NASDAQ Premium Income & Growth Fund Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

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, Illinois 60606

(Address of principal executive offices) (Zip code)

Kevin J. McCarthy

Vice President and Secretary

333 West Wacker Drive, Chicago, Illinois 60606

(Name and address of agent for service)

Registrant’s telephone number, including area code: 312-917-7700

Date of fiscal year end: 12/31

Date of reporting period: 9/30/10

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q 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 the 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. § 3507.


Item 1. Schedule of Investments


NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2010 (unaudited)   (Percentages shown are based on Net Assets)

 

Industry   Common Stocks               Shares
Held
     Value  

Aerospace & Defense - 1.9%

  Boeing Co. (a)     8,890       $ 591,541   
  General Dynamics Corp.     11,081         695,998   
  L-3 Communications Holdings, Inc. (a)     19,870         1,436,005   
  Lockheed Martin Corp.     10,942         779,946   
  Precision Castparts Corp.     4,735         603,002   
  United Technologies Corp.     9,527         678,608   
                  
                   4,785,100   

Auto Components - 0.3%

  Gentex Corp.     43,644         851,494   

Beverages - 0.2%

  Hansen Natural Corp. (b)     13,319         620,932   

Biotechnology - 7.4%

  Amgen, Inc. (a)(b)     91,396         5,036,834   
  Biogen Idec, Inc. (a)(b)     63,854         3,583,486   
  Celgene Corp. (a)(b)     57,851         3,332,796   
  Gilead Sciences, Inc. (a)(b)     178,720         6,364,219   
  Incyte Corp. (b)     27,439         438,750   
                  
                   18,756,085   

Capital Markets - 0.9%

  Affiliated Managers Group, Inc. (a)(b)     6,881         536,787   
  SEI Investments Co.     46,063         936,921   
  T. Rowe Price Group, Inc.     18,301         916,240   
                  
                   2,389,948   

Chemicals - 0.2%

  Methanex Corp.     18,457         452,012   
Commercial Services & Supplies - 0.4%   RINO International Corp. (b)     15,846         221,052   
  Tetra Tech, Inc. (b)     21,544         451,778   
  United Stationers, Inc. (b)     6,904         369,433   
                  
                   1,042,263   

Communications Equipment - 11.4%

  Adtran, Inc.     44,163         1,558,954   
  Arris Group, Inc. (b)     77,273         754,957   
  Blue Coat Systems, Inc. (b)     11,564         278,230   
  Brocade Communications Systems, Inc. (b)     63,253         369,398   
  Cisco Systems, Inc. (a)(b)     294,830         6,456,777   
  InterDigital, Inc. (b)     37,594         1,113,158   
  QUALCOMM, Inc.     293,918         13,261,580   
  Research In Motion Ltd. (a)(b)     86,571         4,215,142   
  Tellabs, Inc.     146,413         1,090,777   
                  
                   29,098,973   

Computers & Peripherals - 21.5%

  Apple, Inc. (a)(b)     183,459         52,056,491   
  Dell, Inc. (b)     163,091         2,113,659   
  STEC, Inc. (b)     26,825         333,971   
  Xyratex Ltd. (b)     21,826         323,899   
                  
                   54,828,020   

Consumer Finance - 0.5%

  Ezcorp, Inc. (b)     38,884         779,235   
  World Acceptance Corp. (a)(b)     12,134         535,838   
                  
                   1,315,073   

Containers & Packaging - 0.5%

  Silgan Holdings, Inc.     40,704         1,290,317   

Distributors - 0.2%

  LKQ Corp. (b)     21,853         454,542   


NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2010 (unaudited) (Percentages shown are based on Net Assets)

 

Industry   Common Stocks                   Shares
Held
    Value  
Diversified Consumer
Services - 1.3%
  Career Education Corp. (b)        48,807      $ 1,047,886   
  Corinthian Colleges, Inc. (b)        46,189        324,247   
  ITT Educational Services, Inc. (b)        12,557        882,380   
  Strayer Education, Inc.        5,611        979,120   
                 
                    3,233,633   
Diversified Telecommunication Services - 0.5%   Neutral Tandem, Inc. (b)        40,551        484,584   
  Windstream Corp.        73,104        898,449   
                 
                    1,383,033   

Electrical Equipment - 0.3%

  Harbin Electric, Inc. (b)        16,094        287,922   
  Woodward Governor Co. (a)        17,409        564,400   
                 
                    852,322   
Electronic Equipment, Instruments & Components - 0.1%   Plexus Corp. (b)        9,449        277,328   
Energy Equipment & Services - 0.1%   Hercules Offshore, Inc. (a)(b)        82,465        218,532   
Health Care Equipment & Supplies - 0.2%   Kinetic Concepts, Inc. (b)        12,997        475,430   
Health Care Providers & Services - 1.4%   Amedisys, Inc. (b)        6,811        162,102   
  Express Scripts, Inc. (a)(b)        68,742        3,347,735   
                 
                    3,509,837   

Health Care Technology - 0.3%

  Quality Systems, Inc.        12,913        856,261   

Hotels, Restaurants & Leisure - 4.1%

  Bob Evans Farms, Inc.        21,212        595,421   
  Cracker Barrel Old Country Store, Inc.        14,719        747,136   
  Ctrip.com International Ltd. (b)(c)        10,472        500,038   
  McDonald’s Corp. (a)        60,610        4,516,051   
  Starbucks Corp. (a)        162,044        4,145,086   
                 
                    10,503,732   

IT Services - 1.7%

  CSG Systems International, Inc. (a)(b)        54,728        997,691   
  Computer Sciences Corp. (a)        16,126        741,796   
  International Business Machines Corp. (a)         16,150        2,166,361   
  Mantech International Corp., Class A (b)        9,337        369,746   
                 
                    4,275,594   

Insurance - 0.2%

  CNA Financial Corp. (b)        14,028        392,644   

Internet & Catalog Retail - 3.5%

  Amazon.com, Inc. (a)(b)        43,802        6,879,542   
  NetFlix, Inc. (b)        9,708        1,574,249   
  PetMed Express, Inc.        26,977        472,098   
                 
                    8,925,889   

Internet Software & Services - 9.3%

  Baidu.com, Inc. (b)(c)           50,500        5,182,310   
  EarthLink, Inc.           154,633        1,405,614   
  eBay, Inc. (a)(b)           160,618        3,919,079   
  Google, Inc., Class A (a)(b)           21,961        11,546,874   
  Sohu.com, Inc. (b)           14,370        827,999   
  ValueClick, Inc. (b)           53,033        693,673   
                 
                                    23,575,549   


NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2010 (unaudited)   (Percentages shown are based on Net Assets)

 

Industry   Common Stocks   Shares
Held
    Value  
Leisure Equipment & Products - 0.3%   Pool Corp.     35,291      $ 708,290   

Life Sciences Tools & Services - 0.4%

  Furiex Pharmaceuticals, Inc. (b)     3,664        41,330   
  Pharmaceutical Product Development, Inc.     43,922        1,088,826   
           
                  1,130,156   

Machinery - 0.7%

  Bucyrus International, Inc.     9,687        671,793   
  Eaton Corp. (a)     6,159        508,056   
  Nordson Corp.     7,283        536,684   
           
                  1,716,533   

Media - 6.1%

  Comcast Corp., Class A     288,763        5,220,835   
  DIRECTV, Class A (b)     114,661        4,773,337   
  Focus Media Holding Ltd. (b)(c)     20,962        509,377   
  News Corp., Class A (a)     245,412        3,205,081   
  News Corp., Class B     25,518        384,301   
  Omnicom Group, Inc.     21,910        865,007   
  Scholastic Corp.     15,610        434,270   
           
                  15,392,208   

Metals & Mining - 0.6%

  Freeport-McMoRan Copper & Gold, Inc., Class B (a)     12,198        1,041,587   
  Steel Dynamics, Inc.     31,629        446,285   
           
                  1,487,872   

Multiline Retail - 0.2%

  Dollar Tree, Inc. (b)     10,814        527,291   

Office Electronics - 0.5%

  Xerox Corp. (a)     111,807        1,157,202   

Personal Products - 0.3%

  USANA Health Sciences, Inc. (b)     18,464        745,207   

Pharmaceuticals - 2.9%

  Endo Pharmaceuticals Holdings, Inc. (b)     41,430        1,377,133   
  Perrigo Co.     10,586        679,833   
  Teva Pharmaceutical Industries Ltd. (a)(c)     101,192        5,337,878   
           
                  7,394,844   

Road & Rail - 1.0%

  CSX Corp. (a)     13,318        736,752   
  Heartland Express, Inc.     21,362        317,653   
  Landstar System, Inc.     18,711        722,619   
  Werner Enterprises, Inc.     33,973        696,107   
           
                  2,473,131   
Semiconductors & Semiconductor Equipment - 8.1%   ASML Holding NV (a)(c)     14,811        440,331   
  Aixtron AG (c)     12,976        386,425   
  Amkor Technology, Inc. (b)     63,442        416,814   
  Atheros Communications, Inc. (b)     12,923        340,521   
  Canadian Solar, Inc. (b)     16,500        268,950   
  Conexant Systems, Inc. (b)     104,746        171,783   
  Cree, Inc. (b)     5,715        310,267   
  Intel Corp. (a)     389,755        7,494,989   
  Intersil Corp., Class A     112,043        1,309,783   
  JA Solar Holdings Co. Ltd. (b)(c)     67,739        632,005   
  Micron Technology, Inc. (b)     40,654        293,115   
  ON Semiconductor Corp. (b)     71,986        519,019   
  Power Integrations, Inc. (a)     24,637        783,210   


NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2010 (unaudited)   (Percentages shown are based on Net Assets)

 

Industry   Common Stocks   Shares
Held
    Value  
  Skyworks Solutions, Inc. (b)     30,088      $ 622,220   
  Tessera Technologies, Inc. (b)     19,288        356,828   
  Texas Instruments, Inc. (a)     74,335        2,017,452   
  Xilinx, Inc. (a)     159,843        4,253,422   
           
                  20,617,134   

Software - 11.4%

  Adobe Systems, Inc. (a)(b)     88,829        2,322,878   
  CA, Inc. (a)     168,005        3,548,266   
  Jack Henry & Associates, Inc.     29,548        753,474   
  Microsoft Corp. (a)     426,098        10,435,140   
  MicroStrategy, Inc., Class A (b)     4,894        423,869   
  Oracle Corp. (a)     335,590        9,010,592   
  SAP AG (a)(c)     7,969        392,951   
  Symantec Corp. (a)(b)     146,567        2,223,421   
           
                  29,110,591   

Specialty Retail - 1.5%

  Dress Barn, Inc. (b)     14,797        351,429   
  Rent-A-Center, Inc.     83,148        1,860,852   
  Tiffany & Co.     10,153        477,089   
  Tractor Supply Co.     27,250        1,080,735   
           
                  3,770,105   

Textiles, Apparel &

Luxury Goods - 0.5%

  Deckers Outdoor Corp. (b)     11,818        590,427   
  Phillips-Van Heusen Corp.     9,008        541,921   
           
                  1,132,348   
    Total Investments Before Options Written
(Cost - $218,695,297*) - 102.9%
            261,727,455   
     Options Written   Number of
Contracts
        

Call Options Written

  NASDAQ Index 100, expiring October 2010 at USD 1,925     100        (851,000
  NASDAQ Index 100, expiring October 2010 at USD 1,950     100        (658,000
  NASDAQ Index 100, expiring November 2010 at USD 1,975     125        (1,003,125
  NASDAQ Index 100, expiring December 2010 at USD 1,950     150        (1,745,250
  NASDAQ Index 100, expiring December 2010 at USD 1,975     150        (1,506,000
    Total Options Written
(Premiums Received - $3,158,995) - (2.3%)
            (5,763,375
    Total Investments, Net of Options Written
(Net Cost - $215,536,302) - 100.6%
            255,964,080   
  Liabilities in Excess of Other Assets - (0.6%)       (1,457,526
           
  Net Assets - 100.0%     $   254,506,554   
           


NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2010 (unaudited)   (Percentages shown are based on Net Assets)

 

  * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2010, as computed for federal income tax purposes, were as follows:

Aggregate cost

   $   218,858,306   
        

Gross unrealized appreciation

   $ 62,713,443   

Gross unrealized depreciation

     (19,844,294
        

Net unrealized appreciation

   $ 42,869,149   
        
  (a) All or a portion of security held as collateral in connection with open option contracts.
  (b) Non-income producing security.
  (c) Depositary receipts.

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 for reporting ease.

Fair Value Measurements - Various inputs are used in determining the fair value of investments, which are as follows:

 

   

Level 1 - price quotations in active markets/exchanges for identical securities.

   

Level 2 - other observable inputs (including, but not limited to: quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs).

   

Level 3 - unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its semi-annual report.

The following table summarizes the inputs used as of September 30, 2010 in determining the fair valuation of the Fund’s investments:

 

Valuation Inputs    Level 1      Level 2      Level 3      Total  

Assets:

           

Investments in Securities:

           

    Long-Term Securities1

   $ 261,727,455       $   -       $   -       $ 261,727,455   

Total

   $   261,727,455       $   -       $   -       $   261,727,455   
  1

See above Schedule of Investments for values in each industry.

 

      Derivative Financial Instruments2  
Valuation Inputs    Level 1     Level 2      Level 3      Total  

Liabilities:

          

    Equity contracts

     $  (5,763,375     $  -         $  -         $  (5,763,375

Total

     $  (5,763,375     $  -         $  -         $  (5,763,375
  2

Derivative financial instruments are options, which are shown at market value.


Item 2. 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 Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form 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)), exactly as set forth below: See EX-99 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 November 24, 2010

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 November 24, 2010

 

 

By (Signature and Title)

   /s/ Stephen D. Foy
   Stephen D. Foy
  

Vice President and Controller

(principal financial officer)

Date November 24, 2010