NASDAQ Premium Income & Growth Fund

 

 

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 811-21983

NASDAQ Premium Income & Growth Fund Inc.

(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: December 31

Date of reporting period: June 30, 2011

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.

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Closed-End Funds

 

Nuveen Investments

Closed-End Funds

Seeking to provide a high level of after-tax total return.

Semi-Annual Report

June 30, 2011

 

NASDAQ Premium
Income & Growth
Fund Inc.

QQQX

    

Dow 30SM Premium &

Dividend Income
Fund Inc.

DPD

    

Dow 30SM Enhanced

Premium & Income

Fund Inc.

DPO

 

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Table of Contents

 

Chairman’s Letter to Shareholders

      4   

Portfolio Managers’ Comments

      5   

Distribution and Share Price Information

      8   

Performance Overviews

      10   

Shareholder Meeting Report

      13   

Portfolios of Investments

      14   

Statement of Assets and Liabilities

      27   

Statement of Operations

      28   

Statement of Changes in Net Assets

      29   

Financial Highlights

      30   

Notes to Financial Statements

      32   

Reinvest Automatically, Easily and Conveniently

      41   

Glossary of Terms Used in this Report

      46   

Other Useful Information

      47   

Chairman’s

Letter to Shareholders

 

LOGO

 

Dear Shareholders,

The global economy continues to be weighed down by an unusual combination of pressures facing the larger developed economies. Japanese leaders continue to work through the economic aftereffects of the March 2011 earthquake and tsunami. Political leaders in Europe and the U.S. have resolved some of the near term fiscal problems, but the financial markets are not convinced that these leaders are able to address more complex longer term fiscal issues. Despite improved earnings and capital increases, the largest banks in these countries continue to be vulnerable to deteriorating mortgage portfolios and sovereign credit exposure, adding another source of uncertainty to the global financial system.

In the U.S., recent economic statistics indicate that the economic recovery may be losing momentum. Consumption, which represents about 70% of the gross domestic product, faces an array of challenges from seemingly intractable declines in housing values, increased energy costs and limited growth in the job market. The failure of Congress and the administration to agree on the debt ceiling increase on a timely basis and the deep divisions between the political parties over fashioning a balanced program to address growing fiscal imbalances that led to the recent S&P ratings downgrade add considerable uncertainty to the domestic economic picture.

On a more positive note, corporate earnings continue to hold up well and the municipal bond market is recovering from recent weakness as states and municipalities implement various programs to reduce their budgetary deficits. In addition, the Federal Reserve System has made it clear that it stands ready to take additional steps should the economic recovery falter. However, there are concerns that the Fed is approaching the limits of its resources to intervene in the economy.

These perplexing times highlight the importance of professional investment management. Your Nuveen investment team is working hard to develop an appropriate response to increased risk, and they continue to seek out opportunities created by stressful markets using proven investment disciplines designed to help your Fund achieve its investment objectives. On your behalf, we monitor their activities to assure that they maintain their investment disciplines.

As always, I encourage you to contact your financial consultant if you have any questions about your investment in a Nuveen Fund. On behalf of the other members of your Fund Board, we look forward to continuing to earn your trust in the months and years ahead.

Sincerely,

LOGO

Robert P. Bremner

Chairman of the Board

August 23, 2011

 

 

  4       Nuveen Investments

Portfolio Managers’ Comments

 

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 managers 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.

 

NASDAQ Premium Income & Growth Fund, Inc. (QQQX)

Dow 30SM Premium & Dividend Income Fund, Inc. (DPD)

Dow 30SM Enhanced Premium & Income Fund, Inc. (DPO)

The Funds are managed by Keith Hembre, CFA, Managing Director of Nuveen HydePark Group, LLC, and Nuveen Asset Management, LLC, David Friar, Portfolio Manager of HydePark and Nuveen Asset Management, LLC, and James Colon, CFA, Portfolio Manager and Senior Quantitative Analyst of Hyde Park and Nuveen Asset Management, LLC. Here the team talks about their management strategies and the performance of the Funds for the six-months ended June 30, 2011.

Over this period, what key strategies were used to manage the Funds?

The NASDAQ Premium Income & Growth Fund (QQQX) pursues a two-part investment strategy; an equity strategy and an option overlay strategy. The core equity strategy is to invest in an optimized portfolio of equities designed to track the price movement of the NASDAQ-100 Stock Index, a market cap weighted index.

The option overlay is designed to provide incremental cash flow and serves as a risk management strategy by lowering the overall beta of the Fund. Index call options are written on approximately 30-50% of the Fund’s net asset value.

The Dow 30SM Premium & Dividend Income Fund (DPD) pursues a two-part investment strategy, an equity strategy and an option overlay strategy. The core equity strategy is to invest in a portfolio of equities designed to track the price movement of the Dow Jones Industrial Average (DJIA). As the Dow Jones Industrial Average is a price weighted index, this is accomplished by holding an equal number of shares in each index constituent.

The option overlay is designed to provide incremental cash flow and serves as a risk management strategy by lowering the overall beta of the Fund. Call options are written on all the stocks held in the portfolio, generally on a pro-rata basis, between 40%-60% of the notional equity exposure.

Similar to DPD, the Dow 30SM Enhanced Premium & Dividend Income Fund (DPO) pursues a two-part investment strategy, an equity strategy and an option overlay strategy. The core equity strategy is to invest in a portfolio of equities designed to track the price movement of the Dow Jones Industrial Average. Total exposure to the equity strategy is augmented by the purchase of other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (i.e. leverage) to the return of the DJIA stocks.

The option overlay is designed to provide incremental cash flow and serves as a risk management strategy by lowering the overall beta of the Fund. Call options are written on all

 

Nuveen Investments     5   

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.

* Six-month returns are cumulative; all other returns are annualized.

 

** The since inception for QQQX and its comparative index are from 1/30/07, for DPD and its comparative index are from 4/29/05, and for DPO and its comparative index are from 5/30/07.

 

1. The NASDAQ-100 Index includes 100 of the largest domestic and international nonfinancial securities listed on The Nasdaq Stock Market based on market capitalization. Returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in this index.

 

2. The Dow Jones Industrial Average tracks the performance of 30 large cap companies. Returns do not include the effects of any sales charges or management fees. It is not possible to invest directly in this average.

 

the stocks held in the portfolio, generally on a pro-rata basis. The overlay percentage is typically between 40%-60% of the total notional exposure of each of the underlying stocks within the portfolio.

How did the Funds perform over this period?

The performance of the Funds, as well as comparative indexes, is presented in the accompanying table.

Average Annual Total Returns on Net Asset Value*

For periods ended 6/30/11

 

      6-Month        1-Year        5-Year        Since
Inception**		  

QQQX

      3.88%           26.68%           N/A           4.96%   

Nasdaq 100 Index1

      4.83%           33.69%           N/A           6.30%   

DPD

      7.10%           26.29%           5.39%           6.03%   

Dow Jones Industrial Average2

      8.59%           30.37%           4.96%           6.20%   

DPO

      9.08%           34.23%           N/A           1.08%   

Dow Jones Industrial Average2

      8.59%           30.37%           N/A           0.68%   

For the six-month period ended June 30, 2011, DPO outperformed its comparative benchmark, while QQQX and DPD underperformed their benchmarks.

QQQX seeks to dampen the beta of the overall portfolio by selling call options on a percentage of the Fund’s net asset value. This strategy provides incremental cash flow to the Fund, but also allows the Fund to participate fully in any equity market rally for those portions of the Fund’s assets that are not subject to the call overwrite, typically between 50-70% of the Fund’s assets. Those portions of the Fund subject to the overwrite have upside potential capped at the amount of premium received for the option. The downside is buffered by the amount of the cash flow premium received. In flat or declining markets, the option premium can enhance total returns relative to the benchmark. In rising markets, the options can hurt the Funds total return relative to the benchmark. The reporting period was marked by rising markets. As a result, the Fund underperformed for the period.

The equity portfolio of DPD is constructed to substantially replicate the securities in the Dow Jones Industrial Average, its performance is expected to be very similar to this measure.

As described previously, the Fund seeks to dampen the beta of the overall portfolio by selling call options on a pro-rata percentage of each name held in the portfolio. The options sold provide incremental cash flow in exchange for giving up the potential upside of each stock above the options strike. The downside is buffered by the amount of the cash flow premium received. In flat or declining markets, the option premium can enhance total returns relative to the benchmark. In rising markets, the options can hurt the Fund’s total return relative to the benchmark. During first half of 2011, despite the generally rising market, the option overlay strategy added incrementally to the Fund’s total return. However, the Fund’s underperformance for the period was attributable to the disparity between the percentage holding of each stock in the Fund versus the DJIA index itself.

DPO seeks to dampen the beta of the overall portfolio by selling call options on a pro-rata percentage of each name held in the portfolio. The options sold provide incremental cash

 

  6       Nuveen Investments

flow in exchange for giving up the potential upside of each stock above the options strike. The downside is buffered by the amount of the cash flow premium received. In flat or declining markets, the option premium can enhance total returns relative to the benchmark. In rising markets, the options can hurt the Funds total return relative to the benchmark. During the first half of 2011, despite the generally rising market, the option overlay strategy positively contributed to the Fund’s outperformance versus the DJIA for the reporting period.

The Fund also invested in swaps that receive the total return of the Dow Jones Industrial Average while paying a floating rate of interest; adding leverage and equity exposure to the Fund.

RISK CONSIDERATIONS

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Past performance is no guarantee of future results. Fund common shares are subject to a

variety of risks, including:

Investment Risk. The possible loss of the entire principal amount that you invest.

Price Risk. Shares of closed-end investment companies like the Funds frequently trade at a discount to their net asset value (NAV). Your common shares at any point in time may be worth less than your original investment, even after taking into account the reinvestment of Fund dividends and distributions.

Tax Risk. The tax treatment of Fund distributions may be affected by new IRS interpretations of the Internal Revenue Code and future changes in tax laws and regulations. This is particularly true for funds employing a managed distribution program.

Common Stock Risk. Common stock returns often have experienced significant volatility.

Call Option Risk. The value of call options sold (written) by the Funds will fluctuate. The Funds may not participate in any appreciation of their equity portfolios as fully as they would if the Funds did not sell call options. In addition, the Funds will continue to bear the risk of declines in the value of the equity portfolios.

Derivatives Strategy Risk. Derivative securities, such as calls, puts, warrants, swaps and forwards, carry risks different from, and possibly greater than, the risks associated with the underlying investments.

Index Call Option Risk. Because index options are settled in cash, sellers of index call options, such as the Funds, cannot provide in advance for their potential settlement obligations by acquiring and holding the underlying securities.

 

Nuveen Investments     7   

Distribution and Share Price Information

 

The following information regarding your Fund’s distributions is current as of June 30, 2011, and likely will vary over time based on the Fund’s investment activities and portfolio investment value changes.

During the six-month reporting period, QQQX did not make any changes to its quarterly distribution to shareholders. Effective January 1, 2011, DPD and DPO began paying distributions to shareholders quarterly, with their first quarterly distributions payable to shareholders during April 2011. DPD and DPO did not make any changes to their subsequent quarterly distributions to shareholders. Some of the important factors affecting the amount and composition of these distributions are summarized below.

Each Fund has a managed distribution program. The goal of this program is to provide shareholders with relatively consistent and predictable cash flow by systematically converting the Fund’s expected long-term return potential into regular distributions. As a result, regular distributions throughout the year are likely to include a portion of expected long-term gains (both realized and unrealized), along with net investment income.

Important points to understand about the managed distribution program are:

 

•  

Each Fund seeks to establish a relatively stable distribution rate that roughly corresponds to the projected total return from its investment strategy over an extended period of time. However, you should not draw any conclusions about a Fund’s past or future investment performance from its current distribution rate.

 

•  

Actual returns will differ from projected long-term returns (and therefore a Fund’s distribution rate), at least over shorter time periods. Over a specific timeframe, the difference between actual returns and total distributions will be reflected in an increasing (returns exceed distributions) or a decreasing (distributions exceed returns) Fund net asset value.

 

•  

Each distribution is expected to be paid from some or all of the following sources:

 

  •  

net investment income (regular interest and dividends),

 

  •  

realized capital gains, and

 

  •  

unrealized gains, or, in certain cases, a return of principal (non-taxable distributions).

 

•  

A non-taxable distribution is a payment of a portion of a Fund’s capital. When a Fund’s returns exceed distributions, it may represent portfolio gains generated, but not realized as a taxable capital gain. In periods when a Fund’s return falls short of distributions, the shortfall will represent a portion of your original principal, unless the shortfall is offset during other time periods over the life of your investment (previous or subsequent) when a Fund’s total return exceeds distributions.

 

•  

Because distribution source estimates are updated during the year based on a Fund’s performance and forecast for its current fiscal year (which is the calendar year for each Fund), estimates on the nature of your distributions provided at the time distributions are

 

  8       Nuveen Investments

 

paid may differ from both the tax information reported to you in your Fund’s IRS From 1099 statement provided at year end, as well as the ultimate economic sources of distributions over the life of your investment.

The following table provides estimated information regarding each Fund’s distributions and total return performance for the six months ended June 30, 2011. This information is provided on a tax basis rather than a generally accepted accounting principles (GAAP) basis. This information is intended to help you better understand whether the Fund’s returns for the specified time period were sufficient to meet each Fund’s distributions.

 

As of 6/30/11    QQQX      DPD      DPO  

Inception date

      1/30/07         4/29/05         5/30/07   

Six months ended June 30, 2011:

         

Per share distribution:

         

From net investment income

    $ 0.00       $ 0.11       $ 0.08   

From realized capital gains

      0.63         0.00         0.43   

Return of capital

      0.00         0.51         0.00   
  

 

 

     

 

 

     

 

 

  

Total per share distribution

    $ 0.63       $ 0.62       $ 0.51   
  

 

 

     

 

 

     

 

 

  

Annualized distribution rate on NAV

      8.62 %       8.38 %       8.94 % 

Average annual total returns:

         

Six-Month (Cumulative) on NAV

      3.88 %       7.10 %       9.08 % 

1-Year on NAV

      26.68 %       26.29 %       34.23 % 

5-Year on NAV

      N/A         5.39 %       N/A   

Since inception on NAV

      4.96 %       6.03 %       1.08 % 

Share Repurchases and Share Price Information

As of June 30, 2011, and since the inception of the Funds’ repurchase programs, QQQX, DPD and DPO have not repurchased any of their outstanding shares.

At June 30, 2011, the Funds’ share prices were trading as (+) premiums/(-) discounts relative to their NAVs as shown in the accompanying table.

 

Fund   

6/30/11

(+) Premium/

(-) Discount

       

Six-Month
Average

(-) Discount

  

QQQX

      (-)1.57%           (-)2.45%   

DPD

      (-)1.76%           (-)0.45%   

DPO

      0.00%           (-)1.51%   

 

Nuveen Investments     9   

QQQX

Performance

OVERVIEW

     

NASDAQ Premium Income & Growth Fund Inc.

 

as of June 30, 2011

 

 

Fund Snapshot        
Share Price     $14.38   
Net Asset Value (NAV)     $14.61   
Premium/(Discount) to NAV     -1.57%   
Current Distribution Rate1     8.79%   
Net Assets Applicable to
Common Shares ($000)		     $269,525   

Average Annual Total Return

(Inception 1/30/07)

  

  

     On Share Price        On NAV  
6-Month (cumulative)     6.46%           3.88%   
1-Year     31.74%           26.68%   
Since Inception     4.17%           4.96%   

Portfolio Composition

(as a % of total investments)2,3

        
Software     18.1%   
Computers & Peripherals     15.0%   
Semiconductors & Equipment     9.5%   
Internet Software & Services     9.4%   
Communications Equipment     8.1%   
Media     6.2%   
Internet & Catalog Retail     5.5%   
Biotechnology     5.2%   
IT Services     2.2%   
Specialty Retail     2.0%   
Pharmaceuticals     1.9%   
Health Care Providers & Services     1.7%   
Hotels Restaurants & Leisure     1.6%   
Short-Term Investments     1.0%   
Other     12.6%   

Portfolio Allocation (as a % of total investments)2,3

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2010-2011 Quarterly Distributions Per Share

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Share Price Performance — Weekly Closing Price

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   Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.

1 Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.

2 Holdings are subject to change.

3 Excluding investments in derivatives.

 

 

  10       Nuveen Investments

DPD

Performance

OVERVIEW

     

Dow 30SM Premium & Dividend Income Fund Inc.

 

as of June 30, 2011

 

 

Fund Snapshot        
Share Price     $14.53   
Net Asset Value (NAV)     $14.79   
Premium/(Discount) to NAV     -1.76%   
Current Distribution Rate1     8.51%   
Net Assets Applicable to
Common Shares ($000)		     $177,728   

Average Annual Total Return

(Inception 4/29/05)

  

  

     On Share Price        On NAV  
6-Month (cumulative)     4.25%           7.10%   
1-Year     21.18%           26.29%   
5-Year     5.21%           5.39%   
Since Inception     4.93%           6.03%   

Portfolio Composition

(as a % of total investments)2,3

        
Oil, Gas, & Consumable Fuels     11.1%   
IT Services     10.3%   
Aerospace & Defense     9.8%   
Pharmaceuticals     7.4%   
Industrial Conglomerates     6.8%   
Machinery     6.4%   
Hotels, Restaurants & Leisure     5.1%   
Diversified Telecommunication Services     4.1%   
Beverages     4.0%   
Household Products     3.8%   
Insurance     3.5%   
Chemicals     3.2%   
Food & Staples Retailing     3.2%   
Diversified Financial Services     3.1%   
Consumer Finance     3.1%   
Short-Term Investments     1.4%   
Other     13.7%   

Portfolio Allocation (as a % of total investments)2,3

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2010-2011 Distributions Per Share4

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Share Price Performance — Weekly Closing Price

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   Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.

1 Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.

2 Holdings are subject to change.

3 Excluding investments in derivatives.

4 Effective January 1, 2011, the Fund began paying distributions to shareholders quarterly, with its first distribution of $.3090 per share payable April 1, 2011.

 

 

Nuveen Investments     11   

DPO

Performance

OVERVIEW

   

Dow 30SM Enhanced Premium & Income Fund Inc.

 

as of June 30, 2011

 

 

Fund Snapshot        
Share Price     $11.41   
Net Asset Value (NAV)     $11.41   
Premium/(Discount) to NAV     0.00%   
Current Distribution Rate1     8.94%   
Net Assets Applicable to
Common Shares ($000)		     $316,550   

Average Annual Total Return

(Inception 5/30/07)

  

  

     On Share Price        On NAV  
6-Month (cumulative)     14.88%           9.08%   
1-Year     28.80%           34.23%   
Since Inception     -0.12%           1.08%   

Portfolio Composition

(as a % of total investments)2,3

        
Oil, Gas, & Consumable Fuels     10.4%   
IT Services     9.7%   
Aerospace & Defense     9.2%   
Pharmaceuticals     6.9%   
Industrial Conglomerates     6.4%   
Machinery     6.0%   
Hotels, Restaurants & Leisure     4.8%   
Diversified Telecommunication Services     3.9%   
Beverages     3.8%   
Household Products     3.6%   
Insurance     3.3%   
Chemicals     3.1%   
Food & Staples Retailing     3.0%   
Diversified Financial Services     2.9%   
Consumer Finance     2.9%   
Short-Term Investments     7.4%   
Other     12.7%   

Portfolio Allocation (as a % of total investments)2,3

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2010-2011 Distributions Per Share4

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Share Price Performance — Weekly Closing Price

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   Refer to the Glossary of Terms Used in this Report for further definition of the terms used within this Fund’s Performance Overview page.

1 Current Distribution Rate is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a return of capital for tax purposes.

2 Holdings are subject to change.

3 Excluding investments in derivatives.

4 Effective January 1, 2011, the Fund began paying distributions to shareholders quarterly, with its first distribution of $.2550 per share payable April 1, 2011.

 

 

  12       Nuveen Investments

Shareholder Meeting Report (Unaudited)

 

The annual meeting of shareholders was held in the offices of Nuveen Investments on May 6, 2011; at this meeting the shareholders were asked to vote on the election of Board Members.

 

      QQQX
Common
Shares		        DPD
Common
Shares		        DPO
Common
Shares		  

Approval of the Board Members was reached as follows:

             

John P. Amboian

             

For

      17,044,798           10,287,031           23,574,263   

Withhold

      422,003           268,319           744,783   

Total

      17,466,801           10,555,350           24,319,046   

Robert P. Bremner

             

For

      17,011,637           10,277,443           23,572,555   

Withhold

      455,164           277,907           746,491   

Total

      17,466,801           10,555,350           24,319,046   

Jack B. Evans

             

For

      17,010,398           10,291,107           23,594,121   

Withhold

      456,403           264,243           724,925   

Total

      17,466,801           10,555,350           24,319,046   

William C. Hunter

             

For

      16,992,708           10,296,174           23,599,072   

Withhold

      474,093           259,176           719,974   

Total

      17,466,801           10,555,350           24,319,046   

David J. Kundert

             

For

      16,987,085           10,292,623           23,558,683   

Withhold

      479,716           262,727           760,363   

Total

      17,466,801           10,555,350           24,319,046   

William J. Schneider

             

For

      17,041,524           10,292,823           23,597,902   

Withhold

      425,277           262,527           721,144   

Total

      17,466,801           10,555,350           24,319,046   

Judith M. Stockdale

             

For

      17,037,654           10,295,500           23,593,009   

Withhold

      429,147           259,850           726,037   

Total

      17,466,801           10,555,350           24,319,046   

Carole E. Stone

             

For

      17,057,646           10,296,319           23,589,148   

Withhold

      409,155           259,031           729,898   

Total

      17,466,801           10,555,350           24,319,046   

Virginia L. Stringer

             

For

      17,005,586           10,297,657           23,576,426   

Withhold

      461,215           257,693           742,620   

Total

      17,466,801           10,555,350           24,319,046   

Terence J. Toth

             

For

      17,056,877           10,288,173           23,578,369   

Withhold

      409,924           267,177           740,677   

Total

      17,466,801           10,555,350           24,319,046   

 

Nuveen Investments     13   

QQQX

 

NASDAQ Premium Income & Growth Fund Inc.

Portfolio of Investments

 

June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Common Stocks – 102.1%              
  Aerospace & Defense – 0.7%              
  8,359     

General Dynamics Corporation

               $ 622,913   
  2,886     

Lockheed Martin Corporation

                 233,679   
  2,049     

Precision Castparts Corporation

                 337,368   
  8,962     

United Technologies Corporation

                       793,227   
 

Total Aerospace & Defense

                       1,987,187   
  Air Freight & Logistics – 0.4%              
  2,810     

FedEx Corporation

                 266,529   
  8,400     

United Parcel Service, Inc., Class B

                 612,612   
  4,130     

UTI Worldwide, Inc.

                       81,320   
 

Total Air Freight & Logistics

                       960,461   
  Airlines – 0.1%              
  7,020     

Ryanair Holdings PLC

                 205,967   
  4,120     

Southwest Airlines Co.

                       47,050   
 

Total Airlines

                       253,017   
  Auto Components – 0.3%              
  1,430     

Autoliv Inc.

                 112,184   
  1,200     

BorgWarner Inc.

                 96,948   
  11,160     

Gentex Corporation

                 337,367   
  1,200     

Johnson Controls, Inc.

                 49,992   
  4,300     

Lear Corporation

                       229,964   
 

Total Auto Components

                       826,455   
  Automobiles – 0.0%              
  1,390     

Tesla Motors Inc.

                 40,491   
  2,120     

Thor Industries, Inc.

                       61,141   
 

Total Automobiles

                       101,632   
  Beverages – 0.2%              
  3,010     

Brown-Forman Corporation

                 224,817   
  3,180     

Hansen Natural Corporation

                 257,421   
  1,730     

PepsiCo, Inc.

                       121,844   
 

Total Beverages

                       604,082   
  Biotechnology – 5.3%              
  14,640     

Alkermes Inc.

                 272,304   
  12,140     

Amylin Pharmaceuticals Inc.

                 162,190   
  11,850     

BioMarin Pharmaceutical Inc.

                 322,439   
  66,429     

Celgene Corporation

                 4,006,997   
  9,600     

Cubist Pharmaceuticals Inc.

                 345,504   
  3,230     

Dendreon Corporation

                 127,391   
  2,290     

Emergent BioSolutions, Inc.

                 51,640   
  3,210     

Enzon Inc.

                 32,261   
  3,000     

Exelixis, Inc.

                 26,880   
  3,780     

Genomic Health, Inc.

                 105,500   
  24,710     

Geron Corporation

                 99,087   
  122,724     

Gilead Sciences, Inc.

                 5,082,001   
  25,978     

Grifols SA

                 195,095   
  5,370     

Halozyme Therapeutics, Inc.

                 37,107   
  5,470     

Human Genome Sciences, Inc.

                 134,234   
  6,110     

Immunogen, Inc.

                 74,481   
  9,716     

Incyte Pharmaceuticals Inc.

                 184,021   
  880     

Intermune, Inc.

                 31,548   
  10,290     

ISIS Pharmaceuticals, Inc.

                 94,256   
  37,200     

Lexicon Genetics, Inc.

                 65,472   
  7,160     

MannKind Corporation

                 27,208   
  13,280     

Micromet, Inc.

                 76,227   
  13,100     

Myriad Genentics Inc.

                 297,501   
  5,210     

Onyx Pharmaceuticals Inc.

                 183,913   
  4,750     

Opko Health Inc.

                 17,528   
  5,740     

Regeneron Pharmaceuticals, Inc.

                 325,515   
  12,300     

Seattle Genetics, Inc.

                 252,396   
  1,310     

Targacept, Inc.

                 27,602   
  3,100     

Theravance Inc.

                 68,851   
  6,210     

United Therapeutics Corporation

                 342,171   
  25,630     

Vertex Pharmaceuticals Inc.

                       1,332,504   
 

Total Biotechnology

                       14,401,824   

 

  14       Nuveen Investments

Shares     Description (1)                        Value  
                               
  Capital Markets – 0.4%              
  415     

Affiliated Managers Group Inc.

               $ 42,102   
  1,520     

Franklin Resources, Inc.

                 199,561   
  11,804     

SEI Investments Company

                 265,708   
  5,972     

T. Rowe Price Group Inc.

                 360,350   
  5,230     

TD Ameritrade Holding Corporation

                       102,037   
 

Total Capital Markets

                       969,758   
  Chemicals – 0.5%              
  2,170     

Air Products & Chemicals Inc.

                 207,409   
  6,060     

Ecolab Inc.

                 341,663   
  7,928     

Methanex Corporation

                 248,781   
  1,180     

Monsanto Company

                 85,597   
  3,500     

Praxair, Inc.

                       379,365   
 

Total Chemicals

                       1,262,815   
  Commercial Services & Supplies – 0.6%              
  3,900     

Cintas Corporation

                 128,817   
  2,620     

Copart Inc.

                 122,092   
  2,710     

Iron Mountain Inc.

                 92,384   
  7,720     

KAR Auction Services Inc.

                 145,985   
  1,980     

Republic Services, Inc.

                 61,083   
  3,810     

Rollins Inc.

                 77,648   
  10,124     

Tetra Tech, Inc.

                 227,790   
  3,794     

United Stationers, Inc.

                 134,421   
  4,860     

Waste Connections Inc.

                 154,208   
  9,560     

Waste Management, Inc.

                       356,301   
 

Total Commercial Services & Supplies

                       1,500,729   
  Communications Equipment – 8.3%              
  1,440     

ADTRAN, Inc.

                 55,742   
  2,850     

Arris Group Inc.

                 33,089   
  613,407     

Cisco Systems, Inc.

                 9,575,283   
  22,190     

LM Ericsson Telefonaktiebolget, Sponsored ADR

                 319,092   
  186,824     

QUALCOMM, Inc.

                 10,609,735   
  60,574     

Research In Motion Limited

                 1,747,560   
  10,531     

Tellabs Inc.

                       48,548   
 

Total Communications Equipment

                       22,389,049   
  Computers & Peripherals – 15.5%              
  100,934     

Apple, Inc., (2)

                 33,880,516   
  219,510     

Dell Inc.

                 3,659,232   
  8,940     

EMC Corporation

                 246,297   
  10,420     

Hewlett-Packard Company

                 379,288   
  4,920     

Logitech International SA

                 55,301   
  45,770     

Network Appliance Inc.

                 2,415,741   
  25,200     

SanDisk Corporation

                       1,045,800   
 

Total Computers & Peripherals

                       41,682,175   
  Containers & Packaging – 0.1%              
  3,935     

Silgan Holdings, Inc.

                       161,217   
  Distributors – 0.2%              
  20,543     

LKQ Corporation

                       535,967   
  Diversified Consumer Services – 0.2%              
  5,882     

Career Education Corporation

                 124,404   
  4,000     

Education Management Corporation

                 95,760   
  1,701     

ITT Educational Services, Inc.

                 133,086   
  1,307     

Strayer Education Inc.

                 165,192   
  1,230     

Weight Watcher’s International Inc.

                       92,828   
 

Total Diversified Consumer Services

                       611,270   
  Diversified Financial Services – 0.1%              
  1,410     

Moody’s Corporation

                 54,074   
  3,590     

MSCI Inc., Class A Shares

                       135,271   
 

Total Diversified Financial Services

                       189,345   
  Diversified Telecommunication Services – 0.3%              
  11,800     

AT&T Inc.

                 370,638   
  12,270     

Verizon Communications Inc.

                 456,812   

 

Nuveen Investments     15   

QQQX

 

NASDAQ Premium Income & Growth Fund Inc. (continued)

Portfolio of Investments June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Diversified Telecommunication Services (continued)              
  4,133     

Windstream Corporation

                     $ 53,564   
 

Total Diversified Telecommunication Services

                       881,014   
  Electrical Equipment – 0.0%              
  1,609     

Woodward Governor Company

                       56,090   
  Electronic Equipment & Instruments – 0.3%              
  1,010     

Amphenol Corporation, Class A

                 54,530   
  3,730     

Arrow Electronics, Inc.

                 154,795   
  6,050     

Avnet Inc.

                 192,874   
  13,965     

National Instruments Corporation

                 414,621   
  1,898     

Plexus Corporation

                       66,069   
 

Total Electronic Equipment & Instruments

                       882,889   
  Food & Staples Retailing – 1.5%              
  4,550     

BJ’s Wholesale Club

                 229,093   
  2,490     

Casey’s General Stores, Inc.

                 109,560   
  5,210     

CVS Caremark Corporation

                 195,792   
  1,890     

Fresh Market Inc.

                 73,105   
  20,680     

Kroger Co.

                 512,864   
  1,060     

PriceSmart, Inc.

                 54,304   
  14,770     

Safeway Inc.

                 345,175   
  14,450     

Walgreen Co.

                 613,547   
  33,070     

Wal-Mart Stores, Inc.

                 1,757,340   
  1,380     

Weis Markets Inc.

                       56,207   
 

Total Food & Staples Retailing

                       3,946,987   
  Health Care Equipment & Supplies – 0.9%              
  4,520     

Baxter International, Inc.

                 269,799   
  2,970     

Becton, Dickinson and Company

                 255,925   
  7,720     

Boston Scientific Corporation

                 53,345   
  1,680     

C. R. Bard, Inc.

                 184,565   
  6,890     

Covidien PLC

                 366,755   
  1,140     

Idexx Labs Inc.

                 88,418   
  3,386     

Kinetic Concepts Inc.

                 195,135   
  9,350     

Medtronic, Inc.

                 360,256   
  2,590     

Saint Jude Medical Inc.

                 123,491   
  3,770     

Stryker Corporation

                 221,261   
  1,220     

Varian Medical Systems, Inc.

                 85,424   
  2,600     

Zimmer Holdings, Inc.

                       164,320   
 

Total Health Care Equipment & Supplies

                       2,368,694   
  Health Care Providers & Services – 1.8%              
  1,090     

Accretive Health Inc.

                 31,381   
  8,010     

AmerisourceBergen Corporation

                 331,614   
  7,570     

Cardinal Health, Inc.

                 343,829   
  64,627     

Express Scripts, Inc.

                 3,488,565   
  5,860     

McKesson HBOC Inc.

                 490,189   
  1,630     

Patterson Companies, Inc.

                       53,611   
 

Total Health Care Providers & Services

                       4,739,189   
  Health Care Technology – 0.4%              
  8,610     

Allscripts Healthcare Solutions Inc.

                 167,206   
  11,790     

Emdeon Inc., Class A

                 154,685   
  6,668     

Quality Systems Inc.

                 582,116   
  1,600     

SXC Health Solutions Corporation

                       94,272   
 

Total Health Care Technology

                       998,279   
  Hotels, Restaurants & Leisure – 1.7%              
  700     

Carnival Corporation, ADR

                 26,341   
  3,380     

Cheesecake Factory Inc.

                 106,031   
  2,730     

Darden Restaurants, Inc.

                 135,845   
  14,152     

McDonald’s Corporation

                 1,193,297   
  1,800     

Panera Bread Company

                 226,188   
  13,800     

Wynn Resorts Ltd

                 1,980,852   
  16,610     

YUM! Brands, Inc.

                       917,536   
 

Total Hotels, Restaurants & Leisure

                       4,586,090   
  Household Durables – 0.0%              
  100     

NVR Inc.

                      72,548   

 

  16       Nuveen Investments

Shares     Description (1)                        Value  
                               
  Household Products – 0.1%              
  1,000     

Colgate-Palmolive Company

               $ 87,410   
  3,780     

Procter & Gamble Company

                       240,295   
 

Total Household Products

                       327,705   
  Industrial Conglomerates – 0.2%              
  1,820     

3M Co.

                 172,627   
  3,050     

Danaher Corporation

                 161,620   
  1,410     

Tyco International Ltd.

                       69,696   
 

Total Industrial Conglomerates

                       403,943   
  Insurance – 0.1%              
  5,348     

CNA Financial Corporation

                      155,359   
  Internet & Catalog Retail – 5.7%              
  50,848     

Amazon.com, Inc.

                10,397,908   
  1,620     

Hosting Site Network, Inc.

                53,330   
  1,570     

MakeMyTrip Limited

                 38,465   
  6,142     

NetFlix.com Inc.

                1,613,442   
  6,270     

Priceline.com Incorporated

                      3,209,801   
 

Total Internet & Catalog Retail

                       15,312,946   
  Internet Software & Services – 9.7%              
  8,670     

AOL Inc.

                172,186   
  31,371     

Baidu.com, Inc., Sponsored ADR

                4,396,018   
  1,490     

Digital River, Inc.

                47,918   
  150,079     

eBay Inc.

                4,843,049   
  28,756     

Google Inc., Class A

                14,561,463   
  11,240     

IAC/InterActiveCorp.

                429,031   
  4,880     

j2 Global Communications, Inc.

                137,762   
  1,450     

Mercadolibre, Inc.

                 115,043   
  7,630     

Netease.com, Inc.

                 344,037   
  4,420     

NIC, Incorporated

                 59,493   
  5,640     

Open Text Corporation

                 361,073   
  1,800     

Rackspace Hosting Inc.

                76,932   
  1,750     

Sina Corporation

                 182,175   
  2,062     

Sohu.com Inc.

                 149,021   
  8,461     

ValueClick, Inc.

                140,453   
  5,350     

WebMD Health Corporation, Class A

                      243,853   
 

Total Internet Software & Services

                       26,259,507   
  IT Services – 2.3%              
  11,560     

Accenture Limited

                 698,455   
  4,520     

Acxiom Corporation

                59,257   
  28,010     

Amdocs Limited

                851,224   
  10,889     

Computer Sciences Corporation

                 413,346   
  6,092     

CSG Systems International Inc., (2)

                 112,580   
  1,130     

Gartner Inc.

                45,528   
  19,500     

Genpact Limited

                336,180   
  1,470     

Global Payments Inc.

                 74,970   
  19,947     

Henry Jack and Associates Inc.

                 598,609   
  9,871     

International Business Machines Corporation (IBM)

                 1,693,370   
  8,781     

ManTech International Corporation, Class A

                390,052   
  3,990     

NeuStar, Inc.

                 104,538   
  20,340     

SAIC, Inc.

                 342,119   
  6,950     

Sapient Corporation

                 104,459   
  1,340     

SRA International, Inc.

                 41,433   
  2,150     

Teradata Corporation

                 129,430   
  8,710     

Total System Services Inc.

                       161,832   
 

Total IT Services

                       6,157,382   
  Life Sciences Tools & Services – 1.0%              
  4,860     

Charles River Laboratories International, Inc.

                 197,559   
  14,680     

ICON plc

                 345,861   
  6,040     

Luminex Corporation

                 126,236   
  5,143     

Pharmaceutical Product Development Inc.

                 138,038   
  20,880     

Techne Corporation

                 1,740,766   
  1,150     

Thermo Fisher Scientific, Inc.

                       74,049   
 

Total Life Sciences Tools & Services

                       2,622,509   

 

Nuveen Investments     17   

QQQX

 

NASDAQ Premium Income & Growth Fund Inc. (continued)

Portfolio of Investments June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Machinery – 0.6%              
  2,610     

AGCO Corporation

              $ 128,830   
  2,532     

Bucyrus International, Inc.

                 232,083   
  5,030     

CNH Global N.V.

                 194,410   
  1,270     

Deere & Company

                 104,712   
  4,362     

Eaton Corporation

                 224,425   
  7,290     

Makita Corporation, ADR

                 340,735   
  3,696     

Nordson Corporation

                 202,726   
  640     

Terex Corporation

                18,208   
  2,150     

WABCO Holdings Inc.

                      148,479   
 

Total Machinery

                       1,594,608   
  Marine – 0.0%              
  1,000     

Kirby Corporation

                      56,670   
  Media – 6.4%              
  228,600     

Comcast Corporation, Class A

                 5,792,724   
  3,090     

Comcast Corporation, Special Class A

                 74,871   
  84,396     

DIRECTV Group, Inc.

                4,289,005   
  1,140     

Discovery Communications inc., Class A Shares

                46,694   
  1,420     

Dreamworks Animation SKG Inc.

                28,542   
  6,244     

Focus Media Holding, Limited

                 194,188   
  2,080     

Lamar Advertising Company

                56,930   
  710     

Liberty Media Starz

                53,420   
  208,457     

News Corporation, Class A

                 3,689,689   
  23,992     

News Corporation, Class B

                 433,775   
  11,548     

Omnicom Group, Inc.

                 556,152   
  2,380     

Scripps Networks Interactive, Class A Shares

                 116,334   
  25,590     

Thomson Corporation

                 961,160   
  3,950     

Viacom Inc., Class B

                 201,450   
  10,140     

Walt Disney Company

                 395,866   
  6,940     

WPP Group PLC

                       435,485   
 

Total Media

                       17,326,285   
  Metals & Mining – 0.1%              
  1,920     

Rangold Resources Limited

                       161,376   
  Multiline Retail – 0.9%              
  2,070     

Big Lots, Inc.

                68,621   
  8,100     

Dollar General Corporation

                274,509   
  5,230     

Family Dollar Stores, Inc.

                 274,889   
  4,120     

J.C. Penney Company, Inc.

                 142,305   
  12,160     

Kohl’s Corporation

                608,122   
  10,920     

Macy’s, Inc.

                 319,301   
  2,860     

Nordstrom, Inc.

                 134,248   
  2,120     

Saks Inc.

                 23,680   
  12,100     

Target Corporation

                       567,611   
 

Total Multiline Retail

                       2,413,286   
  Office Electronics – 0.1%              
  30,090     

Xerox Corporation

                 313,237   
  1,900     

Zebra Technologies Corporation, Class A

                       80,123   
 

Total Office Electronics

                       393,360   
  Personal Products – 0.0%              
  1,880     

Herbalife, Limited

                       108,363   
  Pharmaceuticals – 2.0%              
  11,310     

Abbott Laboratories

                 595,132   
  4,340     

Allergan, Inc.

                 361,305   
  3,660     

Bristol-Myers Squibb Company

                 105,994   
  16,320     

Eli Lilly and Company

                 612,490   
  9,082     

Endo Pharmaceuticals Holdings Inc.

                 364,824   
  12,550     

Forest Laboratories, Inc.

                 493,717   
  980     

Hospira Inc.

                 55,527   
  9,840     

Johnson & Johnson

                 654,557   
  13,730     

Merck & Company Inc.

                 484,532   
  3,590     

Optimer Pharmaceuticals, Inc.

                 42,685   
  3,702     

Perrigo Company

                 325,295   
  24,460     

Pfizer Inc.

                 503,876   
  6,100     

Shire Pharmaceuticals Group

                 574,681   

 

  18       Nuveen Investments

Shares     Description (1)                        Value  
                               
  Pharmaceuticals (continued)              
  6,040     

ViroPharma, Inc.

               $ 111,740   
  1,770     

Watson Pharmaceuticals Inc.

                       121,652   
 

Total Pharmaceuticals

                       5,408,007   
  Professional Services – 0.6%              
  1,640     

Dun and Bradstreet Inc.

                 123,886   
  6,410     

Equifax Inc.

                 222,555   
  2,840     

IHS Inc.

                 236,913   
  820     

Manpower Inc.

                 43,993   
  20,920     

Nielsen Holdings BV

                 651,867   
  2,230     

Robert Half International Inc.

                 60,277   
  1,410     

Towers Watson & Company, Class A Shares

                 92,651   
  3,960     

Verisk Analytics Inc, Class A Shares

                       137,095   
 

Total Professional Services

                       1,569,237   
  Real Estate Investment Trust – 0.0%              
  350     

Public Storage, Inc.

                       39,904   
  Real Estate Management & Development – 0.0%              
  13,900     

China Real Estate Information Corporation, ADR

                 99,246   
  710     

St Joe Company

                       14,796   
 

Total Real Estate Management & Development

                       114,042   
  Road & Rail – 0.5%              
  4,047     

CSX Corporation

                 106,112   
  20,080     

Heartland Express, Inc.

                 332,525   
  4,440     

J.B. Hunt Transports Serives Inc.

                 209,080   
  9,188     

Landstar System

                 427,058   
  8,953     

Werner Enterprises, Inc.

                       224,273   
 

Total Road & Rail

                       1,299,048   
  Semiconductors & Equipment – 9.8%              
  15,730     

Advanced Micro Devices, Inc.

                 109,953   
  9,216     

Aixtron AG, Aachen SH

                 314,450   
  9,224     

Amkor Technology Inc.

                 56,912   
  21,560     

Analog Devices, Inc.

                 843,858   
  10,200     

ARM Holdings PLC

                 289,986   
  2,480     

ASM International NV

                 98,084   
  13,927     

ASM Lithography Holding NV

                 514,742   
  4,380     

Atmel Corporation

                 61,627   
  18,410     

Avago Technologies Limtied

                 699,580   
  2,260     

Cabot Microelectronics Corporation

                 105,022   
  5,373     

Cree, Inc.

                 180,479   
  1,780     

Cymer, Inc.

                 88,128   
  2,510     

Cypress Semiconductor Corporation

                 53,061   
  9,060     

First Solar Inc.

                 1,198,366   
  5,090     

Hittite Microwave Corporation

                 315,122   
  7,090     

Integrated Device Technology, Inc.

                 55,727   
  642,445     

Intel Corporation, (2)

                 14,236,581   
  5,830     

International Rectifier Corporation

                 163,065   
  11,715     

Intersil Holding Corporation, Class A

                 150,538   
  18,270     

LSI Logic Corporation

                 130,082   
  2,220     

Mellanox Technologies, Limited

                 66,178   
  4,670     

MEMC Electronic Materials

                 39,835   
  123,460     

Micron Technology, Inc.

                 923,481   
  8,230     

Microsemi Corporation

                 168,715   
  14,620     

National Semiconductor Corporation

                 359,798   
  4,040     

Novellus Systems, Inc.

                 146,006   
  73,740     

NVIDIA Corporation

                 1,175,047   
  7,380     

NXP Semiconductors NV

                 197,267   
  28,310     

ON Semiconductor Corporation

                 296,406   
  8,570     

PMC-Sierra, Inc.

                 64,875   
  6,023     

Power Integrations Inc.

                 231,464   
  11,190     

Rambus Inc.

                 164,269   
  6,010     

Semtech Corporation

                 164,313   
  10,300     

Silicon Laboratories Inc.

                 424,978   
  45,430     

Siliconware Precision Industries Company Limited

                 282,575   
  8,667     

Skyworks Solutions Inc.

                 199,168   
  4,230     

Spansion Inc., Class A

                 81,512   
  2,640     

Spreadtrum Communications, Inc.

                 41,606   

 

Nuveen Investments     19   

QQQX

 

NASDAQ Premium Income & Growth Fund Inc. (continued)

Portfolio of Investments June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Semiconductors & Equipment (continued)              
  7,773     

Tessera Technologies Inc.

               $ 133,229   
  42,627     

Texas Instruments Incorporated

                 1,399,444   
  2,230     

TriQuint Semiconductor, Inc.

                 22,724   
  3,770     

Varian Semiconductor Equipment Associate

                       231,629   
 

Total Semiconductors & Equipment

                       26,479,882   
  Software – 18.6%              
  1,630     

ACI Worldwide, Inc.

                 55,045   
  3,290     

Advent Software Inc.

                 92,679   
  7,490     

Ansys Inc.

                 409,478   
  3,620     

Ariba Inc.

                 124,781   
  1,350     

Asiainfo Holdings, Inc.

                 22,356   
  2,890     

Blackbaud, Inc.

                 80,111   
  3,360     

Blackboard, Inc.

                 145,790   
  18,340     

Cadence Design Systems, Inc.

                 193,670   
  950     

CommVault Systems, Inc.

                 42,228   
  17,090     

Compuware Corporation

                 166,798   
  3,750     

Concur Technologies, Inc.

                 187,763   
  1,620     

FactSet Research Systems Inc.

                 165,758   
  4,400     

Informatica Corporation

                 257,092   
  1,490     

JDA Software Group

                 46,026   
  6,560     

Lawson Software, Inc.

                 73,603   
  10,200     

Micros Systems, Inc.

                 507,042   
  985,255     

Microsoft Corporation, (2)

                 25,616,630   
  1,608     

Microstrategy Inc.

                 261,589   
  1,350     

NetSuite Inc.

                 52,920   
  8,890     

Nuance Communications, Inc.

                 190,868   
  572,754     

Oracle Corporation, (2)

                 18,849,334   
  12,590     

Parametric Technology Corporation

                 288,689   
  1,050     

Pegasystems, Inc.

                 48,878   
  1,790     

Perfect World Company Limited

                 33,580   
  6,610     

Progress Software Corporation

                 159,499   
  1,890     

QLIK Technologies Inc.

                 64,373   
  5,270     

Quest Software Inc.

                 119,787   
  5,560     

Red Hat, Inc.

                 255,204   
  1,510     

Rovi Corporation

                 86,614   
  520     

Salesforce.com, Inc.

                 77,470   
  6,230     

Shanda Interactive Entertainment Ltd.

                 241,786   
  2,490     

Solarwinds, Inc.

                 65,089   
  3,250     

Solera Holdings Inc.

                 192,270   
  2,680     

SS&C Technologies Holdings Inc.

                 53,252   
  2,170     

SuccessFactors, Inc.

                 63,798   
  26,170     

Synopsys Inc.

                 672,831   
  5,580     

Tibco Software Inc.

                 161,932   
  870     

VMware Inc.

                       87,200   
 

Total Software

                       50,213,813   
  Specialty Retail – 2.0%              
  3,280     

Aaron Rents Inc.

                 92,693   
  4,540     

Advance Auto Parts, Inc.

                 265,545   
  9,634     

Ascena Retail Group Inc.

                 328,038   
  1,110     

AutoNation Inc.

                 40,637   
  1,220     

AutoZone, Inc.

                 359,717   
  6,910     

Best Buy Co., Inc.

                 217,043   
  4,650     

CarMax, Inc.

                 153,776   
  2,370     

Chico’s FAS, Inc.

                 36,095   
  3,390     

Dick’s Sporting Goods Inc.

                 130,346   
  4,030     

GameStop Corporation

                 107,480   
  8,700     

Gap, Inc.

                 157,470   
  11,750     

Home Depot, Inc.

                 425,585   
  1,430     

Limited Brands, Inc.

                 54,984   
  16,170     

Lowe’s Companies, Inc.

                 376,923   
  11,020     

PetSmart Inc.

                 499,977   
  9,394     

Rent-A-Center Inc.

                 287,081   
  5,450     

Sally Beauty Holdings Inc.

                 93,195   
  5,670     

Signet Jewelers Limited

                 265,413   
  5,212     

Tiffany & Co.

                 409,246   
  7,300     

TJX Companies, Inc.

                 383,469   
  8,169     

Tractor Supply Company

                 546,343   

 

  20       Nuveen Investments

Shares     Description (1)                            Value  
                                   
  Specialty Retail (continued)              
  2,540     

Ulta Salon, Cosmetics & Fragrance, Inc.

               $ 164,033   
  2,420     

Williams-Sonoma Inc.

                               88,306   
 

Total Specialty Retail

                               5,483,395   
  Textiles, Apparel & Luxury Goods – 0.2%              
  2,410     

Coach, Inc.

                 154,071   
  54     

Deckers Outdoor Corporation

                4,760   
  1,290     

Nike, Inc., Class B

                 116,073   
  2,533     

Phillips-Van Heusen Corporation

                 165,835   
  410     

Polo Ralph Lauren Corporation

                               54,369   
 

Total Textiles, Apparel & Luxury Goods

                               495,108   
  Trading Companies & Distributors – 0.1%              
  4,710     

MSC Industrial Direct Inc., Class A

                               312,320   
  Wireless Telecommunication Services – 1.3%              
  20,750     

American Tower Corporation

                 1,085,847   
  10,080     

Clearwire Corporation

                 38,101   
  13,210     

Crown Castle International Corporation

                 538,835   
  15,620     

Partner Communications Company Limited

                 233,049   
  10,140     

SBA Communications Corporation

                 387,246   
  19,150     

Sprint Nextel Corporation

                 103,218   
  18,010     

Telephone and Data Systems Inc.

                 559,750   
  13,210     

United States Cellular Corporation

                               639,627   
 

Total Wireless Telecommunication Services

                               3,585,673   
 

Total Common Stocks (cost $226,769,517)

                               275,262,491   
Principal
Amount (000)		     Description    Coupon        Maturity            Value  
  Short-Term Investments – 1.0%              
  Euro Dollar Time Deposit – 1.0%              
$ 2,740     

State Street Bank Euro Dollar Time Deposit

      0.010%           7/01/11            $ 2,739,393   
 

Total Short-Term Investments (cost $2,739,393)

                               2,739,393   
 

Total Investments (cost $229,508,910) – 103.1%

                               278,001,884   
 

Other Assets Less Liabilities – (3.1)% (3)

                               (8,476,800 ) 
 

Net Assets – 100%

                             $ 269,525,084   

Investments in Derivatives

Call Options Written outstanding at June 30, 2011:

 

Number of
Contracts

     Type    Notional
Amount (4)		        Expiration
Date		      Strike
Price		      Value  
  (100 )   

NASDAQ 100 INDEX

    $ (24,250,000 )         7/16/11       $ 2,425.0       $ (8,500 ) 
  (100 )   

NASDAQ 100 INDEX

      (24,750,000 )         7/16/11         2,475.0         (2,750 ) 
  (150 )   

NASDAQ 100 INDEX

      (33,750,000 )         8/20/11         2,250.0         (1,535,250 ) 
  (150 )   

NASDAQ 100 INDEX

      (34,500,000 )         8/20/11         2,300.0         (1,012,500 ) 
  (100 )   

NASDAQ 100 INDEX

      (23,500,000 )         8/20/11         2,350.0         (393,000 ) 
  (600 )   

Total Call Options Written (premium received $1,850,788)

    $ (140,750,000 )                         $ (2,952,000 ) 

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

  (1)   All percentages shown in the Portfolio of Investments are based on net assets.

 

  (2)   Investment, or portion of investment, has been pledged as collateral for call options written during and as of the end of the reporting period.

 

  (3)   Other Assets Less Liabilities includes Value of derivative instruments as listed in Investments in Derivatives.

 

  (4)   For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.

 

  ADR   American Depositary Receipt

See accompanying notes to financial statements.

 

Nuveen Investments     21   

DPD

 

Dow 30SM Premium & Dividend Income Fund Inc.

Portfolio of Investments

 

June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Common Stocks – 101.0%              
  Aerospace & Defense – 10.0%              
  109,400     

Boeing Company

               $ 8,087,942   
  109,400     

United Technologies Corporation

                       9,682,994   
 

Total Aerospace & Defense

                       17,770,936   
  Beverages – 4.1%              
  109,400     

Coca-Cola Company

                       7,361,526   
  Chemicals – 3.3%              
  109,400     

E.I. Du Pont de Nemours and Company

                       5,913,070   
  Communications Equipment – 1.0%              
  109,400     

Cisco Systems, Inc., (2)

                       1,707,734   
  Computers & Peripherals – 2.2%              
  109,400     

Hewlett-Packard Company

                       3,982,160   
  Consumer Finance – 3.2%              
  109,400     

American Express Company

                       5,655,980   
  Diversified Financial Services – 3.2%              
  109,400     

Bank of America Corporation

                 1,199,024   
  109,400     

JP Morgan Chase & Co.

                       4,478,836   
 

Total Diversified Financial Services

                       5,677,860   
  Diversified Telecommunication Services – 4.2%              
  109,400     

AT&T Inc.

                 3,436,254   
  109,400     

Verizon Communications Inc.

                       4,072,962   
 

Total Diversified Telecommunication Services

                       7,509,216   
  Food & Staples Retailing – 3.3%              
  109,400     

Wal-Mart Stores, Inc.

                       5,813,516   
  Food Products – 2.2%              
  109,400     

Kraft Foods Inc.

                       3,854,162   
  Hotels, Restaurants & Leisure – 5.2%              
  109,400     

McDonald’s Corporation

                       9,224,608   
  Household Products – 3.9%              
  109,400     

Procter & Gamble Company

                       6,954,558   
  Industrial Conglomerates – 7.0%              
  109,400     

3M Co.

                 10,376,590   
  109,400     

General Electric Company

                       2,063,284   
 

Total Industrial Conglomerates

                       12,439,874   
  Insurance – 3.6%              
  109,400     

Travelers Companies, Inc.

                       6,386,772   
  IT Services – 10.6%              
  109,400     

International Business Machines Corporation (IBM)

                       18,767,570   
  Machinery – 6.6%              
  109,400     

Caterpillar Inc.

                       11,646,724   
  Media – 2.4%              
  109,400     

Walt Disney Company

                       4,270,976   
  Metals & Mining – 1.0%              
  109,400     

Alcoa Inc.

                       1,735,084   
  Oil, Gas, & Consumable Fuels – 11.3%              
  109,400     

Chevron Corporation

                 11,250,696   
  109,400     

Exxon Mobil Corporation

                       8,902,972   
 

Total Oil, Gas, & Consumable Fuels

                       20,153,668   
  Pharmaceuticals – 7.5%              
  109,400     

Johnson & Johnson

                 7,277,288   
  109,400     

Merck & Company Inc.

                 3,860,726   
  109,400     

Pfizer Inc.

                       2,253,640   
 

Total Pharmaceuticals

                       13,391,654   

 

  22       Nuveen Investments

Shares     Description (1)                            Value  
                                   
  Semiconductors & Equipment – 1.4%              
  109,400     

Intel Corporation

                             $ 2,424,304   
  Software – 1.6%              
  109,400     

Microsoft Corporation

                               2,844,400   
  Specialty Retail – 2.2%              
  109,400     

Home Depot, Inc.

                               3,962,468   
 

Total Common Stocks (cost $140,281,870)

                               179,448,820   
Principal
Amount (000)		     Description    Coupon        Maturity            Value  
  Short-Term Investments – 1.4%              
  Euro Dollar Time Deposit – 0.3%              
$ 557     

State Street Bank Euro Dollar Time Deposit

      0.010%           7/01/11            $ 557,020   
  U.S. Government and Agency Obligations – 1.1%              
  2,000     

U.S. Treasury Bills, (3)

      0.000%           10/20/11              1,999,784   
$ 2,557     

Total Short-Term Investments (cost $2,556,342)

                               2,556,804   
 

Total Investments (cost $142,838,212) – 102.4%

                               182,005,624   
 

Other Assets Less Liabilities – (2.4)% (4)

                               (4,277,885 ) 
 

Net Assets – 100%

                             $ 177,727,739   

Investments in Derivatives

Call Options Written outstanding at June 30, 2011:

 

Number of
Contracts		     Type    Notional
Amount (5)		        Expiration
Date		      Strike
Price		      Value  
  (500 )   

3M Company

   $ (4,768,500 )         7/16/11       $ 95.3700       $ (52,685 ) 
  (500 )   

Alcoa Inc.

      (865,500 )         7/16/11         17.3100         (195 ) 
  (500 )   

American Express Company

      (2,657,500 )         7/16/11         53.1500         (3,870 ) 
  (500 )   

AT&T Inc.

      (1,573,350 )         7/16/11         31.4670         (9,104 ) 
  (500 )   

Bank of America

      (605,000 )         7/16/11         12.1000         (45 ) 
  (500 )   

Boeing Company

      (4,018,500 )         7/16/11         80.3700         (3 ) 
  (500 )   

Caterpillar Inc.

      (5,448,700 )         7/16/11         108.9740         (20,435 ) 
  (500 )   

Chevron Corporation

      (5,403,000 )         7/16/11         108.0600         (102 ) 
  (500 )   

Cisco Systems Inc.

      (775,500 )         7/16/11         15.5100         (18,662 ) 
  (500 )   

Coca-Cola Company

      (3,379,000 )         7/16/11         67.5800         (36,346 ) 
  (500 )   

DuPont E.I. de Nemours and Company

     (2,745,000 )         7/16/11         54.9000         (8,466 ) 
  (500 )   

Exxon Mobil Corporation

      (4,080,345 )         7/16/11         81.6069         (58,127 ) 
  (500 )   

General Electric Company

      (1,011,500 )         7/16/11         20.2300         (3 ) 
  (500 )   

Hewlett-Packard Company

      (1,788,600 )         7/16/11         35.7720         (53,948 ) 
  (500 )   

Home Depot, Inc.

      (1,868,400 )         7/16/11         37.3680         (1,524 ) 
  (500 )   

IBM Corporation

     (8,452,150 )         7/16/11         169.0430         (199,033 ) 
  (500 )   

Intel Corporation

     (1,123,000 )         7/16/11         22.4600         (15,563 ) 
  (500 )   

Johnson & Johnson

      (3,455,650 )         7/16/11         69.1130         (6,054 ) 
  (500 )   

JP Morgan Chase & Co.

      (2,142,400 )         7/16/11         42.8480         (14,299 ) 
  (500 )   

Kraft Food Inc.

      (1,764,500 )         7/16/11         35.2900         (20,605 ) 
  (500 )   

McDonald’s Corporation

      (4,195,500 )         7/16/11         83.9100         (67,135 ) 
  (500 )   

Merck & Co. Inc.

      (1,835,500 )         7/16/11         36.7100         (3,742 ) 
  (500 )   

Microsoft Corporation

     (1,238,060 )         7/16/11         24.7612         (69,777 ) 
  (500 )   

Pfizer Inc.

      (1,053,650 )         7/16/11         21.0730         (8,243 ) 
  (500 )   

Procter & Gamble Company

      (3,335,650 )         7/16/11         66.7130         (4,122 ) 
  (500 )   

The Travelers Companies Inc.

      (3,026,000 )         7/16/11         60.5200         (12,447 ) 
  (500 )   

United Technologies Corporation

     (4,262,500 )         7/16/11         85.2500         (189,253 ) 
  (500 )   

Verizon Communications Inc.

      (1,835,000 )         7/16/11         36.7000         (26,786 ) 
  (500 )   

Wal-Mart Stores Inc.

      (2,709,900 )         7/16/11         54.1980         (13,328 ) 
  (500 )   

Walt Disney Company

      (2,144,000 )         7/16/11         42.8800         (1 ) 
  (15,000 )   

Total Call Options Written (premium received $808,070)

    $ (83,561,855 )                         $ (913,903 ) 

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

  (1)   All percentages shown in the Portfolio of Investments are based on net assets.

 

  (2)   Non-income producing; issuer has not declared a dividend within the past twelve months.

 

  (3)   Investment, or portion of investment, has been pledged as collateral for call options written during and as of the end of the reporting period.

 

  (4)   Other Assets Less Liabilities includes Value and/or the Net Unrealized Appreciation (Depreciation) of derivative instruments as listed in Investments in Derivatives.

 

  (5)   For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.

See accompanying notes to financial statements.

 

Nuveen Investments     23   

DPO

 

Dow 30SM Enhanced Premium & Income Fund Inc.

Portfolio of Investments

 

June 30, 2011 (Unaudited)

 

Shares     Description (1)                        Value  
                               
  Common Stocks – 94.3%              
  Aerospace & Defense – 9.3%              
  182,000     

Boeing Company

               $ 13,455,260   
  182,000     

United Technologies Corporation

                       16,108,820   
 

Total Aerospace & Defense

                       29,564,080   
  Beverages – 3.9%              
  182,000     

Coca-Cola Company

                       12,246,780   
  Chemicals – 3.1%              
  182,000     

E.I. Du Pont de Nemours and Company

                       9,837,100   
  Communications Equipment – 0.9%              
  182,000     

Cisco Systems, Inc., (2)

                       2,841,020   
  Computers & Peripherals – 2.1%              
  182,000     

Hewlett-Packard Company

                       6,624,800   
  Consumer Finance – 3.0%              
  182,000     

American Express Company

                       9,409,400   
  Diversified Financial Services – 3.0%              
  182,000     

Bank of America Corporation

                 1,994,720   
  182,000     

JP Morgan Chase & Co.

                       7,451,080   
 

Total Diversified Financial Services

                       9,445,800   
  Diversified Telecommunication Services – 3.9%              
  182,000     

AT&T Inc.

                 5,716,620   
  182,000     

Verizon Communications Inc.

                       6,775,860   
 

Total Diversified Telecommunication Services

                       12,492,480   
  Food & Staples Retailing – 3.1%              
  182,000     

Wal-Mart Stores, Inc.

                       9,671,480   
  Food Products – 2.0%              
  182,000     

Kraft Foods Inc.

                       6,411,860   
  Hotels, Restaurants & Leisure – 4.8%              
  182,000     

McDonald’s Corporation

                       15,346,240   
  Household Products – 3.7%              
  182,000     

Procter & Gamble Company

                       11,569,740   
  Industrial Conglomerates – 6.5%              
  182,000     

3M Co.

                 17,262,700   
  182,000     

General Electric Company

                       3,432,520   
 

Total Industrial Conglomerates

                       20,695,220   
  Insurance – 3.4%              
  182,000     

Travelers Companies, Inc.

                       10,625,160   
  IT Services – 9.9%              
  182,000     

International Business Machines Corporation (IBM)

                       31,222,100   
  Machinery – 6.1%              
  182,000     

Caterpillar Inc.

                       19,375,720   
  Media – 2.2%              
  182,000     

Walt Disney Company

                       7,105,280   
  Metals & Mining – 0.9%              
  182,000     

Alcoa Inc.

                       2,886,520   
  Oil, Gas, & Consumable Fuels – 10.6%              
  182,000     

Chevron Corporation

                 18,716,880   
  182,000     

Exxon Mobil Corporation

                       14,811,160   
 

Total Oil, Gas, & Consumable Fuels

                       33,528,040   
  Pharmaceuticals – 7.0%              
  182,000     

Johnson & Johnson

                 12,106,640   
  182,000     

Merck & Company Inc.

                 6,422,780   
  182,000     

Pfizer Inc.

                       3,749,200   
 

Total Pharmaceuticals

                       22,278,620   

 

  24       Nuveen Investments

Shares     Description (1)                            Value  
                                   
  Semiconductors & Equipment – 1.3%              
  182,000     

Intel Corporation

                             $ 4,033,120   
  Software – 1.5%              
  182,000     

Microsoft Corporation

                               4,732,000   
  Specialty Retail – 2.1%              
  182,000     

Home Depot, Inc.

                               6,592,040   
 

Total Common Stocks (cost $292,733,226)

                               298,534,600   
Principal
Amount (000)		     Description    Coupon        Maturity            Value  
  Short-Term Investments – 7.6%              
  Euro Dollar Time Deposit – 5.7%              
$ 17,981     

State Street Bank Euro Dollar Time Deposit

      0.010%           7/01/11            $ 17,981,108   
  U.S. Government and Agency Obligations – 1.9%              
  6,000     

U.S. Treasury Bills, (3)

      0.000%           10/20/11              5,999,352   
$ 23,981     

Total Short-Term Investments (cost $23,980,275)

                               23,980,460   
 

Total Investments (cost $316,713,501) – 101.9%

                               322,515,060   
 

Other Assets Less Liabilities – (1.9)% (4)

                               (5,964,981 ) 
 

Net Assets – 100%

                             $ 316,550,079   

Investments in Derivatives

Call Options Written outstanding at June 30, 2011:

 

Number of
Contracts		     Type    Notional
Amount (5)		        Expiration
Date		      Strike
Price		      Value  
  (1,200 )   

3M Company

    $ (11,444,400 )         7/16/11       $ 95.3700       $ (126,444 ) 
  (1,200 )   

Alcoa Inc.

      (2,077,200 )         7/16/11         17.3100         (467 ) 
  (1,200 )   

American Express Company

      (6,378,000 )         7/16/11         53.1500         (9,287 ) 
  (1,200 )   

AT&T Inc.

      (3,776,040 )         7/16/11         31.4670         (21,850 ) 
  (1,200 )   

Bank of America

      (1,452,000 )         7/16/11         12.1000         (108 ) 
  (1,200 )   

Boeing Company

      (9,644,400 )         7/16/11         80.3700         (7 ) 
  (1,200 )   

Caterpillar Inc.

      (13,076,880 )         7/16/11         108.9740         (49,044 ) 
  (1,200 )   

Chevron Corporation

      (12,967,200 )         7/16/11         108.0600         (244 ) 
  (1,200 )   

Cisco Systems Inc.

      (1,861,200 )         7/16/11         15.5100         (44,789 ) 
  (1,200 )   

Coca-Cola Company

      (8,109,600 )         7/16/11         67.5800         (87,230 ) 
  (1,200 )   

DuPont E.I. de Nemours and Company

      (6,588,000 )         7/16/11         54.9000         (20,317 ) 
  (1,200 )   

Exxon Mobil Corporation

      (9,792,828 )         7/16/11         81.6069         (139,506 ) 
  (1,200 )   

General Electric Company

      (2,427,600 )         7/16/11         20.2300         (6 ) 
  (1,200 )   

Hewlett-Packard Company

      (4,292,640 )         7/16/11         35.7720         (129,476 ) 
  (1,200 )   

Home Depot, Inc.

      (4,484,160 )         7/16/11         37.3680         (3,658 ) 
  (1,200 )   

IBM Corporation

      (20,285,160 )         7/16/11         169.0430         (477,682 ) 
  (1,200 )   

Intel Corporation

      (2,695,200 )         7/16/11         22.4600         (37,351 ) 
  (1,200 )   

Johnson & Johnson

      (8,293,560 )         7/16/11         69.1130         (14,529 ) 
  (1,200 )   

JP Morgan Chase & Co.

      (5,141,760 )         7/16/11         42.8480         (34,316 ) 
  (1,200 )   

Kraft Food Inc.

      (4,234,800 )         7/16/11         35.2900         (49,453 ) 
  (1,200 )   

McDonald’s Corporation

      (10,069,200 )         7/16/11         83.9100         (161,125 ) 
  (1,200 )   

Merck & Co. Inc.

      (4,405,200 )         7/16/11         36.7100         (8,980 ) 
  (1,200 )   

Microsoft Corporation

      (2,971,344 )         7/16/11         24.7612         (167,467 ) 
  (1,200 )   

Pfizer Inc.

      (2,528,760 )         7/16/11         21.0730         (19,782 ) 
  (1,200 )   

Procter & Gamble Company

      (8,005,560 )         7/16/11         66.7130         (9,893 ) 
  (1,200 )   

The Travelers Companies Inc.

      (7,262,400 )         7/16/11         60.5200         (29,872 ) 
  (1,200 )   

United Technologies Corporation

      (10,230,000 )         7/16/11         85.2500         (454,207 ) 
  (1,200 )   

Verizon Communications Inc.

      (4,404,000 )         7/16/11         36.7000         (64,286 ) 
  (1,200 )   

Wal-Mart Stores Inc.

      (6,503,760 )         7/16/11         54.1980         (31,990 ) 
  (1,200 )   

Walt Disney Company

      (5,145,600 )         7/16/11         42.8800         (1 ) 
  (36,000 )   

Total Call Options Written (premium received $1,939,368)

    $ (200,548,452 )                         $ (2,193,367 ) 

 

Nuveen Investments     25   

DPO

 

Dow 30SM Enhanced Premium & Income Fund Inc. (continued)

Portfolio of Investments June 30, 2011 (Unaudited)

 

Total Return Swaps outstanding at June 30, 2011:

 

Counterparty    Receive      Pay      Expiration
Date		      Notional
Amount		      Unrealized
Appreciation
(Depreciation)		  

Deutsche Bank

      Dow Jones Industrial Average Total Return Index         12-Month USD-LIBOR-BBA less 26 basis points         6/28/12       $ 46,276,797       $ 1,411,451   

UBS

      Dow Jones Industrial Average Total Return Index         12-Month USD-LIBOR-BBA less 23 basis points         6/28/12         46,276,797         1,411,338   
                                         $ 2,822,789   

 

 

 

 

 

For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications into sectors for reporting ease.

 

  (1)   All percentages shown in the Portfolio of Investments are based on net assets.

 

  (2)   Non-income producing; issuer has not declared a dividend within the past twelve months.

 

  (3)   Investment, or portion of investment, has been pledged as collateral for call options written during and as of the end of the reporting period.

 

  (4)   Other Assets Less Liabilities includes Value and/or the Net Unrealized Appreciation (Depreciation) of derivative instruments as listed in Investments in Derivatives.

 

  (5)   For disclosure purposes, Notional Amount is calculated by multiplying the Number of Contracts by the Strike Price by 100.

 

  USD-LIBOR-BBA   United States Dollar – London Inter-Bank Offered Rate – British Bankers Association

See accompanying notes to financial statements.

 

  26       Nuveen Investments

Statement of

Assets & Liabilities

 

June 30, 2011 (Unaudited)

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow  30SM
Premium &
Dividend
Income
(DPD)		        Dow  30SM
Enhanced
Premium &
Income
(DPO)		  

Assets

             

Investments, at value (cost $229,508,910, $142,838,212 and $316,713,501, respectively)

    $ 278,001,884         $ 182,005,624         $ 322,515,060   

Cash

      1,147           –           –   

Unrealized appreciation on total return swaps

      –           –           2,822,789   

Receivables:

             

Dividends

      58,713           173,946           289,380   

Investments sold

      226           –           –   

Reclaims

      850           –           –   

Other assets

      –           –           3,198   

Total assets

      278,062,820           182,179,570           325,630,427   

Liabilities

             

Call options written, at value (premiums received $1,850,788, $808,070 and $1,939,368, respectively)

      2,952,000           913,903           2,193,367   

Dividends payable

      5,184,629           3,233,816           6,358,606   

Accrued expenses:

             

Management fees

      200,334           141,164           271,285   

Other

      200,773           162,948           257,090   

Total liabilities

      8,537,736           4,451,831           9,080,348   

Net assets

    $ 269,525,084         $ 177,727,739         $ 316,550,079   

Shares outstanding

      18,445,346           12,015,674           27,736,799   

Net asset value per share outstanding

    $ 14.61         $ 14.79         $ 11.41   

Net assets consist of:

                               

Shares, $.001 par value per share

    $ 18,445         $ 12,016         $ 27,737   

Paid-in surplus

      224,689,056           153,935,015           379,752,721   

Undistributed (Over-distribution of ) net investment income

      (11,980,614 )         (6,083,455 )         (11,995,887 ) 

Accumulated net realized gain (loss)

      9,406,435           (9,197,416 )         (59,604,841 ) 

Net unrealized appreciation (depreciation)

      47,391,762           39,061,579           8,370,349   

Net assets

    $ 269,525,084         $ 177,727,739         $ 316,550,079   

Authorized shares

      100,000,000           100,000,000           100,000,000   

 

See accompanying notes to financial statements.

 

Nuveen Investments     27   

Statement of

Operations

 

Six Months Ended June 30, 2011 (Unaudited)

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Investment Income

             

Dividends (net of foreign tax withheld of $7,291, $– and $–, respectively)

    $ 1,148,181         $ 2,244,693         $ 3,741,772   

Interest

      –           1,555           5,014   

Total investment income

      1,148,181           2,246,248           3,746,786   

Expenses

             

Management fees

      1,206,276           777,394           1,380,876   

Shareholders’ servicing agent fees and expenses

      16,904           17,083           21,556   

Custodian’s fees and expenses

      45,106           26,656           34,194   

Directors’ fees and expenses

      4,238           3,040           5,402   

Professional fees

      18,104           32,138           32,153   

Shareholders’ reports – printing and mailing expenses

      50,748           34,172           66,260   

Stock exchange listing fees

      –           –           199   

Investor relations expense

      31,168           21,033           41,411   

Other expenses

      99,391           2,226           29,739   

Total expenses before custodian fee credit

      1,471,935           913,742           1,611,790   

Custodian fee credit

      (599 )         (4 )         (23 ) 

Net expenses

      1,471,336           913,738           1,611,767   

Net investment income (loss)

      (323,155 )         1,332,510           2,135,019   

Realized and Unrealized Gain (Loss)

             

Net realized gain (loss) from:

             

Investments

      34,054,570           1,102,192           36,172   

Call options written

      (2,322,754 )         (2,326,412 )         (5,249,554 ) 

Swaps

      –           –           16,356,877   

Change in net unrealized appreciation (depreciation) of:

             

Investments

      (20,256,132 )         11,221,685           20,386,454   

Call options written

      (504,004 )         896,664           2,012,355   

Swaps

      –           –           (8,322,212 ) 

Net realized and unrealized gain (loss)

      10,971,680           10,894,129           25,220,092   

Net increase (decrease) in net assets from operations

    $ 10,648,525         $ 12,226,639         $ 27,355,111   

 

See accompanying notes to financial statements.

 

  28       Nuveen Investments

Statement of

Changes in Net Assets (Unaudited)

 

    NASDAQ Premium
Income & Growth (QQQX)		     Dow 30SM Premium &
Dividend Income (DPD)		     Dow 30SM Enhanced
Premium & Income (DPO)		  
     Six Months Ended
6/30/11		     Year Ended
12/31/10		     Six Months Ended
6/30/11		     Year Ended
12/31/10		     Six Months Ended
6/30/11		     Year Ended
12/31/10		  

Operations

            

Net investment income (loss)

   $ (323,155 )    $ (655,634 )    $ 1,332,510      $ 2,610,392      $ 2,135,019      $ 4,053,745   

Net realized gain (loss) from:

            

Investments

    34,054,570        4,640,425        1,102,192        865,675        36,172        (1,110,606 ) 

Call options written

     (2,322,754 )      (7,001,781 )      (2,326,412 )      1,788,425        (5,249,554 )      4,029,546   

Swaps

     –        –        –        –        16,356,877        16,109,410   

Change in net unrealized appreciation (depreciation) of:

            

Investments

    (20,256,132 )      37,045,270        11,221,685        16,664,997        20,386,454        29,433,016   

Call options written

     (504,004 )      92,906        896,664        (1,731,158 )      2,012,355        (3,887,100 ) 

Swaps

     –        –        –        –        (8,322,212 )      (4,087,527 ) 

Net increase (decrease) in net assets from operations

     10,648,525        34,121,186        12,226,639        20,198,331        27,355,111        44,540,484   

Distributions to Shareholders

            

From and in excess of net investment income

     (11,657,459 )      –        (7,415,965 )      –        (14,130,906 )      –   

From net investment income

     –        –        –        (4,102,297 )      –        (17,310,225 ) 

Return of capital

     –        (23,314,917 )      –        (10,625,600 )      –        (10,867,638 ) 

Decrease in net assets from distributions to shareholders

     (11,657,459 )      (23,314,917 )      (7,415,965 )      (14,727,897 )      (14,130,906 )      (28,177,863 ) 

Capital Share Transactions

            

Proceeds from shares issued to shareholders due to reinvestment of distributions

     –        –        623,975        1,425,716        669,056        1,123,481   

Net increase (decrease) in net assets from capital share transactions

     –        –        623,975        1,425,716        669,056        1,123,481   

Net increase (decrease) in net assets

     (1,008,934 )      10,806,269        5,434,649        6,896,150        13,893,261        17,486,102   

Net assets at the beginning of period

     270,534,018        259,727,749        172,293,090        165,396,940        302,656,818        285,170,716   

Net assets at the end of period

   $ 269,525,084      $ 270,534,018      $ 177,727,739      $ 172,293,090      $ 316,550,079      $ 302,656,818   

Undistributed (Over-distribution of) net investment income at the end of period

   $ (11,980,614 )    $ –      $ (6,083,455 )    $ –      $ (11,995,887 )    $ –   

 

See accompanying notes to financial statements.

 

Nuveen Investments     29   

Financial

Highlights (unaudited)

 

Selected data for a share outstanding throughout each period:

 

                                        
            Investment Operations     Less Distributions                     
      Beginning
Net Asset
Value		      Net
Investment
Income (Loss)(a)		     Net
Realized/
Unrealized
Gain (Loss)		     Total     Net
Investment
Income		     Capital
Gains		     Return of
Capital		     Total     Offering
Costs		     Ending
Net
Asset
Value		      Ending
Market
Value		  

NASDAQ Premium Income & Growth (QQQX)

                                                                                           

Year Ended 12/31:

                         

2011(f)

    $ 14.67       $ (.02 )    $ .59      $ .57      $ (.63 )***    $ –      $ –      $ (.63 )    $ –      $ 14.61         $14.38   

2010

      14.08         (.04 )      1.89        1.85        –            –        (1.26 )      (1.26 )      –        14.67         14.10   

2009

      11.28         (.05 )      4.70        4.65        –        –        (1.85 )      (1.85 )      –        14.08         14.40   

2008

      20.63         (.08 )      (7.42 )      (7.50 )      (.27 )      –        (1.58 )      (1.85 )      –        11.28         9.29   

2007(d)

      19.10         (.07 )      3.34        3.27        –        –        (1.70 )      (1.70 )      (.04 )      20.63         18.26   

Dow 30SM Premium & Dividend Income (DPD)

                                                                                           

Year Ended 12/31:

                         

2011(f)

      14.39         .11        .91        1.02        (.62 )***      –        –        (.62 )      –        14.79         $14.53   

2010

      13.93         .22        1.48        1.70        (.35 )      –        (.89 )      (1.24 )      –        14.39         14.53   

2009

      13.20         .26        2.27        2.53        (.26 )      –        (1.54 )      (1.80 )      –        13.93         14.74   

2008

      19.95         .29        (5.24 )      (4.95 )      (.29 )      (1.43 )      (.08 )      (1.80 )      –        13.20         12.99   

2007

      20.14         .25        1.36        1.61        (.47 )      (.04 )      (1.29 )      (1.80 )      –        19.95         17.91   

2006

      19.13         .25        2.56        2.81        (.25 )      –        (1.55 )      (1.80 )      – **      20.14         20.96   

Dow 30SM Enhanced Premium & Income (DPO)

                                                                                           

Year Ended 12/31:

                         

2011(f)

      10.93         .08        .91        .99        (.51 )***      –        –        (.51 )      –        11.41         $11.41   

2010

      10.35         .15        1.45        1.60        (.63 )      –        (.39 )      (1.02 )      –        10.93         10.38   

2009

      9.99         .20        2.16        2.36        (.20 )      –        (1.80 )      (2.00 )      –        10.35         10.94   

2008

      17.75         .26        (6.02 )      (5.76 )      (.26 )      –        (1.74 )      (2.00 )      – **      9.99         8.89   

2007(e)

      19.10         .15        (.48 )      (.33 )      (.15 )      (.05 )      (.80 )      (1.00 )      (.02 )      17.75         15.98   

 

  30       Nuveen Investments

      Ratios/Supplemental Data        
Total Returns            Ratios to Average Net Assets
Before Reimbursement(c)		        
Based
on
Market
Value(b)		     Based
on Net
Asset
Value(b)		     Ending
Net
Assets
(000)		      Expenses     Net
Investment
Income (Loss)		     Portfolio
Turnover
Rate		  
                                              
          
  6.46 %      3.88 %    $ 269,525         1.07 %*      (.24 )%*      50 % 
  7.46        14.05        270,534         1.08        (.25 )      33   
  79.21        44.32        259,728         1.11        (.38 )      0   
  (41.45 )      (37.07 )      206,291         1.05        (.47 )      19   
  (.30 )      17.95        377,248         1.06 *      (.36 )*      31   
                                              
          
  4.25 %      7.10 %      177,728         1.03 *      1.51 *      0   
  7.87        13.03        172,293         1.10        1.59        0   
  29.66        20.59        165,397         1.14        2.02        6   
  (18.80 )      (25.93 )      153,527         1.08        1.72        11   
  (6.48 )      8.42        230,464         1.07        1.23        0   
  (26.74 )      15.54        231,007         1.10        1.30        0   
                                              
          
  14.88 %      9.08 %      316,550         1.03 *      1.36 *      0   
  4.95        16.67        302,657         1.06        1.43        0   
  50.23        26.48        285,171         1.08        2.11        6   
  (35.09 )      (34.33 )      268,628         1.03        1.83        12   
  (15.38 )      (1.58 )      475,312         1.03 *      1.38 *      8   

 

(a) Per share Net Investment Income (Loss) is calculated using the average daily shares method.
(b) For the fiscal years ended subsequent to December 31, 2009, 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.

For the fiscal years ended subsequent to December 31, 2009, Total Return Based on Net Asset Value is the combination of changes in net asset value, reinvested divided 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.

For the fiscal years ended December 31, 2009, and prior, the Fund’s Total Returns Based on Market Value and Net Asset Value reflect the performance of the Fund based on a calculation approved by Fund management of IQ Advisors, the Fund’s adviser prior to the close of business on October 6, 2010. Total returns based on the calculations described above may have produced substantially different results. Total returns are not annualized.

(c) Ratios do not reflect the effect of custodian fee credits earned on the Fund's net cash deposit with the custodian bank, where applicable.
(d) For the period January 30, 2007 (commencement of operations) through December 31,2007.
(e) For the period May 30, 2007 (commencement of operations) through December 31,2007.
(f) For the six months ended June 30, 2011.
  * Annualized.
** Rounds to less than $.01 per share.
*** Represents distributions paid “From and in excess of net investment income” for the six months ended June 30, 2011.

 

 

See accompanying notes to financial statements.

 

Nuveen Investments     31   

Notes to

Financial Statements (Unaudited)

 

1. General Information and Significant Accounting Policies

General Information

The funds covered in this report and their corresponding New York Stock Exchange (“NYSE”) symbols are NASDAQ Premium Income & Growth Fund Inc. (QQQX), Dow 30SM Premium & Dividend Income Fund Inc. (DPD) and Dow 30SM Enhanced Premium & Income Fund Inc. (DPO) (each a “Fund” and collectively, the “Funds”). The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end registered investment companies.

Effective January 1, 2011, the Funds’ adviser, Nuveen Asset Management, a wholly owned subsidiary of Nuveen Investments, Inc. (“Nuveen”), changed its name to Nuveen Fund Advisors, Inc. (the “Adviser”).

After the close of business on October 6, 2010, for Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium & Income (DPO), and after the close of business on October 28, 2010, for NASDAQ Premium Income & Growth (QQQX), the Adviser assumed the role of investment adviser for the Funds from IQ Investment Advisers LLC (“IQ Advisors”) following a vote by shareholders of each Fund. The transition from IQ Advisors to the Advisor did not result in any change to the Funds’ investment objectives or principal investment strategies.

NASDAQ Premium Income & Growth’s (QQQX) investment objective is high current income and capital appreciation. The Fund pursues its investment objective principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets in a portfolio of investments (the “NASDAQ Investment Portfolio”) designed to closely track the performance, before fees and expenses, of the NASDAQ 100® Index. Second, in attempting to generate premium income and reduce the volatility of the Fund’s returns, with the intent of improving the Fund’s risk-adjusted returns, the Fund will write (sell) call options on the Index, which are fully collateralized by the NASDAQ Investment Portfolio. Under normal circumstances, the notional value of the written options is not expected to exceed 50% of the Fund’s net assets.

Dow 30SM Premium & Dividend Income’s (DPD) investment objective is to provide a high level of current income, with a secondary objective of capital appreciation. The Fund pursues its investment objective principally through a two-part strategy. First, the Fund will invest, under normal circumstances, substantially all of its net assets (including the proceeds of any borrowings for investment purposes) in the thirty stocks included in the Dow Jones Industrial AverageSM (“DJIA”) (the “Stocks”) in approximately the amounts such Stocks are weighted in the DJIA and/or in other securities or financial instruments that are intended to correlate with the DJIA (the “Other Instruments”). Second, the Fund will write (sell) covered call options on some or all of the Stocks or Other Instruments.

Dow 30SM Enhanced Premium & Income’s (DPO) investment objective is to provide a high level of premium and dividend income and the potential for capital appreciation. Under normal circumstances, the Fund will purchase all of the thirty common stocks included in the DJIA, weighted in approximately the same proportions as in the DJIA (“Dow Stocks”). The Fund will also purchase other securities or financial instruments, primarily swap contracts, designed to provide additional investment exposure (i.e., leverage) to the return of the Dow Stocks (“Additional Dow Exposure”). The Dow Stocks and the Additional Dow Exposure are collectively referred to as “Total Dow Exposure.” The Fund also will engage in certain option strategies, primarily consisting of writing (selling) covered call options on some or all of the Dow Stocks (“Options”). The Options will be written on approximately 50% (or less) of the Total Dow Exposure at the time they are written. As a result, generally 50% (or more) of the Fund’s Total Dow Exposure will have the potential for full capital appreciation. The portion of the Total Dow Exposure subject to the Options will be limited in the amount of capital appreciation that may be obtained.

Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

Investment Valuation

Common stocks and other equity-type securities are valued at the last sales price on the securities exchange on which such securities are primarily traded and are generally classified as Level 1 for fair value measurement purposes. Securities primarily traded on the NASDAQ National Market (“NASDAQ”) are valued, except as indicated below, at the NASDAQ Official Closing Price and are generally classified as Level 1. However, securities traded on a securities exchange or NASDAQ for which there were no transactions on a given day or securities not listed on a securities exchange or NASDAQ are valued at the quoted bid price. Prices of certain American Depository Receipts (“ADR”) held by the Fund that trade in the United States are valued based on the last traded price, official closing price, or the most recent bid price of the underlying non-U.S.-traded stock, adjusted as appropriate for the underlying-to-ADR conversion ratio and foreign exchange rate, and from time-to-time foreign currencies may also be adjusted further to take into account material events that may take place after the close of the local non-U.S. market but before the close of the NYSE. These securities generally represent a transfer from a Level 1 to a Level 2 security.

 

  32       Nuveen Investments

Prices of fixed-income securities and total return swaps are provided by a pricing service approved by the Fund’s Board of Directors. These securities are generally classified as Level 2. When price quotes are not readily available for fixed-income securities and total return swaps the pricing service establishes a security’s fair value using methods that may include consideration of the following: 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. In pricing certain securities, particularly less liquid and lower quality securities, the pricing service may consider information about a security, its issuer, or market activity, provided by the Adviser. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs.

The values of exchange-traded options are based on the mean of the closing bid and ask prices. Exchange-traded options are generally classified as Level 1. Options traded in the over-the-counter market are valued using an evaluated mean price and are generally classified as Level 2.

Euro dollar time deposits are valued at contract amount plus interest, which approximates market value. These securities are generally classified as Level 1.

Certain securities may not be able to be priced by the pre-established pricing methods as described above. Such securities may be valued by the Funds’ Board of Directors or its designee at fair value. These securities generally include, but are not limited to, restricted securities (securities which may not be publicly sold without registration under the Securities Act of 1933, as amended) for which a pricing service is unable to provide a market price; securities whose trading has been formally suspended; debt securities that have gone into default and for which there is no current market quotation; a security whose market price is not available from a pre-established pricing source; a security with respect to which an event has occurred that is likely to materially affect the value of the security after the market has closed but before the calculation of a Fund’s net asset value (as may be the case in non-U.S. markets on which the security is primarily traded) or make it difficult or impossible to obtain a reliable market quotation; and a security whose price, as provided by the pricing service, is not deemed to reflect the security’s fair value. As a general principle, the fair value of an issue of securities would appear to be the amount that the owner might reasonably expect to receive for them it in a current sale. A variety of factors may be considered in determining the fair value of such these securities, which may include consideration of the following: 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. These securities are generally classified as Level 2 or Level 3 depending on the priority of the significant inputs. Regardless of the method employed to value a particular security, all valuations are subject to review by the Funds’ Board of Directors or its designee.

Refer to Footnote 2 – Fair Value Measurements for further details on the leveling of securities held by the Funds as of the end of the reporting period.

Investment Transactions

Investment transactions are recorded on a trade date basis. Realized gains and losses from investment transactions are determined on the specific identification method, which is the same basis for federal income tax purposes. 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 June 30, 2011, the Funds had no outstanding when-issued/delayed delivery purchase commitments.

Investment Income

Dividend income is recorded on the ex-dividend date or, for foreign securities, when information is available. Interest income, which reflects the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Interest income also reflects paydown gains and losses, if any.

Professional Fees

Professional fees presented on the Statement of Operations consist of legal fees incurred in the normal course of operations, audit fees, tax consulting fees and, in some cases, workout expenditures. Workout expenditures are incurred in an attempt to protect or enhance an investment, or to pursue other claims or legal actions on behalf of Fund shareholders.

Income Taxes

Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all of its investment company taxable income to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. In any year when a Fund realizes net capital gains, each Fund may choose to distribute all or a portion of its net capital gains to shareholders, or alternatively, to retain all or a portion of its net capital gains and pay federal corporate income taxes on such retained gains.

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.

 

Nuveen Investments     33   

Notes to

Financial Statements (Unaudited) (continued)

 

Distributions to Shareholders

Distributions to shareholders are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Each Fund makes quarterly cash distributions of a stated dollar amount per share. Subject to approval and oversight by the Funds’ Board of Directors, each Fund seeks to maintain a stable distribution level designed to deliver the long-term return potential of the Fund’s investment strategy through regular quarterly distributions (a “Managed Distribution Program”). Total distributions during a calendar year generally will be made from a Fund’s net investment income, net realized capital gains and net unrealized capital gains in the Fund’s portfolio, if any. The portion of distributions paid attributed to net unrealized gains, if any, is distributed from the Fund’s assets and is treated by shareholders as a non-taxable distribution (“Return of Capital”) for tax purposes. In the event that total distributions during a calendar year exceed the Fund’s total return on net asset value, the difference will reduce net asset value per share. If the Fund’s total return on net asset value exceeds total distributions during a calendar year, the excess will be reflected as an increase in net asset value per share. The final determination of the source and character of all distributions for the fiscal year are made after the end of the fiscal year and are reflected in the financial statements contained in the annual report as of December 31 each year.

The actual character of distributions made by the Funds during the fiscal year ended December 31, 2010, is reflected in the accompanying financial statements.

The distributions made by the Funds during the six months ended June 30, 2011, are provisionally classified as being “From and in excess of net investment income,” and those distributions will be classified as being from net investment income, net realized capital gains and/or a return of capital for tax purposes after the fiscal year end. For purposes of calculating “Undistributed (Over-distribution of) net investment income” as of June 30, 2011, the distribution amounts provisionally classified as “From and in excess of net investment income” were treated as being entirely from net investment income. Consequently, the financial statements at June 30, 2011, reflect an over-distribution of net investment income.

Options Transactions

Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and is authorized to purchase and write (sell) call and put options on securities, futures, swaps (“swaptions”) or currencies. The purchase of options involves the risk of loss of all or a part of the cash paid for the options (the premium). The market risk associated with purchasing options is limited to the premium paid. The counterparty credit risk of purchasing options, however, needs to take into account the current value of the option, as this is the performance expected from the counterparty. When the Fund purchases an option, an amount equal to the premium paid (the premium plus commission) is recognized as a component of “Call and/or Put options purchased, at value” on the Statement of Asset and Liabilities. When a Fund writes an option, an amount equal to the net premium received (the premium less commission) is recognized as a component of “Call options written, at value” on the Statement of Assets and Liabilities and is subsequently adjusted to reflect the current value of the written option until the option expires or the Fund enters into a closing purchase transaction. The changes in the value of options purchased during the fiscal period are recognized as a component of “Change in net unrealized appreciation (depreciation) of call and/or put options purchased” on the Statement of Operations. The changes in values of the options written during the reporting period are recognized as a component of “Change in net unrealized appreciation (depreciation) of options written” on the Statement of Operations. When an option is exercised or expires or the Fund enters into a closing purchase transaction, the difference between the net premium received and any amount paid at expiration or on executing a closing purchase transaction, including commission, is recognized as a component of “Net realized gain (loss) from options purchased and/or written” on the Statement of Operations. The Fund, as writer of an option, has no control over whether the underlying instrument may be sold (called) or purchased (put) and as a result bears the risk of an unfavorable change in the market value of the instrument underlying the written option. There is also the risk the Fund may not be able to enter into a closing transaction because of an illiquid market.

During the six months ended June 30, 2011, NASDAQ Premium Income & Growth (QQQX) wrote calls options on a broad equity index, while investing in a portfolio of equities, and Dow 30SM Premium & Dividend Income (DPD) and Dow 30SM Enhanced Premium Income (DPO) wrote covered call options on individual stocks held in their portfolios to enhance returns while foregoing some upside potential. The Funds did not purchase call or put options during the six months ended June 30, 2011.

The average notional amount of call option written during the six months ended June 30, 2011, were as follows:

 

      NASDAQ*
Premium
Income &
Growth
(QQQX)		     Dow 30SM**
Premium  &
Dividend
Income
(DPD)		     Dow 30SM**
Enhanced
Premium  &
Income
(DPO)		  

Average notional amount of call options written***

    $ (140,125,000 )    $ (82,136,777 )    $ (193,969,872 ) 
* The Fund wrote call options on a broad equity index.
** The Fund wrote call options on individual stocks.
*** The average notional amount is calculated based on the outstanding notional at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

Refer to Footnote 3 – Derivative Instruments and Hedging Activities and Footnote 5 – Investment Transactions for further details on options activity.

 

  34       Nuveen Investments

Swap Contracts

Each Fund is authorized to enter into swap contracts consistent with their investment objectives and policies to reduce, increase or otherwise alter its risk profile or to alter its portfolio characteristics (i.e. duration, yield curve positioning and credit quality).

Each Fund is subject to equity price risk in the normal course of pursuing its investment objectives and may enter into a total return swap contracts to manage its exposure to the market or certain sectors of the market, or to create exposure to certain securities to which it is otherwise not exposed. Total return swap contracts involve commitments to pay interest in exchange for a market-linked return, both based on specified notional amounts. To the extent the total return of the security or index underlying the transaction exceeds or falls short of offsetting the interest rate obligation, the Fund will receive a payment from or make a payment to the counterparty.

Total return swap contracts are valued daily. The Funds accrue daily the periodic payments expected to be paid and received on each swap contract and recognize the daily change in the market value of the Funds’ contractual rights and obligations under the contracts. The net amount recorded on these transactions for each counterparty is recognized on the Statement of Assets and Liabilities as a component of “Unrealized appreciation or depreciation on total return swaps” with the change during the fiscal period recognized on the Statement of Operations as a component of “Change in net unrealized appreciation (depreciation) of swaps.” Income received or paid by a Fund is recognized as a component of “Net realized gain (loss) from swaps” on the Statement of Operations, in addition to the net realized gains or losses recognized upon the termination of the swap contract, and are equal to the difference between the Funds’ basis in the swap and the proceeds from (or cost of) the closing transaction. The amount of the payment obligation is based on the notional amount of the swap contract. Payments received or made at the beginning of the measurement period, if any, are recognized as a component of “Total return swap premiums paid and/or received” on the Statement of Assets and Liabilities.

During the six months ended June 30, 2011, Dow 30SM Enhanced Premium & Income (DPO) entered into total return swap contracts that receive the total return of the Dow Jones Industrial Average while paying a floating rate of interest; adding leverage and equity exposure to the Fund. The average notional amount of total return swap contacts outstanding during the six months ended June 30, 2011, were as follows:

 

      Dow 30SM
Enhanced
Premium  &
Income
(DPO)		  

Average notional amount of total return swaps outstanding*

    $ 92,318,130   

* The average notional amount is calculated based on the outstanding contracts at the beginning of the fiscal year and at the end of each fiscal quarter within the current fiscal year.

Refer to Footnote 3 – Derivative Instruments and Hedging Activities for further details on swap activity.

Market and Counterparty 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 (counterparty credit risk). The potential loss could exceed the value of the financial assets recorded on the financial statements. Financial assets, which potentially expose each Fund to counterparty credit risk, consist principally of cash due from counterparties on forward, option and swap transactions, when applicable. The extent of each Fund’s exposure to counterparty credit risk in respect to these financial assets approximates their carrying value as recorded on the Statement of Assets and Liabilities. Futures contracts, when applicable, expose a Fund to minimal counterparty credit risk as they are exchange traded and the exchange’s clearing house, which is counterparty to all exchange traded futures, guarantees the futures contracts against default.

Each Fund helps manage counterparty credit risk by entering into agreements only with counterparties the Adviser 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. 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.

 

Nuveen Investments     35   

Notes to

Financial Statements (Unaudited) (continued)

 

Indemnifications

Under the Funds’ organizational documents, its officers and directors 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 expects the risk of loss to be remote.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP 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 from operations during the reporting period. Actual results may differ from those estimates.

2. Fair Value Measurements

Fair value is defined as the price that the Funds would receive upon selling an investment or transferring a liability in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. A three-tier hierarchy is used to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability. Observable inputs are based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are based on the best information available in the circumstances. The three-tier hierarchy of inputs is 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 methodologies 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 June 30, 2011:

 

NASDAQ Premium Income & Growth (QQQX)    Level 1        Level 2        Level 3        Total  

Investments:

                  

Common Stocks

    $ 275,262,491         $     –         $     –         $ 275,262,491   

Short-Term Investments

      2,739,393           –           –           2,739,393   

Derivatives:

                  

Call Options Written

      (2,952,000 )         –           –           (2,952,000 ) 

Total

    $ 275,049,884         $ –         $ –         $ 275,049,884   
Dow 30SM Premium & Dividend Income (DPD)    Level 1        Level 2        Level 3        Total  

Investments:

                  

Common Stocks

    $ 179,448,820         $ –         $ –         $ 179,448,820   

Short-Term Investments

      557,020           1,999,784           –           2,556,804   

Derivatives:

                  

Call Options Written

      –           (913,903 )         –           (913,903 ) 

Total

    $ 180,005,840         $ 1,085,881         $ –         $ 181,091,721   
Dow 30SM Enhanced Premium & Income (DPO)    Level 1        Level 2        Level 3        Total  

Investments:

                  

Common Stocks

    $ 298,534,600         $ –         $ –         $ 298,534,600   

Short-Term Investments

      17,981,108           5,999,352           –           23,980,460   

Derivatives:

                  

Call Options Written

      –           (2,193,367 )         –           (2,193,367 ) 

Total Return Swaps*

      –           2,822,789           –           2,822,789   

Total

    $ 316,515,708         $ 6,628,774         $ –         $ 323,144,482   

* Represents net unrealized appreciation (depreciation) as reported in the Fund’s Portfolio of Investments.

During the six months ended June 30, 2011, the Funds recognized no significant transfers to or from Level 1, Level 2 or Level 3.

 

  36       Nuveen Investments

3. Derivative Instruments and Hedging Activities

The Funds record derivative instruments at fair value, with changes in fair value recognized on the Statement of Operations, when applicable. Even though the Funds’ investments in derivatives may represent economic hedges, they are not considered to be hedge transactions for financial reporting purposes. For additional information on the derivative instruments in which each Fund was invested during and at the end of the reporting period, refer to the Portfolios of Investments, Financial Statements and Footnote 1 – General Information and Significant Accounting Policies.

The following tables present the fair value of all derivative instruments held by the Funds as of June 30, 2011, the location of these instruments on the Statement of Assets and Liabilities, and the primary underlying risk exposure.

NASDAQ Premium Income & Growth (QQQX)

 

        

Location on the Statement of Assets and Liabilities

  
          

Asset Derivatives

   

Liability Derivatives

  
Underlying
Risk Exposure		   Derivative
Instrument		    Location    Value    Location    Value  

Equity Price

   Options     –    $    –    Call options written, at value    $ 2,952,000   

Dow 30SM Premium & Dividend Income (DPD)

 

        

Location on the Statement of Assets and Liabilities

  
        

Asset Derivatives

   

Liability Derivatives

  
Underlying
Risk Exposure		   Derivative
Instrument		    Location    Value    Location    Value  

Equity Price

   Options     –    $    –    Call options written, at value    $ 913,903   

Dow 30SM Enhanced Premium & Income (DPO)

 

        

Location on the Statement of Assets and Liabilities

  
        

Asset Derivatives

   

Liability Derivatives

  
Underlying
Risk Exposure		   Derivative
Instrument		    Location   Value    Location   Value  

Equity Price

   Options     –   $              –    Call options written, at value   $ 2,193,367   

Equity Price

   Swaps    Unrealized appreciation on total
return swaps*		    2,822,789    Unrealized depreciation on total
return swaps*		      —   

* Value represents cumulative gross appreciation (depreciation) of swap contracts as reported in the Fund’s Portfolio of Investments.

The following tables present the amount of net realized gain (loss) and change in net unrealized appreciation (depreciation) recognized for the six months ended June 30, 2011, on derivative instruments, as well as the primary risk exposure associated with each.

 

Net Realized Gain (Loss) from Call Options Written    NASDAQ
Premium
Income &
Growth
(QQQX)		     Dow 30SM
Premium  &
Dividend
Income
(DPD)		     Dow 30SM
Enhanced
Premium  &
Income
(DPO)		  

Risk Exposure

       

Equity Price

    $ (2,322,754 )    $ (2,326,412 )    $ (5,249,554 ) 

 

Net Realized Gain (Loss) from Swaps    Dow 30SM
Enhanced
Premium  &
Income
(DPO)		  

Risk Exposure

   

Equity Price

    $ 16,356,877   

 

Change in Net Unrealized Appreciation (Depreciation) of Call Options Written    NASDAQ
Premium
Income &
Growth
(QQQX)		     Dow 30SM
Premium &
Dividend
Income
(DPD)		     

Dow 30SM
Enhanced
Premium &

Income
(DPO)

  

Risk Exposure

        

Equity Price

    $ (504,004 )    $ 896,664       $ 2,012,355   

 

Nuveen Investments     37   

Notes to

Financial Statements (continued)

 

 

Change in Net Unrealized Appreciation (Depreciation) of Swaps    Dow 30SM
Enhanced
Premium  &
Income
(DPO)		  

Risk Exposure

   

Equity Price

    $ (8,322,212 ) 

4. Fund Shares

QQQX, DPD and DPO have not repurchased any of their outstanding shares since the inception of their repurchase programs.

Transactions in Fund shares were as follows:

 

     NASDAQ Premium
Income & Growth (QQQX)		      Dow 30SM Premium &
Dividend Income (DPD)		      Dow 30SM Enhanced
Premium & Income (DPO)		  
     

Six Months
Ended
6/30/11

      Year Ended
12/31/10		     

Six Months
Ended
6/30/11

     Year Ended
12/31/10		     

Six Months
Ended
6/30/11

      Year Ended
12/31/10		  

Shares issued to shareholders due to reinvestment of distributions

      –         –         42,268         104,158         58,280         114,689   

5. Investment Transactions

Purchases and sales (including maturities but excluding short-term investments and derivative transactions) for the six months ended June 30, 2011, were as follows:

 

     

NASDAQ
Premium
Income &
Growth
(QQQX)

      Dow 30SM
Premium  &
Dividend
Income
(DPD)		      Dow 30SM
Enhanced
Premium  &
Income
(DPO)		  

Purchases

    $ 140,851,112       $ –       $ –   

Sales and maturities

      152,283,824         5,505,142         5,119,072   

Transactions in call options written during the six months ended June 30, 2011, were as follows:

 

    NASDAQ Premium
Income & Growth (QQQX)		     Dow 30sm Premium &
Dividend Income (DPD)		     DOW 30sm Enhanced
Premium & Income (DPO)		  
     Number of
Contracts		     Premiums
Received		     Number of
Contracts		     Premiums
Received		     Number of
Contracts		     Premiums
Received		  

Call options outstanding, beginning of period

     600      $ 2,545,292        15,800      $ 1,051,663        36,000      $ 2,396,760   

Call options written

     1,800        5,844,171        75,600        4,222,839        180,000        10,056,698   

Call options terminated in closing purchase transactions

     (1,800 )      (6,538,675 )      (29,800 )      (2,125,888 )      (69,600 )      (4,960,648 ) 

Call options expired

     –        –        (46,600 )      (2,340,544 )      (110,400 )      (5,553,442 ) 

Call options outstanding, end of period

     600      $ 1,850,788        15,000      $ 808,070        36,000      $ 1,939,368   

6. 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 certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts as detailed below. Temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds.

At June 30, 2011, the cost and unrealized appreciation (depreciation) of investments (excluding investments in derivatives), as determined on a federal income tax basis, were as follows:

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Cost of investments

    $ 229,616,461         $ 142,838,023         $ 316,771,469   

Gross unrealized:

             

Appreciation

      59,323,426           47,703,215           39,674,078   

Depreciation

      (10,938,003 )         (8,535,614 )         (33,930,487 ) 

Net unrealized appreciation (depreciation) of investments

    $ 48,385,423         $ 39,167,601         $ 5,743,591   

 

  38       Nuveen Investments

Permanent differences, primarily due to return of capital distributions, foreign currency reclasses, net operating losses and tax basis earning and profits adjustments resulted in reclassifications among the Funds’ components of net assets at December 31, 2010, the Funds’ last tax year-end, as follows:

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Paid-in surplus

    $ (24,026,179 )       $ (12,117,505 )       $ (24,185,138 ) 

Undistributed (Over-distribution of) net investment income

      24,026,179           12,117,505           24,185,138   

Accumulated net realized gain (loss)

          –               –               –   

The tax components of undistributed net ordinary income and net long-term capital gains at December 31, 2010, the Funds’ last tax year end, were as follows:

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Undistributed net ordinary income

    $     –         $     –         $     –   

Undistributed net long-term capital gains

          –               –               –   

The tax character of distributions paid during the Funds’ last tax year ended December 31, 2010, was designated for purposes of the dividends paid deduction as follows:

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Distributions from net ordinary income*

    $     –         $ 4,102,297         $ 17,310,225   

Distributions from net long-term capital gains

          –               –               –   

Return of capital

      23,314,917           10,625,600           10,867,638   

* Net ordinary income consists of net taxable income derived from dividends and interest, and current year earnings and profits attributable to realized gains.

At December 31, 2010, the Funds’ last tax year end, the 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:

 

      NASDAQ
Premium
Income &
Growth
(QQQX)		        Dow 30SM
Premium  &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Expiration:

             

December 31, 2015

    $ 4,607,477         $ –         $ –   

December 31, 2017

      14,092,780           7,972,909           70,689,942   

December 31, 2018

      4,114,782           –           –   

Total

    $ 22,815,039         $ 7,972,909         $ 70,689,942   

During the Funds’ last tax year ended December 31, 2010, the following Funds utilized their capital loss carryforwards as follows:

 

      Dow 30SM
Premium  &
Dividend
Income
(DPD)		        Dow 30SM
Enhanced
Premium &
Income
(DPO)		  

Utilized capital loss carryforwards

    $ 1,491,905         $ 13,317,500   

7. Management Fees and Other Transactions with Affiliates

Each Fund’s management fee consists of two components – a fund-level fee, based only on the amount of assets within the Fund, and a complex-level fee, based on the aggregate amount of all eligible fund assets managed by the Adviser. This pricing structure enables Fund shareholders to benefit from growth in the assets within their Fund as well as from growth in the amount of complex-wide assets managed by the Adviser.

 

Nuveen Investments     39   

Notes to

Financial Statements (continued)

 

The annual fund-level fee for each Fund, payable monthly, is calculated according to the following schedule:

Average Daily Managed Assets    NASDAQ Premium Income & Growth (QQQX)
Dow 30SM Premium & Dividend Income (DPD)
Dow 30SM Enhanced  Premium & Income (DPO)
Fund-Level Fee Rate		  

For the first $500 million

      0.7000 % 

For the next $500 million

      0.6750   

For the next $500 million

      0.6500   

For the next $500 million

      0.6250   

For managed assets over $2 billion

      0.6000   

The annual complex-level fee for each Fund, payable monthly, is calculated according to the following schedule:

 

Complex-Level Managed Asset Breakpoint Level*    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   

* For the fund-level and complex-level fees, managed assets include closed-end fund assets managed by the Adviser that are attributable to financial leverage. For these purposes, financial leverage includes the funds’ use of preferred stock and borrowings and certain 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 a TOB trust that has been effectively financed by the trust’s issuance of floating rate securities, subject to an agreement by the Adviser as to certain funds to limit the amount of such assets for determining managed assets in certain circumstances. The complex-level fee is calculated based upon the aggregate daily managed assets of all Nuveen funds that constitute “eligible assets.” Eligible assets do not include assets attributable to investments in other Nuveen funds and assets in excess of $2 billion added to the Nuveen Fund complex in connection with the Adviser’s assumption of the management of the former First American Funds effective January 1, 2011. As of June 30, 2011, the complex-level fee rate for each of these Funds was .1774%.

The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Adviser has entered into sub-advisory agreements with Nuveen HydePark Group, LLC (“HydePark”) a subsidiary of Nuveen, under which HydePark manages the investment portfolios of the Funds. HydePark is compensated for its services to the Funds from the management fees paid to the Adviser.

The Funds pays no compensation directly to those of its directors 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 has adopted a deferred compensation plan for independent directors that enables directors 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.

8. Subsequent Events

Fair Value Measurements and Disclosures

On May 12, 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2011-04 (“ASU No. 2011-04”) modifying Topic 820, Fair Value Measurements and Disclosures. At the same time, the International Accounting Standards Board (“IASB”) issued International Financial Reporting Standard (“IFRS”) 13, Fair Value Measurement. The objective of the FASB and IASB is convergence of their guidance on fair value measurements and disclosures. Specifically, ASU No. 2011-04 requires reporting entities to disclose i) the amounts of any transfers between Level 1 and Level 2, and the reasons for the transfers, ii) for Level 3 fair value measurements, a) quantitative information about significant unobservable inputs used, b) a description of the valuation processes used by the reporting entity and c) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs if a change in those inputs might result in a significantly higher or lower fair value measurement. The effective date of ASU No. 2011-04 is for interim and annual periods beginning after December 15, 2011. At this time, management is evaluating the implications of this guidance and the impact it will have on the financial statement amounts and footnote disclosures, if any.

 

  40       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 Automatic Reinvestment Plan

Your Nuveen Closed-End Fund allows you to conveniently reinvest 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 compounding. Just like distributions in cash, there may be times when income or capital gains taxes may be payable on 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 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. Distributions received to purchase shares in the open market will normally be invested shortly after the distribution payment date. No interest will be paid on 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 distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions.

 

Nuveen Investments     41   

Flexible

You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change.

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 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.

 

  42       Nuveen Investments

Notes

 

Nuveen Investments     43   

Notes

 

  44       Nuveen Investments

Notes

 

Nuveen Investments     45   

Glossary of Terms

Used in this Report

 

¢  

Average Annual Total Return: This is a commonly used method to express an investment’s performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment’s actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered.

 

¢  

Current Distribution Rate: Market yield is based on the Fund’s current annualized quarterly distribution divided by the Fund’s current market price. The Fund’s quarterly distributions to its shareholders may be comprised of ordinary income, net realized capital gains and, if at the end of the calendar year the Fund’s cumulative net ordinary income and net realized gains are less than the amount of the Fund’s distributions, a tax return of capital.

 

¢  

Net Asset Value (NAV): A Fund’s NAV per common share is calculated by subtracting the liabilities of 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.

 

  46       Nuveen Investments

Other Useful Information

 

Board of Directors

John P. Amboian

Robert P. Bremner

Jack B. Evans

William C. Hunter

David J. Kundert

William J. Schneider

Judith M. Stockdale

Carole E. Stone

Virginia L. Stringer

Terence J. Toth

Fund Manager

Nuveen Fund Advisors, Inc.

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

PricewaterhouseCoopers 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 most recent twelve-month period ended June 30, 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 (CEO) 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.

Share Information

Each Fund intends to repurchase shares of its own common stock in the future at such times and in such amounts as is deemed advisable. During the period covered by this report, the Funds did not repurchase any of their common shares. Any future repurchases will be reported to shareholders in the next annual or semi-annual report.

 

 

Nuveen Investments     47   

Nuveen Investments:

Serving Investors for Generations

 

Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions through continued adherence to proven, long-term investing principles. Today, we offer a range of high quality equity and fixed-income solutions designed to be integral components of a well-diversified core portfolio.

Focused on meeting investor 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. We market our growing range of specialized investment solutions under the high-quality brands of HydePark, NWQ, Nuveen Asset Management, Santa Barbara, Symphony, Tradewinds and Winslow Capital. In total, Nuveen Investments managed approximately $210 billion of assets as of June 30, 2011.

Find out how we can help you.

To learn more about how the products and services of Nuveen Investments may be able to help you meet your financial goals, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Investors should consider the investment objective and policies, risk considerations, charges and expenses of any investment carefully. Where applicable, be sure to obtain a prospectus, which contains this and other relevant information. To obtain 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

Distributed by

Nuveen Securities, LLC

333 West Wacker Drive

Chicago, IL 60606

www.nuveen.com

   

 

ESA-E-0611D

ITEM 2. CODE OF ETHICS.

Not applicable to this filing.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable to this filing.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable to this filing.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to this filing.

ITEM 6. SCHEDULE OF INVESTMENTS.

 

  (a) See Portfolio of Investments in Item 1.

 

  (b) Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to this filing.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable to this filing.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Directors or Trustees implemented after the registrant last provided disclosure in response to this Item.

ITEM 11. CONTROLS AND PROCEDURES.

 

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (17 CFR 240.13a-15(b) or 240.15d-15(b)).

 

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

File the exhibits listed below as part of this Form.

 

(a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable to this filing.

 

(a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: See Ex-99.CERT attached hereto.

 

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable.

 

(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference: See Ex-99.906 CERT attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) NASDAQ Premium Income & Growth Fund Inc.

 

By (Signature and Title)   /s/ Kevin J. McCarthy
 

Kevin J. McCarthy

(Vice President and Secretary)

Date: September 7, 2011

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: September 7, 2011

 

By (Signature and Title)   /s/ Stephen D. Foy
 

Stephen D. Foy

Vice President and Controller

(principal financial officer)

Date: September 7, 2011