-----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, ITLP3MWrvq6OYfYBnlEZQi/ryGK8DGQt8g8qJCVJJODb0Ile60ZWsOz1TQhlaF6k beZEj+U/urJvdJpiImD0JQ== 0000891804-09-002311.txt : 20090708 0000891804-09-002311.hdr.sgml : 20090708 20090708150119 ACCESSION NUMBER: 0000891804-09-002311 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20090430 FILED AS OF DATE: 20090708 DATE AS OF CHANGE: 20090708 EFFECTIVENESS DATE: 20090708 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10551 FILM NUMBER: 09934969 BUSINESS ADDRESS: STREET 1: 333 WEST WACKER DRIVE CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129178146 N-CSR 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) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: April 30 ------------------ Date of reporting period: April 30, 2009 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. LOGO: NUVEEN Investments Closed-End Funds - -------------------------------------------------------------------------------- Nuveen Investments Municipal Closed-End Funds IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Annual Report April 30, 2009 - -------------------------------------------------------------------------------- - -------------------- ------------------- ------------------- ------------------- NUVEEN NEW JERSEY NUVEEN NEW JERSEY NUVEEN NEW JERSEY NUVEEN NEW JERSEY INVESTMENT QUALITY PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND, INC. MUNICIPAL FUND, MUNICIPAL FUND MUNICIPAL FUND 2 NQJ INC. NXJ NUJ NNJ - -------------------- ------------------- ------------------- ------------------- NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA NUVEEN PENNSYLVANIA INVESTMENT QUALITY PREMIUM INCOME DIVIDEND ADVANTAGE DIVIDEND ADVANTAGE MUNICIPAL FUND MUNICIPAL FUND 2 MUNICIPAL FUND MUNICIPAL FUND 2 NQP NPY NXM NVY (April 09) LIFE IS COMPLEX. Nuveen makes things e-simple. 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. Free e-Reports right to your e-mail! WWW.INVESTORDELIVERY.COM If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS If you receive your Nuveen Fund dividends and statements directly from Nuveen. LOGO: NUVEEN Investments Chairman's Letter to Shareholders (PHOTO OF ROBERT P. BREMNER) DEAR SHAREHOLDER, The problems in the U.S. financial system and the slowdown in global economic activity continue to create a very difficult environment for the U.S. economy. The administration, the Federal Reserve System and Congress have initiated a variety of programs directed at restoring liquidity to the financial markets, providing financial support for critical financial institutions and stimulating economic activity. There are encouraging signs that these initiatives are beginning to have a constructive impact. It is not possible to predict whether the actions taken to date will be sufficient to restore more normal conditions in the financial markets or enable the economy to stabilize and set a course toward recovery. However, the speed and scope of the government's actions are very encouraging and, more importantly, reflect a commitment to act decisively to meet the economic challenges we face. The performance information in the attached report reflects the impact of many forces at work in the equity and fixed income markets. The comments by the portfolio manager describe the strategies being used to pursue your Fund's long-term investment goals. Parts of the financial markets continue to experience serious dislocations and thorough research and strong investment disciplines have never been more important in identifying risks and opportunities. I hope you will read this information carefully. Your Board is particularly sensitive to our shareholders' concerns in these uncertain times. We believe that frequent and thorough communication is essential in this regard and encourage you to visit the Nuveen website: www.nuveen.com, for recent developments in all Nuveen funds. We also encourage you to communicate with your financial consultant for answers to your questions and to seek advice on your long-term investment strategy in the current market environment. Nuveen continues to work on resolving the issues related to the auction rate preferred shares situation, but the unsettled conditions in the credit markets have slowed progress. Nuveen is actively pursuing a number of solutions, all with the goal of providing liquidity for preferred shareholders while preserving the potential benefits of leverage for common shareholders. We appreciate the patience you have shown as we work through the many issues involved. On behalf of myself and the other members of your Fund's Board, we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Robert P. Bremner Robert P. Bremner Chairman of the Nuveen Fund Board June 19, 2009 Nuveen Investments 3 Portfolio Manager's Comments Nuveen Investments Municipal Closed-End Funds NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM, NVY Portfolio manager Cathryn Steeves reviews U.S. economic and municipal market conditions at the national and state levels, key investment strategies, and the twelve-month performance of the Nuveen New Jersey and Pennsylvania Funds. Cathryn, who joined Nuveen in 1996, has managed NQJ, NNJ, NXJ, NUJ, NQP, NPY, NXM and NVY since 2006. In April 2009, she assumed portfolio management responsibility for the newly introduced Nuveen New Jersey Municipal Value (NJV) and Nuveen Pennsylvania Municipal Value Fund (NPN). These two new Funds are disclosed in a separate shareholder report for the period April 28, 2009 (commencement of operations) through April 30, 2009. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE TWELVE-MONTH PERIOD ENDED APRIL 30, 2009? During this period, downward pressure on the economy continued and stress in the financial and credit markets led to increased price volatility for most securities, reduced liquidity and a general flight to quality. In an effort to improve overall economic conditions, the Federal Reserve (Fed) continued to cut interest rates, lowering the fed funds rate from 2.00% in May 2008 to a target range of zero to 0.25% in December 2008, its lowest level on record. In March 2009, the Fed announced that, in addition to maintaining the target rate at its current level, it would buy $300 billion of long-term Treasury securities in an effort to support private credit markets, and up to an additional $750 billion (for a total of $1.25 trillion) in agency mortgage-backed securities to bolster the housing market. The Fed's rate-cutting was in part a response to the decline in U.S. economic growth, as measured by the U.S. gross domestic product (GDP). Since posting growth of 2.8% in the second quarter of 2008, the GDP has contracted at annual rates of 0.5% in the third quarter of 2008, 6.3% in the fourth quarter of 2008, and 5.7% in the first quarter of 2009, all of which adds up to the worst recession in 50 years. The ongoing housing slump also continued to trouble the economy, with the average home price falling 19.1% nationally between March 2008 and March 2009, pushing home values to 2002 levels. In the labor markets, April 2009 marked the sixteenth consecutive month of job losses, with a total of 5.7 million jobs lost since the economic recession began in January 2008. The national unemployment rate for April 2009 was 8.9%, its highest point since 1983, up from 5.0% in April 2008. At the same time, inflation remained subdued, as the Consumer Price Index (CPI), reflecting a 25% drop in energy prices, fell 0.7% year-over-year as of April 2009, the largest 12-month decline since 1955. The core CPI (which excludes food and CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS. DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY FORWARD-LOOKING STATEMENTS AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING STATEMENTS OR VIEWS EXPRESSED HEREIN. 4 Nuveen Investments energy) rose 1.9% over this same period, within the Fed's unofficial objective of 2.0% or lower for this measure. During this period, the nation's financial institutions and markets--including the municipal bond market--experienced significant turmoil, and reductions in demand for many types of securities decreased valuations. In the municipal market, this negative impact was felt across all credit ratings, particularly lower-rated credits, reducing the net asset values of municipal bond funds. As a result, some of the dealer firms that make markets in bonds were unwilling to commit capital to purchase or continue serving as dealers. The reduction in dealer involvement was accompanied by significant selling pressure by investors, predominantly related to lower-rated municipal bonds. This was especially true of institutional investors, whose need to reduce the leveraging of their municipal investments forced them to remove money from the municipal market. This deleveraging was driven to some extent by the overall reduction in the amount of financing available for leverage, the increased costs of leverage financing, and the need to reduce leverage levels that had increased as municipal bond prices declined. Municipal bond prices were further negatively impacted by concerns that the need for additional deleveraging and a supply overhang (i.e., a large backlog of new issues that had been postponed) would cause selling pressure to persist. The municipal market was also beset by conditions that contributed to greater price volatility, including wider credit spreads (i.e., lower quality bonds fell in price more than higher quality bonds); greatly reduced liquidity (i.e., the ability to sell bonds at prices close to their carrying values), particularly for lower quality bonds; and a lack of price transparency (i.e., the ability to accurately determine the price at which a bond would likely trade). The performance of the municipal bond market was significantly impacted during this period by these events as well as by concerns about the credit markets, downgrades of municipal bond insurers, and the freeze-up of the auction rate market. The surges of selling pressure resulting from these events added to the level of illiquidity in the market, which combined with the Fed rate cuts to produce a steepening of the municipal yield curve. For the twelve-month period as a whole, bonds with shorter and intermediate maturities generally outperformed longer maturity bonds, and higher quality bonds tended to outperform lower quality credits. After a very difficult phase, market conditions began to show some general signs of improvement in mid-December 2008, and municipal bonds were on an improving trend during the first four months of 2009. In April 2009, this was enhanced by the introduction of Build America Bonds (BABs), which were authorized by the American Recovery and Reinvestment Act of 2009. This legislation allows state and local governments to sell taxable bonds and receive a subsidy equal to 35% of the interest cost instead of the tax exemptions standard in the municipal market. The issuance of BABs has taken some of the supply out of the new issuance municipal market and reduced concerns about a supply overhang, driving up prices on tax-exempt municipal issues, especially among bonds with longer maturities. Over the twelve months ended April 30, 2009, municipal bond issuance nationwide totaled $430.0 billion, a drop of 5% compared with the twelve-month period ended April 30, 2008. While market conditions during this period impacted the demand for municipal Nuveen Investments 5 bonds, investors, especially from the retail sector, continued to be attracted by the higher interest rates and yields of the municipal bond market relative to taxable bonds. HOW WERE ECONOMIC AND MARKET CONDITIONS IN NEW JERSEY AND PENNSYLVANIA? In 2008, New Jersey's economy grew at a rate of 0.6%, which ranked the state 31st in the nation in terms of GDP growth, just behind the national average growth rate of 0.7%. Although New Jersey continued to benefit from a highly diverse industrial base and the presence of a large number of high-tech and research companies, the state's labor market has recently deteriorated. Only the education and health care services sector continued to post employment gains over the period, which were more than offset by major job losses in manufacturing, construction and financial services. The state's strong links to international trade, including import and export activity at New Jersey's once-bustling Newark and Camden ports, have been weakened by the deceleration in trade due to the worldwide recession. In April 2009, New Jersey's jobless rate was 8.4%, its highest level since December 1992, up from 5.0% in April 2008 but less than the national average of 8.9%. All of these factors have led to a sharp decrease in state revenues, and New Jersey faces growing fiscal problems, including an estimated $1.2 billion budget gap for fiscal 2010. Proposals for closing this shortfall include spending cuts and a reduction in state payrolls. New Jersey could also be forced to reduce spending on outside contracts, resulting in a negative impact on private sector businesses. As of April 30, 2009, New Jersey general obligation debt was rated Aa3/AA/AA by Moody's, Standard & Poor's (S&P) and Fitch, respectively. Moody's and Fitch listed their outlooks for the state as negative, while S&P continued to post a stable outlook. For the twelve months ended April 30, 2009, municipal issuance in New Jersey totaled $15.1 billion. Although still more dependent on the manufacturing sector than the nation as a whole, Pennsylvania has made aggressive efforts to diversify its economy into new industries in recent years. As a result, health and education services now comprise the largest segment of the commonwealth's economy. In conjunction with these sectors, Pennsylvania has a strong presence in biotechnology and pharmaceutical research and manufacturing, with the commonwealth's higher education institutions, including several medical schools, contributing to growth in these areas. Retail trade has served as another growth driver, although that sector is now feeling the impact of the economic slump. Even before the current recession, however, Pennsylvania's old-line manufacturing sector was in major decline, with little indication of any short-term turnaround. Growth in the service sectors also slowed. Declining home prices and the resulting layoffs in housing-related industries as well as an aging infrastructure also served as hurdles to growth. In 2008, Pennsylvania's economy grew at a rate of 1.1%, which ranked it 26th in the nation in terms of GDP growth, compared with the national average growth rate of 0.7%. As of April 2009, unemployment in Pennsylvania was 7.8%, up from 5.0% in April 2008 but less than the national average of 8.9%. For fiscal 2009, the commonwealth's $61.3 billion budget contained no broad-based tax increases, relying on $375 million from the budget stabilization reserve fund to achieve balance. Current projections estimate a potential revenue shortfall of $2.3 billion by the end of the fiscal year in June 2009, and various measures, including 6 Nuveen Investments expenditure reductions and the use of federal stimulus funds, which are estimated at $1.9 billion for Pennsylvania, have been suggested to close the gap. In March 2009, Moody's and S&P confirmed their ratings on Pennsylvania general obligation debt at Aa2 and AA, respectively, while Fitch maintained its rating at AA. Moody's listed its outlook for Pennsylvania as negative, while S&P's outlook remained positive. During the twelve months ended April 30, 2009, municipal issuance in the commonwealth totaled $18.4 billion. WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING PERIOD? During this time, as the municipal market remained under pressure from price volatility, reduced liquidity and fundamental economic concerns, we continued to focus on finding bonds that offered relative value, while seeking to manage liquidity and invest for the long term. Much of our investment activity during this period was driven by opportunities created by market conditions. We sought to capitalize on this environment by continuing to take a bottom-up approach to finding undervalued sectors and individual credits with the potential to perform well over the long term. Overall, our emphasis was on purchasing higher coupon bonds with longer maturities, i.e., 20 to 30 years, to take advantage of the spreads offered by the extremely steep yield curve. Among the credits we added, especially in the Pennsylvania Funds, were higher education and housing bonds. We also were able to purchase lower-rated health care bonds at discounted prices as the result of selling by some municipal market participants, particularly during the last part of 2008. Some of the cash for new purchases was generated by bond calls. In addition, we monitored the types of credits and bond structures that were attractive to the retail market and took advantage of strong bids to sell bonds into relatively consistent retail demand. In view of tighter liquidity, we positioned the Funds somewhat more defensively by retaining slightly more cash than usual in order to improve the Funds' liquidity profiles and have the capital we needed to reinvest at opportune times. During this period, we used inverse floating rate securities1 in seven of the eight Funds (NUJ did not use inverse floaters). We employed inverse floaters for a variety of reasons, including duration2 management, income enhancement, and as a form of leverage. NNJ and NVY also invested in additional types of derivatives3 intended to help manage duration and common share net asset value (NAV) volatility without having a negative impact on income streams or common share dividends over the short term. As of April 30, 2009, the inverse floaters remained in place in the seven Funds, while we had removed the derivative positions from NNJ and NVY. (1) An inverse floating rate security, also known as inverse floaters, is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during the reporting period, are further defined within the Notes to Financial Statements and Glossary of Terms Used in this Report sections of this report. (2) Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. (3) Each Fund may invest in derivative instruments such as forwards, futures, options, and swap transactions. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, see the Portfolio of Investments, Financial Statements, and Notes to Financial Statements sections of this report. Nuveen Investments 7 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen New Jersey and Pennsylvania Funds, as well as relevant index and peer group information, are presented in the accompanying table. AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE FOR PERIODS ENDED 4/30/09 1-YEAR 5-YEAR 10-YEAR - -------------------------------------------------------------------------------- NEW JERSEY FUNDS NQJ -3.41% 3.23% 4.47% NNJ -0.40% 3.62% 4.84% NXJ -3.63% 3.16% N/A NUJ -4.36% 3.38% N/A PENNSYLVANIA FUNDS NQP -1.01% 3.11% 4.34% NPY -2.65% 2.53% 4.37% NXM -4.57% 2.82% N/A NVY -2.33% 3.32% N/A Lipper Other States Municipal Debt Funds Average(4) -2.30% 3.12% 4.26% Barclays Capital Municipal Bond Index(5) 3.11% 4.11% 4.78% S&P New Jersey Municipal Bond Index(6) 1.14% 3.84% 4.61% S&P Pennsylvania Municipal Bond Index(6) 1.85% 4.01% 4.70% - -------------------------------------------------------------------------------- For the twelve months ended April 30, 2009, the total returns on common share NAV for NNJ and NQP exceeded the average return for the Lipper Other States Municipal Debt Funds Average, NVY performed in line with the Lipper group, and NQJ, NXJ, NUJ, NPY and NXM trailed the Lipper benchmark. All of the New Jersey and Pennsylvania Funds underperformed the returns on the national Barclays Capital Municipal Bond Index and their respective Standard & Poor's (S&P) New Jersey or Pennsylvania Municipal Bond Index for the period. Shareholders should note that some of the benchmarks shown in the accompanying table include bonds from states in addition to New Jersey and Pennsylvania, which may make direct comparisons between the Funds and these benchmarks less meaningful. Key management factors that influenced the Funds' returns during this period included duration and yield curve positioning, the use of derivatives, credit exposure and sector allocations, and individual security selection. In addition, the use of leverage was an important factor affecting the Funds' performances over this period. The impact of leverage is discussed in more detail on page 10. Over the course of this twelve-month period, the municipal bond yield curve remained steep. Bonds in the Barclays Capital Municipal Bond Index with maturities of three to ten Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. (4) The Lipper Other States Municipal Debt Funds Average is calculated using the returns of all closed-end funds in this category for each period as follows: 1-year, 46 funds; 5-year, 46 funds; and 10-year, 18 funds. Fund and Lipper returns assume reinvestment of dividends. (5) The Barclays Capital (formerly Lehman Brothers) Municipal Bond Index is an unleveraged, unmanaged national index comprising a broad range of investment-grade municipal bonds. Results for the Barclays Capital index do not reflect any expenses. (6) The Standard & Poor's (S&P) New Jersey and Pennsylvania Municipal Bond Indexes are unleveraged, market value-weighted indexes designed to measure the performance of the municipal bond market, in these states. 8 Nuveen Investments years, especially those maturing in approximately four to six years, benefited the most from the interest rate environment. Although the New Jersey Funds were generally underweighted in the shorter part of the yield curve and overweighted in the longest part, these Funds had good allocations to the intermediate parts of the curve that performed well. This made their duration and yield curve positioning a net positive for performance during this period, except in NXJ, which had the highest exposure to longer bonds among these four Funds. Among the Pennsylvania Funds, duration positioning was neutral for performance except in NXM, which was penalized by heavier exposure to the longer part of the yield curve. As mentioned earlier, seven of the eight Funds used inverse floating rate securities. During this period, the impact of the inverse floaters varied, with inverse floaters based on higher credit quality bonds outperforming those that used lower-quality credits. In general, the inverse floaters had a positive impact on performance in the Pennsylvania Funds and a neutral impact in the New Jersey Funds. At the same time, the inverse floaters also benefited all of the Funds by helping to support their income streams. In addition, NNJ and NVY, which had durations that were shorter than our strategic target, used derivative positions during part of this period to synthetically extend duration and move the Funds closer to the target. These derivative positions, which boosted the Funds' interest rate sensitivity, performed well and made positive contributions to NNJ and NVY's total return performance. Credit quality exposure was also a major factor in performance during this period, as contributions from duration and yield curve positioning and the use of derivatives were offset to varying degrees by the Funds' exposures to lower-rated credits. During a difficult economic environment and disruptions in the financial markets, risk-averse investors put a priority on higher quality investments, and bonds with higher credit quality typically performed very well. Bonds rated BBB or below and non-rated bonds generally posted poorer returns. Pre-refunded7 bonds, which are backed by U.S. Treasury securities, were one of the top performing segments of the market, due primarily to their shorter effective maturities, higher credit quality, and perceived safety. Among the Pennsylvania Funds, NQP and NVY had significantly larger exposures to pre-refunded bonds, while NXM had the smallest allocation of these bonds. Additional sectors of the market that generally contributed positively to the Funds' returns included general obligation and other tax-backed bonds, water and sewer, education, and housing credits. The performances of all of these Funds were hampered by their underweighting in tax-backed bonds relative to the market indexes. The New Jersey Funds were also relatively underexposed to education bonds, while the Pennsylvania Funds benefited from good allocations of education credits. Holdings that generally detracted from the Funds' performances included industrial development revenue (IDR) bonds, which performed very poorly during this period. The health care revenue sector also underperformed the overall municipal market. All of these Funds, especially NXM and NVY, had larger allocations to the IDR sector than the market as a whole, and the New Jersey Funds were also heavily weighted in health care, particularly NUJ. Zero coupon bonds also performed poorly, as did lower-rated tobacco bonds. (7) Pre-refundings, also known as advance refundings or refinancings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older existing bonds. This process often results in lower borrowing costs for bond issuers. Nuveen Investments 9 Individual security selection was also a factor in the Funds' performances during this period. In particular, the Funds were impacted to varying degrees by the downgrades of municipal bond issuers, and the subsequent impact on the returns and values of insured bonds. See below for more information on municipal bond insurers. IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE In this generally unfavorable investment environment, a significant factor impacting the returns of these Funds relative to the comparative indexes was the Funds' use of financial leverage. The Funds use leverage because their managers believe that, over time, leveraging provides opportunities for additional income and total returns for common shareholders. However, use of leverage also can expose common shareholders to additional risk--especially when market conditions are as unfavorable as they were during much of this twelve-month period. As the prices of many securities held by these Funds declined, the negative impact of these valuation changes on common share net asset value and common shareholder total return was magnified by the use of leverage. RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES Another factor that had an impact on the performance of these Funds was their positions in bonds backed by municipal bond insurers that experienced downgrades in their credit ratings. At the time this report was prepared, there were no longer any bond insurers rated AAA by all three of the major rating agencies (Moody's Investor Service, S&P and Fitch) and at least one rating agency has placed each insurer on "negative credit watch," "credit watch evolving," "credit outlook developing," or "rating withdrawn," which may presage one or more rating reductions in the future. As concern increased about the balance sheets of insurers, prices on insured bonds - especially those bonds issued by weaker underlying credits - declined, detracting from the Funds' performance. By the end of this period, most insured bonds were being valued according to their fundamentals as if they were uninsured. On the whole, the holdings of these Funds continued to be well diversified, and it is important to note that municipal bonds historically have had a very low rate of default. RECENT DEVELOPMENTS IN THE AUCTION RATE PREFERRED SECURITIES MARKETS As noted in previous shareholder reports, beginning in February 2008, more shares were submitted for sale in the regularly scheduled auctions for the auction rate preferred shares issued by these Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many, or all, of the Funds' auction rate preferred shareholders who wanted to sell their shares in these auctions were unable to do so. This decline in liquidity in auction rate preferred shares did not lower the credit quality of these shares, and auction rate preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions, as calculated in accordance with the pre-established terms of the auction rate preferred shares. 10 Nuveen Investments These developments generally have not affected the portfolio management or investment policies of these Funds. However, one continuing implication for common shareholders of these auction failures is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future common share earnings may be lower than they otherwise might have been. As noted in the last shareholder report, the Funds' Board of Directors/Trustees authorized a plan to use tender option bonds (TOBs), also known as floating rate securities, to refinance a portion of the Funds' outstanding auction rate preferred shares. As of April 30, 2009, the amount of auction rate preferred securities redeemed by the Funds are as shown in the accompanying table. AUCTION RATE % OF ORIGINAL PREFERRED SHARES AUCTION RATE FUND REDEEMED PREFERRED SHARES - -------------------------------------------------------------------------------- NQJ $ 12,175,000 7.5% NNJ $ -- 0.0% NXJ $ 975,000 2.0% NUJ $ 1,900,000 5.5% NQP $ 20,250,000 15.3% NPY $ 18,825,000 15.9% NXM $ 2,500,000 10.0% NVY $ 5,500,000 19.3% - -------------------------------------------------------------------------------- Subsequent to the reporting period, NQJ, NNJ, NXJ and NUJ noticed for redemption an additional $3,525,000, $2,075,000, $1,100,000 and $775,000 auction rate preferred securities, respectively. While the Funds' Board of Directors/Trustees and management continue to work to resolve this situation, the Funds cannot provide any assurance on when the remaining outstanding auction rate preferred shares might be redeemed. As of April 30, 2009, sixty-seven Nuveen closed-end municipal funds have redeemed and/or noticed for redemption at par a portion of their outstanding auction rate preferred shares. These redemptions bring the total amount of Nuveen's municipal closed-end funds' auction rate preferred share redemptions to approximately $2.1 billion of the original $11 billion outstanding. For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred Resource Center at: http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.aspx. Nuveen Investments 11 Common Share Dividend and Share Price Information During the twelve-month reporting period ended April 30, 2009, NQP, NPY and NVY each had two monthly dividend increases, NXM had one monthly dividend increase, and the dividends of NQJ, NXJ and NUJ remained stable throughout the period. NNJ had one dividend cut in October 2008. Due to normal portfolio activity, common shareholders of the following Funds received capital gains and/or net ordinary income distributions at the end of December 2008 as follows: SHORT-TERM CAPITAL GAINS AND/OR LONG-TERM ORDINARY CAPITAL GAINS INCOME (PER SHARE) (PER SHARE) - -------------------------------------------------------------------------------- NQJ $ 0.0465 $ 0.0431 NNJ $ 0.0533 $ 0.0311 NXJ $ 0.0390 $ 0.0379 NUJ $ 0.0443 $ 0.0291 NPY -- $ 0.0017 NVY $ 0.0040 -- - -------------------------------------------------------------------------------- All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of April 30, 2009, all of the Funds in this report had positive UNII balances for both tax and financial statement purposes. COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION The Funds' Board of Directors/Trustees approved an open-market share repurchase program on July 10, 2007, for NQP and NPY and on July 30, 2008, for NQJ, NNJ, NXJ, NUJ, NXM and NVY under which each Fund may repurchase an aggregate of up to 10% of its outstanding common shares. Since the inception of this program, NVY has not repurchased any of its outstanding common shares. 12 Nuveen Investments As of April 30, 2009, the Funds repurchased common shares as shown in the accompanying table. % OF COMMON OUTSTANDING SHARES COMMON FUND REPURCHASED SHARES - -------------------------------------------------------------------------------- NQJ 30,600 0.2% NNJ 12,900 0.1% NXJ 7,200 0.1% NUJ 2,800 0.1% NQP 167,400 1.0% NPY 207,900 1.3% NXM 2,000 0.1% - -------------------------------------------------------------------------------- During the twelve-month reporting period, common shares were repurchased at a weighted average price and a weighted average discount per common share as shown in the accompanying table. WEIGHTED WEIGHTED AVERAGE AVERAGE PRICE DISCOUNT PER SHARE PER SHARE FUND REPURCHASED REPURCHASED - -------------------------------------------------------------------------------- NQJ $ 10.34 18.29% NNJ $ 11.07 17.90% NXJ $ 10.14 18.93% NUJ $ 10.41 17.27% NQP $ 10.80 18.20% NPY $ 10.01 18.84% NXM $ 10.49 17.12% - -------------------------------------------------------------------------------- As of April 30, 2009, the Funds' common share prices were trading at discounts to their common share NAVs as shown in the accompanying table. 4/30/09 TWELVE-MONTH FUND DISCOUNT AVERAGE DISCOUNT - -------------------------------------------------------------------------------- NQJ -12.54% -13.30% NNJ -13.52% -13.83% NXJ -14.03% -14.06% NUJ -11.37% -11.07% NQP -16.19% -15.81% NPY -16.67% -16.75% NXM -13.60% -12.49% NVY -14.68% -13.40% - -------------------------------------------------------------------------------- Nuveen Investments 13 NQJ Performance OVERVIEW | Nuveen New Jersey Investment Quality Municipal Fund, Inc. as of April 30, 2009 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.37 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.00 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -12.54% - -------------------------------------------------------------------------------- Market Yield 5.75% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.53% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 265,928 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.48 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.47 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -7.10% -3.41% - -------------------------------------------------------------------------------- 5-Year 1.02% 3.23% - -------------------------------------------------------------------------------- 10-Year 2.34% 4.47% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 22.8% - -------------------------------------------------------------------------------- Transportation 16.5% - -------------------------------------------------------------------------------- Health Care 14.7% - -------------------------------------------------------------------------------- U.S. Guaranteed 14.3% - -------------------------------------------------------------------------------- Education and Civic Organizations 10.8% - -------------------------------------------------------------------------------- Water and Sewer 5.4% - -------------------------------------------------------------------------------- Tax Obligation/General 4.6% - -------------------------------------------------------------------------------- Other 10.9% - -------------------------------------------------------------------------------- Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 32% AA 33% A 15% BBB 13% BB or Lower 1% N/R 6% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.0545 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Oct 0.0545 Nov 0.0545 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.0545 Apr 0.0545 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.13 13.1 13.248 13.24 13.36 13.25 13.37 13.08 12.94 12.8799 12.76 12.83 12.85 12.44 12.59 12.67 12.68 12.71 12.76 12.76 12.66 12.15 11.2 10.79 8.1 9.54 10.7101 10.31 10.7084 10.16 9.75 9.68 9.5 8.61 9.31 9.36 9.92 11.4 11.26 10.8 10.9 11.29 11.23 10.39 10.61 10.26 10.53 10.63 10.71 11.08 11.13 11.3001 11.38 4/30/09 11.37 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0896 per share. 14 Nuveen Investments NNJ Performance OVERVIEW | Nuveen New Jersey Premium Income Municipal Fund, Inc. as of April 30, 2009 Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 28% AA 42% A 15% BBB 11% BB or Lower 1% N/R 3% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.0545 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Oct 0.0515 Nov 0.0515 Dec 0.0515 Jan 0.0515 Feb 0.0515 Mar 0.0515 Apr 0.0515 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.53 13.48 13.6 13.58 13.64 13.61 13.597 13.21 13.01 13.01 13 13.07 12.95 12.85 12.78 12.977 12.97 12.8 13.14 13.12 12.85 12.86 11.75 11.15 8.24 9.78 10.85 10.86 11.08 10.674 9.35 9.994 9.5754 9.05 10.25 10.12 10.57 11.67 11.46 11.482 11.88 11.97 12.1 11.38 11.8 11.19 11.1 11.18 11.36 11.7 12.03 11.97 11.97 4/30/09 11.96 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.96 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.83 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -13.52% - -------------------------------------------------------------------------------- Market Yield 5.17% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 7.67% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 166,428 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 13.94 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 9.74 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -5.69% -0.40% - -------------------------------------------------------------------------------- 5-Year 1.92% 3.62% - -------------------------------------------------------------------------------- 10-Year 2.86% 4.84% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 27.2% - -------------------------------------------------------------------------------- U.S. Guaranteed 17.4% - -------------------------------------------------------------------------------- Health Care 12.7% - -------------------------------------------------------------------------------- Transportation 12.2% - -------------------------------------------------------------------------------- Education and Civic Organizations 9.9% - -------------------------------------------------------------------------------- Water and Sewer 8.8% - -------------------------------------------------------------------------------- Tax Obligation/General 6.5% - -------------------------------------------------------------------------------- Other 5.3% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0844 per share. Nuveen Investments 15 NXJ Performance OVERVIEW | Nuveen New Jersey Dividend Advantage Municipal Fund as of April 30, 2009 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.15 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.97 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -14.03% - -------------------------------------------------------------------------------- Market Yield 5.92% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.78% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 85,230 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.60 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.65 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -8.95% -3.63% - -------------------------------------------------------------------------------- 5-Year 0.86% 3.16% - -------------------------------------------------------------------------------- Since Inception 2.23% 4.58% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Tax Obligation/Limited 23.1% - -------------------------------------------------------------------------------- U.S. Guaranteed 15.9% - -------------------------------------------------------------------------------- Health Care 14.7% - -------------------------------------------------------------------------------- Water and Sewer 13.9% - -------------------------------------------------------------------------------- Education and Civic Organizations 12.3% - -------------------------------------------------------------------------------- Transportation 11.8% - -------------------------------------------------------------------------------- Other 8.3% - -------------------------------------------------------------------------------- Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 24% AA 30% A 23% BBB 17% BB or Lower 2% N/R 4% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.055 Oct 0.055 Nov 0.055 Dec 0.055 Jan 0.055 Feb 0.055 Mar 0.055 Apr 0.055 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.13 13.2 13.36 13.25 13.27 13.37 13.3 12.94 12.85 12.65 12.65 12.63 12.62 12.5 12.58 12.55 12.55 12.44 12.68 12.56 12.48 11.95 11.03 10.618 8.1 9.74 10.3 10.23 10.26 9.675 9.1 9.5 9.05 8.53 8.9 8.97 9.57 10.7999 10.38 10.25 10.59 10.96 10.9 10.23 10.67 10.12 10.39 10.27 10.55 10.83 10.976 11.21 11.1166 4/30/09 11.15 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0769 per share. 16 Nuveen Investments NUJ Performance OVERVIEW | Nuveen New Jersey Dividend Advantage Municipal Fund 2 as of April 30, 2009 Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 29% AA 30% A 23% BBB 13% BB or Lower 4% N/R 1% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.0575 Jun 0.0575 Jul 0.0575 Aug 0.0575 Sep 0.0575 Oct 0.0575 Nov 0.0575 Dec 0.0575 Jan 0.0575 Feb 0.0575 Mar 0.0575 Apr 0.0575 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.58 13.6 13.6 13.7 13.96 13.87 14.35 13.5 13.4 13.4 13.059 13.42 13.26 13.01 13.04 12.98 13.15 13.25 13.57 13.55 13.18 12.85 11.9 11.2 8.25 9.78 10.8 10.8 10.88 9.97 9.15 9.55 9.15 8.42 8.95 9.14 9.83 11.06 10.41 10.54 11 11.33 11.388 10.99 11.36 10.75 10.72 10.6116 10.88 11.25 11.59 11.32 11.51 4/30/09 11.46 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.46 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.93 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -11.37% - -------------------------------------------------------------------------------- Market Yield 6.02% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.93% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 58,456 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.59 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.86 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -9.75% -4.36% - -------------------------------------------------------------------------------- 5-Year 2.02% 3.38% - -------------------------------------------------------------------------------- Since Inception 2.34% 4.65% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Health Care 20.0% - -------------------------------------------------------------------------------- Tax Obligation/Limited 19.2% - -------------------------------------------------------------------------------- U.S. Guaranteed 18.1% - -------------------------------------------------------------------------------- Transportation 15.8% - -------------------------------------------------------------------------------- Education and Civic Organizations 10.0% - -------------------------------------------------------------------------------- Long-Term Care 5.7% - -------------------------------------------------------------------------------- Other 11.2% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.6%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders capital gains and net ordinary income distributions in December 2008 of $0.0734 per share. Nuveen Investments 17 NQP Performance OVERVIEW | Nuveen Pennsylvania Investment Quality Municipal Fund as of April 30, 2009 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.34 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.53 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -16.19% - -------------------------------------------------------------------------------- Market Yield 6.19% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.87% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 218,353 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.32 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.97 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 2/21/91) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -7.99% -1.01% - -------------------------------------------------------------------------------- 5-Year 1.64% 3.11% - -------------------------------------------------------------------------------- 10-Year 1.62% 4.34% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 20.1% - -------------------------------------------------------------------------------- Education and Civic Organizations 19.4% - -------------------------------------------------------------------------------- Tax Obligation/General 16.4% - -------------------------------------------------------------------------------- Health Care 8.5% - -------------------------------------------------------------------------------- Transportation 8.0% - -------------------------------------------------------------------------------- Housing/Single Family 6.3% - -------------------------------------------------------------------------------- Tax Obligation/Limited 6.2% - -------------------------------------------------------------------------------- Water and Sewer 4.3% - -------------------------------------------------------------------------------- Other 10.8% - -------------------------------------------------------------------------------- Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 40% AA 36% A 13% BBB 10% N/R 1% 2008-2009 Monthly Tax-Free Dividends Per Common Share [BAR CHART] May $ 0.055 Jun 0.055 Jul 0.055 Aug 0.055 Sep 0.057 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.0585 Apr 0.0585 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.13 13.154 13.11 13.16 13.19 13.05 12.93 12.7 12.57 12.57 12.63 12.59 12.4401 12.25 12.25 12.25 12.19 12.105 12.23 12.35 12.24 11.58 10.67 10.25 7.66 9.03 10.29 10.286 10.47 10.28 9.08 9.47 8.76 8.25 8.83 9.17 9.67 10.97 10.9552 10.8499 10.95 11.26 11.38 10.67 10.975 10.68 10.5301 10.75 11.18 11.43 11.53 11.29 11.39 4/30/09 11.34 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30.2%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 18 Nuveen Investments NPY Performance OVERVIEW | Nuveen Pennsylvania Premium Income Municipal Fund 2 as of April 30, 2009 Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 28% AA 35% A 14% BBB 15% BB or Lower 2% N/R 6% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.0495 Jun 0.0495 Jul 0.0495 Aug 0.0495 Sep 0.052 Oct 0.052 Nov 0.052 Dec 0.052 Jan 0.052 Feb 0.052 Mar 0.0565 Apr 0.0565 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 12.31 12.26 12.28 12.4 12.36 12.32 12.37 12.13 11.83 11.8999 12.06 11.93 11.71 11.48 11.53 11.53 11.53 11.537 11.59 11.73 11.52 11.26 10.14 9.89 7.2 8.36 9.39 9.35 9.71 9.03 8.74 8.75 8.13 7.55 8.21 8.29 9.04 10.15 10.06 10.02 10.08 10.34 10.53 9.93 10.09 9.93 9.99 10.05 10.07 10.36 10.68 10.57 10.63 4/30/09 10.6036 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 10.60 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 12.72 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -16.67% - -------------------------------------------------------------------------------- Market Yield 6.40% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 9.17% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 198,739 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 15.71 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 11.94 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/18/93) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -8.43% -2.65% - -------------------------------------------------------------------------------- 5-Year 0.93% 2.53% - -------------------------------------------------------------------------------- 10-Year 3.36% 4.37% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 15.9% - -------------------------------------------------------------------------------- U.S. Guaranteed 15.3% - -------------------------------------------------------------------------------- Transportation 13.2% - -------------------------------------------------------------------------------- Tax Obligation/General 11.5% - -------------------------------------------------------------------------------- Health Care 9.3% - -------------------------------------------------------------------------------- Water and Sewer 8.1% - -------------------------------------------------------------------------------- Utilities 6.2% - -------------------------------------------------------------------------------- Tax Obligation/Limited 5.9% - -------------------------------------------------------------------------------- Other 14.6% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30.2%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders a net ordinary income distribution in December 2008 of $0.0017 per share. Nuveen Investments 19 NXM Performance OVERVIEW | Nuveen Pennsylvania Dividend Advantage Municipal Fund as of April 30, 2009 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.31 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.09 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -13.60% - -------------------------------------------------------------------------------- Market Yield 6.21% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 8.90% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 43,587 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 16.75 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 12.19 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/27/01) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -11.67% -4.57% - -------------------------------------------------------------------------------- 5-Year 1.21% 2.82% - -------------------------------------------------------------------------------- Since Inception 2.85% 5.19% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- Education and Civic Organizations 18.2% - -------------------------------------------------------------------------------- Health Care 14.6% - -------------------------------------------------------------------------------- Long-Term Care 11.5% - -------------------------------------------------------------------------------- Tax Obligation/Limited 9.6% - -------------------------------------------------------------------------------- Tax Obligation/General 9.4% - -------------------------------------------------------------------------------- U.S. Guaranteed 9.0% - -------------------------------------------------------------------------------- Transportation 8.0% - -------------------------------------------------------------------------------- Housing/Single Family 5.8% - -------------------------------------------------------------------------------- Other 13.9% - -------------------------------------------------------------------------------- Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 25% AA 29% A 19% BBB 11% BB or Lower 5% N/R 11% 2008-2009 Monthly Tax-Free Dividends Per Common Share [BAR CHART] May $ 0.057 Jun 0.057 Jul 0.057 Aug 0.057 Sep 0.0585 Oct 0.0585 Nov 0.0585 Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.65 13.7 13.96 13.85 13.65 13.58 13.48 13.1 13.06 12.99 13.1 12.94 13.24 13.05 12.78 12.67 12.51 12.51 12.67 12.84 12.61 11.84 11.476 11.56 9.43 9.63 10.69 10.76 10.91 11.17 9.23 9.54 9.27 8.482 8.85 9.28 9.79 11.65 11.65 11.28 11.41 11.44 11.42 10.86 10.92 10.15 10.46 10.388 10.61 10.96 10.8895 10.86 11.14 4/30/09 11.31 (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30.2%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. 20 Nuveen Investments NVY Performance OVERVIEW | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 as of April 30, 2009 Credit Quality (as a % of total investments)(1) [PIE CHART] AAA/U.S. Guaranteed 26% AA 41% A 10% BBB 15% BB or Lower 4% N/R 4% 2008-2009 Monthly Tax-Free Dividends Per Common Share(3) [BAR CHART] May $ 0.0575 Jun 0.0575 Jul 0.0575 Aug 0.0575 Sep 0.0585 Oct 0.0585 Nov 0.0585 Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0605 Apr 0.0605 Common Share Price Performance -- Weekly Closing Price [LINE CHART] 5/01/08 $ 13.53 13.51 13.82 13.85 13.58 13.59 13.58 13.04 12.82 12.78 13.06 12.71 12.69 12.78 12.76 12.56 12.51 12.63 12.7 12.82 12.86 11.85 11.05 11.139 7.8 9.73 10.17 10.33 10.79 10.2684 8.77 9.3619 9.29 8.57 9.36 9.14 8.99 11.25 10.9 11.15 11.25 11.251 11.34 11.026 11.75 12.03 12.15 11.62 11.499 12.24 11.71 11.76 11.59 4/30/09 11.45 FUND SNAPSHOT - -------------------------------------------------------------------------------- Common Share Price $ 11.45 - -------------------------------------------------------------------------------- Common Share Net Asset Value $ 13.42 - -------------------------------------------------------------------------------- Premium/(Discount) to NAV -14.68% - -------------------------------------------------------------------------------- Market Yield 6.34% - -------------------------------------------------------------------------------- Taxable-Equivalent Yield(2) 9.08% - -------------------------------------------------------------------------------- Net Assets Applicable to Common Shares ($000) $ 49,993 - -------------------------------------------------------------------------------- Average Effective Maturity on Securities (Years) 14.26 - -------------------------------------------------------------------------------- Leverage-Adjusted Duration 10.22 - -------------------------------------------------------------------------------- AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) - -------------------------------------------------------------------------------- ON SHARE PRICE ON NAV - -------------------------------------------------------------------------------- 1-Year -9.16% -2.33% - -------------------------------------------------------------------------------- 5-Year 2.10% 3.32% - -------------------------------------------------------------------------------- Since Inception 2.19% 4.89% - -------------------------------------------------------------------------------- INDUSTRIES (as a % of total investments) - -------------------------------------------------------------------------------- U.S. Guaranteed 19.3% - -------------------------------------------------------------------------------- Tax Obligation/Limited 15.7% - -------------------------------------------------------------------------------- Tax Obligation/General 14.2% - -------------------------------------------------------------------------------- Education and Civic Organizations 12.5% - -------------------------------------------------------------------------------- Health Care 9.8% - -------------------------------------------------------------------------------- Water and Sewer 6.3% - -------------------------------------------------------------------------------- Housing/Single Family 4.7% - -------------------------------------------------------------------------------- Long-Term Care 4.4% - -------------------------------------------------------------------------------- Other 13.1% - -------------------------------------------------------------------------------- (1) The percentages shown in the foregoing chart may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (2) Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 30.2%. When comparing this Fund to investments that generate qualified dividend income, the Taxable-Equivalent Yield is lower. (3) The Fund paid shareholders a capital gains distribution in December 2008 of $0.0040 per share. Nuveen Investments 21 NQJ NNJ NXJ | Shareholder MEETING REPORT The annual meeting of shareholders was held in the offices of Nuveen Investments on November 18, 2008; at this meeting the shareholders were asked to vote on the election of Board Members, the elimination of Fundamental Investment Policies and the approval of new Fundamental Investment Policies. The meeting was subsequently adjourned to January 13, 2009 and additionally adjourned to March 17, 2009.
NQJ NNJ NXJ - ----------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 9,059,685 896 5,368,743 640 2,793,252 227 Against 666,405 152 544,456 128 221,030 57 Abstain 216,158 64 139,465 18 64,336 21 Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 1,080,559 1,163 - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 4,159,177 1,468 =================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 9,116,378 910 5,359,235 650 2,794,909 257 Against 626,823 137 544,176 118 214,704 25 Abstain 199,047 65 149,253 18 69,005 23 Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 1,080,559 1,163 - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 4,159,177 1,468 =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For 8,994,424 898 5,318,200 627 -- -- Against 726,240 136 567,836 132 -- -- Abstain 221,584 78 166,628 27 -- -- Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 -- -- =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For 8,973,257 907 5,332,178 636 -- -- Against 734,940 141 560,400 126 -- -- Abstain 234,051 64 160,086 24 -- -- Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 -- -- =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 8,939,668 895 5,303,702 642 -- -- Against 750,857 152 574,840 120 -- -- Abstain 251,723 65 174,122 24 -- -- Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 -- -- =================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For 8,944,984 896 5,306,334 643 -- -- Against 734,029 141 568,517 119 -- -- Abstain 263,235 75 177,813 24 -- -- Broker Non-Votes 3,097,651 4,032 1,794,475 2,203 -- -- - ----------------------------------------------------------------------------------------------------------------------------------- Total 13,039,899 5,144 7,847,139 2,989 -- -- ===================================================================================================================================
22 Nuveen Investments
NQJ NNJ NXJ - ---------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class ============================================================================================================================ APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 12,381,210 -- 7,370,898 -- 3,922,807 -- Withhold 658,447 -- 474,970 -- 235,618 -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- 4,158,425 -- ============================================================================================================================ Robert P. Bremner For 12,368,621 -- 7,365,646 -- -- -- Withhold 671,036 -- 480,222 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- -- -- ============================================================================================================================ Jack B. Evans For 12,377,055 -- 7,389,940 -- -- -- Withhold 662,602 -- 455,928 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- -- -- ============================================================================================================================ William C. Hunter For -- 4,867 -- 2,697 -- 1,359 Withhold -- 235 -- 221 -- 107 - ---------------------------------------------------------------------------------------------------------------------------- Total -- 5,102 -- 2,918 -- 1,466 ============================================================================================================================ David J. Kundert For 12,380,067 -- 7,391,552 -- 3,926,731 -- Withhold 659,590 -- 454,316 -- 231,694 -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- 4,158,425 -- ============================================================================================================================ William J. Schneider For -- 4,867 -- 2,697 -- 1,359 Withhold -- 235 -- 221 -- 107 - ---------------------------------------------------------------------------------------------------------------------------- Total -- 5,102 -- 2,918 -- 1,466 ============================================================================================================================ Judith M. Stockdale For 12,364,919 -- 7,362,796 -- -- -- Withhold 674,738 -- 483,072 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- -- -- ============================================================================================================================ Carole E. Stone For 12,371,020 -- 7,374,368 -- -- -- Withhold 668,637 -- 471,500 -- -- -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- -- -- ============================================================================================================================ Terence J. Toth For 12,374,976 -- 7,356,530 -- 3,927,117 -- Withhold 664,681 -- 489,338 -- 231,308 -- - ---------------------------------------------------------------------------------------------------------------------------- Total 13,039,657 -- 7,845,868 -- 4,158,425 -- ============================================================================================================================
Nuveen Investments 23 NUJ NQP NPY | Shareholder MEETING REPORT (continued)
NUJ NQP NPY - ----------------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 2,038,755 207 7,820,745 856 8,119,909 784 Against 162,188 16 530,134 105 663,063 253 Abstain 45,227 18 322,426 97 262,301 26 Broker Non-Votes 674,929 850 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total 2,921,099 1,091 10,889,143 3,256 11,445,735 2,842 =================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 2,046,977 207 7,858,679 851 8,155,451 791 Against 158,613 14 475,540 106 606,665 245 Abstain 40,580 20 339,086 101 283,157 27 Broker Non-Votes 674,929 850 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total 2,921,099 1,091 10,889,143 3,256 11,445,735 2,842 =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- 7,775,516 835 8,099,284 787 Against -- -- 543,830 126 648,771 252 Abstain -- -- 353,959 97 297,218 24 Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total -- -- 10,889,143 3,256 11,445,735 2,842 =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- 7,655,018 851 8,042,223 803 Against -- -- 602,731 109 706,132 239 Abstain -- -- 415,556 98 296,918 21 Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total -- -- 10,889,143 3,256 11,445,735 2,842 =================================================================================================================================== TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 7,742,732 856 8,025,347 774 Against -- -- 560,518 105 715,530 266 Abstain -- -- 370,055 97 304,396 23 Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total -- -- 10,889,143 3,256 11,445,735 2,842 =================================================================================================================================== TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- 7,654,581 856 8,014,963 770 Against -- -- 584,836 105 708,535 270 Abstain -- -- 433,888 97 321,775 23 Broker Non-Votes -- -- 2,215,838 2,198 2,400,462 1,779 - ----------------------------------------------------------------------------------------------------------------------------------- Total -- -- 10,889,143 3,256 11,445,735 2,842 ===================================================================================================================================
24 Nuveen Investments
NUJ NQP NPY - --------------------------------------------------------------------------------------------------------------------------- Common and Common and Common and Preferred Preferred Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting shares voting shares voting together together together together together together as a class as a class as a class as a class as a class as a class =========================================================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 2,759,408 -- 10,257,388 -- 10,775,612 -- Withhold 161,688 -- 631,716 -- 666,978 -- - --------------------------------------------------------------------------------------------------------------------------- Total 2,921,096 -- 10,889,104 -- 11,442,590 -- =========================================================================================================================== Robert P. Bremner For -- -- -- -- -- -- Withhold -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- =========================================================================================================================== Jack B. Evans For -- -- -- -- -- -- Withhold -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- =========================================================================================================================== William C. Hunter For -- 1,044 -- 3,108 -- 2,556 Withhold -- 45 -- 109 -- 141 - --------------------------------------------------------------------------------------------------------------------------- Total -- 1,089 -- 3,217 -- 2,697 =========================================================================================================================== David J. Kundert For 2,754,748 -- 10,260,514 -- 10,765,250 -- Withhold 166,348 -- 628,590 -- 677,340 -- - --------------------------------------------------------------------------------------------------------------------------- Total 2,921,096 -- 10,889,104 -- 11,442,590 -- =========================================================================================================================== William J. Schneider For -- 1,044 -- 3,108 -- 2,556 Withhold -- 45 -- 109 -- 141 - --------------------------------------------------------------------------------------------------------------------------- Total -- 1,089 -- 3,217 -- 2,697 =========================================================================================================================== Judith M. Stockdale For -- -- -- -- -- -- Withhold -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- =========================================================================================================================== Carole E. Stone For -- -- -- -- -- -- Withhold -- -- -- -- -- -- - --------------------------------------------------------------------------------------------------------------------------- Total -- -- -- -- -- -- =========================================================================================================================== Terence J. Toth For 2,759,408 -- 10,255,973 -- 10,756,020 -- Withhold 161,688 -- 633,131 -- 686,570 -- - --------------------------------------------------------------------------------------------------------------------------- Total 2,921,096 -- 10,889,104 -- 11,442,590 -- ===========================================================================================================================
Nuveen Investments 25 NXM NVY | Shareholder MEETING REPORT (continued)
NXM NVY - --------------------------------------------------------------------------------------------------------- Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ========================================================================================================= TO APPROVE THE ELIMINATION OF THE FUND'S FUNDAMENTAL POLICY RELATING TO INVESTMENTS IN MUNICIPAL SECURITIES AND BELOW INVESTMENT GRADE SECURITIES. For 1,656,198 111 1,748,477 150 Against 158,458 9 128,938 33 Abstain 40,828 5 42,008 22 Broker Non-Votes 439,435 602 625,152 553 - --------------------------------------------------------------------------------------------------------- Total 2,294,919 727 2,544,575 758 ========================================================================================================= TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TOINVESTMENTS IN MUNICIPAL SECURITIES FOR THE FUND. For 1,656,591 110 1,778,304 150 Against 158,209 12 108,596 33 Abstain 40,684 3 32,523 22 Broker Non-Votes 439,435 602 625,152 553 - --------------------------------------------------------------------------------------------------------- Total 2,294,919 727 2,544,575 758 ========================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY PROHIBITING INVESTMENT IN OTHER INVESTMENT COMPANIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- - --------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO DERIVATIVES AND SHORT SALES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- - --------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================= TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- - --------------------------------------------------------------------------------------------------------- Total -- -- -- -- ========================================================================================================= TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO COMMODITIES. For -- -- -- -- Against -- -- -- -- Abstain -- -- -- -- Broker Non-Votes -- -- -- -- - --------------------------------------------------------------------------------------------------------- Total -- -- -- -- =========================================================================================================
26 Nuveen Investments
NXM NVY - ------------------------------------------------------------------------------------------ Common and Common and Preferred Preferred Preferred Preferred shares voting shares voting shares voting shares voting together together together together as a class as a class as a class as a class ========================================================================================== APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS: John P. Amboian For 2,103,821 -- 2,409,167 -- Withhold 191,098 -- 135,387 -- - ------------------------------------------------------------------------------------------ Total 2,294,919 -- 2,544,554 -- ========================================================================================== Robert P. Bremner For -- -- -- -- Withhold -- -- -- -- - ------------------------------------------------------------------------------------------ Total -- -- -- -- ========================================================================================== Jack B. Evans For -- -- -- -- Withhold -- -- -- -- - ------------------------------------------------------------------------------------------ Total -- -- -- -- ========================================================================================== William C. Hunter For -- 712 -- 728 Withhold -- 15 -- 9 - ------------------------------------------------------------------------------------------ Total -- 727 -- 737 ========================================================================================== David J. Kundert For 2,103,121 -- 2,409,467 -- Withhold 191,798 -- 135,087 -- - ------------------------------------------------------------------------------------------ Total 2,294,919 -- 2,544,554 -- ========================================================================================== William J. Schneider For -- 712 -- 728 Withhold -- 15 -- 9 - ------------------------------------------------------------------------------------------ Total -- 727 -- 737 ========================================================================================== Judith M. Stockdale For -- -- -- -- Withhold -- -- -- -- - ------------------------------------------------------------------------------------------ Total -- -- -- -- ========================================================================================== Carole E. Stone For -- -- -- -- Withhold -- -- -- -- - ------------------------------------------------------------------------------------------ Total -- -- -- -- ========================================================================================== Terence J. Toth For 2,103,621 -- 2,408,341 -- Withhold 191,298 -- 136,213 -- - ------------------------------------------------------------------------------------------ Total 2,294,919 -- 2,544,554 -- ==========================================================================================
Nuveen Investments 27 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS NUVEEN NEW JERSEY INVESTMENT QUALITY MUNICIPAL FUND, INC. NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND, INC. NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN NEW JERSEY DIVIDEND ADVANTAGE MUNICIPAL FUND 2 NUVEEN PENNSYLVANIA INVESTMENT QUALITY MUNICIPAL FUND NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 2 NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN PENNSYLVANIA DIVIDEND ADVANTAGE MUNICIPAL FUND 2 We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (the Funds) as of April 30, 2009, and the related statements of operations and cash flows (Nuveen Pennsylvania Investment Quality Municipal Fund only) for the year then ended, the statements of changes in net assets for each of the two years in the period than ended and financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of April 30, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen New Jersey Investment Quality Municipal Fund, Inc., Nuveen New Jersey Premium Income Municipal Fund, Inc., Nuveen New Jersey Dividend Advantage Municipal Fund, Nuveen New Jersey Dividend Advantage Municipal Fund 2, Nuveen Pennsylvania Investment Quality Municipal Fund, Nuveen Pennsylvania Premium Income Municipal Fund 2, Nuveen Pennsylvania Dividend Advantage Municipal Fund and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 at April 30, 2009, the results of their operations and cash flows (Nuveen Pennsylvania Investment Quality Municipal Fund only) for the year then ended, the changes in their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated therein in conformity with US generally accepted accounting principles. /s/ ERNST & YOUNG LLP Chicago, Illinois June 19, 2009 28 Nuveen Investments NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: $ 800 5.000%, 1/01/32 1/15 at 100.00 B1 $ 390,656 690 5.125%, 1/01/37 1/15 at 100.00 B1 329,786 - ------------------------------------------------------------------------------------------------------------------------------------ 1,490 Total Consumer Discretionary 720,442 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.9% (1.9% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: 4,300 4.750%, 6/01/34 6/17 at 100.00 BBB 2,331,460 10,000 5.000%, 6/01/41 6/17 at 100.00 BBB 5,294,800 - ------------------------------------------------------------------------------------------------------------------------------------ 14,300 Total Consumer Staples 7,626,260 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 16.5% (10.8% OF TOTAL INVESTMENTS) 1,000 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 A 1,042,100 Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 1,518,540 Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 - ACA Insured 500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 430,200 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 859,450 Georgian Court University, Series 2007D, 5.000%, 7/01/27 New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D: 3,555 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 AA- 3,573,699 2,295 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 2,278,912 120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 126,156 Montclair State University, Series 2004L, 5.125%, 7/01/22 - MBIA Insured 1,225 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 A2 1,324,703 Montclair State University, Series 2005F, 5.000%, 7/01/16 - FGIC Insured 2,770 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 A2 2,765,707 Montclair State University, Series 2006A, 5.000%, 7/01/36 - AMBAC Insured New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey Institute of Technology, Series 2001G: 1,000 5.250%, 7/01/20 - MBIA Insured 7/11 at 100.00 AA- 1,039,820 1,945 5.250%, 7/01/21 - MBIA Insured 7/11 at 100.00 AA- 2,022,450 New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey Institute of Technology, Series 2004B: 1,260 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 A 1,326,830 2,510 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 A 2,600,159 185 4.250%, 7/01/24 - AMBAC Insured 1/14 at 100.00 A 179,370 1,495 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 1,637,877 Ramapo College, Series 2004H, 5.000%, 7/01/16 - FGIC Insured 610 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/14 at 100.00 Baa1 597,617 University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured
Nuveen Investments 29 NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 510 New Jersey Educational Facilities Authority, Revenue Bonds, Rider 7/12 at 100.00 Baa1 $ 394,429 University, Series 2007C, 5.000%, 7/01/37 - RAAI Insured 1,430 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 1,474,716 William Paterson University, Series 2004A, 5.125%, 7/01/21 - FGIC Insured 1,050 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 Baa1 1,003,758 Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI Insured 1,420 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 100.00 Aaa 1,421,335 Revenue Bonds, New Jersey Class Loan Program, Series 1997A, 5.800%, 6/01/16 - MBIA Insured (Alternative Minimum Tax) 2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 Aaa 2,042,300 Revenue Bonds, Series 2000A, 6.125%, 6/01/17 - MBIA Insured (Alternative Minimum Tax) 2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/18 at 100.00 AAA 2,039,620 Revenue Bonds, Series 2008A, 6.125%, 6/01/30 - AGC Insured (Alternative Minimum Tax) 4,235 Puerto Rico Industrial, Tourist, Educational, Medical and 9/11 at 100.00 BBB 3,783,507 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001, 5.250%, 9/01/21 University of Medicine and Dentistry of New Jersey, Certificates of Participation, Child Health Institute, LLC, Series 2003: 1,945 5.000%, 4/15/20 - AMBAC Insured 4/13 at 100.00 A 1,901,335 1,370 5.000%, 4/15/22 - AMBAC Insured 4/13 at 100.00 A 1,308,295 University of Medicine and Dentistry of New Jersey, Revenue Bonds, Series 2002A: 2,100 5.000%, 12/01/24 - AMBAC Insured 12/12 at 100.00 A 1,781,283 4,000 5.500%, 12/01/27 - AMBAC Insured 12/12 at 100.00 A 3,478,480 - ------------------------------------------------------------------------------------------------------------------------------------ 45,530 Total Education and Civic Organizations 43,952,648 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 1.4% (0.9% OF TOTAL INVESTMENTS) 5,000 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 3,796,000 Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 22.5% (14.7% OF TOTAL INVESTMENTS) Camden County Improvement Authority, New Jersey, Revenue Bonds, Cooper Health System, Series 2004A: 2,200 5.000%, 2/15/25 2/15 at 100.00 BBB 1,617,748 1,000 5.750%, 2/15/34 8/14 at 100.00 BBB 719,390 1,920 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 1,730,765 Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 5,750 New Jersey Health Care Facilities Financing Authority, 8/11 at 100.00 A 5,527,188 FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001, 5.000%, 8/01/41 - AMBAC Insured 2,000 New Jersey Health Care Facilities Financing Authority, New 7/18 at 100.00 Baa2 1,570,560 Jersey, Revenue Bonds, Saint Peters University Hospital, Series 2007, 5.750%, 7/01/37 3,750 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 3,180,150 Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 2,840 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 3,213,602 Bonds, Capital Health System Obligated Group, Series 2003A, 5.375%, 7/01/33 1,265 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 1,206,127 Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 400 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 310,748 Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 650 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 513,214 Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 615 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 504,595 Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 $ 3,005,820 Bonds, Kennedy Health System Obligated Group, Series 2001, 5.500%, 7/01/21 3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 3,320,380 Bonds, Meridian Health System Obligated Group, Series 1999, 5.250%, 7/01/29 - FSA Insured New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University Hospital, Series 2000: 3,850 5.750%, 7/01/25 7/10 at 100.00 A2 3,855,660 2,000 5.750%, 7/01/31 7/10 at 100.00 A2 1,934,200 1,600 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 BBB- 1,213,584 Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%, 7/01/35 - RAAI Insured 1,885 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 1,400,367 Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 2,850 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 2,460,120 Bonds, Shore Memorial Health System, Series 2003, 5.000%, 7/01/23 - RAAI Insured 5,040 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A 4,075,697 Bonds, Society of the Valley Hospital Obligated Group, Series 2000, 5.375%, 7/01/31 - AMBAC Insured 3,300 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 1,723,689 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, Series 2006: 670 5.000%, 7/01/25 7/16 at 100.00 A2 612,226 2,160 5.000%, 7/01/36 7/16 at 100.00 A2 1,796,731 1,295 5.000%, 7/01/46 7/16 at 100.00 A2 1,036,557 2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 2,003,620 Bonds, St. Peter's University Hospital, Series 2000A, 6.875%, 7/01/20 3,135 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- 2,156,284 Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.125%, 7/01/32 - RAAI Insured 2,605 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 100.00 Baa1 2,021,350 Refunding Bonds, St. Barnabas Healthcare System - West Hudson Hospital Obligated Group, Series 1998A, 5.000%, 7/01/23 - MBIA Insured 3,600 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA 3,550,788 Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured 3,670 Newark, New Jersey, GNMA Collateralized Healthcare Facility 6/12 at 102.00 Aaa 3,515,750 Revenue Bonds, New Community Urban Renewal Corporation, Series 2001A, 5.200%, 6/01/30 - ------------------------------------------------------------------------------------------------------------------------------------ 68,550 Total Health Care 59,776,910 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS) 500 Long Branch Housing Finance Corporation New Jersey, Housing 10/09 at 100.00 N/R 501,765 Revenue Bonds, Washington Manor Associates Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%, 10/01/11 2,743 Newark Housing Authority, New Jersey, GNMA Collateralized Housing 10/09 at 102.00 Aaa 2,795,066 Revenue Bonds, Fairview Apartments Project, Series 2000A, 6.400%, 10/20/34 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,243 Total Housing/Multifamily 3,296,831 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 3.7% (2.4% OF TOTAL INVESTMENTS) 2,545 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/09 at 100.00 Aaa 2,547,443 Program Revenue Bonds, Series 1997U, 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 2,075 New Jersey Housing and Mortgage Finance Agency, Home Buyer 10/10 at 100.00 Aaa 2,082,283 Program Revenue Bonds, Series 2000CC, 5.875%, 10/01/31 - MBIA Insured (Alternative Minimum Tax) 350 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 296,678 Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37 (Alternative Minimum Tax)
Nuveen Investments 31 NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) $ 2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA $ 2,546,858 Securities Home Mortgage Revenue Bonds, Series 2001A, 5.200%, 12/01/33 2,545 Puerto Rico Housing Finance Corporation, Mortgage-Backed 6/11 at 100.00 AAA 2,505,273 Securities Home Mortgage Revenue Bonds, Series 2001B, 5.300%, 12/01/28 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 10,060 Total Housing/Single Family 9,978,535 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.4% (0.2% OF TOTAL INVESTMENTS) 980 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 985,635 Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.7% (1.8% OF TOTAL INVESTMENTS) 1,870 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 1,129,031 Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 1,125 New Jersey Economic Development Authority, First Mortgage Revenue 11/14 at 100.00 N/R 949,973 Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.750%, 11/01/24 2,780 New Jersey Economic Development Authority, GNMA Collateralized 12/11 at 103.00 Aaa 2,594,824 Mortgage Revenue Bonds, Victoria Health Corporation, Series 2001A, 5.200%, 12/20/36 595 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/11 at 102.00 A- 617,110 Charity Foundation of New Jersey, Series 2001, 5.875%, 6/01/18 1,100 New Jersey Economic Development Authority, Revenue Bonds, Masonic 6/13 at 102.00 A- 1,024,815 Charity Foundation of New Jersey, Series 2002, 5.250%, 6/01/32 1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 BBB- 854,470 Bonds, House of the Good Shepherd Obligated Group, Series 2001, 5.100%, 7/01/21 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 8,470 Total Long-Term Care 7,170,223 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 7.0% (4.6% OF TOTAL INVESTMENTS) Clifton, New Jersey, General Obligation Bonds, Series 2002: 1,700 5.000%, 1/15/21 - FGIC Insured 1/11 at 100.00 AA- 1,752,683 1,625 5.000%, 1/15/22 - FGIC Insured 1/11 at 100.00 AA- 1,660,376 4,300 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 A1 4,476,429 5.000%, 9/01/22 - AMBAC Insured 1,500 Middletown Township Board of Education, Monmouth County, New 8/10 at 100.00 AAA 1,505,310 Jersey, Refunding School Bonds, Series 2001, 5.000%, 8/01/27 - FSA Insured 5,000 New Jersey, General Obligation Bonds, Series 1992D, 6.000%, No Opt. Call AA 5,425,450 2/15/11 West Deptford Township, New Jersey, General Obligation Bonds, Series 2004: 1,690 5.000%, 9/01/16 - AMBAC Insured 9/14 at 100.00 Baa1 1,820,874 1,865 4.750%, 9/01/18 - AMBAC Insured 9/14 at 100.00 Baa1 1,947,284 - ------------------------------------------------------------------------------------------------------------------------------------ 17,680 Total Tax Obligation/General 18,588,406 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 35.0% (22.8% OF TOTAL INVESTMENTS) 1,775 Bergen County Improvement Authority, New Jersey, Guaranteed Lease No Opt. Call Aaa 1,987,645 Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 1,965 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 2,165,057 Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 - AMBAC Insured 2,650 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 3,072,463 Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured Gloucester County Improvement Authority, New Jersey, Lease Revenue Bonds, Series 2005A: 1,000 5.000%, 9/01/21 - MBIA Insured 9/15 at 100.00 AA+ 1,076,470 1,420 5.000%, 9/01/22 - MBIA Insured 9/15 at 100.00 AA+ 1,515,907
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Hudson County Improvement Authority, New Jersey, County Secured Lease Revenue Bonds, County Services Building Project, Series 2005: $ 1,090 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AA- $ 1,136,292 2,525 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA- 2,568,859 1,445 Lower Township Municipal Utilities Authority, Cape May County, No Opt. Call N/R 1,447,803 New Jersey, Revenue Bonds, Series 2003D, 5.000%, 12/01/16 - FGIC Insured Middlesex County Improvement Authority, New Jersey, County Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003: 1,000 5.250%, 9/15/16 9/13 at 100.00 AAA 1,105,790 2,000 5.250%, 9/15/18 9/13 at 100.00 AAA 2,202,120 5,700 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 5,798,781 Series 2007A, 5.000%, 6/15/26 New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004: 1,965 5.500%, 6/15/24 6/12 at 100.00 BBB 1,536,768 4,000 5.750%, 6/15/34 6/14 at 100.00 BBB 2,858,920 4,675 New Jersey Economic Development Authority, Lease Revenue Bonds, 3/15 at 100.00 AAA 4,834,745 Liberty State Park Project, Series 2005C, 5.000%, 3/01/27 - FSA Insured 5,000 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 5,457,200 Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: 205 5.125%, 6/15/27 6/17 at 100.00 Baa3 155,661 345 5.125%, 6/15/37 6/17 at 100.00 Baa3 242,180 New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U: 1,965 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA- 1,947,217 3,930 5.000%, 9/01/37 9/17 at 100.00 AA- 3,894,434 1,925 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 2,168,416 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured 2,500 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,469,600 Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25 New Jersey Health Care Facilities Financing Authority, Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005: 2,885 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA- 2,989,899 4,455 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 4,435,844 850 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 843,659 Contract Bonds, Hospital Asset Transformation Program, Series 2008A, 5.250%, 10/01/38 3,405 New Jersey Transit Corporation, Lease Appropriation Bonds, Series 9/15 at 100.00 AA- 3,500,374 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 1,075 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AA- 1,162,204 1,900 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 2,028,231 4,200 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,708,452 System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 3,890 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 4,132,931 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 4,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 4,680,593 System Bonds, Series 2006A, 5.500%, 12/15/22 New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 13,755 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA- 4,302,977 10,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 2,364,400 15,310 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 3,178,509
Nuveen Investments 33 NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,500 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- $ 2,522,525 System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured 1,625 Passaic County Improvement Authority, New Jersey, Lease Revenue 5/15 at 100.00 A3 1,565,671 Bonds, Preakness Healthcare Center Project, Series 2005, 5.000%, 5/01/30 - AMBAC Insured 1,315 Puerto Rico Convention Center District Authority, Hotel Occupancy 7/16 at 100.00 BBB+ 1,011,643 Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 120,545 Total Tax Obligation/Limited 93,070,240 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 25.4% (16.5% OF TOTAL INVESTMENTS) 2,250 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AA- 2,243,160 Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2005: 2,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AA- 2,025,460 4,050 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA- 4,079,525 1,500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA- 1,515,375 3,500 Delaware River Port Authority, New Jersey and Pennsylvania, 1/10 at 100.00 AAA 3,533,145 Revenue Bonds, Series 1999, 5.750%, 1/01/22 - FSA Insured 2,960 Delaware River Port Authority, Pennsylvania and New Jersey, 1/12 at 100.00 AAA 2,997,710 Revenue Refunding Bonds, Port District Project, Series 2001A, 5.200%, 1/01/27 - FSA Insured 3,000 New Jersey Economic Development Authority, Revenue Bonds, 5/09 at 100.00 CCC+ 1,205,280 American Airlines Inc., Series 1991, 7.100%, 11/01/31 (Alternative Minimum Tax) 160 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AA 193,938 6.500%, 1/01/16 - MBIA Insured 9,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 9,860,997 5.000%, 1/01/19 - FGIC Insured 1,265 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,362,051 5.250%, 1/01/29 - FSA Insured 7,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AA- 7,120,749 Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - SYNCORA GTY Insured 1,000 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 1,035,120 Bonds, One Hundred Forty Eighth Series 2008, Trust 2920, 17.177%, 8/15/32 - FSA Insured (IF) 2,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 2,012,200 Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Twenty-Fifth Series 2002: 2,280 5.000%, 10/15/26 - FSA Insured 4/12 at 101.00 AAA 2,319,968 5,000 5.000%, 4/15/32 - FSA Insured 4/12 at 101.00 AAA 5,068,000 Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997: 3,500 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AA- 3,636,290 6,605 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/09 at 101.00 AA- 5,509,098 12,130 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) 6/09 at 100.00 AA- 9,707,759 2,000 South Jersey Port Corporation, New Jersey, Marine Terminal 1/13 at 100.00 A 2,003,840 Revenue Refunding Bonds, Series 2002K, 5.100%, 1/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ 71,700 Total Transportation 67,429,665 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.0% (14.3% OF TOTAL INVESTMENTS) (4) 2,500 Bergen County Improvement Authority, New Jersey, Revenue Bonds, 9/12 at 101.00 N/R (4) 2,872,975 Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27 (Pre-refunded 9/01/12) 3,275 Delaware River and Bay Authority, Delaware and New Jersey, 1/10 at 101.00 A+ (4) 3,421,818 Revenue Bonds, Series 2000A, 5.750%, 1/01/29 (Pre-refunded 1/01/10) - AMBAC Insured 1,500 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/13 at 100.00 A- (4) 1,718,970 University, Series 2003D, 5.250%, 7/01/20 (Pre-refunded 7/01/13) - FGIC Insured
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,925 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AA- (4) $ 2,256,254 University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured 1,380 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 1,591,126 Montclair State University, Series 2004L, 5.125%, 7/01/22 (Pre-refunded 7/01/14) - MBIA Insured New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F: 2,850 5.000%, 7/01/18 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 3,308,822 1,460 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,695,045 2,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/12 at 100.00 A (4) 2,224,060 Jersey City University, Series 2002A, 5.000%, 7/01/32 (Pre-refunded 7/01/12) - AMBAC Insured 1,300 New Jersey Educational Facilities Authority, Revenue Bonds, Rowan 7/13 at 100.00 A+ (4) 1,483,248 University, Series 2003I, 5.125%, 7/01/21 (Pre-refunded 7/01/13) - FGIC Insured New Jersey Educational Facilities Authority, Revenue Bonds, Rowan University, Series 2004C: 1,195 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AA- (4) 1,370,522 1,875 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 7/14 at 100.00 AA- (4) 2,150,400 7,860 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 8,963,622 Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12) 1,690 New Jersey Health Care Facilities Financing Authority, Revenue No Opt. Call BBB- (4) 1,959,707 Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI Insured (ETM) New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 211,587 55 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 69,419 2,505 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,943,851 1,250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 1,441,375 Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured 7,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 7,836,749 Obligation Bonds, Series 2000A, 5.500%, 10/01/34 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2002: 1,180 5.750%, 6/01/32 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,275,332 3,000 6.000%, 6/01/37 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,417,780 Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 3,050 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,200,670 2,625 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 3,032,190 - ------------------------------------------------------------------------------------------------------------------------------------ 52,145 Total U.S. Guaranteed 58,445,522 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.2% (2.7% OF TOTAL INVESTMENTS) 3,500 Camden County Pollution Control Financing Authority, New Jersey, 6/09 at 100.00 Baa3 3,488,100 Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991A, 7.500%, 12/01/10 (Alternative Minimum Tax) 250 Camden County Pollution Control Financing Authority, New Jersey, 6/09 at 100.00 Baa3 250,525 Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 2,055 Mercer County Improvement Authority, New Jersey, Solid Waste 12/13 at 100.00 AA+ 2,285,037 Revenue Bonds, Regional Sludge Project, Series 2003, 5.000%, 12/15/14 - FGIC Insured 2,500 Salem County Pollution Control Financing Authority, New Jersey, 4/12 at 101.00 Baa1 2,348,925 Pollution Control Revenue Refunding Bonds, PSEG Power LLC Project, Series 2001A, 5.750%, 4/01/31 (Alternative Minimum Tax)
Nuveen Investments 35 NQJ | Nuveen New Jersey Investment Quality Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,000 Union County Utilities Authority, New Jersey, Solid Waste 6/09 at 100.50 A $ 2,803,860 Facility Senior Lien Revenue Bonds, Ogden Martin Systems of Union Inc., Series 1998A, 5.000%, 6/01/23 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 11,305 Total Utilities 11,176,447 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.2% (5.4% OF TOTAL INVESTMENTS) 3,000 Jersey City Municipal Utilities Authority, Hudson County, New 7/09 at 101.00 AA- 2,862,240 Jersey, Sewer Revenue Bonds, Series 2001A-2, 5.200%, 7/15/21 - FGIC Insured (Alternative Minimum Tax) Lacey Municipal Utilities Authority, Ocean County, New Jersey, Water Revenue Bonds, Series 2003B: 1,750 5.000%, 12/01/17 - FGIC Insured 12/13 at 100.00 N/R 1,821,855 1,835 5.000%, 12/01/18 - FGIC Insured 12/13 at 100.00 N/R 1,877,150 1,000 5.000%, 12/01/19 - FGIC Insured 12/13 at 100.00 N/R 1,024,970 7,500 New Jersey Economic Development Authority, Water Facilities 5/09 at 100.00 N/R 6,686,700 Revenue Bonds, American Water Company, Series 1996, 6.000%, 5/01/36 - FGIC Insured (Alternative Minimum Tax) North Hudson Sewerage Authority, New Jersey, Sewerage Revenue Refunding Bonds, Series 2002A: 3,000 5.250%, 8/01/16 - FGIC Insured 8/12 at 100.00 N/R 3,156,150 3,000 5.250%, 8/01/18 - FGIC Insured 8/12 at 100.00 N/R 3,117,960 1,250 Ocean County Utilities Authority, New Jersey, Wastewater Revenue 1/11 at 101.00 Aa1 1,300,800 Refunding Bonds, Series 2000, 5.000%, 1/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 22,335 Total Water and Sewer 21,847,825 - ------------------------------------------------------------------------------------------------------------------------------------ $ 453,333 Total Investments (cost $432,059,118) - 153.4% 407,861,589 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.9% 7,890,950 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (56.3)% (5) (149,825,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 265,927,539 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.7%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 36 Nuveen Investments NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: $ 480 5.000%, 1/01/32 1/15 at 100.00 B1 $ 234,394 415 5.125%, 1/01/37 1/15 at 100.00 B1 198,349 - ------------------------------------------------------------------------------------------------------------------------------------ 895 Total Consumer Discretionary 432,743 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.5% (1.7% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: 2,520 4.750%, 6/01/34 6/17 at 100.00 BBB 1,366,344 5,300 5.000%, 6/01/41 6/17 at 100.00 BBB 2,806,244 - ------------------------------------------------------------------------------------------------------------------------------------ 7,820 Total Consumer Staples 4,172,588 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (9.9% OF TOTAL INVESTMENTS) 1,125 New Jersey Economic Development Authority, Revenue Bonds, The 6/15 at 100.00 A 1,172,363 Seeing Eye Inc., Series 2005, 5.000%, 12/01/24 - AMBAC Insured 500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/13 at 100.00 N/R 379,635 Fairleigh Dickinson University, Series 2002D, 5.250%, 7/01/32 - ACA Insured 300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 258,120 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D: 2,090 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 AA- 2,100,993 3,350 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 3,326,517 100 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 107,179 Montclair State University, Series 2004L, 5.125%, 7/01/19 - MBIA Insured 970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 A2 968,497 Montclair State University, Series 2006A, 5.000%, 7/01/36 - AMBAC Insured New Jersey Educational Facilities Authority, Revenue Bonds, New Jersey Institute of Technology, Series 2004B: 1,375 5.000%, 7/01/18 - AMBAC Insured 1/14 at 100.00 A 1,459,425 725 5.000%, 7/01/19 - AMBAC Insured 1/14 at 100.00 A 763,454 1,530 4.750%, 7/01/20 - AMBAC Insured 1/14 at 100.00 A 1,584,958 New Jersey Educational Facilities Authority, Revenue Bonds, Ramapo College, Series 2004H: 1,640 5.000%, 7/01/18 - FGIC Insured 7/14 at 100.00 AA- 1,763,361 1,040 5.000%, 7/01/23 - FGIC Insured 7/14 at 100.00 BBB- 1,083,150 300 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 A3 293,910 Rider University, Series 2004A, 5.500%, 7/01/23 - RAAI Insured 1,405 New Jersey Higher Education Assistance Authority, Student Loan 6/09 at 101.00 AA- 1,413,500 Revenue Bonds, Series 1999A, 5.250%, 6/01/18 - MBIA Insured (Alternative Minimum Tax) 985 New Jersey Higher Education Assistance Authority, Student Loan 6/10 at 101.00 Aaa 1,008,601 Revenue Bonds, Series 2000A, 6.000%, 6/01/15 - MBIA Insured (Alternative Minimum Tax) 2,000 New Jersey Higher Education Assistance Authority, Student Loan 6/18 at 100.00 AAA 2,039,620 Revenue Bonds, Series 2008A, 6.125%, 6/01/30 - AGC Insured (Alternative Minimum Tax) 2,025 University of Medicine and Dentistry of New Jersey, Certificates 4/13 at 100.00 A 1,956,170 of Participation, Child Health Institute, LLC, Series 2003, 5.000%, 4/15/21 - AMBAC Insured
Nuveen Investments 37 NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,000 University of Medicine and Dentistry of New Jersey, Certificates 6/14 at 100.00 AA- $ 886,110 of Participation, University Housing Associates, LLC, Series 2004, 5.000%, 6/15/29 - MBIA Insured 2,750 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 A 2,169,365 Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 25,210 Total Education and Civic Organizations 24,734,928 - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,500 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 1,138,800 Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 19.0% (12.7% OF TOTAL INVESTMENTS) Camden County Improvement Authority, New Jersey, Revenue Bonds, Cooper Health System, Series 2004A: 185 5.000%, 2/15/25 2/15 at 100.00 BBB 136,038 620 5.750%, 2/15/34 8/14 at 100.00 BBB 446,022 1,120 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 1,009,613 Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 1,615 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 1,369,585 Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Capital Health System Obligated Group, Series 2003A: 750 5.000%, 7/01/26 7/13 at 100.00 Baa1 837,488 1,670 5.375%, 7/01/33 7/13 at 100.00 Baa1 1,889,689 240 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 186,449 Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 2,900 New Jersey Health Care Facilities Financing Authority, Revenue 1/10 at 101.00 A3 2,795,020 Bonds, Hackensack University Medical Center, Series 2000, 6.000%, 1/01/34 700 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 552,692 Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 375 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 307,680 Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,258,920 Bonds, Kennedy Health System Obligated Group, Series 2001, 5.625%, 7/01/31 1,700 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AAA 1,723,749 Bonds, Meridian Health System Obligated Group, Series 1999, 5.625%, 7/01/12 - FSA Insured 465 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BB+ 335,237 Bonds, Palisades Medical Center of New York Presbyterian Healthcare System, Series 2002, 6.625%, 7/01/31 1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 BBB- 758,490 Bonds, RWJ Health Care Corporation, Series 2005B, 5.000%, 7/01/35 - RAAI Insured 1,160 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 861,764 Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29 1,675 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 1,445,860 Bonds, Shore Memorial Health System, Series 2003, 5.000%, 7/01/23 - RAAI Insured 2,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A 2,003,180 Bonds, Society of the Valley Hospital Obligated Group, Series 2000, 5.750%, 7/01/15 - AMBAC Insured 1,875 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 979,369 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, Series 2006: 1,245 5.000%, 7/01/36 7/16 at 100.00 A2 1,035,616 1,155 5.000%, 7/01/46 7/16 at 100.00 A2 924,497
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 2,050 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 $ 2,053,711 Bonds, St. Peter's University Hospital, Series 2000A, 6.875%, 7/01/20 630 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 632,835 Refunding Bonds, Atlantic City Medical Center, Series 2002, 5.750%, 7/01/25 1,710 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- 1,359,638 Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.000%, 7/01/22 - RAAI Insured 2,160 New Jersey Health Facilities Financing Authority, Revenue Bonds, 7/18 at 100.00 AAA 2,130,473 Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured 2,650 Puerto Rico Industrial, Tourist, Educational, Medical and 6/09 at 100.50 A3 2,667,623 Environmental Control Facilities Financing Authority, Adjustable Rate Industrial Revenue Bonds, American Home Products Corporation, Series 1983A, 5.100%, 12/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 35,150 Total Health Care 31,701,238 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 0.4% (0.3% OF TOTAL INVESTMENTS) 340 Essex County Improvement Authority, New Jersey, FNMA Enhanced 11/12 at 100.00 Aaa 330,847 Multifamily Revenue Bonds, Mount Carmel Towers, Series 2002, 4.750%, 11/01/22 (Alternative Minimum Tax) 300 Long Branch Housing Finance Corporation New Jersey, Housing 10/09 at 100.00 N/R 301,059 Revenue Bonds, Washington Manor Associates Ltd. Section 8 Assisted Elderly Project, Series 1980, 10.000%, 10/01/11 - ------------------------------------------------------------------------------------------------------------------------------------ 640 Total Housing/Multifamily 631,906 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 1.5% (1.0% OF TOTAL INVESTMENTS) New Jersey Housing and Mortgage Finance Agency, Home Buyer Program Revenue Bonds, Series 1997U: 1,455 5.700%, 10/01/14 - MBIA Insured (Alternative Minimum Tax) 10/09 at 100.00 Aaa 1,463,323 385 5.850%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 10/09 at 100.00 Aaa 385,370 220 New Jersey Housing and Mortgage Finance Agency, Home Buyer No Opt. Call Aaa 223,032 Program Revenue Bonds, Series 2000CC, 4.600%, 10/01/09 - MBIA Insured 605 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 512,828 Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,665 Total Housing/Single Family 2,584,553 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.3% (0.2% OF TOTAL INVESTMENTS) 575 Gloucester County Improvement Authority, New Jersey, Solid Waste No Opt. Call BBB 578,306 Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.4% (0.9% OF TOTAL INVESTMENTS) 1,095 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 661,117 Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 750 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 N/R 590,738 Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.800%, 11/01/31 1,000 New Jersey Economic Development Authority, Revenue Bonds, 6/11 at 102.00 A- 1,005,750 Masonic Charity Foundation of New Jersey, Series 2001, 5.500%, 6/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 2,845 Total Long-Term Care 2,257,605 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 9.7% (6.5% OF TOTAL INVESTMENTS) 2,460 Freehold Regional High School District, Monmouth County Board of No Opt. Call AA 2,828,262 Education, New Jersey, School District Refunding Bonds, Series 2001, 5.000%, 3/01/17 - FGIC Insured 2,500 Jersey City, New Jersey, General Obligation Bonds, Series 2006A, 9/16 at 100.00 A1 2,602,575 5.000%, 9/01/22 - AMBAC Insured New Jersey, General Obligation Bonds, Series 1992D: 2,580 6.000%, 2/15/11 No Opt. Call AA 2,799,532 1,560 6.000%, 2/15/13 No Opt. Call AA 1,792,253
Nuveen Investments 39 NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 4,000 Passaic County, New Jersey, General Improvement Refunding Bonds, No Opt. Call AA- $ 4,226,560 Series 1993, 5.125%, 9/01/12 - FGIC Insured 1,780 West Deptford Township, New Jersey, General Obligation Bonds, 9/14 at 100.00 Baa1 1,878,487 Series 2004, 4.750%, 9/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 14,880 Total Tax Obligation/General 16,127,669 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 40.6% (27.2% OF TOTAL INVESTMENTS) 1,000 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 1,119,800 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 5,385 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa3 5,829,799 Bonds, Series 2003, 5.125%, 12/15/19 - FSA Insured 1,155 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 1,272,591 Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 - AMBAC Insured 1,225 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 1,420,290 Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured Hudson County Improvement Authority, New Jersey, County Secured Lease Revenue Bonds, County Services Building Project, Series 2005: 1,185 5.000%, 4/01/25 - AMBAC Insured 4/15 at 100.00 AA- 1,235,327 2,755 5.000%, 4/01/35 - AMBAC Insured 4/15 at 100.00 AA- 2,802,854 1,000 Middlesex County Improvement Authority, New Jersey, County 9/13 at 100.00 AAA 1,105,790 Guaranteed Open Space Trust Fund Revenue Bonds, Series 2003, 5.250%, 9/15/16 3,450 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 3,499,335 Series 2007A, 5.000%, 6/15/25 New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004: 1,155 5.500%, 6/15/24 6/12 at 100.00 BBB 903,291 2,540 5.750%, 6/15/34 6/14 at 100.00 BBB 1,815,414 3,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 3,492,608 Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: 120 5.125%, 6/15/27 6/17 at 100.00 Baa3 91,118 205 5.125%, 6/15/37 6/17 at 100.00 Baa3 143,904 New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U: 1,155 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA- 1,144,547 2,310 5.000%, 9/01/37 9/17 at 100.00 AA- 2,289,095 2,720 New Jersey Health Care Facilities Financing Authority, Lease 9/13 at 100.00 AA- 2,686,925 Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2003, 5.000%, 9/15/25 New Jersey Health Care Facilities Financing Authority, Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005: 2,615 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 2,603,756 3,000 5.000%, 9/15/28 - AMBAC Insured 9/15 at 100.00 AA- 2,895,150 500 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 496,270 Contract Bonds, Hospital Asset Transformation Program, Series 2008A, 5.250%, 10/01/38 1,500 New Jersey Sports and Exposition Authority, Convention Center No Opt. Call AA- 1,631,040 Luxury Tax Bonds, Series 2004, 5.500%, 3/01/22 - MBIA Insured 3,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call A1 3,270,960 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 1,875 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AA- 1,927,519 Series 2005A, 5.000%, 9/15/18 - FGIC Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: $ 400 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AA- $ 432,448 715 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 763,255 2,600 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,914,756 System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 2,000 New Jersey Transportation Trust Fund Authority, Transportation 12/15 at 100.00 AA- 2,148,240 System Bonds, Series 2005B, 5.250%, 12/15/18 - FGIC Insured 1,110 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,179,320 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 1,700 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,850,467 System Bonds, Series 2006A, 5.500%, 12/15/22 New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 8,090 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA- 2,530,795 6,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 1,418,640 4,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 830,440 4,000 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- 4,036,040 System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured 780 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ 600,062 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured 2,745 Union County Improvement Authority, New Jersey, General 3/13 at 100.00 Aa1 2,691,253 Obligation Lease Revenue Bonds, Plainfield Park Madison Redevelopment Project, Series 2003, 5.000%, 3/01/34 - FSA Insured 2,445 Union County Improvement Authority, New Jersey, General 6/13 at 100.00 Aa1 2,566,419 Obligation Lease Revenue Bonds, Series 2003, 5.000%, 6/15/23 - ------------------------------------------------------------------------------------------------------------------------------------ 79,635 Total Tax Obligation/Limited 67,639,518 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 18.2% (12.2% OF TOTAL INVESTMENTS) 2,750 Casino Reinvestment Development Authority, New Jersey, Parking 6/15 at 100.00 AA- 2,741,640 Revenue Bonds, Series 2005A, 5.250%, 6/01/20 - MBIA Insured 2,500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AA- 2,525,625 Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 565 6.500%, 1/01/16 - MBIA Insured No Opt. Call AA 684,842 345 6.500%, 1/01/16 - AMBAC Insured No Opt. Call A 418,178 5,750 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 5,968,498 5.000%, 1/01/19 - FGIC Insured 2,750 Passaic County Improvement Authority, New Jersey, Revenue Bonds, 4/15 at 100.00 Aa3 2,785,255 Paterson Parking Deck Facility, Series 2005, 5.000%, 4/15/35 - FSA Insured 4,000 Port Authority of New York and New Jersey, Consolidated Revenue 6/15 at 101.00 AA- 4,069,000 Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - SYNCORA GTY Insured 585 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 605,545 Bonds, One Hundred Forty Eighth Series 2008, Trust 2920, 17.177%, 8/15/32 - FSA Insured (IF) 1,000 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 1,006,100 Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 2,000 Port Authority of New York and New Jersey, Consolidated Revenue 4/12 at 101.00 AAA 2,027,200 Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 4/15/32 - FSA Insured 8,000 Port Authority of New York and New Jersey, Special Project 6/09 at 101.00 AA- 6,672,638 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 850 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Baa2 766,811 Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 31,095 Total Transportation 30,271,332 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 41 NNJ | Nuveen New Jersey Premium Income Municipal Fund, Inc. (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 26.1% (17.4% OF TOTAL INVESTMENTS) (4) $ 2,075 Egg Harbor Township School District, Atlantic County, New 4/15 at 100.00 Aa2 (4) $ 2,412,665 Jersey, General Obligation Bonds, Series 2005, 5.000%, 4/01/27 (Pre-refunded 4/01/15) - MBIA Insured 130 Essex County Improvement Authority, New Jersey, Lease Revenue 12/13 at 100.00 Aa3 (4) 149,959 Bonds, Series 2003, 5.125%, 12/15/19 (Pre-refunded 12/15/13) - FSA Insured Manalapan-Englishtown Regional Board of Education, New Jersey, General Obligation Bonds, Series 2003: 1,000 5.000%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 N/R (4) 1,146,570 1,000 5.000%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 100.00 AAA 1,146,570 2,410 New Jersey Economic Development Authority, Revenue Bonds, No Opt. Call N/R (4) 3,051,735 Yeshiva Ktana of Passaic, Series 1993, 8.000%, 9/15/18 (ETM) 595 New Jersey Educational Facilities Authority, Revenue Bonds, Kean 7/16 at 100.00 AA- (4) 697,388 University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured 1,145 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 1,320,174 Montclair State University, Series 2004L, 5.125%, 7/01/19 (Pre-refunded 7/01/14) - MBIA Insured 2,080 New Jersey Educational Facilities Authority, Revenue Bonds, 7/15 at 100.00 A2 (4) 2,414,859 Montclair State University, Series 2005F, 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 400 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 458,752 Rowan University, Series 2004C, 5.000%, 7/01/20 (Pre-refunded 7/01/14) - MBIA Insured 3,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 3,421,230 Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12) 1,270 New Jersey Health Care Facilities Financing Authority, Revenue No Opt. Call BBB- (4) 1,472,679 Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI Insured (ETM) 545 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 Baa3 (4) 593,249 Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10) 4,445 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/09 at 100.75 A+ (4) 4,445,533 Housing Revenue Bonds, Series 1997A, 5.550%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax) New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 465 6.500%, 1/01/16 (ETM) No Opt. Call AAA 578,753 195 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 246,121 120 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call A (4) 151,459 6,590 6.500%, 1/01/16 (ETM) No Opt. Call AAA 7,744,500 1,760 6.500%, 1/01/16 - AMBAC Insured (ETM) No Opt. Call AAA 2,068,334 750 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 864,825 Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured 2,125 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,481,809 Series 2005RR, 5.000%, 7/01/35 (Pre-refunded 7/01/15) - FGIC Insured Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 3,350 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 3,515,490 2,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 2,599,020 350 Trenton Parking Authority, Mercer County, New Jersey, Guaranteed 10/13 at 100.00 Baa2 (4) 401,300 Parking System Revenue Bonds, Series 2003, 5.000%, 10/01/24 (Pre-refunded 10/01/13) - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 38,050 Total U.S. Guaranteed 43,382,974 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 0.7% (0.5% OF TOTAL INVESTMENTS) 1,250 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 1,222,025 Revenue Refunding Bonds, Public Service Electric and Gas Company, Series 2001A, 5.000%, 3/01/12
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 13.2% (8.8% OF TOTAL INVESTMENTS) Bayonne Municipal Utilities Authority, New Jersey, Water System Revenue Refunding Bonds, Series 2003A: $ 1,450 5.000%, 4/01/19 - SYNCORA GTY Insured 4/13 at 100.00 N/R $ 1,402,382 1,250 5.000%, 4/01/24 - SYNCORA GTY Insured 4/13 at 100.00 N/R 1,131,275 1,000 Jersey City Sewer Authority, Hudson County, New Jersey, Sewer No Opt. Call A 1,103,820 Revenue Refunding Bonds, Series 1993, 6.250%, 1/01/14 - AMBAC Insured 3,100 New Jersey Economic Development Authority, Water Facilities 9/09 at 100.00 Baa1 2,904,700 Revenue Refunding Bonds, Hackensack Water Company, Series 1994B, 5.900%, 3/01/24 - MBIA Insured (Alternative Minimum Tax) 6,950 New Jersey Environmental Infrastructure Trust, Environmental 9/11 at 101.00 AAA 7,577,583 Infrastructure Bonds, Series 2001A, 4.750%, 9/01/20 1,650 New Jersey Water Supply Authority, Water Supply Authority 8/15 at 100.00 AA 1,687,191 Bonds, Manasquan Reservoir, Series 2005, 5.000%, 8/01/31 - MBIA Insured 3,500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 N/R 3,614,940 Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured 820 Stony Brook Regional Sewer Authority, Princeton, New Jersey, No Opt. Call Aa2 873,997 Revenue Refunding Bonds, Series 1993B, 5.450%, 12/01/12 1,500 Wanaque Valley Regional Sewer Authority, Passaic County, New No Opt. Call A 1,670,100 Jersey, Sewer Revenue Refunding Bonds, Series 1993B, 5.750%, 9/01/18 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 21,220 Total Water and Sewer 21,965,988 - ------------------------------------------------------------------------------------------------------------------------------------ $ 263,430 Total Investments (cost $255,546,427) - 149.5% 248,842,173 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 5.5% 9,185,720 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.0)% (5) (91,600,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 166,427,893 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. Nuveen Investments 43 NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: $ 260 5.000%, 1/01/32 1/15 at 100.00 B1 $ 126,963 230 5.125%, 1/01/37 1/15 at 100.00 B1 109,929 - ------------------------------------------------------------------------------------------------------------------------------------ 490 Total Consumer Discretionary 236,892 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.7% (1.8% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: 1,345 4.750%, 6/01/34 6/17 at 100.00 BBB 729,259 3,000 5.000%, 6/01/41 6/17 at 100.00 BBB 1,588,440 - ------------------------------------------------------------------------------------------------------------------------------------ 4,345 Total Consumer Staples 2,317,699 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 18.5% (12.3% OF TOTAL INVESTMENTS) 250 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 215,100 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 325 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 BBB+ 262,837 Georgian Court University, Series 2007D, 5.250%, 7/01/37 New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D: 1,115 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 AA- 1,120,865 735 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 729,848 60 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 63,437 Montclair State University, Series 2004L, 5.125%, 7/01/21 - MBIA Insured 970 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 A2 968,497 Montclair State University, Series 2006A, 5.000%, 7/01/36 - AMBAC Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 7/11 at 100.00 AA- 1,060,300 Jersey Institute of Technology, Series 2001G, 5.250%, 7/01/18 - MBIA Insured 1,000 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 A 1,039,990 Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 - AMBAC Insured 1,085 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 A+ 1,088,396 Rowan College, Series 2001C, 5.000%, 7/01/31 - FGIC Insured 630 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 659,471 William Paterson University, Series 2004A, 5.125%, 7/01/19 - FGIC Insured 300 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 AA- 286,788 Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI Insured 200 New Jersey Educational Facilities Authority, Revenue Refunding 7/11 at 100.00 A 212,496 Bonds, Seton Hall University Project, Series 2001A, 5.250%, 7/01/16 - AMBAC Insured New Jersey Educational Facilities Authority, Revenue Refunding Bonds, Seton Hall University Project, Series 2001G: 3,820 4.875%, 7/01/21 - AMBAC Insured 7/11 at 100.00 A 3,898,156 1,600 5.000%, 7/01/26 - AMBAC Insured 7/11 at 100.00 A 1,616,256
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, University of the Sacred Heart, Series 2001: $ 2,000 5.250%, 9/01/21 9/11 at 100.00 BBB $ 1,786,780 500 5.250%, 9/01/31 9/11 at 100.00 BBB 402,315 500 Puerto Rico Industrial, Tourist, Educational, Medical and 12/12 at 101.00 BBB- 344,585 Environmental Control Facilities Financing Authority, Higher Education Revenue Refunding Bonds, Ana G. Mendez University System, Series 2002, 5.500%, 12/01/31 - ------------------------------------------------------------------------------------------------------------------------------------ 16,090 Total Education and Civic Organizations 15,756,117 - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 0.9% (0.6% OF TOTAL INVESTMENTS) 1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 788,840 Refinery Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 1.6% (1.1% OF TOTAL INVESTMENTS) 850 New Jersey Economic Development Authority, Economic Development 11/10 at 100.00 N/R 544,986 Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax) 250 New Jersey Economic Development Authority, Industrial 10/09 at 100.00 Ba1 225,775 Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14 750 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 569,400 Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Financials 1,340,161 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 22.0% (14.7% OF TOTAL INVESTMENTS) 310 Camden County Improvement Authority, New Jersey, Revenue Bonds, 8/14 at 100.00 BBB 223,011 Cooper Health System, Series 2004A, 5.750%, 2/15/34 560 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 504,806 Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 865 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 733,555 Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 890 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Baa1 1,007,080 Bonds, Capital Health System Obligated Group, Series 2003A, 5.375%, 7/01/33 1,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 1,430,190 Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 130 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 100,993 Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 400 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 315,824 Bonds, Hunterdon Medical Center, Series 2006B, 5.000%, 7/01/36 180 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 147,686 Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/11 at 100.00 A2 3,258,920 Bonds, Kennedy Health System Obligated Group, Series 2001, 5.625%, 7/01/31 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Robert Wood Johnson University Hospital, Series 2000: 750 5.750%, 7/01/25 7/10 at 100.00 A2 751,103 3,000 5.750%, 7/01/31 7/10 at 100.00 A2 2,901,300 445 New Jersey Health Care Facilities Financing Authority, Revenue 1/17 at 100.00 Baa2 330,591 Bonds, Saint Barnabas Health Care System, Series 2006A, 5.000%, 7/01/29
Nuveen Investments 45 NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 895 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- $ 772,564 Bonds, Shore Memorial Health System, Series 2003, 5.000%, 7/01/23 - RAAI Insured 1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 522,330 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, Series 2006: 665 5.000%, 7/01/36 7/16 at 100.00 A2 553,160 615 5.000%, 7/01/46 7/16 at 100.00 A2 492,264 1,100 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 1,101,991 Bonds, St. Peter's University Hospital, Series 2000A, 6.875%, 7/01/20 2,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 A2 2,354,675 Refunding Bonds, Burdette Tomlin Memorial Hospital, Series 1999, 5.500%, 7/01/29 1,280 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 1,262,502 Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 20,585 Total Health Care 18,764,545 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS) 310 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 311,783 Waste Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.6% (1.7% OF TOTAL INVESTMENTS) 585 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 353,200 Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 250 New Jersey Economic Development Authority, First Mortgage 11/14 at 100.00 Baa1 196,913 Revenue Bonds, Winchester Gardens at Wards Homestead, Series 2004A, 5.800%, 11/01/31 New Jersey Economic Development Authority, Revenue Bonds, Masonic Charity Foundation of New Jersey, Series 2001: 1,000 6.000%, 6/01/25 6/11 at 102.00 A- 1,006,760 335 5.500%, 6/01/31 6/11 at 102.00 A- 305,480 500 New Jersey Economic Development Authority, Revenue Bonds, 7/09 at 101.00 BB+ 329,100 United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 2,670 Total Long-Term Care 2,191,453 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 2.8% (1.9% OF TOTAL INVESTMENTS) 1,000 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 A1 1,041,030 2006A, 5.000%, 9/01/22 - AMBAC Insured 1,350 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 1,354,010 Series 2001, 5.250%, 7/01/27 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,350 Total Tax Obligation/General 2,395,040 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 34.7% (23.1% OF TOTAL INVESTMENTS) 600 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 671,880 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 1,745 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AA 1,884,897 Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured 1,000 Camden County Improvement Authority, New Jersey, County 9/15 at 100.00 AAA 1,132,220 Guaranteed Lease Revenue Bonds, Series 2005A, 5.000%, 9/01/16 - FSA Insured
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,100 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 A $ 1,130,415 Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured 620 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 683,122 Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 - AMBAC Insured 815 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 944,927 Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured 1,785 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 1,810,526 Series 2007A, 5.000%, 6/15/27 New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004: 615 5.500%, 6/15/24 6/12 at 100.00 BBB 480,973 1,200 5.750%, 6/15/34 6/14 at 100.00 BBB 857,676 1,200 New Jersey Economic Development Authority, Revenue Bonds, Motor 7/14 at 100.00 AA- 1,309,728 Vehicle Surcharge, Series 2004A, 5.250%, 7/01/15 - MBIA Insured New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: 65 5.125%, 6/15/27 6/17 at 100.00 Baa3 49,356 115 5.125%, 6/15/37 6/17 at 100.00 Baa3 80,727 New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U: 615 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA- 609,434 1,235 5.000%, 9/01/37 9/17 at 100.00 AA- 1,223,823 525 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 591,386 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured New Jersey Health Care Facilities Financing Authority, Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005: 925 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA- 958,633 1,400 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 1,393,980 250 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 248,135 Contract Bonds, Hospital Asset Transformation Program, Series 2008A, 5.250%, 10/01/38 1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call A1 1,090,320 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 1,000 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AA- 1,028,010 Series 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 350 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AA- 378,392 610 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 651,169 1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,457,378 System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 1,280 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 1,359,936 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 1,300 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,415,063 System Bonds, Series 2006A, 5.500%, 12/15/22 New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 4,315 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA- 1,349,861 3,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 709,320 6,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,245,660 1,000 New Jersey Transportation Trust Fund Authority, Transportation 12/17 at 100.00 AA- 1,009,010 System Bonds, Series 2007A, 5.000%, 12/15/26 - AMBAC Insured
Nuveen Investments 47 NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 405 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ $ 311,571 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured 1,500 Virgin Islands Public Finance Authority, Senior Lien Revenue 10/09 at 100.50 Baa2 1,475,070 Refunding Bonds, Matching Fund Loan Note, Series 1998A, 5.500%, 10/01/18 - RAAI Insured - ------------------------------------------------------------------------------------------------------------------------------------ 38,870 Total Tax Obligation/Limited 29,542,598 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 17.7% (11.8% OF TOTAL INVESTMENTS) Delaware River and Bay Authority, Delaware and New Jersey, Revenue Bonds, Series 2005: 1,000 5.000%, 1/01/25 - MBIA Insured 1/15 at 100.00 AA- 1,012,730 1,000 5.000%, 1/01/26 - MBIA Insured 1/15 at 100.00 AA- 1,007,290 500 5.000%, 1/01/27 - MBIA Insured 1/15 at 100.00 AA- 505,125 900 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 631,593 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 50 New Jersey Turnpike Authority, Revenue Bonds, Series 1991C, No Opt. Call AA 60,606 6.500%, 1/01/16 - MBIA Insured 3,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 3,114,000 5.000%, 1/01/19 - FGIC Insured 300 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 323,016 5.250%, 1/01/29 - FSA Insured 310 Port Authority of New York and New Jersey, Consolidated Revenue 8/17 at 100.00 AAA 320,887 Bonds, One Hundred Forty Eighth Series 2008, Trust 2920, 17.177%, 8/15/32 - FSA Insured (IF) 500 Port Authority of New York and New Jersey, Consolidated Revenue 1/14 at 101.00 AA- 503,050 Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 5,000 Port Authority of New York and New Jersey, Special Project 6/09 at 101.00 AA- 4,170,399 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 3,435 South Jersey Transportation Authority New Jersey, 11/09 at 101.00 A 3,467,461 Transportation System Revenue Bonds, Series 1999, 5.125%, 11/01/22 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 15,995 Total Transportation 15,116,157 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 23.9% (15.9% OF TOTAL INVESTMENTS) (4) 2,400 New Jersey Economic Development Authority, School Facilities 6/11 at 100.00 AAA 2,599,416 Construction Bonds, Series 2001A, 5.000%, 6/15/21 (Pre-refunded 6/15/11) - AMBAC Insured 385 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AA- (4) 451,251 Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured 690 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 795,563 Montclair State University, Series 2004L, 5.125%, 7/01/21 (Pre-refunded 7/01/14) - MBIA Insured New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F: 1,200 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,393,188 1,000 5.000%, 7/01/24 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 1,160,990 520 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 603,715 415 New Jersey Educational Facilities Authority, Revenue Bonds, 7/11 at 101.00 A+ (4) 454,450 Rowan College, Series 2001C, 5.000%, 7/01/31 (Pre-refunded 7/01/11) - FGIC Insured 625 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- (4) 716,800 Rowan University, Series 2004C, 5.000%, 7/01/24 (Pre-refunded 7/01/14) - MBIA Insured 1,350 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 Baa3 (4) 1,539,554 Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12)
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 845 New Jersey Health Care Facilities Financing Authority, Revenue No Opt. Call BBB- (4) $ 979,854 Bonds, St. Clare's Hospital, Series 2004A, 5.250%, 7/01/20 - RAAI Insured (ETM) 500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 101.00 BBB- (4) 544,265 Bonds, Trinitas Hospital Obligated Group, Series 2000, 7.500%, 7/01/30 (Pre-refunded 7/01/10) New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 130 6.500%, 1/01/16 (ETM) No Opt. Call AAA 161,802 20 6.500%, 1/01/16 - MBIA Insured (ETM) No Opt. Call AA- (4) 25,243 905 6.500%, 1/01/16 (ETM) No Opt. Call AAA 1,063,547 375 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 432,413 Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured 1,500 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,567,350 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 2,150 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 2,345,349 Series 2001, 5.250%, 7/01/27 (Pre-refunded 7/01/11) - FSA Insured Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 2,135 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 2,240,469 1,125 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,299,510 - ------------------------------------------------------------------------------------------------------------------------------------ 18,270 Total U.S. Guaranteed 20,374,729 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 1.1% (0.7% OF TOTAL INVESTMENTS) 210 Camden County Pollution Control Financing Authority, New 6/09 at 100.00 Baa3 210,441 Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 733,215 Revenue Refunding Bonds, Public Service Electric and Gas Company, Series 2001A, 5.000%, 3/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 960 Total Utilities 943,656 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 20.9% (13.9% OF TOTAL INVESTMENTS) 225 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 185,339 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 4,635 New Jersey Economic Development Authority, Water Facilities 5/09 at 101.00 N/R 3,844,268 Revenue Bonds, American Water Company, Series 1997B, 5.375%, 5/01/32 - FGIC Insured (Alternative Minimum Tax) 7,000 New Jersey Economic Development Authority, Water Facilities 8/09 at 101.00 AA- 6,188,419 Revenue Bonds, Middlesex Water Company, Series 1998, 5.350%, 2/01/38 - MBIA Insured (Alternative Minimum Tax) 390 New Jersey Environmental Infrastructure Trust, Environmental 9/09 at 100.50 AAA 394,407 Infrastructure Bonds, Series 1998A, 4.500%, 9/01/18
Nuveen Investments 49 NXJ | Nuveen New Jersey Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 15,840 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue No Opt. Call Baa1 $ 7,202,130 Refunding Bonds, Series 2001A, 0.000%, 8/01/23 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 28,090 Total Water and Sewer 17,814,563 - ------------------------------------------------------------------------------------------------------------------------------------ $ 151,875 Total Investments (cost $136,432,591) - 150.1% 127,894,233 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 5.1% 4,360,920 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.2)% (5) (47,025,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 85,230,153 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.8%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. See accompanying notes to financial statements. 50 Nuveen Investments NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER DISCRETIONARY - 0.3% (0.2% OF TOTAL INVESTMENTS) Middlesex County Improvement Authority, New Jersey, Senior Revenue Bonds, Heldrich Center Hotel/Conference Center Project, Series 2005A: $ 180 5.000%, 1/01/32 1/15 at 100.00 B1 $ 87,898 150 5.125%, 1/01/37 1/15 at 100.00 B1 71,693 - ------------------------------------------------------------------------------------------------------------------------------------ 330 Total Consumer Discretionary 159,591 - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.9% (1.9% OF TOTAL INVESTMENTS) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2007-1A: 950 4.750%, 6/01/34 6/17 at 100.00 BBB 515,090 2,200 5.000%, 6/01/41 6/17 at 100.00 BBB 1,164,856 - ------------------------------------------------------------------------------------------------------------------------------------ 3,150 Total Consumer Staples 1,679,946 - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 15.3% (10.0% OF TOTAL INVESTMENTS) 3,000 New Jersey Educational Facilities Authority, Revenue Bonds, 7/12 at 100.00 AA- 3,052,769 College of New Jersey Project, Series 2002C, 4.750%, 7/01/19 - FGIC Insured 200 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 N/R 172,080 Fairleigh Dickinson University, Series 2004C, 5.500%, 7/01/23 New Jersey Educational Facilities Authority, Revenue Bonds, Kean University, Series 2007D: 790 5.000%, 7/01/32 - FGIC Insured 7/17 at 100.00 AA- 794,155 495 5.000%, 7/01/39 - FGIC Insured 7/17 at 100.00 AA- 491,530 575 New Jersey Educational Facilities Authority, Revenue Bonds, New 1/14 at 100.00 A 597,994 Jersey Institute of Technology, Series 2004B, 5.000%, 7/01/21 - AMBAC Insured 500 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AA- 523,390 William Paterson University, Series 2004A, 5.125%, 7/01/19 - FGIC Insured 1,090 New Jersey Educational Facilities Authority, Revenue Refunding 7/12 at 100.00 Baa1 1,041,996 Bonds, Rider University, Series 2002A, 5.000%, 7/01/17 - RAAI Insured 1,000 Puerto Rico Industrial, Tourist, Educational, Medical and 8/09 at 101.00 BBB- 838,500 Environmental Control Facilities Financing Authority, Higher Education Revenue Bonds, Ana G. Mendez University System, Series 1999, 5.375%, 2/01/19 1,790 University of Medicine and Dentistry of New Jersey, Revenue 12/12 at 100.00 A 1,412,059 Bonds, Series 2002A, 5.000%, 12/01/31 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 9,440 Total Education and Civic Organizations 8,924,473 - ------------------------------------------------------------------------------------------------------------------------------------ ENERGY - 1.3% (0.9% OF TOTAL INVESTMENTS) 1,000 Virgin Islands, Senior Secured Revenue Bonds, Government 1/13 at 100.00 BBB 788,840 Refinery Facilities - Hovensa LLC Coker, Series 2002, 6.500%, 7/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS - 4.5% (2.9% OF TOTAL INVESTMENTS) 600 New Jersey Economic Development Authority, Economic Development 11/10 at 100.00 N/R 384,696 Revenue Bonds, Glimcher Properties LP, Series 1998, 6.000%, 11/01/28 (Alternative Minimum Tax) 1,250 New Jersey Economic Development Authority, Industrial 10/09 at 100.00 Ba1 1,128,875 Development Revenue Refunding Bonds, Newark Airport Marriott Hotel, Series 1996, 7.000%, 10/01/14
Nuveen Investments 51 NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ FINANCIALS (continued) $ 1,450 New Jersey Economic Development Authority, Revenue Refunding No Opt. Call Baa3 $ 1,100,840 Bonds, Kapkowski Road Landfill Project, Series 2002, 5.750%, 10/01/21 - ------------------------------------------------------------------------------------------------------------------------------------ 3,300 Total Financials 2,614,411 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 30.7% (20.0% OF TOTAL INVESTMENTS) 220 Camden County Improvement Authority, New Jersey, Revenue 8/14 at 100.00 BBB 158,266 Bonds, Cooper Health System, Series 2004A, 5.750%, 2/15/34 400 New Jersey Health Care Facilities Finance Authority, Revenue 7/18 at 100.00 A+ 360,576 Bonds, AHS Hospital Corporation, Series 2008A, 5.000%, 7/01/27 New Jersey Health Care Facilities Financing Authority, FHA-Insured Mortgage Revenue Bonds, Jersey City Medical Center, Series 2001: 500 5.000%, 8/01/31 - AMBAC Insured 8/11 at 100.00 A 496,775 1,925 5.000%, 8/01/41 - AMBAC Insured 8/11 at 100.00 A 1,850,406 610 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 A+ 517,304 Bonds, Atlanticare Regional Medical Center, Series 2007, 5.000%, 7/01/37 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Capital Health System Obligated Group, Series 2003A: 750 5.000%, 7/01/26 7/13 at 100.00 Baa1 837,488 630 5.375%, 7/01/33 7/13 at 100.00 Baa1 712,877 1,000 New Jersey Health Care Facilities Financing Authority, Revenue 7/17 at 100.00 Aa2 953,460 Bonds, CentraState Medical Center, Series 2006A, 5.000%, 7/01/30 - AGC Insured 90 New Jersey Health Care Facilities Financing Authority, Revenue 7/15 at 100.00 Baa3 69,918 Bonds, Children's Specialized Hospital, Series 2005A, 5.500%, 7/01/36 120 New Jersey Health Care Facilities Financing Authority, Revenue 7/16 at 100.00 A- 98,458 Bonds, Hunterdon Medical Center, Series 2006, 5.125%, 7/01/35 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, Kennedy Health System Obligated Group, Series 2001: 400 5.500%, 7/01/21 7/11 at 100.00 A2 400,776 140 5.625%, 7/01/31 7/11 at 100.00 A2 130,357 510 New Jersey Health Care Facilities Financing Authority, Revenue 7/09 at 101.00 AA 483,827 Bonds, Meridian Health System Obligated Group, Series 1999, 5.250%, 7/01/29 - FSA Insured 1,185 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 101.00 BB+ 854,314 Bonds, Palisades Medical Center of New York Presbyterian Healthcare System, Series 2002, 6.625%, 7/01/31 3,500 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 A2 3,384,849 Bonds, Robert Wood Johnson University Hospital, Series 2000, 5.750%, 7/01/31 630 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 BBB- 543,816 Bonds, Shore Memorial Health System, Series 2003, 5.000%, 7/01/23 - RAAI Insured 700 New Jersey Health Care Facilities Financing Authority, Revenue 7/13 at 100.00 Ba2 365,631 Bonds, Somerset Medical Center, Series 2003, 5.500%, 7/01/33 New Jersey Health Care Facilities Financing Authority, Revenue Bonds, South Jersey Hospital System, Series 2006: 455 5.000%, 7/01/36 7/16 at 100.00 A2 378,478 435 5.000%, 7/01/46 7/16 at 100.00 A2 348,187 775 New Jersey Health Care Facilities Financing Authority, Revenue 7/10 at 100.00 Baa2 776,403 Bonds, St. Peter's University Hospital, Series 2000A, 6.875%, 7/01/20 1,390 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A+ 1,396,255 Refunding Bonds, Atlantic City Medical Center, Series 2002, 5.750%, 7/01/25
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,150 New Jersey Health Care Facilities Financing Authority, Revenue 1/12 at 100.00 BBB- $ 790,982 Refunding Bonds, Bayshore Community Hospital, Series 2002, 5.125%, 7/01/32 - RAAI Insured 960 New Jersey Health Facilities Financing Authority, Revenue 7/18 at 100.00 AAA 946,877 Bonds, Meridian Health, Series 2007-I, 5.000%, 7/01/38 - AGC Insured 1,100 Puerto Rico Industrial, Tourist, Educational, Medical and 6/09 at 100.50 A3 1,107,315 Environmental Control Facilities Financing Authority, Adjustable Rate Industrial Revenue Bonds, American Home Products Corporation, Series 1983A, 5.100%, 12/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 19,575 Total Health Care 17,963,595 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 0.3% (0.2% OF TOTAL INVESTMENTS) 225 New Jersey Housing and Mortgage Finance Agency, Single Family 4/17 at 100.00 AA 190,721 Housing Revenue Bonds, Series 2007T, 4.700%, 10/01/37 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 0.4% (0.3% OF TOTAL INVESTMENTS) 220 Gloucester County Improvement Authority, New Jersey, Solid No Opt. Call BBB 221,265 Waste Resource Recovery Revenue Refunding Bonds, Waste Management Inc. Project, Series 1999B, 6.850%, 12/01/29 (Mandatory put 12/01/09) - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 8.8% (5.7% OF TOTAL INVESTMENTS) 415 Burlington County Bridge Commission, New Jersey, Economic 1/18 at 100.00 N/R 250,560 Development Revenue Bonds, The Evergreens Project, Series 2007, 5.625%, 1/01/38 New Jersey Economic Development Authority, Revenue Bonds, Masonic Charity Foundation of New Jersey, Series 2001: 1,000 5.500%, 6/01/21 6/11 at 102.00 A- 1,005,750 4,000 5.500%, 6/01/31 6/11 at 102.00 A- 3,647,519 375 New Jersey Economic Development Authority, Revenue Bonds, 7/09 at 101.00 BB+ 246,825 United Methodist Homes of New Jersey Obligated Group, Series 1998, 5.125%, 7/01/25 - ------------------------------------------------------------------------------------------------------------------------------------ 5,790 Total Long-Term Care 5,150,654 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 1.9% (1.2% OF TOTAL INVESTMENTS) 700 Jersey City, New Jersey, General Obligation Bonds, Series 9/16 at 100.00 A1 728,721 2006A, 5.000%, 9/01/22 - AMBAC Insured 385 Puerto Rico, General Obligation and Public Improvement Bonds, 7/11 at 100.00 AAA 387,041 Series 2001, 5.125%, 7/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,085 Total Tax Obligation/General 1,115,762 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 29.5% (19.2% OF TOTAL INVESTMENTS) 400 Bergen County Improvement Authority, New Jersey, Guaranteed No Opt. Call Aaa 447,920 Lease Revenue Bonds, County Administration Complex Project, Series 2005, 5.000%, 11/15/26 1,000 Burlington County Bridge Commission, New Jersey, Guaranteed 12/13 at 100.00 AA 1,080,170 Pooled Loan Bonds, Series 2003, 5.000%, 12/01/18 - MBIA Insured 750 Casino Reinvestment Development Authority, New Jersey, Hotel 1/15 at 102.00 A 770,738 Room Fee Revenue Bonds, Series 2004, 5.250%, 1/01/16 - AMBAC Insured 435 Essex County Improvement Authority, New Jersey, Project No Opt. Call A1 479,287 Consolidation Revenue Bonds, Series 2007, 5.250%, 12/15/22 - AMBAC Insured 530 Garden State Preservation Trust, New Jersey, Open Space and No Opt. Call AAA 614,493 Farmland Preservation Bonds, Series 2005C, 5.125%, 11/01/18 - FSA Insured 1,305 New Jersey Building Authority, State Building Revenue Bonds, 6/16 at 100.00 AA- 1,327,616 Series 2007A, 5.000%, 6/15/26
Nuveen Investments 53 NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New Jersey Economic Development Authority, Cigarette Tax Revenue Bonds, Series 2004: $ 435 5.500%, 6/15/24 6/12 at 100.00 BBB $ 340,200 700 5.750%, 6/15/34 6/14 at 100.00 BBB 500,311 New Jersey Economic Development Authority, Revenue Bonds, Newark Downtown District Management Corporation Project, Series 2007: 50 5.125%, 6/15/27 6/17 at 100.00 Baa3 37,966 75 5.125%, 6/15/37 6/17 at 100.00 Baa3 52,648 New Jersey Economic Development Authority, School Facilities Construction Financing Program Bonds, Series 2007U: 435 5.000%, 9/01/37 - AMBAC Insured 9/17 at 100.00 AA- 431,063 870 5.000%, 9/01/37 9/17 at 100.00 AA- 862,127 350 New Jersey Educational Facilities Authority, Revenue Bonds, No Opt. Call AAA 394,258 Higher Education Capital Improvement Fund, Series 2005A, 5.000%, 9/01/15 - FSA Insured New Jersey Health Care Facilities Financing Authority, Lease Revenue Bonds, Department of Human Services - Greystone Park Psychiatric Hospital, Series 2005: 655 5.000%, 9/15/18 - AMBAC Insured 9/15 at 100.00 AA- 678,816 985 5.000%, 9/15/24 - AMBAC Insured 9/15 at 100.00 AA- 980,765 200 New Jersey Health Care Facilities Financing Authority, State 10/18 at 100.00 AA- 198,508 Contract Bonds, Hospital Asset Transformation Program, Series 2008A, 5.250%, 10/01/38 1,000 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call A1 1,090,320 Federal Transit Administration Grants, Series 2002A, 5.500%, 9/15/14 - AMBAC Insured 765 New Jersey Transit Corporation, Lease Appropriation Bonds, 9/15 at 100.00 AA- 786,428 Series 2005A, 5.000%, 9/15/18 - FGIC Insured New Jersey Transportation Trust Fund Authority, Federal Highway Aid Grant Anticipation Bonds, Series 2006: 295 5.000%, 6/15/17 - FGIC Insured 6/16 at 100.00 AA- 318,930 525 5.000%, 6/15/18 - FGIC Insured 6/16 at 100.00 AA- 560,432 900 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 1,008,954 System Bonds, Series 2004B, 5.500%, 12/15/16 - MBIA Insured 665 New Jersey Transportation Trust Fund Authority, Transportation 6/15 at 100.00 AAA 706,529 System Bonds, Series 2005D, 5.000%, 6/15/19 - FSA Insured 800 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 870,808 System Bonds, Series 2006A, 5.500%, 12/15/22 New Jersey Transportation Trust Fund Authority, Transportation System Bonds, Series 2006C: 3,040 0.000%, 12/15/28 - AMBAC Insured No Opt. Call AA- 951,003 2,000 0.000%, 12/15/32 - FSA Insured No Opt. Call AAA 472,880 5,000 0.000%, 12/15/34 - FSA Insured No Opt. Call AAA 1,038,050 290 Puerto Rico Convention Center District Authority, Hotel 7/16 at 100.00 BBB+ 223,100 Occupancy Tax Revenue Bonds, Series 2006A, 4.500%, 7/01/36 - CIFG Insured - ------------------------------------------------------------------------------------------------------------------------------------ 24,455 Total Tax Obligation/Limited 17,224,320 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 24.2% (15.8% OF TOTAL INVESTMENTS) 500 Delaware River and Bay Authority, Delaware and New Jersey, 1/15 at 100.00 AA- 505,125 Revenue Bonds, Series 2005, 5.000%, 1/01/27 - MBIA Insured 600 New Jersey Economic Development Authority, Special Facilities 11/10 at 101.00 B 421,062 Revenue Bonds, Continental Airlines Inc., Series 2000, 7.000%, 11/15/30 (Alternative Minimum Tax) 2,000 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AA- 2,076,000 5.000%, 1/01/19 - FGIC Insured 1,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, No Opt. Call AAA 1,615,080 5.250%, 1/01/29 - FSA Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 500 Port Authority of New York and New Jersey, Consolidated 1/14 at 101.00 AA- $ 503,050 Revenue Bonds, One Hundred Thirty-Fourth Series 2004, 5.000%, 7/15/34 3,000 Port Authority of New York and New Jersey, Consolidated 4/12 at 101.00 AAA 3,052,589 Revenue Bonds, One Hundred Twenty-Fifth Series 2002, 5.000%, 10/15/26 - FSA Insured 2,000 Port Authority of New York and New Jersey, Consolidated 6/14 at 100.00 AA- 1,811,160 Revenue Bonds, One Hundred Twenty-Seventh Series 2002, 5.125%, 6/15/37 - AMBAC Insured (Alternative Minimum Tax) Port Authority of New York and New Jersey, Special Project Bonds, JFK International Air Terminal LLC, Sixth Series 1997: 4,000 7.000%, 12/01/12 - MBIA Insured (Alternative Minimum Tax) No Opt. Call AA- 4,155,759 50 5.750%, 12/01/22 - MBIA Insured (Alternative Minimum Tax) 6/09 at 101.00 AA- 41,704 - ------------------------------------------------------------------------------------------------------------------------------------ 14,150 Total Transportation 14,181,529 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.7% (18.1% OF TOTAL INVESTMENTS) (4) 1,000 Bergen County Improvement Authority, New Jersey, Revenue 9/12 at 101.00 N/R (4) 1,149,190 Bonds, Yeshiva Ktana of Passaic Project, Series 2002, 6.000%, 9/15/27 (Pre-refunded 9/01/12) 2,000 Jackson Township School District, Ocean County, New Jersey, 4/12 at 100.00 AA (4) 2,216,220 General Obligation Bonds, Series 2002, 5.000%, 4/15/21 (Pre-refunded 4/15/12) - FGIC Insured 175 New Jersey Educational Facilities Authority, Revenue Bonds, 7/16 at 100.00 AA- (4) 205,114 Kean University, Series 2005B, 5.000%, 7/01/30 (Pre-refunded 7/01/16) - MBIA Insured New Jersey Educational Facilities Authority, Revenue Bonds, Montclair State University, Series 2005F: 800 5.000%, 7/01/17 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 928,792 315 5.000%, 7/01/32 (Pre-refunded 7/01/15) - FGIC Insured 7/15 at 100.00 A2 (4) 365,712 1,250 New Jersey Health Care Facilities Financing Authority, Revenue 7/12 at 100.00 A2 (4) 1,425,513 Bonds, South Jersey Hospital System, Series 2002, 5.875%, 7/01/21 (Pre-refunded 7/01/12) 1,920 New Jersey Housing and Mortgage Finance Agency, Multifamily 5/09 at 100.75 A+ (4) 1,920,845 Housing Revenue Bonds, Series 1997A, 5.650%, 5/01/40 - AMBAC Insured (Alternative Minimum Tax) New Jersey Turnpike Authority, Revenue Bonds, Series 1991C: 170 6.500%, 1/01/16 (ETM) No Opt. Call AAA 211,587 2,430 6.500%, 1/01/16 (ETM) No Opt. Call AAA 2,855,712 250 Newark Housing Authority, New Jersey, Port Authority Terminal 1/14 at 100.00 AA- (4) 288,275 Revenue Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded 1/01/14) - MBIA Insured 1,000 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 1,044,900 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 505 Puerto Rico Public Finance Corporation, Commonwealth 2/12 at 100.00 AAA 557,025 Appropriation Bonds, Series 2002E, 5.500%, 8/01/29 (Pre-refunded 2/01/12) Tobacco Settlement Financing Corporation, New Jersey, Tobacco Settlement Asset-Backed Bonds, Series 2003: 1,525 6.125%, 6/01/24 (Pre-refunded 6/01/12) 6/12 at 100.00 AAA 1,600,335 1,250 6.375%, 6/01/32 (Pre-refunded 6/01/13) 6/13 at 100.00 AAA 1,443,900 - ------------------------------------------------------------------------------------------------------------------------------------ 14,590 Total U.S. Guaranteed 16,213,120 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.4% (2.9% OF TOTAL INVESTMENTS) 95 Camden County Pollution Control Financing Authority, New 6/09 at 100.00 Baa3 95,200 Jersey, Solid Waste Disposal and Resource Recovery System Revenue Bonds, Series 1991B, 7.500%, 12/01/09 (Alternative Minimum Tax) 2,300 Guam Power Authority, Revenue Bonds, Series 1999A, 5.250%, 10/09 at 101.00 AA 1,735,925 10/01/34 - MBIA Insured 750 New Jersey Economic Development Authority, Pollution Control No Opt. Call Baa1 733,215 Revenue Refunding Bonds, Public Service Electric and Gas Company, Series 2001A, 5.000%, 3/01/12 - ------------------------------------------------------------------------------------------------------------------------------------ 3,145 Total Utilities 2,564,340 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 55 NUJ | Nuveen New Jersey Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.1% (0.7% OF TOTAL INVESTMENTS) $ 150 Guam Government Waterworks Authority, Water and Wastewater 7/15 at 100.00 Ba2 $ 123,560 System Revenue Bonds, Series 2005, 6.000%, 7/01/25 500 North Hudson Sewerage Authority, New Jersey, Sewerage Revenue 8/12 at 100.00 N/R 516,420 Refunding Bonds, Series 2002A, 5.250%, 8/01/19 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 650 Total Water and Sewer 639,980 - ------------------------------------------------------------------------------------------------------------------------------------ $ 101,105 Total Investments (cost $95,759,793) - 153.3% 89,632,547 ============------------------------------------------------------------------------------------------------------------------------ Other Assets Less Liabilities - 2.5% 1,423,295 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.8)% (5) (32,600,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 58,455,842 ---------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 36.4%. N/R Not rated. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 56 Nuveen Investments NQP | Nuveen Pennsylvania Investment Quality Municipal Fund | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 0.5% (0.3% OF TOTAL INVESTMENTS) $ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,004,400 Waste Disposal Revenue Bonds, Procter & Gamble Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 31.0% (19.4% OF TOTAL INVESTMENTS) 2,000 Allegheny County Higher Education Building Authority, 9/09 at 101.00 BBB 1,847,960 Pennsylvania, College Revenue Bonds, Chatham College, Series 1998A, 5.250%, 9/01/18 200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 162,010 Pennsylvania, College Revenue Refunding Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28 3,000 Allegheny County Higher Education Building Authority, 3/12 at 100.00 AA- 3,013,530 Pennsylvania, Revenue Bonds, Carnegie Mellon University, Series 2002, 5.125%, 3/01/32 1,235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 878,752 Pennsylvania, Revenue Bonds, Robert Morris University, Series 2006A, 4.750%, 2/15/26 2,000 Chester County Industrial Development Authority, 1/12 at 100.00 A 2,004,320 Pennsylvania, Educational Facilities Revenue Bonds, Westtown School, Series 2002, 5.000%, 1/01/26 - AMBAC Insured 3,000 Delaware County Authority, Pennsylvania, Revenue Bonds, 11/10 at 101.00 AA 3,095,430 Haverford College, Series 2000, 5.750%, 11/15/29 Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006: 1,710 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 A 1,759,094 840 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 858,900 Erie Higher Education Building Authority, Pennsylvania, College Revenue Bonds, Gannon University, Series 2007-GG3: 790 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 BBB- 627,339 250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB- 195,453 575 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 N/R 522,014 College Revenue Bonds, College of Misericordia Project, Series 1999, 6.000%, 5/01/19 - ACA Insured Indiana County Industrial Development Authority, Pennsylvania, Revenue Bonds, Student Cooperative Association Inc./Indiana University of Pennsylvania - Student Union Project, Series 1999B: 815 0.000%, 11/01/15 - AMBAC Insured No Opt. Call A 622,375 815 0.000%, 11/01/16 - AMBAC Insured No Opt. Call A 586,140 815 0.000%, 11/01/17 - AMBAC Insured No Opt. Call A 550,321 815 0.000%, 11/01/18 - AMBAC Insured No Opt. Call A 516,686 815 0.000%, 11/01/19 - AMBAC Insured No Opt. Call A 481,999 1,515 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 BBB- 1,087,740 Pennsylvania, Revenue Bonds, Arcadia University, Series 2006, 4.500%, 4/01/30 - RAAI Insured 355 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 285,477 Series 2007G, 5.125%, 5/01/33 - RAAI Insured 8,000 Pennsylvania Higher Education Assistance Agency, Capital 11/11 at 100.00 AA 7,623,520 Acquisition Revenue Refunding Bonds, Series 2001, 5.000%, 12/15/30 - MBIA Insured 5,000 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aa3 5,215,450 Revenue Bonds, State System of Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured 4,600 Pennsylvania Higher Educational Facilities Authority, General 6/18 at 100.00 Aa3 4,629,900 Revenue Bonds, State System of Higher Education, Series 2008AH, 5.000%, 6/15/33
Nuveen Investments 57 NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,435 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- $ 1,238,821 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 2,650 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AA- 2,606,832 Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured 5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/11 at 100.00 BBB- 4,199,650 Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI Insured 3,870 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AA- 4,075,497 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 320 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 327,510 Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/20 2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA+ 2,008,320 Bonds, University of Pennsylvania, Series 2005C, 5.000%, 7/15/38 2,945 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 A- 2,990,324 Bonds, Ursinus College, Series 2003, 5.375%, 1/01/20 - RAAI Insured 785 Pennsylvania Higher Educational Facilities Authority, Revenue 11/15 at 100.00 A 790,581 Bonds, York College Project, Series 2005EE1, 5.250%, 11/01/27 - SYNCORA GTY Insured 6,500 Pennsylvania State University, General Revenue Bonds, Series 9/15 at 100.00 AA 6,681,740 2005, 5.000%, 9/01/29 (UB) Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Franklin Towne Charter High School, Series 2006A: 510 5.250%, 1/01/27 1/17 at 100.00 BBB 595,109 860 5.375%, 1/01/32 1/17 at 100.00 BBB 1,010,878 2,830 Swarthmore Borough Authority, Pennsylvania, Swarthmore 9/09 at 100.00 AAA 2,838,235 College Revenue Bonds, Series 1998, 5.000%, 9/15/28 1,665 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,786,129 Authority, Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/18 - ------------------------------------------------------------------------------------------------------------------------------------ 70,515 Total Education and Civic Organizations 67,714,036 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.6% (8.5% OF TOTAL INVESTMENTS) Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A: 1,150 5.000%, 4/01/25 4/15 at 100.00 Baa2 870,401 1,555 5.125%, 4/01/35 4/15 at 100.00 Baa2 1,065,439 1,115 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 A 1,119,304 Hamot Health Foundation, Series 2002, 5.250%, 11/01/15 - AMBAC Insured 280 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 214,049 Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured 1,890 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 1,835,360 Revenue Bonds, The Lancaster General Hospital Project, Series 2007A, 5.000%, 3/15/26 250 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 Baa2 221,613 Revenue Bonds, Good Samaritan Hospital Project, Series 2002, 5.800%, 11/15/22 3,280 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 3,057,780 Hospital Revenue Bonds, Lehigh Valley Health Network, Series 2008A, 5.000%, 7/01/33 - FSA Insured 1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,199,663 Revenue Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24 5,345 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 5,221,103 Revenue Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/30 - AGC Insured 710 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 564,755 Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,000 Northampton County General Purpose Authority, Pennsylvania, 8/18 at 100.00 BBB+ $ 828,990 Hospital Revenue Bonds, Saint Luke's Hospital Project, Series 2008A, 5.500%, 8/15/35 9,000 Pennsylvania Higher Educational Facilities Authority, Revenue 1/11 at 101.00 AA- 9,158,399 Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 1,615 Sayre Health Care Facility Authority, Pennsylvania, Revenue 7/12 at 100.00 A 1,786,658 Bonds, Latrobe Area Hospital, Series 2002A, 5.250%, 7/01/13 - AMBAC Insured 1,060 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 558,355 Bonds, Guthrie Healthcare System, Series 2007, 1.675%, 12/01/31 - AMBAC Insured Southcentral Pennsylvania General Authority, Revenue Bonds, Hanover Hospital Inc., Series 2005: 525 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 BBB- 412,141 370 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 BBB- 281,977 1,500 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 1,243,320 Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001, 6.250%, 1/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 31,895 Total Health Care 29,639,307 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 2.9% (1.8% OF TOTAL INVESTMENTS) 5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/17 at 100.00 BBB- 3,414,900 Bonds, Slippery Rock University Foundation Inc., Series 2007A, 5.000%, 7/01/39 - SYNCORA GTY Insured 3,300 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 BBB- 2,235,750 Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 - SYNCORA GTY Insured 800 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 554,016 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 175 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 8/09 at 100.00 A2 175,298 Mortgage Revenue Bonds, Series 1992C, 7.125%, 8/01/13 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 9,275 Total Housing/Multifamily 6,379,964 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 10.1% (6.3% OF TOTAL INVESTMENTS) 9,000 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 8,015,309 Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 2,665 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 2,507,632 Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax) 1,750 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,612,940 Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) 1,355 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,181,275 Revenue Bonds, Series 2007-97A, 4.600%, 10/01/27 (Alternative Minimum Tax) 2,130 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 1,881,749 Revenue Bonds, Series 2007-98A, 4.850%, 10/01/31 (Alternative Minimum Tax) 2,150 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 2,171,565 Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38 1,745 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 1,608,332 Revenue Bonds, Series 2006, 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 910 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/09 at 100.00 AAA 917,453 Mortgage Revenue Bonds, Series 1997A, 6.250%, 10/01/28 (Alternative Minimum Tax) 2,125 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/11 at 100.00 AAA 2,062,015 Mortgage Revenue Bonds, Series 2001B, 5.450%, 10/01/32 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 23,830 Total Housing/Single Family 21,958,270 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 59 NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 4.3% (2.7% OF TOTAL INVESTMENTS) $ 5,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 $ 3,855,500 Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.375%, 11/01/41 (Alternative Minimum Tax) 5,000 Pennsylvania Industrial Development Authority, Economic No Opt. Call A 5,479,750 Development Revenue Bonds, Series 2002, 5.500%, 7/01/12 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 10,000 Total Industrials 9,335,250 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS) 1,330 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 913,351 Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%, 1/01/36 1,500 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 BBB+ 1,147,755 Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/26 - RAAI Insured Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Masonic Homes Project, Series 2006: 1,550 5.000%, 11/01/26 11/16 at 100.00 A 1,372,711 415 5.000%, 11/01/36 11/16 at 100.00 A 335,718 1,500 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A 1,314,630 Pennsylvania, Revenue Bonds, Philadelphia Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,295 Total Long-Term Care 5,084,165 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 0.8% (0.5% OF TOTAL INVESTMENTS) 1,260 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 943,249 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 1,750 Pennsylvania Economic Development Financing Authority, Exempt 5/09 at 102.00 N/R 913,868 Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 3,010 Total Materials 1,857,117 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 26.3% (16.4% OF TOTAL INVESTMENTS) 1,800 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A 1,835,352 Series 2000C-53, 5.250%, 11/01/20 - FGIC Insured 6,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 6,516,120 Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17 (UB) 7,350 Erie City School District, Erie County, Pennsylvania, General No Opt. Call A 2,194,196 Obligation Bonds, Series 2000, 0.000%, 9/01/30 - AMBAC Insured 5,000 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,863,450 Bonds, School District of Philadelphia, Series 2006B, 5.000% 6/01/33 - FSA Insured (UB) 4,830 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,288,319 Residuals 1986, 12.678%, 3/01/27 (IF) 1,500 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 1,702,140 5.000%, 10/01/18 500 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 563,885 5.000%, 1/01/18 1,500 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 1,452,030 Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured 4,135 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 4,134,669 Improvement General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA Insured 3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,455,130 General Obligation Refunding Bonds, Series 2002A, 5.500%, 9/01/15 - FSA Insured 1,070 Schuylkill Valley School District, Berks County, 4/16 at 100.00 A1 1,105,513 Pennsylvania, General Obligation Bonds, Series 2006A, 5.000%, 4/01/22 - FGIC Insured 445 State Public School Building Authority, Pennsylvania, School 11/13 at 100.00 AA- 449,971 Revenue Bonds, Conneaut School District, Series 2003, 5.250%, 11/01/21 - FGIC Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 21,000 State Public School Building Authority, Pennsylvania, Lease No Opt. Call AAA $ 22,334,760 Revenue Bonds, Philadelphia School District, Series 2003, 5.500%, 6/01/28 - FSA Insured (UB) 1,465 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,537,063 Pennsylvania, General Obligation Bonds, Series 2001A, 5.000%, 4/01/18 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 59,595 Total Tax Obligation/General 57,432,598 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 9.9% (6.2% OF TOTAL INVESTMENTS) 3,500 Allegheny County Port Authority, Pennsylvania, Special 3/11 at 101.00 AA- 3,447,815 Transportation Revenue Bonds, Series 2001, 5.000%, 3/01/29 - FGIC Insured 8,725 Pennsylvania Intergovernmental Cooperative Authority, Special 6/09 at 100.00 AA 8,727,093 Tax Revenue Refunding Bonds, Philadelphia Funding Program, Series 1999, 4.750%, 6/15/23 - FGIC Insured 2,140 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 2,164,289 Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured 2,700 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,896,776 Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured 4,000 Pittsburgh and Allegheny Counties Public Auditorium 8/09 at 101.00 A 3,742,240 Authority, Pennsylvania, Sales Tax Revenue Bonds, Regional Asset District, Series 1999, 5.000%, 2/01/29 - AMBAC Insured 3,140 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 557,664 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 24,205 Total Tax Obligation/Limited 21,535,877 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.8% (8.0% OF TOTAL INVESTMENTS) 630 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 662,281 Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17 2,035 Lehigh-Northampton Airport Authority, Pennsylvania, Airport 5/10 at 100.00 Baa1 2,020,511 Revenue Bonds, Lehigh Valley Airport System, Series 2000A, 6.000%, 5/15/30 - MBIA Insured (Alternative Minimum Tax) 5,400 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 4,711,338 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.800%, 6/01/23 - ACA Insured (Alternative Minimum Tax) 2,200 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 Aa3 2,208,844 Series 2001R, 5.000%, 12/01/30 - AMBAC Insured Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, Series 2006A: 3,820 5.000%, 12/01/22 - AMBAC Insured 6/16 at 100.00 Aa3 3,994,994 2,930 5.000%, 12/01/24 - AMBAC Insured 6/16 at 100.00 Aa3 3,032,316 5,000 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/11 at 101.00 AA- 4,465,000 Series 2001B, 5.250%, 6/15/31 - FGIC Insured (Alternative Minimum Tax) 3,600 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AA- 2,916,720 Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative Minimum Tax) 3,250 Philadelphia Parking Authority, Pennsylvania, Airport Parking 9/09 at 101.00 AAA 3,225,690 Revenue Bonds, Series 1999, 5.250%, 9/01/29 - FSA Insured 800 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 688,128 Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 29,665 Total Transportation 27,925,822 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 32.1% (20.1% OF TOTAL INVESTMENTS) (4) 3,550 Allegheny County, Pennsylvania, General Obligation Bonds, 5/11 at 100.00 A+ (4) 3,846,887 Series 2000C-52, 5.250%, 11/01/23 (Pre-refunded 5/01/11) - FGIC Insured 1,320 Allegheny County, Pennsylvania, General Obligation Refunding 5/11 at 100.00 A (4) 1,428,464 Bonds, Series 2000C-53, 5.250%, 11/01/20 (Pre-refunded 5/01/11) - FGIC Insured
Nuveen Investments 61 NQP | Nuveen Pennsylvania Investment Quality Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) Delaware County Regional Water Quality Control Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2001: $ 5,325 5.100%, 5/01/20 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) $ 5,845,945 1,465 5.100%, 5/01/21 (Pre-refunded 11/01/11) - FGIC Insured 11/11 at 100.00 A3 (4) 1,608,321 1,400 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A3 (4) 1,623,468 Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%, 5/01/20 (Pre-refunded 5/01/14) - MBIA Insured 5,000 Erie, Pennsylvania, Water Authority, Water Revenue Bonds, 12/11 at 100.00 AA- (4) 5,515,150 Series 2001A, 5.200%, 12/01/30 (Pre-refunded 12/01/11) - MBIA Insured 425 Harveys Lake General Municipal Authority, Pennsylvania, 11/09 at 100.00 N/R (4) 436,054 College Revenue Bonds, College of Misericordia Project, Series 1999, 6.000%, 5/01/19 (Pre-refunded 11/01/09) - ACA Insured 6,275 Hempfield Area School District, Westmoreland County, 2/12 at 100.00 A (4) 6,981,000 Pennsylvania, General Obligation Bonds, Series 2002, 5.375%, 2/15/18 (Pre-refunded 2/15/12) - FGIC Insured 1,125 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 AAA 1,303,223 Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem, Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13) 680 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 (4) 764,517 Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/20 (Pre-refunded 1/01/13) 10,935 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 12,089,952 Pennsylvania, Lease Revenue Bonds, Series 2001B, 5.250%, 10/01/30 (Pre-refunded 10/01/11) - FSA Insured 650 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 808,425 Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) Philadelphia, Pennsylvania, Water and Wastewater Revenue Bonds, Series 2001A: 5,525 5.375%, 11/01/20 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A (4) 6,274,190 3,185 5.000%, 11/01/31 (Pre-refunded 11/01/12) - FGIC Insured 11/12 at 100.00 A (4) 3,576,182 6,100 Plum Borough School District, Allegheny County, Pennsylvania, 9/11 at 100.00 AA- (4) 6,681,818 General Obligation Bonds, Series 2001, 5.250%, 9/15/30 (Pre-refunded 9/15/11) - FGIC Insured 960 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,119,715 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14) 2,000 Sto Rox School District, Allegheny County, Pennsylvania, 12/10 at 100.00 AA- (4) 2,161,000 General Obligation Bonds, Series 2000, 5.800%, 6/15/30 (Pre-refunded 12/15/10) - MBIA Insured 3,000 Warrington Township Municipal Authority, Bucks County, 11/15 at 100.00 N/R (4) 3,714,150 Pennsylvania, Water and Sewer Revenue Bonds, Series 1991, 7.100%, 12/01/21 (Pre-refunded 11/15/15) - FGIC Insured 3,575 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 4,415,161 Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%, 11/15/14 (ETM) - ------------------------------------------------------------------------------------------------------------------------------------ 62,495 Total U.S. Guaranteed 70,193,622 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 6.4% (4.0% OF TOTAL INVESTMENTS) 1,250 Allegheny County Industrial Development Authority, No Opt. Call Baa2 1,245,538 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 610 Carbon County Industrial Development Authority, Pennsylvania, No Opt. Call BBB- 612,245 Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 1,430 Lehigh County Industrial Development Authority, Pennsylvania, 2/15 at 100.00 AA- 1,245,930 Pollution Control Revenue Bonds, Pennsylvania Power and Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured 700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 708,120 Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 2,094,360 Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA Insured 5,490 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 4,778,771 Series, 2007, 5.000%, 10/01/37 - AMBAC Insured
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,700 York County Industrial Development Authority, Pennsylvania, 3/12 at 101.00 Baa1 $ 3,330,481 Pollution Control Revenue Refunding Bonds, PSEG Power Project, Series 2001A, 5.500%, 9/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 15,180 Total Utilities 14,015,445 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.8% (4.3% OF TOTAL INVESTMENTS) 2,100 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AA- 2,158,842 Revenue Bonds, Series 2005A, 5.000%, 12/01/21 - MBIA Insured 2,205 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,288,062 Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured 5,000 Delaware County Industrial Development Authority, 10/12 at 100.00 AA- 4,522,200 Pennsylvania, Water Facilities Revenue Bonds, Philadelphia Water Company, Series 2001, 5.350%, 10/01/31 - AMBAC Insured (Alternative Minimum Tax) 2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,051,440 Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured 1,815 Philadelphia, Pennsylvania, Water and Wastewater Revenue 11/12 at 100.00 A 1,718,823 Bonds, Series 2001A, 5.000%, 11/01/31 - FGIC Insured 2,150 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,219,487 Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 15,270 Total Water and Sewer 14,958,854 - ------------------------------------------------------------------------------------------------------------------------------------ $ 362,230 Total Investments (cost $356,718,588) - 159.8% 349,034,727 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (12.3)% (26,855,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.7% 7,923,186 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.2)% (5) (111,750,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 218,352,913 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 32.0%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1- Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. Nuveen Investments 63 NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 23.6% (15.9% OF TOTAL INVESTMENTS) $ 1,045 Allegheny County Higher Education Building Authority, 5/09 at 102.00 N/R $ 665,634 Pennsylvania, College Revenue Bonds, Thiel College, Series 1999A, 5.375%, 11/15/29 - ACA Insured 200 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 162,010 Pennsylvania, College Revenue Refunding Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28 1,245 Allegheny County Higher Education Building Authority, 3/14 at 100.00 AA- 1,295,298 Pennsylvania, Revenue Bonds, Duquesne University, Series 2004A, 5.000%, 3/01/19 - FGIC Insured 1,140 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 811,156 Pennsylvania, Revenue Bonds, Robert Morris University, Series 2006A, 4.750%, 2/15/26 3,000 Chester County Health and Education Facilities Authority, 10/09 at 101.00 BB+ 2,087,130 Pennsylvania, College Revenue Bonds, Immaculata College, Series 1998, 5.625%, 10/15/27 Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006: 1,565 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 A 1,609,931 770 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 787,325 Delaware County Authority, Pennsylvania, Revenue Refunding Bonds, Villanova University, Series 2003: 1,705 5.250%, 8/01/19 - FGIC Insured 8/13 at 100.00 AA- 1,782,731 1,350 5.250%, 8/01/20 - FGIC Insured 8/13 at 100.00 AA- 1,405,121 1,000 5.250%, 8/01/21 - FGIC Insured 8/13 at 100.00 AA- 1,033,750 Erie Higher Education Building Authority, Pennsylvania, College Revenue Bonds, Gannon University, Series 2007-GG3: 725 5.000%, 5/01/32 - RAAI Insured 5/17 at 100.00 BBB- 575,723 250 5.000%, 5/01/35 - RAAI Insured 5/17 at 100.00 BBB- 195,453 3,060 Indiana County Industrial Development Authority, 11/14 at 100.00 A 3,092,222 Pennsylvania, Revenue Bonds, Student Cooperative Association Inc./Indiana University of Pennsylvania - Student Union Project, Series 2004, 5.000%, 11/01/24 - AMBAC Insured 1,575 Montgomery County Higher Education and Health Authority, 4/16 at 100.00 BBB- 1,130,819 Pennsylvania, Revenue Bonds, Arcadia University, Series 2006, 4.500%, 4/01/30 - RAAI Insured 325 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 261,352 Series 2007G, 5.125%, 5/01/33 - RAAI Insured 4,085 Pennsylvania Higher Educational Facilities Authority, General 6/12 at 100.00 Aa3 4,261,023 Revenue Bonds, State System of Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured 4,200 Pennsylvania Higher Educational Facilities Authority, General 6/18 at 100.00 Aa3 4,227,300 Revenue Bonds, State System of Higher Education, Series 2008AH, 5.000%, 6/15/33 1,285 Pennsylvania Higher Educational Facilities Authority, Revenue 5/16 at 100.00 A- 1,109,328 Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 2,420 Pennsylvania Higher Educational Facilities Authority, Revenue 11/17 at 100.00 AA- 2,380,578 Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured 3,000 Pennsylvania Higher Educational Facilities Authority, Revenue 4/16 at 100.00 AA- 3,159,300 Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 1,845 Pennsylvania Higher Educational Facilities Authority, Revenue 1/13 at 100.00 A1 1,749,042 Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/32 2,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/15 at 100.00 AA+ 2,008,320 Bonds, University of Pennsylvania, Series 2005C, 5.000%, 7/15/38 1,310 Pennsylvania Higher Educational Facilities Authority, Revenue 7/13 at 100.00 A- 1,311,821 Bonds, Ursinus College, Series 2003, 5.500%, 1/01/24 - RAAI Insured
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 800 Pennsylvania Higher Educational Facilities Authority, Revenue 11/15 at 100.00 A $ 805,688 Bonds, York College Project, Series 2005EE1, 5.250%, 11/01/27 - SYNCORA GTY Insured 1,000 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 A3 950,010 University of the Sciences in Philadelphia Revenue Bonds, Series 2005, 4.750%, 11/01/33 - SYNCORA GTY Insured 3,105 Pennsylvania State University, General Revenue Bonds, Tender 8/16 at 100.00 AA 4,070,220 Option Bond Trust 3214, 13.459%, 8/15/36 (IF) Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Franklin Towne Charter High School, Series 2006A: 470 5.250%, 1/01/27 1/17 at 100.00 BBB 548,434 790 5.375%, 1/01/32 1/17 at 100.00 BBB 928,598 1,545 State Public School Building Authority, Pennsylvania, College 5/15 at 100.00 Aa3 1,668,631 Revenue Bonds, Montgomery County Community College, Series 2005, 5.000%, 5/01/18 - AMBAC Insured 750 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 809,348 Authority, Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/19 - ------------------------------------------------------------------------------------------------------------------------------------ 47,560 Total Education and Civic Organizations 46,883,296 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 13.8% (9.3% OF TOTAL INVESTMENTS) Allegheny County Hospital Development Authority, Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A: 1,150 5.000%, 4/01/25 4/15 at 100.00 Baa2 870,401 1,455 5.125%, 4/01/35 4/15 at 100.00 Baa2 996,922 1,230 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/12 at 100.00 A 1,225,326 Hamot Health Foundation, Series 2002, 5.250%, 11/01/16 - AMBAC Insured 395 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 301,962 Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured 1,885 Lancaster County Hospital Authority, Pennsylvania, Hospital 3/17 at 100.00 AA- 1,830,505 Revenue Bonds, The Lancaster General Hospital Project, Series 2007A, 5.000%, 3/15/26 5,000 Lebanon County Health Facilities Authority, Pennsylvania, 11/12 at 101.00 Baa2 4,080,650 Revenue Bonds, Good Samaritan Hospital Project, Series 2002, 5.900%, 11/15/28 2,990 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 2,787,428 Hospital Revenue Bonds, Lehigh Valley Health Network, Series 2008A, 5.000%, 7/01/33 - FSA Insured 1,250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 1,199,663 Revenue Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24 4,505 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 4,400,574 Revenue Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/30 - AGC Insured 650 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 517,030 Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37 Northampton County General Purpose Authority, Pennsylvania, Hospital Revenue Bonds, Saint Luke's Hospital Project, Series 2008A: 1,235 5.250%, 8/15/23 8/18 at 100.00 BBB+ 1,119,281 1,000 5.500%, 8/15/35 8/18 at 100.00 BBB+ 828,990 Pottsville Hospital Authority, Pennsylvania, Hospital Revenue Bonds, Pottsville Hospital and Warne Clinic, Series 1998: 2,000 5.500%, 7/01/18 7/09 at 100.00 BB- 1,595,080 2,000 5.625%, 7/01/24 7/09 at 100.00 BB- 1,411,960 Sayre Health Care Facility Authority, Pennsylvania, Revenue Bonds, Latrobe Area Hospital, Series 2002A: 1,700 5.250%, 7/01/14 - AMBAC Insured 7/12 at 100.00 A 1,880,693 1,200 5.250%, 7/01/15 - AMBAC Insured 7/12 at 100.00 A 1,327,548 970 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 510,948 Bonds, Guthrie Healthcare System, Series 2007, 1.675%, 12/01/31 - AMBAC Insured
Nuveen Investments 65 NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) Southcentral Pennsylvania General Authority, Revenue Bonds, Hanover Hospital Inc., Series 2005: $ 475 5.000%, 12/01/27 - RAAI Insured 12/15 at 100.00 BBB $ 372,889 330 5.000%, 12/01/29 - RAAI Insured 12/15 at 100.00 BBB 251,493 - ------------------------------------------------------------------------------------------------------------------------------------ 31,420 Total Health Care 27,509,343 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.8% (3.2% OF TOTAL INVESTMENTS) 3,060 Bucks County Redevelopment Authority, Pennsylvania, Section 8 8/09 at 100.00 Baa2 2,973,065 Assisted Second Lien Multifamily Mortgage Revenue Bonds, Country Commons Apartments, Series 1993A, 6.200%, 8/01/14 (Alternative Minimum Tax) 2,000 Delaware County Industrial Development Authority, 4/12 at 100.00 AAA 2,032,740 Pennsylvania, Multifamily Housing Revenue Bonds, Darby Townhouses Project, Series 2002A, 5.500%, 4/01/32 (Mandatory put 4/01/22) (Alternative Minimum Tax) Pennsylvania Higher Educational Facilities Authority, Revenue Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A: 2,035 5.000%, 7/01/19 - SYNCORA GTY Insured 7/15 at 100.00 BBB- 1,711,944 3,400 5.000%, 7/01/37 - SYNCORA GTY Insured 7/15 at 100.00 BBB- 2,303,500 740 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 512,465 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 11,235 Total Housing/Multifamily 9,533,714 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.4% (4.9% OF TOTAL INVESTMENTS) 820 Allegheny County Residential Finance Authority, Pennsylvania, 11/10 at 100.00 Aaa 823,731 GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 2000II-2, 5.900%, 11/01/32 (Alternative Minimum Tax) 90 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/09 at 100.75 AA+ 90,364 Revenue Bonds, Series 1998-62A, 5.500%, 10/01/22 (Alternative Minimum Tax) Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2008-103-C: 430 5.200%, 10/01/28 10/17 at 100.00 AA+ 429,983 1,900 5.450%, 10/01/38 10/17 at 100.00 AA+ 1,919,057 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006: 1,365 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ 1,284,397 4,000 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 3,562,360 3,295 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 3,036,936 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2007: 1,355 4.600%, 10/01/27 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 1,181,275 1,710 4.850%, 10/01/31 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 1,510,700 765 Pittsburgh Urban Redevelopment Authority, Pennsylvania, 10/09 at 100.00 AAA 765,757 Mortgage Revenue Bonds, Series 1997A, 6.200%, 10/01/21 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 15,730 Total Housing/Single Family 14,604,560 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 3.2% (2.2% OF TOTAL INVESTMENTS) 2,000 New Morgan Industrial Development Authority, Pennsylvania, 10/09 at 100.00 BBB 1,946,560 Solid Waste Disposal Revenue Bonds, New Morgan Landfill Company Inc., Series 1994, 6.500%, 4/01/19 (Alternative Minimum Tax) 2,000 Pennsylvania Economic Development Financing Authority, Exempt 5/11 at 101.00 A2 1,567,620 Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax) 2,750 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 A 2,938,980 Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 6,750 Total Industrials 6,453,160 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 4.6% (3.1% OF TOTAL INVESTMENTS) 4,905 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 3,368,411 Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%, 1/01/36 1,000 Cumberland County Municipal Authority, Pennsylvania, Revenue 12/12 at 100.00 BBB+ 812,010 Bonds, Presbyterian Homes Inc., Series 2003A, 5.000%, 12/01/22 - RAAI Insured
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE (continued) Lancaster County Hospital Authority, Pennsylvania, Health Center Revenue Bonds, Masonic Homes Project, Series 2006: $ 1,565 5.000%, 11/01/31 11/16 at 100.00 A $ 1,303,974 230 5.000%, 11/01/36 11/16 at 100.00 A 186,061 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Dr. Gertrude A. Barber Center Inc., Series 2000: 1,000 6.150%, 12/01/20 - RAAI Insured 8/09 at 100.00 BBB 1,000,780 2,000 5.900%, 12/01/30 - RAAI Insured 12/10 at 100.00 BBB 1,667,680 1,230 Pennsylvania Economic Development Financing Authority, 6/09 at 100.00 BB+ 764,888 Revenue Bonds, Northwestern Human Services Inc., Series 1998A, 5.250%, 6/01/28 - ------------------------------------------------------------------------------------------------------------------------------------ 11,930 Total Long-Term Care 9,103,804 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 1.8% (1.2% OF TOTAL INVESTMENTS) 1,190 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 890,846 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 500 Erie County Industrial Development Authority, Pennsylvania, 9/10 at 101.00 BBB 430,150 Environmental Improvement Revenue Refunding Bonds, Series 2000B, 6.000%, 9/01/16 (Alternative Minimum Tax) 4,500 Pennsylvania Economic Development Financing Authority, Exempt 5/09 at 102.00 N/R 2,349,945 Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 6,190 Total Materials 3,670,941 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.1% (11.5% OF TOTAL INVESTMENTS) Harrisburg Redevelopment Authority, Dauphin County, Pennsylvania, Guaranteed Revenue Bonds, Series 1998B: 1,750 0.000%, 5/01/22 - FSA Insured 5/16 at 75.56 AAA 878,938 2,750 0.000%, 11/01/22 - FSA Insured 5/16 at 73.64 AAA 1,343,320 2,750 0.000%, 5/01/23 - FSA Insured 5/16 at 71.71 AAA 1,282,903 260 Lower Merion School District, Montgomery County, 9/17 at 100.00 Aaa 284,825 Pennsylvania, General Obligation Bonds, Series 2007, 5.000%, 9/01/23 2,115 Owen J. Roberts School District, Chester County, 5/16 at 100.00 Aa3 2,221,511 Pennsylvania, General Obligation Bonds, Series 2006, 5.000%, 5/15/24 - FSA Insured 4,835 Pennsylvania State, General Obligation Bonds, Series 2007, 3/17 at 100.00 AA 5,293,793 Residuals 1986, 12.678%, 3/01/27 (IF) 3,200 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 3,631,232 5.000%, 10/01/18 1,000 Pennsylvania, General Obligation Bonds, Second Series 2005, 1/16 at 100.00 AA 1,127,770 5.000%, 1/01/18 1,500 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 1,452,030 Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured 3,775 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 3,774,698 Improvement General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA Insured 2,700 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 2,973,888 2006B, 5.250%, 9/01/16 - FSA Insured 6,710 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 1,746,881 Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured State Public School Building Authority, Pennsylvania, School Revenue Bonds, Conneaut School District, Series 2003: 360 5.250%, 11/01/21 - FGIC Insured 11/13 at 100.00 AA- 364,021 490 5.250%, 11/01/22 - FGIC Insured 11/13 at 100.00 AA- 463,687 1,500 State Public School Building Authority, Pennsylvania, School 5/13 at 100.00 Aa3 1,502,040 Revenue Bonds, York City School District, Series 2003, 4.000%, 5/01/21 - FSA Insured 1,535 Stroudsburg Area School District, Monroe County, 4/12 at 100.00 AAA 1,610,507 Pennsylvania, General Obligation Bonds, Series 2001A, 5.000%, 4/01/19 - FSA Insured
Nuveen Investments 67 NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,400 Woodland Hills School District, Allegheny County, 9/15 at 100.00 AAA $ 1,543,682 Pennsylvania, General Obligation Bonds, Series 2005D, 5.000%, 9/01/17 - FSA Insured 2,400 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 2,418,648 2006, 5.000%, 6/01/33 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 41,030 Total Tax Obligation/General 33,914,374 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 8.7% (5.9% OF TOTAL INVESTMENTS) 1,500 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AA- 1,467,435 Convention Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured 1,950 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 1,972,133 Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured 5,015 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 5,380,493 Revenue Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured 6,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call A 5,657,878 Revenue Bonds, Series 2007N, 5.500%, 7/01/29 - AMBAC Insured 2,880 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 511,488 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 2,405 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AA- 2,371,691 Transportation Authority, Series 2003AA, 5.500%, 7/01/19 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 19,750 Total Tax Obligation/Limited 17,361,118 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 19.6% (13.2% OF TOTAL INVESTMENTS) 650 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 683,306 Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17 4,600 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 3,733,038 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 3,575 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 12/11 at 101.00 Aa3 3,589,372 Series 2001R, 5.000%, 12/01/30 - AMBAC Insured 2,680 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,773,586 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured 3,250 Philadelphia Airport System, Pennsylvania, Revenue Bonds, 6/15 at 100.00 AA- 2,633,150 Series 2005A, 4.750%, 6/15/35 - MBIA Insured (Alternative Minimum Tax) 10,000 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA- 9,151,597 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative Minimum Tax) 6,525 Pittsburgh and Allegheny County Sports and Exhibition 6/09 at 100.00 N/R 6,509,925 Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.350%, 12/01/26 - AMBAC Insured 2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AA- 1,967,600 Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured 2,250 Scranton Parking Authority, Pennsylvania , Guaranteed 6/17 at 100.00 BBB- 1,757,408 Revenue Bonds, Series 2007, 5.250%, 6/01/39 - RAAI Insured 940 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 808,550 Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured 6,700 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Baa3 5,257,356 Airport System Revenue Bonds, Series 2003B, 5.000%, 1/01/33 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 43,170 Total Transportation 38,864,888 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 22.7% (15.3% OF TOTAL INVESTMENTS) (4) 1,695 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AA- (4) 1,818,735 Revenue Bonds, Series 2000, 5.500%, 12/01/30 (Pre-refunded 12/01/10) - MBIA Insured 1,200 Butler County, Pennsylvania, General Obligation Bonds, 7/13 at 100.00 A+ (4) 1,381,188 Series 2003, 5.250%, 7/15/23 (Pre-refunded 7/15/13) - FGIC Insured
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 1,615 Delaware County Regional Water Quality Control Authority, 5/14 at 100.00 A3 (4) $ 1,872,786 Pennsylvania, Sewerage Revenue Bonds, Series 2004, 5.250%, 5/01/23 (Pre-refunded 5/01/14) - MBIA Insured 2,110 Fayette County, Pennsylvania, General Obligation Bonds, 11/10 at 100.00 A (4) 2,268,714 Series 2000, 5.625%, 11/15/28 (Pre-refunded 11/15/10) - AMBAC Insured 2,600 Norristown Area School District, Montgomery County, 3/13 at 100.00 N/R (4) 2,938,468 Pennsylvania, General Obligation Bonds, Series 2003, 5.000%, 9/01/24 (Pre-refunded 3/01/13) - FGIC Insured 960 Pennsylvania Higher Educational Facilities Authority, No Opt. Call Aaa 1,122,048 College Revenue Bonds, Ninth Series 1976, 7.625%, 7/01/15 (ETM) 2,100 Pennsylvania Higher Educational Facilities Authority, 6/10 at 100.00 BBB- (4) 2,221,800 Revenue Bonds, Philadelphia University, Series 2000, 6.000%, 6/01/29 (Pre-refunded 6/01/10) - RAAI Insured 1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 101.00 BBB- (4) 1,643,190 Revenue Bonds, Temple University, Series 2001, 5.000%, 7/15/31 (Pre-refunded 7/15/11) - MBIA Insured 3,905 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 (4) 4,390,352 Revenue Bonds, Thomas Jefferson University, Series 2002, 5.000%, 1/01/32 (Pre-refunded 1/01/13) 5,750 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/09 at 101.00 AAA 5,852,233 Ordinance, Second Series 1999, 5.000%, 7/01/29 (Pre-refunded 7/01/09) - FSA Insured Philadelphia Hospitals and Higher Education Facilities Authority, Pennsylvania, Hospital Revenue Bonds, Presbyterian Medical Center of Philadelphia, Series 1993: 635 6.500%, 12/01/11 (ETM) No Opt. Call AAA 687,197 3,740 6.650%, 12/01/19 (ETM) No Opt. Call AAA 4,683,303 1,015 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 1,183,866 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14) State Public School Building Authority, Berkes County, Pennsylvania, School Revenue Bonds, Brandywine Heights Area School District, Series 2003: 1,930 5.000%, 2/01/20 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1 (4) 2,162,411 1,955 5.000%, 2/01/21 (Pre-refunded 2/01/13) - FGIC Insured 2/13 at 100.00 A1 (4) 2,190,421 4,050 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,594,563 Revenue Bonds, Philadelphia School District, Series 2003, 5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured 2,500 West Cornwall Township Municipal Authority, Pennsylvania, 12/11 at 100.00 BBB+ (4) 2,801,025 College Revenue Bonds, Elizabethtown College Project, Series 2001, 5.900%, 12/15/18 (Pre-refunded 12/15/11) 1,085 West View Borough Municipal Authority, Allegheny County, No Opt. Call AAA 1,339,986 Pennsylvania, Special Obligation Bonds, Series 1985A, 9.500%, 11/15/14 (ETM) - ------------------------------------------------------------------------------------------------------------------------------------ 40,345 Total U.S. Guaranteed 45,152,286 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.2% (6.2% OF TOTAL INVESTMENTS) 1,125 Allegheny County Industrial Development Authority, No Opt. Call Baa2 1,120,984 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 830 Carbon County Industrial Development Authority, No Opt. Call BBB- 833,054 Pennsylvania, Resource Recovery Revenue Refunding Bonds, Panther Creek Partners Project, Series 2000, 6.650%, 5/01/10 (Alternative Minimum Tax) 7,590 Indiana County Industrial Development Authority, 5/09 at 100.00 A 6,579,238 Pennsylvania, Pollution Control Revenue Bonds, Metropolitan Edison Company, Series 1997A, 5.950%, 5/01/27 - AMBAC Insured (Alternative Minimum Tax) 2,000 Indiana County Industrial Development Authority, 6/12 at 101.00 Baa1 1,768,000 Pennsylvania, Pollution Control Revenue Refunding Bonds, PSEG Power LLC, Series 2001A, 5.850%, 6/01/27 (Alternative Minimum Tax) 2,150 Lehigh County Industrial Development Authority, 2/15 at 100.00 AA- 1,873,252 Pennsylvania, Pollution Control Revenue Bonds, Pennsylvania Power and Light Company, Series 2005, 4.750%, 2/15/27 - FGIC Insured 700 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 708,120 Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 7/13 at 100.00 AAA 1,047,180 Ordinance, Seventeenth Series 2003, 5.375%, 7/01/19 - FSA Insured
Nuveen Investments 69 NPY | Nuveen Pennsylvania Premium Income Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 5,050 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A $ 4,395,773 Series, 2007, 5.000%, 10/01/37 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 20,445 Total Utilities 18,325,601 - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 12.1% (8.1% OF TOTAL INVESTMENTS) 305 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/10 at 101.00 AA 309,435 Revenue Bonds, Series 2000, 5.500%, 12/01/30 - MBIA Insured Allegheny County Sanitary Authority, Pennsylvania, Sewerage Revenue Bonds, Series 2005A: 1,900 5.000%, 12/01/21 - MBIA Insured 12/15 at 100.00 AA- 1,953,238 2,120 5.000%, 12/01/23 - MBIA Insured 12/15 at 100.00 AA- 2,156,782 545 5.000%, 12/01/30 - MBIA Insured 12/15 at 100.00 AA- 519,385 2,500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA 2,594,175 Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured 4,000 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AA- 3,699,680 Water Facility Revenue Bonds, Pennsylvania Suburban Water Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured (Alternative Minimum Tax) 2,000 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 2,051,440 Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured 3,360 Mercer County Industrial Development Authority, 7/10 at 100.00 AA- 3,269,448 Pennsylvania, Water Facility Revenue Bonds, Consumers Water Company, Shenango Valley Division Project, Series 2000, 6.000%, 7/01/30 - MBIA Insured (Alternative Minimum Tax) Norristown Municipal Waste Authority, Pennsylvania, Sewer Revenue Bonds, Series 2003: 1,140 5.125%, 11/15/22 - FGIC Insured 11/13 at 100.00 N/R 1,065,421 2,535 5.125%, 11/15/23 - FGIC Insured 11/13 at 100.00 N/R 2,342,796 2,000 Philadelphia, Pennsylvania, Water and Wastewater Revenue 7/15 at 100.00 AAA 2,064,640 Bonds, Series 2005A, 5.000%, 7/01/23 - FSA Insured 2,000 Unity Township Municipal Authority, Pennsylvania, Sewerage 12/14 at 100.00 AAA 1,988,479 Revenue Bonds, Series 2004, 5.000%, 12/01/34 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 24,405 Total Water and Sewer 24,014,919 - ------------------------------------------------------------------------------------------------------------------------------------ $ 319,960 Total Investments (cost $307,032,759) - 148.6% 295,392,004 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (3.5)% (7,025,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.9% 9,646,503 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.0)% (5) (99,275,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 198,738,507 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 33.6%. N/R Not rated. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1- Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 70 Nuveen Investments NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 2.3% (1.5% OF TOTAL INVESTMENTS) $ 1,000 Pennsylvania Economic Development Financing Authority, Solid No Opt. Call AA- $ 1,004,400 Waste Disposal Revenue Bonds, Procter & Gamble Paper Project, Series 2001, 5.375%, 3/01/31 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 27.3% (18.2% OF TOTAL INVESTMENTS) 100 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 81,005 Pennsylvania, College Revenue Refunding Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28 235 Allegheny County Higher Education Building Authority, 2/16 at 100.00 Baa3 167,212 Pennsylvania, Revenue Bonds, Robert Morris University, Series 2006A, 4.750%, 2/15/26 2,250 Bucks County Industrial Development Authority, Pennsylvania, 9/11 at 100.00 N/R 2,087,415 Revenue Bonds, George School Project, Series 2001, 5.125%, 9/15/31 - AMBAC Insured 700 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 505,162 Pennsylvania, Revenue Bonds, Immaculata University, Series 2005, 5.500%, 10/15/25 720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 514,022 Pennsylvania, Avon Grove Charter School Revenue Bonds, Series 2007A, 6.375%, 12/15/37 1,000 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB 885,570 Refunding Bonds, Neumann College, Series 2001, 6.000%, 10/01/31 300 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 BBB- 222,258 Bonds, Eastern University, Series 2006, 4.500%, 10/01/27 - RAAI Insured Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006: 295 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 A 303,469 145 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 148,263 160 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 BBB- 127,056 College Revenue Bonds, Gannon University, Series 2007-GG3, 5.000%, 5/01/32 - RAAI Insured 1,000 Montgomery County Industrial Development Authority, 8/15 at 100.00 A1 1,011,760 Pennsylvania, Revenue Bonds, Hill School, Series 2005, 5.000%, 8/15/27 - MBIA Insured 75 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 60,312 Series 2007G, 5.125%, 5/01/33 - RAAI Insured 1,000 Pennsylvania Higher Educational Facilities Authority, 6/12 at 100.00 Aa3 1,043,090 General Revenue Bonds, State System of Higher Education, Series 2002W, 5.000%, 6/15/19 - AMBAC Insured 900 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 905,850 General Revenue Bonds, State System of Higher Education, Series 2008AH, 5.000%, 6/15/33 220 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 189,924 Revenue Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 540 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA- 531,203 Revenue Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured 1,500 Pennsylvania Higher Educational Facilities Authority, 7/11 at 100.00 BBB- 1,259,895 Revenue Bonds, Moravian College, Series 2001, 5.375%, 7/01/31 - RAAI Insured 700 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA- 737,170 Revenue Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 350 Pennsylvania Higher Educational Facilities Authority, 1/13 at 100.00 A1 370,797 Revenue Bonds, Thomas Jefferson University, Series 2002, 5.500%, 1/01/16
Nuveen Investments 71 NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 255 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB $ 297,554 Pennsylvania, Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 470 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BB 280,905 Pennsylvania, Revenue Bonds, Leadership Learning Partners, Series 2005A, 5.375%, 7/01/36 230 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BBB- 172,972 Pennsylvania, Revenue Bonds, Richard Allen Preparatory Charter School, Series 2006, 6.250%, 5/01/33 - ------------------------------------------------------------------------------------------------------------------------------------ 13,145 Total Education and Civic Organizations 11,902,864 - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 21.8% (14.6% OF TOTAL INVESTMENTS) 550 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 376,844 Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A, 5.125%, 4/01/35 640 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- 546,003 Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16 2,500 Chester County Health and Educational Facilities Authority, 5/09 at 100.50 AA- 2,489,924 Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 1997B, 5.375%, 5/15/27 80 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 61,157 Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured 230 Fulton County, Pennsylvania, Industrial Development 7/16 at 100.00 N/R 143,591 Authority Hospital Revenue Bonds, Fulton County Medical Center Project, Series 2006, 5.900%, 7/01/40 650 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 605,963 Hospital Revenue Bonds, Lehigh Valley Health Network, Series 2008A, 5.000%, 7/01/33 - FSA Insured 250 Lehigh County General Purpose Authority, Pennsylvania, 11/14 at 100.00 A 239,933 Revenue Bonds, Good Shepherd Group, Series 2004A, 5.500%, 11/01/24 1,025 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 984,410 Revenue Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/37 - AGC Insured 140 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 111,360 Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37 2,150 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 2,187,839 Revenue Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 25 Pottsville Hospital Authority, Pennsylvania, Hospital 7/09 at 100.00 BB- 17,650 Revenue Bonds, Pottsville Hospital and Warne Clinic, Series 1998, 5.625%, 7/01/24 215 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 113,251 Bonds, Guthrie Healthcare System, Series 2007, 2.713%, 12/01/31 - AMBAC Insured 1,000 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,015,880 Bonds, Monongahela Valley Hospital Project, Series 2002, 5.500%, 6/01/17 750 West Shore Area Hospital Authority, Cumberland County, 1/12 at 100.00 BBB 621,660 Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001, 6.250%, 1/01/32 - ------------------------------------------------------------------------------------------------------------------------------------ 10,205 Total Health Care 9,515,465 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.2% (0.8% OF TOTAL INVESTMENTS) 700 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 474,250 Revenue Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 - SYNCORA GTY Insured 100 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 69,252 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 800 Total Housing/Multifamily 543,502 - ------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 8.7% (5.8% OF TOTAL INVESTMENTS) $ 1,425 Allegheny County Residential Finance Authority, 5/09 at 102.00 Aaa $ 1,407,601 Pennsylvania, GNMA Mortgage-Backed Securities Program Single Family Mortgage Revenue Bonds, Series 1998DD-2, 5.400%, 11/01/29 (Alternative Minimum Tax) 450 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 454,514 Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006: 480 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ 451,656 500 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 445,295 700 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 645,176 430 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/16 at 100.00 AA+ 379,884 Revenue Bonds, Series 2007, 4.850%, 10/01/31 (Alternative Minimum Tax) (UB) - ------------------------------------------------------------------------------------------------------------------------------------ 3,985 Total Housing/Single Family 3,784,126 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 6.7% (4.5% OF TOTAL INVESTMENTS) 2,000 Pennsylvania Economic Development Financing Authority, 5/11 at 101.00 A2 1,567,620 Exempt Facilities Revenue Bonds, Amtrak Project, Series 2001A, 6.250%, 11/01/31 (Alternative Minimum Tax) 1,250 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 A 1,335,900 Development Revenue Bonds, Series 2002, 5.500%, 7/01/17 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 3,250 Total Industrials 2,903,520 - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 17.2% (11.5% OF TOTAL INVESTMENTS) Bucks County Industrial Development Authority, Pennsylvania, Revenue Bonds, Lutheran Community at Telford Center, Series 2007: 220 5.750%, 1/01/27 1/17 at 100.00 N/R 152,693 360 5.750%, 1/01/37 1/17 at 100.00 N/R 223,430 265 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 181,983 Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%, 1/01/36 200 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A 161,792 Center Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%, 11/01/36 2,100 Lancaster County Hospital Authority, Pennsylvania, Health 12/11 at 100.00 A- 1,991,808 Center Revenue Bonds, Willow Valley Retirement Communities Project, Series 2001, 5.875%, 6/01/31 185 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 152,669 Bonds, Brethren Village Project, Series 2008A, 6.375%, 7/01/30 785 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 520,471 Health Center Revenue Bonds, Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Northwestern Human Services Inc., Series 1998A: 1,240 5.250%, 6/01/14 6/09 at 100.00 BB+ 1,108,262 50 5.125%, 6/01/18 6/09 at 100.00 BB+ 38,764 Philadelphia Authority for Industrial Development, Pennsylvania, Revenue Bonds, Philadelphia Corporation for the Aging Project, Series 2001B: 670 5.250%, 7/01/23 - AMBAC Insured 7/11 at 101.00 A 609,613 2,875 5.250%, 7/01/31 - AMBAC Insured 7/11 at 101.00 A 2,373,887 - ------------------------------------------------------------------------------------------------------------------------------------ 8,950 Total Long-Term Care 7,515,372 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 3.7% (2.5% OF TOTAL INVESTMENTS) 350 Allegheny County Industrial Development Authority, No Opt. Call BB 321,192 Pennsylvania, Revenue Bonds, United States Steel Corporation, Series 2005, 5.500%, 11/01/16 210 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 157,208 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax)
Nuveen Investments 73 NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS (continued) $ 750 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ $ 745,508 Environmental Improvement Revenue Bonds, USX Corporation Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11) 750 Pennsylvania Economic Development Financing Authority, 5/09 at 102.00 N/R 391,658 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,060 Total Materials 1,615,566 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.2% (9.4% OF TOTAL INVESTMENTS) 300 Pennsylvania, General Obligation Bonds, First Series 2006, 10/16 at 100.00 AA 340,428 5.000%, 10/01/18 375 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 363,008 Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured 840 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 839,933 Improvement General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA Insured 3,000 Pittsburgh School District, Allegheny County, Pennsylvania, No Opt. Call AAA 3,442,019 General Obligation Refunding Bonds, Series 2002A, 5.500%, 9/01/14 - FSA Insured 2,220 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 577,955 Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured 600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 604,662 2006, 5.000%, 6/01/33 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 7,335 Total Tax Obligation/General 6,168,005 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 14.4% (9.6% OF TOTAL INVESTMENTS) 1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 743,230 Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23 450 Erie County Convention Center Authority, Pennsylvania, 1/15 at 100.00 AA- 440,231 Convention Center Revenue Bonds, Series 2005, 5.000%, 1/15/36 - FGIC Insured 425 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 429,824 Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured 1,000 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,133,410 Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured 1,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 1,072,880 Revenue Bonds, Series 2003B, 5.250%, 11/15/17 - FSA Insured 1,500 Philadelphia Redevelopment Authority, Pennsylvania, Revenue 4/12 at 100.00 AA- 1,535,700 Bonds, Philadelphia Neighborhood Transformation Initiative, Series 2002A, 5.500%, 4/15/19 - FGIC Insured 750 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AA- 677,760 Revenue Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured 630 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 111,888 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 145,880 Tanger Outlet Victory Center Tax Increment Bonds, Series 2006A, 5.450%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 7,005 Total Tax Obligation/Limited 6,290,803 - ------------------------------------------------------------------------------------------------------------------------------------
74 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.1% (8.0% OF TOTAL INVESTMENTS) $ 130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 $ 136,661 Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17 1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 811,530 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 420 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 434,666 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured 1,750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 AA- 1,601,530 Pennsylvania, Airport Revenue Bonds, Philadelphia Airport System Project, Series 2001A, 5.250%, 7/01/28 - FGIC Insured (Alternative Minimum Tax) 2,210 Pittsburgh and Allegheny County Sports and Exhibition 6/09 at 100.00 N/R 2,129,290 Authority, Pennsylvania, Parking Revenue Bonds, Series 2001A, 5.375%, 12/01/30 - AMBAC Insured 160 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- 137,626 Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,670 Total Transportation 5,251,303 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 13.5% (9.0% OF TOTAL INVESTMENTS) (4) 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,189,320 Retirement Community Revenue Bonds, Wesley Affiliated Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13) 1,105 Oxford Area School District, Chester County, Pennsylvania, 2/12 at 100.00 AA- (4) 1,232,130 General Obligation Bonds, Series 2001A, 5.500%, 2/15/17 (Pre-refunded 2/15/12) - FGIC Insured 1,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 1,150,880 Ordinance, Fourth Series 1998, 5.250%, 8/01/18 (Pre-refunded 8/01/13) - FSA Insured 150 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 186,560 Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) 1,700 Philadelphia School District, Pennsylvania, General 8/12 at 100.00 Aa3 (4) 1,928,446 Obligation Bonds, Series 2002B, 5.625%, 8/01/18 (Pre-refunded 8/01/12) - FGIC Insured 170 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 198,283 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14) - ------------------------------------------------------------------------------------------------------------------------------------ 5,125 Total U.S. Guaranteed 5,885,619 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 4.3% (2.9% OF TOTAL INVESTMENTS) 500 Allegheny County Industrial Development Authority, No Opt. Call Baa2 498,215 Pennsylvania, Pollution Control Revenue Refunding Bonds, Duquesne Light Company, Series 1999A, 4.350%, 12/01/13 - AMBAC Insured 285 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 264,540 Exempt Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax) 140 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 141,624 Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 1,105 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 961,847 Series, 2007, 5.000%, 10/01/37 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 2,030 Total Utilities 1,866,226 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 75 NXM | Nuveen Pennsylvania Dividend Advantage Municipal Fund (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.6% (1.7% OF TOTAL INVESTMENTS) $ 500 Bethlehem Authority, Northampton and Lehigh Counties, 11/14 at 100.00 AAA $ 518,835 Pennsylvania, Guaranteed Water Revenue Bonds, Series 2004, 5.000%, 11/15/20 - FSA Insured 600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 615,433 Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,100 Total Water and Sewer 1,134,268 - ------------------------------------------------------------------------------------------------------------------------------------ $ 71,660 Total Investments (cost $69,265,939) - 150.0% 65,381,039 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (2.9)% (1,270,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 4.5% 1,976,253 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.6)% (5) (22,500,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 43,587,292 ---------------------------------------------------------------------------------------------------------------------
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 34.4%. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1- Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 76 Nuveen Investments NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 19.0% (12.5% OF TOTAL INVESTMENTS) $ 1,000 Allegheny County Higher Education Building Authority, No Opt. Call Baa3 $ 810,050 Pennsylvania, College Revenue Refunding Bonds, Robert Morris College, Series 1998A, 6.000%, 5/01/28 800 Chester County Health and Education Facilities Authority, 10/15 at 102.00 N/R 577,328 Pennsylvania, Revenue Bonds, Immaculata University, Series 2005, 5.500%, 10/15/25 720 Chester County Industrial Development Authority, 12/17 at 100.00 BB+ 514,022 Pennsylvania, Avon Grove Charter School Revenue Bonds, Series 2007A, 6.375%, 12/15/37 325 Delaware County Authority, Pennsylvania, College Revenue 10/11 at 100.00 BBB 287,810 Refunding Bonds, Neumann College, Series 2001, 6.000%, 10/01/31 450 Delaware County Authority, Pennsylvania, General Revenue 10/16 at 100.00 BBB- 333,387 Bonds, Eastern University, Series 2006, 4.500%, 10/01/27 - RAAI Insured Delaware County Authority, Pennsylvania, Revenue Bonds, Villanova University, Series 2006: 340 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 BBB- 349,761 165 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 A 168,713 1,435 Delaware County Authority, Pennsylvania, Revenue Refunding 8/13 at 100.00 AA- 1,551,737 Bonds, Villanova University, Series 2003, 5.250%, 8/01/17 - FGIC Insured 180 Erie Higher Education Building Authority, Pennsylvania, 5/17 at 100.00 BBB+ 142,938 College Revenue Bonds, Gannon University, Series 2007-GG3, 5.000%, 5/01/32 - RAAI Insured 80 New Wilmington, Pennsylvania, Revenue, Westminster College, 5/17 at 100.00 BBB- 64,333 Series 2007G, 5.125%, 5/01/33 - RAAI Insured 1,050 Pennsylvania Higher Educational Facilities Authority, 6/18 at 100.00 Aa3 1,056,825 General Revenue Bonds, State System of Higher Education, Series 2008AH, 5.000%, 6/15/33 285 Pennsylvania Higher Educational Facilities Authority, 5/16 at 100.00 A- 246,038 Revenue Bonds, Allegheny College, Series 2006, 4.750%, 5/01/31 610 Pennsylvania Higher Educational Facilities Authority, 11/17 at 100.00 AA- 600,063 Revenue Bonds, Drexel University, Series 2007A, 5.000%, 5/01/37 - MBIA Insured 800 Pennsylvania Higher Educational Facilities Authority, 4/16 at 100.00 AA- 842,480 Revenue Bonds, Temple University, First Series of 2006, 5.000%, 4/01/21 - MBIA Insured 315 Philadelphia Authority for Industrial Development, 1/17 at 100.00 BBB 367,567 Pennsylvania, Revenue Bonds, Franklin Towne Charter High School, Series 2006A, 5.250%, 1/01/27 530 Philadelphia Authority for Industrial Development, 1/13 at 102.00 BB 316,765 Pennsylvania, Revenue Bonds, Leadership Learning Partners, Series 2005A, 5.375%, 7/01/36 270 Philadelphia Authority for Industrial Development, 5/16 at 100.00 BBB- 203,054 Pennsylvania, Revenue Bonds, Richard Allen Preparatory Charter School, Series 2006, 6.250%, 5/01/33 1,000 Union County, Higher Education Facilities Financing 4/13 at 100.00 Aa2 1,079,130 Authority, Pennsylvania, Revenue Bonds, Bucknell University, Series 2002A, 5.250%, 4/01/20 - ------------------------------------------------------------------------------------------------------------------------------------ 10,355 Total Education and Civic Organizations 9,512,001 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 77 NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 14.8% (9.8% OF TOTAL INVESTMENTS) $ 625 Allegheny County Hospital Development Authority, 4/15 at 100.00 Baa2 $ 428,231 Pennsylvania, Revenue Bonds, Ohio Valley General Hospital, Series 2005A, 5.125%, 4/01/35 735 Allentown Area Hospital Authority, Pennsylvania, Revenue No Opt. Call BB- 627,051 Bonds, Sacred Heart Hospital, Series 2005, 6.000%, 11/15/16 2,000 Chester County Health and Educational Facilities Authority, 5/09 at 100.50 AA- 1,991,940 Pennsylvania, Health System Revenue Bonds, Jefferson Health System, Series 1997B, 5.375%, 5/15/27 95 Erie County Hospital Authority, Pennsylvania, Revenue Bonds, 11/17 at 100.00 A- 72,624 Hamot Health Foundation, Series 2007, 5.000%, 11/01/37 - CIFG Insured 270 Fulton County, Pennsylvania, Industrial Development 7/16 at 100.00 N/R 168,564 Authority Hospital Revenue Bonds, Fulton County Medical Center Project, Series 2006, 5.900%, 7/01/40 740 Lehigh County General Purpose Authority, Pennsylvania, 7/18 at 100.00 AAA 689,865 Hospital Revenue Bonds, Lehigh Valley Health Network, Series 2008A, 5.000%, 7/01/33 - FSA Insured 1,155 Lehigh County General Purpose Authority, Pennsylvania, 11/17 at 100.00 AAA 1,109,262 Revenue Bonds, Good Shepherd Group, Series 2007, 5.000%, 11/01/37 - AGC Insured 160 Monroe County Hospital Authority, Pennsylvania, Hospital 1/17 at 100.00 A- 127,269 Revenue Bonds, Pocono Medical Center, Series 2007, 5.125%, 1/01/37 70 Pennsylvania Higher Educational Facilities Authority, 1/11 at 101.00 AA- 71,232 Revenue Bonds, UPMC Health System, Series 2001A, 6.000%, 1/15/31 245 Sayre Healthcare Facility Authority, Pennsylvania, Revenue 12/17 at 100.00 A 129,054 Bonds, Guthrie Healthcare System, Series 2007, 2.713%, 12/01/31 - AMBAC Insured 1,450 Washington County Hospital Authority, Pennsylvania, Revenue 6/12 at 101.00 A3 1,476,376 Bonds, Monongahela Valley Hospital Project, Series 2002, 6.250%, 6/01/22 West Shore Area Hospital Authority, Cumberland County, Pennsylvania, Hospital Revenue Bonds, Holy Spirit Hospital of the Sisters of Christian Charity Project, Series 2001: 25 6.150%, 1/01/21 1/12 at 100.00 BBB 23,284 600 6.250%, 1/01/32 1/12 at 100.00 BBB 497,328 - ------------------------------------------------------------------------------------------------------------------------------------ 8,170 Total Health Care 7,412,080 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 1.3% (0.8% OF TOTAL INVESTMENTS) 800 Pennsylvania Higher Educational Facilities Authority, 7/15 at 100.00 BBB- 542,000 Revenue Bonds, Slippery Rock University Foundation Inc., Student Housing Project, Series 2005A, 5.000%, 7/01/37 - SYNCORA GTY Insured 120 Philadelphia Authority for Industrial Development, 5/15 at 102.00 Baa2 83,102 Pennsylvania, Multifamily Housing Revenue Bonds, Presbyterian Homes Germantown - Morrisville Project, Series 2005A, 5.625%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 920 Total Housing/Multifamily 625,102 - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY - 7.2% (4.7% OF TOTAL INVESTMENTS) 250 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 222,648 Revenue Bonds, Series 1995A, 4.900%, 10/01/37 (Alternative Minimum Tax) 275 Pennsylvania Housing Finance Agency, Single Family Mortgage 4/15 at 100.00 AA+ 258,761 Revenue Bonds, Series 2006-93A, 4.950%, 10/01/26 (Alternative Minimum Tax) 400 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/15 at 100.00 AA+ 368,672 Revenue Bonds, Series 2006-94A, 5.150%, 10/01/37 (Alternative Minimum Tax) 500 Pennsylvania Housing Finance Agency, Single Family Mortgage 10/17 at 100.00 AA+ 505,015 Revenue Bonds, Series 2008-103-C, 5.450%, 10/01/38
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/SINGLE FAMILY (continued) Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2006: $ 275 4.950%, 10/01/26 (Alternative Minimum Tax) (UB) 4/15 at 100.00 AA+ $ 258,761 250 4.900%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 222,648 400 5.150%, 10/01/37 (Alternative Minimum Tax) (UB) 10/15 at 100.00 AA+ 368,672 Pennsylvania Housing Finance Agency, Single Family Mortgage Revenue Bonds, Series 2007: 1,100 4.600%, 10/01/27 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 958,969 480 4.850%, 10/01/31 (Alternative Minimum Tax) (UB) 10/16 at 100.00 AA+ 424,056 - ------------------------------------------------------------------------------------------------------------------------------------ 3,930 Total Housing/Single Family 3,588,202 - ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 6.3% (4.2% OF TOTAL INVESTMENTS) 3,000 Pennsylvania Industrial Development Authority, Economic 7/12 at 101.00 A 3,166,350 Development Revenue Bonds, Series 2002, 5.500%, 7/01/19 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 6.6% (4.4% OF TOTAL INVESTMENTS) Bucks County Industrial Development Authority, Pennsylvania, Revenue Bonds, Lutheran Community at Telford Center, Series 2007: 250 5.750%, 1/01/27 1/17 at 100.00 N/R 173,515 400 5.750%, 1/01/37 1/17 at 100.00 N/R 248,256 300 Cumberland County Municipal Authority, Pennsylvania, Revenue 1/17 at 100.00 N/R 206,019 Bonds, Diakon Lutheran Social Ministries, Series 2007, 5.000%, 1/01/36 205 Lancaster County Hospital Authority, Pennsylvania, Health 11/16 at 100.00 A 165,837 Center Revenue Bonds, Masonic Homes Project, Series 2006, 5.000%, 11/01/36 185 Lancaster County Hospital Authority, Pennsylvania, Revenue 7/17 at 100.00 N/R 152,669 Bonds, Brethren Village Project, Series 2008A, 6.375%, 7/01/30 785 Lebanon County Health Facilities Authority, Pennsylvania, 12/14 at 100.00 N/R 520,471 Health Center Revenue Bonds, Pleasant View Retirement Community, Series 2005A, 5.300%, 12/15/26 Pennsylvania Economic Development Financing Authority, Revenue Bonds, Northwestern Human Services Inc., Series 1998A: 1,260 5.250%, 6/01/14 6/09 at 100.00 BB+ 1,126,138 50 5.125%, 6/01/18 6/09 at 100.00 BB+ 38,764 750 Philadelphia Authority for Industrial Development, 7/11 at 101.00 A 682,403 Pennsylvania, Revenue Bonds, Philadelphia Corporation for the Aging Project, Series 2001B, 5.250%, 7/01/23 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 4,185 Total Long-Term Care 3,314,072 - ------------------------------------------------------------------------------------------------------------------------------------ MATERIALS - 3.9% (2.6% OF TOTAL INVESTMENTS) 400 Allegheny County Industrial Development Authority, No Opt. Call BB 367,076 Pennsylvania, Revenue Bonds, United States Steel Corporation, Series 2005, 5.500%, 11/01/16 280 Bradford County Industrial Development Authority, 12/15 at 100.00 BBB 209,611 Pennsylvania, Solid Waste Disposal Revenue Bonds, International Paper Company, Series 2005B, 5.200%, 12/01/19 (Alternative Minimum Tax) 1,000 Bucks County Industrial Development Authority, Pennsylvania, No Opt. Call BBB+ 994,010 Environmental Improvement Revenue Bonds, USX Corporation Project, Series 1995, 5.400%, 11/01/17 (Mandatory put 11/01/11) 750 Pennsylvania Economic Development Financing Authority, 5/09 at 102.00 N/R 391,658 Exempt Facilities Revenue Bonds, National Gypsum Company, Series 1997B, 6.125%, 11/01/27 (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,430 Total Materials 1,962,355 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 21.6% (14.2% OF TOTAL INVESTMENTS) 1,740 Butler County, Pennsylvania, Butler Area School District, 10/12 at 100.00 AA- 1,757,487 General Obligation Bonds, Series 2002A, 5.375%, 10/01/26 - FGIC Insured 4,000 Delaware Valley Regional Finance Authority, Pennsylvania, No Opt. Call Aa2 4,344,080 Local Government Revenue Bonds, Series 2002, 5.750%, 7/01/17 (UB)
Nuveen Investments 79 NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Greensburg Salem School District, Westmoreland County, Pennsylvania, General Obligation Refunding Bonds, Series 2002: $ 725 5.375%, 9/15/15 - FGIC Insured 9/12 at 100.00 AA- $ 795,021 1,000 5.375%, 9/15/16 - FGIC Insured 9/12 at 100.00 AA- 1,096,580 375 Philadelphia School District, Pennsylvania, General No Opt. Call AA- 363,008 Obligation Bonds, Series 2007A, 5.000%, 6/01/34 - FGIC Insured 950 Pine-Richland School District, Pennsylvania, School 7/15 at 100.00 AAA 949,924 Improvement General Obligation Bonds, Series 2005, 5.000%, 7/15/35 - FSA Insured 225 Pittsburgh, Pennsylvania, General Obligation Bonds, Series No Opt. Call AAA 247,824 2006B, 5.250%, 9/01/16 - FSA Insured 2,510 Reading School District, Berks County, Pennsylvania, General No Opt. Call AA- 653,453 Obligation Bonds, Series 2003B, 0.000%, 1/15/32 - FGIC Insured 600 York County, Pennsylvania, General Obligation Bonds, Series 12/15 at 100.00 AA 604,662 2006, 5.000%, 6/01/33 - MBIA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 12,125 Total Tax Obligation/General 10,812,039 - ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 23.9% (15.7% OF TOTAL INVESTMENTS) 1,000 Allegheny County Redevelopment Authority, Pennsylvania, TIF No Opt. Call N/R 743,230 Revenue Bonds, Pittsburg Mills Project, Series 2004, 5.600%, 7/01/23 2,000 Grove City Area Hospital Authority, Mercer County, 3/12 at 100.00 AA- 1,575,980 Pennsylvania, Revenue Bonds, County Guaranteed, Woodland Place Project, Series 2002, 5.400%, 3/01/31 - FGIC Insured 4,000 Harrisburg Parking Authority, Pennsylvania, Guaranteed 9/11 at 100.00 Baa1 4,004,960 Revenue Refunding Bonds, Series 2001J, 5.000%, 9/01/22 - MBIA Insured 485 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/18 at 100.00 AA 490,505 Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/32 - MBIA Insured 1,200 Pennsylvania Turnpike Commission, Registration Fee Revenue No Opt. Call AAA 1,360,092 Bonds, Series 2005A, 5.250%, 7/15/18 - FSA Insured Philadelphia Redevelopment Authority, Pennsylvania, Revenue Bonds, Philadelphia Neighborhood Transformation Initiative, Series 2002A: 1,000 5.500%, 4/15/18 - FGIC Insured 4/12 at 100.00 AA- 1,028,500 1,750 5.500%, 4/15/22 - FGIC Insured 4/12 at 100.00 AA- 1,770,388 800 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AA- 722,944 Revenue Bonds, Series 2007N, 5.250%, 7/01/33 - MBIA Insured 710 Puerto Rico Infrastructure Financing Authority, Special Tax No Opt. Call BBB+ 126,096 Revenue Bonds, Series 2005A, 0.000%, 7/01/32 - FGIC Insured 250 Washington County Redevelopment Authority, Pennsylvania, 7/17 at 100.00 N/R 145,880 Tanger Outlet Victory Center Tax Increment Bonds, Series 2006A, 5.450%, 7/01/35 - ------------------------------------------------------------------------------------------------------------------------------------ 13,195 Total Tax Obligation/Limited 11,968,575 - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 5.4% (3.5% OF TOTAL INVESTMENTS) 130 Delaware River Joint Toll Bridge Commission, New Jersey and 7/13 at 100.00 A2 136,661 Pennsylvania, Revenue Bonds, Series 2003, 5.250%, 7/01/17 1,000 Pennsylvania Economic Development Financing Authority, 6/12 at 102.00 BBB+ 811,530 Revenue Bonds, Amtrak 30th Street Station Parking Garage, Series 2002, 5.875%, 6/01/33 - ACA Insured (Alternative Minimum Tax) 670 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 693,396 Series 2006A, 5.000%, 12/01/24 - AMBAC Insured
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 180 Scranton Parking Authority, Pennsylvania, Guaranteed Parking 9/13 at 100.00 AA- $ 154,829 Revenue Bonds, Series 2004, 5.000%, 9/15/33 - FGIC Insured 1,000 Susquehanna Area Regional Airport Authority, Pennsylvania, 1/13 at 100.00 Baa3 879,330 Airport System Revenue Bonds, Series 2003A, 5.000%, 1/01/28 - AMBAC Insured (Alternative Minimum Tax) - ------------------------------------------------------------------------------------------------------------------------------------ 2,980 Total Transportation 2,675,746 - ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 29.3% (19.3% OF TOTAL INVESTMENTS) (4) 2,000 Adams County, Pennsylvania, General Obligation Bonds, Series 5/11 at 100.00 N/R (4) 2,180,200 2001, 5.500%, 11/15/26 (Pre-refunded 5/15/11) - FGIC Insured 100 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 114,584 Pennsylvania, Revenue Bonds, West Penn Allegheny Health System, Series 2000B, 9.250%, 11/15/22 (Pre-refunded 11/15/10) 1,155 Bucks County Industrial Development Authority, Pennsylvania, 10/12 at 101.00 N/R (4) 1,340,043 Revenue Bonds, Pennswood Village Project, Series 2002A, 6.000%, 10/01/34 (Pre-refunded 10/01/12) 1,000 Cumberland County Municipal Authority, Pennsylvania, 1/13 at 101.00 N/R (4) 1,189,320 Retirement Community Revenue Bonds, Wesley Affiliated Services Inc., Series 2002A, 7.125%, 1/01/25 (Pre-refunded 1/01/13) 1,100 Luzerne County, Pennsylvania, General Obligation Bonds, 11/12 at 57.97 N/R (4) 597,245 Series 2002B, 0.000%, 11/15/21 (Pre-refunded 11/15/12) - MBIA Insured 2,945 Pennsylvania Turnpike Commission, Registration Fee Revenue 7/11 at 101.00 A1 (4) 3,245,154 Bonds, Series 2001, 5.500%, 7/15/33 (Pre-refunded 7/15/11) - AMBAC Insured 1,000 Philadelphia Authority for Industrial Development, 10/11 at 101.00 AAA 1,102,650 Pennsylvania, Lease Revenue Bonds, Series 2001B, 5.125%, 10/01/26 (Pre-refunded 10/01/11) - FSA Insured 2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,301,760 Ordinance, Fourth Series 1998, 5.250%, 8/01/20 (Pre-refunded 8/01/13) - FSA Insured 60 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Twelfth No Opt. Call Aaa 74,624 Series 1990B, 7.000%, 5/15/20 - MBIA Insured (ETM) 2,000 Philadelphia School District, Pennsylvania, General 2/12 at 100.00 AAA 2,222,640 Obligation Bonds, Series 2002A, 5.500%, 2/01/31 (Pre-refunded 2/01/12) - FSA Insured 225 St. Mary Hospital Authority, Pennsylvania, Health System 11/14 at 100.00 A1 (4) 262,433 Revenue Bonds, Catholic Health East, Series 2004B, 5.375%, 11/15/34 (Pre-refunded 11/15/14) - ------------------------------------------------------------------------------------------------------------------------------------ 13,585 Total U.S. Guaranteed 14,630,653 - ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 3.0% (2.0% OF TOTAL INVESTMENTS) 315 Pennsylvania Economic Development Financing Authority, 12/09 at 103.00 Ba3 292,386 Exempt Facilities Revenue Bonds, Reliant Energy Inc., Series 2003A, 6.750%, 12/01/36 (Alternative Minimum Tax) 145 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 9/14 at 100.00 AAA 146,682 Ordinance, Fifth Series 2004A-1, 5.000%, 9/01/26 - FSA Insured 1,240 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, Seventh 10/17 at 100.00 A 1,079,358 Series, 2007, 5.000%, 10/01/37 - AMBAC Insured - ------------------------------------------------------------------------------------------------------------------------------------ 1,700 Total Utilities 1,518,426 - ------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 81 NVY | Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (continued) | Portfolio of INVESTMENTS April 30, 2009
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.6% (6.3% OF TOTAL INVESTMENTS) $ 4,500 Bucks County Industrial Development Authority, Pennsylvania, 3/12 at 100.00 AA- $ 4,162,136 Water Facility Revenue Bonds, Pennsylvania Suburban Water Company, Series 2002, 5.550%, 9/01/32 - FGIC Insured (Alternative Minimum Tax) 600 Harrisburg Authority, Dauphin County, Pennsylvania, Water 7/14 at 100.00 AAA 615,432 Revenue Refunding Bonds, Series 2004, 5.000%, 7/15/22 - FSA Insured - ------------------------------------------------------------------------------------------------------------------------------------ 5,100 Total Water and Sewer 4,777,568 - ------------------------------------------------------------------------------------------------------------------------------------ $ 81,675 Total Investments (cost $78,920,903) - 151.9% 75,963,169 ============------------------------------------------------------------------------------------------------------------------------ Floating Rate Obligations - (9.0)% (4,500,000) --------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.1% 1,529,825 --------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (46.0)% (5) (23,000,000) --------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 49,992,994 =====================================================================================================================
(1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. The Portfolio of Investments may reflect the ratings on certain bonds whose insurer has experienced downgrades as of the end of the reporting period. Please see the Portfolio Manager's Commentary for an expanded discussion of the affect on the Fund of changes to the ratings of certain bonds in the portfolio resulting from changes to the ratings of the underlying insurers both during the period and after period end. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (5) Preferred Shares, at Liquidation Value as a percentage of Total Investments is 30.3%. N/R Not rated. (ETM) Escrowed to maturity. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See Notes to Financial Statements, Footnote 1- Inverse Floating Rate Securities for more information. See accompanying notes to financial statements. 82 Nuveen Investments | Statement of ASSETS & LIABILITIES April 30, 2009
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - -------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $432,059,118, $255,546,427, $136,432,591 and $95,759,793, respectively) $ 407,861,589 $ 248,842,173 $ 127,894,233 $ 89,632,547 Cash 2,187,911 5,998,086 2,592,821 178,943 Receivables: Interest 6,988,219 3,879,277 2,190,145 1,545,184 Investments sold -- -- -- -- Other assets 81,448 72,854 11,952 8,618 - -------------------------------------------------------------------------------------------------------------------------- Total assets 417,119,167 258,792,390 132,689,151 91,365,292 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations -- -- -- -- Payables: Common share dividends 963,644 528,825 341,929 248,614 Preferred share dividends 49,389 13,477 2,042 708 Accrued expenses: Management fees 215,309 135,289 59,021 37,007 Other 138,286 86,906 31,006 23,121 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 1,366,628 764,497 433,998 309,450 - -------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 149,825,000 91,600,000 47,025,000 32,600,000 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 265,927,539 $ 166,427,893 $ 85,230,153 $ 58,455,842 ========================================================================================================================== Common shares outstanding 20,453,722 12,036,596 6,569,912 4,520,321 ========================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.00 $ 13.83 $ 12.97 $ 12.93 ========================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - -------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 204,537 $ 120,366 $ 65,699 $ 45,203 Paid-in surplus 288,713,495 171,875,082 93,319,807 64,128,513 Undistributed (Over-distribution of) net investment income 1,341,160 896,324 383,005 336,683 Accumulated net realized gain (loss) from investments and derivative transactions (134,124) 240,375 -- 72,689 Net unrealized appreciation (depreciation) of investments (24,197,529) (6,704,254) (8,538,358) (6,127,246) - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 265,927,539 $ 166,427,893 $ 85,230,153 $ 58,455,842 ========================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 Unlimited Unlimited Preferred 1,000,000 1,000,000 Unlimited Unlimited ==========================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 83 | Statement of ASSETS & LIABILITIES (continued) April 30, 2009
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - -------------------------------------------------------------------------------------------------------------------------- ASSETS Investments, at value (cost $356,718,588, $307,032,759, $69,265,939 and $78,920,903, respectively) $ 349,034,727 $ 295,392,004 $ 65,381,039 $ 75,963,169 Cash 1,263,741 4,297,796 971,471 622,626 Receivables: Interest 5,756,775 5,452,033 1,187,013 1,145,834 Investments sold 1,930,000 895,000 40,000 5,000 Other assets 74,121 63,851 6,276 27,152 - -------------------------------------------------------------------------------------------------------------------------- Total assets 358,059,364 306,100,684 67,585,799 77,763,781 - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES Floating rate obligations 26,855,000 7,025,000 1,270,000 4,500,000 Payables: Common share dividends 799,192 776,858 181,265 216,483 Preferred share dividends 8,343 10,998 977 1,498 Accrued expenses: Management fees 174,011 157,687 29,944 30,938 Other 119,905 116,634 16,321 21,868 - -------------------------------------------------------------------------------------------------------------------------- Total liabilities 27,956,451 8,087,177 1,498,507 4,770,787 - -------------------------------------------------------------------------------------------------------------------------- Preferred shares, at liquidation value 111,750,000 99,275,000 22,500,000 23,000,000 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 218,352,913 $ 198,738,507 $ 43,587,292 $ 49,992,994 ========================================================================================================================== Common shares outstanding 16,134,098 15,618,851 3,330,584 3,725,809 ========================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 13.53 $ 12.72 $ 13.09 $ 13.42 ========================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: - -------------------------------------------------------------------------------------------------------------------------- Common shares, $.01 par value per share $ 161,341 $ 156,189 $ 33,306 $ 37,258 Paid-in surplus 228,592,566 213,988,850 47,287,047 52,810,121 Undistributed (Over-distribution of) net investment income 995,879 1,640,390 262,184 330,715 Accumulated net realized gain (loss) from investments and derivative transactions (3,713,012) (5,406,167) (110,345) (227,366) Net unrealized appreciation (depreciation) of investments (7,683,861) (11,640,755) (3,884,900) (2,957,734) - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares $ 218,352,913 $ 198,738,507 $ 43,587,292 $ 49,992,994 ========================================================================================================================== Authorized shares: Common Unlimited Unlimited Unlimited Unlimited Preferred Unlimited Unlimited Unlimited Unlimited ==========================================================================================================================
See accompanying notes to financial statements. 84 Nuveen Investments | Statement of OPERATIONS Year Ended April 30, 2009
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 22,025,902 $ 12,739,315 $ 6,854,320 $ 4,881,958 - -------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 2,689,145 1,635,299 856,166 598,621 Preferred shares - auction fees 397,609 229,001 119,426 85,053 Preferred shares - dividend disbursing agent fees 29,986 29,982 10,000 10,000 Shareholders' servicing agent fees and expenses 33,445 20,186 1,637 1,673 Interest expense on floating rate obligations -- -- -- -- Custodian's fees and expenses 71,955 52,713 28,556 24,412 Directors'/Trustees' fees and expenses 12,517 7,790 3,961 2,766 Professional fees 41,974 28,912 18,432 15,369 Shareholders' reports - printing and mailing expenses 73,648 48,346 27,339 21,547 Stock exchange listing fees 9,203 9,203 929 639 Investor relations expense 47,761 28,963 14,884 10,729 Other expenses 34,528 21,765 17,510 15,945 - -------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 3,441,771 2,112,160 1,098,840 786,754 Custodian fee credit (39,484) (29,984) (11,342) (8,901) Expense reimbursement -- -- (194,331) (182,249) - -------------------------------------------------------------------------------------------------------------------------- Net expenses 3,402,287 2,082,176 893,167 595,604 - -------------------------------------------------------------------------------------------------------------------------- Net investment income 18,623,615 10,657,139 5,961,153 4,286,354 - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (155,945) (101,953) 166,737 69,453 Futures -- 338,253 -- -- Change in net unrealized appreciation (depreciation) of investments (24,866,144) (9,620,671) (8,483,580) (6,423,352) - -------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (25,022,089) (9,384,371) (8,316,843) (6,353,899) - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (3,606,751) (2,047,311) (1,074,755) (791,185) From accumulated net realized gains (715,741) (385,419) (182,420) (107,762) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (4,322,492) (2,432,730) (1,257,175) (898,947) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (10,720,966) $ (1,159,962) $ (3,612,865) $ (2,966,492) ==========================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 85 | Statement of OPERATIONS (continued) Year Ended April 30, 2009
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - -------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME $ 18,723,176 $ 16,938,933 $ 3,733,269 $ 4,201,163 - -------------------------------------------------------------------------------------------------------------------------- EXPENSES Management fees 2,167,214 1,972,586 440,554 501,624 Preferred shares - auction fees 320,562 287,578 61,686 70,347 Preferred shares - dividend disbursing agent fees 29,970 29,986 10,000 10,000 Shareholders' servicing agent fees and expenses 35,762 31,254 1,873 1,650 Interest expense on floating rate obligations 400,043 93,002 1,741 6,158 Custodian's fees and expenses 70,951 64,252 24,262 29,726 Directors'/Trustees' fees and expenses 10,257 8,106 2,065 2,351 Professional fees 33,011 31,870 13,598 14,300 Shareholders' reports - printing and mailing expenses 69,660 65,037 17,984 20,450 Stock exchange listing fees 9,203 9,203 471 526 Investor relations expense 41,052 37,954 8,459 9,910 Other expenses 29,987 22,299 15,746 16,062 - -------------------------------------------------------------------------------------------------------------------------- Total expenses before custodian fee credit and expense reimbursement 3,217,672 2,653,127 598,439 683,104 Custodian fee credit (17,685) (33,302) (4,081) (785) Expense reimbursement -- -- (99,917) (152,715) - -------------------------------------------------------------------------------------------------------------------------- Net expenses 3,199,987 2,619,825 494,441 529,604 - -------------------------------------------------------------------------------------------------------------------------- Net investment income 15,523,189 14,319,108 3,238,828 3,671,559 - -------------------------------------------------------------------------------------------------------------------------- REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from: Investments (776,556) (3,905,819) 4,996 (378,076) Futures -- -- -- 149,827 Change in net unrealized appreciation (depreciation) of investments (14,413,994) (13,707,278) (4,915,187) (4,109,958) - -------------------------------------------------------------------------------------------------------------------------- Net realized and unrealized gain (loss) (15,190,550) (17,613,097) (4,910,191) (4,338,207) - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (3,239,309) (2,916,528) (612,503) (701,178) From accumulated net realized gains -- -- -- (5,495) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (3,239,309) (2,916,528) (612,503) (706,673) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations $ (2,906,670) $ (6,210,517) $ (2,283,866) $ (1,373,321) ==========================================================================================================================
See accompanying notes to financial statements. 86 Nuveen Investments | Statement of CHANGES in NET ASSETS
NEW JERSEY NEW JERSEY INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) ------------------------------ ------------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 18,623,615 $ 18,787,832 $ 10,657,139 $ 10,807,974 Net realized gain (loss) from: Investments (155,945) 1,697,124 (101,953) 1,002,315 Forward swaps -- 1,271,098 -- 560,840 Futures -- -- 338,253 -- Change in net unrealized appreciation (depreciation) of: Investments (24,866,144) (16,370,030) (9,620,671) (7,924,293) Forward swaps -- (2,853) -- (984) Distributions to Preferred Shareholders: From net investment income (3,606,751) (5,356,071) (2,047,311) (3,012,048) From accumulated net realized gains (715,741) (225,437) (385,419) (175,613) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (10,720,966) (198,337) (1,159,962) 1,258,191 - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (13,393,416) (13,396,750) (7,626,004) (7,926,161) From accumulated net realized gains (1,835,395) (612,481) (1,016,977) (497,644) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (15,228,811) (14,009,231) (8,642,981) (8,423,805) - -------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- Repurchased (317,035) -- (143,059) -- - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (317,035) -- (143,059) -- - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (26,266,812) (14,207,568) (9,946,002) (7,165,614) Net assets applicable to Common shares at the beginning of year 292,194,351 306,401,919 176,373,895 183,539,509 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 265,927,539 $ 292,194,351 $ 166,427,893 $ 176,373,895 ========================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 1,341,160 $ (281,426) $ 896,324 $ (87,500) ==========================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 87 | Statement of CHANGES in NET ASSETS (continued)
NEW JERSEY NEW JERSEY DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ) ------------------------------ ------------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 5,961,153 $ 6,154,007 $ 4,286,354 $ 4,379,414 Net realized gain (loss) from: Investments 166,737 222,219 69,453 667,227 Forward swaps -- 372,082 -- 194,404 Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (8,483,580) (5,887,711) (6,423,352) (4,419,598) Forward swaps -- (590) -- (295) Distributions to Preferred Shareholders: From net investment income (1,074,755) (1,639,115) (791,185) (1,046,557) From accumulated net realized gains (182,420) (53,203) (107,762) (214,756) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (3,612,865) (832,311) (2,966,492) (440,161) - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (4,340,103) (4,465,787) (3,120,632) (3,231,672) From accumulated net realized gains (505,780) (176,924) (331,997) (685,253) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (4,845,883) (4,642,711) (3,452,629) (3,916,925) - -------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 34,444 -- 23,495 Repurchased (73,131) -- (29,212) -- - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (73,131) 34,444 (29,212) 23,495 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (8,531,879) (5,440,578) (6,448,333) (4,333,591) Net assets applicable to Common shares at the beginning of year 93,762,032 99,202,610 64,904,175 69,237,766 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 85,230,153 $ 93,762,032 $ 58,455,842 $ 64,904,175 ========================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 383,005 $ (123,595) $ 336,683 $ (30,843) ==========================================================================================================================
See accompanying notes to financial statements. 88 Nuveen Investments
PENNSYLVANIA INVESTMENT PENNSYLVANIA PREMIUM QUALITY (NQP) INCOME 2 (NPY) ------------------------------ ------------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 15,523,189 $ 15,437,317 $ 14,319,108 $ 14,156,508 Net realized gain (loss) from: Investments (776,556) (700,898) (3,905,819) (976,106) Forward swaps -- (1,940,455) -- (524,955) Futures -- -- -- -- Change in net unrealized appreciation (depreciation) of: Investments (14,413,994) (11,038,711) (13,707,278) (13,138,981) Forward swaps -- 340,646 -- (181,467) Distributions to Preferred Shareholders: From net investment income (3,239,309) (4,735,546) (2,916,528) (4,100,251) From accumulated net realized gains -- -- -- (267,657) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (2,906,670) (2,637,647) (6,210,517) (5,032,909) - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (10,970,472) (10,625,493) (9,783,604) (9,656,362) From accumulated net realized gains -- -- -- (688,161) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (10,970,472) (10,625,493) (9,783,604) (10,344,523) - -------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- Repurchased (297,461) (1,853,014) (519,640) (2,020,258) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (297,461) (1,853,014) (519,640) (2,020,258) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (14,174,603) (15,116,154) (16,513,761) (17,397,690) Net assets applicable to Common shares at the beginning of year 232,527,516 247,643,670 215,252,268 232,649,958 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 218,352,913 $ 232,527,516 $ 198,738,507 $ 215,252,268 ========================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 995,879 $ (317,352) $ 1,640,390 $ 22,143 ==========================================================================================================================
See accompanying notes to financial statements. Nuveen Investments 89 | Statement of CHANGES in NET ASSETS (continued)
PENNSYLVANIA DIVIDEND PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) ADVANTAGE 2 (NVY) ------------------------------ ------------------------------ YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - -------------------------------------------------------------------------------------------------------------------------- OPERATIONS Net investment income $ 3,238,828 $ 3,248,492 $ 3,671,559 $ 3,696,558 Net realized gain (loss) from: Investments 4,996 20,306 (378,076) 74,310 Forward swaps -- -- -- -- Futures -- -- 149,827 -- Change in net unrealized appreciation (depreciation) of: Investments (4,915,187) (2,827,071) (4,109,958) (3,075,387) Forward swaps -- -- -- -- Distributions to Preferred Shareholders: From net investment income (612,503) (849,664) (701,178) (970,796) From accumulated net realized gains -- (54,170) (5,495) (61,834) - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from operations (2,283,866) (462,107) (1,373,321) (337,149) - -------------------------------------------------------------------------------------------------------------------------- DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (2,319,245) (2,342,752) (2,615,518) (2,635,991) From accumulated net realized gains -- (171,961) (14,903) (181,447) - -------------------------------------------------------------------------------------------------------------------------- Decrease in net assets applicable to Common shares from distributions to Common shareholders (2,319,245) (2,514,713) (2,630,421) (2,817,438) - -------------------------------------------------------------------------------------------------------------------------- CAPITAL SHARE TRANSACTIONS Common shares: Net proceeds from shares issued to shareholders due to reinvestment of distributions -- 28,147 -- 9,543 Repurchased (21,028) -- -- -- - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares from capital share transactions (21,028) 28,147 -- 9,543 - -------------------------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets applicable to Common shares (4,624,139) (2,948,673) (4,003,742) (3,145,044) Net assets applicable to Common shares at the beginning of year 48,211,431 51,160,104 53,996,736 57,141,780 - -------------------------------------------------------------------------------------------------------------------------- Net assets applicable to Common shares at the end of year $ 43,587,292 $ 48,211,431 $ 49,992,994 $ 53,996,736 ========================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 262,184 $ (44,697) $ 330,715 $ (24,148) ==========================================================================================================================
See accompanying notes to financial statements. 90 Nuveen Investments | Statement of CASH FLOWS Year Ended April 30, 2009
PENNSYLVANIA INVESTMENT QUALITY (NQP) - --------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ (2,906,670) Adjustments to reconcile the net increase (decrease) in net assets applicable to Common shares from operations to net cash provided by (used in) operating activities: Purchases of investments (12,352,581) Proceeds from sales and maturities of investments 30,180,197 Amortization (Accretion) of premiums and discounts, net 295,589 (Increase) Decrease in receivable for interest (9,881) (Increase) Decrease in receivable for investments sold (1,225,000) (Increase) Decrease in other assets (28,041) Increase (Decrease) in payable for investments purchased (3,189,220) Increase (Decrease) in payable for Preferred share dividends (63,614) Increase (Decrease) in accrued management fees (12,167) Increase (Decrease) in accrued other liabilities 14,679 Net realized (gain) loss from investments 776,556 Change in net unrealized (appreciation) depreciation of investments 14,413,994 - --------------------------------------------------------------------------------------------------- Net cash provided by (used in) operating activities 25,893,841 - --------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Increase (Decrease) in floating rate obligations 5,185,000 Cash distributions paid to Common shareholders (10,915,988) Cost of Common shares repurchased (297,461) Increase (Decrease) in Preferred shares, at liquidation value (20,250,000) - --------------------------------------------------------------------------------------------------- Net cash provided by (used in) financing activities (26,278,449) - --------------------------------------------------------------------------------------------------- NET INCREASE (DECREASE) IN CASH (384,608) Cash at the beginning of year 1,648,349 - --------------------------------------------------------------------------------------------------- CASH AT THE END OF YEAR $ 1,263,741 =================================================================================================== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid by Pennsylvania Investment Qualify (NQP) for interest was $400,043.
See accompanying notes to financial statements. Nuveen Investments 91 | Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The state funds covered in this report and their corresponding Common share stock exchange symbols are Nuveen New Jersey Investment Quality Municipal Fund, Inc. (NQJ), Nuveen New Jersey Premium Income Municipal Fund, Inc. (NNJ), Nuveen New Jersey Dividend Advantage Municipal Fund (NXJ), Nuveen New Jersey Dividend Advantage Municipal Fund 2 (NUJ), Nuveen Pennsylvania Investment Quality Municipal Fund (NQP), Nuveen Pennsylvania Premium Income Municipal Fund 2 (NPY), Nuveen Pennsylvania Dividend Advantage Municipal Fund (NXM) and Nuveen Pennsylvania Dividend Advantage Municipal Fund 2 (NVY) (collectively, the "Funds"). Common shares of New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) are traded on the New York Stock Exchange while Common shares of New Jersey Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) are traded on the NYSE Amex (formerly, American Stock Exchange). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and designated state income taxes by investing primarily in a portfolio of municipal obligations issued by state and local government authorities within a single state or certain U.S. territories. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with US generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. Prices of forward swap contracts are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. Futures contracts are valued using the closing settlement price, or, in the absence of such a price, at the mean of the bid and asked prices. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service or, in the absence of a pricing service for a particular investment or derivative instrument, the Board of Directors/Trustees of the Fund, or its designee, may establish fair value using a wide variety of market data including yields or prices of investments of comparable quality, type of issue, coupon, maturity and rating, market quotes or indications of value from security dealers, evaluations of anticipated cash flows or collateral, general market conditions and other information and analysis, including the obligor's credit characteristics considered relevant. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued/delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued/delayed delivery purchase commitments. At April 30, 2009, there were no such outstanding purchase commitments in any of the Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 92 Nuveen Investments Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and designated state income taxes, to retain such tax-exempt status when distributed to shareholders of the Funds. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. For all open tax years and all major taxing jurisdictions, management of the Funds has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. Open tax years are those that are open for examination by taxing authorities (i.e., generally the last four tax year ends and the interim tax period since then). Furthermore, management of the Funds is also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders at least annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from US generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. As of April 30, 2009, the number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------- Number of shares: Series M 2,960 -- -- -- Series T -- 624 1,881 -- Series W -- 1,440 -- 1,304 Series TH 1,850 1,600 -- -- Series F 1,183 -- -- -- - ------------------------------------------------------------------------------------------- Total 5,993 3,664 1,881 1,304 ===========================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------- Number of shares: Series M -- 710 -- 920 Series T 744 -- 900 -- Series W 2,033 -- -- -- Series TH 1,693 1,748 -- -- Series F -- 1,513 -- -- - ------------------------------------------------------------------------------------------- Total 4,470 3,971 900 920 ===========================================================================================
Beginning in February 2008, more shares for sale were submitted in the regularly scheduled auctions for the Preferred shares issued by the Funds than there were offers to buy. This meant that these auctions "failed to clear," and that many Preferred shareholders who wanted to sell their shares in these auctions were unable to do so. Preferred shareholders unable to sell their shares received distributions at the "maximum rate" applicable to failed auctions as calculated in accordance with the pre-established terms of the Preferred shares. Nuveen Investments 93 | Notes to FINANCIAL STATEMENTS (continued) These developments have generally not affected the portfolio management or investment policies of the Funds. However, one implication of these auction failures for Common shareholders is that the Funds' cost of leverage will likely be higher, at least temporarily, than it otherwise would have been had the auctions continued to be successful. As a result, the Funds' future Common share earnings may be lower than they otherwise would have been. As of April 30, 2009, the aggregate amount of outstanding Preferred shares redeemed by each Fund is as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $ 12,175,000 $ -- $ 975,000 $ 1,900,000 ===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed, at liquidation value $ 20,250,000 $ 18,825,000 $ 2,500,000 $ 5,500,000 ===================================================================================================================
Inverse Floating Rate Securities Each Fund is authorized to invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). The inverse floater held by a Fund gives the Fund the right (a) to cause the holders of the floating rate certificates to tender their notes at par, and (b) to have the broker transfer the fixed-rate bond held by the trust to the Fund, thereby collapsing the trust. An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as "(IF) - Inverse floating rate investment." An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards No. 140 (SFAS No. 140) "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities." In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as "(UB) - Underlying bond of an inverse floating rate trust," with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in "Investment Income" the entire earnings of the underlying bond and the related interest paid to the holders of the short-term floating rate certificates is recognized as "Interest expense on floating rate obligations" on the Statement of Operations. 94 Nuveen Investments During the fiscal year ended April 30, 2009, New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ), Pennsylvania Investment Quality (NQP), Pennsylvania Premium Income 2 (NPY), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) invested in externally-deposited inverse floaters and/or self-deposited inverse floaters. New Jersey Dividend Advantage 2 (NUJ) did not invest in any such instruments during the fiscal year ended April 30, 2009. Each Fund may also enter into shortfall and forbearance agreements (sometimes referred to as a "recourse trust" or "credit recovery swap") (such agreements referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund agrees to reimburse the broker-dealer, in certain circumstances, for the difference between the liquidation value of the fixed-rate bond held by the trust and the liquidation value of the floating rate certificates issued by the trust plus any shortfalls in interest cash flows. Under these agreements, a Fund's potential exposure to losses related to or on inverse floaters may increase beyond the value of a Fund's inverse floater investments as a Fund may potentially be liable to fulfill all amounts owed to holders of the floating rate certificates. At period end, any such shortfall is included as "Unrealized depreciation on Recourse Trusts" on the Statement of Assets and Liabilities. At April 30, 2009, the Funds were not invested in externally-deposited Recourse Trusts.
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------- Maximum exposure to Recourse Trusts $ -- $ -- $ -- $ -- ===================================================================================================================
The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended April 30, 2009, were as follows:
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------- Average floating rate obligations $ 22,135,849 $ 3,963,301 $ 149,616 $ 530,137 Average annual interest rate and fees 1.81% 2.35% 1.16% 1.16% ===================================================================================================================
Forward Swap Transactions Each Fund is authorized to invest in forward interest rate swap transactions. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated, to terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. The Funds did not invest in forward interest rate swap transactions during the fiscal year ended April 30, 2009. Nuveen Investments 95 | Notes to FINANCIAL STATEMENTS (continued) Futures Contracts Each Fund is authorized to invest in futures contracts. Upon entering into a futures contract, a Fund is required to deposit with the broker an amount of cash or liquid securities equal to a specified percentage of the contract amount. This is known as the "initial margin." Subsequent payments ("variation margin") are made or received by a Fund each day, depending on the daily fluctuation of the value of the contract. During the period the futures contract is open, changes in the value of the contract are recognized as an unrealized gain or loss by "marking-to-market" on a daily basis to reflect the changes in market value of the contract. When the contract is closed or expired, a Fund records a realized gain or loss equal to the difference between the value of the contract on the closing date and value of the contract when originally entered into. Cash held by the broker to cover initial margin requirements on open futures contracts, if any, is recognized on the Statement of Assets and Liabilities. Additionally, the Statement of Assets and Liabilities reflects a receivable or payable for the variation margin, when applicable. New Jersey Premium Income (NNJ) and Pennsylvania Dividend Advantage 2 (NVY) invested in futures contracts during the fiscal year ended April 30, 2009. Risks of investments in futures contracts include the possible adverse movement of the securities or indices underlying the contracts, the possibility that there may not be a liquid secondary market for the contracts and/or that a change in the value of the contract may not correlate with a change in the value of the underlying securities or indices. Market and Credit Risk In the normal course of business each Fund may invest in financial instruments and enter into financial transactions where risk of potential loss exists due to changes in the market (market risk) or failure of the other party to the transaction to perform (credit risk). Similar to credit risk, each Fund may be exposed to counterparty risk, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to credit risk, consist principally of cash due from counterparties on forward, option and swap transactions. The extent of each Fund's exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Each Fund helps manage credit risk by entering into agreements only with counterparties Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments Inc. ("Nuveen"), believes have the financial resources to honor their obligations and by having the Adviser monitor the financial stability of the counterparties. Additionally, counterparties may be required to pledge collateral daily (based on the daily valuation of the financial asset) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when each Fund has an unrealized loss, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the valuations fluctuate, either up or down, by at least the predetermined threshold amount. Zero Coupon Securities Each Fund is authorized to invest in zero coupon securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolios of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which a Fund overdraws its account at the custodian bank. 96 Nuveen Investments Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with US generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FAIR VALUE MEASUREMENTS During the current fiscal period, the Funds adopted the provisions of Statement of Financial Accounting Standards No. 157 (SFAS No. 157) "Fair Value Measurements." SFAS No. 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of each Fund's investments various inputs are used. These inputs are summarized in the three broad levels listed below: Level 1 - Quoted prices in active markets for identical securities. Level 2 - Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Level 3 - Significant unobservable inputs (including management's assumptions in determining the fair value of investments). The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. The following is a summary of each Fund's fair value measurements as of April 30, 2009:
NEW JERSEY INVESTMENT QUALITY (NQJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 407,861,589 $ -- $ 407,861,589 ============================================================================================================== NEW JERSEY PREMIUM INCOME (NNJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 248,842,173 $ -- $ 248,842,173 ============================================================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 127,894,233 $ -- $ 127,894,233 ============================================================================================================== NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 89,632,547 $ -- $ 89,632,547 ============================================================================================================== PENNSYLVANIA INVESTMENT QUALITY (NQP) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 349,034,727 $ -- $ 349,034,727 ============================================================================================================== PENNSYLVANIA PREMIUM INCOME 2 (NPY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 295,392,004 $ -- $ 295,392,004 ============================================================================================================== PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 65,381,039 $ -- $ 65,381,039 ============================================================================================================== PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL - -------------------------------------------------------------------------------------------------------------- Investments $ -- $ 75,963,169 $ -- $ 75,963,169 ==============================================================================================================
Nuveen Investments 97 | Notes to FINANCIAL STATEMENTS (continued) 3. FUND SHARES Common Shares The Board of Directors/Trustees approved an open-market share repurchase program on July 10, 2007, for Pennsylvania Investment Quality (NQP) and Pennsylvania Premium Income 2 (NPY) and on July 31, 2008, for New Jersey Investment Quality (NQJ), New Jersey Premium Income (NNJ), New Jersey Dividend Advantage (NXJ), New Jersey Dividend Advantage 2 (NUJ), Pennsylvania Dividend Advantage (NXM) and Pennsylvania Dividend Advantage 2 (NVY) under which each Fund may repurchase an aggregate of up to approximately 10% of its outstanding Common shares. Transactions in Common shares were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT QUALITY (NQJ) PREMIUM INCOME (NNJ) DIVIDEND ADVANTAGE (NXJ) --------------------------- -------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 4/30/09 4/30/08 - --------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- -- -- -- -- 2,302 Repurchased (30,600) -- (12,900) -- (7,200) -- - --------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 10.34 -- $ 11.07 -- $ 10.14 -- Discount per share repurchased 18.29% -- 17.90% -- 18.93% -- ===========================================================================================================================
NEW JERSEY PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NUJ) INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY) --------------------------- -------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 4/30/09 4/30/08 - ---------------------------------------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- 1,545 -- -- -- -- Repurchased (2,800) -- (27,500) (139,900) (51,800) (156,100) - ---------------------------------------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 10.41 -- $ 10.80 $ 13.23 $ 10.01 $ 12.92 Discount per share repurchased 17.27% -- 18.20% 9.64% 18.84% 8.93% ============================================================================================================================
PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY) -------------------------- --------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - --------------------------------------------------------------------------------------------- Common shares: Issued to shareholders due to reinvestment of distributions -- 1,846 -- 626 Repurchased (2,000) -- -- -- - --------------------------------------------------------------------------------------------- Weighted average Common share: Price per share repurchased $ 10.49 -- -- -- Discount per share repurchased 17.12% -- -- -- =============================================================================================
98 Nuveen Investments Preferred Shares Transactions in Preferred shares were as follows:
NEW JERSEY INVESTMENT QUALITY (NQJ) ------------------------------------------------------ YEAR ENDED YEAR ENDED 4/30/09 4/30/08 - ----------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------- Preferred shares redeemed: Series M 240 $ 6,000,000 -- $ -- Series TH 150 3,750,000 -- -- Series F 97 2,425,000 -- -- - ----------------------------------------------------------------------------------- Total 487 $ 12,175,000 -- $ -- ===================================================================================
NEW JERSEY NEW JERSEY DIVIDEND ADVANTAGE (NXJ) DIVIDEND ADVANTAGE 2 (NUJ) ---------------------------------------------- ------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - ----------------------------------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series T 39 $ 975,000 -- $ -- -- $ -- -- $ -- Series W -- -- -- -- 76 1,900,000 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total 39 $ 975,000 -- $ -- 76 $ 1,900,000 -- $ -- =============================================================================================================================
PENNSYLVANIA PENNSYLVANIA INVESTMENT QUALITY (NQP) PREMIUM INCOME 2 (NPY) ---------------------------------------------- ------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - ----------------------------------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series M -- $ -- -- $ -- 134 $ 3,350,000 -- $ -- Series T 136 3,400,000 -- -- -- -- -- -- Series W 367 9,175,000 -- -- -- -- -- -- Series TH 307 7,675,000 -- -- 332 8,300,000 -- -- Series F -- -- -- -- 287 7,175,000 -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total 810 $ 20,250,000 -- $ -- 753 $ 18,825,000 -- $ -- =============================================================================================================================
PENNSYLVANIA PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) DIVIDEND ADVANTAGE 2 (NVY) ---------------------------------------------- ------------------------------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 4/30/09 4/30/08 4/30/09 4/30/08 - ----------------------------------------------------------------------------------------------------------------------------- SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT - ----------------------------------------------------------------------------------------------------------------------------- Preferred shares redeemed: Series M -- $ -- -- $ -- 220 $ 5,500,000 -- $ -- Series T 100 2,500,000 -- -- -- -- -- -- - ----------------------------------------------------------------------------------------------------------------------------- Total 100 $ 2,500,000 -- $ -- 220 $ 5,500,000 -- $ -- =============================================================================================================================
There were no transactions in Preferred shares for New Jersey Premium Income (NNJ) during the fiscal years ended April 30, 2009 and April 30, 2008. Nuveen Investments 99 | Notes to FINANCIAL STATEMENTS (continued) 4. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended April 30, 2009, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - -------------------------------------------------------------------------------------- Purchases $ 5,772,752 $ 3,114,075 $ 575,565 $ 197,894 Sales and maturities 16,328,950 4,688,224 4,201,246 1,915,569 ======================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - -------------------------------------------------------------------------------------- Purchases $ 12,352,581 $ 19,673,763 $ 2,603,507 $ 3,067,058 Sales and maturities 30,180,197 34,762,617 5,031,892 3,651,892 ======================================================================================
5. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to timing differences in recognizing taxable market discount, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No.140, if any. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At April 30, 2009, the cost of investments was as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - -------------------------------------------------------------------------------------- Cost of investments $ 432,010,326 $ 255,351,414 $ 136,405,667 $ 95,732,578 ======================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - -------------------------------------------------------------------------------------- Cost of investments $ 330,353,597 $ 301,456,515 $ 68,218,376 $ 74,819,697 ======================================================================================
100 Nuveen Investments Gross unrealized appreciation and gross unrealized depreciation of investments at April 30, 2009, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ---------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 9,874,025 $ 9,086,243 $ 2,804,494 $ 2,091,066 Depreciation (34,022,762) (15,595,484) (11,315,928) (8,191,097) - ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (24,148,737) $ (6,509,241) $ (8,511,434) $ (6,100,031) ======================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ---------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $ 12,398,913 $ 9,897,044 $ 1,671,218 $ 2,632,262 Depreciation (20,572,212) (22,988,681) (5,777,660) (5,989,618) - ---------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $ (8,173,299) $ (13,091,637) $ (4,106,442) $ (3,357,356) ======================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at April 30, 2009, the Funds' tax year end, were as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - ---------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 2,456,485 $ 1,334,676 $ 708,223 $ 563,694 Undistributed net ordinary income ** -- 125,223 11,246 6,190 Undistributed net long-term capital gains -- 115,152 -- 72,905 ======================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - ---------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 1,909,521 $ 2,199,968 $ 402,196 $ 513,141 Undistributed net ordinary income ** -- 112,103 -- 37,476 Undistributed net long-term capital gains -- -- 167,005 179,271 ======================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on April 1, 2009, paid on May 1, 2009. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. Nuveen Investments 101 | Notes to FINANCIAL STATEMENTS (continued) The tax character of distributions paid during the Funds' tax years ended April 30, 2009 and April 30, 2008, was designated for purposes of the dividends paid deduction as follows:
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 2009 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 17,007,219 $ 9,745,985 $ 5,316,513 $ 4,035,146 Distributions from net ordinary income** 1,227,039 516,711 339,082 174,706 Distributions from net long-term capital gains**** 1,324,097 885,685 349,118 265,912 ===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 2009 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income*** $ 14,218,439 $ 12,592,717 $ 2,928,477 $ 3,309,636 Distributions from net ordinary income** -- 37,841 -- -- Distributions from net long-term capital gains**** -- -- -- 20,398 ===================================================================================================================
NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 2008 (NQJ) (NNJ) (NXJ) (NUJ) - ------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 18,776,382 $ 10,955,180 $ 6,276,949 $ 4,206,447 Distributions from net ordinary income ** -- 12,727 -- 886 Distributions from net long-term capital gains 837,918 673,257 230,127 899,123 ===================================================================================================================
PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 2008 (NQP) (NPY) (NXM) (NVY) - ------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $ 15,335,512 $ 13,821,804 $ 3,228,981 $ 3,634,945 Distributions from net ordinary income ** -- -- -- -- Distributions from net long-term capital gains -- 955,818 226,011 243,281 ===================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended April 30, 2009, as Exempt Interest Dividends. **** The Funds designated as a long-term capital gain dividend, pursuant to the Internal Revenue Code Section 852(b)(3), the amount necessary to reduce earnings and profits of the Funds related to net capital gain to zero for the tax year ended April 30, 2009. 102 Nuveen Investments At April 30, 2009, the Funds' tax year end, the following Funds had unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. If not applied, the carryforwards will expire as follows: NEW JERSEY PENNSYLVANIA PENNSYLVANIA INVESTMENT INVESTMENT PREMIUM QUALITY QUALITY INCOME 2 (NQJ) (NQP) (NPY) - -------------------------------------------------------------------------------- Expiration: April 30, 2014 $ -- $ 124,650 $ -- April 30, 2015 -- 170,887 -- April 30, 2016 -- 217,013 840,338 April 30, 2017 642 2,672,468 2,893,165 - -------------------------------------------------------------------------------- Total $ 642 $ 3,185,018 $ 3,733,503 ================================================================================ The following Fund has elected to defer net realized losses from investments incurred from November 1, 2008 through April 30, 2009, the Fund's tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year: NEW JERSEY INVESTMENT QUALITY (NQJ) - -------------------------------------------------------------------------------- Post-October capital losses $ 133,482 ================================================================================ 6. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual Fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: NEW JERSEY INVESTMENT QUALITY (NQJ) NEW JERSEY PREMIUM INCOME (NNJ) PENNSYLVANIA INVESTMENT QUALITY (NQP) PENNSYLVANIA PREMIUM INCOME 2 (NPY) AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ NEW JERSEY DIVIDEND ADVANTAGE (NXJ) NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE - -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund net assets managed as stated in the following table. As of April 30, 2009, the complex-level fee rate was .1998%. Nuveen Investments 103 | Notes to FINANCIAL STATEMENTS (continued) The complex-level fee schedule is as follows: COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL - -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate daily managed net assets of all Nuveen funds, with such daily managed net assets defined separately for each fund in its management agreement, but excluding assets attributable to investments in other Nuveen funds. For the complex-level and fund-level fee components, daily managed net assets includes assets managed by the Adviser that are attributable to each fund's use of financial leverage. For these purposes, financial leverage includes the funds' use of preferred stock and borrowings and investments in the residual interest certificates (also called inverse floating rate securities) in tender option bond (TOB) trusts, including the portion of assets held by the TOB trust that has been effectively financed by the trust's issuance of floating rate securities, subject to an agreement by the Adviser to limit the amount of such assets for determining managed net assets in certain circumstances. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised funds. For the first ten years of New Jersey Dividend Advantage's (NXJ) and Pennsylvania Dividend Advantage's (NXM) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2001* .30% 2007 .25% 2002 .30 2008 .20 2003 .30 2009 .15 2004 .30 2010 .10 2005 .30 2011 .05 2006 .30 ================================================================================ * From the commencement of operations. 104 Nuveen Investments The Adviser has not agreed to reimburse New Jersey Dividend Advantage (NXJ) and Pennsylvania Dividend Advantage (NXM) for any portion of their fees and expenses beyond March 31, 2011. For the first ten years of New Jersey Dividend Advantage 2's (NUJ) and Pennsylvania Dividend Advantage 2's (NVY) operations, the Adviser has agreed to reimburse the Funds, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, - -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse New Jersey Dividend Advantage 2 (NUJ) and Pennsylvania Dividend Advantage 2 (NVY) for any portion of their fees and expenses beyond March 31, 2012. 7. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Statement of Financial Accounting Standards No. 161 (SFAS No. 161) In March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities." This standard is intended to enhance financial statement disclosures for derivative instruments and hedging activities and enable investors to understand: a) how and why a fund uses derivative instruments, b) how derivative instruments and related hedge items are accounted for, and c) how derivative instruments and related hedge items affect a fund's financial position, results of operations and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. As of April 30, 2009, management does not believe the adoption of SFAS No. 161 will impact the financial statement amounts; however, additional footnote disclosures may be required about the use of derivative instruments and hedging items. Financial Accounting Standards Board Staff Position No. 157-4 (FSP No. 157-4) On April 9, 2009, the Financial Accounting Standards Board issued FSP No. 157-4, "Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly." FSP No. 157-4 provides additional guidance for estimating fair value in accordance with SFAS No. 157, "Fair Value Measurements," when the volume and level of activity for the asset or liability have significantly decreased. FSP No. 157-4 also requires additional disaggregation of the current SFAS No. 157 required disclosures. FSP No. 157-4 is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively. At this time, management is evaluating the implications of FSP No. 157-4 and the impact it will have on the financial statement disclosures. 8. SUBSEQUENT EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on June 1, 2009, to shareholders of record on May 15, 2009, as follows: NEW JERSEY NEW JERSEY NEW JERSEY NEW JERSEY INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME ADVANTAGE ADVANTAGE 2 (NQJ) (NNJ) (NXJ) (NUJ) - -------------------------------------------------------------------------------- Dividend per share $ .0600 $ .0580 $ .0590 $ .0620 ================================================================================ PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA PENNSYLVANIA INVESTMENT PREMIUM DIVIDEND DIVIDEND QUALITY INCOME 2 ADVANTAGE ADVANTAGE 2 (NQP) (NPY) (NXM) (NVY) - -------------------------------------------------------------------------------- Dividend per share $ .0630 $ .0590 $ .0610 $ .0635 ================================================================================ Nuveen Investments 105 | Notes to FINANCIAL STATEMENTS (continued) Auction Participation Fees Effective May 1, 2009, auction participation fees for Nuveen Preferred shares with respect to auctions that have failed have been reduced from 25 bps (annualized) to 15 bps (annualized). All auction participants have signed new agreements incorporating this change. Preferred Shares On May 13, 2009, New Jersey Premium Income (NNJ) and New Jersey Dividend Advantage (NXJ) noticed for redemption $2.075 million and $1.1 million, respectively, of their outstanding Preferred shares, at liquidation value, using tender option bonds (TOBs). On June 2, 2009, New Jersey Investment Quality (NQJ) and New Jersey Dividend Advantage 2 (NUJ) noticed for redemption $3.525 million and $0.775 million, respectively, of their outstanding Preferred shares, at liquidation value, using TOBs. 106 Nuveen Investments | Financial HIGHLIGHTS Nuveen Investments 107 | Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each period:
Investment Operations -------------------------------------------------------------------------- Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total - ------------------------------------------------------------------------------------------------------------------------------ NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 $ 14.26 $ .91 $ (1.22) $ (.18) $ (.03) $ (.52) 2008 14.96 .92 (.67) (.26) (.01) (.02) 2007(b) 14.53 .75 .47 (.20) (.01) 1.01 Year Ended 6/30: 2006 15.61 .91 (.75) (.18) (.03) (.05) 2005 14.69 .95 1.13 (.10) (.01) 1.97 2004 15.65 1.01 (.75) (.05) (.01) .20 NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 14.64 .88 (.78) (.17) (.03) (.10) 2008 15.23 .90 (.53) (.25) (.01) .11 2007(b) 14.79 .74 .49 (.20) --*** 1.03 Year Ended 6/30: 2006 16.05 .90 (.85) (.17) (.04) (.16) 2005 15.35 .94 1.01 (.10) (.01) 1.84 2004 16.28 .99 (.79) (.05) (.01) .14 ============================================================================================================================== Less Distributions --------------------------------------- Net Investment Capital Ending Income to Gains to Common Common Common Share Ending Share- Share- Net Asset Market holders holders Total Value Value - ------------------------------------------------------------------------------------------------------------ NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 $ (.65) $ (.09) $ (.74) $ 13.00 $ 11.37 2008 (.65) (.03) (.68) 14.26 13.09 2007(b) (.55) (.03) (.58) 14.96 14.30 Year Ended 6/30: 2006 (.79) (.24) (1.03) 14.53 13.70 2005 (.94) (.11) (1.05) 15.61 15.25 2004 (.96) (.20) (1.16) 14.69 14.19 NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 (.63) (.08) (.71) 13.83 11.96 2008 (.66) (.04) (.70) 14.64 13.48 2007(b) (.58) (.01) (.59) 15.23 15.12 Year Ended 6/30: 2006 (.79) (.31) (1.10) 14.79 14.16 2005 (.92) (.22) (1.14) 16.05 15.76 2004 (.94) (.13) (1.07) 15.35 14.19 ============================================================================================================
Preferred Shares at End of Period --------------------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share - ------------------------------------------------------------------------------------------- NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ 149,825 $ 25,000 $ 69,373 2008 162,000 25,000 70,092 2007(b) 162,000 25,000 72,284 Year Ended 6/30: 2006 162,000 25,000 70,917 2005 162,000 25,000 74,241 2004 162,000 25,000 71,246 NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 91,600 25,000 70,422 2008 91,600 25,000 73,137 2007(b) 91,600 25,000 75,093 Year Ended 6/30: 2006 91,600 25,000 73,635 2005 91,600 25,000 77,724 2004 91,600 25,000 75,424 ===========================================================================================
108 Nuveen Investments
Ratios/Supplemental Data ------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ----------------------- ---------------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ - ------------------------------------------------------------------------------------------------------------------------------- NEW JERSEY INVESTMENT QUALITY (NQJ) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (7.10)% (3.41)% $ 265,928 1.29% 1.29% 6.94% 2008 (3.64) (.08) 292,194 1.23 1.23 6.30 2007(b) 8.75 7.05 306,402 1.20**** 1.20**** 6.04**** Year Ended 6/30: 2006 (3.62) (.31) 297,539 1.21 1.21 6.05 2005 15.13 13.81 319,083 1.21 1.21 6.22 2004 (4.09) 1.26 299,671 1.21 1.21 6.64 NEW JERSEY PREMIUM INCOME (NNJ) - ------------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (5.69) (.40) 166,428 1.28 1.28 6.44 2008 (6.18) .77 176,374 1.24 1.24 6.04 2007(b) 11.10 7.03 183,540 1.21**** 1.21**** 5.83**** Year Ended 6/30: 2006 (3.36) (1.04) 178,199 1.19 1.19 5.81 2005 19.43 12.31 193,182 1.18 1.18 5.91 2004 (5.65) .85 184,753 1.18 1.18 6.23 =============================================================================================================================== Ratios/Supplemental Data ----------------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ------------------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate - -------------------------------------------------------------------------------------------------------- NEW JERSEY INVESTMENT QUALITY (NQJ) Year Ended 4/30: 2009 1.27% 1.27% 6.95% 1% 2008 1.21 1.21 6.31 17 2007(b) 1.19**** 1.19**** 6.06**** 7 Year Ended 6/30: 2006 1.19 1.19 6.08 17 2005 1.20 1.20 6.23 15 2004 1.21 1.21 6.64 19 NEW JERSEY PREMIUM INCOME (NNJ) - -------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 1.26 1.26 6.46 1 2008 1.23 1.23 6.04 19 2007(b) 1.20**** 1.20**** 5.84**** 6 Year Ended 6/30: 2006 1.18 1.18 5.83 12 2005 1.17 1.17 5.92 21 2004 1.18 1.18 6.23 23 ========================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Rounds to less than $.01 per share. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the ten months ended April 30, 2007. See accompanying notes to financial statements. Nuveen Investments 109 | Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations -------------------------------------------------------------------------------- Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total ======================================================================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ------------------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 $ 14.26 $ .91 $ (1.27) $ (.16) $ (.03) $ (.55) 2008 15.09 .94 (.80) (.25) (.01) (.12) 2007(b) 14.68 .78 .47 (.19) --*** 1.06 Year Ended 6/30: 2006 15.63 .95 (.77) (.18) (.01) (.01) 2005 14.59 .98 1.09 (.10) -- 1.97 2004 15.35 1.00 (.77) (.05) -- .18 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ------------------------------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 14.35 .95 (1.42) (.17) (.02) (.66) 2008 15.31 .97 (.79) (.23) (.05) (.10) 2007(b) 14.87 .83 .47 (.20) --*** 1.10 Year Ended 6/30: 2006 15.79 .99 (.76) (.19) (.01) .03 2005 14.62 1.00 1.25 (.11) -- 2.14 2004 15.44 1.03 (.82) (.06) -- .15 ======================================================================================================================== Less Distributions ---------------------------------------- Net Investment Capital Ending Income to Gains to Common Common Common Share Ending Share- Share- Net Asset Market holders holders Total Value Value =========================================================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ----------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ (.66) $ (.08) $ (.74) $ 12.97 $ 11.15 2008 (.68) (.03) (.71) 14.26 13.11 2007(b) (.64) (.01) (.65) 15.09 15.75 Year Ended 6/30: 2006 (.84) (.10) (.94) 14.68 14.35 2005 (.93) -- (.93) 15.63 15.38 2004 (.94) -- (.94) 14.59 13.63 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ----------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (.69) (.07) (.76) 12.93 11.46 2008 (.71) (.15) (.86) 14.35 13.59 2007(b) (.66) --*** (.66) 15.31 16.50 Year Ended 6/30: 2006 (.86) (.09) (.95) 14.87 14.90 2005 (.92) (.05) (.97) 15.79 15.90 2004 (.92) (.05) (.97) 14.62 13.74 ===========================================================================================================
Preferred Shares at End of Period -------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================================== NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ------------------------------------------------------------------------------ Year Ended 4/30: 2009 $47,025 $25,000 $70,311 2008 48,000 25,000 73,834 2007(b) 48,000 25,000 76,668 Year Ended 6/30: 2006 48,000 25,000 75,197 2005 48,000 25,000 78,386 2004 48,000 25,000 74,818 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ------------------------------------------------------------------------------ Year Ended 4/30: 2009 32,600 25,000 69,828 2008 34,500 25,000 72,032 2007(b) 34,500 25,000 75,172 Year Ended 6/30: 2006 34,500 25,000 73,659 2005 34,500 25,000 76,617 2004 34,500 25,000 72,767 ============================================================================== 110 Nuveen Investments
Ratios/Supplemental Data ------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ------------------- ---------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ======================================================================================================================= NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ----------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (8.95)% (3.63)% $ 85,230 1.29% 1.29% 6.74% 2008 (12.31) (.81) 93,762 1.20 1.20 6.10 2007(b) 14.37 7.26 99,203 1.20**** 1.20**** 5.85**** Year Ended 6/30: 2006 (.78) (.05) 96,378 1.19 1.19 5.83 2005 19.97 13.80 102,502 1.19 1.19 5.94 2004 (5.13) 1.20 95,651 1.20 1.20 6.26 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ----------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (9.75) (4.36) 58,456 1.33 1.33 6.95 2008 (12.41) (.60) 64,904 1.25 1.25 6.16 2007(b) 15.40 7.50 69,238 1.24**** 1.24**** 6.03**** Year Ended 6/30: 2006 (.49) .25 67,150 1.23 1.23 5.99 2005 23.39 15.00 71,231 1.23 1.23 6.09 2004 (4.81) 1.02 65,919 1.25 1.25 6.41 ======================================================================================================================= Ratios/Supplemental Data -------------------------------------------------------- Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ------------------------------------------ Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ================================================================================================ NEW JERSEY DIVIDEND ADVANTAGE (NXJ) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 1.05% 1.05% 6.99% --% 2008 .89 .89 6.41 17 2007(b) .83**** .83**** 6.23**** 9 Year Ended 6/30: 2006 .75 .75 6.28 16 2005 .74 .74 6.39 17 2004 .74 .74 6.71 11 NEW JERSEY DIVIDEND ADVANTAGE 2 (NUJ) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 1.01 1.01 7.27 -- 2008 .85 .85 6.56 16 2007(b) .78**** .78**** 6.49**** 11 Year Ended 6/30: 2006 .76 .76 6.47 13 2005 .77 .77 6.54 11 2004 .79 .79 6.87 11 ================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Rounds to less than $.01 per share. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the ten months ended April 30, 2007. See accompanying notes to financial statements. Nuveen Investments 111 | Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------- Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total ========================================================================================================================= PENNSYLVANIA INVESTMENT QUALITY (NQP) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ 14.39 $ .96 $ (.94) $ (.20) $ -- $ (.18) 2008 15.19 .95 (.80) (.29) -- (.14) 2007(b) 14.71 .77 .47 (.23) -- 1.01 Year Ended 6/30: 2006 15.73 .90 (.87) (.21) (.02) (.20) 2005 14.92 .92 1.05 (.12) (.01) 1.84 2004 15.91 .98 (.98) (.06) -- (.06) PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 13.74 .91 (1.12) (.19) -- (.40) 2008 14.70 .90 (.93) (.26) (.02) (.31) 2007(b) 14.22 .74 .50 (.21) -- 1.03 Year Ended 6/30: 2006 15.32 .89 (.80) (.18) (.03) (.12) 2005 14.74 .92 .88 (.10) (.01) 1.69 2004 15.65 .98 (.77) (.05) (.01) .15 ========================================================================================================================= Less Distributions ------------------------------- Net Investment Capital Ending Income to Gains to Common Common Common Share Ending Share- Share- Net Asset Market holders holders Total Value Value ============================================================================================== PENNSYLVANIA INVESTMENT QUALITY (NQP) - ---------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ (.68) $ -- $ (.68) $ 13.53 $ 11.34 2008 (.66) -- (.66) 14.39 13.10 2007(b) (.53) -- (.53) 15.19 14.01 Year Ended 6/30: 2006 (.71) (.11) (.82) 14.71 12.95 2005 (.89) (.14) (1.03) 15.73 15.16 2004 (.92) (.01) (.93) 14.92 13.58 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ---------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (.62) -- (.62) 12.72 10.60 2008 (.61) (.04) (.65) 13.74 12.30 2007(b) (.55) -- (.55) 14.70 13.67 Year Ended 6/30: 2006 (.77) (.21) (.98) 14.22 12.96 2005 (.93) (.18) (1.11) 15.32 15.16 2004 (.95) (.11) (1.06) 14.74 13.84 ==============================================================================================
Preferred Shares at End of Period ------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ============================================================================= PENNSYLVANIA INVESTMENT QUALITY (NQP) - ----------------------------------------------------------------------------- Year Ended 4/30: 2009 $ 111,750 $ 25,000 $ 73,849 2008 132,000 25,000 69,039 2007(b) 132,000 25,000 71,902 Year Ended 6/30: 2006 132,000 25,000 70,401 2005 132,000 25,000 73,554 2004 132,000 25,000 71,077 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ----------------------------------------------------------------------------- Year Ended 4/30: 2009 99,275 25,000 75,047 2008 118,100 25,000 70,566 2007(b) 118,100 25,000 74,249 Year Ended 6/30: 2006 118,100 25,000 72,655 2005 118,100 25,000 76,307 2004 118,100 25,000 74,207 ============================================================================= 112 Nuveen Investments
Ratios/Supplemental Data ------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement ------------------- ---------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ========================================================================================================================= PENNSYLVANIA INVESTMENT QUALITY (NQP) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (7.99)% (1.01)% $ 218,353 1.50% 1.31% 7.23% 2008 (1.78) (.92) 232,528 1.65 1.27 6.48 2007(b) 12.41 6.89 247,644 1.54**** 1.25**** 6.06**** Year Ended 6/30: 2006 (9.47) (1.34) 239,718 1.23 1.23 5.87 2005 19.53 12.67 256,365 1.23 1.23 5.96 2004 (9.73) (.38) 243,287 1.23 1.23 6.38 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (8.43) (2.65) 198,739 1.35 1.31 7.28 2008 (5.26) (2.06) 215,252 1.55 1.28 6.36 2007(b) 9.83 7.31 232,650 1.40**** 1.21**** 6.08**** Year Ended 6/30: 2006 (8.42) (.80)*** 225,121 1.20 1.20 6.01 2005 17.79 11.80 242,373 1.19 1.19 6.09 2004 (7.22) .94 232,455 1.18 1.18 6.45 ========================================================================================================================= Ratios/Supplemental Data ------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ---------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ============================================================================================== PENNSYLVANIA INVESTMENT QUALITY (NQP) - ---------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 1.49% 1.31% 7.24% 3% 2008 1.64 1.26 6.49 20 2007(b) 1.53**** 1.23**** 6.07**** 16 Year Ended 6/30: 2006 1.21 1.21 5.89 20 2005 1.22 1.22 5.97 18 2004 1.22 1.22 6.39 17 PENNSYLVANIA PREMIUM INCOME 2 (NPY) - ---------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 1.34 1.29 7.30 6 2008 1.53 1.27 6.37 27 2007(b) 1.39**** 1.20**** 6.09**** 15 Year Ended 6/30: 2006 1.18 1.18 6.03 18 2005 1.19 1.19 6.10 22 2004 1.17 1.17 6.46 16 ==============================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** During the fiscal year ended June 30, 2006, Pennsylvania Premium Income 2 (NPY) received a payment from the Adviser of $27,169, to offset losses realized on the disposal of investments purchased in violation of the Fund's investment restrictions. This reimbursement did not have an impact on the Fund's Total Return on Common Share Net Asset Value. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the ten months ended April 30, 2007. See accompanying notes to financial statements. Nuveen Investments 113 | Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations ------------------------------------------------------------------- Distributions Distributions from Net from Beginning Investment Capital Common Net Income to Gains to Share Net Realized/ Preferred Preferred Net Asset Investment Unrealized Share- Share- Value Income Gain (Loss) holders+ holders+ Total ========================================================================================================================= PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ 14.47 $ c .97 $ (1.47) $ (.18) $ -- $ (.68) 2008 15.36 .97 (.84) (.25) (.02) (.14) 2007(b) 14.95 .82 .46 (.21) -- 1.07 Year Ended 6/30: 2006 15.93 .98 (.78) (.19) (.01) -- 2005 15.32 .99 1.06 (.10) (.02) 1.93 2004 16.25 1.04 (.78) (.05) (.01) .20 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - ------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 14.49 .99 (1.17) (.19) --*** (.37) 2008 15.34 .99 (.80) (.26) (.02) (.09) 2007(b) 14.93 .83 .44 (.21) (.01) 1.05 Year Ended 6/30: 2006 15.89 .98 (.85) (.19) (.01) (.07) 2005 14.87 .97 1.08 (.11) -- 1.94 2004 15.90 .98 (.87) (.05) (.01) .05 ========================================================================================================================= Less Distributions -------------------------------- Net Investment Capital Ending Income to Gains to Common Common Common Share Ending Share- Share- Net Asset Market holders holders Total Value Value ================================================================================================ PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 $(.70) $ -- $ (.70) $ 13.09 $ 11.31 2008 (.70) (.05) (.75) 14.47 13.61 2007(b) (.66) -- (.66) 15.36 15.70 Year Ended 6/30: 2006 (.88) (.10) (.98) 14.95 15.10 2005 (.96) (.36) (1.32) 15.93 16.14 2004 (.96) (.17) (1.13) 15.32 14.39 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 (.70) --*** (.70) 13.42 11.45 2008 (.71) (.05) (.76) 14.49 13.40 2007(b) (.62) (.02) (.64) 15.34 15.18 Year Ended 6/30: 2006 (.79) (.10) (.89) 14.93 14.16 2005 (.88) (.04) (.92) 15.89 14.90 2004 (.92) (.16) (1.08) 14.87 13.48 ================================================================================================
Preferred Shares at End of Period -------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ================================================================================ PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - -------------------------------------------------------------------------------- Year Ended 4/30: 2009 $ 22,500 $ 25,000 $ 73,430 2008 25,000 25,000 73,211 2007(b) 25,000 25,000 76,160 Year Ended 6/30: 2006 25,000 25,000 74,660 2005 25,000 25,000 77,712 2004 25,000 25,000 75,549 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - -------------------------------------------------------------------------------- Year Ended 4/30: 2009 23,000 25,000 79,340 2008 28,500 25,000 72,366 2007(b) 28,500 25,000 75,124 Year Ended 6/30: 2006 28,500 25,000 73,769 2005 28,500 25,000 76,907 2004 28,500 25,000 73,570 ================================================================================ 114 Nuveen Investments
Ratios/Supplemental Data ------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares Total Returns Before Credit/Reimbursement -------------------- ---------------------------------------- Based Ending on Net Based Common Assets on Share Net Applicable Expenses Expenses Net Market Asset to Common Including Excluding Investment Value* Value* Shares (000) Interest++(a) Interest++(a) Income++ ========================================================================================================================== PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (11.67)% (4.57)% $ 43,587 1.37% 1.36% 7.17% 2008 (8.46) (.87) 48,211 1.39 1.28 6.26 2007(b) 8.40 7.22 51,160 1.33**** 1.27**** 5.99**** Year Ended 6/30: 2006 (.56) (.01) 49,660 1.25 1.25 5.90 2005 21.84 13.02 52,712 1.23 1.23 5.82 2004 (5.95) 1.30 50,549 1.21 1.21 6.15 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - -------------------------------------------------------------------------------------------------------------------------- Year Ended 4/30: 2009 (9.16) (2.33) 49,993 1.37 1.36 7.07 2008 (6.81) (.60) 53,997 1.40 1.29 6.29 2007(b) 11.88 7.14 57,142 1.33**** 1.27**** 6.03**** Year Ended 6/30: 2006 .88 (.46) 55,597 1.24 1.24 5.93 2005 17.63 13.37 59,174 1.23 1.23 5.80 2004 (8.58) .29 55,370 1.24 1.24 5.95 ========================================================================================================================== Ratios/Supplemental Data ------------------------------------------------------ Ratios to Average Net Assets Applicable to Common Shares After Credit/Reimbursement** ---------------------------------------- Expenses Expenses Net Portfolio Including Excluding Investment Turnover Interest++(a) Interest++(a) Income++ Rate ================================================================================================ PENNSYLVANIA DIVIDEND ADVANTAGE (NXM) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 1.13% 1.13% 7.40% 4% 2008 1.07 .96 6.57 20 2007(b) .95**** .89**** 6.37**** 11 Year Ended 6/30: 2006 .80 .80 6.35 12 2005 .78 .78 6.28 13 2004 .76 .76 6.60 10 PENNSYLVANIA DIVIDEND ADVANTAGE 2 (NVY) - ------------------------------------------------------------------------------------------------ Year Ended 4/30: 2009 1.06 1.05 7.38 4 2008 1.01 .90 6.67 27 2007(b) .88**** .82**** 6.48**** 13 Year Ended 6/30: 2006 .77 .77 6.40 13 2005 .78 .78 6.25 8 2004 .78 .78 6.40 4 ================================================================================================
* Total Return Based on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period may take place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return Based on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. *** Rounds to less than $.01 per share. **** Annualized. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the ten months ended April 30, 2007. See accompanying notes to financial statements. Nuveen Investments 115 Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds (referred to herein as "independent board members") has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o ROBERT P. BREMNER 8/22/40 Chairman of the 1997 200 Private Investor and Management Consultant; 333 W. Wacker Drive Board and Board Treasurer and Director, Humanities Council of Chicago, IL 60606 Member Washington D.C. o JACK B. EVANS 10/22/48 Board Member 1999 200 President, The Hall-Perrine Foundation, a 333 W. Wacker Drive private philanthropic corporation (since Chicago, IL 60606 1996); Director and Vice Chairman, United Fire Group, a publicly held company; Member of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College; Director, Iowa College Foundation; Member of the Advisory Council of the Department of Finance in the Tippie College of Business, University of Iowa; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. o WILLIAM C. HUNTER 3/6/48 Board Member 2004 200 Dean, Tippie College of Business, University 333 W. Wacker Drive of Iowa (since 2006); Director (since 2004) of Chicago, IL 60606 Xerox Corporation; Director (since 2005), Beta Gamma Sigma International Honor Society; formerly, Dean and Distinguished Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director, SS&C Technologies, Inc. (May 2005-October 2005); formerly, Director (1997-2007), Credit Research Center at Georgetown University. o DAVID J. KUNDERT 10/28/42 Board Member 2005 200 Director, Northwestern Mutual Wealth 333 W. Wacker Drive Management Company; retired (since 2004) as Chicago, IL 60606 Chairman, JPMorgan Fleming Asset Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Investment Committee, Greater Milwaukee Foundation. o WILLIAM J. SCHNEIDER 9/24/44 Board Member 1997 200 Chairman of Miller-Valentine Partners Ltd., a 333 W. Wacker Drive real estate investment company; formerly, Chicago, IL 60606 Senior Partner and Chief Operating Officer (retired, 2004) of Miller-Valentine Group; member, University of Dayton Business School Advisory Council; member, Dayton Philharmonic Orchestra Association; formerly, member, Business Advisory Council, Cleveland Federal Reserve Bank; formerly, Director, Dayton Development Coalition.
116 Nuveen Investments
NUMBER PRINCIPAL YEAR FIRST OF PORTFOLIOS OCCUPATION(S) NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS & ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS: o JUDITH M. STOCKDALE 12/29/47 Board Member 1997 200 Executive Director, Gaylord and Dorothy 333 W. Wacker Drive Donnelley Foundation (since 1994); prior Chicago, IL 60606 thereto, Executive Director, Great Lakes Protection Fund (from 1990 to 1994). o CAROLE E. STONE 6/28/47 Board Member 2007 200 Director, Chicago Board Options Exchange 333 W. Wacker Drive (since 2006); Commissioner, New York State Chicago, IL 60606 Commission on Public Authority Reform (since 2005); formerly, Chair, New York Racing Association Oversight Board (2005-2007). o TERENCE J. TOTH 9/29/59 Board Member 2008 200 Director, Legal & General Investment 333 W. Wacker Drive Management America, Inc. (since 2008); Chicago, IL 60606 Managing Partner, Musso Capital Management (since 2008); Private Investor (since 2007); CEO and President, Northern Trust Investments (2004-2007); Executive Vice President, Quantitative Management & Securities Lending (2004-2007); prior thereto, various positions with Northern Trust Company (since 1994); Member: Goodman Theatre Board (since 2004), Chicago Fellowship Boards (since 2005), University of Illinois Leadership Council Board (since 2007) and Catalyst Schools of Chicago Board (since 2008); formerly, Member: Northern Trust Mutual Funds Board (2005-2007), Northern Trust Investments Board (2004-2007), Northern Trust Japan Board (2004-2007), Northern Trust Securities Inc. Board (2003-2007) and Northern Trust Hong Kong Board (1997-2004). INTERESTED BOARD MEMBER: o JOHN P. AMBOIAN(2) 6/14/61 Board Member 2008 200 Chief Executive Officer (since July 2007) and 333 W. Wacker Drive Director (since 1999) of Nuveen Investments, Chicago, IL 60606 Inc.; Chief Executive Officer (since 2007) of Nuveen Asset Management, Nuveen Investments Advisors, Inc. formerly, President (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
Nuveen Investments 117
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o GIFFORD R. ZIMMERMAN 9/9/56 Chief 1988 200 Managing Director (since 2002), Assistant 333 W. Wacker Drive Administrative Secretary and Associate General Counsel of Chicago, IL 60606 Officer Nuveen Investments, LLC; Managing Director, Associate General Counsel and Assistant Secretary, of Nuveen Asset Management and of Symphony Asset Management LLC, (since 2003); Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006), Nuveen HydePark Group LLC and Nuveen Investment Solutions, Inc. (since 2007); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; formerly, Managing Director (2002- 2004), General Counsel (1998-2004) and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. o WILLIAM ADAMS IV 6/9/55 Vice President 2007 125 Executive Vice President of Nuveen 333 W. Wacker Drive Investments, Inc.; Executive Vice President, Chicago, IL 60606 U.S. Structured Products of Nuveen Investments, LLC, (since 1999), prior thereto, Managing Director of Structured Investments. MARK J.P. ANSON 6/10/59 Vice President 2009 200 President and Executive Director of Nuveen 333 W. Wacker Drive Investments, Inc. (since 2007); President of Chicago, IL 60606 Nuveen Investments Institutional Services Group LLC (since 2007); previously, Chief Executive Officer of the British Telecom Pension Scheme (2006-2007) and Chief Investment Officer of Calpers (1999-2006); PhD, Chartered Financial Analyst, Chartered Alternative Investment Analyst, Certified Public Accountant, Certified Management Accountant and Certified Internal Auditor. o CEDRIC H. ANTOSIEWICZ 1/11/62 Vice President 2007 125 Managing Director, (since 2004), previously, 333 W. Wacker Drive Vice President (1993-2004) of Nuveen Chicago, IL 60606 Investments, LLC. o NIZIDA ARRIAGA 6/1/68 Vice President 2009 200 Vice President (since 2007) of Nuveen 333 W. Wacker Drive Investments, LLC; previously, Portfolio Chicago, IL 60606 Manager, Allstate Investments, LLC (1996-2006); Chartered Financial Analyst. o MICHAEL T. ATKINSON 2/3/66 Vice President 2000 200 Vice President (since 2002) of Nuveen 333 W. Wacker Drive and Assistant Investments, LLC.; Vice President of Nuveen Chicago, IL 60606 Secretary Asset Management (since 2005). o MARGO L. COOK 4/11/64 Vice President 2009 200 Executive Vice President (since Oct 2008) of 333 W. Wacker Drive Nuveen Investments, Inc.; previously, Head of Chicago, IL 60606 Institutional Asset Management (2007-2008) of Bear Stearns Asset Management; Head of Institutional Asset Mgt (1986-2007) of Bank of NY Mellon; Chartered Financial Analyst. o LORNA C. FERGUSON 10/24/45 Vice President 1998 200 Managing Director (since 2004), formerly, Vice 333 W. Wacker Drive President of Nuveen Investments, LLC; Managing Chicago, IL 60606 Director (since 2005) of Nuveen Asset Management; Managing Director (2004-2005), formerly, Vice President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3)
118 Nuveen Investments
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o STEPHEN D. FOY 5/31/54 Vice President 1998 200 Vice President (since 1993) and Funds 333 W. Wacker Drive and Controller Controller (since 1998) of Nuveen Investments, Chicago, IL 60606 LLC; Vice President (since 2005) of Nuveen Asset Management; Certified Public Accountant. o WILLIAM T. HUFFMAN 5/7/69 Vice President 2009 200 Chief Operating Officer, Municipal Fixed 333 W. Wacker Drive Income (since 2008) of Nuveen Asset Chicago, IL 60606 Management; previously, Chairman, President and Chief Executive Officer (2002 - 2007) of Northern Trust Global Advisors, Inc. and Chief Executive Officer (2007) of Northern Trust Global Investments Limited; CPA. o WALTER M. KELLY 2/24/70 Chief Compliance 2003 200 Senior Vice President (since 2008), Vice 333 W. Wacker Drive Officer and President (2006-2008) formerly, Assistant Vice Chicago, IL 60606 Vice President President and Assistant General Counsel (2003-2006) of Nuveen Investments, LLC; Vice President (since 2006) and Assistant Secretary (since 2008) of Nuveen Asset Management. o DAVID J. LAMB 3/22/63 Vice President 2000 200 Senior Vice President (since 2009), formerly, 333 W. Wacker Drive Vice President (2000-2009) of Nuveen Chicago, IL 60606 Investments, LLC; Vice President (since 2005) of Nuveen Asset Management; Certified Public Accountant. o TINA M. LAZAR 8/27/61 Vice President 2002 200 Senior Vice President (since 2009), formerly, 333 W. Wacker Drive Vice President of Nuveen Investments, LLC Chicago, IL 60606 (1999-2009); Vice President of Nuveen Asset Management (since 2005). o LARRY W. MARTIN 7/27/51 Vice President 1988 200 Vice President, Assistant Secretary and 333 W. Wacker Drive and Assistant Assistant General Counsel of Nuveen Chicago, IL 60606 Secretary Investments, LLC; Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); formerly, Vice President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3) o KEVIN J. MCCARTHY 3/26/66 Vice President 2007 200 Managing Director (since 2008), formerly, Vice 333 W. Wacker Drive and Secretary President (2007-2008), Nuveen Investments, Chicago, IL 60606 LLC; Managing Director (since 2008), formerly, Vice President, and Assistant Secretary, Nuveen Asset Management, and Nuveen Investments Holdings, Inc.; Vice President (since 2007) and Assistant Secretary, Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQ Holdings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Nuveen Investment Solutions, Inc. (since 2007); prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007).
Nuveen Investments 119
NUMBER OF PORTFOLIOS NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S) AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS: o JOHN V. MILLER 4/10/67 Vice President 2007 200 Managing Director (since 2007), formerly, Vice 333 W. Wacker Drive President (2002-2007) of Nuveen Asset Chicago, IL 60606 Management and Nuveen Investments, LLC; Chartered Financial Analyst. o GREGORY MINO 1/4/71 Vice President 2009 200 Vice President of Nuveen Investments, LLC 333 W. Wacker Drive (since 2008); previously, Director (2004-2007) Chicago, IL 60606 and Executive Director (2007-2008) of UBS Global Asset Management; previously, Vice President (2000-2003) and Director (2003-2004) of Merrill Lynch Investment Managers; Chartered Financial Analyst. o CHRISTOPHER M. ROHRBACHER 8/1/71 Vice President 2008 200 Vice President, Nuveen Investments, LLC (since 333 W. Wacker Drive and Assistant 2008); Vice President and Assistant Secretary, Chicago, IL 60606 Secretary Nuveen Asset Management (since 2008); prior thereto, Associate, Skadden, Arps, Slate Meagher & Flom LLP (2002-2008). o JAMES F. RUANE 7/3/62 Vice President 2007 200 Vice President, Nuveen Investments, LLC (since 333 W. Wacker Drive and Assistant 2007); prior thereto, Partner, Deloitte & Chicago, IL 60606 Secretary Touche USA LLP (2005-2007), formerly, senior tax manager (2002-2005); Certified Public Accountant. o MARK L. WINGET 12/21/68 Vice President 2008 200 Vice President, Nuveen Investments, LLC (since 333 W. Wacker Drive and Assistant 2008); Vice President and Assistant Secretary, Chicago, IL 60606 Secretary Nuveen Asset Management (since 2008); prior thereto, Counsel, Vedder Price P.C. (1997-2007).
(1) Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (2) Mr. Amboian is an interested trustee because of his position with Nuveen Investments, Inc. and certain of its subsidiaries, which are affiliates of the Nuveen Funds. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 120 Nuveen Investments Reinvest Automatically Easily and Conveniently Nuveen makes reinvesting easy. A phone call is all it takes to set up your reinvestment account. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued Nuveen Investments 121 Reinvest Automatically Easily and Conveniently (continued) by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 122 Nuveen Investments Glossary of Terms Used in this Report o AUCTION RATE BOND: An auction rate bond is a security whose interest payments are adjusted periodically through an auction process, which process typically also serves as a means for buying and selling the bond. Auctions that fail to attract enough buyers for all the shares offered for sale are deemed to have "failed", with current holders receiving a formula-based interest rate until the next scheduled auction. o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the invest- ment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. o INVERSE FLOATERS: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short- term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportion- ately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. Nuveen Investments 123 Glossary of Terms Used in this Report (continued) o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by subtracting the liabilities of the Fund (including any Preferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of common shares outstanding. Fund NAVs are calculated at the end of each business day. o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 124 Nuveen Investments Notes Nuveen Investments 125 Notes 126 NUVEEN INVESTMENTS Other Useful Information BOARD OF DIRECTORS/TRUSTEES John P. Amboian Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Judith M. Stockdale Carole E. Stone Terence J. Toth FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION You may obtain (i) each Fund's quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the twelve-month period ended June 30, 2008, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at (202) 942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 100 F Street NE, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange (NYSE) the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the SEC the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. COMMON AND PREFERRED SHARE INFORMATION Each Fund intends to repurchase and/or redeem shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds repurchased and/or redeemed shares of their common and/or preferred stock as shown in the accompanying table. COMMON SHARES PREFERRED SHARES FUND REPURCHASED REDEEMED - -------------------------------------------------------------------------------- NQJ 30,600 487 NNJ 12,900 -- NXJ 7,200 39 NUJ 2,800 76 NQP 27,500 810 NPY 51,800 753 NXM 2,000 100 NVY -- 220 - -------------------------------------------------------------------------------- Any future repurchases and/or redemptions will be reported to shareholders in the next annual or semi-annual report. Nuveen Investments 127 Nuveen Investments: Serving Investors for Generations Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Nuveen Investments is a global investment management firm that seeks to help secure the long-term goals of institutions and high net worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, the Company managed $115 billion of assets on March 31, 2009. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or NUVEEN INVESTMENTS, 333 W. WACKER DR., CHICAGO, IL 60606. Please read the prospectus carefully before you invest or send money. Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF o Share prices o Fund details o Daily financial news o Investor education o Interactive planning tools It's not what you earn, it's what you keep.(R) Distributed by Nuveen Investments, LLC 333 West Wacker Drive Chicago, IL 60606 www.nuveen.com EAN-B-0409D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/CEF/Info/Shareholder. (To view the code, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees ("Board") determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) - ------------------------------------------------------------------------------------------------------------------------------------ April 30, 2009 $ 10,310 $ 0 $ 0 $ 850 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ April 30, 2008 $ 10,274 $ 0 $ 500 $ 800 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees." (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees," "Audit Related Fees," and "Tax Fees." SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS - ------------------------------------------------------------------------------------------------------------------------------------ April 30, 2009 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------ April 30, 2008 $ 0 $ 0 $ 0 - ------------------------------------------------------------------------------------------------------------------------------------ Percentage approved 0% 0% 0% pursuant to pre-approval exception - ------------------------------------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the pre-approval exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL - ------------------------------------------------------------------------------------------------------------------------------- April 30, 2009 $ 850 $ 0 $ 0 $ 850 April 30, 2008 $ 1,300 $ 0 $ 0 $ 1,300
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Jack B. Evans, Terence J. Toth, William J. Schneider and David J. Kundert. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund 2 Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: NUMBER OF PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS - -------------------------------------------------------------------------------- Cathryn P. Steeves Registered Investment Company 44 $7.60 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of April 30, 2009. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of April 30, 2009, the S&P/Investortools Municipal Bond index was comprised of 52,532 securities with an aggregate current market value of $1,047 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. In connection with the acquisition of Nuveen Investments, Inc., by a group of investors led by Madison Dearborn Partners in November 2007, certain employees, including portfolio managers, received profit interests in Nuveen's parent. These profit interests entitle the holders to participate in the appreciation in the value of Nuveen beyond the issue date and vest over five to seven years, or earlier in the case of a liquidity event. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of the April 30, 2009, the portfolio manager beneficially owned the following dollar range of equity securities issued by the registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE BENEFICIALLY OWNED OF EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED BENEFICIALLY BY NAM'S MUNICIPAL NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM - ------------------------------------------------------------------------------------------------------------------------------ Cathryn P. Steeves Nuveen New Jersey Dividend Advantage Municipal Fund 2 $0 $10,000-$50,000
PORTFOLIO MANAGER BIO: Cathryn P. Steeves, PhD, Vice President of NAM, is currently a portfolio manager for 45 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Ms. Steeves has an undergraduate degree from Wake Forest University as well as an MA, an MPhil and a PhD from Columbia University. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)* TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR UNIT) PROGRAMS PROGRAMS AUGUST 7-31, 2008 0 0 450,000 SEPTEMBER 1-30, 2008 0 0 450,000 OCTOBER 1-31, 2008 0 0 450,000 NOVEMBER 1-30, 2008 0 0 450,000 DECEMBER 1-31, 2008 0 0 450,000 JANUARY 1-31, 2009 0 0 450,000 FEBRUARY 1-28, 2009 2,800 $10.41 2,800 447,200 MARCH 1-31, 2009 0 0 447,200 APRIL 1-30, 2009 0 0 447,200 TOTAL 2,800
* The registrant's repurchase program, which authorized the repurchase of 450,000 shares, was announced August 7, 2008. Any repurchases made by the registrant pursuant to the program were made through open-market transactions. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/CEF/Info/ Shareholder and there were no amendments during the period covered by this report. (To view the code, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen New Jersey Dividend Advantage Municipal Fund 2 ----------------------------------------------------------- By (Signature and Title) /s/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: July 8, 2009 ------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title) /s/ Gifford R. Zimmerman ---------------------------------------------- Gifford R. Zimmerman Chief Administrative Officer (principal executive officer) Date: July 8, 2009 ------------------------------------------------------------------- By (Signature and Title) /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: July 8, 2009 ------------------------------------------------------------------- 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: July 8, 2009 /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: July 8, 2009 /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 April 30, 2009 (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: July 8, 2009 ----------------------- /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-----