UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21983
Name of Fund: NASDAQ Premium Income & Growth Fund Inc. (QQQX)
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Mitchell M. Cox, Chief Executive Officer,
NASDAQ Premium Income & Growth Fund Inc., 4 World Financial Center, 6th
Floor, New York, New York 10080.
Registrant's telephone number, including area code: (877) 449-4742
Date of fiscal year end: 12/31/2008
Date of reporting period: 07/01/2008 - 09/30/2008
Item 1 - Schedule of Investments
NASDAQ Premium Income & Growth Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
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Industry Common Stocks Shares Held Value
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Aerospace & Defense - 3.0% Boeing Co. 8,617 $ 494,185
Ceradyne, Inc. (a) 24,712 905,942
General Dynamics Corp. 5,525 406,750
L-3 Communications Holdings, Inc. 43,749 4,301,402
Lockheed Martin Corp. 7,793 854,658
Precision Castparts Corp. 13,255 1,044,229
United Technologies Corp. 6,818 409,489
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8,416,655
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Airlines - 0.4% SkyWest, Inc. 64,535 1,031,269
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Biotechnology - 12.3% Amgen, Inc. (a) 114,043 6,759,329
Biogen Idec, Inc. (a) 75,964 3,820,230
Celgene Corp. (a) 77,342 4,894,202
Crucell NV (a)(b) 33,777 525,570
Genzyme Corp. (a) 95,711 7,742,063
Gilead Sciences, Inc. (a) 194,717 8,875,201
OSI Pharmaceuticals, Inc. (a) 29,620 1,459,970
--------------
34,076,565
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Capital Markets - 0.7% Affiliated Managers Group, Inc. (a) 8,357 692,377
Northern Trust Corp. 16,575 1,196,715
--------------
1,889,092
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Commercial Banks - 0.6% East-West Bancorp, Inc. 34,885 477,925
SVB Financial Group (a) 21,763 1,260,513
--------------
1,738,438
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Communications Equipment - 14.1% ADC Telecommunications, Inc. (a) 49,635 419,416
Cisco Systems, Inc. (a) 574,235 12,954,742
Comtech Telecommunications Corp. (a) 27,393 1,348,831
JDS Uniphase Corp. (a) 88,085 745,199
QUALCOMM, Inc. 368,517 15,835,175
Research In Motion Ltd. (a) 111,420 7,609,986
--------------
38,913,349
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Computers & Peripherals - 12.0% Apple, Inc. (a) 250,786 28,504,337
Dell, Inc. (a) 142,605 2,350,130
International Business Machines Corp. 10,655 1,246,209
NCR Corp. (a) 20,212 445,675
Teradata Corp. (a) 23,346 455,247
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33,001,598
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Diversified Consumer Services - 0.2% ITT Educational Services, Inc. (a) 6,451 521,950
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Diversified Financial Services - 0.5% The NASDAQ Stock Market, Inc. (a) 47,310 1,446,267
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Electronic Equipment & Instruments - 1.3% Electro Scientific Industries, Inc. (a) 42,412 603,099
Flir Systems, Inc. (a) 28,026 1,076,759
National Instruments Corp. 27,041 812,582
Smart Modular Technologies WWH, Inc. (a) 82,509 247,527
Trimble Navigation Ltd. (a) 32,378 837,295
--------------
3,577,262
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1
NASDAQ Premium Income & Growth Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
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Industry Common Stocks Shares Held Value
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Energy Equipment & Services - 0.5% Hercules Offshore, Inc. (a) 95,526 $ 1,448,174
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Food & Staples Retailing - 0.5% The Kroger Co. 18,325 503,571
Walgreen Co. 32,372 1,002,237
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1,505,808
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Health Care Equipment & Supplies - 0.9% ArthroCare Corp. (a) 22,038 610,893
Intuitive Surgical, Inc. (a) 5,914 1,425,156
Kinetic Concepts, Inc. (a) 12,565 359,233
--------------
2,395,282
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Health Care Providers & Services - 1.6% Express Scripts, Inc. (a) 46,385 3,424,141
Lincare Holdings, Inc. (a) 32,628 981,777
--------------
4,405,918
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Hotels, Restaurants & Leisure - 0.3% Darden Restaurants, Inc. 14,897 426,501
McDonald's Corp. 8,335 514,270
--------------
940,771
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Household Durables - 0.6% Garmin Ltd. 32,545 1,104,577
Mohawk Industries, Inc. (a) 6,495 437,698
--------------
1,542,275
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IT Services - 1.2% Affiliated Computer Services, Inc. Class A (a) 26,823 1,358,048
CSG Systems International, Inc. (a) 41,042 719,466
Computer Sciences Corp. (a) 28,942 1,163,179
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3,240,693
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Insurance - 1.2% Arch Capital Group Ltd. (a) 37,983 2,773,898
CNA Financial Corp. 18,511 485,729
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3,259,627
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Internet & Catalog Retail - 1.5% Amazon.com, Inc. (a) 58,651 4,267,447
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Internet Software & Services - 6.5% Baidu.com, Inc. (a)(b) 4,907 1,218,065
eBay, Inc. (a) 230,119 5,150,063
Google, Inc. Class A (a) 27,489 11,009,894
Sohu.com, Inc. (a) 10,035 559,451
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17,937,473
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Life Sciences Tools & Services - 1.2% Invitrogen Corp. (a) 86,863 3,283,421
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Machinery - 1.1% Eaton Corp. 28,248 1,586,973
Middleby Corp. (a) 19,491 1,058,556
Terex Corp. (a) 11,889 362,852
--------------
3,008,381
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Media - 1.4% Cablevision Systems Corp. Class A 27,391 689,158
Central European Media Enterprises Ltd.
Class A (a) 7,821 511,493
Liberty Media Corp. - Entertainment Class A (a) 48,495 1,210,920
Liberty Media Holding Corp. - Capital (a) 32,325 432,509
Omnicom Group Inc. 10,353 399,212
Scholastic Corp. 23,558 604,969
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3,848,261
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2
NASDAQ Premium Income & Growth Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Industry Common Stocks Shares Held Value
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Metals & Mining - 0.7% Freeport-McMoRan Copper & Gold, Inc. Class B 15,143 $ 860,880
Nucor Corp. 15,766 622,757
Steel Dynamics, Inc. 31,305 535,002
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2,018,639
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Oil, Gas & Consumable Fuels - 0.2% Chevron Corp. 5,562 458,754
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Personal Products - 0.7% Chattem, Inc. (a) 11,344 886,874
USANA Health Sciences, Inc. (a) 25,524 1,046,229
--------------
1,933,103
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Pharmaceuticals - 2.9% Forest Laboratories, Inc. (a) 14,252 403,047
GlaxoSmithKline Plc (b) 11,260 489,360
Teva Pharmaceutical Industries Ltd. (b) 157,379 7,206,384
--------------
8,098,791
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Real Estate Investment Trusts (REITs) - 0.5% Boston Properties, Inc. 9,922 929,295
ProLogis 13,238 546,332
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1,475,627
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Road & Rail - 0.2% CSX Corp. 7,878 429,902
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Semiconductors & Semiconductor ASML Holding NV (b) 160,266 2,822,284
Equipment - 9.7% Cabot Microelectronics Corp. (a) 37,049 1,188,532
Diodes, Inc. (a) 56,346 1,039,584
Integrated Device Technology, Inc. (a) 105,454 820,432
Intel Corp. 575,120 10,771,998
International Rectifier Corp. (a) 21,906 416,652
Intersil Corp. Class A 63,300 1,049,514
MEMC Electronic Materials, Inc. (a) 19,421 548,837
Microsemi Corp. (a) 47,380 1,207,242
Nvidia Corp. (a) 159,823 1,711,704
Texas Instruments, Inc. 123,999 2,665,979
Varian Semiconductor Equipment
Associates, Inc. (a) 13,632 342,436
Xilinx, Inc. 72,236 1,693,934
Zoran Corp. (a) 73,121 596,667
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26,875,795
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Software - 18.6% Adobe Systems, Inc. (a) 243,861 9,625,194
Ansys, Inc. (a) 19,786 749,296
Factset Research Systems, Inc. 18,192 950,532
McAfee, Inc. (a) 30,899 1,049,330
Microsoft Corp. 697,476 18,615,634
Oracle Corp. (a) 593,256 12,049,029
Quality Systems, Inc. 20,574 869,457
SAP AG (b) 32,367 1,729,369
SPSS, Inc. (a) 28,280 830,301
Symantec Corp. (a) 213,881 4,187,790
Synopsys, Inc. (a) 31,572 629,861
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51,285,793
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Specialty Retail - 2.5% Charlotte Russe Holding, Inc. (a) 116,904 1,198,266
Jos. A. Bank Clothiers, Inc. (a) 62,482 2,099,395
Ross Stores, Inc. 14,785 544,236
3
NASDAQ Premium Income & Growth Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
Industry Common Stocks Shares Held Value
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Staples, Inc. 106,980 $ 2,407,050
Tiffany & Co. 16,780 596,026
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6,844,973
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Textiles, Apparel & Luxury Goods - 0.7% Nike, Inc. Class B 22,240 1,487,856
Phillips-Van Heusen Corp. 11,796 447,186
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1,935,042
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Trading Companies & Distributors - 0.2% Houston Wire & Cable Co. 28,393 487,508
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Total Common Stocks
(Cost - $289,312,942) - 100.5% 277,539,903
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Face
Short-Term Securities Amount
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Time Deposits - 0.5% State Street Bank & Trust Co., 1%, 10/01/08 $ 1,244,232 1,244,232
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Total Short-Term Securities
(Cost - $1,244,232) - 0.5% 1,244,232
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Total Investments Before Options Written
(Cost - $290,557,174*) - 101.0% 278,784,135
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Number of
Options Written Contracts
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Call Options Written NASDAQ Index 100, expiring December 2008
at USD 1,800 100 (256,000)
NASDAQ Index 100, expiring December 2008
at USD 1,825 100 (210,500)
NASDAQ Index 100, expiring December 2008
at USD 1,950 105 (60,375)
NASDAQ Index 100, expiring December 2008
at USD 1,975 100 (41,750)
NASDAQ Index 100, expiring November 2008
at USD 1,775 100 (230,500)
NASDAQ Index 100, expiring November 2008
at USD 1,800 100 (182,500)
NASDAQ Index 100, expiring October 2008
at USD 1,750 100 (93,000)
NASDAQ Index 100, expiring October 2008
at USD 1,775 100 (64,500)
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Total Options Written
(Premiums Received - $4,995,685) - (0.4%) (1,139,125)
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Total Investments, Net of Options Written
(Cost - $285,561,489) - 100.6% 277,645,010
Liabilities in Excess of Other Assets - (0.6%) (1,774,689)
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Net Assets - 100.0% $ 275,870,321
==============
* The cost and unrealized appreciation (depreciation) of investments
as of September 30, 2008, as computed for federal income tax
purposes, were as follows:
Aggregate cost $ 290,655,498
=============
Gross unrealized appreciation $ 27,277,682
Gross unrealized depreciation (39,149,045)
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Net unrealized depreciation $ (11,871,363)
=============
(a) Non-income producing security.
(b) Depositary receipts.
4
NASDAQ Premium Income & Growth Fund Inc.
Schedule of Investments as of September 30, 2008 (Unaudited)
--------------------------------------------------------------------------------
o For Fund 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. Industries are shown as a percent of net
assets.
o Effective January 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 - price quotations in active markets/exchanges for
identical securities
o Level 2 - other observable inputs (including, but not limited
to: quoted prices for 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)
o Level 3 - unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs
are not available (including the Fund's own assumption 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, 2008 in
determining the fair valuation of the Fund's investments:
---------------------------------------------
Valuation Investments in Other Financial
Inputs Securities Instruments*
---------------------------------------------
Level 1 $ 278,784,135 $ (1,139,125)
Level 2 -- --
Level 3 -- --
---------------------------------------------
Total $ 278,784,135 $ (1,139,125)
=================================
* Other financial instruments are options.
5
Item 2 - Controls and Procedures
2(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")) are effective as of a date within 90 days of the filing
of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
13a-15(b) under the Securities Exchange Act of 1934, as amended.
2(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)
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
Certifications - Attached hereto
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.
NASDAQ Premium Income & Growth Fund Inc.
By: /s/ Mitchell M. Cox
---------------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
NASDAQ Premium Income & Growth Fund Inc.
Date: November 24, 2008
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: /s/ Mitchell M. Cox
---------------------------
Mitchell M. Cox
Chief Executive Officer (principal executive officer) of
NASDAQ Premium Income & Growth Fund Inc.
Date: November 24, 2008
By: /s/ James E. Hillman
---------------------------
James E. Hillman
Chief Financial Officer (principal financial officer) of
NASDAQ Premium Income & Growth Fund Inc.
Date: November 24, 2008