Edgar Filing: NASDAQ Premium Income & Growth Fund Inc.

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
Commercial Services & Supplies - 0.4%	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
Diversified Consumer Services - 1.3%	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
Diversified Telecommunication Services - 0.5%	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
Health Care Providers & Services - 1.4%	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
Semiconductors & Semiconductor Equipment - 8.1%	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
Textiles, Apparel & Luxury Goods - 0.5%	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

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	)

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

Item 2. Controls and Procedures.

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)).

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