%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax) 2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 2,119,500 Pennsylvania, Pollution Control Revenue Refunding Bonds, PSEG Power LLC, Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax) 2,150 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AAA 2,204,546 Pollution Control Revenue Bonds, Pennsylvania Power and Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured 1,530 Montgomery County Industrial Development Authority, No Opt. Call AAA 1,663,202 Pennsylvania, 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, 9/14 at 100.00 AAA 736,603 General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 7/13 at 100.00 AAA 1,084,030 General Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 26,830 Total Utilities 27,929,387 - ------------------------------------------------------------------------------------------------------------------------------------ 59 Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.4% (6.5% OF TOTAL INVESTMENTS) $ 305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AAA $ 326,350 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 2,675,250 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 4,257,040 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 1,753,971 Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%, 5/01/23 - MBIA Insured 2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,129,780 Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured 1,315 Lancaster Area Sewerage Authority, Pennsylvania, Sewerage 4/14 at 100.00 AAA 1,399,160 Revenue Bonds, Series 2004, 5.000%, 4/01/21 - MBIA Insured 3,360 Mercer County Industrial Development Authority, Pennsylvania, 7/10 at 100.00 AAA 3,585,120 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 1,212,664 2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 Aaa 2,691,891 2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,131,860 Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured 2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 2,114,400 Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 22,770 Total Water and Sewer 24,277,486 - ------------------------------------------------------------------------------------------------------------------------------------ $ 357,605 Total Investments (cost $353,719,214) - 158.8% 371,025,019 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (9.5)% (22,185,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.2% 2,917,139 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.5)% (118,100,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 233,657,158 ====================================================================================================================
60
FORWARD SWAPS OUTSTANDING AT DECEMBER 31, 2006: FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) - ------------------------------------------------------------------------------------------------------------------------------------ Morgan Stanley $4,500,000 Receive 3-Month USD-LIBOR 5.073% Semi-Annually 12/01/07 6/01/32 $135,762 - ------------------------------------------------------------------------------------------------------------------------------------ $135,762 ==================================================================================================================================== 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: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's 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. (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 December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS) $ 1,000 Pennsylvania Economic Development Financing Authority, No Opt. Call AA- $ 1,141,710 Solid Waste Disposal Revenue Bonds, Procter & Gamble Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 33.6% (22.2% OF TOTAL INVESTMENTS) 100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 119,429 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 238,819 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 2,360,520 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 708,750 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- 1,058,010 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 317,683 145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 156,030 1,310 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,425,647 Bonds, Villanova University, Series 2003, 5.250%, 8/01/16 - FGIC Insured 300 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 295,512 Pennsylvania, Revenue Bonds, Arcadia University, Series 2006, 4.500%, 4/01/30 - RAAI Insured 1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 Aaa 1,065,180 Pennsylvania, Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/27 - MBIA Insured 1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aaa 1,057,910 General 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- 224,732 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 1,500 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 AA 1,572,600 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 755,069 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 1,090 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 1,176,819 Revenue Bonds, Thomas Jefferson University, Series 2002, 5.500%, 1/01/16 3,000 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 3,298,710 Bonds, Series 2002, 5.250%, 8/15/14 105 Philadelphia Authority for Industrial Development, Pennsylvania, 1/17 at 100.00 BBB 108,508 Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 470 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 471,208 Pennsylvania, 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+ 232,976 Revenue Bonds, Richard Allen Preparatory Charter School, Series 2006, 6.250%, 5/01/33 565 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa 604,663 Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30 - ------------------------------------------------------------------------------------------------------------------------------------ 16,215 Total Education and Civic Organizations 17,248,775 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 19.0% (12.5% OF TOTAL INVESTMENTS) 260 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 268,242 Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A, 5.125%, 4/01/35 62 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 400 Allegheny County Hospital Development Authority, 11/10 at 102.00 Ba3 $ 475,984 Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/30 700 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 727,755 Bonds, 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- 2,566,975 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 238,740 Hospital Revenue Bonds, Fulton County Medical Center Project, Series 2006, 5.900%, 7/01/40 100 Jeannette Health Services Authority, Pennsylvania, Hospital 5/07 at 101.50 BB- 100,300 Revenue Bonds, Jeannette District Memorial Hospital, Series 1996A, 6.000%, 11/01/18 600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 631,524 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 266,770 Revenue Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24 2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 Aa3 2,338,297 Revenue Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 70 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 70,321 Authority, 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+ 25,087 Bonds, Pottsville Hospital and Warne Clinic, Series 1998, 5.625%, 7/01/24 170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 181,018 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 1,000 Washington County Hospital Authority, Pennsylvania, 6/12 at 101.00 A3 1,064,540 Revenue Bonds, Monongahela Valley Hospital Project, Series 2002, 5.500%, 6/01/17 750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 804,248 Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001, 6.250%, 1/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 9,205 Total Health Care 9,759,801 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.7% (1.0% OF TOTAL INVESTMENTS) 700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 AAA 739,445 Revenue Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured 100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 104,440 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 800 Total Housing/Multifamily 843,885 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.6% (5.0% OF TOTAL INVESTMENTS) 1,610 Allegheny County Residential Finance Authority, Pennsylvania, 11/08 at 102.00 Aaa 1,654,001 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 10/15 at 100.00 AA+ 1,016,380 Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 505 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 518,564 Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax) 700 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 724,990 Mortgage Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,815 Total Housing/Single Family 3,913,935 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 6.8% (4.5% OF TOTAL INVESTMENTS) 2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A3 2,144,320 Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax) 1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 1,367,763 Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 3,250 Total Industrials 3,512,083 - ------------------------------------------------------------------------------------------------------------------------------------ 63 Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 11.9% (7.9% OF TOTAL INVESTMENTS) $ 285 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ $ 297,711 Health Center Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%, 11/01/36 2,100 Lancaster County Hospital Authority, Pennsylvania, 12/11 at 100.00 A- 2,229,465 Health Center Revenue Bonds, Willow Valley Retirement Communities Project, Series 2001, 5.875%, 6/01/31 285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 292,000 Health Center Revenue Bonds, Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Northwestern Human Services Inc., Series 1998A: 240 5.250%, 6/01/14 6/08 at 100.00 BB+ 240,379 50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,551 2,875 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 3,025,823 Pennsylvania, Revenue Bonds, Philadelphia Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,835 Total Long-Term Care 6,134,929 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 4.2% (2.8% OF TOTAL INVESTMENTS) 350 Allegheny County Industrial Development Authority, No Opt. Call Ba1 370,671 Pennsylvania, Revenue Bonds, United States Steel Corporation, Series 2005, 5.500%, 11/01/16 210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 213,301 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 750 Bucks County Industrial Development Authority, 11/17 at 100.00 BBB+ 799,050 Pennsylvania, Environmental Improvement Revenue Bonds, USX Corporation Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11) 750 Pennsylvania Economic Development Financing Authority, 11/08 at 102.00 N/R 784,328 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,060 Total Materials 2,167,350 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.0% (11.2% OF TOTAL INVESTMENTS) 2,415 Bucks County, Pennsylvania, Central Bucks School District, 5/12 at 100.00 Aaa 2,617,160 General Obligation Bonds, Series 2002, 5.500%, 5/15/18 - FGIC Insured 300 Pennsylvania, General Obligation Bonds, Series 2006-1, 10/16 at 100.00 AA 326,979 5.000%, 10/01/18 3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,339,026 General Obligation Refunding Bonds, Series 2002A, 5.500%, 9/01/14 - FSA Insured 450 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 500,144 Series 2006B, 5.250%, 9/01/16 - FSA Insured 1,960 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 1,974,396 Counties, Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB) - ------------------------------------------------------------------------------------------------------------------------------------ 8,125 Total Tax Obligation/General 8,757,705 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 11.3% (7.5% OF TOTAL INVESTMENTS) 1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,063,230 TIF Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23 450 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AAA 475,767 Convention Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured 1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,126,990 Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured 1,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 1,074,960 Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured 1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AAA 1,619,295 Bonds, Philadelphia Neighborhood Transformation Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured 630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 205,393 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 256,333 Tanger Outlet Victory Center Tax Increment Bonds, Series 2006A, 5.450%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 5,830 Total Tax Obligation/Limited 5,821,968 - ------------------------------------------------------------------------------------------------------------------------------------ 64 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.1% (7.4% OF TOTAL INVESTMENTS) $ 130 Delaware River Joint Toll Bridge Commission, Pennsylvania and 7/13 at 100.00 A2 $ 139,342 New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,940 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 451,836 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured 1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AAA 1,841,070 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative Minimum Tax) 2,210 Pittsburgh and Allegheny County Sports and Exhibition 6/07 at 100.00 Aaa 2,212,740 Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.375%, 12/01/30 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,510 Total Transportation 5,727,928 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.6% (11.0% OF TOTAL INVESTMENTS) (4) 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,169,460 Retirement Community Revenue Bonds, Wesley Affiliated Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13) 170 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 (4) 185,266 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 (Pre-refunded 7/01/13) 750 Luzerne County, Pennsylvania, General Obligation Bonds, 5/13 at 100.00 Aaa 817,920 Series 2003A, 5.250%, 11/15/16 (Pre-refunded 5/15/13) - MBIA Insured 1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AAA 1,200,571 General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 (Pre-refunded 2/15/12) - FGIC Insured 1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,097,380 Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 180 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 215,501 Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) 2,500 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 2,749,500 Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) - FGIC Insured 1,000 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 1,102,640 College Revenue Bonds, Elizabethtown College Project, Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11) - ------------------------------------------------------------------------------------------------------------------------------------ 7,705 Total U.S. Guaranteed 8,538,238 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.1% (4.0% OF TOTAL INVESTMENTS) 500 Allegheny County Industrial Development Authority, No Opt. Call AAA 518,345 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 313,355 Exempt Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax) 140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 147,321 General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General Ordinance, Fourth Series 1998: 1,000 5.250%, 8/01/18 - FSA Insured 8/13 at 100.00 AAA 1,072,880 1,000 5.250%, 8/01/19 - FSA Insured 8/13 at 100.00 AAA 1,071,680 - ------------------------------------------------------------------------------------------------------------------------------------ 2,925 Total Utilities 3,123,581 - ------------------------------------------------------------------------------------------------------------------------------------ 65 Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) 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 $ 535,050 Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured 600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 638,934 Water Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,100 Total Water and Sewer 1,173,984 - ------------------------------------------------------------------------------------------------------------------------------------ $ 73,375 Total Investments (cost $73,619,389) - 151.5% 77,865,872 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.5)% (1,305,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (0.3)% (178,064) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.7)% (25,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 51,382,808 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (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 December 31, 2006 (Unaudited)
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 19.1% (12.5% OF TOTAL INVESTMENTS) $ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 1,194,290 Pennsylvania, College Revenue Refunding Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28 700 Allegheny County Higher Education Building Authority, 3/27 at 100.00 AA- 701,799 Pennsylvania, Revenue Bonds, Carnegie Mellon University, Series 2002, 5.450%, 3/01/27 800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 810,000 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- 343,853 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 366,143 165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 177,552 1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AAA 1,555,669 Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 - FGIC Insured 450 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 AA 443,268 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- 291,130 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 800 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AAA 862,936 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 1,500 Pennsylvania State University, General Obligation Refunding No Opt. Call AA 1,619,850 Bonds, Series 2002, 5.250%, 8/15/12 115 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 118,842 Pennsylvania, Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BBB- 531,362 Pennsylvania, Revenue Bonds, Leadership Learning Partners, Series 2005A, 5.375%, 7/01/36 270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BB+ 273,494 Pennsylvania, Revenue Bonds, Richard Allen Preparatory Charter School, Series 2006, 6.250%, 5/01/33 565 Swarthmore Boro Authority, Pennsylvania, College Revenue 9/16 at 100.00 Aaa 604,663 Bonds, Swarthmore College, Series 2006A, 5.000%, 9/15/30 1,000 Union County, Higher Education Facilities Financing Authority, 4/13 at 100.00 Aa2 1,080,860 Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 10,280 Total Education and Civic Organizations 10,975,711 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 14.4% (9.5% OF TOTAL INVESTMENTS) 295 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 304,352 Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A, 5.125%, 4/01/35 Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B: 100 9.250%, 11/15/22 11/10 at 102.00 Ba3 119,194 300 9.250%, 11/15/30 11/10 at 102.00 Ba3 356,988 800 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB+ 831,720 Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16 2,000 Chester County Health and Educational Facilities Authority, 5/08 at 101.00 AA- 2,053,580 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 280,260 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- 120,360 Revenue Bonds, Jeannette District Memorial Hospital, Series 1996A, 6.000%, 11/01/18 67 Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 600 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Baa1 $ 631,524 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 70 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 Aa3 76,131 Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 1,000 Philadelphia Hospitals and Higher Education Facilities 11/23 at 100.00 BBB 1,004,580 Authority, Pennsylvania, Hospital Revenue Bonds, Temple University Hospital, Series 1993A, 6.625%, 11/15/23 225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 239,582 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,593,594 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 26,809 600 6.250%, 1/01/32 1/12 at 100.00 BBB 643,398 - ------------------------------------------------------------------------------------------------------------------------------------ 7,855 Total Health Care 8,282,072 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.6% (1.1% OF TOTAL INVESTMENTS) 800 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AAA 845,080 Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 - XLCA Insured 120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 125,328 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 920 Total Housing/Multifamily 970,408 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 4.2% (2.8% OF TOTAL INVESTMENTS) 1,000 Pennsylvania Housing Finance Agency, Single Family 10/15 at 100.00 AA+ 1,016,380 Mortgage Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 575 Pennsylvania Housing Finance Agency, Single Family 4/15 at 100.00 AA+ 590,445 Mortgage 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+ 828,560 Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,375 Total Housing/Single Family 2,435,385 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 5.7% (3.8% OF TOTAL INVESTMENTS) 3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 AAA 3,281,070 Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.8% (2.5% OF TOTAL INVESTMENTS) 1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 BBB+ 1,245,229 Revenue Bonds, Pennswood Village Project, Series 2002A, 6.000%, 10/01/34 305 Lancaster County Hospital Authority, Pennsylvania, 11/16 at 100.00 A+ 318,603 Health Center Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%, 11/01/36 285 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 292,000 Health Center Revenue Bonds, Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Northwestern Human Services Inc., Series 1998A: 260 5.250%, 6/01/14 6/08 at 100.00 BB+ 260,411 50 5.125%, 6/01/18 6/08 at 100.00 BB+ 49,551 - ------------------------------------------------------------------------------------------------------------------------------------ 2,055 Total Long-Term Care 2,165,794 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 4.5% (2.9% OF TOTAL INVESTMENTS) 400 Allegheny County Industrial Development Authority, No Opt. Call Ba1 423,624 Pennsylvania, Revenue Bonds, United States Steel Corporation, Series 2005, 5.500%, 11/01/16 280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 284,402 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 68 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS (continued) $ 1,000 Bucks County Industrial Development Authority, Pennsylvania, 11/17 at 100.00 BBB+ $ 1,065,400 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 784,328 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,430 Total Materials 2,557,754 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL -27.1% (17.8% OF TOTAL INVESTMENTS) 1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AAA 1,870,135 General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 - FGIC Insured 625 Delaware County, Pennsylvania, General Obligation Bonds, 10/15 at 100.00 AA 672,900 Series 2005, 5.000%, 10/01/20 4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call AA- 4,567,959 Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17 Greensburg Salem School District, Westmoreland County, Pennsylvania, General Obligation Refunding Bonds, Series 2002: 725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AAA 785,915 1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AAA 1,081,340 3,280 Lehigh County, Pennsylvania, General Obligation Bonds, 11/11 at 100.00 Aa3 3,464,073 Series 2001, 5.000%, 11/15/15 300 Pittsburgh, Pennsylvania, General Obligation Bonds, No Opt. Call AAA 333,429 Series 2006B, 5.250%, 9/01/16 - FSA Insured 2,200 West Chester Area School District, Chester and Delaware 8/16 at 100.00 Aaa 2,216,159 Counties, Pennsylvania, General Obligation Bonds, Series 2006A, 4.500%, 2/15/26 - FSA Insured (UB) 500 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA 542,105 Pennsylvania, General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 14,370 Total Tax Obligation/General 15,534,015 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 24.9% (16.3% OF TOTAL INVESTMENTS) 1,000 Allegheny County Redevelopment Authority, Pennsylvania, No Opt. Call N/R 1,063,230 TIF Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23 2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AAA 2,119,100 Pennsylvania, Revenue Bonds, County Guaranteed, Woodland Place Project, Series 2002, 5.400%, 3/01/31 - FGIC Insured 4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed 9/11 at 100.00 Aaa 4,182,599 Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 - MBIA Insured 1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,352,388 Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured 2,000 Philadelphia Authority for Industrial Development, Pennsylvania, 10/11 at 101.00 AAA 2,113,180 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 1,079,530 1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AAA 1,887,008 710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call AAA 231,474 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 256,333 Tanger Outlet Victory Center Tax Increment Bonds, Series 2006A, 5.450%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 13,910 Total Tax Obligation/Limited 14,284,842 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.2% (3.4% OF TOTAL INVESTMENTS) 130 Delaware River Joint Toll Bridge Commission, Pennsylvania 7/13 at 100.00 A2 139,342 and New Jersey, Revenue Bonds, Series 2003, 5.250%, 7/01/17 1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 A 1,082,940 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 720,786 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured 69 Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (continued) Portfolio of INVESTMENTS December 31, 2006 (Unaudited) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Aaa $ 1,035,100 Airport System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,800 Total Transportation 2,978,168 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.0% (17.7% OF TOTAL INVESTMENTS) (4) 2,000 Adams County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 AAA 2,149,620 Series 2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) - FGIC Insured 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,169,460 Retirement Community Revenue Bonds, Wesley Affiliated Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13) 1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 Aaa 496,045 Series 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 1,597,770 Bonds, Temple University, Series 2001, 5.000%, 7/15/31 (Pre-refunded 7/15/11) - MBIA Insured 1,000 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,097,380 Lien Revenue Bonds, Series 2003A, 5.250%, 12/01/15 (Pre-refunded 12/01/13) - MBIA Insured 2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 AAA 3,198,123 Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) - AMBAC Insured 75 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, No Opt. Call AAA 89,792 Twelfth Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) 2,000 Philadelphia School District, Pennsylvania, General Obligation 2/12 at 100.00 AAA 2,171,800 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 3,486,365 Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) - FGIC Insured 35 West Cornwall Township Municipal Authority, 12/11 at 100.00 BBB+ (4) 38,592 Pennsylvania, College Revenue Bonds, Elizabethtown College Project, Series 2001, 6.000%, 12/15/27 (Pre-refunded 12/15/11) - ------------------------------------------------------------------------------------------------------------------------------------ 14,825 Total U.S. Guaranteed 15,494,947 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.4% (3.5% OF TOTAL INVESTMENTS) 315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 B2 346,339 Exempt Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax) 145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 9/14 at 100.00 AAA 152,582 General Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 2,420 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,591,433 General Ordinance, Fourth Series 1998, 5.250%, 8/01/20 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,880 Total Utilities 3,090,354 - ------------------------------------------------------------------------------------------------------------------------------------ 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 $ 4,789,167 Water Facility Revenue Bonds, Pennsylvania Suburban Water Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured (Alternative Minimum Tax) 600 Harrisburg Authority, Dauphin County, Pennsylvania, 7/14 at 100.00 AAA 638,934 Water Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,100 Total Water and Sewer 5,428,101 - ------------------------------------------------------------------------------------------------------------------------------------ $ 82,800 Total Investments (cost $82,758,172) - 152.4% 87,478,621 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (2.5)% (1,460,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - (0.3)% (111,251) -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.6)% (28,500,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 57,407,370 ====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions: Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings: Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. N/R Not rated. (ETM) Escrowed to maturity. (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 December 31, 2006 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $446,871,039, $260,706,955, $139,998,983 and $97,870,150, respectively) $465,389,359 $272,742,335 $146,608,648 $103,288,573 Receivables: Interest 6,627,974 3,999,902 2,187,719 1,518,366 Investments sold -- 165,000 -- -- Unrealized appreciation on forward swaps -- -- -- -- Other assets 47,498 35,531 4,335 4,220 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 472,064,831 276,942,768 148,800,702 104,811,159 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Bank borrowings 2,258,268 730,126 995,216 788,910 Floating rate obligations -- -- -- -- Accrued expenses: Management fees 248,007 147,437 48,153 29,637 Other 110,888 73,935 30,233 22,860 Preferred share dividends payable 69,476 27,674 18,405 11,308 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 2,686,639 979,172 1,092,007 852,715 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 162,000,000 91,600,000 48,000,000 34,500,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $307,378,192 $184,363,596 $ 99,708,695 $ 69,458,444 ==================================================================================================================================== Common shares outstanding 20,484,322 12,049,496 6,570,163 4,519,480 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.01 $ 15.30 $ 15.18 $ 15.37 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 204,843 $ 120,495 $ 65,702 $ 45,195 Paid-in surplus 289,027,855 172,022,510 93,284,252 64,099,461 Undistributed (Over-distribution of) net investment income (395,042) 188,461 (62,265) (67,018) Accumulated net realized gain (loss) from investments and derivative transactions 22,216 (3,250) (188,659) (37,617) Net unrealized appreciation (depreciation) of investments and derivative transactions 18,518,320 12,035,380 6,609,665 5,418,423 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $307,378,192 $184,363,596 $ 99,708,695 $ 69,458,444 ==================================================================================================================================== 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 $386,801,576, $353,719,214, $73,619,389 and $82,758,172, respectively) $406,528,581 $371,025,019 $77,865,872 $87,478,621 Receivables: Interest 4,954,231 4,542,723 1,122,659 1,330,659 Investments sold -- -- -- -- Unrealized appreciation on forward swaps -- 135,762 -- -- Other assets 37,328 40,554 4,053 4,081 - ------------------------------------------------------------------------------------------------------------------------------------ Total assets 411,520,140 375,744,058 78,992,584 88,813,361 - ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Bank borrowings 275,505 1,459,006 1,247,671 1,381,011 Floating rate obligations 29,610,000 22,185,000 1,305,000 1,460,000 Accrued expenses: Management fees 202,308 186,763 25,040 24,510 Other 36,741 101,411 19,736 22,197 Preferred share dividends payable 53,263 54,720 12,329 18,273 - ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 30,177,817 23,986,900 2,609,776 2,905,991 - ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 132,000,000 118,100,000 25,000,000 28,500,000 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $249,342,323 $233,657,158 $51,382,808 $57,407,370 ==================================================================================================================================== Common shares outstanding 16,301,498 15,826,751 3,326,799 3,724,790 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.30 $ 14.76 $ 15.45 $ 15.41 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 163,015 $ 158,268 $ 33,268 $ 37,248 Paid-in surplus 230,741,367 216,526,365 47,218,292 52,797,234 Undistributed (Over-distribution of) net investment income (476,993) (360,141) (39,298) (107,980) Accumulated net realized gain (loss) from investments and derivative transactions (812,071) (108,901) (75,937) (39,581) Net unrealized appreciation (depreciation) of investments and derivative transactions 19,727,005 17,441,567 4,246,483 4,720,449 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $249,342,323 $233,657,158 $51,382,808 $57,407,370 ==================================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 73 Statement of OPERATIONS Six Months Ended December 31, 2006 (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $11,071,859 $ 6,445,380 $3,500,502 $2,509,396 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,464,323 870,080 469,871 331,682 Preferred shares - auction fees 204,165 115,442 60,494 43,479 Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041 Shareholders' servicing agent fees and expenses 19,248 11,154 877 834 Floating rate obligations interest expense and fees -- -- -- -- Custodian's fees and expenses 53,286 37,427 23,694 14,643 Directors'/Trustees' fees and expenses 5,278 3,042 1,805 1,245 Professional fees 12,863 9,627 7,285 6,759 Shareholders' reports - printing and mailing expenses 26,032 12,712 9,999 7,775 Stock exchange listing fees 5,010 4,961 281 194 Investor relations expense 29,668 17,980 9,226 6,745 Other expenses 16,632 11,203 8,545 7,843 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,851,628 1,108,751 597,118 426,240 Custodian fee credit (16,125) (7,267) (4,303) (6,554) Expense reimbursement -- -- (185,236) (156,449) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,835,503 1,101,484 407,579 263,237 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 9,236,356 5,343,896 3,092,923 2,246,159 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 290,371 (3,236) 1,886 18,467 Change in net unrealized appreciation (depreciation) of investments 10,475,281 6,645,330 3,480,475 2,374,648 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 10,765,652 6,642,094 3,482,361 2,393,115 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,472,716) (1,438,213) (752,827) (565,769) From accumulated net realized gains (168,265) (27,732) (7,661) (3,395) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,640,981) (1,465,945) (760,488) (569,164) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $17,361,027 $10,520,045 $5,814,796 $4,070,110 ====================================================================================================================================
See accompanying notes to financial statements. 74
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 9,250,462 $ 8,498,226 $1,859,287 $2,092,296 - ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,191,692 1,101,180 243,801 274,506 Preferred shares - auction fees 166,356 148,838 31,506 35,919 Preferred shares - dividend disbursing agent fees 15,123 15,123 5,041 5,041 Shareholders' servicing agent fees and expenses 21,087 17,971 960 800 Floating rate obligations interest expense and fees 252,887 82,666 7,329 8,199 Custodian's fees and expenses 85,262 55,906 16,199 17,992 Directors'/Trustees' fees and expenses 4,371 4,155 982 1,068 Professional fees 11,643 10,941 6,141 6,319 Shareholders' reports - printing and mailing expenses 25,972 17,561 6,582 8,258 Stock exchange listing fees 4,952 5,034 142 160 Investor relations expense 25,005 23,151 5,025 5,852 Other expenses 13,481 11,053 7,621 7,872 - ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,817,831 1,493,579 331,329 371,986 Custodian fee credit (18,201) (11,275) (3,615) (1,512) Expense reimbursement -- -- (95,831) (129,480) - ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,799,630 1,482,304 231,883 240,994 - ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,450,832 7,015,922 1,627,404 1,851,302 - ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 9,398 33,072 47,310 107,174 Change in net unrealized appreciation (depreciation) of investments 9,488,061 8,617,175 1,694,561 1,840,884 Change in net unrealized appreciation (depreciation) of forward swaps -- 135,762 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) 9,497,459 8,786,009 1,741,871 1,948,058 - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,221,885) (1,995,569) (408,650) (466,025) From accumulated net realized gains -- -- -- (22,241) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,221,885) (1,995,569) (408,650) (488,266) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $14,726,406 $13,806,362 $2,960,625 $3,311,094 ====================================================================================================================================
See accompanying notes to financial statements. 75 Statement of CHANGES IN NET ASSETS (Unaudited)
NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 9,236,356 $ 18,688,118 $ 5,343,896 $ 10,793,726 $ 3,092,923 $ 6,237,805 Net realized gain (loss) from investments 290,371 2,924,752 (3,236) 1,016,202 1,886 484,326 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 10,475,281 (18,288,152) 6,645,330 (11,273,653) 3,480,475 (5,541,649) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (2,472,716) (3,729,225) (1,438,213) (1,991,793) (752,827) (1,154,022) From accumulated net realized gains (168,265) (599,726) (27,732) (454,296) (7,661) (82,061) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 17,361,027 (1,004,233) 10,520,045 (1,909,814) 5,814,796 (55,601) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (6,821,281) (16,230,307) (4,232,991) (9,510,935) (2,541,512) (5,512,880) From accumulated net realized gains (700,564) (4,917,869) (122,903) (3,721,776) (34,822) (678,056) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (7,521,845) (21,148,176) (4,355,894) (13,232,711) (2,576,334) (6,190,936) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 608,791 -- 159,660 92,709 122,384 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions -- 608,791 -- 159,660 92,709 122,384 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 9,839,182 (21,543,618) 6,164,151 (14,982,865) 3,331,171 (6,124,153) Net assets applicable to Common shares at the beginning of period 297,539,010 319,082,628 178,199,445 193,182,310 96,377,524 102,501,677 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $307,378,192 $297,539,010 $184,363,596 $178,199,445 $99,708,695 $ 96,377,524 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (395,042) $ (337,401) $ 188,461 $ 515,769 $ (62,265) $ 139,151 ====================================================================================================================================
See accompanying notes to financial statements. 76
NEW JERSEY PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY) ---------------------------- ----------------------------- ---------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 2,246,159 $ 4,467,174 $ 7,450,832 $ 14,590,128 $ 7,015,922 $ 14,058,368 Net realized gain (loss) from investments 18,467 178,837 9,398 (822,081) 33,072 (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 2,374,648 (3,595,338) 9,488,061 (13,473,894) 8,617,175 (12,682,405) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- 135,762 -- Distributions to Preferred Shareholders: From net investment income (565,769) (861,957) (2,221,885) (3,413,477) (1,995,569) (2,800,234) From accumulated net realized gains (3,395) (57,711) -- (261,069) -- (435,619) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,070,110 131,005 14,726,406 (3,380,393) 13,806,362 (1,877,341) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,789,190) (3,899,566) (5,102,372) (11,533,314) (5,270,312) (12,127,724) From accumulated net realized gains (14,915) (424,522) -- (1,732,849) -- (3,389,440) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,804,105) (4,324,088) (5,102,372) (13,266,163) (5,270,312) (15,517,164) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 42,413 111,985 -- -- -- 142,460 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 42,413 111,985 -- -- -- 142,460 - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 2,308,418 (4,081,098) 9,624,034 (16,646,556) 8,536,050 (17,252,045) Net assets applicable to Common shares at the beginning of period 67,150,026 71,231,124 239,718,289 256,364,845 225,121,108 242,373,153 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $69,458,444 $67,150,026 $249,342,323 $239,718,289 $233,657,158 $225,121,108 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (67,018) $ 41,782 $ (476,993) $ (603,568) $ (360,141) $ (110,182) ====================================================================================================================================
See accompanying notes to financial statements. 77 Statement of CHANGES IN NET ASSETS (Unaudited) (continued)
PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY) ----------------------------- ---------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 1,627,404 $ 3,240,349 $ 1,851,302 $ 3,667,111 Net realized gain (loss) from investments 47,310 (47,126) 107,174 239,396 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 1,694,561 (2,528,439) 1,840,884 (3,414,928) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (408,650) (637,236) (466,025) (715,207) From accumulated net realized gains -- (40,350) (22,241) (47,059) - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 2,960,625 (12,802) 3,311,094 (270,687) - ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (1,326,456) (2,902,469) (1,409,833) (2,942,584) From accumulated net realized gains -- (336,361) (90,885) (363,540) - ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (1,326,456) (3,238,830) (1,500,718) (3,306,124) - ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions 88,940 199,614 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from capital share transactions 88,940 199,614 -- -- - ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares 1,723,109 (3,052,018) 1,810,376 (3,576,811) Net assets applicable to Common shares at the beginning of period 49,659,699 52,711,717 55,596,994 59,173,805 - ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of period $51,382,808 $49,659,699 $57,407,370 $55,596,994 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of period $ (39,298) $ 68,404 $ (107,980) $ (83,424) ====================================================================================================================================
See accompanying notes to financial statements. 78 Notes to FINANCIAL STATEMENTS (Unaudited) 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY). Common shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) are traded on the New York Stock Exchange while Common shares of New Jersey Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service 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 a forward swap contract, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment is unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/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 December 31, 2006, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 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. 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. 79 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 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. 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 80 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 six months ended December 31, 2006, 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 six months ended December 31, 2006. The average floating rate obligations outstanding and average annual interest rate related to self-deposited inverse floaters during the six months ended December 31, 2006, 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 $13,060,707 $4,250,489 $375,897 $420,543 Average annual interest rate 3.84% 3.86% 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. Bank Borrowings The Funds have an unsecured bank line of credit under which outstanding balances bear interest at a variable rate. As of December 31, 2006, the Funds were paying an annualized interest rate of 5.76% on their respective outstanding borrowings. No compensating balances are required. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 81 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) 2. FUND SHARES Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ) ------------------------ ------------------------ -------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions -- 39,742 -- 10,167 5,995 7,907 ======================================================================================================================== NEW JERSEY PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY) -------------------------- ------------------------ -------------------------- SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 2,668 6,973 -- -- -- 9,155 ======================================================================================================================== PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY) ------------------------ -------------------------- SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED 12/31/06 6/30/06 12/31/06 6/30/06 - ------------------------------------------------------------------------------------------------------------------------ Common shares issued to shareholders due to reinvestment of distributions 5,661 12,400 -- -- ========================================================================================================================
3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the six months ended December 31, 2006, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - --------------------------------------------------------------------------------------------------------------- Purchases $ 9,769,611 $4,694,805 $5,035,123 $3,794,268 Sales and maturities 11,045,146 5,495,328 5,065,822 3,166,116 =============================================================================================================== PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - --------------------------------------------------------------------------------------------------------------- Purchases $66,663,057 $44,003,151 $4,962,069 $4,763,828 Sales and maturities 36,867,069 21,990,736 2,822,427 2,782,344 ===============================================================================================================
82 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 December 31, 2006, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - --------------------------------------------------------------------------------------------------------------- Cost of investments $446,853,591 $260,565,303 $139,968,463 $97,876,247 =============================================================================================================== PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - --------------------------------------------------------------------------------------------------------------- Cost of investments $357,232,498 $331,328,096 $72,321,325 $81,302,984 ===============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments at December 31, 2006, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - --------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $18,759,101 $12,258,591 $6,708,641 $5,464,264 Depreciation (223,333) (81,559) (68,456) (51,938) - --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $18,535,768 $12,177,032 $6,640,185 $5,412,326 =============================================================================================================== PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - --------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $19,785,531 $17,684,488 $4,301,786 $4,771,449 Depreciation (46,578) (193,911) (62,199) (55,661) - --------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $19,738,953 $17,490,577 $4,239,587 $4,715,788 ===============================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at June 30, 2006, the Funds' last tax year end, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - --------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $872,824 $1,111,531 $530,422 $323,035 Undistributed net ordinary income ** -- 3,495 -- 127 Undistributed net long-term capital gains 600,674 150,621 42,218 18,098 =============================================================================================================== PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - --------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $250,835 $638,543 $272,260 $142,807 Undistributed net ordinary income ** -- -- -- -- Undistributed net long-term capital gains -- 1,345 -- 39,039 ===============================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on June 1, 2006, paid on July 3, 2006. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 83 Notes to FINANCIAL STATEMENTS (Unaudited) (continued) The tax character of distributions paid during the Funds' last tax year ended June 30, 2006, was designated for purposes of the dividends paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - --------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $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 (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 ===============================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. At June 30, 2006, the Funds' last tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: PENNSYLVANIA PENNSYLVANIA INVESTMENT DIVIDEND QUALITY ADVANTAGE (NQP) (NXM) - -------------------------------------------------------------------------------- Expiration year 2014 $124,650 $15,555 - -------------------------------------------------------------------------------- Total $124,650 $15,555 ================================================================================ The following Funds elected to defer net realized losses from investments incurred from November 1, 2005 through June 30, 2006 ("post-October losses") in accordance with Federal income tax regulations. Post-October losses are treated as having arisen on the first day of the current fiscal year:
NEW JERSEY NEW JERSEY PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA DIVIDEND DIVIDEND INVESTMENT PREMIUM DIVIDEND DIVIDEND ADVANTAGE ADVANTAGE 2 QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NXJ) (NUJ) (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------ $167,478 $22,828 $696,819 $143,520 $72,480 $43,833 ==================================================================================================================
84 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: NEW JERSEY INVESTMENT QUALITY (NQJ) NEW JERSEY PREMIUM INCOME (NNJ) AVERAGE DAILY NET ASSETS PENNSYLVANIA INVESTMENT QUALITY (NQP) (INCLUDING NET ASSETS PENNSYLVANIA PREMIUM INCOME 2 (NPY) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ NEW JERSEY DIVIDEND ADVANTAGE (NXJ) NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) AVERAGE DAILY NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) (INCLUDING NET ASSETS PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of December 31, 2006, the complex-level fee rate was .1845%. 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. 85 Notes to FINANCIAL STATEMENTS (Unaudited) (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 on the disposal of investments 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 June 29, 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. 86 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 December 31, 2006, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 7. SUBSEQUENT EVENT Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on February 1, 2007, to shareholders of record on January 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 $.0645 $.0660 =============================================================================================================== PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - --------------------------------------------------------------------------------------------------------------- Dividend per share $.0535 $.0555 $.0665 $.0610 ===============================================================================================================
87 Financial HIGHLIGHTS (Unaudited) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $14.53 $ .45 $ .52 $(.12) $(.01) $ .84 $(.33) $(.03) $ (.36) 2006 15.61 .91 (.75) (.18) (.03) (.05) (.79) (.24) (1.03) 2005 14.69 .95 1.13 (.10) (.01) 1.97 (.94) (.11) (1.05) 2004 15.65 1.01 (.75) (.05) (.01) .20 (.96) (.20) (1.16) 2003 15.07 1.05 .61 (.07) (.01) 1.58 (.93) (.07) (1.00) 2002 15.03 1.10 (.01) (.13) -- .96 (.92) -- (.92) NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 14.79 .44 .55 (.12) -- .87 (.35) (.01) (.36) 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 ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ======================================================================================== NEW JERSEY INVESTMENT QUALITY (NQJ) - ---------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) $ -- $15.01 $14.08 5.47% 5.86% 2006 -- 14.53 13.70 (3.62) (.31) 2005 -- 15.61 15.25 15.13 13.81 2004 -- 14.69 14.19 (4.09) 1.26 2003 -- 15.65 15.94 11.68 10.72 2002 -- 15.07 15.22 4.19 6.56 NEW JERSEY PREMIUM INCOME (NNJ) - ---------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) -- 15.30 14.59 5.58 5.92 2006 -- 14.79 14.16 (3.36) (1.04) 2005 -- 16.05 15.76 19.43 12.31 2004 -- 15.35 14.19 (5.65) .85 2003 -- 16.28 16.10 10.18 10.48 2002 -- 15.60 15.50 7.88 7.91 ======================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** ------------------------------------------- ---------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $307,378 1.20%* 1.20%* 5.98%* 1.19%* 1.19%* 5.99%* 2% 2006 297,539 1.21 1.21 6.05 1.19 1.19 6.08 17 2005 319,083 1.21 1.21 6.22 1.20 1.20 6.23 15 2004 299,671 1.21 1.21 6.64 1.21 1.21 6.64 19 2003 316,970 1.22 1.22 6.80 1.22 1.22 6.81 12 2002 304,808 1.25 1.25 7.35 1.23 1.23 7.36 22 NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 184,364 1.20* 1.20* 5.78* 1.19* 1.19* 5.78* 2 2006 178,199 1.19 1.19 5.81 1.18 1.18 5.83 12 2005 193,182 1.18 1.18 5.91 1.17 1.17 5.92 21 2004 184,753 1.18 1.18 6.23 1.18 1.18 6.23 23 2003 195,568 1.20 1.20 6.48 1.20 1.20 6.48 13 2002 187,393 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 6/30: 2007(b) $162,000 $25,000 $72,435 $ -- $ -- 2006 162,000 25,000 70,917 -- -- 2005 162,000 25,000 74,241 -- -- 2004 162,000 25,000 71,246 -- -- 2003 162,000 25,000 73,915 -- -- 2002 162,000 25,000 72,038 -- -- NEW JERSEY PREMIUM INCOME (NNJ) - -------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) 91,600 25,000 75,318 -- -- 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. ** 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 six months ended December 31, 2006. See accompanying notes to financial statements. 88-89 spread Financial HIGHLIGHTS (Unaudited) (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 6/30: 2007(b) $14.68 $ .47 $ .54 $(.11) $ -- $ .90 $ (.39) $ (.01) $ (.40) 2006 15.63 .95 (.77) (.18) (.01) (.01) (.84) (.10) (.94) 2005 14.59 .98 1.09 (.10) -- 1.97 (.93) -- (.93) 2004 15.35 1.00 (.77) (.05) -- .18 (.94) -- (.94) 2003 14.38 1.04 .86 (.07) -- 1.83 (.87) -- (.87) 2002 14.39 1.04 (.07) (.13) -- .84 (.85) -- (.85) NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 14.87 .50 .53 (.13) -- .90 (.40) -- (.40) 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 ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ====================================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - -------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) $ -- $15.18 $15.85 13.27% 6.11% 2006 -- 14.68 14.35 (.78) (.05) 2005 -- 15.63 15.38 19.97 13.80 2004 -- 14.59 13.63 (5.13) 1.20 2003 .01 15.35 15.30 15.09 13.18 2002 -- 14.38 14.12 (.17) 6.05 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - -------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) -- 15.37 16.10 10.79 6.08 2006 -- 14.87 14.90 (.49) .25 2005 -- 15.79 15.90 23.39 15.00 2004 -- 14.62 13.74 (4.81) 1.02 2003 -- 15.44 15.40 9.14 13.74 2002(c) (.14) 14.46 15.04 1.29 1.98 ====================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $ 99,709 1.20%* 1.20%* 5.82%* .82%* .82%* 6.20%* 3% 2006 96,378 1.19 1.19 5.83 .75 .75 6.28 16 2005 102,502 1.19 1.19 5.94 .74 .74 6.39 17 2004 95,651 1.20 1.20 6.26 .74 .74 6.71 11 2003 100,502 1.19 1.19 6.56 .74 .74 7.01 8 2002 94,130 1.24 1.24 6.76 .75 .75 7.25 7 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 69,458 1.23* 1.23* 5.99* .76* .76* 6.46* 3 2006 67,150 1.23 1.23 5.99 .76 .76 6.47 13 2005 71,231 1.23 1.23 6.09 .77 .77 6.54 11 2004 65,919 1.25 1.25 6.41 .79 .79 6.87 11 2003 69,616 1.23 1.23 6.53 .76 .76 7.00 12 2002(c) 65,153 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 6/30: 2007(b) $48,000 $25,000 $76,932 $ -- $ -- 2006 48,000 25,000 75,197 -- -- 2005 48,000 25,000 78,386 -- -- 2004 48,000 25,000 74,818 -- -- 2003 48,000 25,000 77,345 -- -- 2002 48,000 25,000 74,026 -- -- NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - -------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) 34,500 25,000 75,332 -- -- 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. ** 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 six months ended December 31, 2006. (c) For the period March 25, 2002 (commencement of operations) through June 30, 2002. See accompanying notes to financial statements. 90-91 spread Financial HIGHLIGHTS (Unaudited) (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions ------------------------------------------------------------------- --------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== PENNSYLVANIA INVESTMENT QUALITY (NQP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $14.71 $ .46 $ .58 $(.14) $ -- $ .90 $(.31) $ -- $ (.31) 2006 15.73 .90 (.87) (.21) (.02) (.20) (.71) (.11) (.82) 2005 14.92 .92 1.05 (.12) (.01) 1.84 (.89) (.14) (1.03) 2004 15.91 .98 (.98) (.06) -- (.06) (.92) (.01) (.93) 2003 14.70 1.02 1.19 (.09) -- 2.12 (.91) -- (.91) 2002 14.57 1.09 .09 (.14) -- 1.04 (.91) -- (.91) PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 14.22 .44 .56 (.13) -- .87 (.33) -- (.33) 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 ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ======================================================================================= PENNSYLVANIA INVESTMENT QUALITY (NQP) - --------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) $ -- $15.30 $13.58 7.31% 6.16% 2006 -- 14.71 12.95 (9.47) (1.34) 2005 -- 15.73 15.16 19.53 12.67 2004 -- 14.92 13.58 (9.73) (.38) 2003 -- 15.91 16.01 11.98 14.79 2002 -- 14.70 15.18 6.57 7.34 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - --------------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) -- 14.76 13.54 7.08 6.17 2006 -- 14.22 12.96 (8.42) (.80)**** 2005 -- 15.32 15.16 17.79 11.80 2004 -- 14.74 13.84 (7.22) .94 2003 -- 15.65 16.00 15.09 12.09 2002 -- 14.83 14.79 13.25 8.88 ======================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== PENNSYLVANIA INVESTMENT QUALITY (NQP) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $249,342 1.46%* 1.26%* 5.96%* 1.44%* 1.24%* 5.98%* 9% 2006 239,718 1.23 1.23 5.87 1.21 1.21 5.89 20 2005 256,365 1.23 1.23 5.96 1.22 1.22 5.97 18 2004 243,287 1.23 1.23 6.38 1.22 1.22 6.39 17 2003 258,924 1.27 1.27 6.59 1.26 1.26 6.60 11 2002 238,926 1.31 1.31 7.42 1.30 1.30 7.44 34 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 233,657 1.28* 1.21* 5.99* 1.27* 1.20* 6.00* 6 2006 225,121 1.20 1.20 6.01 1.18 1.18 6.03 18 2005 242,373 1.19 1.19 6.09 1.19 1.19 6.10 22 2004 232,455 1.18 1.18 6.45 1.17 1.17 6.46 16 2003 246,604 1.20 1.20 6.76 1.19 1.19 6.77 19 2002 233,536 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 6/30: 2007(b) $132,000 $25,000 $72,224 $29,610 $13,879 2006 132,000 25,000 70,401 -- -- 2005 132,000 25,000 73,554 -- -- 2004 132,000 25,000 71,077 -- -- 2003 132,000 25,000 74,039 -- -- 2002 132,000 25,000 70,251 -- -- PENNSYLVANIA PREMIUM INCOME 2 (NPY) - -------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) 118,100 25,000 74,462 22,185 16,856 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 six months ended December 31, 2006. See accompanying notes to financial statements. 92-93 spread Financial HIGHLIGHTS (Unaudited) (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 6/30: 2007(b) $14.95 $ .49 $ .53 $(.12) $ -- $ .90 $(.40) $ -- $ (.40) 2006 15.93 .98 (.78) (.19) (.01) -- (.88) (.10) (.98) 2005 15.32 .99 1.06 (.10) (.02) 1.93 (.96) (.36) (1.32) 2004 16.25 1.04 (.78) (.05) (.01) .20 (.96) (.17) (1.13) 2003 14.96 1.08 1.29 (.07) (.01) 2.29 (.92) (.10) (1.02) 2002 14.48 1.12 .37 (.13) -- 1.36 (.87) (.01) (.88) PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 14.93 .50 .52 (.13) (.01) .88 (.38) (.02) (.40) 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 ---------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================= PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - --------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) $ -- $15.45 $15.89 7.92% 6.04% 2006 -- 14.95 15.10 (.56) (.01) 2005 -- 15.93 16.14 21.84 13.02 2004 -- 15.32 14.39 (5.95) 1.30 2003 .02 16.25 16.46 18.13 15.95 2002 -- 14.96 14.89 9.10 9.67 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - --------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) -- 15.41 15.44 11.95 5.94 2006 -- 14.93 14.16 .88 (.46) 2005 -- 15.89 14.90 17.63 13.37 2004 -- 14.87 13.48 (8.58) .29 2003 -- 15.90 15.84 14.38 15.48 2002(c) (.14) 14.64 14.74 (.73) 3.24 ================================================================================= Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** -------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) $51,383 1.29%* 1.26%* 5.94%* .90%* .87%* 6.32%* 4% 2006 49,660 1.25 1.25 5.90 .80 .80 6.35 12 2005 52,712 1.23 1.23 5.82 .78 .78 6.28 13 2004 50,549 1.21 1.21 6.15 .76 .76 6.60 10 2003 53,591 1.23 1.23 6.44 .79 .79 6.88 13 2002 49,306 1.29 1.29 7.12 .82 .82 7.59 48 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 6/30: 2007(b) 57,407 1.29* 1.26* 5.97* .84* .81* 6.43* 3 2006 55,597 1.24 1.24 5.93 .77 .77 6.40 13 2005 59,174 1.23 1.23 5.80 .78 .78 6.25 8 2004 55,370 1.24 1.24 5.95 .78 .78 6.40 4 2003 59,202 1.25 1.25 6.07 .78 .78 6.53 13 2002(c) 54,481 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 6/30: 2007(b) $25,000 $25,000 $76,383 $1,305 $59,531 2006 25,000 25,000 74,660 -- -- 2005 25,000 25,000 77,712 -- -- 2004 25,000 25,000 75,549 -- -- 2003 25,000 25,000 78,591 -- -- 2002 25,000 25,000 74,306 -- -- PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - -------------------------------------------------------------------------------- Year Ended 6/30: 2007(b) 28,500 25,000 75,357 1,460 59,841 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 six months ended December 31, 2006. (c) For the period March 25, 2002 (commencement of operations) through June 30, 2002. See accompanying notes to financial statements. 94-95 spread Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 96 Automatic Dividend REINVESTMENT PLAN NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS These Funds are amending the terms and conditions of their Automatic Dividend Reinvestment Plan (the "Plan") as further described below effective with the close of business on April 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who do not wish to continue as participants under the amended Plan may withdraw from the Plan by notifying the Plan Agent prior to the effective date of the amendments. Participants should refer to their Plan document for notification instructions, or may simply call Nuveen at (800) 257-8787. Fund shareholders who elect to participate in the Plan are able to have Fund distributions consisting of income dividends, realized capital gains and returns of capital automatically reinvested in additional Fund shares. Under the Plan's existing terms, the Plan Agent purchases Fund shares in the open market if the Fund's shares are trading at a discount to their net asset value on the payable date for the distribution. If the Fund's shares are trading at or above their net asset value on the payable date for the distribution, the Plan Agent purchases newly-issued Fund shares directly from the Fund at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. This change will permit Plan participants under these circumstances to reinvest Fund distributions at a lower aggregate cost than is possible under the existing Plan. 97 Notes 98 Other Useful INFORMATION QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2006, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of 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. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale 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 or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 99 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing approximately $162 billion in assets, as of December 31, 2006, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/ETF o Investor education o Interactive planning tools Logo: NUVEEN Investments ESA-B-1206D ITEM 2. CODE OF ETHICS. Not applicable to this filing. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to this filing. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to this filing. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to this filing. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to this filing. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. 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 registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: 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 2 ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: March 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: March 9, 2007 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: March 9, 2007 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 file002.txt CERTIFICATIONS CERTIFICATION I, Gifford R. Zimmerman, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen New Jersey Dividend Advantage Municipal Fund 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 9, 2007 /s/ Gifford R. Zimmerman ------------------------- -------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) CERTIFICATION I, Stephen D. Foy, certify that: 1. I have reviewed this report on Form N-CSR of Nuveen New Jersey Dividend Advantage Municipal Fund 2; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) disclosed in this report any change in the registrant's internal control over financial reporting 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; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 9, 2007 /s/ Stephen D. Foy ------------------------- -------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) EX-99.906CERT 3 file003.txt CERTIFICATIONS Certification Pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002; provided by the Chief Executive Officer and Chief Financial Officer, based on each such officer's knowledge and belief. The undersigned officers of Nuveen New Jersey Dividend Advantage Municipal Fund 2 (the "Fund"), certify that, to the best of each such officer's knowledge and belief: 1. The Form N-CSR of the Fund for the period ended December 31, 2006 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. Date: March 9, 2007 ----------------------- /s/ Gifford R. Zimmerman --------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) /s/ Stephen D. Foy --------------------------------- Stephen D. Foy Vice President, Controller (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----