NASDAQ Premium Income & Growth Fund Inc.

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: 4 World Financial Center, 6th Floor, New York, New York 10080.

Name and address of agent for service: Justin C. Ferri, 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: 12/31/2009

Date of reporting period: 09/30/2009

Item 1 – Schedule of Investments

NASDAQ Premium Income & Growth Fund Inc.        
Schedule of Investments as of September 30, 2009 (Unaudited)   (Percentages shown are

based on Net Assets)

Industry

    Common Stocks   Shares           Value

Aerospace & Defense - 2.5%

    Boeing Co.   7,506       $ 406,450
   Ceradyne, Inc. (a)   21,583         395,616
   General Dynamics Corp.   4,841         312,729
   L-3 Communications Holdings, Inc.   37,820         3,037,702
   Lockheed Martin Corp.   6,743         526,493
   Precision Castparts Corp.   11,432         1,164,578
   United Technologies Corp.   5,834         355,466
                     6,199,034

Airlines - 0.4%

    SkyWest, Inc.   55,634           922,412

Biotechnology - 11.0%

    Amgen, Inc. (a)   98,219         5,915,730
   Biogen Idec, Inc. (a)   65,468         3,307,443
   Celgene Corp. (a)   66,640         3,725,176
   Crucell NV (a)(b)   29,009         664,016
   Genzyme Corp. (a)   82,392         4,674,098
   Gilead Sciences, Inc. (a)   167,905         7,821,015
   OSI Pharmaceuticals, Inc. (a)   25,445         898,208
                     27,005,686

Capital Markets - 0.5%

    Affiliated Managers Group, Inc. (a)   7,276         473,013
   Northern Trust Corp.   14,318         832,735
                     1,305,748

Commercial Banks - 0.4%

    East-West Bancorp, Inc.   29,989         248,909
   SVB Financial Group (a)   18,740         810,880
                     1,059,789

Communications Equipment - 13.8%

    ADC Telecommunications, Inc. (a)   42,679         355,943
   Cisco Systems, Inc. (a)   494,400         11,638,176
   Comtech Telecommunications Corp. (a)   23,666         786,184
   JDS Uniphase Corp. (a)   75,832         539,166
   QUALCOMM, Inc.   317,319         14,273,009
   Research In Motion Ltd. (a)   95,929         6,480,004
                     34,072,482

Computers & Peripherals - 17.8%

    Apple, Inc. (a)   216,171         40,071,618
   Dell, Inc. (a)   122,928         1,875,881
   International Business Machines Corp.   9,113         1,090,006
   NCR Corp. (a)   17,402         240,496
   Teradata Corp. (a)   20,117         553,620
                     43,831,621

Diversified Consumer Services - 0.3%

    ITT Educational Services, Inc. (a)   5,590           617,192

Diversified Financial Services - 0.3%

    The NASDAQ Stock Market, Inc. (a)   40,824           859,345

Electronic Equipment, Instruments &

    Electro Scientific Industries, Inc. (a)   36,620         490,342

Components - 0.9%

    National Instruments Corp.   23,327         644,525
   Smart Modular Technologies WWH, Inc. (a)   71,146         338,655
   Trimble Navigation Ltd. (a)   27,904         667,185
                     2,140,707

Energy Equipment & Services - 0.2%

    Hercules Offshore, Inc. (a)   82,575           405,443

Food & Staples Retailing - 0.6%

    The Kroger Co.   15,762         325,328
   Walgreen Co.   27,865         1,044,102
                     1,369,430

Health Care Equipment & Supplies - 0.3%

    ArthroCare Corp. (a)   19,028         387,981
   Kinetic Concepts, Inc. (a)   10,784         398,792
                     786,773

Health Care Providers & Services - 1.6%

    Express Scripts, Inc. (a)   40,046         3,106,769
   Lincare Holdings, Inc. (a)   28,150         879,687
                     3,986,456

Health Care Technology - 0.4%

    Quality Systems, Inc.   17,733           1,091,821

 

1

NASDAQ Premium Income & Growth Fund Inc.  
Schedule of Investments as of September 30, 2009 (Unaudited)   (Percentages shown are

based on Net Assets)

Industry

    Common Stocks   Shares           Value

Hotels, Restaurants & Leisure - 0.3%

    Darden Restaurants, Inc.   12,764       $ 435,635
   McDonald’s Corp.   7,249         413,700
                     849,335

Household Durables - 0.1%

    Mohawk Industries, Inc. (a)   5,638           268,876

IT Services - 1.3%

    Affiliated Computer Services, Inc., Class A (a)   23,159         1,254,523
   CSG Systems International, Inc. (a)   35,364         566,178
   Computer Sciences Corp. (a)   25,014         1,318,488
                     3,139,189

Insurance - 1.1%

    Arch Capital Group Ltd. (a)   32,719         2,209,841
   CNA Financial Corp.   15,895         383,705
                     2,593,546

Internet & Catalog Retail - 1.9%

    Amazon.com, Inc. (a)   50,503           4,714,960

Internet Software & Services - 6.9%

    eBay, Inc. (a)   198,426         4,684,838
   Google, Inc., Class A (a)   23,758         11,780,404
   Sohu.com, Inc. (a)   8,531         586,762
                     17,052,004

Life Sciences Tools & Services - 1.4%

    Life Technologies Corp. (a)   74,906           3,486,874

Machinery - 1.0%

    Eaton Corp.   24,371         1,379,155
   Middleby Corp. (a)   16,835         926,093
   Terex Corp. (a)   10,253         212,545
                     2,517,793

Media - 1.4%

    Cablevision Systems Corp., Class A   23,687         562,566
   Central European Media Enterprises Ltd., Class A (a)   6,777         232,112
   Liberty Media Corp. - Entertainment, Class A (a)   41,839         1,301,611
   Liberty Media Holding Corp. - Capital (a)   27,929         584,275
   Omnicom Group Inc.   8,847         326,808
   Scholastic Corp.   20,352         495,368
                     3,502,740

Metals & Mining - 0.6%

    Freeport-McMoRan Copper & Gold, Inc., Class B   12,975         890,215
   Nucor Corp.   13,556         637,268
                     1,527,483

Oil, Gas & Consumable Fuels - 0.1%

    Chevron Corp.   4,866           342,712

Personal Products - 0.6%

    Chattem, Inc. (a)   9,759         648,095
   USANA Health Sciences, Inc. (a)   21,952         748,783
                     1,396,878

Pharmaceuticals - 3.1%

    Forest Laboratories, Inc. (a)   12,280         361,523
   GlaxoSmithKline Plc (b)   9,678         382,378
   Teva Pharmaceutical Industries Ltd. (b)   135,673         6,859,627
                     7,603,528

Real Estate Investment

    Boston Properties, Inc.   8,441         553,308

Trusts (REITs) - 0.3%

    ProLogis   11,397         135,852
                     689,160

Road & Rail - 0.1%

    CSX Corp.   6,832           285,988

Semiconductors & Semiconductor Equipment

    ASML Holding NV (b)   138,211         4,086,899

- 9.6%

    Cabot Microelectronics Corp. (a)   31,895         1,111,860
   Diodes, Inc. (a)   48,631         879,735
   Integrated Device Technology, Inc. (a)   90,965         614,923
   Intel Corp.   495,630         9,699,479
   International Rectifier Corp. (a)   18,894         368,244
   Intersil Corp., Class A   54,615         836,156
   MEMC Electronic Materials, Inc. (a)   16,786         279,151
   Microsemi Corp. (a)   40,888         645,621
   Texas Instruments, Inc.   106,940         2,533,409

 

2

NASDAQ Premium Income & Growth Fund Inc.      
Schedule of Investments as of September 30, 2009 (Unaudited)    (Percentages shown are

based on Net Assets)

Industry

    Common Stocks    Shares      Value
   Varian Semiconductor Equipment      
   Associates, Inc. (a)    11,714    $ 384,688
   Xilinx, Inc.    62,205      1,456,841
   Zoran Corp. (a)    62,924      724,884
                 23,621,890

Software - 17.2%

    Adobe Systems, Inc. (a)    209,990      6,938,070
   Ansys, Inc. (a)    17,096      640,587
   Factset Research Systems, Inc.    15,624      1,034,934
   McAfee, Inc. (a)    26,561      1,163,106
   Microsoft Corp.    601,028      15,560,615
   Oracle Corp.    511,182      10,653,033
   SAP AG (b)    27,934      1,365,135
   SPSS, Inc. (a)    25,222      1,259,839
   Symantec Corp. (a)    184,386      3,036,837
   Synopsys, Inc. (a)    27,205      609,936
                 42,262,092

Specialty Retail - 2.3%

    Jos. A. Bank Clothiers, Inc. (a)    53,929      2,414,401
   Ross Stores, Inc.    12,648      604,195
   Staples, Inc.    92,165      2,140,071
   Tiffany & Co.    14,496      558,531
                 5,717,198

Textiles, Apparel & Luxury Goods - 0.7%

    Nike, Inc., Class B    19,177      1,240,752
   Phillips-Van Heusen Corp.    10,183      435,731
                 1,676,483

Trading Companies & Distributors - 0.1%

    Houston Wire & Cable Co.    24,528      271,034
   Total Investments Before Options Written      
     (Cost - $236,887,527*) - 101.1%           249,173,702
      Number of   
     Options Written    Contracts        

Call Options Written

   

NASDAQ Index 100, expiring

October 2009 at USD 1,600

    100      (1,256,000)
  

NASDAQ Index 100, expiring

October 2009 at USD 1,750

    100      (183,000)
  

NASDAQ Index 100, expiring

October 2009 at USD 1,800

    100      (50,500)
  

NASDAQ Index 100, expiring

November 2009 at USD 1,775

    150      (499,500)
  

NASDAQ Index 100, expiring

December 2009 at USD 1,650

    100      (1,187,000)
  

NASDAQ Index 100, expiring

December 2009 at USD 1,675

    100      (1,020,500)
    

NASDAQ Index 100, expiring

December 2009 at USD 1,800

    20      (76,200)
   Total Options Written      
     (Premiums Received - $2,827,160) - (1.7%)           (4,272,700)
   Total Investments, Net of Options Written      
   (Net Cost - $234,060,367) - 99.4%         244,901,002
   Other Assets Less Liabilities - 0.6%         1,470,052
   Net Assets - 100.0%       $ 246,371,054
            

 

  * The cost and unrealized appreciation (depreciation) of investments as of September 30, 2009, as computed for federal income tax purposes, were as follows:

 

Aggregate cost

    $     237,053,126   
        

Gross unrealized appreciation

    $ 42,123,967   

Gross unrealized depreciation

      (30,003,391 ) 
        

Net unrealized appreciation

    $ 12,120,576   
        
  (a) Non-income producing security.
  (b) Depositary receipts.

 

3

NASDAQ Premium Income & Growth Fund Inc.

Schedule of Investments as of September 30, 2009 (Unaudited)

 

 

  •  

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 Note 1(a) of the Notes to Financial Statements.

The following table summarizes the inputs used as of September 30, 2009 in determining the fair valuation of the Fund’s investments:

 

Valuation

Inputs

     
 		 Investments in
Securities		   
     Assets      

Level 1 -

      

Long-Term Investments1

    $ 249,173,702   

Level 2

      -   

Level 3

      -   

Total

    $ 249,173,702   
         

1See above Schedule of Investments for values in each industry.

 

Valuation

Inputs

     

 

 Other Financial

Instruments†

   

  

  
     Assets        

Level 1

      (4,272,700 )   

Level 2

      -     

Level 3

      -     

Total

    $ (4,272,700 )   
          

†Other financial instruments are options.

 

4

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/ Justin C. Ferri
 

Justin C. Ferri

Chief Executive Officer (principal executive officer) of

NASDAQ Premium Income & Growth Fund Inc.

Date: November 13, 2009

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:   /s/ Justin C. Ferri
 

Justin C. Ferri

Chief Executive Officer (principal executive officer) of

NASDAQ Premium Income & Growth Fund Inc.

Date: November 13, 2009

 

By:   /s/ James E. Hillman
 

James E. Hillman

Chief Financial Officer (principal financial officer) of

NASDAQ Premium Income & Growth Fund Inc.

Date: November 13, 2009