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.
ANNUAL REPORT | Nuveen Investments
October 31, 2007 | MUNICIPAL CLOSED-END FUNDS
[GRAPHIC OMITTED] NUVEEN INSURED
QUALITY MUNICIPAL
FUND, INC.
NQI
NUVEEN INSURED
MUNICIPAL OPPORTUNITY
FUND, INC.
NIO
NUVEEN PREMIER
INSURED MUNICIPAL
INCOME FUND, INC.
NIF
NUVEEN INSURED
PREMIUM INCOME
MUNICIPAL FUND 2
NPX
NUVEEN INSURED
DIVIDEND ADVANTAGE
MUNICIPAL FUND
NVG
NUVEEN INSURED
TAX-FREE ADVANTAGE
MUNICIPAL FUND
NEA
| [LOGO]
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) | NUVEEN
| INVESTMENTS
|
[GRAPHIC OMITTED]
LIFE IS COMPLEX.
NUVEEN
MAKES THINGS
e-SIMPLE.
|
It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready--no more
waiting for delivery by regular mail. Just click on the link within the e-mail
to see the report and save it on your computer if you wish.
FREE e-REPORTS RIGHT TO YOUR e-MAIL!
www.investordelivery.com | www.nuveen.com/accountaccess
If you receive your Nuveen Fund | If you receive your Nuveen Fund
dividends and statements from your OR dividends and statements directly
financial advisor or brokerage account. | from Nuveen.
--------------------------------------------------------------------------------
|
CHAIRMAN'S
LETTER TO SHAREHOLDERS
[GRAPHIC OMITTED] | Timothy R. Schwertfeger | Chairman of the Board
Once again, I am pleased to report that over the twelve-month period covered by
this report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price
Information, and the Performance Overview sections of this report.
I also wanted to take this opportunity to report some important news about
Nuveen Investments. The firm recently was acquired by a group led by Madison
Dearborn Partners, LLC. While this affects the corporate structure of Nuveen
Investments, it has no impact on the investment objectives, portfolio management
strategies or dividend policy of your Fund.
With the recent volatility in the stock market, many have begun to wonder which
way the market is headed, and whether they need to adjust their holdings of
investments. No one knows what the future will bring, which is why we think a
well-balanced portfolio that is structured and carefully monitored with the help
of an investment professional is an important component in achieving your
long-term financial goals. A well-diversified portfolio may actually help to
reduce your overall investment risk, and we believe that investments like your
Nuveen Investments Fund can be important building blocks in a portfolio crafted
to perform well through a variety of market conditions.
We also are pleased to be able to offer you a choice concerning how you receive
your shareholder reports and other Fund information. As an alternative to mailed
copies, you can sign up to receive future Fund reports and other Fund
information by e-mail and the internet. The inside front cover of this report
contains information on how you can sign up.
We are grateful that you have chosen us as a partner as you pursue your
financial goals and we look forward to continuing to earn your trust in the
months and years ahead. At Nuveen Investments, our mission continues to be to
assist you and your financial advisor by offering investment services and
products that can help you to secure your financial objectives.
Sincerely,
s Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 14, 2007
|
PORTFOLIO MANAGER'S COMMENTS
Nuveen Investments Municipal Closed-End Funds | NQI, NIO, NIF,
| NPX, NVG, NEA
PORTFOLIO MANAGER PAUL BRENNAN DISCUSSES U.S. ECONOMIC AND MUNICIPAL MARKET
CONDITIONS, KEY INVESTMENT STRATEGIES, AND THE ANNUAL PERFORMANCE OF THESE SIX
INSURED FUNDS. PAUL HAS 18 YEARS OF INDUSTRY EXPERIENCE, INCLUDING OVER 16 YEARS
AT NUVEEN. PAUL ASSUMED PORTFOLIO MANAGEMENT RESPONSIBILITY FOR NQI, NIO, NIF,
NPX, NVG AND NEA IN 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL
REPORTING PERIOD ENDED OCTOBER 31, 2007?
Between November 1, 2006, and October 31, 2007, the yield on the benchmark
10-year U.S. Treasury note dropped 14 basis points to end the reporting period
at 4.47%. In the municipal bond rate market, the yield on the Bond Buyer 25
Revenue Bond Index, a widely followed measure of longer-term municipal bond
market rates, fell to 4.67% at the end of October 2007, a decline of 11 basis
points from the end of October 2006. These numbers, however, do not give a true
indication of the events of the summer of 2007, when developments in the credit
markets led to increased volatility, tightening liquidity and a flight to
quality. This was particularly evident in August, when market concerns about
defaults on subprime mortgages resulted in a liquidity crisis across all fixed
income asset classes. (NONE OF THESE FUNDS HAD EXPOSURE TO THE COLLATERALIZED
DEBT PRODUCTS THAT WERE AT THE CENTER OF THIS LIQUIDITY CRISIS.)
After fourteen months of remaining on the sidelines, the Federal Reserve
responded to credit market volatility by cutting the fed funds rate by 50 basis
points--from 5.25% to 4.75%--in September 2007 and another 25 basis points--to
4.50%--in October 2007. A corresponding decline in short-term municipal bond
interest rates, coupled with a jump in longer-term municipal bond interest
rates, produced a steepening of the yield curve late in the reporting period.
For the annual period, bonds with longer maturities generally underperformed
shorter maturity bonds. In addition, as the markets repriced risk, higher
quality bonds generally outperformed lower quality credits.
The U.S. gross domestic product (GDP), a closely watched measure of economic
growth, expanded at below-trend levels of 2.1% in the fourth quarter of 2006 and
0.6% in the first quarter of 2007 before rebounding sharply to 3.8% in the
second quarter of 2007 (all GDP numbers are annualized). In the third quarter of
2007, increases in consumer spending, business investment, and exports helped
GDP
Discussions of specific investments are for illustrative purposes only and are
not intended as recommendations of individual investments. The views expressed
in this commentary represent those of the portfolio manager as of the date of
this report and are subject to change at any time, based on market conditions
and other factors. The Funds disclaim any obligation to advise shareholders of
such changes.
4
growth climb to 4.9%, overcoming a 20% decline in residential investment. Driven
largely by higher energy and food prices, the Consumer Price Index (CPI)
registered a 3.5% year-over-year gain as of October 2007. The labor market
continued to be tight, with a national unemployment rate of 4.7% in October
2007, up from 4.4% in October 2006. October 2007 marked the 50th consecutive
month of employment growth, the longest such stretch in U.S. history.
Over the twelve months ended October 2007, municipal bond issuance nationwide
totaled $487.9 billion, an increase of 27% from the previous twelve months. One
factor in this increased volume was an increase in advance refundings,(1) driven
by attractive borrowing rates for issuers during the earlier part of this
period. For the majority of the period, the strength and diversity of demand for
municipal bonds were as important as supply, as the surge in issuance was
absorbed by a broad-based universe of traditional and nontraditional buyers,
including retail investors, property and casualty insurance companies, hedge
funds and arbitragers and overseas investors.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THIS REPORTING
PERIOD?
With the substantial increase in municipal issuance nationwide during this
reporting period, our investment strategies continued to focus on finding
opportunities in undervalued sectors and individual securities with the
potential to add value to the Funds. Even though these are insured Funds, we
were able to take advantage of the credit situation and buy insured bonds with
weaker underlying credits that represented value prospects. The majority of our
purchases were bonds at the longer end of the yield curve. As the yield curve
steepened, bonds in this part of the curve generally offered some incremental
yield to help support the Funds' dividends. These purchases also helped to
offset the shortening of the Funds' portfolio duration(2) due to bond calls and
the natural tendency of bond durations to shorten as time passes.
NVG and NEA, which can invest up to 20% of their assets in uninsured
investment-grade quality securities, also purchased modest amounts of Ohio bonds
issued as part of the Buckeye Tobacco Settlement Financing Authority's $5.5
billion offering, the largest tobacco settlement financing deal ever issued.
To generate cash for purchases, we generally sold bonds that were nearing their
redemption dates, particularly some of the Funds' pre-refunded holdings. The
proceeds from these sales were reinvested out longer on the yield curve, which
helped to maintain the Funds' durations within our preferred strategic range and
improve the Funds' overall call protection profile.
(1) Advance refundings, also known as pre-refundings or refinancings, occur
when an issuer sells new bonds and uses the proceeds to fund principal and
interest payments of older existing bonds. This process often results in
lower borrowing costs for bond issuers.
(2) Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
5
In the municipal bond interest rate environment over the past twelve months, we
also continued to emphasize a disciplined approach to duration management and
yield curve positioning. As part of our duration management strategies, we used
inverse floating rate securities(3), a type of derivative financial instrument,
in all six of these Funds. These inverse floaters had the dual benefit of
bringing the Funds' durations closer to our preferred strategic target and
enhancing their income-generation capabilities. In addition, NPX used forward
interest rate swaps, another type of derivative financial instrument. The goal
of this strategy was to help us manage net asset value (NAV) volatility without
having a negative impact on income streams or common share dividends over the
short term.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
Total Returns on Net Asset Value*
FOR PERIODS ENDED 10/31/07
1-YEAR 5-YEAR 10-YEAR
NQI 1.38% 5.01% 5.80%
NIO 1.49% 5.15% 5.73%
NIF 1.40% 5.14% 5.50%
NPX 1.55% 4.97% 5.76%
NVG 2.25% 5.79% NA
NEA 3.35% NA NA
LEHMAN BROTHERS
INSURED MUNICIPAL
BOND INDEX(4) 2.95% 4.64% 5.49%
LIPPER INSURED
MUNICIPAL DEBT
FUNDS AVERAGE(5) 1.34% 5.11% 5.44%
|
For the twelve months ended October 31, 2007, the total return on NAV for NEA
exceeded the return on the Lehman Brothers Insured Municipal Bond Index, while
the remaining five Funds underperformed this index. All six of the Funds in this
report outperformed the average return for the Funds' Lipper Insured Municipal
Debt Fund's Average for this period.
* Annualized.
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.
(3) An inverse floating rate security is a financial instrument designed to
pay long-term tax-exempt interest at a rate that varies inversely with a
short-term tax-exempt interest rate index. For the Nuveen Funds, the index
typically used is the Securities Industry and Financial Markets (SIFM)
Municipal Swap Index (previously referred to as the Bond Market
Association Index or BMA). Inverse floaters, including those inverse
floating rate securities in which the Funds invested during the reporting
period, are further defined within the "Notes to Financial Statements" and
"Glossary of Terms Used in This Report" sections of this shareholder
report.
(4) The Lehman Brothers Insured Municipal Bond Index is an unleveraged,
unmanaged national index comprising a broad range of insured municipal
bonds. Results for the Lehman index do not reflect any expenses.
(5) The Lipper Insured Municipal Debt Funds Average category is calculated
using the returns of all closed-end funds in this category for each period
as follows: 1 year, 23 funds; 5 years, 21 funds; and 10 years, 16 funds.
Fund and Lipper returns assume reinvestment of dividends.
6
One of the key factors in the performance of these Funds relative to that of the
unleveraged Lehman Brothers Insured Municipal Bond Index over this period was
the use of financial leverage. The returns of all of these Funds were negatively
impacted by their use of leverage. Although leveraging provides opportunities
for additional income and total return for common shareholders, it can also
expose shareholders to additional risk when market conditions are unfavorable.
With the increases in yields on longer municipal bonds, the impact of valuation
changes in these bonds was magnified by the use of leverage. However, we firmly
believe that the use of this strategy should work to the benefit of the Funds
over the long term.
Other factors that influenced the Funds' returns included yield curve
positioning and duration management, the use of derivatives, credit quality and
sector allocations.
During this twelve-month period, bonds in the Lehman Brothers Municipal Bond
Index with maturities between one and eight years, especially those maturing in
approximately three years, benefited the most from changes in the interest rate
environment. As a result, these bonds generally outperformed credits with longer
maturities. Bonds having the longest maturities (22 years and longer) posted the
worst returns for the period. In general, the varying levels of exposure to the
longer part of the yield curve among these Funds was a major factor in their
performance relative to one another. NQI, NIO, NIF and NPX tended to be more
heavily weighted in the longer part of the curve than NVG or NEA. This heavier
weighting was the result of extending the maturities of these Funds as part of
efforts to support their earnings.
Overall, NVG and NEA were better positioned in terms of duration, with less
exposure to the underperforming long part of the curve compared with the other
four Funds in this report. This included fewer holdings of zero coupon bonds,
which performed very poorly. Of these two Funds, NEA had relatively less
exposure to longer-term bonds than NVG, which resulted in better performance in
an environment where the slope of the municipal yield curve steepened.
Because they effectively increased exposure to longer maturity bonds during a
period when shorter maturities were in favor in the market, the inverse floaters
in place in these six Funds had a negative overall impact on return performance
for the period. At the same time, however, the inverse floaters benefited these
Funds by helping to support their income streams. We believe that, over time,
these derivative financial instruments will work to the advantage of the Funds.
7
As the markets repriced risk and interest rates on longer municipal bonds rose,
higher quality bonds generally outperformed lower quality credits for the first
time in several years. Insured bonds as a sector also slightly outperformed the
municipal market as a whole. Both of these factors were generally positive for
the performance of these insured Funds.
Sectors of the market that performed well included transportation, special
tax-backed issues and water and sewer. Pre-refunded bonds, especially those that
were advance refunded before longer municipal interest rates began to rise in
mid-2007, also performed well.
8
DIVIDEND AND SHARE PRICE
INFORMATION
As previously noted, all of the Funds in this report use leverage to potentially
enhance opportunities for additional income for common shareholders. Although
the Funds' use of this strategy continued to provide incremental income, the
extent of this benefit was reduced due to short-term interest rates that
remained relatively high during most of this period. This, in turn, kept the
Funds' borrowing costs high. The Funds' income streams were also impacted as the
proceeds from older, higher-yielding bonds that matured or were called were
reinvested into bonds currently available in the market, which generally offered
lower yields during the majority of this period. These factors resulted in one
monthly dividend reduction in NIO and NPX and two in NIF and NVG over the
twelve-month period ended October 31, 2007. The dividends of NQI and NEA
remained stable throughout this reporting period.
Due to normal portfolio activity, common shareholders of NIO received a
long-term capital gains distribution of $0.0190 per share at the end of December
2006.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2007, all of
the Funds in this report except NIO had negative UNII balances for financial
statement purposes and positive UNII balances for tax purposes. NIO had a
positive UNII balance for both financial statement and tax purposes.
As of October 31, 2007, the Funds' share prices were trading at discounts to
their NAVs as shown in the accompanying chart:
10/31/07 Twelve Month
Discount Average Discount
NQI -8.53% -4.72%
NIO -9.84% -4.79%
NIF -11.07% -4.95%
NPX -11.29% -7.09%
NVG -9.15% -3.54%
NEA -2.79% -1.24%
9
|
NQI | Nuveen Insured
Performance | Quality Municipal
OVERVIEW | Fund, Inc.
|
as of October 31, 2007
FUND SNAPSHOT
Common Share Price $13.61
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.88
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.53%
--------------------------------------------------------------------------------
Market Yield 5.33%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.40%
--------------------------------------------------------------------------------
Net Assets Applicable to
--------------------------------------------------------------------------------
Common Shares ($000) $569,958
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 17.53
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.69
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -3.48% 1.38%
--------------------------------------------------------------------------------
5-Year 3.61% 5.01%
--------------------------------------------------------------------------------
10-Year 4.98% 5.80%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.2%
--------------------------------------------------------------------------------
Texas 11.7%
--------------------------------------------------------------------------------
New York 9.6%
--------------------------------------------------------------------------------
Illinois 9.5%
--------------------------------------------------------------------------------
Washington 7.9%
--------------------------------------------------------------------------------
Florida 4.7%
--------------------------------------------------------------------------------
Nevada 4.4%
--------------------------------------------------------------------------------
Kentucky 3.6%
--------------------------------------------------------------------------------
Ohio 2.8%
--------------------------------------------------------------------------------
Louisiana 2.5%
--------------------------------------------------------------------------------
Pennsylvania 2.4%
--------------------------------------------------------------------------------
Arizona 2.1%
--------------------------------------------------------------------------------
Hawaii 2.0%
--------------------------------------------------------------------------------
Massachusetts 1.6%
--------------------------------------------------------------------------------
West Virginia 1.5%
--------------------------------------------------------------------------------
Other 14.5%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 20.4%
--------------------------------------------------------------------------------
Transportation 19.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.4%
--------------------------------------------------------------------------------
Tax Obligation/General 13.1%
--------------------------------------------------------------------------------
Health Care 9.7%
--------------------------------------------------------------------------------
Utilities 7.8%
--------------------------------------------------------------------------------
Other 11.1%
--------------------------------------------------------------------------------
|
[PIE CHART]
Credit Quality (as a % of total investments)
Insured 77%
U.S. Guaranteed 20%
GNMA Guaranteed 3%
|
[BAR CHART]
2006-2007 Monthly Tax-Free Dividends Per Share
0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605 0.0605
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
14.87
14.79
14.80
14.78
14.67
14.77
14.68
14.62
14.40
14.46
14.54
14.55
14.61
14.53
14.59
14.71
14.67
14.63
14.76
14.80
14.78
14.88
14.85
14.84
14.79
14.71
14.72
14.71
14.63
14.62
14.59
14.46
14.33
14.09
14.03
14.11
13.97
13.80
13.73
13.88
13.95
13.80
13.47
13.66
13.70
14.27
14.03
13.92
13.84
13.94
13.72
13.80
13.60
13.61
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
10
NIO | Nuveen Insured
PERFORMANCE | Municipal Opportunity
OVERVIEW | Fund, Inc.
as of October 31, 2007
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 70%
U.S. Guaranteed 29%
GNMA Guaranteed 1%
|
2006-2007 Monthly Tax-Free Dividends Per Share(2)
[BAR CHART]
0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.0615 0.058
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
14.80
14.85
14.79
14.63
14.74
14.94
14.69
14.54
14.55
14.63
14.83
14.80
14.75
14.69
14.83
14.80
14.77
14.72
14.84
14.90
14.85
14.78
14.82
14.84
14.79
14.77
14.87
14.95
14.94
14.99
14.82
14.80
14.58
14.15
14.22
14.25
14.12
14.10
14.12
14.18
14.11
13.71
14.05
14.01
14.12
14.37
14.20
14.02
14.12
13.91
13.62
13.64
13.60
13.56
FUND SNAPSHOT
Common Share Price $13.56
--------------------------------------------------------------------------------
Common Share Net Asset Value $15.04
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.84%
--------------------------------------------------------------------------------
Market Yield 5.13%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.13%
--------------------------------------------------------------------------------
Net Assets Applicable to
--------------------------------------------------------------------------------
Common Shares ($000) $1,220,297
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.48
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.36
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -3.18% 1.49%
--------------------------------------------------------------------------------
5-Year 4.01% 5.15%
--------------------------------------------------------------------------------
10-Year 4.86% 5.73%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 20.4%
--------------------------------------------------------------------------------
Texas 9.9%
--------------------------------------------------------------------------------
Alabama 6.9%
--------------------------------------------------------------------------------
Nevada 5.3%
--------------------------------------------------------------------------------
New York 4.9%
--------------------------------------------------------------------------------
Colorado 4.2%
--------------------------------------------------------------------------------
Illinois 4.2%
--------------------------------------------------------------------------------
Michigan 3.9%
--------------------------------------------------------------------------------
Louisiana 3.6%
--------------------------------------------------------------------------------
Florida 3.5%
--------------------------------------------------------------------------------
Massachusetts 3.0%
--------------------------------------------------------------------------------
Ohio 2.9%
--------------------------------------------------------------------------------
South Carolina 2.8%
--------------------------------------------------------------------------------
Wisconsin 2.6%
--------------------------------------------------------------------------------
Indiana 2.2%
--------------------------------------------------------------------------------
Pennsylvania 1.9%
--------------------------------------------------------------------------------
Arizona 1.6%
--------------------------------------------------------------------------------
New Jersey 1.5%
--------------------------------------------------------------------------------
Washington 1.4%
--------------------------------------------------------------------------------
Other 13.3%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 29.3%
--------------------------------------------------------------------------------
Tax Obligation/Limited 18.2%
--------------------------------------------------------------------------------
Transportation 14.2%
--------------------------------------------------------------------------------
Tax Obligation/General 12.3%
--------------------------------------------------------------------------------
Utilities 7.7%
--------------------------------------------------------------------------------
Water and Sewer 6.5%
--------------------------------------------------------------------------------
Health Care 5.9%
--------------------------------------------------------------------------------
Other 5.9%
--------------------------------------------------------------------------------
|
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
(2) The Fund paid shareholders a capital gains distribution in December 2006
of $0.019 per share.
11
NIF | Nuveen Premier
PERFORMANCE | Insured Municipal
OVERVIEW | Income Fund, Inc.
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.25
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.90
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.07%
--------------------------------------------------------------------------------
Market Yield 4.80%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.67%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $289,400
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 14.28
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.65
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -4.66% 1.40%
--------------------------------------------------------------------------------
5-Year 3.20% 5.14%
--------------------------------------------------------------------------------
10-Year 4.51% 5.50%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 21.0%
--------------------------------------------------------------------------------
Washington 11.0%
--------------------------------------------------------------------------------
Illinois 11.0%
--------------------------------------------------------------------------------
Texas 6.8%
--------------------------------------------------------------------------------
Colorado 6.1%
--------------------------------------------------------------------------------
Nevada 4.4%
--------------------------------------------------------------------------------
New York 4.2%
--------------------------------------------------------------------------------
Oregon 2.7%
--------------------------------------------------------------------------------
Hawaii 2.4%
--------------------------------------------------------------------------------
Indiana 2.4%
--------------------------------------------------------------------------------
Florida 2.3%
--------------------------------------------------------------------------------
Michigan 2.3%
--------------------------------------------------------------------------------
Tennessee 2.3%
--------------------------------------------------------------------------------
Georgia 2.2%
--------------------------------------------------------------------------------
Pennsylvania 2.1%
--------------------------------------------------------------------------------
Arizona 1.9%
--------------------------------------------------------------------------------
Other 14.9%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 23.3%
--------------------------------------------------------------------------------
U.S. Guaranteed 22.4%
--------------------------------------------------------------------------------
Transportation 16.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.4%
--------------------------------------------------------------------------------
Utilities 6.2%
--------------------------------------------------------------------------------
Health Care 6.1%
--------------------------------------------------------------------------------
Other 9.1%
--------------------------------------------------------------------------------
|
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 77%
U.S. Guaranteed 22%
GNMA Guaranteed 1%
|
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.061 0.061 0.061 0.061 0.061 0.061 0.061 0.057 0.057 0.057 0.057 0.053
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
14.57
14.56
14.84
14.61
14.69
14.70
14.83
14.53
14.40
14.42
14.49
14.50
14.60
14.58
14.66
14.62
14.65
14.66
14.85
14.85
14.83
14.86
14.77
14.87
14.75
14.73
14.76
14.78
14.83
14.92
14.84
14.83
14.24
13.87
13.78
13.81
13.84
13.72
13.85
13.80
13.79
13.72
13.44
13.61
13.74
14.04
13.82
13.75
13.78
13.67
13.45
13.31
13.24
13.25
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
12
NPX | Nuveen Insured
PERFORMANCE | Premium Income
OVERVIEW | Municipal Fund 2
as of October 31, 2007
|
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 79%
U.S. Guaranteed 20%
GNMA Guaranteed 1%
|
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.054 0.054 0.054 0.054 0.054 0.054 0.054 0.054 0.054 0.054 0.051 0.051
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
13.02
13.03
13.14
13.00
13.06
13.24
13.16
12.87
12.93
12.95
13.00
13.02
13.18
13.11
13.12
13.13
13.12
13.14
13.41
13.42
13.41
13.25
13.28
13.33
13.19
13.16
13.14
13.26
13.24
13.28
13.14
13.02
12.88
12.62
12.60
12.78
12.67
12.54
12.42
12.55
12.70
12.41
12.35
12.46
12.59
12.67
12.54
12.49
12.45
12.34
12.28
12.45
12.21
12.18
FUND SNAPSHOT
Common Share Price $12.18
--------------------------------------------------------------------------------
Common Share Net Asset Value $13.73
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -11.29%
--------------------------------------------------------------------------------
Market Yield 5.07%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 7.04%
--------------------------------------------------------------------------------
Net Assets Applicable to
--------------------------------------------------------------------------------
Common Shares ($000) $513,021
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 15.12
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.56
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/22/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -1.77% 1.55%
--------------------------------------------------------------------------------
5-Year 3.33% 4.97%
--------------------------------------------------------------------------------
10-Year 5.75% 5.76%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 16.7%
--------------------------------------------------------------------------------
Texas 9.9%
--------------------------------------------------------------------------------
New York 8.2%
--------------------------------------------------------------------------------
Pennsylvania 7.4%
--------------------------------------------------------------------------------
Colorado 5.4%
--------------------------------------------------------------------------------
Hawaii 4.7%
--------------------------------------------------------------------------------
Washington 4.2%
--------------------------------------------------------------------------------
Wisconsin 3.7%
--------------------------------------------------------------------------------
Louisiana 3.0%
--------------------------------------------------------------------------------
New Jersey 2.9%
--------------------------------------------------------------------------------
Illinois 2.6%
--------------------------------------------------------------------------------
Alabama 2.5%
--------------------------------------------------------------------------------
Georgia 2.3%
--------------------------------------------------------------------------------
North Dakota 2.3%
--------------------------------------------------------------------------------
Nebraska 2.2%
--------------------------------------------------------------------------------
Oregon 2.1%
--------------------------------------------------------------------------------
Nevada 1.9%
--------------------------------------------------------------------------------
Virginia 1.8%
--------------------------------------------------------------------------------
Massachusetts 1.8%
--------------------------------------------------------------------------------
Other 14.4%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 21.4%
--------------------------------------------------------------------------------
Utilities 19.1%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.1%
--------------------------------------------------------------------------------
Transportation 11.2%
--------------------------------------------------------------------------------
Tax Obligation/General 10.4%
--------------------------------------------------------------------------------
Water and Sewer 8.0%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.8%
--------------------------------------------------------------------------------
Health Care 5.3%
--------------------------------------------------------------------------------
Other 3.7%
--------------------------------------------------------------------------------
|
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
13
NVG | Nuveen Insured
PERFORMANCE | Dividend Advantage
OVERVIEW | Municipal Fund
as of October 31, 2007
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $13.71
--------------------------------------------------------------------------------
Common Share Net Asset Value $15.09
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -9.15%
--------------------------------------------------------------------------------
Market Yield 5.03%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.99%
--------------------------------------------------------------------------------
Net Assets Applicable to
--------------------------------------------------------------------------------
Common Shares ($000) $449,982
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.66
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.64
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year -3.12% 2.25%
--------------------------------------------------------------------------------
5-Year 4.62% 5.79%
--------------------------------------------------------------------------------
Since Inception 4.63% 7.01%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Texas 17.5%
--------------------------------------------------------------------------------
Indiana 10.7%
--------------------------------------------------------------------------------
California 9.4%
--------------------------------------------------------------------------------
Illinois 8.5%
--------------------------------------------------------------------------------
Washington 8.2%
--------------------------------------------------------------------------------
Florida 7.6%
--------------------------------------------------------------------------------
Tennessee 6.2%
--------------------------------------------------------------------------------
Colorado 3.8%
--------------------------------------------------------------------------------
New York 3.2%
--------------------------------------------------------------------------------
Alabama 2.8%
--------------------------------------------------------------------------------
Louisiana 2.4%
--------------------------------------------------------------------------------
Alaska 2.3%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Wisconsin 1.8%
--------------------------------------------------------------------------------
Other 13.4%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 29.6%
--------------------------------------------------------------------------------
Transportation 15.0%
--------------------------------------------------------------------------------
Tax Obligation/General 13.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 10.7%
--------------------------------------------------------------------------------
Utilities 9.2%
--------------------------------------------------------------------------------
Health Care 7.7%
--------------------------------------------------------------------------------
Education and Civic Organizations 6.1%
--------------------------------------------------------------------------------
Water and Sewer 5.2%
--------------------------------------------------------------------------------
Other 3.0%
--------------------------------------------------------------------------------
|
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 63%
U.S. Guaranteed 29%
AAA (Uninsured) 2%
AA (Uninsured) 5%
BBB (Uninsured) 1%
|
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.064 0.064 0.064 0.064 0.064 0.064 0.064 0.060 0.060 0.060 0.060 0.057
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
14.86
14.86
15.08
15.14
14.80
15.05
15.41
15.29
15.01
15.12
15.06
14.99
15.20
15.10
15.17
15.13
15.01
14.97
15.06
15.30
15.28
15.43
15.35
15.35
15.07
15.23
15.30
15.42
15.45
15.30
15.08
15.04
14.45
14.06
14.01
14.12
14.04
13.85
13.72
13.79
13.97
13.72
13.63
13.90
13.94
14.26
14.12
14.01
14.00
13.72
13.77
13.95
14.00
13.71
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
14
NEA | Nuveen Insured
PERFORMANCE | Tax-Free Advantage
OVERVIEW | Municipal Fund
as of October 31, 2007
|
Credit Quality (as a % of total investments)
[PIE CHART]
Insured 62%
U.S. Guaranteed 28%
AAA (Uninsured) 4%
AA (Uninsured) 2%
A (Uninsured) 2%
BBB (Uninsured) 2%
|
2006-2007 Monthly Tax-Free Dividends Per Share
[BAR CHART]
0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059 0.059
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
|
Share Price Performance -- Weekly Closing Price
[LINE CHART]
14.37
14.48
14.85
14.45
14.65
14.99
14.89
14.28
14.51
14.36
14.34
14.44
14.69
14.54
14.78
14.79
14.68
14.59
14.72
14.66
14.75
14.85
14.95
15.15
14.77
14.85
14.65
14.66
14.69
14.71
14.76
15.00
14.57
14.67
14.36
14.48
14.70
14.51
14.61
14.86
14.94
14.85
13.85
13.80
14.33
14.47
14.41
14.18
14.20
14.33
14.38
14.30
14.03
14.30
FUND SNAPSHOT
Common Share Price $14.30
--------------------------------------------------------------------------------
Common Share Net Asset Value $14.71
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.79%
--------------------------------------------------------------------------------
Market Yield 4.95%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(1) 6.88%
--------------------------------------------------------------------------------
Net Assets Applicable to
--------------------------------------------------------------------------------
Common Shares ($000) $272,391
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 16.19
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 7.98
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 4.59% 3.35%
--------------------------------------------------------------------------------
Since Inception 4.70% 6.16%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 17.8%
--------------------------------------------------------------------------------
Texas 8.6%
--------------------------------------------------------------------------------
Michigan 7.9%
--------------------------------------------------------------------------------
New York 7.2%
--------------------------------------------------------------------------------
Indiana 6.3%
--------------------------------------------------------------------------------
Washington 6.0%
--------------------------------------------------------------------------------
Alabama 5.7%
--------------------------------------------------------------------------------
Pennsylvania 4.9%
--------------------------------------------------------------------------------
South Carolina 4.8%
--------------------------------------------------------------------------------
Wisconsin 4.4%
--------------------------------------------------------------------------------
Arizona 3.8%
--------------------------------------------------------------------------------
Colorado 2.7%
--------------------------------------------------------------------------------
Massachusetts 2.6%
--------------------------------------------------------------------------------
Illinois 2.5%
--------------------------------------------------------------------------------
Other 14.8%
--------------------------------------------------------------------------------
INDUSTRIES
(as a % of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 27.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 21.9%
--------------------------------------------------------------------------------
Tax Obligation/General 15.8%
--------------------------------------------------------------------------------
Health Care 10.8%
--------------------------------------------------------------------------------
Utilities 9.8%
--------------------------------------------------------------------------------
Transportation 6.4%
--------------------------------------------------------------------------------
Other 7.7%
--------------------------------------------------------------------------------
|
(1) Taxable-Equivalent Yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend
income, the Taxable-Equivalent Yield is lower.
15
NQI | Shareholder MEETING REPORT
NIO | The annual meeting of shareholders was held on July 31, 2007, at The
NIF | Northern Trust Company, 50 South La Salle Street, Chicago, IL 60675;
at this meeting shareholders were asked to vote on the election of
Board Members. Additionally a special meeting of shareholders was
held in the offices of Nuveen Investments on October 12, 2007; at
this meeting shareholders were asked to vote on a New Investment
Management Agreement and to ratify the selection of Ernst and Young
LLP as the Funds' independent registered public accounting firm; the
meeting for Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
was subsequently adjourned to October 22, 2007.
|
NQI NIO NIF
---------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
---------------------------------------------------------------------------------------------------------------------
For 19,045,201 -- 40,126,446 -- 9,568,777 --
Against 753,041 -- 1,950,827 -- 464,869 --
Abstain 642,493 -- 1,600,085 -- 399,171 --
Broker Non-Votes 6,405,665 -- 12,501,833 -- 3,251,137 --
---------------------------------------------------------------------------------------------------------------------
Total 26,846,400 -- 56,179,191 -- 13,683,954 --
=====================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For 32,509,030 -- 72,087,805 -- 17,251,862 --
Withhold 551,588 -- 1,203,888 -- 326,859 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
Jack B. Evans
For 32,491,840 -- 72,102,370 -- 17,244,447 --
Withhold 568,778 -- 1,189,323 -- 334,274 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
William C. Hunter
For 32,499,965 -- 72,102,418 -- 17,246,447 --
Withhold 560,653 -- 1,189,275 -- 332,274 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
David J. Kundert
For 32,509,384 -- 72,088,848 -- 17,253,747 --
Withhold 551,234 -- 1,202,845 -- 324,974 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
William J. Schneider
For -- 11,602 -- 24,837 -- 5,836
Withhold -- 16 -- 72 -- 2
---------------------------------------------------------------------------------------------------------------------
Total -- 11,618 -- 24,909 -- 5,838
=====================================================================================================================
Timothy R. Schwertfeger
For -- 11,602 -- 24,836 -- 5,836
Withhold -- 16 -- 73 -- 2
---------------------------------------------------------------------------------------------------------------------
Total -- 11,618 -- 24,909 -- 5,838
=====================================================================================================================
Judith M. Stockdale
For 32,517,284 -- 72,094,078 -- 17,246,712 --
Withhold 543,334 -- 1,197,615 -- 332,009 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
Carole E. Stone
For 32,500,621 -- 72,074,510 -- 17,249,253 --
Withhold 559,997 -- 1,217,183 -- 329,468 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
Eugene S. Sunshine(1)
For 32,493,105 -- 72,088,736 -- 17,232,400 --
Withhold 567,513 -- 1,202,957 -- 346,321 --
---------------------------------------------------------------------------------------------------------------------
Total 33,060,618 -- 73,291,693 -- 17,578,721 --
=====================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 26,030,985 -- 54,273,425 -- 13,236,719 --
Against 405,014 -- 864,749 -- 169,085 --
Abstain 410,401 -- 1,041,017 -- 278,150 --
---------------------------------------------------------------------------------------------------------------------
Total 26,846,400 -- 56,179,191 -- 13,683,954 --
=====================================================================================================================
|
16
NPX
NVG
NEA
NPX NVG NEA
---------------------------------------------------------------------------------------------------------------------
TO APPROVE A NEW INVESTMENT MANAGEMENT AGREEMENT:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
---------------------------------------------------------------------------------------------------------------------
For 18,676,358 -- 15,159,352 -- 9,511,149 --
Against 809,457 -- 783,054 -- 493,423 --
Abstain 727,055 -- 593,948 -- 534,118 --
Broker Non-Votes 6,790,620 -- 5,318,655 -- 3,494,613 --
---------------------------------------------------------------------------------------------------------------------
Total 27,003,490 -- 21,855,009 -- 14,033,303 --
=====================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS FOLLOWS:
Robert P. Bremner
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
=====================================================================================================================
Jack B. Evans
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
=====================================================================================================================
William C. Hunter
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
=====================================================================================================================
David J. Kundert
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
=====================================================================================================================
William J. Schneider
For -- 9,960 -- 8,590 -- 5,295
Withhold -- 43 -- 109 -- 3
---------------------------------------------------------------------------------------------------------------------
Total -- 10,003 -- 8,699 -- 5,298
=====================================================================================================================
Timothy R. Schwertfeger
For -- 9,959 -- 8,590 -- 5,295
Withhold -- 44 -- 109 -- 3
---------------------------------------------------------------------------------------------------------------------
Total -- 10,003 -- 8,699 -- 5,298
=====================================================================================================================
Judith M. Stockdale
For 33,759,050 -- 27,600,450 -- 17,634,465 --
Withhold 433,682 -- 331,055 -- 227,829 --
---------------------------------------------------------------------------------------------------------------------
Total 34,192,732 -- 27,931,505 -- 17,862,294 --
=====================================================================================================================
Carole E. Stone
For 33,740,649 -- 27,609,445 -- 17,620,986 --
Withhold 452,083 -- 322,060 -- 241,308 --
---------------------------------------------------------------------------------------------------------------------
Total 34,192,732 -- 27,931,505 -- 17,862,294 --
=====================================================================================================================
Eugene S. Sunshine (1)
For -- -- -- -- -- --
Withhold -- -- -- -- -- --
---------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- -- --
=====================================================================================================================
TO RATIFY THE SELECTION OF ERNST & YOUNG LLP AS THE INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM FOR THE CURRENT FISCAL YEAR:
For 26,289,311 -- 21,174,849 -- 13,583,871 --
Against 307,440 -- 292,590 -- 126,882 --
Abstain 406,739 -- 387,570 -- 322,550 --
---------------------------------------------------------------------------------------------------------------------
Total 27,003,490 -- 21,855,009 -- 14,033,303 --
=====================================================================================================================
|
(1) Mr. Sunshine resigned from the Funds' Board of Directors/Trustees on July
31, 2007.
17
REPORT OF
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc.,
Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured
Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2,
Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free
Advantage Municipal Fund (the "Funds") as of October 31, 2007, and the related
statements of operations and cash flows (Nuveen Insured Premium Income Municipal
Fund 2 only) for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the periods indicated therein. These financial statements and
financial highlights are the responsibility of the Funds' management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2007, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal
Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc.,
Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend
Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund at
October 31, 2007, the results of their operations and cash flows (Nuveen Insured
Premium Income Municipal Fund 2 only) for the year then ended, changes in their
net assets for each of the two years in the period then ended, and the financial
highlights for each of periods indicated therein in conformity with U.S.
generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 27, 2007
|
18
| Nuveen Insured Quality Municipal Fund, Inc.
NQI | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, Water 1/13 at 100.00 AAA $ 1,224,461
and Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20
(Pre-refunded 1/01/13) - MBIA Insured
7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA 7,779,900
Series 2005A, 5.000%, 6/01/24 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,635 Total Alabama 9,004,361
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.5% (2.1% OF TOTAL INVESTMENTS)
3,670 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 Aaa 3,039,971
Longs, Series 11032- 11034, 5.258%, 7/01/31 - FSA Insured (IF)
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/12 at 100.00 Aaa 9,386,024
Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
8,755 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AAA 7,435,972
Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
21,625 Total Arizona 19,861,967
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,250 University of Arkansas, Fayetteville, Revenue Bonds, 11/14 at 100.00 Aaa 4,434,705
Medical Sciences Campus, Series 2004B, 5.000%, 11/01/24 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 31.3% (19.2% OF TOTAL INVESTMENTS)
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
4,045 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 4,235,034
4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,156,880
1,275 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,367,438
Occidental College, Series 2005A,5.250%, 10/01/23 - MBIA
Insured
7,115 California Infrastructure Economic Development Bank, First 1/28 at 100.00 AAA 7,756,488
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) -
AMBAC Insured (UB)
13,175 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 13,630,723
Refunding Bonds, Southern California Edison Company, Series
1999A, 5.450%, 9/01/29 - MBIA Insured
13,445 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 13,950,801
5.000%, 4/01/27 - AMBAC Insured
7,055 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 Aaa 7,503,698
5.000%, 4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 5,136
5.000%, 4/01/31 - AMBAC Insured
3,745 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 Aaa 4,066,358
5.000%, 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
8,000 California, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.00 AAA 8,164,800
10/01/32 - MBIA Insured
2,340 Cerritos Public Financing Authority, California, Tax 11/17 at 102.00 AAA 2,473,169
Allocation Revenue Bonds, Los Cerritos Redevelopment
Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured
5,000 Clovis Unified School District, Fresno County, California, No Opt. Call AAA 2,207,300
General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 -
FGIC Insured
|
19
| Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
Foothill/Eastern Transportation Corridor Agency,
California, Toll Road Revenue Refunding Bonds, Series 1999:
$ 22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA $ 9,350,988
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,835,280
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 9,196,500
5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,142,500
Financing Project, Series 2002A, 5.125%, 3/01/32 - AMBAC
Insured
5,500 Golden State Tobacco Securitization Corporation, 6/15 at 100.00 AAA 5,619,845
California, Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
3,795 Kern Community College District, California, General 11/15 at 100.00 AAA 4,027,823
Obligation Bonds, Series 2005, 5.000%, 11/01/20 - FSA
Insured
5,795 Kern Community College District, California, General No Opt. Call AAA 2,528,532
Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA
Insured
5,388 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,693,015
Collateralized Assisted Living Housing Revenue Bonds, CDC
Assisted Living Project, Series 2000A, 7.500%, 1/20/42
5,425 Ontario Redevelopment Financing Authority, San Bernardino 12/07 at 100.00 AAA 5,884,335
County, California, Revenue Bonds, Redevelopment Project 1,
Series 1993, 5.850%, 8/01/22 - MBIA Insured (ETM)
3,615 Pasadena Unified School District, Los Angeles County, 5/13 at 100.00 AAA 3,890,716
California, General Obligation Bonds, Series 2003D, 5.000%,
5/01/24 (Pre-refunded 5/01/13) - MBIA Insured
2,590 Riverside County Public Financing Authority, California, 10/14 at 100.00 AAA 2,679,381
Tax Allocation Bonds, Multiple Projects, Series 2004,
5.000%, 10/01/25 - XLCA Insured
2,000 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,102,940
Lien Tax Allocation Bonds, Centre City Project, Series
2004A, 5.000%, 9/01/21 - XLCA Insured
San Francisco Airports Commission, California, Revenue
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A:
7,200 5.125%, 5/01/21 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 7,411,176
12,690 5.250%, 5/01/31 - MBIA Insured (Alternative Minimum Tax) 5/11 at 100.00 AAA 12,867,914
San Francisco Bay Area Rapid Transit District, California,
Sales Tax Revenue Bonds, Series 2005A:
2,000 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 2,105,180
3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,837,421
3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,040,640
8,965 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AAA 8,318,086
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - MBIA Insured (UB)
3,500 Saugus Union School District, Los Angeles County, No Opt. Call AAA 1,712,585
California, General Obligation Bonds, Series 2006, 0.000%,
8/01/23 - FGIC Insured
1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 AAA 1,037,010
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
1,575 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 AAA 1,631,432
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
3,600 Ventura County Community College District, California, 8/15 at 100.00 AAA 3,753,504
General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
251,318 Total California 178,184,628
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.3% (1.4% OF TOTAL INVESTMENTS)
2,015 Board of Trustees of the University of Northern Colorado, 6/15 at 100.00 AAA 2,120,022
Revenue Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured
Denver City and County, Colorado, Airport Revenue Bonds,
Series 2006:
5,365 5.000%, 11/15/23 - FGIC Insured (UB) 11/16 at 100.00 AAA 5,625,256
1,100 7.501%, 11/15/24 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,250,865
1,445 7.501%, 11/15/25 - FGIC Insured (IF) 11/16 at 100.00 AAA 1,643,182
|
20
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO (CONTINUED)
$ 1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA $ 1,305,863
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA
Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,039,280
Series 2005, 5.000%, 6/01/30 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
12,175 Total Colorado 12,984,468
-----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,000 Connecticut, General Obligation Bonds, Series 2004D, 12/14 at 100.00 AAA 2,124,660
5.000%, 12/01/22 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 2.2% (1.4% OF TOTAL INVESTMENTS)
8,000 Washington Convention Center Authority, District of 10/08 at 101.00 AAA 8,190,080
Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series
1998, 5.000%, 10/01/21 (Pre-refunded 10/01/08) - AMBAC
Insured
1,335 Washington Convention Center Authority, District of 10/16 at 100.00 AAA 1,231,444
Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series
2007, Residuals 1606, 6.094%, 10/01/30 - AMBAC Insured (IF)
3,920 Washington DC Convention Center Authority, Dedicated Tax 10/16 at 100.00 AAA 3,397,621
Revenue Bonds, Residual Series 1730, 1731, 1736, 6.092%,
10/01/36 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
13,255 Total District of Columbia 12,819,145
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.6% (4.7% OF TOTAL INVESTMENTS)
3,450 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 3,585,723
Series 2005, 5.000%, 10/01/24 - MBIA Insured
3,250 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 3,411,980
Public Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 21,050,000
5.750%, 10/01/25 - FSA Insured (Alternative Minimum Tax)
4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,216,023
Multifamily Housing Revenue Bonds, Monterey Pointe
Apartments, Series 2001-2A, 5.850%, 7/01/37 - FSA Insured
(Alternative Minimum Tax)
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 7,179,340
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA 3,974,821
Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
41,595 Total Florida 43,417,887
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,044,080
Series 2004, 5.000%, 11/01/22 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.3% (2.0% OF TOTAL INVESTMENTS)
1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 1,706,459
2003A, 5.000%, 7/15/21 - FSA Insured
Hawaii Department of Transportation, Airport System
Revenue Refunding Bonds, Series 2000B:
8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 9,423,933
7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 7,399,630
-----------------------------------------------------------------------------------------------------------------------------------
17,405 Total Hawaii 18,530,022
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 15.5% (9.5% OF TOTAL INVESTMENTS)
9,500 Chicago, Illinois, Second Lien General Airport Revenue 1/10 at 101.00 AAA 9,929,970
Refunding Bonds, O'Hare International Airport, Series 1999,
5.500%, 1/01/15 - AMBAC Insured (Alternative Minimum Tax)
2,875 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 AAA 3,056,154
Bonds, O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - MBIA Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 AAA 26,342,250
Health System, Series 2000, 5.875%, 2/15/30 - AMBAC Insured
(ETM)
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,794,451
Series 2001, 5.250%, 5/01/26 - FSA Insured
|
21
| Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$ 15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA $ 16,536,997
Series 2002, 5.250%, 4/01/27 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 8,220,600
Revenue Bonds, McCormick Place Expansion Project, Series
2002A, 0.000%, 12/15/24 - MBIA Insured
10,000 University of Illinois, Certificates of Participation, 8/11 at 100.00 AAA 10,617,200
Utility Infrastructure Projects, Series 2001B, 5.250%,
8/15/21 (Pre-refunded 8/15/11) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
94,435 Total Illinois 88,497,622
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.3% (1.4% OF TOTAL INVESTMENTS)
3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 3,822,094
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
7,790 Indiana Transportation Finance Authority, Highway Revenue No Opt. Call AAA 9,140,552
Bonds, Series 1990A, 7.250%, 6/01/15 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,520 Total Indiana 12,962,646
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 AAA 3,164,160
Series 2003, 5.000%, 10/01/21 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 5.8% (3.6% OF TOTAL INVESTMENTS)
3,015 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 3,140,243
Project Notes, First Series 2005, 5.000%, 5/01/25 - MBIA
Insured
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
2,530 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA 2,819,837
12,060 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 13,441,594
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
3,815 6.150%, 10/01/27 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 Aaa 4,363,330
6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - MBIA Insured 10/13 at 101.00 Aaa 7,005,346
2,230 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 2,426,017
Bonds, Project 85, Series 2005, 5.000%, 8/01/23
(Pre-refunded 8/01/15) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
29,775 Total Kentucky 33,196,367
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.1% (2.5% OF TOTAL INVESTMENTS)
10 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 8,822
Residuals 660-1, 5.940%, 5/01/41 - FGIC Insured (IF)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
11,325 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 11,344,706
8,940 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 8,588,837
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 4,411
Residuals 660-3, 5.939%, 5/01/41 - FGIC Insured (IF)
3,225 Orleans Levee District, Louisiana, Levee District General 12/07 at 102.00 AAA 3,293,596
Obligation Bonds, Series 1986, 5.950%, 11/01/15 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
23,505 Total Louisiana 23,240,372
-----------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.5% (0.9% OF TOTAL INVESTMENTS)
555 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 578,982
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 - MBIA Insured
|
22
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MAINE (CONTINUED)
$ 7,445 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 Aaa $ 7,822,908
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 (Pre-refunded
7/01/09) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,000 Total Maine 8,401,890
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8% (1.1% OF TOTAL INVESTMENTS)
2,100 Maryland Health and Higher Educational Facilities 7/16 at 100.00 AAA 2,105,061
Authority, Revenue Bonds, Western Maryland Health, Series
2006A, 4.750%, 7/01/36 - MBIA Insured (UB)
7,535 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 7,983,408
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.500%, 3/01/18 - AMBAC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,635 Total Maryland 10,088,469
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.7% (1.6% OF TOTAL INVESTMENTS)
5,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 5,316,800
Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,680 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 AAA 1,738,195
Bonds, Series 2006A, 5.000%, 5/01/36 - AMBAC Insured
1,100 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,187,439
Bonds, Series 2005A, 5.250%, 8/01/26 - MBIA Insured
1,155 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 987,294
Bonds, Series 2007, Residual Trust 7039, 6.272%, 8/01/46 -
FSA Insured (IF)
Massachusetts, Special Obligation Dedicated Tax
Revenue Bonds, Series 2004:
1,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,358,400
1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,086,720
1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,298,630
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,173,440
-----------------------------------------------------------------------------------------------------------------------------------
14,380 Total Massachusetts 15,146,918
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9% (0.5% OF TOTAL INVESTMENTS)
4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,921,618
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.0% (0.0% OF TOTAL INVESTMENTS)
12 St. Louis Park, Minnesota, GNMA Mortgage-Backed Securities 4/08 at 100.00 Aaa 12,171
Program Single Family Residential Mortgage Revenue Bonds,
Series 1991A, 7.250%, 4/20/23
-----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.1% (0.7% OF TOTAL INVESTMENTS)
2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,327,585
Mississippi, Revenue Refunding Bonds, Wastewater Treatment
Facilities, Series 1991B, 7.750%, 2/01/14 - FGIC Insured
(ETM)
2,545 Harrison County Wastewater Management District, No Opt. Call AAA 3,129,637
Mississippi, Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991A, 8.500%, 2/01/13 - FGIC
Insured (ETM)
-----------------------------------------------------------------------------------------------------------------------------------
5,260 Total Mississippi 6,457,222
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.7% (0.4% OF TOTAL INVESTMENTS)
4,335 Lincoln Electric System, Nebraska, Electric System Revenue 9/17 at 100.00 AAA 3,949,749
Bonds, Series 2007A, Residuals 07-1007-9, 5.973%, 9/01/37 -
FGIC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.1% (4.4% OF TOTAL INVESTMENTS)
33,700 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 34,580,240
Industry, Revenue Bonds, Las Vegas Monorail Project, First
Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured
|
23
| Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA (CONTINUED)
$ 5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA $ 6,099,064
Reno Transportation Rail Access Corridor Project, Series
2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
39,420 Total Nevada 40,679,304
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.5% (0.9% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,700 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,790,593
1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,785,034
2,230 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 2,119,214
Rowan College, Series 2007B, 4.250%, 7/01/34 - FGIC Insured
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,633,925
5.000%, 1/01/19 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,130 Total New Jersey 8,328,766
-----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1% (0.7% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,420 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,495,374
3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,427,423
1,530 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 1,594,245
5.000%, 4/01/23 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,240 Total New Mexico 6,517,042
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.7% (9.6% OF TOTAL INVESTMENTS)
11,760 Dormitory Authority of the State of New York, New York 5/10 at 101.00 AAA 12,538,982
City, Lease Revenue Bonds, Court Facilities, Series 1999,
5.750%, 5/15/30 (Pre-refunded 5/15/10) - AMBAC Insured
1,100 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 1,143,835
Bonds, Mental Health Services Facilities Improvements,
Series 2005A, 5.000%, 2/15/24 - AMBAC Insured
15,000 Dormitory Authority of the State of New York, Revenue 10/12 at 100.00 AAA 16,259,250
Bonds, School Districts Financing Program, Series 2002D,
5.500%, 10/01/17 - MBIA Insured
4,070 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 3,885,914
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AAA 3,081,177
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured
(UB)
5,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 AAA 5,247,000
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 -
FGIC Insured
8,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 8,311,840
Service Contract Refunding Bonds, Series 2002A, 5.000%,
7/01/25 - FGIC Insured
6,940 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 7,100,800
Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 -
AMBAC Insured (UB)
10,150 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 10,264,492
Refunding Bonds, Housing Project, Series 1996A, 6.125%,
11/01/20 - FSA Insured
4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 AAA 4,261,740
Bonds, Series 82, 5.550%, 10/01/19 - MBIA Insured
(Alternative Minimum Tax)
6,595 New York State Thruway Authority, State Personal Income Tax 3/15 at 100.00 AAA 6,890,060
Revenue Bonds, Series 2005A, 5.000%, 3/15/25 - FSA Insured
New York State Urban Development Corporation, Service
Contract Revenue Bonds, Series 2005B:
2,460 5.000%, 3/15/24 - FSA Insured 3/15 at 100.00 AAA 2,574,808
2,465 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 2,575,284
5,000 Triborough Bridge and Tunnel Authority, New York, 11/13 at 100.00 AAA 5,142,550
Subordinate Lien General Purpose Revenue Bonds, Series
2003A, 5.000%, 11/15/32 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
86,040 Total New York 89,277,732
-----------------------------------------------------------------------------------------------------------------------------------
|
24
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.6% (2.8% OF TOTAL INVESTMENTS)
$ 1,585 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA $ 1,771,206
General Obligation Bonds, Series 2006, 5.250%, 12/01/23 -
FGIC Insured
7,000 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 7,510,160
Series 2004, 5.250%, 6/01/19 - FGIC Insured
9,200 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 12/16 at 100.00 Aaa 8,620,676
2006, 4.250%, 12/01/32 - AMBAC Insured (UB)
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, 9/09 at 102.00 AAA 5,221,300
Catholic Healthcare Partners, Series 1999A, 5.500%, 9/01/29
- AMBAC Insured
3,065 Oak Hills Local School District, Hamilton County, Ohio, 12/15 at 100.00 AAA 3,211,139
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
25,850 Total Ohio 26,334,481
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,250 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 2,357,055
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.0% (2.4% OF TOTAL INVESTMENTS)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,151,410
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,087,080
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Pre-refunded 1/01/08) - MBIA Insured
(Alternative Minimum Tax)
Delaware County Authority, Pennsylvania, Revenue Bonds,
Villanova University, Series 2006:
3,260 5.000%, 8/01/23 - AMBAC Insured 8/16 at 100.00 AAA 3,435,681
1,600 5.000%, 8/01/24 - AMBAC Insured 8/16 at 100.00 AAA 1,683,840
5,400 Pennsylvania Public School Building Authority, Lease 12/16 at 100.00 AAA 5,278,014
Revenue Bonds, School District of
Philadelphia, Series 2006B, 4.500%, 6/01/32 - FSA Insured (UB)
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,093,980
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
22,260 Total Pennsylvania 22,730,005
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.5% (0.9% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,647,450
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
5,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 5,620,400
Transportation Authority, Series 2003AA, 5.500%, 7/01/16 -
FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
7,500 Total Puerto Rico 8,267,850
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.1% (0.7% OF TOTAL INVESTMENTS)
3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,153,270
Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC
Insured
3,335 South Carolina Transportation Infrastructure Bank, Revenue 10/16 at 100.00 Aaa 3,008,604
Bonds, Series 2007A, Lehman Municipal Trust Receipts K35W,
5.953%, 10/01/34 - XLCA Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
6,335 Total South Carolina 6,161,874
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.1% (0.6% OF TOTAL INVESTMENTS)
Knox County Health, Educational and Housing Facilities
Board, Tennessee, Hospital Revenue Refunding Bonds,
Covenant Health, Series 2002A:
7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 3,093,150
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,940,450
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 1,001,303
-----------------------------------------------------------------------------------------------------------------------------------
15,250 Total Tennessee 6,034,903
-----------------------------------------------------------------------------------------------------------------------------------
|
25
| Nuveen Insured Quality Municipal Fund, Inc. (continued)
NQI | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 19.0% (11.7% OF TOTAL INVESTMENTS)
$ 8,000 Abilene Health Facilities Development Corporation, Texas, 3/08 at 100.00 AAA $ 8,014,080
Hospital Revenue Refunding and Improvement Bonds, Hendrick
Medical Center Project, Series 1995C, 6.150%, 9/01/25 -
MBIA Insured
1,595 Austin, Texas, Combined Utility System Revenue Refunding 11/07 at 100.00 AAA 1,596,675
Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured
3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 7/14 at 100.00 AAA 3,355,673
2004, 5.250%, 7/15/20 - FSA Insured
3,000 Dallas-Ft. Worth International Airport, Texas, Joint 11/11 at 100.00 AAA 3,209,460
Revenue Refunding and Improvement Bonds, Series 2001A,
5.750%, 11/01/13 - FGIC Insured (Alternative Minimum Tax)
3,735 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 4,013,407
Texas, General Obligation Bonds, Series 2003, 5.125%,
2/15/31 (Pre-refunded 2/15/13) - FSA Insured
1,465 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 1,533,093
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
495 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call AAA 512,063
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,319,400
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,500 Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 4,638,870
Bonds, Series 2001A, 5.000%, 3/01/22 - FSA Insured
17,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 20,333,530
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured (ETM)
4,685 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,827,893
Bonds, Series 2000A, 5.500%, 7/01/19 - FSA Insured
(Alternative Minimum Tax)
19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,952,256
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital
of Southeast Texas, Series 2001, 5.400%, 8/15/31 - AMBAC
Insured
6,000 Laredo Community College District, Texas, Limited Tax 8/10 at 100.00 AAA 6,303,780
General Obligation Bonds, Series 2001, 5.375%, 8/01/31
(Pre-refunded 8/01/10) - AMBAC Insured
2,000 Laredo Independent School District Public Facilities 8/11 at 100.00 AAA 2,045,440
Corporation, Texas, Lease Revenue Bonds, Series 2004A,
5.000%, 8/01/24 - AMBAC Insured
22,045 North Central Texas Health Facilities Development 8/12 at 101.00 AAA 22,781,303
Corporation, Revenue Bonds, Children's Medical Center of
Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
101,855 Total Texas 108,436,923
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.9% (7.9% OF TOTAL INVESTMENTS)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,335,709
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 - MBIA Insured (Alternative Minimum Tax)
15,025 Seattle Housing Authority, Washington, GNMA Collateralized 11/11 at 105.00 AAA 16,608,485
Mortgage Loan Low Income Housing Assistance Revenue Bonds,
Park Place Project, Series 2000A, 7.000%, 5/20/42
4,570 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AAA 4,856,402
Mortgage Loan Low Income Housing Assistance Revenue Bonds,
RHF/Esperanza Apartments Project, Series 2000A, 6.125%,
3/20/42 (Alternative Minimum Tax)
5,000 Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 AAA 5,214,100
Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured
11,750 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 AAA 12,089,575
Bonds, Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 -
MBIA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 2,618,375
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - MBIA Insured
21,510 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AAA 8,135,297
Bonds, Series 2002-03C, 0.000%, 6/01/28 - MBIA Insured (UB)
10,000 Washington State, General Obligation Bonds, Series R-2003A, 1/12 at 100.00 AAA 10,432,400
5.000%, 1/01/19 - MBIA Insured
|
26
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
$ 2,250 Washington, Certificates of Participation, Washington 7/09 at 100.00 AAA $ 2,306,858
Convention and Trade Center, Series 1999, 5.250%, 7/01/14 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
83,335 Total Washington 73,597,201
-----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.4% (1.5% OF TOTAL INVESTMENTS)
12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,574,853
Revenue Bonds, Infrastructure and Jobs Development Council
Program, Series 2000A, 5.500%, 10/01/39 (Pre-refunded
10/01/10) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aaa 1,773,942
2004, 5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA Insured
545 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aaa 566,015
2004, 5.000%, 11/01/26 - FSA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 AAA 1,735,837
System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
3,855 Total Wisconsin 4,075,794
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,003,030 Total Investments (cost $893,218,583) - 163.0% 928,818,910
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.5)% (54,140,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 13,279,266
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.8)% (318,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 569,958,176
===================================================================================================================
|
All of the bonds in the Portfolio of Investments are either covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
The Fund may 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27
| Nuveen Insured Municipal Opportunity Fund, Inc.
NIO | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 11.0% (6.9% OF TOTAL INVESTMENTS)
$ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 10,044,195
Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 -
AMBAC Insured (UB)
11,175 Hoover Board of Education, Alabama, Capital Outlay Tax 2/11 at 100.00 AAA 11,642,786
Anticipation Warrants, Series 2001, 5.250%, 2/15/22 - MBIA
Insured
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 1999A:
10,815 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,115,333
9,790 5.000%, 2/01/33 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,070,386
29,860 5.750%, 2/01/38 (Pre-refunded 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 30,986,916
2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,673,400
Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded
8/01/12) - FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 2002D:
425 5.000%, 2/01/38 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 451,218
14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 15,746,312
18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 19,763,285
Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded
2/01/11) - FGIC Insured
10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 1/08 at 100.00 AAA 10,206,215
Series 1997A, 5.375%, 2/01/27 - FGIC Insured
5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/11 at 101.00 AAA 5,526,838
Series 2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) - FGIC
Insured
6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, 7/14 at 100.00 AAA 6,175,980
Series 2004A, 5.000%, 7/01/29 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
130,060 Total Alabama 134,402,864
-----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.5% (0.9% OF TOTAL INVESTMENTS)
3,190 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 3,263,530
Mortgage Program Bonds, First Series 1999A-1, 6.150%, 6/01/39
11,245 Alaska Housing Finance Corporation, General Mortgage Revenue 6/09 at 100.00 AAA 11,430,093
Bonds, Series 1999A, 6.050%, 6/01/39 - MBIA Insured
3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 3,025,230
Series 1998A, 5.250%, 7/01/14 - AMBAC Insured (Alternative
Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
17,435 Total Alaska 17,718,853
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.5% (1.6% OF TOTAL INVESTMENTS)
Arizona State University, Certificates of Participation,
Resh Infrastructure Projects, Series 2005A:
2,000 5.000%, 9/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,075,040
2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,068,700
1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,040,940
5.000%, 7/01/27 - AMBAC Insured
1,000 Maricopa County Union High School District 210, Phoenix, 7/14 at 100.00 AAA 1,081,350
Arizona, General Obligation Bonds,
Series 2004A, 5.000%, 7/01/22 (Pre-refunded 7/01/14) - FSA
Insured
6,940 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 Aaa 5,748,610
Longs, Series 11032- 11034, 5.258%, 7/01/31 - FSA Insured
(IF)
1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,193,125
Wastewater System Revenue Bonds, Series 2004, 5.000%,
7/01/27 - MBIA Insured
|
28
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA (CONTINUED)
$ 13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA $ 13,762,903
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
MBIA Insured
3,895 Pima County Industrial Development Authority, Arizona, Lease 1/08 at 100.00 Aaa 4,007,020
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
31,475 Total Arizona 30,977,688
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,660 Arkansas State University, Student Fee Revenue Bonds, Beebe 9/15 at 100.00 Aaa 3,766,067
Campus, Series 2006, 5.000%, 9/01/35 - AMBAC Insured
Pulaski County, Arkansas, Hospital Revenue Bonds, Arkansas
Children's Hospital, Series 2005:
2,000 5.000%, 3/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,069,960
3,000 5.000%, 3/01/30 - AMBAC Insured 3/15 at 100.00 AAA 3,093,570
-----------------------------------------------------------------------------------------------------------------------------------
8,660 Total Arkansas 8,929,597
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 32.7% (20.4% OF TOTAL INVESTMENTS)
5,600 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 3,195,864
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 10,569,600
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
30,000 5.375%, 5/01/17 (Pre-refunded 5/01/12) - XLCA Insured 5/12 at 101.00 AAA 32,664,899
25,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 AAA 27,220,750
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
3,700 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 3,873,826
2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,925,383
18,000 California Infrastructure Economic Development Bank, First 1/28 at 100.00 AAA 19,622,880
Lien Revenue Bonds, San Francisco
Bay Area Toll Bridge, Series 2003A, 5.000%, 7/01/33
(Pre-refunded 1/01/28) - AMBAC Insured (UB)
4,500 California, General Obligation Bonds, Series 1998, 5.000%, 10/08 at 101.00 AAA 4,590,900
10/01/19 - FGIC Insured
10,150 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 AAA 10,451,455
6/01/31 - AMBAC Insured
3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 3,663,310
California, General Obligation
Bonds, Series 2005A, 5.000%, 8/01/26 - FGIC Insured
20,000 Cucamonga County Water District, San Bernardino County, 9/11 at 101.00 AAA 20,696,200
California, Certificates of
Participation, Water Shares Purchase, Series 2000, 5.125%,
9/01/35 - FGIC Insured
5,750 East Bay Municipal Utility District, Alameda and Contra 6/15 at 100.00 AAA 6,002,253
Costa Counties, California, Water
System Subordinated Revenue Bonds, Series 2005A, 5.000%,
6/01/27 - MBIA Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 10,211,500
Tobacco Settlement Asset-Backed
Revenue Bonds, Series 2005A, 5.000%, 6/01/38 - FGIC Insured
1,520 Hayward Redevelopment Agency, California, Downtown 3/16 at 100.00 AAA 1,560,006
Redevelopment Project Tax Allocation Bonds, Series 2006,
5.000%, 3/01/36 - XLCA Insured
4,000 Kern Community College District, California, General 11/15 at 100.00 AAA 4,245,400
Obligation Bonds, Series 2005, 5.000%, 11/01/20 - FSA Insured
5,600 Kern Community College District, California, General No Opt. Call AAA 2,570,176
Obligation Bonds, Series 2006, 0.000%, 11/01/24 - FSA Insured
5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 5,194,600
Revenue Refunding Bonds, Long Beach
Aquarium of the South Pacific, Series 2001, 5.250%, 11/01/30
- AMBAC Insured
1,875 Los Angeles Department of Water and Power, California, 7/16 at 100.00 AAA 1,943,588
Waterworks Revenue Bonds, Series 2006A-1, 5.000%, 7/01/36 -
AMBAC Insured
2,740 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 2,862,697
Series 2006A, 5.000%, 8/01/22 -
FGIC Insured (Alternative Minimum Tax)
|
29
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 20,000 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA $ 21,081,800
Obligation Bonds, Series 2003A, 5.000%, 7/01/21 - FSA Insured
2,000 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 2,104,500
Obligation Bonds, Series 2005A-2, 5.000%, 7/01/23 - MBIA
Insured
3,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AAA 3,162,630
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC
Insured
6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 AAA 6,336,980
5.000%, 11/01/22 - FGIC Insured (Alternative Minimum Tax)
Poway Redevelopment Agency, California, Tax Allocation
Bonds, Paguay Redevelopment Project, Series 2001:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,542,100
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,140,150
2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 AAA 2,091,125
Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured
6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,258,240
California, General Obligation Bonds, Series 2003, 5.000%,
7/01/26 - FSA Insured
2,285 Rio Hondo Community College District, California, General 8/15 at 100.00 AAA 2,423,014
Obligation Bonds, Series 2005A, 5.000%, 8/01/20 - FGIC
Insured
2,970 Riverside Community College District, California, General 8/15 at 100.00 AAA 3,127,618
Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA Insured
2,500 Sacramento County Sanitation District Financing Authority, 12/15 at 100.00 AAA 2,602,900
California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 -
FGIC Insured
13,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 13,964,046
Refunding Bonds, San Francisco
International Airport, Second Series 2001, Issue 27A,
5.250%, 5/01/26 - MBIA Insured (Alternative Minimum Tax)
3,030 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 3,143,443
Sales Tax Revenue Bonds, Series
2001, 5.125%, 7/01/36 - AMBAC Insured
8,470 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 8,967,782
Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36
(Pre-refunded 7/01/11) - AMBAC Insured
San Francisco Bay Area Rapid Transit District, California,
Sales Tax Revenue Bonds, Series 2005A:
1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,280,890
1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,346,880
66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 37,452,294
County, California, Senior Lien Toll
Road Revenue Bonds, Series 1993, 0.000%, 1/01/21 (ETM)
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue
Refunding Bonds, Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 1/08 at 101.00 AAA 32,084,798
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 6,708,430
12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 13,174,547
Bonds, Merged Area Redevelopment
Project, Series 2002, 5.000%, 8/01/20 (Pre-refunded 8/01/10)
- MBIA Insured
19,595 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AAA 18,181,025
Bonds, Merged Area Redevelopment
Project, Series 2006C, 4.250%, 8/01/30 - MBIA Insured (UB)
11,000 Santa Ana Financing Authority, California, Lease Revenue No Opt. Call AAA 13,446,840
Bonds, Police Administration and
Housing Facility, Series 1994A, 6.250%, 7/01/24 - MBIA
Insured
5,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 5,110,050
Bonds, Turlock Irrigation
District, Series 2004A, 5.000%, 1/01/34 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
432,380 Total California 398,797,369
-----------------------------------------------------------------------------------------------------------------------------------
|
30
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.7% (4.2% OF TOTAL INVESTMENTS)
$ 1,080 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA $ 1,129,626
Bonds, Series 2006, 5.250%, 10/01/40 - XLCA Insured
1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open 11/15 at 100.00 AAA 2,031,043
Space, Series 2005B, 5.250%, 11/01/24 - FSA Insured
1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,034,390
Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured
4,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 Aaa 5,329,616
Revenue Bonds, Convention Center
Hotel, Series 2003A, 5.000%, 12/01/33 (Pre-refunded
12/01/13) - XLCA Insured
1,740 Douglas County School District RE1, Douglas and Elbert 12/14 at 100.00 Aaa 1,805,842
Counties, Colorado, General Obligation
Bonds, Series 2005B, 5.000%, 12/15/28 - FSA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 17,411,141
Bonds, Series 1997B, 0.000%, 9/01/23 - MBIA Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 33,226,115
Bonds, Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10)
- MBIA Insured
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 AAA 7,955,678
Bonds, Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10)
- MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue No Opt. Call AAA 3,926,100
Bonds, Series 2004A, 0.000%, 9/01/27 - MBIA Insured
4,520 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 4,721,999
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
2,500 Summit County School District RE-1, Summit, Colorado, 12/14 at 100.00 Aaa 2,615,900
General Obligation Bonds, Series 2004B, 5.000%, 12/01/24 -
FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,039,280
Series 2005, 5.000%, 6/01/30 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
107,285 Total Colorado 82,226,730
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.1% (0.7% OF TOTAL INVESTMENTS)
District of Columbia Water and Sewerage Authority,
Subordinate Lien Public Utility Revenue Bonds, Series 2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AAA 5,263,150
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AAA 5,248,200
2,670 Washington Convention Center Authority, District of 10/16 at 100.00 AAA 2,462,888
Columbia, Senior Lien Dedicated Tax
Revenue Bonds, Series 2007, Residuals 1606, 6.094%, 10/01/30
- AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
12,670 Total District of Columbia 12,974,238
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.5% (3.5% OF TOTAL INVESTMENTS)
1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA 1,033,690
Participation, Master Lease
Program, Series 2005A, 5.000%, 7/01/26 - MBIA Insured
Indian Trace Development District, Florida, Water Management
Special Benefit Assessment Bonds, Series 2005:
645 5.000%, 5/01/25 - MBIA Insured 5/15 at 102.00 Aaa 675,554
1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,906,567
4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,702,802
Healthcare Facilities Revenue Bonds,
Mayo Clinic, Series 2001C, 5.500%, 11/15/36 - MBIA Insured
1,505 Lee County, Florida, Transportation Facilities Revenue 10/14 at 100.00 AAA 1,585,623
Bonds, Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
2,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,071,220
Series 2003, 5.000%, 10/01/27 - MBIA Insured
2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,168,017
International Airport, Series 2002A,
5.125%, 10/01/35 - FSA Insured (Alternative Minimum Tax)
|
31
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA (CONTINUED)
$ 35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA $ 36,840,269
International Airport, Series 2002, 5.375%, 10/01/32 - FGIC
Insured (Alternative Minimum Tax)
5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,497,741
Jackson Health System, Series 2005B, 5.000%, 6/01/25 - MBIA
Insured
Northern Palm Beach County Improvement District, Florida,
Revenue Bonds, Water Control and Improvement Development
Unit 9B, Series 2005:
1,290 5.000%, 8/01/23 - MBIA Insured 8/15 at 102.00 AAA 1,358,589
2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,226,167
2,590 Ocala, Florida, Utility System Revenue Bonds, Series 2005B, 10/15 at 100.00 Aaa 2,686,711
5.000%, 10/01/27 - FGIC Insured
2,320 Osceola County, Florida, Transportation Revenue Bonds, 4/14 at 100.00 Aaa 2,412,127
Osceola Parkway, Series 2004, 5.000%, 4/01/23 - MBIA Insured
2,225 Plantation, Florida, Non-Ad Valorem Revenue Refunding and 8/13 at 100.00 Aaa 2,345,306
Improvement Bonds, Series 2003, 5.000%, 8/15/18 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
65,365 Total Florida 67,510,383
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,044,080
2004, 5.000%, 11/01/22 - FSA Insured
1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,633,194
Georgia, Revenue Bonds, Public Safety Project, Series 2004,
5.250%, 9/01/23 - MBIA Insured
Fulton County Development Authority, Georgia, Revenue Bonds,
Georgia Tech Molecular Science Building, Series 2004:
1,695 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,817,226
1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,216,845
4,500 5.000%, 5/01/36 - MBIA Insured 5/14 at 100.00 AAA 4,629,420
1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, 2/08 at 101.00 AAA 1,263,938
Revenue Bonds, Southeast Georgia Health
Systems, Series 1996, 5.250%, 8/01/13 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,100 Total Georgia 11,604,703
-----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 0.4% (0.3% OF TOTAL INVESTMENTS)
5,000 Hawaii, General Obligation Bonds, Series 2005DF, 5.000%, 7/15 at 100.00 AAA 5,224,600
7/01/25 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
345 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 354,746
Series 1994B-1, 6.750%, 7/01/22
300 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 308,955
Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
375 Idaho Housing Agency, Single Family Mortgage Senior Bonds, 1/08 at 100.00 Aaa 384,229
Series 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series 2006:
1,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 1,053,670
1,065 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,120,572
-----------------------------------------------------------------------------------------------------------------------------------
3,085 Total Idaho 3,222,172
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 6.6% (4.2% OF TOTAL INVESTMENTS)
1,050 Bedford Park, Illinois, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,131,942
2004A, 5.250%, 12/15/20 - FSA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Refunding Bonds, O'Hare International Airport,
Series 2001E:
4,615 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,833,428
4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 5,093,143
7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 7,653,672
O'Hare International Airport,
Series 2005A, 5.250%, 1/01/24 - MBIA Insured
|
32
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (CONTINUED)
$ 10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA $ 10,175,300
Provena Health, Series 1998A, 5.500%, 5/15/21 - MBIA Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, 12/07 at 100.00 Aaa 2,098,059
Robert Morris College, Series 2000, 5.800%, 6/01/30 - MBIA
Insured
4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,621,320
Brothers Health System, Series 1999, 5.000%, 1/01/19
(Pre-refunded 1/01/09) - FSA Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, 6/08 at 101.00 Aaa 7,107,940
Hospital Sisters Services Inc. Obligated
Group, Series 1998A, 5.000%, 6/01/18 - MBIA Insured
6,000 Illinois Toll Highway Authority, State Toll Highway 7/16 at 100.00 AAA 6,280,920
Authority Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA
Insured
22,510 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 23,417,828
Series 2002, 5.125%, 2/01/27 - FGIC Insured
Schaumburg, Illinois, General Obligation Bonds, Series 2004B:
4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AAA 4,446,886
2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AAA 2,462,887
4,000 Southwestern Illinois Development Authority, School Revenue No Opt. Call AAA 1,737,080
Bonds, Triad School District 2,
Madison County, Illinois, Series 2006, 0.000%, 10/01/25 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
80,465 Total Illinois 81,060,405
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.5% (2.2% OF TOTAL INVESTMENTS)
2,030 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AAA 2,179,083
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/20 (Pre-refunded 7/15/13) - FGIC Insured
8,000 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 8,197,520
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 7,714,600
Series 1999E, 0.000%, 2/01/28 - AMBAC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,489,135
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - MBIA Insured
1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,442,269
County, Indiana, First Mortgage Bonds, Series 2004, 5.000%,
1/15/25 (Pre-refunded 1/15/14) - FSA Insured
5,000 Noblesville Redevelopment Authority, Indiana, Economic 7/13 at 100.00 AAA 5,130,550
Development Lease Rental Bonds, Exit 10 Project, Series
2003, 5.000%, 1/15/28 - AMBAC Insured
10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,424,600
5.000%, 7/01/19 - MBIA Insured
3,705 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 AAA 3,942,639
City, Indiana, First Mortgage Bonds, Series 2003, 5.000%,
7/15/16 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
53,325 Total Indiana 42,520,396
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 2,163,997
5.000%, 9/01/23 - FSA Insured
Neosho County Unified School District 413, Kansas, General
Obligation Bonds, Series 2006:
2,145 5.000%, 9/01/27 - FSA Insured 9/14 at 100.00 Aaa 2,229,749
4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aaa 5,011,526
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,195,800
Revenue Bonds, KU Health System, Series 1999A, 5.650%,
9/01/29 (Pre-refunded 9/01/09) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
14,035 Total Kansas 14,601,072
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 2.1% (1.3% OF TOTAL INVESTMENTS)
3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aaa 4,096,511
School Building Revenue Bonds, Series 2004, 5.000%, 6/01/20
- MBIA Insured
7,500 Kentucky Turnpike Authority, Economic Development Road 7/16 at 100.00 AAA 7,878,825
Revenue Bonds, Revitalization Project, Series 2006B, 5.000%,
7/01/25 - AMBAC Insured
|
33
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY (CONTINUED)
$ 12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA $ 13,824,868
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.500%, 5/15/34 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
24,350 Total Kentucky 25,800,204
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.7% (3.6% OF TOTAL INVESTMENTS)
5,000 DeSoto Parish, Louisiana, Pollution Control Revenue 9/09 at 102.00 AAA 5,265,050
Refunding Bonds, Cleco Utility Group Inc. Project, Series
1999, 5.875%, 9/01/29 - AMBAC Insured
3,025 Lafayette City and Parish, Louisiana, Utilities Revenue 11/14 at 100.00 AAA 3,247,005
Bonds, Series 2004, 5.250%, 11/01/22 - MBIA Insured
5,140 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 5,385,229
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA
Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2005A:
2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 2,501,256
4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 4,595,529
5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 5,198,000
38 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 33,817
Residuals 660-1, 5.940%, 5/01/41 - FGIC Insured (IF)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds,
Series 2006:
3,300 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 3,305,742
35,725 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 34,321,722
5,485 Orleans Levee District, Louisiana, Levee District General 12/07 at 102.00 AAA 5,601,666
Obligation Bonds, Series 1986,
5.950%, 11/01/15 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
69,528 Total Louisiana 69,455,016
-----------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.3% (0.2% OF TOTAL INVESTMENTS)
3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,078,630
Revenue Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.5% (0.2% OF TOTAL INVESTMENTS)
5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 5,696,380
Revenue Bonds, Series 2006A, 5.250%, 9/01/28 - XLCA Insured
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.8% (3.0% OF TOTAL INVESTMENTS)
22,500 Massachusetts Development Finance Authority, Revenue Bonds, 1/12 at 101.00 AAA 24,302,475
WGBH Educational Foundation, Series 2002A, 5.375%, 1/01/42
(Pre-refunded 1/01/12) - AMBAC Insured
11,000 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,552,640
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
2,420 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,068,616
Bonds, Series 2007, Residual Trust 7039, 6.272%, 8/01/46 -
FSA Insured (IF)
15,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 16,300,800
Bonds, Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) -
FGIC Insured
University of Massachusetts Building Authority, Senior Lien
Project Revenue Bonds, Series 2004-1:
1,500 5.375%, 11/01/20 (Pre-refunded 11/01/14) - AMBAC Insured 11/14 at 100.00 AAA 1,662,960
2,500 5.375%, 11/01/21 (Pre-refunded 11/01/14) - AMBAC Insured 11/14 at 100.00 AAA 2,771,600
-----------------------------------------------------------------------------------------------------------------------------------
54,920 Total Massachusetts 58,659,091
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 6.3% (3.9% OF TOTAL INVESTMENTS)
5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,627,308
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 6.000%, 5/01/29 - FSA Insured
6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,357,480
5.375%, 4/01/18 - MBIA Insured
|
34
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (CONTINUED)
$ 7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/08 at 100.00 AAA $ 7,466,449
Bonds, Series 1997A, 5.000%, 7/01/27 - MBIA Insured
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1999A:
15,825 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 16,726,392
20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 21,191,000
1,085 Grand Rapids Community College, Kent County, Michigan, 5/13 at 100.00 AAA 1,157,153
General Obligation Refunding Bonds, Series 2003, 5.250%,
5/01/20 - AMBAC Insured
6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 7,014,606
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/15 - MBIA Insured (Alternative Minimum Tax)
10,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 10,549,000
Airport Hotel Revenue Bonds, Detroit
Metropolitan Wayne County Airport, Series 2001A, 5.250%,
12/01/25 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
72,670 Total Michigan 77,089,388
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2% (0.8% OF TOTAL INVESTMENTS)
13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 14,693,070
Multifamily Housing Revenue Bonds, Marian Center Project,
Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11)
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.9% (0.6% OF TOTAL INVESTMENTS)
9,680 Lincoln Electric System, Nebraska, Electric System Revenue 9/17 at 100.00 AAA 8,819,738
Bonds, Series 2007A, Residuals 07-1007-9, 5.973%, 9/01/37 -
FGIC Insured (IF)
Nebraska Public Power District, General Revenue Bonds,
Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,041,780
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,039,910
-----------------------------------------------------------------------------------------------------------------------------------
11,680 Total Nebraska 10,901,428
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.4% (5.3% OF TOTAL INVESTMENTS)
8,475 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 8,688,570
Southern Nevada Water Authority Loan, Series 2002, 5.000%,
6/01/32 - MBIA Insured
3,630 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 Aaa 3,877,094
Southern Nevada Water Authority Loan, Series 2002, 5.000%,
6/01/32 (Pre-refunded 12/01/12) - MBIA Insured
7,370 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 AAA 7,674,086
Bonds, Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
Director of Nevada State Department of Business and
Industry, Revenue Bonds, Las Vegas Monorail Project, First
Tier, Series 2000:
15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 15,762,750
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,339,560
14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 6/12 at 100.00 AAA 15,788,196
2002, 5.375%, 6/01/32 - FGIC Insured
25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 6/12 at 100.00 AAA 27,264,292
2002, 5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured
10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA 10,662,700
Reno Transportation Rail Access Corridor Project, Series
2002, 5.125%, 6/01/27 (Pre-refunded 6/01/12) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
97,760 Total Nevada 103,057,248
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.4% (1.5% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,134,960
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,396,655
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
3,850 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 4,055,167
3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 4,042,577
|
35
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A:
$ 8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 AAA $ 8,691,953
2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,086,380
3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,501,006
5.000%, 1/01/21 - FSA Insured
2,795 Rutgers State University, New Jersey, Revenue Bonds, Series 5/14 at 100.00 AAA 2,942,800
2004E, 5.000%, 5/01/22 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
28,315 Total New Jersey 29,851,498
-----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.3% (0.1% OF TOTAL INVESTMENTS)
3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax 6/15 at 100.00 AAA 3,818,771
Revenue Bonds, Series 2005, 5.000%, 6/15/25 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.8% (4.9% OF TOTAL INVESTMENTS)
1,880 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,959,317
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
3,335 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 3,490,644
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
3,820 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 3,647,221
Bonds, 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 8,865,127
General Revenue Bonds, Series 1998A, 5.300%, 12/01/19
(Pre-refunded 6/01/08) - FSA Insured
6,900 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AAA 6,442,461
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured
(UB)
12,500 Long Island Power Authority, New York, Electric System 6/16 at 100.00 AAA 13,117,500
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC
Insured
Metropolitan Transportation Authority, New York, State
Service Contract Refunding Bonds, Series 2002A:
2,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AAA 2,621,050
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 5,194,900
5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 5,293,800
Series 2005F-1, 5.000%, 9/01/21 - AMBAC Insured
10,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AAA 10,424,000
Series 2005M, 5.000%, 4/01/26 - FGIC Insured
5,000 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 5,215,200
Series 2005F, 5.000%, 1/01/26 - AMBAC Insured
3,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,045,090
Series 2005G, 4.750%, 1/01/29 - FSA Insured
3,650 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 3,813,301
Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA
Insured
New York State Urban Development Corporation, State Personal
Income Tax Revenue Bonds, Series 2004A-1:
1,000 5.000%, 3/15/23 - FGIC Insured 3/14 at 100.00 AAA 1,041,720
5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,197,250
15,000 Triborough Bridge and Tunnel Authority, New York, 11/12 at 100.00 AAA 15,425,700
Subordinate Lien General Purpose Revenue Refunding Bonds,
Series 2002E, 5.000%, 11/15/32 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
92,270 Total New York 94,794,281
-----------------------------------------------------------------------------------------------------------------------------------
|
36
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
Mooresville, North Carolina, Enterprise System Revenue
Bonds, Series 2004:
$ 2,115 5.000%, 5/01/22 - FGIC Insured 5/14 at 100.00 AAA $ 2,226,841
2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 AAA 2,674,060
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,353,900
Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured
Raleigh Durham Airport Authority, North Carolina, Airport
Revenue Bonds, Series 2005A:
3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aaa 3,340,219
3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,429,733
-----------------------------------------------------------------------------------------------------------------------------------
16,190 Total North Carolina 17,024,753
-----------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.6% (0.3% OF TOTAL INVESTMENTS)
Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus
Project, Series 2005A:
2,195 5.000%, 12/15/22 - MBIA Insured 12/15 at 100.00 Aaa 2,310,062
1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,421,747
3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,143,580
-----------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Dakota 6,875,389
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.6% (2.9% OF TOTAL INVESTMENTS)
3,485 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA 3,894,418
General Obligation Bonds, Series 2006,
5.250%, 12/01/23 - FGIC Insured
2,650 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 2,841,860
Series 2004, 5.250%, 6/01/24 - FGIC Insured
2,000 Columbus City School District, Franklin County, Ohio, 12/14 at 100.00 AAA 2,202,680
General Obligation Bonds, Series 2004,
5.250%, 12/01/25 (Pre-refunded 12/01/14) - FSA Insured
2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 2,477,681
Project, Series 2004A, 5.000%, 12/01/22 - AMBAC Insured
2,205 Hamilton City School District, Ohio, General Obligation 6/15 at 100.00 Aaa 2,307,533
Bonds, Series 2005, 5.000%, 12/01/24 - MBIA Insured
19,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 12/16 at 100.00 Aaa 18,365,788
2006, 4.250%, 12/01/32 - AMBAC Insured (UB)
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 20,797,068
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 -
AMBAC Insured
3,000 Ross Local School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 3,233,490
Obligation Bonds, Series 2003, 5.000%, 12/01/28
(Pre-refunded 12/01/13) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
55,425 Total Ohio 56,120,518
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.1% (1.3% OF TOTAL INVESTMENTS)
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 3,666,530
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
3,910 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 4,201,139
Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
6,605 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 Aaa 6,785,581
Revenue Bonds, Series 2007, Drivers 1904, 6.834%, 1/01/47 -
FGIC Insured (IF)
5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,445,884
Medical Research Foundation, Series 2001, 5.250%, 2/01/21 -
AMBAC Insured
4,880 University of Oklahoma, Student Housing Revenue Bonds, 7/14 at 100.00 Aaa 5,134,834
Series 2004, 5.000%, 7/01/22 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
24,140 Total Oklahoma 25,233,968
-----------------------------------------------------------------------------------------------------------------------------------
|
37
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates
of Participation, Series 2005A:
$ 2,535 5.000%, 5/01/25 - FSA Insured 5/15 at 100.00 AAA $ 2,633,738
2,115 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 2,182,363
3,470 Oregon Department of Administrative Services, Certificates 11/15 at 100.00 AAA 3,680,456
of Participation, Series 2005B, 5.000%, 11/01/18 - FGIC
Insured
1,115 Oregon Housing and Community Services Department, Single 1/08 at 100.00 Aa2 1,116,204
Family Mortgage Revenue Bonds, Series 1995A, 6.450%, 7/01/26
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,235 Total Oregon 9,612,761
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.1% (1.9% OF TOTAL INVESTMENTS)
7,925 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 8,287,569
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured
1,800 Pennsylvania Higher Educational Facilities Authority, 5/15 at 100.00 AAA 1,871,280
Revenue Bonds, Drexel University, Series 2005A, 5.000%,
5/01/28 - MBIA Insured
11,740 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 11,474,793
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 2,750,843
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
6,335 Radnor Township School District, Delaware County, 8/15 at 100.00 Aaa 6,585,042
Pennsylvania, General Obligation Bonds, Series 2005B,
5.000%, 2/15/30 - FSA Insured
Reading School District, Berks County, Pennsylvania, General
Obligation Bonds, Series 2005:
3,285 5.000%, 1/15/22 - FSA Insured 1/16 at 100.00 AAA 3,462,127
3,450 5.000%, 1/15/23 - FSA Insured 1/16 at 100.00 AAA 3,626,226
-----------------------------------------------------------------------------------------------------------------------------------
37,160 Total Pennsylvania 38,057,880
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,726,425
Series 2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) - XLCA
Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/13 at 100.00 AAA 2,142,800
Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call AAA 1,728,049
8/01/21 - CIFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,050 Total Puerto Rico 6,597,274
-----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1% (1.3% OF TOTAL INVESTMENTS)
2,195 Providence Housing Development Corporation, Rhode Island, 1/08 at 100.00 AAA 2,269,959
FHA-Insured Section 8 Assisted
Mortgage Revenue Refunding Bonds, Barbara Jordan Apartments,
Series 1994A, 6.750%, 7/01/25 - MBIA Insured
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 21,568,775
Special Obligation Refunding Bonds, Series 1993B, 5.250%,
8/01/21 (Pre-refunded 2/01/11) - MBIA Insured
1,405 Rhode Island Health & Educational Building Corporation, 9/14 at 100.00 Aaa 1,516,023
Higher Education Auxiliary Enterprise
Revenue Bonds, Series 2004A, 5.500%, 9/15/24 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
24,075 Total Rhode Island 25,354,757
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 4.4% (2.8% OF TOTAL INVESTMENTS)
10,000 Beaufort County, South Carolina, Tax Increment Bonds, New 12/12 at 100.00 AAA 10,351,300
River Redevelopment Project, Series 2002, 5.000%, 6/01/27 -
MBIA Insured
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
2,000 5.250%, 8/15/22 - MBIA Insured 8/14 at 100.00 AAA 2,112,520
2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,219,617
4,855 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 3,815,156
Revenue Bonds, Series 1988A, 0.000%,
1/01/13 - AMBAC Insured (ETM)
|
38
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (CONTINUED)
$ 6,980 Piedmont Municipal Power Agency, South Carolina, Electric 7/09 at 76.63 AAA $ 5,038,583
Revenue Bonds, Series 1988A, 0.000%, 1/01/13 (Pre-refunded
7/01/09) - AMBAC Insured
7,955 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call AAA 6,228,208
Revenue Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC Insured
8,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 8,413,360
Industrial Revenue Bonds, South Carolina
Electric and Gas Company, Series 2002A, 5.200%, 11/01/27 -
AMBAC Insured
10,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 10,309,700
Industrial Revenue Bonds, South Carolina
Electric and Gas Company, Series 2002B, 5.450%, 11/01/32 -
AMBAC Insured (Alternative Minimum Tax)
5,835 South Carolina Transportation Infrastructure Bank, Excise 10/16 at 100.00 Aaa 5,263,929
Tax Revenue Bonds, Series 2007, RI Trust K30W, 6.034%,
10/01/34 - XLCA Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
57,730 Total South Carolina 53,752,373
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.6% (0.3% OF TOTAL INVESTMENTS)
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,714,104
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 15.9% (9.9% OF TOTAL INVESTMENTS)
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 23,229,840
Houston Industries Inc., Series 1998C, 5.125%, 5/01/19 -
AMBAC Insured
521 Capital Area Housing Finance Corporation, Texas, FNMA Backed 4/12 at 106.00 AAA 533,822
Single Family Mortgage Revenue
Refunding Bonds, Series 2002A-2, 6.300%, 4/01/35 - AMBAC
Insured (Alternative Minimum Tax)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,989,875
Bonds, Series 2000A, 6.125%, 11/01/35 - FGIC Insured
(Alternative Minimum Tax)
Harris County, Texas, Toll Road Senior Lien Revenue Bonds,
Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 4,541,670
39,000 0.000%, 8/15/19 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 18,371,730
7,280 0.000%, 8/15/20 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 3,201,380
5,085 0.000%, 8/15/21 (Pre-refunded 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 2,087,443
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 25,614,500
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
4,671 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 4,884,979
Collateralized Mortgage Multifamily Housing
Revenue Bonds, RRG Apartments Project, Series 2001, 6.350%,
3/20/42
Houston, Texas, First Lien Combined Utility System Revenue
Bonds, Series 2004A:
4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AAA 4,255,520
5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,295,050
6,570 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 6,955,133
Series 2001A, 5.375%, 3/01/19 (Pre-refunded 3/01/11) - FSA
Insured
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 18,220,125
Bonds, Convention and Entertainment
Project, Series 2001B, 5.250%, 9/01/33 - AMBAC Insured
4,170 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,388,508
Bonds, Series 2000B, 5.500%, 7/01/30 (Pre-refunded 7/01/10)
- FSA Insured
23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 24,904,082
Texas, FHA-Insured Mortgage
Revenue Bonds, Baptist Hospital of Southeast Texas, Series
2001, 5.500%, 8/15/41 - AMBAC Insured
140 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 Aaa 146,955
Improvement Bonds, Series 2001A,
5.000%, 5/15/21 (Pre-refunded 5/15/11) - MBIA Insured
8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 AAA 8,364,937
Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - MBIA
Insured
|
39
| Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
NIO | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Port of Houston Authority, Harris County, Texas, General
Obligation Port Improvement Bonds,
Series 2001B:
$ 3,205 5.500%, 10/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA $ 3,342,751
3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,520,058
7,205 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 7,575,193
Bonds, Series 2001, 5.375%, 7/01/15 - FGIC Insured
(Alternative Minimum Tax)
Tarrant County Health Facilities Development Corporation,
Texas, Revenue Bonds, Texas Health Resources System, Series
1997A:
2,900 5.250%, 2/15/22 (Pre-refunded 2/15/08) - MBIA Insured 2/08 at 102.00 AAA 2,971,746
165 5.000%, 2/15/26 (Pre-refunded 2/15/08) - MBIA Insured 2/08 at 101.00 Aaa 167,331
6,655 5.000%, 2/15/26 (Pre-refunded 2/15/08) - MBIA Insured 2/08 at 101.00 AAA 6,749,035
1,840 Ysleta Independent School District Public Facility 11/09 at 100.00 AAA 1,890,122
Corporation, Texas, Lease Revenue Refunding
Bonds, Series 2001, 5.375%, 11/15/24 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
220,362 Total Texas 194,201,785
-----------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,145,980
5.000%, 7/01/28 (Pre-refunded 7/01/13) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
8,000 Greater Richmond Convention Center Authority, Virginia, 6/15 at 100.00 AAA 8,289,200
Hotel Tax Revenue Bonds, Series 2005, 5.000%, 6/15/30 - MBIA
Insured
1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,112,056
Lease Revenue Bonds, Public Safety
Facilities, Series 2003A, 5.250%, 12/15/20 - FSA Insured
4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,092,551
System Revenue Bonds, Series 2001A,
5.500%, 10/01/19 - MBIA Insured (Alternative Minimum Tax)
10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,232,700
Mortgage Bonds, Series 2001H-1, 5.375%, 7/01/36 - MBIA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
23,875 Total Virginia 24,726,507
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 2.3% (1.4% OF TOTAL INVESTMENTS)
2,500 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 2,579,575
Bonds, Wanapum Hydroelectric
Development, Series 2005A, 5.000%, 1/01/29 - FGIC Insured
3,500 King County School District 401, Highline, Washington, 12/14 at 100.00 AAA 3,642,695
General Obligation Bonds, Series 2004, 5.000%, 10/01/24 -
FGIC Insured
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,362,418
Bonds, Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10) -
AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, No Opt. Call AAA 5,097,620
Generation System Revenue Bonds, Series 1989, 6.650%,
1/01/16 - FGIC Insured (ETM)
Tacoma, Washington, Solid Waste Utility Revenue Refunding
Bonds, Series 2006:
3,890 5.000%, 12/01/24 - XLCA Insured 12/16 at 100.00 AAA 4,064,544
4,085 5.000%, 12/01/25 - XLCA Insured 12/16 at 100.00 AAA 4,258,980
4,290 5.000%, 12/01/26 - XLCA Insured 12/16 at 100.00 AAA 4,462,930
-----------------------------------------------------------------------------------------------------------------------------------
25,710 Total Washington 27,468,762
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.1% (2.6% OF TOTAL INVESTMENTS)
18,000 Wisconsin Health and Educational Facilities Authority, 12/07 at 102.00 AAA 18,383,940
Revenue Bonds, Aurora Healthcare Inc., Series 1997, 5.250%,
8/15/17 (Pre-refunded 12/04/07) - MBIA Insured
15,000 Wisconsin Health and Educational Facilities Authority, 2/08 at 101.00 AAA 15,319,350
Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%,
2/15/27 - MBIA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 AAA 1,735,836
System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 - AMBAC
Insured
|
40
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (CONTINUED)
$ 290 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 AAA $ 310,742
5/01/20 - FGIC Insured
2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aaa 2,844,296
5/01/20 (Pre-refunded 5/01/14) - FGIC Insured
10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5.000%, 5/14 at 100.00 AAA 11,541,065
5/01/20 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
48,510 Total Wisconsin 50,135,229
-----------------------------------------------------------------------------------------------------------------------------------
$ 2,012,325 Total Investments (cost $1,862,743,204) - 160.0% 1,952,688,115
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (7.1)% (86,103,333)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 33,711,902
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.7)% (680,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,220,296,684
===================================================================================================================
|
All of the bonds in the Portfolio of Investments are either covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
The Fund may 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. Taxexempt 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
41
| Nuveen Premier Insured Municipal Income Fund, Inc.
NIF | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 8/15 at 100.00 AAA $ 3,313,024
5.000%, 8/01/30 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.0% (1.9% OF TOTAL INVESTMENTS)
4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 4,458,405
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
MBIA Insured
5,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AAA 4,254,650
Plaza, Series 2005B, 0.000%, 7/01/40 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,370 Total Arizona 8,713,055
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5% (0.9% OF TOTAL INVESTMENTS)
4,020 Northwest Community College District, Arkansas, General 5/15 at 100.00 AAA 4,211,352
Obligation Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 33.0% (21.0% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations,
California, Insured Certificates of Participation,
Children's Hospital Medical Center of Northern California,
Series 1999:
6,750 5.875%, 12/01/19 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 7,146,698
10,000 6.000%, 12/01/29 (Pre-refunded 12/01/09) - AMBAC Insured 12/09 at 101.00 AAA 10,612,600
1,000 California Department of Water Resources, Water System 12/14 at 100.00 AAA 1,039,220
Revenue Bonds, Central Valley Project, Series 2005AC,
5.000%, 12/01/26 - MBIA Insured
1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,314,538
Revenue Bonds, Pacific Gas and Electric Company, Series
1996A, 5.350%, 12/01/16 - MBIA Insured (Alternative Minimum
Tax)
4,775 Clovis Unified School District, Fresno County, California, No Opt. Call AAA 2,107,972
General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 -
FGIC Insured
1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,044,838
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/26 - FSA
Insured
1,150 Kern Community College District, California, General No Opt. Call AAA 556,014
Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
50 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 51,574
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I,
7.150%, 12/30/24 (Alternative Minimum Tax)
35 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 36,188
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III,
7.450%, 6/30/25 (Alternative Minimum Tax)
4,500 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 5,893,380
Single Family Residential Mortgage Revenue Bonds, Series
1984A, 10.250%, 7/01/17 (ETM)
5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,683,100
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,449,961
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%,
8/01/23 (ETM)
11,470 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 13,251,405
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum
Tax) (ETM)
9,685 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 12,219,565
Program Single Family Mortgage Revenue Refunding Bonds,
Series 1990A, 7.500%, 5/01/23 (ETM)
|
42
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 4,300 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA $ 4,426,119
Refunding Bonds, San Francisco International Airport, Second
Series 2001, Issue 27A, 5.125%, 5/01/19 - MBIA Insured
(Alternative Minimum Tax)
3,055 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 3,396,457
County, California, Toll Road Revenue Refunding Bonds,
Series ROLS 11094Z-1, 7.296%, 1/15/31 - MBIA Insured (IF)
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,144,660
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
4,475 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AAA 4,152,084
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - MBIA Insured (UB)
4,455 San Mateo County Community College District, California, No Opt. Call AAA 2,420,179
General Obligation Bonds, Series 2006B, 0.000%, 9/01/21 -
MBIA Insured
1,815 University of California, General Revenue Bonds, Series 5/13 at 101.00 AAA 1,832,733
2005G, 4.750%, 5/15/31 - MBIA Insured
3,600 Ventura County Community College District, California, 8/15 at 100.00 AAA 3,753,504
General Obligation Bonds, Series 2005B,
5.000%, 8/01/28 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
89,250 Total California 95,532,789
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.6% (6.1% OF TOTAL INVESTMENTS)
1,500 Adams and Arapahoe Counties Joint School District 28J, 12/13 at 100.00 AAA 1,597,350
Aurora, Colorado, General Obligation Bonds, Series 2003A,
5.125%, 12/01/21 - FSA Insured
2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,638,625
Refunding Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC
Insured (Alternative Minimum Tax)
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,472,620
Bonds, Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10)
- MBIA Insured
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 6,696,200
Bonds, Series 2000B, 0.000%, 9/01/30 - MBIA Insured
4,405 Garfield, Eagle and Pitkin Counties School District RE-1, 12/14 at 100.00 AAA 4,601,859
Roaring Fork, Colorado, General Obligation Bonds, Series
2005A, 5.000%, 12/15/24 - FSA Insured
2,065 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 2,157,285
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AAA 1,464,087
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 -
MBIA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/12 at 100.00 AAA 1,061,890
Series 2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC
Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,039,280
Series 2005, 5.000%, 6/01/30 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
39,860 Total Colorado 27,729,196
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
665 Washington Convention Center Authority, District of 10/16 at 100.00 AAA 613,416
Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series
2007, Residuals 1606, 6.094%, 10/01/30 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.7% (2.3% OF TOTAL INVESTMENTS)
2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,378,525
5.000%, 2/01/23 - MBIA Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AAA 1,582,740
Series 2004A, 5.000%, 10/01/19 - FGIC Insured
4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 AAA 4,579,200
Bonds, Series 2003-1, 5.250%, 10/01/17 - MBIA Insured
2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AAA 2,067,920
2005, 5.000%, 10/01/28 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,025 Total Florida 10,608,385
-----------------------------------------------------------------------------------------------------------------------------------
|
43
| Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
NIF | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.4% (2.2% OF TOTAL INVESTMENTS)
$ 2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 1/15 at 100.00 AAA $ 3,060,360
2004G, 5.000%, 1/01/25 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 6,785,220
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 5.500%, 8/01/25 - MBIA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,450 Total Georgia 9,845,580
-----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.8% (2.4% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,325,960
Revenue Bonds, Hawaiian Electric Company Inc., Series 1999D,
6.150%, 1/01/20 - AMBAC Insured (Alternative Minimum Tax)
8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 8,620,526
Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC
Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
10,280 Total Hawaii 10,946,486
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 17.2% (11.0% OF TOTAL INVESTMENTS)
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,174,720
5.000%, 12/01/22 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation No Opt. Call AAA 9,208,928
Lease Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA
Insured
10,000 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,405,900
Series 2000D, 5.500%, 1/01/35 - FGIC Insured
1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 AAA 1,541,365
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24
- MBIA Insured
23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 15,802,152
Program Revenue Bonds, Kane, Cook and DuPage Counties School
District U46 - Elgin, Series 2002, 0.000%, 1/01/17 - FSA
Insured
2,500 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 AAA 2,581,125
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
5,010 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 2,668,727
Revenue Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 0.000%, 12/15/21 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,494,965
McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
57,495 Total Illinois 49,877,882
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.8% (2.4% OF TOTAL INVESTMENTS)
2,130 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 2,182,590
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
Indiana University, Parking Facility Revenue Bonds, Series
2004:
1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA 1,093,439
1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,141,917
1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,185,008
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 4,180,946
Series 1999E, 0.000%, 2/01/25 - AMBAC Insured
1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,075,460
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.250%, 1/15/21 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
15,560 Total Indiana 10,859,360
-----------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley 6/13 at 100.00 Aaa 3,493,786
Medical Center, Series 2003, 5.000%, 6/15/17 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.0% (0.6% OF TOTAL INVESTMENTS)
2,760 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aaa 2,852,543
Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
|
44
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.8% (1.8% OF TOTAL INVESTMENTS)
$ 1,000 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA $ 1,047,710
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA
Insured
7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, 5/16 at 100.00 AAA 7,172,458
Series 2006, 4.750%, 5/01/39 - FSA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
8,160 Total Louisiana 8,220,168
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,200 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 AAA 1,246,176
Revenue Refunding Bonds, University of Maryland College Park
Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured
5,000 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 5,162,700
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.125%, 3/01/21 - AMBAC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
6,200 Total Maryland 6,408,876
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.8% (1.1% OF TOTAL INVESTMENTS)
4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,621,056
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
575 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 491,510
Bonds, Series 2007, Residual Trust 7039, 6.272%, 8/01/46 -
FSA Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
4,975 Total Massachusetts 5,112,566
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7% (2.3% OF TOTAL INVESTMENTS)
6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 6,720,675
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured
(Alternative Minimum Tax)
3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,884,295
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
10,310 Total Michigan 10,604,970
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,115,490
Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%,
1/01/15 - FGIC Insured (Alternative Minimum Tax)
145 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/08 at 100.00 AAA 145,287
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,005 Total Minnesota 5,260,777
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.6% (0.5% OF TOTAL INVESTMENTS)
2,000 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 2,111,400
Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.0% (4.4% OF TOTAL INVESTMENTS)
2,100 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 2,152,920
Southern Nevada Water Authority Loan, Series 2002, 5.000%,
6/01/32 - MBIA Insured
900 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 Aaa 961,263
Southern Nevada Water Authority Loan, Series 2002, 5.000%,
6/01/32 (Pre-refunded 12/01/12) - MBIA Insured
8,000 Clark County, Nevada, Subordinate Lien Airport Revenue 7/11 at 100.00 AAA 8,444,720
Bonds, Series 2001B, 5.125%, 7/01/21 (Pre-refunded 7/01/11)
- FGIC Insured
7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA 8,561,365
Reno Transportation Rail Access Corridor Project, Series
2002, 5.250%, 6/01/41 (Pre-refunded 6/01/12) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,990 Total Nevada 20,120,268
-----------------------------------------------------------------------------------------------------------------------------------
|
45
| Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
NIF | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.6% (1.0% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
$ 1,200 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA $ 1,263,948
1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,260,024
1,280 New Jersey Educational Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 1,216,410
Rowan College, Series 2007B, 4.250%, 7/01/34 - FGIC Insured
800 Rutgers State University, New Jersey, Certificates of 1/14 at 100.00 AAA 828,912
Participation, Lower Georges Street University Redevelopment
Associates LLC, Series 2004, 5.000%, 1/01/24 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,480 Total New Jersey 4,569,294
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.6% (4.2% OF TOTAL INVESTMENTS)
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,042,190
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
20 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 17,287
Bonds, Driver Trust 1649, 2006, 6.058%, 2/15/47 - MBIA
Insured (IF)
2,125 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 2,028,886
Bonds, Series 2006A, 4.500% 2/15/47 - MBIA Insured (UB)
5,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 AAA 5,247,000
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 - FGIC
Insured
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,809,100
Transportation Revenue Refunding Bonds, Series 2002F,
5.250%, 11/15/27 (Pre-refunded 11/15/12) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,145 Total New York 19,144,463
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.2% (1.4% OF TOTAL INVESTMENTS)
3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,186,583
Revenue Bonds, Betsy Johnson Regional Hospital Project,
Series 2003, 5.125%, 10/01/32 - FSA Insured
3,050 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,186,640
Revenue Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,150 Total North Carolina 6,373,223
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.8% (1.1% OF TOTAL INVESTMENTS)
820 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA 914,964
General Obligation Bonds, Series 2006, 5.250%, 12/01/22 -
FGIC Insured
4,600 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 12/16 at 100.00 Aaa 4,310,338
2006, 4.250%, 12/01/32 - AMBAC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
5,420 Total Ohio 5,225,302
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 3,666,530
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
815 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 875,685
Family Mortgage Revenue Bonds, Series 1987A, 7.997%, 8/01/18
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
4,315 Total Oklahoma 4,542,215
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 4.3% (2.7% OF TOTAL INVESTMENTS)
Oregon Health Sciences University, Revenue Bonds, Series
2002A:
5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,189,400
7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,176,540
-----------------------------------------------------------------------------------------------------------------------------------
12,000 Total Oregon 12,365,940
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3% (2.1% OF TOTAL INVESTMENTS)
1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 1,575,705
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
|
46
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 4,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA $ 4,183,000
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured
2,680 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 2,619,459
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 1,100,337
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,230 Total Pennsylvania 9,478,501
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.1% (1.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,647,450
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call AAA 1,114,870
8/01/21 - CIFG Insured
2,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,258,120
Transportation Authority, Series 2003AA, 5.500%, 7/01/17 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,500 Total Puerto Rico 6,020,440
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.7% (2.3% OF TOTAL INVESTMENTS)
3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa 3,137,520
Government Public Improvement Lease Bonds, Oak Ridge, Series
2005B-9-A, 5.000%, 6/01/24 - AMBAC Insured
2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, 10/14 at 100.00 AAA 2,163,689
Series 2004, 5.000%, 10/01/22 - FSA Insured
5,000 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 5,290,950
and Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 6.000%,
11/15/30 (Pre-refunded 11/15/09) - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,055 Total Tennessee 10,592,159
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.6% (6.8% OF TOTAL INVESTMENTS)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,797,749
Refunding and Improvement Bonds,
Series 2001A, 5.500%, 11/01/35 - FGIC Insured (Alternative
Minimum Tax)
North Harris County Regional Water Authority,
Texas, Senior Water Revenue Bonds, Series 2003:
4,565 5.250%, 12/15/20 - FGIC Insured 12/13 at 100.00 AAA 4,880,898
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 AAA 5,120,064
7,600 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 7,971,184
Bonds, Series 2001, 5.375%, 7/01/16 - FGIC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
29,465 Total Texas 30,769,895
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 17.3% (11.0% OF TOTAL INVESTMENTS)
5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,267,400
Consolidated System Revenue Bonds, Series 2001B, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
King County School District 405, Bellevue, Washington, General
Obligation Bonds, Series 2002:
12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,685,913
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,448,541
Pierce County School District 343, Dieringer, Washington,
General Obligation Refunding Bonds, Series 2003:
2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aaa 2,937,767
2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aaa 3,188,357
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 4,964,706
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 939,437
Terminal 18, Series 1999C, 6.000%, 9/01/29 - MBIA Insured
(Alternative Minimum Tax)
1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,330,654
5.000%, 12/01/18 - FGIC Insured
|
47
| Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
NIF | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (CONTINUED)
$ 5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%,
1/01/26 - FSA Insured 1/11 at 100.00 AAA $ 5,182,401
-----------------------------------------------------------------------------------------------------------------------------------
47,465 Total Washington 49,945,176
-----------------------------------------------------------------------------------------------------------------------------------
$ 463,145 Total Investments (cost $434,330,405) - 157.4% 455,462,487
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.8)% (14,015,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 3.0% 8,952,803
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (55.6)% (161,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 289,400,290
===================================================================================================================
|
All of the bonds in the Portfolio of Investments are either covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
The Fund may 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
48
| Nuveen Insured Premium Income Municipal Fund 2
NPX | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.5% OF TOTAL INVESTMENTS)
$ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA $ 3,889,950
Series 2005A, 5.000%, 6/01/24 - MBIA Insured
Jefferson County, Alabama, General Obligation
Warrants, Series 2004A:
-----------------------------------------------------------------------------------------------------------------------------------
1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,466,926
1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 1,083,077
11,135 Limestone County Water and Sewer Authority, Alabama, Water 3/17 at 100.00 AAA 10,665,548
Revenue Bonds, Series 2007, 4.500%, 12/01/37 - XLCA Insured
(UB)
Montgomery Water and Sewerage Board, Alabama, Water and
Sewerage Revenue Bonds, Series 2005:
2,220 5.000%, 3/01/24 - FSA Insured 3/15 at 100.00 AAA 2,320,277
2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,702,018
-----------------------------------------------------------------------------------------------------------------------------------
22,130 Total Alabama 22,127,796
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.5% (1.4% OF TOTAL INVESTMENTS)
12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 12,558,883
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/27 -
MBIA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.9% (1.7% OF TOTAL INVESTMENTS)
7,745 Arkansas Development Finance Authority, State Facility 6/14 at 100.00 AAA 8,278,940
Revenue Bonds, Donaghey Plaza Project, Series 2004, 5.250%,
6/01/25 - FSA Insured
University of Arkansas, Fayetteville, Revenue Bonds, Medical
Sciences Campus, Series 2004B:
2,000 5.000%, 11/01/27 - MBIA Insured 11/14 at 100.00 Aaa 2,077,120
2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,075,900
2,480 University of Arkansas, Monticello Campus, Revenue Bonds, 12/13 at 100.00 Aaa 2,543,934
Series 2005, 5.000%, 12/01/35 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
14,225 Total Arkansas 14,975,894
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 28.0% (16.7% OF TOTAL INVESTMENTS)
22,880 Alameda Corridor Transportation Authority, California, Senior No Opt. Call AAA 6,966,502
Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - MBIA
Insured (UB)
2,000 California Department of Water Resources, Water System 12/14 at 100.00 AAA 2,093,960
Revenue Bonds, Central Valley Project, Series 2005AC, 5.000%,
12/01/24 - MBIA Insured
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,861,128
Occidental College, Series 2005A, 5.000%, 10/01/33 - MBIA
Insured
7,000 California Infrastructure Economic Development Bank, First 1/28 at 100.00 AAA 7,631,120
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) - AMBAC
Insured (UB)
31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 6,886,464
Toll Road Revenue Refunding Bonds, Series 1999, 0.000%,
1/15/34 - MBIA Insured
1,735 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 AAA 1,795,690
Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 -
AMBAC Insured
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 7,152,530
Tobacco Settlement Asset-Backed Revenue Bonds, Series 2005A,
5.000%, 6/01/35 - FGIC Insured
1,870 Kern Community College District, California, General No Opt. Call AAA 904,126
Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA Insured
|
49
| Nuveen Insured Premium Income Municipal Fund 2 (continued)
NPX | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA $ 6,862,887
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC
Insured
4,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AAA 4,216,840
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC Insured
15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 16,384,198
of Participation, Series 2003, 5.250%, 2/01/30 (Pre-refunded
8/01/13) - FGIC Insured
10,000 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 10,202,100
Certificates of Participation, Series 2003B, 5.000%, 8/15/34
- MBIA Insured
1,000 Orange County Water District, California, Revenue 2/15 at 100.00 AAA 1,040,480
Certificates of Participation, Series 2005B, 5.000%, 8/15/24
- MBIA Insured
1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AAA 1,545,911
California, General Obligation Bonds, Series 2003A, 5.000%,
6/01/22 (Pre-refunded 6/01/13) - FGIC Insured
12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 13,092,029
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded
12/01/09) - AMBAC Insured
735 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 781,026
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
San Diego County, California, Certificates of Participation,
Edgemoor Facility Project and Regional System, Series 2005:
1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,745,668
720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 749,016
14,170 San Diego Unified School District, San Diego County, 7/15 at 100.00 AAA 15,493,053
California, General Obligation Bonds, Series 2005G, 5.000%,
7/01/29 (Pre-refunded 7/01/15) - FSA Insured (UB)
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Revenue Refunding Bonds, Series 1997A:
3,825 0.000%, 1/15/32 - MBIA Insured (UB) No Opt. Call AAA 1,193,477
26,900 0.000%, 1/15/34 - MBIA Insured (UB) No Opt. Call AAA 7,623,191
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,144,660
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
7,845 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AAA 7,278,905
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - MBIA Insured (UB)
5,000 Torrance, California, Certificates of Participation, Series No Opt. Call AAA 5,174,000
2005B, 5.000%, 6/01/24 - AMBAC Insured
12,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 12,877,875
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
201,075 Total California 143,696,836
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.1% (5.4% OF TOTAL INVESTMENTS)
1,940 Colorado Educational and Cultural Facilities Authority, 6/13 at 100.00 AAA 2,032,014
Charter School Revenue Bonds, Adams School District 12 -
Pinnacle School, Series 2003, 5.250%, 6/01/23 - XLCA Insured
3,405 Colorado Educational and Cultural Facilities Authority, 12/13 at 100.00 AAA 3,579,200
Charter School Revenue Bonds, Classical Academy, Series 2003,
5.250%, 12/01/23 - XLCA Insured
3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aaa 3,691,870
Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded 12/01/09) - FSA Insured
17,145 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 Aaa 18,459,848
Revenue Bonds, Convention Center Hotel, Series 2003A, 5.000%,
12/01/33 (Pre-refunded 12/01/13) - XLCA Insured
6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,444,833
Series 2004, 5.000%, 12/01/18 - FSA Insured
1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,365,254
Detention Facility Project, Series 2002B, 5.000%, 12/01/27 -
AMBAC Insured
Jefferson County School District R1, Colorado,
General Obligation Bonds, Series 2004:
2,500 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 2,633,375
5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,360,443
2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,089,380
|
50
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO (CONTINUED)
$ 1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA $ 1,039,280
Series 2005, 5.000%, 6/01/30 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
44,040 Total Colorado 46,695,497
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,065 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 982,388
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 6.094%, 10/01/30 - AMBAC Insured (IF)
FLORIDA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,000 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 4,199,360
Public Education Capital Outlay Bonds, Series 2003J, 5.000%,
6/01/22 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.9% (2.3% OF TOTAL INVESTMENTS)
4,000 Cobb County Development Authority, Georgia, Parking Revenue 7/14 at 100.00 Aaa 4,172,000
Bonds, Kennesaw State University, Series 2004, 5.000%,
7/15/24 - MBIA Insured
2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 5/14 at 100.00 AAA 3,054,373
2005, 5.000%, 5/01/23 - MBIA Insured
Municipal Electric Authority of Georgia, Combustion
Turbine Revenue Bonds, Series 2003A:
1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,864,034
2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,705,207
4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 Aaa 4,802,040
Georgia, Water and Sewerage Revenue Bonds, Series 2003,
5.000%, 1/01/33 (Pre-refunded 1/01/13) - MBIA Insured
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 3,134,670
Revenue Certificates, South Georgia Medical Center, Series
2002, 5.200%, 10/01/22 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,780 Total Georgia 19,732,324
-----------------------------------------------------------------------------------------------------------------------------------
HAWAII - 7.8% (4.7% OF TOTAL INVESTMENTS)
2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 2,501,754
2003A, 5.000%, 7/15/19 - FSA Insured
20,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 AAA 20,945,198
Revenue Refunding Bonds, Hawaiian Electric Company Inc.,
Series 2000, 5.700%, 7/01/20 - AMBAC Insured (Alternative
Minimum Tax)
Hawaii Department of Transportation, Airport
System Revenue Refunding Bonds, Series 2000B:
6,105 6.100%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 6,487,967
9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 AAA 10,203,380
-----------------------------------------------------------------------------------------------------------------------------------
37,980 Total Hawaii 40,138,299
-----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS)
365 Idaho Housing and Finance Association, Single Family Mortgage 1/08 at 101.50 AAA 369,840
Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 4.4% (2.6% OF TOTAL INVESTMENTS)
1,015 Chicago Park District, Illinois, Limited Tax General 7/11 at 100.00 AAA 1,075,799
Obligation Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC
Insured Illinois Health Facilities Authority, Revenue Bonds,
Lutheran General Health System, Series 1993A:
2,810 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,956,823
5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 5,837,600
1,950 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call AAA 2,279,589
Bonds, SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14
- MBIA Insured (ETM)
4,000 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 AAA 4,129,800
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
6,000 Illinois Toll Highway Authority, State Toll Highway Authority 7/16 at 100.00 AAA 6,280,920
Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA Insured
|
51
| Nuveen Insured Premium Income Municipal Fund 2 (continued)
NPX | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
. ILLINOIS (CONTINUED)
$ 215 Peoria, Moline and Freeport, Illinois, GNMA Collateralized 4/08 at 103.00 AAA $ 218,535
Single Family Mortgage Revenue Bonds, Series 1995A, 7.600%,
4/01/27 (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
20,990 Total Illinois 22,779,066
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.6% (1.0% OF TOTAL INVESTMENTS)
Hamilton County Public Building Corporation, Indiana, First
Mortgage Bonds, Series 2004:
2,105 5.000%, 8/01/23 - FSA Insured 8/14 at 100.00 AAA 2,186,021
2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,297,642
3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 3,822,094
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,050 Total Indiana 8,305,757
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 1,570,455
5.000%, 9/01/27 - FSA Insured
KENTUCKY - 1.1% (0.7% OF TOTAL INVESTMENTS)
6,010 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 2,108,909
System Revenue Bonds, Norton Healthcare Inc., Series 2000B,
0.000%, 10/01/28 - MBIA Insured
3,575 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,737,949
Revenue Bonds, Revitalization Project, Series 2005B, 5.000%,
7/01/25 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
9,585 Total Kentucky 5,846,858
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.0% (3.0% OF TOTAL INVESTMENTS)
4,455 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 4,667,548
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA
Insured
Louisiana State, Gasoline and Fuels Tax Revenue
Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,250,628
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,300,367
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,599,000
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006:
1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,322,297
14,265 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 13,704,671
-----------------------------------------------------------------------------------------------------------------------------------
25,950 Total Louisiana 25,844,511
-----------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.9% (0.5% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 AAA 1,991,839
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - XLCA Insured
2,580 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 AAA 2,586,218
Revenue Bonds, Western Maryland Health, Series 2006A, 4.750%,
7/01/36 - MBIA Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
4,445 Total Maryland 4,578,057
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.0% (1.8% OF TOTAL INVESTMENTS)
3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call AAA 3,573,570
WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42 -
AMBAC Insured
290 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 AAA 290,693
Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27 -
AMBAC Insured (Alternative Minimum Tax)
4,910 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 5,494,830
Series 2002C, 5.500%, 11/01/15 - MBIA Insured
|
52
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts, Special Obligation Dedicated Tax Revenue
Bonds, Series 2004:
$ 3,650 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA $ 3,966,528
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,173,440
-----------------------------------------------------------------------------------------------------------------------------------
13,850 Total Massachusetts 15,499,061
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0% (1.2% OF TOTAL INVESTMENTS)
10,000 Michigan Housing Development Authority, Rental Housing 4/08 at 101.00 AAA 10,215,400
Revenue Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
885 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/08 at 100.00 AAA 886,752
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aaa 1,070,590
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/25 - MBIA Insured
495 Missouri Housing Development Commission, Multifamily Housing 12/07 at 101.00 AAA 501,212
Revenue Bonds, Brookstone Village Apartments, Series 1996A,
6.000%, 12/01/16 - FSA Insured (Alternative Minimum Tax)
750 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 769,650
Bonds, Series 2003, 5.000%, 10/01/33 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
2,245 Total Missouri 2,341,452
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 3.7% (2.2% OF TOTAL INVESTMENTS)
Nebraska Public Power District, General Revenue Bonds, Series
2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,041,780
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,039,910
12,520 Nebraska Public Power District, Power Supply System Revenue 2/16 at 100.00 AAA 12,835,629
Bonds, Series 2006A, 5.000%, 1/01/41 - FGIC Insured (UB)
3,875 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 3,992,490
System Revenue Bonds, Nebraska City 2, Series 2006A, 5.000%,
2/01/49 - AMBAC Insured (UB)
-----------------------------------------------------------------------------------------------------------------------------------
18,395 Total Nebraska 18,909,809
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 3.2% (1.9% OF TOTAL INVESTMENTS)
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 Aaa 5,319,000
Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38 -
AMBAC Insured (Alternative Minimum Tax)
3,280 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 AAA 3,421,106
Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured
Director of Nevada State Department of Business
and Industry, Revenue Bonds, Las Vegas Monorail
Project, First Tier, Series 2000:
5,000 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 2,006,850
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 5,779,675
-----------------------------------------------------------------------------------------------------------------------------------
18,780 Total Nevada 16,526,631
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.9% (2.9% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,134,960
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,396,655
1,560 Mount Olive Township Board of Education, Morris County, New 1/15 at 100.00 Aaa 1,634,334
Jersey, General Obligation Bonds, Series 2004, 5.000%,
1/15/22 - MBIA Insured
New Jersey Economic Development
Authority, Revenue Bonds, Motor Vehicle Surcharge, Series
2004A:
1,475 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,553,603
1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,548,780
|
53
| Nuveen Insured Premium Income Municipal Fund 2 (continued)
NPX | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY (CONTINUED)
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
$ 25,000 0.000%, 12/15/35 - AMBAC Insured (UB) No Opt. Call AAA $ 6,514,000
10,000 0.000%, 12/15/36 - AMBAC Insured (UB) No Opt. Call AAA 2,484,000
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,411,651
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,461,821
5.000%, 1/01/25 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
50,150 Total New Jersey 25,139,804
-----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9% (0.5% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,490,108
1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,092,021
2,000 New Mexico Finance Authority, Public Project Revolving Fund 6/15 at 100.00 Aaa 2,086,760
Revenue Bonds, Series 2005E, 5.000%, 6/15/25 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
4,465 Total New Mexico 4,668,889
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.7% (8.2% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,253
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
Dormitory Authority of the State of New York, Insured
Revenue Bonds, New Island Hospital, Series 1999B:
3,400 5.750%, 7/01/19 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 3,561,228
5,750 6.000%, 7/01/24 (Pre-refunded 7/01/09) - MBIA Insured 7/09 at 101.00 AAA 6,045,723
1,785 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,856,132
Mental Health Services Facilities Improvements, Series 2005A,
5.000%, 2/15/24 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,046,670
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
120 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 103,720
Bonds, Driver Trust 1649, 2006, 6.058%, 2/15/47 - MBIA
Insured (IF)
3,705 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 3,537,423
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
2,700 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AAA 2,520,963
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured
(UB)
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 2006A:
10,675 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 11,257,215
5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 5,247,000
1,755 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,857,036
Bonds, Series 2000E, 6.000%, 3/01/16 (Pre-refunded 3/01/10) -
FSA Insured
7,500 Nassau Health Care Corporation, New York, County Guaranteed 8/09 at 102.00 AAA 7,939,950
Revenue Bonds, Series 1999, 5.750%, 8/01/29 (Pre-refunded
8/01/09) - FSA Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 5,295,750
Series 2004E, 5.000%, 11/01/21 - FSA Insured
6,160 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 6,302,727
Unit Fee Revenue Bonds, Series 2005, 5.000%, 11/15/44 - AMBAC
Insured (UB)
8,495 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 8,590,824
Refunding Bonds, Housing Project, Series 1996A, 6.125%,
11/01/20 - FSA Insured
3,770 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,944,363
Series 2005G, 5.000%, 1/01/25 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
67,935 Total New York 70,273,977
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.8% (1.1% OF TOTAL INVESTMENTS)
1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 Aaa 1,299,725
Series 2005, 5.000%, 7/15/30 - MBIA Insured
|
54
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA (CONTINUED)
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
$ 2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 AAA $ 2,320,831
2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 AAA 2,432,883
2,900 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,037,489
Revenue Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
8,710 Total North Carolina 9,090,928
-----------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.8% (2.3% OF TOTAL INVESTMENTS)
10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 11,228,141
Obligated Group, Series 2000A, 5.600%, 6/01/21 - FSA Insured
8,000 North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 12/10 at 100.00 AAA 8,256,240
5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
18,715 Total North Dakota 19,484,381
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.9% (1.2% OF TOTAL INVESTMENTS)
1,430 Cincinnati City School District, Hamilton County, Ohio, No Opt. Call AAA 1,595,608
General Obligation Bonds, Series 2006, 5.250%, 12/01/22 -
FGIC Insured
8,100 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Series 12/16 at 100.00 Aaa 7,589,943
2006, 4.250%, 12/01/32 - AMBAC Insured (UB)
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 743,701
5.250%, 12/01/26 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,230 Total Ohio 9,929,252
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.4% (0.8% OF TOTAL INVESTMENTS)
1,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 1,571,370
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
Oklahoma City Airport Trust, Oklahoma, Junior Lien Tax Exempt
Bonds, Twenty Seventh Series 2000A:
1,320 5.125%, 7/01/20 (Pre-refunded 7/01/10) - FSA Insured 7/10 at 100.00 AAA 1,377,354
4,040 5.250%, 7/01/21 (Pre-refunded 7/01/10) - FSA Insured 7/10 at 100.00 AAA 4,228,264
-----------------------------------------------------------------------------------------------------------------------------------
6,860 Total Oklahoma 7,176,988
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.6% (2.1% OF TOTAL INVESTMENTS)
2,110 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,177,204
Participation, Series 2005A, 5.000%, 5/01/30 - FSA Insured
1,520 Portland Housing Authority, Oregon, Multifamily Housing 7/10 at 100.00 Aaa 1,556,434
Revenue Bonds, Lovejoy Station Apartments, Series 2000,
6.000%, 7/01/33 - MBIA Insured (Alternative Minimum Tax)
Portland, Oregon, Airport Way Urban Renewal and Redevelopment
Bonds, Series 2000A:
4,405 5.700%, 6/15/17 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,694,409
3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 3,910,335
4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,550,499
1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,467,043
-----------------------------------------------------------------------------------------------------------------------------------
17,340 Total Oregon 18,355,924
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 12.4% (7.4% OF TOTAL INVESTMENTS)
12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 13,946,739
Pennsylvania, Insured Revenue Bonds, West Penn Allegheny
Health System, Series 2000A, 6.500%, 11/15/30 (Pre-refunded
11/15/10) - MBIA Insured
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,100,940
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - MBIA Insured
9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 10,130,549
Revenue Bonds, Reading Hospital and Medical Center, Series
1999, 6.000%, 11/01/19 (Pre-refunded 11/01/09) - FSA Insured
725 Central Dauphin School District, Dauphin County, 2/16 at 100.00 AAA 876,627
Pennsylvania, General Obligation Bonds, Series 2006, 6.750%,
2/01/24 (Pre-refunded 2/01/16) - MBIA Insured
|
55
| Nuveen Insured Premium Income Municipal Fund 2 (continued)
NPX | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
$ 4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, 8/16 at 100.00 AAA $ 4,456,914
Villanova University, Series 2006, 5.000%, 8/01/24 - AMBAC
Insured
5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 6,008,888
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
MBIA Insured
4,585 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,481,425
Bonds, School District of Philadelphia, Series 2006B, 4.500%,
6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 1,100,337
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds,
General Ordinance, Fifth Series 2004A-1:
5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,426,130
3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,104,160
2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue 2/08 at 102.00 AAA 2,383,836
Bonds, Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
3,785 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 3,964,977
Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA Insured
1,705 Solebury Township, Pennsylvania, General Obligation Bonds, 6/15 at 100.00 Aaa 1,781,231
Series 2005, 5.000%, 12/15/25 - AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,912,946
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/29 (Pre-refunded 6/01/13) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
60,215 Total Pennsylvania 63,675,699
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,647,450
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,955 Greenville County School District, South Carolina, 12/16 at 100.00 AAA 2,023,464
Installment Purchase Revenue Bonds, Series 2006, 5.000%,
12/01/28 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.6% (9.9% OF TOTAL INVESTMENTS)
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries Inc., Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,256,000
9,000 5.125%, 11/01/20 - AMBAC Insured Corpus Christi, Texas, 11/08 at 102.00 AAA 9,279,810
Utility System Revenue Bonds, Series 2004:
3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,620,325
3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,788,795
3,335 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, 10/17 at 100.00 AAA 2,924,095
Series 2007, Municipal Securities Trust Certificates Series
7053, 5.789%, 10/01/32 - AMBAC Insured (IF)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,797,750
Refunding and Improvement Bonds, Series 2001A, 5.500%,
11/01/35 - FGIC Insured (Alternative Minimum Tax)
5,000 Harris County Hospital District, Texas, Revenue Bonds, Series 2/17 at 100.00 AAA 5,191,350
2007A, 5.250%, 2/15/42 - MBIA Insured
4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA 4,691,175
Refunding Bonds, Transmission Services Corporation, Series
2003B, 5.000%, 5/15/21 - FSA Insured
10,000 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 10,228,300
Refunding Bonds, Transmission Services Corporation, Series
2003C, 5.000%, 5/15/33 - AMBAC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, GNMA 7/12 at 105.00 Aaa 4,457,427
Collateralized Multifamily Housing Mortgage Revenue Bonds,
Renaissance of Amarillo Apartments, Series 2001A, 6.650%,
7/20/42
|
56
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
Tarrant County Health Facilities Development Corporation,
Texas, Hospital Revenue Bonds, Cook Children's Healthcare
System, Series 2000A:
$ 6,725 5.750%, 12/01/17 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA $ 7,233,007
1,170 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 Aaa 1,258,382
6,330 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 6,808,168
2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,400,234
Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
82,116 Total Texas 84,934,818
-----------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.2% (1.3% OF TOTAL INVESTMENTS)
8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,056,230
Refunding Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured
2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 AAA 2,449,371
Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,985 Total Utah 11,505,601
-----------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,411,463
Revenue Bonds, Fletcher Allen Health Care Inc., Series 2000A,
6.000%, 12/01/23 - AMBAC Insured
VIRGINIA - 3.0% (1.8% OF TOTAL INVESTMENTS)
Greater Richmond Convention Center Authority, Virginia, Hotel
Tax Revenue Bonds, Series 2005:
5,880 5.000%, 6/15/20 - MBIA Insured 6/15 at 100.00 AAA 6,201,518
5,000 5.000%, 6/15/22 - MBIA Insured Loudoun County Industrial 6/15 at 100.00 AAA 5,243,400
Development Authority, Virginia, Lease Revenue Bonds, Public
Safety Facilities, Series 2003A:
1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,235,618
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 537,225
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,298,623
Bonds, Series 1997B, 6.050%, 5/01/17 - MBIA Insured
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
14,780 Total Virginia 15,516,384
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.0% (4.2% OF TOTAL INVESTMENTS)
10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 10,534,800
Consolidated System Revenue Bonds, Series 2001B, 5.600%,
1/01/36 - MBIA Insured (Alternative Minimum Tax)
1,370 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aaa 1,431,773
General Obligation Bonds, Series 2002, 5.000%, 12/01/22 - FSA
Insured
5,230 Douglas County Public Utility District 1, Washington, Revenue 9/09 at 102.00 AAA 5,521,050
Bonds, Wells Hydroelectric, Series 1999A, 6.125%, 9/01/29 -
MBIA Insured (Alternative Minimum Tax)
1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 12/14 at 100.00 AAA 1,628,229
5.000%, 12/01/19 - MBIA Insured
3,950 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,033,424
Bonds, Swedish Health Services, Series 1998, 5.125%, 11/15/22
- AMBAC Insured
6,200 Washington State, General Obligation Purpose Bonds, Series 7/12 at 100.00 AAA 6,497,538
2003A, 5.000%, 7/01/20 - FGIC Insured
10,855 Washington, General Obligation Bonds, Series 2000S-5, 0.000%, No Opt. Call AAA 6,369,499
1/01/20 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
39,150 Total Washington 36,016,313
-----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
8,000 Pleasants County, West Virginia, Pollution Control Revenue 11/07 at 100.00 AAA 8,252,962
Bonds, Monongahela Power Company Pleasants Station Project,
Series 1995C, 6.150%, 5/01/15 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
|
57
| Nuveen Insured Premium Income Municipal Fund 2 (continued)
NPX | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.3% (3.7% OF TOTAL INVESTMENTS)
$ 7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA $ 8,101,732
Bonds, Northern States Power Company Project, Series 1996,
6.000%, 11/01/21 - MBIA Insured (Alternative Minimum Tax)
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 12/10 at 100.00 Aaa 13,306,028
2000A, 5.750%, 12/01/25 - FGIC Insured (Alternative Minimum
Tax)
6,250 Wisconsin Health and Educational Facilities Authority, 2/08 at 101.00 AAA 6,322,940
Revenue Bonds, Sinai Samaritan Medical Center Inc., Series
1996, 5.750%, 8/15/16 - MBIA Insured
4,225 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AAA 4,330,416
4.750%, 5/01/25 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
30,225 Total Wisconsin 32,061,116
-----------------------------------------------------------------------------------------------------------------------------------
$ 926,351 Total Long-Term Investments (cost $838,774,987) - 167.8% 860,946,339
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.2% (0.1% OF TOTAL INVESTMENTS)
250 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 250,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 3.600%, 7/01/35 - FSA Insured (4)
850 Puerto Rico Government Development Bank, Adjustable Refunding VMIG-1 850,000
Bonds, Variable Rate Demand Obligations, Series 1985, 3.200%,
12/01/15 - MBIA Insured (4)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,100 Total Short-Term Investments (cost $1,100,000) 1,100,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $839,874,987) - 168.0% 862,046,339
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (17.9)% (92,040,000)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.3% 11,914,470
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.4)% (268,900,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 513,020,809
===================================================================================================================
|
FORWARD SWAP OUTSTANDING AT OCTOBER 31, 2007:
FUND FIXED RATE UNREALIZED
NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION
COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION)
-----------------------------------------------------------------------------------------------------------------------------------
Citigroup Inc. $10,000,000 Receive 3-Month USD-LIBOR 5.235% Semi-Annually 12/12/07 12/12/36 $165,919
====================================================================================================================================
|
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
All of the bonds in the Portfolio of Investments, excluding temporary
investments in short-term municipal securities, are either covered by
Original Issue Insurance, Secondary Market Insurance or Portfolio
Insurance, or are backed by an escrow or trust containing sufficient U.S.
Government or U.S. Government agency securities, any of which ensure the
timely payment of principal and interest.
The Fund may 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(5) Effective date represents the date on which both the Fund and counterparty
commence interest payment accruals on each forward swap contract.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
58
| Nuveen Insured Dividend Advantage Municipal Fund
NVG | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.8% OF TOTAL INVESTMENTS)
$ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, 5/12 at 101.00 AAA $ 5,607,838
Series 2002, 5.300%, 5/01/32 - MBIA Insured
3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 3/12 at 101.00 AAA 3,197,372
5.000%, 3/01/20 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 10,331,900
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded 2/01/09) - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,355 Total Alabama 19,137,110
-----------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.6% (2.3% OF TOTAL INVESTMENTS)
15,000 Alaska, International Airport System Revenue Bonds, Series 10/12 at 100.00 AAA 16,158,300
2002B, 5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.3% (1.5% OF TOTAL INVESTMENTS)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/12 at 100.00 Aaa 5,101,100
Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
6,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AAA 5,075,640
Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
11,000 Total Arizona 10,176,740
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.6% (9.4% OF TOTAL INVESTMENTS)
2,000 Alameda Corridor Transportation Authority, California, No Opt. Call AAA 1,141,380
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
California Educational Facilities
Authority, Revenue Bonds, Occidental College, Series 2005A:
1,485 5.000%, 10/01/26 - MBIA Insured 10/15 at 100.00 Aaa 1,555,597
1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,636,192
6,000 California Infrastructure Economic Development Bank, First 1/28 at 100.00 AAA 6,540,960
Lien Revenue Bonds, San Francisco Bay Area Toll Bridge,
Series 2003A, 5.000%, 7/01/33 (Pre-refunded 1/01/28) -
AMBAC Insured (UB)
California, General Obligation Bonds, Series 2000:
375 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 393,964
190 5.250%, 9/01/17 (Pre-refunded 9/01/10) - MBIA Insured 9/10 at 100.00 AAA 199,608
10,000 California, General Obligation Refunding Bonds, Series 2/12 at 100.00 AAA 10,390,600
2002, 5.000%, 2/01/23 - MBIA Insured
8,890 California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AA- 9,111,272
Series 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,000 California, General Obligation Veterans Welfare Bonds, 12/07 at 101.00 AAA 3,010,710
Series 2001BZ, 5.375%, 12/01/24 - MBIA Insured (Alternative
Minimum Tax)
2,425 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 AAA 2,509,827
Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 -
AMBAC Insured
Golden State Tobacco Securitization
Corporation, California, Enhanced Tobacco Settlement
Asset-Backed Bonds, Series 2007A-1:
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 960,100
365 5.125%, 6/01/47 6/17 at 100.00 BBB 321,083
1,990 Kern Community College District, California, General No Opt. Call AAA 868,297
Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA
Insured
|
59
| Nuveen Insured Dividend Advantage Municipal Fund (continued)
NVG | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 625 Los Angeles Department of Water and Power, California, 7/16 at 100.00 AAA $ 647,863
Waterworks Revenue Bonds, Series 2006A-1, 5.000%, 7/01/36 -
AMBAC Insured
7,935 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 8,179,636
Series 2002, 5.300%, 4/01/32 - AMBAC Insured
7,500 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 7,634,550
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 -
MBIA Insured
2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,443,818
Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
6,720 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 AAA 6,235,085
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - MBIA Insured (UB)
1,690 Ventura County Community College District, California, 8/15 at 100.00 AAA 1,762,062
General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
66,075 Total California 65,542,604
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.8% (3.8% OF TOTAL INVESTMENTS)
17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, 8/15 at 100.00 AAA 17,980,063
Platte Valley Medical Center, Series 2005, 5.000%, 8/01/24
- MBIA Insured
750 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 AAA 790,628
Bonds, Series 2006, 5.250%, 10/01/32 - XLCA Insured
17,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 7,424,240
Bonds, Series 2000B, 0.000%, 9/01/25 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
35,050 Total Colorado 26,194,931
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
6,805 District of Columbia, Revenue Bonds, Georgetown University, 4/17 at 100.00 AAA 6,501,157
Series 2007A, 4.500%, 4/01/42 - AMBAC Insured
935 Washington Convention Center Authority, District of 10/16 at 100.00 AAA 862,472
Columbia, Senior Lien Dedicated Tax Revenue Bonds, Series
2007, Residuals 1606, 6.094%, 10/01/30 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
7,740 Total District of Columbia 7,363,629
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 11.7% (7.6% OF TOTAL INVESTMENTS)
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,479,742
1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,584,325
11,600 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 12,004,028
Facilities Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 Aaa 8,639,815
Bonds, Series 2001, 5.625%, 10/01/13 - MBIA Insured
(Alternative Minimum Tax)
Miami-Dade County, Florida, Aviation Revenue Bonds,
Miami International Airport, Series 2002:
7,165 5.625%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 7,732,826
5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 6,019,048
10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 10,263,700
2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 AAA 2,059,200
1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 994,210
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42
1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AAA 1,033,960
2005, 5.000%, 10/01/28 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
50,305 Total Florida 52,810,854
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2% (1.4% OF TOTAL INVESTMENTS)
6,925 Atlanta and Fulton County Recreation Authority, Georgia, 12/15 at 100.00 AAA 7,202,416
Guaranteed Revenue Bonds, Park Improvement, Series 2005A,
5.000%, 12/01/30 - MBIA Insured
|
60
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA (CONTINUED)
$ 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA $ 1,044,080
Series 2004, 5.000%, 11/01/22 - FSA Insured
1,695 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 1,718,069
Mortgage Bonds, Series 2002B-2, 5.500%, 6/01/32
(Alternative Minimum Tax)
-----------------------------------------------------------------------------------------------------------------------------------
9,620 Total Georgia 9,964,565
-----------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.0% (0.6% OF TOTAL INVESTMENTS)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series
2006:
3,000 5.000%, 7/15/23 - MBIA Insured 7/16 at 100.00 Aaa 3,161,010
1,130 5.000%, 7/15/24 - MBIA Insured 7/16 at 100.00 Aaa 1,188,963
-----------------------------------------------------------------------------------------------------------------------------------
4,130 Total Idaho 4,349,973
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 13.1% (8.5% OF TOTAL INVESTMENTS)
10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 1/12 at 100.00 AAA 10,710,600
2002A, 5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured
1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AAA 1,373,317
5.500%, 1/01/38 - MBIA Insured
Chicago, Illinois, General Obligation Bonds, Series 2001A:
50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 53,426
3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 3,894,755
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Bonds, O'Hare International Airport, Series 2001C:
4,250 5.500%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,464,073
4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,697,275
4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 4,946,729
2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 AAA 3,060,678
3,600 Chicago, Illinois, Third Lien General Airport Revenue 1/16 at 100.00 AAA 3,826,836
Bonds, O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - MBIA Insured
3,000 Chicago, Illinois, Third Lien General Airport Revenue 1/12 at 100.00 AAA 3,179,970
Refunding Bonds, O'Hare International Airport, Series
2002A, 5.750%, 1/01/17 - MBIA Insured (Alternative Minimum
Tax)
4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 AAA 4,198,120
Purpose Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured
730 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aaa 778,224
Illinois, General Obligation Bonds, Series 2003C, 5.250%,
10/01/22 - FSA Insured
770 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aaa 838,638
Illinois, General Obligation Bonds, Series 2003C, 5.250%,
10/01/22 (Pre-refunded 10/01/13) - FSA Insured
3,500 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 AAA 3,613,575
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
4,000 Illinois Toll Highway Authority, State Toll Highway 7/16 at 100.00 AAA 4,187,280
Authority Revenue Bonds, Series 2006, 5.000%, 1/01/26 - FSA
Insured
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 5,265,050
Series 2002, 5.250%, 4/01/23 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
55,995 Total Illinois 59,088,546
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 16.5% (10.7% OF TOTAL INVESTMENTS)
3,380 Evansville, Indiana, Sewerage Works Revenue Refunding 7/13 at 100.00 AAA 3,552,312
Bonds, Series 2003A, 5.000%, 7/01/20 - AMBAC Insured
Indiana Bond Bank, Special Program Bonds, Hendricks County
Redevelopment District, Series 2002D:
2,500 5.375%, 4/01/23 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,685,450
7,075 5.250%, 4/01/26 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,563,953
7,000 5.250%, 4/01/30 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 7,483,770
|
61
| Nuveen Insured Dividend Advantage Municipal Fund (continued)
NVG | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA (CONTINUED)
$ 10,000 Indiana Health Facility Financing Authority, Hospital 7/12 at 100.00 AAA $ 10,280,100
Revenue Bonds, Marion General Hospital, Series 2002,
5.250%, 7/01/32 - AMBAC Insured
3,200 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 3,279,008
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,839,497
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - MBIA Insured
Northern Wells Community School Building Corporation,
Wells County, Indiana, First Mortgage Bonds, Series 2001:
420 5.250%, 1/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 451,139
430 5.250%, 7/15/19 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 461,880
1,675 5.400%, 7/15/23 (Pre-refunded 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 1,809,988
6,960 Valparaiso Middle School Building Corporation, Indiana, 1/13 at 100.00 AAA 7,230,326
First Mortgage Refunding Bonds, Series 2002, 5.000%,
7/15/24 - MBIA Insured
2,490 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 AAA 2,617,712
City, Indiana, First Mortgage Bonds, Series 2003, 5.000%,
1/15/18 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
70,130 Total Indiana 74,255,135
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.7% (2.4% OF TOTAL INVESTMENTS)
3,280 Louisiana Public Facilities Authority, Revenue Bonds, 7/17 at 100.00 AAA 3,071,900
Archdiocese of New Orleans, Series 2007, Drivers 1755,
6.246%, 7/01/37 - CIFG Insured (IF)
1,500 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 1,571,565
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - MBIA
Insured
Louisiana State, Gasoline and Fuels Tax
Revenue Bonds, Series 2006:
770 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 771,340
8,270 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AAA 7,945,155
3 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AAA 2,940
Residuals 660-3, 5.939%, 5/01/41 - FGIC Insured (IF)
3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, 9/12 at 100.00 AAA 3,205,346
Series 2002, 5.125%, 9/01/21 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
16,908 Total Louisiana 16,568,246
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.2% (0.7% OF TOTAL INVESTMENTS)
2,630 Massachusetts College Building Authority, Project Revenue 5/16 at 100.00 AAA 2,734,280
Bonds, Series 2006A, 5.000%, 5/01/31 - AMBAC Insured
1,550 Massachusetts Water Resources Authority, General Revenue 8/17 at 100.00 AAA 1,673,210
Bonds, Series 2005A, 5.250%, 8/01/26 - MBIA Insured
925 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 790,690
Bonds, Series 2007, Residual Trust 7039, 6.272%, 8/01/46 -
FSA Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
5,105 Total Massachusetts 5,198,180
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 Aa2 1,520,160
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,600 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,713,600
General Obligation Bonds, Series 2004, 5.250%, 3/01/19 -
FSA Insured
8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 9,257,877
Development Program, Series 2001A, 5.250%, 7/01/31
(Pre-refunded 7/01/11) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
10,335 Total Missouri 10,971,477
-----------------------------------------------------------------------------------------------------------------------------------
|
62
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
$ 6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/15 at 100.00 AA $ 6,557,033
2005, 5.000%, 9/01/32 Municipal Energy Agency of Nebraska,
Power Supply System Revenue Bonds, Series 2003A:
1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,065,560
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,062,300
-----------------------------------------------------------------------------------------------------------------------------------
8,360 Total Nebraska 8,684,893
-----------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.1% (1.3% OF TOTAL INVESTMENTS)
8,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,273,775
Bonds, Series 2001A, 5.250%, 7/01/34 (Pre-refunded 7/01/11)
- FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,150 New Jersey Transportation Trust Fund Authority, No Opt. Call AA- 2,370,139
Transportation System Bonds, Series 2006A, 5.250%, 12/15/20
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 4.9% (3.2% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,253
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
3,660 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 3,815,147
Bonds, Mental Health Services Facilities Improvements,
Series 2005B, 5.000%, 2/15/23 - AMBAC Insured
3,130 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 2,988,430
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
2,400 Long Island Power Authority, New York, Electric System 11/16 at 100.00 AAA 2,240,856
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - MBIA Insured (UB)
1,500 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 1,559,835
Transportation Revenue Bonds, Series 2005B, 5.000%,
11/15/30 - AMBAC Insured
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,266,100
Transportation Revenue Refunding Bonds, Series 2002A,
5.000%, 11/15/30 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
21,810 Total New York 22,037,621
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,125 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA 2,272,900
Mortgage Revenue Bonds, Betsy Johnson Regional Hospital
Project, Series 2003, 5.375%, 10/01/24 - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.7% (0.4% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio,
Tobacco Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
70 5.125%, 6/01/24 6/17 at 100.00 BBB 67,571
710 5.875%, 6/01/30 6/17 at 100.00 BBB 701,217
685 5.750%, 6/01/34 6/17 at 100.00 BBB 661,025
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,524,203
-----------------------------------------------------------------------------------------------------------------------------------
3,035 Total Ohio 2,954,016
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 Oklahoma Development Finance Authority, Revenue Bonds, 2/17 at 100.00 AA- 2,010,920
Saint John Health System, Series 2007, 5.000%, 2/15/37
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.5% (1.0% OF TOTAL INVESTMENTS)
Oregon, General Obligation Veterans Welfare Bonds, Series 82:
4,530 5.375%, 12/01/31 12/11 at 100.00 AA 4,628,709
2,115 5.500%, 12/01/42 12/11 at 100.00 AA 2,160,176
-----------------------------------------------------------------------------------------------------------------------------------
6,645 Total Oregon 6,788,885
-----------------------------------------------------------------------------------------------------------------------------------
|
63
| Nuveen Insured Dividend Advantage Municipal Fund (continued)
NVG | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.4% (2.2% OF TOTAL INVESTMENTS)
$ 4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA $ 4,883,715
Bonds, Pittsburgh International Airport, Series 1997A,
5.750%, 1/01/13 - MBIA Insured (Alternative Minimum Tax)
4,130 Pennsylvania Public School Building Authority, Lease 12/16 at 100.00 AAA 4,036,704
Revenue Bonds, School District of Philadelphia, Series
2006B, 4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 AAA 1,100,337
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
2,000 Philadelphia Municipal Authority, Pennsylvania, Lease 11/13 at 100.00 AAA 2,142,320
Revenue Bonds, Series 2003B, 5.250%, 11/15/18 - FSA Insured
2,000 Reading School District, Berks County, Pennsylvania, 1/16 at 100.00 AAA 2,127,820
General Obligation Bonds, Series 2005, 5.000%, 1/15/19 -
FSA Insured
1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,072,040
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/23 (Pre-refunded 6/01/13) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
14,680 Total Pennsylvania 15,362,936
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call AAA 1,365,716
8/01/21 - CIFG Insured
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.5% (0.9% OF TOTAL INVESTMENTS)
1,950 Greenville County School District, South Carolina, 12/16 at 100.00 AAA 2,018,289
Installment Purchase Revenue Bonds, Series 2006, 5.000%,
12/01/28 - FSA Insured
Greenville, South Carolina, Tax Increment Revenue Improvement
Bonds, Series 2003:
1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,087,590
2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,417,231
1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,048,910
Installment Purchase Revenue Bonds, Spartanburg County
School District 5, Series 2005, 5.000%, 4/01/21 - FSA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
6,250 Total South Carolina 6,572,020
-----------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 9.5% (6.2% OF TOTAL INVESTMENTS)
Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds,
Series 2004:
1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,584,969
1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,542,024
1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,063,815
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,727,600
Bonds, Memphis Arena, Series 2002A, 5.125%, 11/01/28
(Pre-refunded 11/01/12) - AMBAC Insured
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,727,600
Bonds, Memphis Arena, Series 2002B, 5.125%, 11/01/29
(Pre-refunded 11/01/12) - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 16,276,884
Facilities Second Program Bonds, Series 2002A, 5.250%,
5/01/32 (Pre-refunded 5/01/12) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
40,100 Total Tennessee 42,922,892
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 27.0% (17.5% OF TOTAL INVESTMENTS)
3,500 Dallas-Ft. Worth International Airport, Texas, Joint 11/11 at 100.00 AAA 3,744,370
Revenue Refunding and Improvement Bonds, Series 2001A,
5.750%, 11/01/13 - FGIC Insured (Alternative Minimum Tax)
10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 Aaa 10,278,200
Obligation Bonds, Series 2002, 5.375%, 8/15/32 - MBIA
Insured
1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5/11 at 100.00 AAA 1,260,953
5.250%, 5/01/21 - AMBAC Insured
2,435 Galveston, Texas, General Obligation Bonds, Series 2001, 5/11 at 100.00 AAA 2,574,647
5.250%, 5/01/21 (Pre-refunded 5/01/11) - AMBAC Insured
Harris County Health Facilities Development Corporation,
Texas, Thermal Utility Revenue Bonds, TECO Project, Series
2003:
2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA 2,355,158
2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,464,131
|
64
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS (CONTINUED)
$ 13,000 Houston Area Water Corporation, Texas, Contract Revenue 3/12 at 100.00 AAA 13,828,490
Bonds, Northeast Water Purification Plant, Series 2002,
5.125%, 3/01/32 (Pre-refunded 3/01/12) - FGIC Insured
1,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 1,063,880
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,345 San Antonio, Texas, Water System Senior Lien Revenue 5/12 at 100.00 AAA 4,653,973
Refunding Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured
5,930 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 6,130,019
Residential Mortgage Revenue Bonds, Series 2001A, 5.350%,
7/01/33 (Alternative Minimum Tax)
8,545 Texas Department of Housing and Community Affairs, Single 3/12 at 100.00 AAA 8,690,521
Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - MBIA
Insured (Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Bonds, Texas Southern
University Financing System, Series 2002:
3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,703,075
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,703,075
Texas Student Housing Authority, Revenue Bonds, Austin
Project, Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,033,184
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,504,297
5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA 5,169,900
Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17
9,145 Texas, General Obligation Bonds, Veterans Housing 6/12 at 100.00 Aa1 9,410,571
Assistance Program Fund II, Series 2002A-1, 5.250%,
12/01/22 (Alternative Minimum Tax)
Williamson County, Texas, General Obligation Bonds, Series 2002:
3,500 5.200%, 2/15/21 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,731,280
3,000 5.250%, 2/15/22 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,204,150
7,340 5.250%, 2/15/23 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 7,839,487
5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,340,250
-----------------------------------------------------------------------------------------------------------------------------------
115,650 Total Texas 121,683,611
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.6% (8.2% OF TOTAL INVESTMENTS)
5,385 Energy Northwest, Washington Public Power, Nine Canyon Wind 7/16 at 100.00 AAA 5,253,821
Project Revenue Bonds, Series 2006A, 4.500%, 7/01/30 -
AMBAC Insured
6,600 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 7,023,192
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
7,675 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,231,131
Bonds, Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 -
MBIA Insured
2,500 Port of Seattle, Washington, Revenue Refunding Bonds, 11/12 at 100.00 AAA 2,682,800
Series 2002D, 5.750%, 11/01/15 - FGIC Insured (Alternative
Minimum Tax)
2,200 Snohomish County School District 2, Everett, Washington, 12/13 at 100.00 AAA 2,335,982
General Obligation Bonds, Series 2003B, 5.000%, 6/01/17 -
FSA Insured
3,255 Thurston and Pierce Counties School District, Washington, 6/13 at 100.00 Aaa 3,502,185
General Obligation Bonds, Yelm Community Schools, Series
2003, 5.250%, 12/01/16 - FSA Insured
Washington State Economic Development Finance Authority,
Wastewater Revenue Bonds, LOTT Project, Series 2002:
2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,144,320
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,534,157
15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 15,492,150
Bonds, Harrison Memorial Hospital, Series 1998, 5.000%,
8/15/28 - AMBAC Insured
5,170 Whitman County School District 267, Pullman, Washington, 6/12 at 100.00 Aaa 5,414,128
General Obligation Bonds, Series 2002, 5.000%, 12/01/20 -
FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
54,110 Total Washington 56,613,866
-----------------------------------------------------------------------------------------------------------------------------------
|
65
| Nuveen Insured Dividend Advantage Municipal Fund (continued)
NVG | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.8% (1.8% OF TOTAL INVESTMENTS)
$ 11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 7/12 at 100.00 AAA $ 12,765,588
2002-1, 5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC
Insured
-----------------------------------------------------------------------------------------------------------------------------------
$ 676,088 Total Long-Term Investments (cost $662,479,787) - 154.0% 692,980,228
-----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.4% (0.2% OF TOTAL INVESTMENTS)
600 Orange County School Board, Florida, Certificates of VMIG-1 600,000
Participation, Variable Rate Demand Obligations, Series
2007C, 3.540%, 8/01/22 - MBIA Insured (4)
1,000 Puerto Rico Government Development Bank, Adjustable VMIG-1 1,000,000
Refunding Bonds, Variable Rate Demand Obligations, Series
1985, 3.200%, 12/01/15 - MBIA Insured (4)
-----------------------------------------------------------------------------------------------------------------------------------
$ 1,600 Total Short-Term Investments (cost $1,600,000) 1,600,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (cost $664,079,787) - 154.4% 694,580,228
-------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.7)% (20,938,334)
-------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.1% 9,340,190
-------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (233,000,000)
-------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 449,982,084
===================================================================================================================
|
At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are either
covered by Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance which ensures the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in municipal securities
that are (i) either backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities (also ensuring the
timely payment of principal and interest), or (ii) rated, at the time of
investment, within the four highest grades (Baa or BBB or better by
Moody's, Standard & Poor's or Fitch) or unrated but judged to be of
comparable quality by the Adviser.
The Fund may 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140.
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
66
| Nuveen Insured Tax-Free Advantage Municipal Fund
NEA | Portfolio of INVESTMENTS
October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 8.6% (5.7% OF TOTAL INVESTMENTS)
$ 1,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA $ 1,005,400
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 5,789,872
Revenue Bonds, Helen Keller Hospital, Series 2003, 5.750%,
6/01/27
3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,387,711
Series 1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) - MBIA
Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,681,543
Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded
8/01/12) - FGIC Insured
1,750 Montgomery, Alabama, General Obligation Warrants, Series 5/12 at 101.00 AAA 1,840,125
2003, 5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 7/13 at 100.00 Aaa 4,799,025
5.500%, 7/01/29 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
22,285 Total Alabama 23,503,676
-----------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 5.8% (3.8% OF TOTAL INVESTMENTS)
10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 AAA 10,320,100
Revenue Bonds, Arizona Public Service Company - Palo Verde
Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
6,545 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AAA 5,536,677
Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
16,545 Total Arizona 15,856,777
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 26.9% (17.8% OF TOTAL INVESTMENTS)
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 27,376,458
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
250 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 262,528
5.250%, 4/01/30 - XLCA Insured
10,000 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 Aaa 10,737,600
5.250%, 4/01/30 (Pre-refunded 4/01/12) - XLCA Insured
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 5,136
5.000%, 4/01/31 - AMBAC Insured
7,495 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 Aaa 8,138,146
5.000%, 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 3,036,032
Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%,
8/01/26 - MBIA Insured
250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 219,920
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
2,500 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 AAA 2,579,400
California, Assessment Revenue Bonds, Series 2003C, 5.000%,
9/02/23 - AMBAC Insured
4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 AAA 4,123,560
Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured
Plumas County, California, Certificates of Participation, Capital
Improvement Program, Series 2003A:
1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,203,529
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,330,852
1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 AAA 1,258,122
Revenue Bonds, Capital Improvement Projects, Series 2003A,
5.000%, 3/01/23 - AMBAC Insured
|
67
| Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
NEA | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (CONTINUED)
$ 3,750 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA $ 3,874,275
Revenue Bonds, Series 2003R, 5.000%, 8/15/28 - MBIA Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,552,275
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA Insured
1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,078,769
Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured
6,300 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,490,449
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
69,910 Total California 73,267,051
-----------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.0% (2.7% OF TOTAL INVESTMENTS)
Bowles Metropolitan District, Colorado, General Obligation
Bonds, Series 2003:
4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA 4,659,566
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 4,038,375
1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 1,529,823
Charter School Revenue Bonds, Peak-to-Peak Charter School,
Series 2004, 5.250%, 8/15/24 - XLCA Insured
2,900 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 791,149
Series 2004A, 0.000%, 9/01/34 (WI/DD, Settling 11/08/07) -
MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
12,400 Total Colorado 11,018,913
-----------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.3% (0.1% OF TOTAL INVESTMENTS)
665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 613,416
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 6.094%, 10/01/30 - AMBAC Insured (IF)
-----------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 Aa3 (4) 3,281,520
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
(Pre-refunded 5/15/13)
-----------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.0% (1.3% OF TOTAL INVESTMENTS)
1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,462,833
2006A, 5.000%, 10/01/35 - FSA Insured
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 4,081,734
Tax Revenue Bonds, Second Indenture Series 2002, 5.000%,
7/01/32 (Pre-refunded 1/01/13) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
5,235 Total Georgia 5,544,567
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.7% (2.5% OF TOTAL INVESTMENTS)
905 Cook County School District 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 987,708
General Obligation Refunding Bonds, Series 2003B, 5.250%,
12/01/21 (Pre-refunded 12/01/13) - FSA Insured
Cook County School District 145, Arbor Park, Illinois, General
Obligation Bonds, Series 2004:
3,285 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aaa 3,472,902
2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,086,089
2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 2,565,675
Forest Hospital, Series 2003, 5.250%, 7/01/23
-----------------------------------------------------------------------------------------------------------------------------------
9,630 Total Illinois 10,112,374
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA - 9.6% (6.3% OF TOTAL INVESTMENTS)
2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,607,475
Series 2003A, 5.000%, 7/01/23 - AMBAC Insured
2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common 8/13 at 100.00 AAA 2,283,644
School Fund, Series 2003B, 5.000%, 8/01/19 - MBIA Insured
1,860 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 AAA 1,905,923
Series 2007A, 5.000%, 1/01/42 - MBIA Insured
1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 1,046,720
5.000%, 8/01/22 - FGIC Insured
|
68
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
INDIANA (CONTINUED)
IPS Multi-School Building Corporation, Indiana, First
Mortgage Revenue Bonds, Series 2003:
$ 11,020 5.000%, 7/15/19 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA $ 11,829,308
6,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - MBIA Insured 7/13 at 100.00 AAA 6,440,640
-----------------------------------------------------------------------------------------------------------------------------------
24,570 Total Indiana 26,113,710
-----------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS)
6,250 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA 6,589,563
Revenue Bonds, Scientific Research and Development Facilities
Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
985 Kentucky State Property and Buildings Commission, Revenue 8/13 at 100.00 AAA 1,057,851
Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23
(Pre-refunded 8/01/13) - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2% (1.5% OF TOTAL INVESTMENTS)
5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 AAA 6,040,234
Series 2002, 5.300%, 12/01/27 - FGIC Insured
-----------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.9% (2.6% OF TOTAL INVESTMENTS)
9,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 9,570,240
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,164,443
Middlesex School, Series 2003, 5.125%, 9/01/23
-----------------------------------------------------------------------------------------------------------------------------------
10,125 Total Massachusetts 10,734,683
-----------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 11.9% (7.9% OF TOTAL INVESTMENTS)
6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 6,570,931
Bonds, Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13) -
MBIA Insured
4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,677,623
Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - MBIA Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 Aa2 1,013,440
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 AAA 11,133,936
Revenue Refunding Bonds, Detroit Edison Company, Series
2002D, 5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA- 2,341,755
Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25
6,500 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 6,667,635
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
31,145 Total Michigan 32,405,320
-----------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.7% OF TOTAL INVESTMENTS)
240 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA 257,040
General Obligation Bonds, Series 2004, 5.250%, 3/01/24 - FSA
Insured
215 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA 230,265
General Obligation Bonds, Series 2004, 5.250%, 3/01/23 - FSA
Insured Clay County Public School District 53, Liberty,
Missouri, General Obligation Bonds, Series 2004:
1,110 5.250%, 3/01/23 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,211,854
1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,375,618
-----------------------------------------------------------------------------------------------------------------------------------
2,825 Total Missouri 3,074,777
-----------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AAA 5,161,300
Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
|
69
| Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
NEA | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 1,975 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 2,089,175
5.000%, 4/01/19 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.8% (7.2% OF TOTAL INVESTMENTS)
20 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 17,287
Bonds, Driver Trust 1649, 2006, 6.058%, 2/15/47 - MBIA
Insured (IF)
1,960 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 1,871,349
Bonds, Series 2006A, 4.500%, 2/15/47 - MBIA Insured (UB)
25,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 25,731,249
Transportation Revenue Refunding Bonds, Series 2002F, 5.000%,
11/15/31 - MBIA Insured
1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,932,769
Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 - FSA
Insured
-----------------------------------------------------------------------------------------------------------------------------------
28,830 Total New York 29,552,654
-----------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.2% (2.1% OF TOTAL INVESTMENTS)
8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria 10/13 at 100.00 AA 8,802,747
Parham Medical Center, Series 2003, 5.375%, 10/01/33 - RAAI
Insured
-----------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.1% (0.7% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
70 5.125%, 6/01/24 6/17 at 100.00 BBB 67,571
710 5.875%, 6/01/30 6/17 at 100.00 BBB 701,217
685 5.750%, 6/01/34 6/17 at 100.00 BBB 661,025
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,524,203
-----------------------------------------------------------------------------------------------------------------------------------
3,035 Total Ohio 2,954,016
-----------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,000 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AAA 1,047,580
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.1% (2.1% OF TOTAL INVESTMENTS)
8,350 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 AAA 8,560,587
2002A, 5.000%, 7/01/32 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.4% (4.9% OF TOTAL INVESTMENTS)
3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 Ba a1 (4) 3,265,230
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13)
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,044,440
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA Insured
925 Philadelphia, Pennsylvania, Water and Wastewater Revenue 2/08 at 102.00 AAA 934,343
Bonds, Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 13,936,519
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
-----------------------------------------------------------------------------------------------------------------------------------
18,925 Total Pennsylvania 20,180,532
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.7% (0.4% OF TOTAL INVESTMENTS)
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AAA 1,735,000
Revenue Bonds, Series 2007A, 0.000%, 8/01/43 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.3% (4.8% OF TOTAL INVESTMENTS)
5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,273,700
McLeod Regional Medical Center, Series 2004A, 5.250%,
11/01/23 - FSA Insured
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 3,095,850
1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,839,157
|
70
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (CONTINUED)
$ 1,365 Myrtle Beach, South Carolina, Water and Sewerage System 3/13 at 100.00 AAA 1,483,960
Revenue Refunding Bonds, Series 2003, 5.375%, 3/01/19
(Pre-refunded 3/01/13) - FGIC Insured
8,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa 8,194,560
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
19,150 Total South Carolina 19,887,227
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.1% (8.6% OF TOTAL INVESTMENTS)
7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,187,215
Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25
12,500 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 13,431,749
Texas, General Obligation Bonds, Series 2003, 5.125%, 2/15/31
(Pre-refunded 2/15/13) - FSA Insured
2,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 2,118,020
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
5,515 Houston, Texas, General Obligation Refunding Bonds, Series 3/12 at 100.00 AAA 5,823,564
2002, 5.250%, 3/01/20 - MBIA Insured
5,850 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 6,136,065
Waller Counties, Texas, General Obligation Bonds, Series
2002A, 5.125%, 2/15/18
-----------------------------------------------------------------------------------------------------------------------------------
33,840 Total Texas 35,696,613
-----------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 AAA 1,546,350
Series 2002, 5.125%, 1/15/28 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.1% (6.0% OF TOTAL INVESTMENTS)
4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,043,653
Revenue Bonds, Washington Project, Series 2002, 5.000%,
12/01/31 - MBIA Insured
5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,373,743
Consolidated System Revenue Bonds, Series 2002C, 5.125%,
7/01/33 - AMBAC Insured
2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 Aaa 2,202,295
Revenue Bonds, Bremerton Government Center, Series 2003,
5.000%, 7/01/23 - MBIA Insured
1,935 Pierce County School District 343, Dieringer, Washington, 6/13 at 100.00 Aaa 2,070,876
General Obligation Refunding Bonds, Series 2003, 5.250%,
12/01/17 - FGIC Insured
9,670 Washington State, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AAA 10,104,957
5.000%, 12/01/21 - MBIA Insured
-----------------------------------------------------------------------------------------------------------------------------------
23,935 Total Washington 24,795,524
-----------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,315,750
Refunding Bonds, Regional Jail and Corrections Facility,
Series 1998A, 5.375%, 7/01/21 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.7% (4.4% OF TOTAL INVESTMENTS)
1,190 Sun Prairie Area School District, Dane County, Wisconsin, 3/14 at 100.00 Aaa 1,285,902
General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 - FSA
Insured
4,605 Wisconsin Health and Educational Facilities Authority, 9/13 at 100.00 BBB+ (4) 5,127,207
Revenue Bonds, Franciscan Sisters of Christian Charity
Healthcare Ministry, Series 2003A, 5.875%, 9/01/33
(Pre-refunded 9/01/13)
3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call Aaa 3,423,840
Revenue Bonds, Meriter Hospital Inc., Series 1992A, 6.000%,
12/01/22 - FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A- 3,445,884
Revenue Bonds, Wheaton Franciscan Services Inc., Series
2003A, 5.125%, 8/15/33
|
71
| Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
NEA | Portfolio of INVESTMENTS October 31, 2007
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
-----------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (CONTINUED)
$ 4,750 Wisconsin Health and Educational Facilities Authority, 8/08 at 102.00 AAA $ 4,884,948
Revenue Refunding Bonds, Wausau Hospital Inc., Series 1998A,
5.125%, 8/15/20 - AMBAC Insured
-----------------------------------------------------------------------------------------------------------------------------------
17,145 Total Wisconsin 18,167,781
-----------------------------------------------------------------------------------------------------------------------------------
$ 405,740 Total Investments (cost $394,860,204) - 151.5% 412,707,268
-----------------------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (0.5)% (1,305,000)
-----------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 4,989,050
-----------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.9)% (144,000,000)
-----------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 272,391,318
=================================================================================================================
|
At least 80% of the Fund's net assets (including net assets attributable
to Preferred shares) are invested in municipal securities that are either
covered by Original Issue Insurance, Secondary Market Insurance or
Portfolio Insurance which ensures the timely payment of principal and
interest. Up to 20% of the Fund's net assets (including net assets
attributable to Preferred shares) may be invested in municipal securities
that are (i) either backed by an escrow or trust containing sufficient
U.S. Government or U.S. Government agency securities (also ensuring the
timely payment of principal and interest), or (ii) rated, at the time of
investment, within the four highest grades (Baa or BBB or better by
Moody's, Standard & Poor's or Fitch) or unrated but judged to be of
comparable quality by the Adviser.
The Fund may 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. Such securities are included in the
Portfolio of Investments with a 0.000% coupon rate in their description.
The market prices of zero coupon securities generally are more volatile
than the market prices of securities that pay interest periodically.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to peri- odic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction pursuant to the provisions of SFAS No. 140. SEE ACCOMPANYING
NOTES TO FINANCIAL STATEMENTS.
72
|
| Statement of
| ASSETS & LIABILITIES
October 31, 2007
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $893,218,583,
$1,862,743,204, $434,330,405,
$839,874,987, $664,079,787 and
$394,860,204, respectively) $ 928,818,910 $1,952,688,115 $ 455,462,487 $ 862,046,339 $ 694,580,228 $ 412,707,268
Cash -- -- 2,947,360 288,488 376,667 1,858,620
Unrealized appreciation on forward swaps -- -- -- 165,919 -- --
Receivables:
Interest 12,295,585 29,370,545 7,110,999 13,849,360 9,485,423 6,229,021
Investments sold 3,970,000 10,550,000 165,000 50,127 1,505,000 --
Other assets 100,525 182,775 55,930 78,795 51,174 25,992
------------------------------------------------------------------------------------------------------------------------------------
Total assets 945,185,020 1,992,791,435 465,741,776 876,479,028 705,998,492 420,820,901
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 326,001 641,123 -- -- -- --
Floating rate obligations 54,140,000 86,103,333 14,015,000 92,040,000 20,938,334 1,305,000
Payable for investments purchased -- -- -- -- -- 1,829,963
Accrued expenses:
Management fees 459,153 962,528 236,797 405,592 209,818 105,903
Other 261,067 517,510 132,336 319,356 156,050 95,758
Common share dividends payable 1,927,390 3,991,879 884,002 1,700,553 1,647,752 1,042,864
Preferred share dividends payable 113,233 278,378 73,351 92,718 64,454 50,095
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 57,226,844 92,494,751 15,341,486 94,558,219 23,016,408 4,429,583
------------------------------------------------------------------------------------------------------------------------------------
Preferred shares, at liquidation value 318,000,000 680,000,000 161,000,000 268,900,000 233,000,000 144,000,000
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 569,958,176 $1,220,296,684 $ 289,400,290 $ 513,020,809 $ 449,982,084 $ 272,391,318
====================================================================================================================================
Common shares outstanding 38,295,278 81,138,036 19,419,608 37,353,512 29,813,300 18,523,265
====================================================================================================================================
Net asset value per Common share
outstanding (net assets applicable to
Common shares, divided by Common
shares outstanding) $ 14.88 $ 15.04 $ 14.90 $ 13.73 $ 15.09 $ 14.71
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 382,953 $ 811,380 $ 194,196 $ 373,535 $ 298,133 $ 185,233
Paid-in surplus 534,535,198 1,128,874,275 269,465,714 491,941,462 423,568,038 261,645,886
Undistributed (Over-distribution of)
net investment income 171,284 454,850 (789,440) (1,335,549) (1,234,207) (507,596)
Accumulated net realized gain (loss)
from investments and
derivative transactions (731,586) 211,268 (602,262) (295,910) (3,150,321) (6,779,269)
Net unrealized appreciation
(depreciation) of investments
and derivative transactions 35,600,327 89,944,911 21,132,082 22,337,271 30,500,441 17,847,064
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $ 569,958,176 $1,220,296,684 $ 289,400,290 $ 513,020,809 $ 449,982,084 $ 272,391,318
====================================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Unlimited
Preferred 1,000,000 1,000,000 1,000,000 Unlimited Unlimited Unlimited
====================================================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
73
| Statement of
| OPERATIONS
Year Ended October 31, 2007
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 46,462,027 $ 96,369,563 $ 22,741,396 $ 41,253,812 $ 33,784,417 $ 19,766,610
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,444,821 11,408,030 2,804,516 4,803,887 4,197,894 2,586,861
Preferred shares - auction fees 794,999 1,699,998 402,500 672,250 582,500 360,000
Preferred shares - dividend disbursing
agent fees 50,000 70,000 30,000 50,000 30,000 20,000
Shareholders' servicing agent fees
and expenses 75,526 124,553 28,043 43,825 7,231 4,316
Interest expense on floating
rate obligations 1,963,691 3,135,352 491,811 3,126,371 765,046 43,389
Custodian's fees and expenses 153,304 364,314 93,356 184,129 141,283 94,933
Directors'/Trustees' fees and expenses 20,844 45,920 10,852 18,421 16,109 10,224
Professional fees 47,892 90,956 28,081 29,529 36,429 24,620
Shareholders' reports - printing and
mailing expenses 85,585 166,550 46,243 73,740 67,334 40,754
Stock exchange listing fees 13,850 29,175 9,671 13,431 2,533 1,574
Investor relations expense 92,676 195,040 47,762 82,521 70,809 42,831
Portfolio insurance expense -- 27,199 -- -- -- --
Other expenses 52,037 84,007 34,752 37,557 32,992 22,281
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit
and expense reimbursement 8,795,225 17,441,094 4,027,587 9,135,661 5,950,160 3,251,783
Custodian fee credit (114,811) (208,806) (62,954) (100,988) (94,535) (29,167)
Expense reimbursement -- -- -- -- (1,858,168) (1,335,598)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 8,680,414 17,232,288 3,964,633 9,034,673 3,997,457 1,887,018
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 37,781,613 79,137,275 18,776,763 32,219,139 29,786,960 17,879,592
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from investments 402,678 213,800 (437,572) 670,365 1,658,186 683,061
Change in net unrealized appreciation
(depreciation) of:
Investments (19,111,081) (36,626,210) (8,470,828) (15,396,052) (12,888,832) (4,723,249)
Forward swaps -- -- -- 165,919 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (18,708,403) (36,412,410) (8,908,400) (14,559,768) (11,230,646) (4,040,188)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (11,240,731) (23,971,401) (5,720,025) (9,604,218) (8,411,541) (4,960,330)
From accumulated net realized gains -- (491,009) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (11,240,731) (24,462,410) (5,720,025) (9,604,218) (8,411,541) (4,960,330)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
applicable to Common shares
from operations $ 7,832,479 $ 18,262,455 $ 4,148,338 $ 8,055,153 $ 10,144,773 $ 8,879,074
====================================================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
74
| Statement of
| CHANGES in NET ASSETS
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
---------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/07 10/31/06 10/31/07 10/31/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 37,781,613 $ 37,757,102 $ 79,137,275 $ 79,500,285
Net realized gain (loss) from:
Investments 402,678 (1,191,796) 213,800 1,907,145
Forward swaps -- -- -- --
Net increase from payments by the Adviser for
losses realized on the disposal of investments
purchased in violation of investment restrictions -- 27,762 -- 42,338
Change in net unrealized appreciation (depreciation) of:
Investments (19,111,081) 10,625,581 (36,626,210) 25,620,352
Forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (11,240,731) (9,396,258) (23,971,401) (19,724,590)
From accumulated net realized gains -- (565,042) (491,009) (2,314,744)
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 7,832,479 37,257,349 18,262,455 85,030,786
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (27,802,379) (30,556,817) (59,595,899) (65,186,316)
From accumulated net realized gains -- (2,966,866) (1,541,606) (11,310,643)
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (27,802,379) (33,523,683) (61,137,505) (76,496,959)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- 417,197 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- 417,197 -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (19,969,900) 4,150,863 (42,875,050) 8,533,827
Net assets applicable to Common shares at the beginning of year 589,928,076 585,777,213 1,263,171,734 1,254,637,907
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 569,958,176 $ 589,928,076 $ 1,220,296,684 $ 1,263,171,734
===================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 171,284 $ 1,459,534 $ 454,850 $ 4,886,834
===================================================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
75
| Statement of
| CHANGES in NET ASSETS (continued)
PREMIER INSURED INSURED PREMIUM
INCOME (NIF) INCOME 2 (NPX)
---------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/07 10/31/06 10/31/07 10/31/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 18,776,763 $ 19,010,574 $ 32,219,139 $ 31,991,464
Net realized gain (loss) from:
Investments (437,572) (164,691) 670,365 287,636
Forward swaps -- -- -- --
Net increase from payments by the Adviser for
losses realized on the disposal of investments
purchased in violation of investment restrictions -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (8,470,828) 4,920,062 (15,396,052) 10,227,465
Forward swaps -- -- 165,919 --
Distributions to Preferred Shareholders:
From net investment income (5,720,025) (4,829,477) (9,604,218) (8,461,641)
From accumulated net realized gains -- (363,000) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 4,148,338 18,573,468 8,055,153 34,044,924
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,749,084) (15,341,495) (24,018,307) (25,568,479)
From accumulated net realized gains -- (1,854,574) -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (13,749,084) (17,196,069) (24,018,307) (25,568,479)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (9,600,746) 1,377,399 (15,963,154) 8,476,445
Net assets applicable to Common shares at the beginning of year 299,001,036 297,623,637 528,983,963 520,507,518
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 289,400,290 $ 299,001,036 $ 513,020,809 $ 528,983,963
===================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ (789,440) $ (97,094) $ (1,335,549) $ 86,758
===================================================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
76
| Statement of
| CHANGES in NET ASSETS (continued)
INSURED DIVIDEND INSURED TAX-FREE
ADVANTAGE (NVG) ADVANTAGE (NEA)
---------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/07 10/31/06 10/31/07 10/31/06
-----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 29,786,960 $ 30,043,912 $ 17,879,592 $ 17,939,799
Net realized gain (loss) from:
Investments 1,658,186 (1,161,908) 683,061 70,087
Forward swaps -- -- -- 1,283,477
Net increase from payments by the Adviser for
losses realized on the disposal of investments
purchased in violation of investment restrictions -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments (12,888,832) 11,104,043 (4,723,249) 7,086,220
Forward swaps -- -- -- (1,430,007)
Distributions to Preferred Shareholders:
From net investment income (8,411,541) (7,450,053) (4,960,330) (4,393,243)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 10,144,773 32,535,994 8,879,074 20,556,333
-----------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (22,283,514) (24,516,934) (13,111,078) (13,664,277)
From accumulated net realized gains -- -- -- --
-----------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (22,283,514) (24,516,934) (13,111,078) (13,664,277)
-----------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Net proceeds from Common shares issued to shareholders
due to reinvestment of distributions 84,005 -- 117,345 --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 84,005 -- 117,345 --
-----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (12,054,736) 8,019,060 (4,114,659) 6,892,056
Net assets applicable to Common shares at the beginning of year 462,036,820 454,017,760 276,505,977 269,613,921
-----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 449,982,084 $ 462,036,820 $ 272,391,318 $ 276,505,977
===================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ (1,234,207) $ (273,743) $ (507,596) $ (315,778)
===================================================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
77
| Statement of
| CASH FLOWS
Year Ended October 31, 2007
INSURED
PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES FROM OPERATIONS $ 8,055,153
Adjustments to reconcile the net increase (decrease) in net assets applicable to
Common shares from operations to net cash
provided by (used in) operating activities:
Purchases of investments (104,968,878)
Proceeds from sales of investments 45,780,591
Proceeds from (Purchases of) short-term investments, net 2,600,000
Amortization / (Accretion) of premiums and discounts, net 53,660
(Increase) Decrease in receivable for interest (116,504)
(Increase) Decrease in receivable for investments sold 23,988,662
(Increase) Decrease in other assets (13,412)
Increase (Decrease) in payable for investments purchased (33,689,805)
Increase (Decrease) in accrued management fees (6,525)
Increase (Decrease) in accrued other liabilities 56,523
Increase (Decrease) in Preferred shares dividends payable (12,126)
Net realized (gain) loss from investments (670,365)
Change in net unrealized (appreciation) depreciation of investments 15,396,052
Change in net unrealized (appreciation) depreciation of forward swaps (165,919)
------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities (43,712,893)
------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in floating rate obligations 63,100,000
Cash distribution paid to Common shareholders (22,317,754)
------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 40,782,246
------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (2,930,647)
Cash at the beginning of year 3,219,135
------------------------------------------------------------------------------------------------------
CASH AT THE END OF YEAR $ 288,488
======================================================================================================
|
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
78
| Notes to
| FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc.
(NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier
Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income
Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG)
and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA). Common shares of
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange
while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free
Advantage (NEA) are traded on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
diversified management investment companies.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum
tax applicable to individuals, by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities or
certain U.S. territories.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
INVESTMENT VALUATION
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service may establish fair value based on
yields or prices of municipal bonds of comparable quality, type of issue,
coupon, maturity and rating, indications of value from securities dealers,
evaluations of anticipated cash flows or collateral and general market
conditions. Prices of forward swap contracts are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or forward swap
contract, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment or derivate transaction is
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the investment. Temporary
investments in securities that have variable rate and demand features qualifying
them as short-term investments are valued at amortized cost, which approximates
market value.
INVESTMENT TRANSACTIONS
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
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 October 31, 2007, Insured
Tax-Free Advantage (NEA) had outstanding when-issued/delayed delivery purchase
commitments of $798,109. There were no such outstanding purchase commitments in
any of the other Funds.
INVESTMENT INCOME
Interest income, which includes the amortization of premiums and accretion of
discounts for financial reporting purposes, is recorded on an accrual basis.
Investment income also includes paydown gains and losses, if any.
79
| Notes to
| FINANCIAL STATEMENTS (continued)
FEDERAL INCOME TAXES
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal and applicable state
income taxes, if any, and in the case of Insured Tax-Free Advantage (NEA) the
alternative minimum tax applicable to individuals, to retain such tax-exempt
status when distributed to shareholders of the Funds. Net realized capital gains
and ordinary income distributions paid by the Funds are subject to federal
taxation.
DIVIDENDS AND DISTRIBUTIONS TO COMMON SHAREHOLDERS
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, 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.
generally accepted accounting principles.
PREFERRED SHARES
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080 3,160 --
Series T 2,600 4,000 -- 2,200 3,080 2,880
Series W 2,600 4,000 840 2,080 -- 2,880
Series W2 -- 3,200 -- -- -- --
Series TH 2,320 4,000 2,800 2,200 3,080 --
Series TH2 -- 4,000 -- -- -- --
Series F 2,600 4,000 2,800 2,196 -- --
----------------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756 9,320 5,760
========================================================================================
|
INSURANCE
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) invest only in municipal securities which are
either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at
least 80% of their net assets (including net assets attributable to Preferred
shares) in municipal securities that are covered by insurance. Each Fund may
also invest up to 20% of its net assets (including net assets attributable to
Preferred shares) in municipal securities which are either (i) backed by an
escrow or trust containing sufficient U.S. Government or U.S. Government agency
securities, or (ii) rated, at
80
the time of investment, within the four highest grades (Baa or BBB or better by
Moody's, Standard & Poor's or unrated but judged to be of comparable quality by
Nuveen Asset Management ("the Adviser"), a wholly owned subsidiary of Nuveen
Investments, Inc. ("Nuveen").
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
INVERSE FLOATING RATE SECURITIES
Each Fund may invest in inverse floating rate securities. An inverse floating
rate security is created by depositing a municipal bond, typically with a fixed
interest rate, into a special purpose trust created by a broker-dealer. In turn,
this trust (a) issues floating rate certificates, in face amounts equal to some
fraction of the deposited bond's par amount or market value, that typically pay
short-term tax-exempt interest rates to third parties, and (b) issues to a
long-term investor (such as one of the Funds) an inverse floating rate
certificate (sometimes referred to as an "inverse floater") that represents all
remaining or residual interest in the trust. The income received by the inverse
floater holder varies inversely with the short-term rate paid to the floating
rate certificates' holders, and in most circumstances the inverse floater holder
bears substantially all of the underlying bond's downside investment risk and
also benefits disproportionately from any potential appreciation of the
underlying bond's value. The price of an inverse floating rate security will be
more volatile than that of the underlying bond because the interest rate is
dependent on not only the fixed coupon rate of the underlying bond but also on
the short-term interest paid on the floating rate certificates, and because the
inverse floating rate security essentially bears the risk of loss of the greater
face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). A Fund may also enter into shortfall and
forbearance agreements (sometimes referred to as a "recourse trust" or "credit
recovery swap") with a broker-dealer by which a Fund agrees to reimburse the
broker-dealer, in certain circumstances, for the difference between the
liquidation value of the fixed-rate bond held by the trust and the liquidation
value of the floating rate certificates, as well as any shortfalls in interest
cash flows. The inverse floater held by a Fund gives the Fund the right (a) to
cause the holders of the floating rate certificates to tender their notes at
par, and (b) to have the broker transfer the fixed-rate bond held by the trust
to the Fund, thereby collapsing the trust. An investment in an
externally-deposited inverse floater is identified in the Portfolio of
Investments as an "Inverse floating rate investment". An investment in a
self-deposited inverse floater, recourse trust or credit recovery swap is
accounted for as a financing transaction in accordance with Statement of
Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and
Servicing of Financial Assets and Extinguishment of Liabilities". In such
instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as an "Underlying bond of an inverse
floating rate trust", with the Fund accounting for the short-term floating rate
certificates issued by the trust as "Floating rate obligations" on the Statement
of Assets and Liabilities. In addition, the Fund reflects in Investment Income
the entire earnings of the underlying bond and accounts for the related interest
paid to the holders of the short-term floating rate certificates as "Interest
expense on floating rate obligations" in the Statement of Operations.
During the fiscal year ended October 31, 2007, each Fund invested in externally
deposited inverse floaters and/or self-deposited inverse floaters.
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2007, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations $50,603,945 $80,854,379 $12,443,110 $80,463,110 $19,421,398 $1,126,233
Average annual interest rate and fees 3.88% 3.88% 3.95% 3.89% 3.94% 3.85%
==============================================================================================================================
|
81
| Notes to
| FINANCIAL STATEMENTS (continued)
FORWARD SWAP TRANSACTIONS
The Funds are authorized to invest in forward interest rate swap transactions.
Each Fund's use of forward interest rate swap transactions is intended to help
the Fund manage its overall interest rate sensitivity, either shorter or longer,
generally to more closely align the Fund's interest rate sensitivity with that
of the broader municipal market. Forward interest rate swap transactions involve
each Fund's agreement with a counterparty to pay, in the future, a fixed or
variable rate payment in exchange for the counterparty paying the Fund a
variable or fixed rate payment, the accruals for which would begin at a
specified date in the future (the "effective date"). The amount of the payment
obligation is based on the notional amount of the forward swap contract and the
termination date of the swap (which is akin to a bond's maturity). The value of
the Fund's swap commitment would increase or decrease based primarily on the
extent to which long-term interest rates for bonds having a maturity of the
swap's termination date increases or decreases. The Funds may terminate a swap
contract prior to the effective date, at which point a realized gain or loss is
recognized. When a forward swap is terminated, it ordinarily does not involve
the delivery of securities or other underlying assets or principal, but rather
is settled in cash on a net basis. Each Fund intends, but is not obligated, to
terminate its forward swaps before the effective date. Accordingly, the risk of
loss with respect to the swap counterparty on such transactions is limited to
the credit risk associated with a counterparty failing to honor its commitment
to pay any realized gain to the Fund upon termination. To reduce such credit
risk, all counterparties are required to pledge collateral daily (based on the
daily valuation of each swap) on behalf of each Fund with a value approximately
equal to the amount of any unrealized gain above a pre-determined threshold.
Reciprocally, when any of the Funds have an unrealized loss on a swap contract,
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 swap valuations fluctuate, either up or
down, by at least the predetermined threshold amount. Insured Premium Income 2
(NPX) was the only Fund to invest in forward swap transactions during the fiscal
year ended October 31, 2007.
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 the Fund overdraws its account at the custodian bank.
INDEMNIFICATIONS
Under the Funds' organizational documents, their Officers and Directors/Trustees
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 expect the risk of loss to be remote.
USE OF ESTIMATES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles 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 applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
82
2. FUND SHARES
Transactions in Common shares were as follows:
INSURED INSURED PREMIER INSURED
QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF)
------------------- ------------------- -------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/07 10/31/06 10/31/07 10/31/06 10/31/07 10/31/06
--------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- 27,000 -- -- -- --
==============================================================================================================
|
INSURED INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA)
---------------------- ------------------------ ------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/07 10/31/06 10/31/07 10/31/06 10/31/07 10/31/06
---------------------------------------------------------------------------------------------------------------------------
Common shares issued to shareholders
due to reinvestment of distributions -- -- 5,478 -- 7,983 --
===========================================================================================================================
|
3. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2007, were
as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------
Purchases $85,623,460 $133,925,046 $54,395,855 $104,968,878 $91,111,905 $26,212,369
Sales and maturities 46,306,249 89,758,739 43,405,834 45,780,591 83,464,611 24,732,279
=================================================================================================================
|
4. 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 the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount, timing differences in recognizing
certain gains and losses on investment transactions and the treatment of
investments in inverse floating rate transactions subject to SFAS No. 140. To
the extent that differences arise that are permanent in nature, such amounts are
reclassified within the capital accounts on the Statement of Assets and
Liabilities presented in the annual report, based on their federal tax basis
treatment; temporary differences do not require reclassification. Temporary and
permanent differences do not impact the net asset values of the Funds.
At October 31, 2007, the cost of investments was as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------
Cost of investments $838,532,200 $1,774,779,440 $420,233,341 $747,760,853 $642,960,361 $393,505,165
=================================================================================================================
|
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2007, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------
Gross unrealized:
Appreciation $40,337,590 $97,291,230 $22,364,078 $27,347,743 $32,818,839 $18,179,368
Depreciation (4,207,652) (5,489,460) (1,151,369) (5,122,868) (2,138,468) (282,478)
-----------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation)
of investments $36,129,938 $91,801,770 $21,212,709 $22,224,875 $30,680,371 $17,896,890
=================================================================================================================
|
83
| Notes to
| FINANCIAL STATEMENTS (continued)
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2007, the Funds' tax year end,
were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $2,071,769 $3,582,375 $232,517 $627,351 $364,579 $585,550
Undistributed net ordinary income ** -- -- -- -- -- --
Undistributed net long-term capital gains -- 211,268 -- -- -- --
==================================================================================================================================
|
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2007, paid on November 1, 2007.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended
October 31, 2007 and October 31, 2006, was designated for purposes of the
dividends paid deduction as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
2007 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income *** $39,047,625 $83,864,627 $19,606,912 $33,728,035 $30,917,881 $18,104,469
Distributions from net ordinary income ** -- -- -- -- -- --
Distributions from net long-term
capital gains **** -- 2,032,615 -- -- -- --
==================================================================================================================================
|
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
2006 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt income $40,449,144 $85,552,575 $20,340,320 $34,358,230 $32,151,520 $18,082,303
Distributions from net ordinary income ** -- 36,367 -- -- -- --
Distributions from net long-term
capital gains 3,529,489 13,627,650 2,216,110 -- -- --
==================================================================================================================================
|
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2007, as Exempt Interest Dividends.
**** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2007, as long-term capital gain dividends pursuant to Internal
Revenue Code Section 852(b)(3).
84
At October 31, 2007, the Funds' tax year end, the following 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:
PREMIUM INSURED INSURED INSURED
INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------
Expiration year:
2008 $ -- $ -- $295,910 $ -- $ --
2009 -- -- -- -- --
2010 -- -- -- -- --
2011 -- -- -- -- --
2012 -- -- -- -- --
2013 -- -- -- 160,392 4,675,683
2014 731,586 164,691 -- 1,187,192 --
2015 -- 437,571 -- -- 35,274
-----------------------------------------------------------------------------
Total $731,586 $602,262 $295,910 $1,347,584 $4,710,957
=============================================================================
|
5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
PREMIER INSURED INCOME (NIF)
INSURED PREMIUM INCOME 2 (NPX)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
---------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
====================================================================================================================
|
INSURED DIVIDEND ADVANTAGE (NVG)
INSURED TAX-FREE ADVANTAGE (NEA)
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
---------------------------------------------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
====================================================================================================================
|
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of October 31, 2007, the complex-level fee rate was .1828%.
85
| Notes to
| FINANCIAL STATEMENTS (continued)
Effective August 20, 2007, the complex-level fee schedule is as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) 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
================================================================================
|
Prior to August 20, 2007, the complex-level fee schedule was as follows:
COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) 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 .1698
$125 billion .1617
$200 billion .1536
$250 billion .1509
$300 billion .1490
================================================================================
|
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
preferred stock issued by or borrowings by the Nuveen funds) of
Nuveen-sponsored funds in the U.S.
86
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees 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/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees 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.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
|
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any
portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
|
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any
portion of its fees and expenses beyond November 30, 2010.
As a result of certain trading errors that occurred during the fiscal year ended
October 31, 2006, Insured Quality (NQI) and Insured Opportunity (NIO) were
reimbursed $27,762 and $42,338, respectively, by the Adviser to offset losses
realized on the disposal of investments in violation of investment guidelines.
AGREEMENT AND PLAN OF MERGER
On June 20, 2007, Nuveen Investments announced that it had entered into a
definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City
Investments, Inc. ("Windy City"), a corporation formed by investors led by
Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy
City would acquire Nuveen Investments. Madison Dearborn is a private equity
investment firm based in Chicago, Illinois. The merger was consummated on
November 13, 2007.
The consummation of the merger was deemed to be an "assignment" (as that term is
defined in the Investment Company Act of 1940) of the investment management
agreement between each Fund and the Adviser, and resulted in the automatic
termination of each Fund's agreement. The Board of Directors/Trustees of each
Fund has approved a new investment management agreement with the Adviser at the
same fee rate. The new ongoing agreement was approved by the shareholders of
each Fund and took effect on November 13, 2007.
87
| Notes to
| FINANCIAL STATEMENTS (continued)
The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As
a result, Merrill Lynch is an indirect "affiliated person" (as that term is
defined in the Investment Company Act of 1940) of each Fund. Certain conflicts
of interest may arise as a result of such indirect affiliation. For example, the
Funds are generally prohibited from entering into principal transactions with
Merrill Lynch and its affiliates. The Adviser does not believe that any such
prohibitions or limitations as a result of Merrill Lynch's affiliation with
significantly impact the ability of the Funds to pursue their investment
objectives and policies.
6. NEW ACCOUNTING PRONOUNCEMENTS
FINANCIAL ACCOUNTING STANDARDS BOARD INTERPRETATION NO. 48
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" (FIN 48).
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken or expected to be taken in the course of
preparing the Funds' tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be
recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is
required for fiscal years beginning after December 15, 2006, and is to be
applied to all open tax years as of the effective date. SEC guidance allows
funds to delay implementing FIN 48 into NAV calculations until the fund's last
NAV calculation in the first required financial statement reporting period. As a
result, the Funds must begin to incorporate FIN 48 into their NAV calculations
by April 30, 2008. At this time, management is continuing to evaluate the
implications of FIN 48 and does not expect the adoption of FIN 48 will have a
significant impact on the net assets or results of operations of the Funds.
FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT OF FINANCIAL ACCOUNTING STANDARDS
NO. 157
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this standard relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2007, management does not believe the adoption
of SFAS No. 157 will impact the financial statement amounts; however, additional
disclosures may be required about the inputs used to develop the measurements
and the effect of certain of the measurements included within the Statement of
Operations for the period.
7. SUBSEQUENT EVENTS
DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 3, 2007, to shareholders of record
on November 15, 2007, as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------
Dividend per share $.0605 $.0580 $.0530 $.0515 $.0575 $.0590
=========================================================================================
|
88
| Financial
| HIGHLIGHTS
89
| Financial
| HIGHLIGHTS
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
------------------------------------------------------------------------ -----------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
------------------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $15.40 $ .99 $(.49) $(.29) $ -- $ .21 $ (.73) $ -- $ (.73)
2006 15.31 .99 .24 (.25) (.01) .97 (.80) (.08) (.88)
2005 15.85 1.03 (.39) (.16) -- .48 (.97) (.05) (1.02)
2004 15.72 1.08 .20 (.08) -- 1.20 (1.02) (.05) (1.07)
2003 15.87 1.10 (.05) (.07) (.01) .97 (1.00) (.12) (1.12)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 15.57 .98 (.45) (.30) (.01) .22 (.73) (.02) (.75)
2006 15.46 .98 .34 (.24) (.03) 1.05 (.80) (.14) (.94)
2005 16.06 1.01 (.50) (.16) -- .35 (.92) (.03) (.95)
2004 15.89 1.05 .20 (.08) -- 1.17 (.97) (.03) (1.00)
2003 15.83 1.06 .17 (.07) (.01) 1.15 (.97) (.12) (1.09)
====================================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
-------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $ -- $14.88 $13.61 (3.48)% 1.38%
2006 -- 15.40 14.83 2.76 6.53***
2005 -- 15.31 15.31 2.11 3.09
2004 -- 15.85 16.00 4.37 7.90
2003 -- 15.72 16.39 12.92 6.27
INSURED OPPORTUNITY (NIO)
-------------------------------------------------------------------------------------
Year Ended 10/31:
2007 -- 15.04 13.56 (3.18) 1.49
2006 -- 15.57 14.75 8.26 7.05***
2005 -- 15.46 14.52 (3.72) 2.21
2004 -- 16.06 16.05 9.47 7.64
2003 -- 15.89 15.64 10.22 7.51
=====================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a) Interest++(a) Income++
--------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $ 569,958 1.52% 1.18% 6.53%
2006 589,928 1.20 1.20 6.49
2005 585,777 1.19 1.19 6.58
2004 605,028 1.19 1.19 6.88
2003 598,102 1.20 1.20 6.93
INSURED OPPORTUNITY (NIO)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2007 1,220,297 1.41 1.16 6.39
2006 1,263,172 1.17 1.17 6.38
2005 1,254,638 1.16 1.16 6.35
2004 1,302,985 1.16 1.16 6.59
2003 1,288,087 1.17 1.17 6.67
======================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
-------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
--------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2007 1.50% 1.16% 6.55% 5%
2006 1.20 1.20 6.49 13
2005 1.19 1.19 6.58 21
2004 1.19 1.19 6.88 8
2003 1.20 1.20 6.94 14
INSURED OPPORTUNITY (NIO)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2007 1.40 1.14 6.41 5
2006 1.17 1.17 6.38 13
2005 1.16 1.16 6.35 25
2004 1.16 1.16 6.59 8
2003 1.16 1.16 6.68 21
======================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
-------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
---------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $318,000 $25,000 $69,808 $54,140 $17,401
2006 318,000 25,000 71,378 -- --
2005 318,000 25,000 71,052 -- --
2004 318,000 25,000 72,565 -- --
2003 318,000 25,000 72,021 -- --
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 680,000 25,000 69,864 86,103 23,070
2006 680,000 25,000 71,440 -- --
2005 680,000 25,000 71,126 -- --
2004 680,000 25,000 72,904 -- --
2003 680,000 25,000 72,356 -- --
=============================================================================================
|
* Total Return 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 takes 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.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend 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 calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
*** During the fiscal year ended October 31, 2006, Insured Quality (NQI) and
Insured Opportunity (NIO) received payments from the Adviser of $27,762
and $42,338, respectively, to offset losses realized on the disposal of
investments purchased in violation of each Fund's investment restrictions.
This reimbursement did not have an impact on the Funds' Total Return on
Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
90-91
| Financial
| HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------- ------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
---------------------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $15.40 $ .97 $(.47) $(.29) $ -- $ .21 $(.71) $ -- $ (.71)
2006 15.33 .98 .25 (.25) (.02) .96 (.79) (.10) (.89)
2005 16.00 1.01 (.49) (.16) (.01) .35 (.93) (.09) (1.02)
2004 15.69 1.03 .36 (.08) -- 1.31 (.98) (.02) (1.00)
2003 15.59 1.05 .13 (.07) -- 1.11 (.98) (.03) (1.01)
INSURED PREMIUM INCOME 2 (NPX)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 14.16 .86 (.39) (.26) -- .21 (.64) -- (.64)
2006 13.93 .86 .28 (.23) -- .91 (.68) -- (.68)
2005 14.45 .89 (.44) (.14) -- .31 (.83) -- (.83)
2004 14.24 .93 .23 (.07) -- 1.09 (.88) -- (.88)
2003 14.17 .96 .03 (.06) -- .93 (.86) -- (.86)
=================================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value* Value*
-----------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
-----------------------------------------------------------------------------
Year Ended 10/31:
2007 $ -- $14.90 $13.25 (4.66)% 1.40%
2006 -- 15.40 14.60 7.68 6.46
2005 -- 15.33 14.40 (1.66) 2.16
2004 -- 16.00 15.64 7.55 8.62
2003 -- 15.69 15.51 7.84 7.28
INSURED PREMIUM INCOME 2 (NPX)
-----------------------------------------------------------------------------
Year Ended 10/31:
2007 -- 13.73 12.18 (1.77) 1.55
2006 -- 14.16 13.03 7.11 6.75
2005 -- 13.93 12.83 (3.32) 2.14
2004 -- 14.45 14.11 6.42 7.89
2003 -- 14.24 14.12 8.84 6.70
=============================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a) Interest++(a) Income++
--------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
--------------------------------------------------------------------------------
Year Ended 10/31:
2007 $289,400 1.38% 1.21% 6.41%
2006 299,001 1.22 1.22 6.44
2005 297,624 1.20 1.20 6.39
2004 310,666 1.21 1.21 6.53
2003 303,912 1.22 1.22 6.66
INSURED PREMIUM INCOME 2 (NPX)
--------------------------------------------------------------------------------
Year Ended 10/31:
2007 513,021 1.76 1.16 6.19
2006 528,984 1.16 1.16 6.14
2005 520,508 1.16 1.16 6.20
2004 539,697 1.16 1.16 6.52
2003 530,975 1.17 1.17 6.68
================================================================================
Ratios/Supplemental Data
--------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement**
------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
------------------------------------------------------------------------------
Year Ended 10/31:
2007 1.36% 1.19% 6.43% 9%
2006 1.21 1.21 6.44 8
2005 1.20 1.20 6.40 20
2004 1.20 1.20 6.53 13
2003 1.21 1.21 6.68 25
INSURED PREMIUM INCOME 2 (NPX)
------------------------------------------------------------------------------
Year Ended 10/31:
2007 1.74 1.14 6.21 5
2006 1.16 1.16 6.15 15
2005 1.16 1.16 6.20 23
2004 1.16 1.16 6.53 14
2003 1.16 1.16 6.69 31
==============================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME (NIF)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $161,000 $25,000 $69,938 $14,015 $33,137
2006 161,000 25,000 71,429 -- --
2005 161,000 25,000 71,215 -- --
2004 161,000 25,000 73,240 -- --
2003 161,000 25,000 72,191 -- --
INSURED PREMIUM INCOME 2 (NPX)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 268,900 25,000 72,696 92,040 9,495
2006 268,900 25,000 74,180 -- --
2005 268,900 25,000 73,392 -- --
2004 268,900 25,000 75,176 -- --
2003 268,900 25,000 74,365 -- --
==================================================================================================
|
* Total Return 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 takes 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.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend 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 calculation. Total returns are not annualized.
** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
92-93
| Financial
| HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
-------------------------------------------------------------- -----------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
-------------------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $15.50 $1.00 $ (.38) $(.28) $ -- $ .34 $(.75) $ -- $ (.75)
2006 15.23 1.01 .33 (.25) -- 1.09 (.82) -- (.82)
2005 15.78 1.00 (.38) (.15) (.01) .46 (.89) (.12) (1.01)
2004 15.41 1.02 .42 (.07) -- 1.37 (.93) (.07) (1.00)
2003 15.35 1.03 .15 (.07) (.01) 1.10 (.93) (.11) (1.04)
INSURED TAX-FREE ADVANTAGE (NEA)
-------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 14.93 .97 (.21) (.27) -- .49 (.71) -- (.71)
2006 14.56 .97 .38 (.24) -- 1.11 (.74) -- (.74)
2005 14.75 .97 (.19) (.15) -- .63 (.81) (.01) (.82)
2004 14.54 .99 .21 (.07) -- 1.13 (.92) (.01) (.93)
2003(b) 14.33 .82 .42 (.05) -- 1.19 (.78) -- (.78)
===============================================================================================================================
Total Returns
-------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $ -- $15.09 $13.71 (3.12)% 2.25%
2006 -- 15.50 14.89 11.09 7.39
2005 -- 15.23 14.17 2.00 2.93
2004 -- 15.78 14.89 7.61 9.19
2003 -- 15.41 14.81 6.10 7.37
INSURED TAX-FREE ADVANTAGE (NEA)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 -- 14.71 14.30 4.59 3.35
2006 -- 14.93 14.35 12.82 7.82
2005 -- 14.56 13.41 (4.68) 4.33
2004 .01 14.75 14.91 7.41 8.07
2003(b) (.20) 14.54 14.79 3.87 6.98
==========================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
Before Credit/Reimbursement
------------------------------------------
Ending
Net
Assets
Applicable Expenses Expenses Net
to Common Including Excluding Investment
Shares (000) Interest++(a) Interest++(a) Income++
---------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $449,982 1.31% 1.14% 6.15%
2006 462,037 1.15 1.15 6.15
2005 454,018 1.15 1.15 5.96
2004 470,389 1.15 1.15 6.09
2003 459,368 1.17 1.17 6.22
INSURED TAX-FREE ADVANTAGE (NEA)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 272,391 1.19 1.17 6.04
2006 276,506 1.19 1.19 6.12
2005 269,614 1.19 1.19 6.06
2004 273,112 1.20 1.20 6.24
2003(b) 269,112 1.12* 1.12* 5.52*
=============================================================================================
Ratios/Supplemental Data
----------------------------------------------------------
Ratios to Average Net Assets
Applicable to Common Shares
After Credit/Reimbursement***
------------------------------------------
Expenses Expenses Net Portfolio
Including Excluding Investment Turnover
Interest++(a) Interest++(a) Income++ Rate
---------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 .88% .71% 6.58% 12%
2006 .70 .70 6.60 15
2005 .70 .70 6.42 2
2004 .70 .70 6.54 11
2003 .72 .72 6.67 25
INSURED TAX-FREE ADVANTAGE (NEA)
---------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 .69 .67 6.54 6
2006 .69 .69 6.61 --
2005 .70 .70 6.55 1
2004 .71 .71 6.73 13
2003(b) .65* .65* 6.00* 72
=============================================================================================
Floating Rate Obligations
Preferred Shares at End of Period at End of Period
------------------------------------- -------------------------
Aggregate Liquidation Aggregate
Amount and Market Asset Amount Asset
Outstanding Value Coverage Outstanding Coverage
(000) Per Share Per Share (000) Per $1,000
--------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE (NVG)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 $ 233,000 $25,000 $73,281 $20,938 $ 33,619
2006 233,000 25,000 74,575 -- --
2005 233,000 25,000 73,714 -- --
2004 233,000 25,000 75,471 -- --
2003 233,000 25,000 74,288 -- --
INSURED TAX-FREE ADVANTAGE (NEA)
--------------------------------------------------------------------------------------------------
Year Ended 10/31:
2007 144,000 25,000 72,290 1,305 320,074
2006 144,000 25,000 73,005 -- --
2005 144,000 25,000 71,808 -- --
2004 144,000 25,000 72,415 -- --
2003(b) 144,000 25,000 71,721 -- --
==================================================================================================
|
* Annualized.
** Total Return 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 takes 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.
Total Return on Common Share Net Asset Value is the combination of changes
in Common share net asset value, reinvested dividend 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 calculation. Total returns are not annualized.
*** After custodian fee credit and expense reimbursement, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Preferred
shareholders; income ratios reflect income earned on assets attributable
to Preferred shares.
(a) Interest expense arises from the application of SFAS No. 140 to certain
inverse floating rate transactions entered into by the Fund as more fully
described in Footnote 1- Inverse Floating Rate Securities.
(b) For the period November 21, 2002 (commencement of operations) through
October 31, 2003.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
94-95
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at eight. None of the board members who are not "interested" persons of the
Funds has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS | APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(2) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
o TIMOTHY R. SCHWERTFEGER(1) Former director (1994-November 12, 2007),
3/28/49 | Chairman of 1994 Chairman (1996-June 30, 2007),
333 W. Wacker Drive | the Board ANNUAL 182 Non-Executive Chairman (July 1,
Chicago, IL 60606 | and Board Member 2007-November 12, 2007) and Chief
Executive Officer (1996-June 30, 2007)
of Nuveen Investments, -Inc. and
Nuveen Asset Management and certain
other subsidiaries of Nuveen
Investments, Inc.; formerly, Director
(1992-2006) of Institutional Capital
Corporation.
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
o ROBERT P. BREMNER Private Investor and Management
8/22/40 | Lead 1997 Consultant.
333 W. Wacker Drive | Independent ANNUAL OR CLASS III 182
Chicago, IL 60606 | Board member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 | 1999 private philanthropic corporation (since
333 W. Wacker Drive | Board member ANNUAL OR CLASS III 182 1996); Director and Vice Chairman, United
Chicago, IL 60606 | Fire Group, a publicly held company;
Member of the Board of Regents for the
State of Iowa University System;
Director, Gazette Companies; Life Trustee
of Coe College and Iowa College
Foundation; Member of the Advisory
Council of the Department of Finance in
the Tippie College of Business,
University of Iowa; formerly, Director,
Alliant Energy; formerly, Director,
Federal Reserve Bank of Chicago;
formerly, President and Chief Operating
Officer, SCI Financial Group, Inc., a
regional financial services firm.
o WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 | 2004 University of Iowa (since July 2006);
333 W. Wacker Drive | Board member ANNUAL OR CLASS II 182 formerly, Dean and Distinguished
Chicago, IL 60606 | Professor of Finance, School of Business
at the University of Connecticut
(2003-2006); previously, Senior Vice
President and Director of Research at the
Federal Reserve Bank of Chicago
(1995-2003); Director (since 1997),
Credit Research Center at Georgetown
University; Director (since 2004) of
Xerox Corporation; Director, SS&C
Technologies, Inc. (May 2005-October
2005).
|
96
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
& ADDRESS | APPOINTED IN FUND COMPLEX INCLUDING OTHER
AND TERM(2) OVERSEEN BY DIRECTORSHIPS
BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 | 2005 Management Company; Retired (since 2004)
333 W. Wacker Drive | Board member ANNUAL OR CLASS II 180 as Chairman, JPMorgan Fleming Asset
Chicago, IL 60606 | Management, President and CEO, Banc One
Investment Advisors Corporation, and
President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc
One Corporation and Chairman and CEO,
Banc One Investment Management Group;
Member, Board of Regents, Luther College;
member of the Wisconsin Bar Association;
member of Board of Directors, Friends of
Boerner Botanical Gardens; member of
Board of Directors, Milwaukee Repertory
Theater.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners
9/24/44 | 1997 Ltd., a real estate investment company,
333 W. Wacker Drive | Board member ANNUAL 182 formerly, Senior Partner and Chief
Chicago, IL 60606 | Operating Officer (retired, 2004);
Director, Dayton Development Coalition;
formerly, Member, Business Advisory
Council, Cleveland Federal Reserve Bank.
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 | 1997 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive | Board member ANNUAL OR CLASS I 182 thereto, Executive Director, Great Lakes
Chicago, IL 60606 | Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 | 2007 (since 2006); Chair New York Racing
333 West Wacker Drive | Board member ANNUAL OR CLASS I 182 Association Oversight Board (since 2005);
Chicago, IL 60606 | Commissioner, New York State Commission
on Public Authority Reform (since 2005);
formerly Director, New York State
Division of the Budget (2000-2004),
Chair, Public Authorities Control Board
(2000-2004) and Director, Local
Government Assistance Corporation
(2000-2004).
|
97
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS | APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 | Chief Secretary and Associate General Counsel,
333 W. Wacker Drive | Administrative 1988 182 formerly, Vice President and Assistant
Chicago, IL 60606 | Officer General Counsel, of Nuveen Investments,
LLC; Managing Director (since 2002),
Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management;
Vice President and Assistant Secretary of
NWQ Investment Management Company, LLC.
(since 2002), Nuveen Investments Advisers
Inc. (since 2002), Symphony Asset
Management LLC, and NWQ Investment
Management Company, LLC (since 2003),
Tradewinds Global Investors, LLC, and
Santa Barbara Asset Management, LLC
(since 2006); Nuveen HydePark Group LLC
and Richards & Tierney, Inc. (since
2007); Managing Director, Associate
General Counsel and Assistant Secretary
of Rittenhouse Asset Management, Inc.
(since 2003); Managing Director (since
2004) and Assistant Secretary (since
1994) of Nuveen Investments, Inc.,
Assistant Secretary (since 2003) of
Symphony Asset Management LLC.
o WILLIAMS ADAMS IV Executive Vice President, U.S. Structured
6/9/55 | Products of Nuveen Investments, LLC,
333 West Wacker Drive | Vice President 2007 120 (since 1999), prior thereto, Managing
Chicago, IL 60606 | Director of Structured Investments.
o JULIA L. ANTONATOS Managing Director (since 2005), formerly
9/22/63 | Vice President (since 2002) of Nuveen
333 W. Wacker Drive | Vice President 2004 182 Investments, LLC; Chartered Financial
Chicago, IL 60606 | Analyst.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004)
1/11/62 | previously, Vice President (1993-2004)
333 W. Wacker Drive | Vice President 2007 120 of Nuveen Investments, LLC.
Chicago, IL 60606 |
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 | Vice President Investments, LLC.
333 W. Wacker Drive | and Assistant 2000 182
Chicago, IL 60606 | Secretary
o PETER H. D'ARRIGO Vice President and Treasurer of Nuveen
11/28/67 | Investments, LLC and Nuveen Investments,
333 W. Wacker Drive | Vice President 1999 182 Inc.; Vice President and Treasurer of
Chicago, IL 60606 | Nuveen Asset Management (since 2002),
Nuveen Investments Advisers Inc. (since
2002); NWQ Investment Management Company,
LLC. (since 2002); Rittenhouse Asset
Management, Inc. (since 2003), Tradewinds
NWQ Global Investors, LLC (since 2006),
Santa Barbara Asset Management, LLC
(since 2006) and Nuveen HydePark Group,
LLC and Richards & Tierney, Inc. (since
2007); Treasurer of Symphony Asset
Management LLC (since 2003); formerly,
Vice President and Treasurer (1999-2004)
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3),
Chartered Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004), formerly,
10/24/45 | Vice President of Nuveen Investments,
333 W. Wacker Drive | Vice President 1998 182 LLC, Managing Director (2004) formerly,
Chicago, IL 60606 | Vice President (1998-2004) of Nuveen
Advisory Corp. and Nuveen Institutional
Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
o WILLIAM M. FITZGERALD Managing Director (since 2002), formerly,
3/2/64 | Vice President of Nuveen Investments,
333 W. Wacker Drive | Vice President 1995 182 LLC; Managing Director (1997-2004) of
Chicago, IL 60606 | Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Managing
Director (since 2001) of Nuveen Asset
Management; Vice President (since 2002)
of Nuveen Investments Advisers Inc.;
Chartered Financial Analyst.
|
98
------------------------------------------------------------------------------------------------------------------------------------
NAME, | POSITION(S) HELD YEAR FIRST NUMBER PRINCIPAL
BIRTHDATE | WITH THE FUNDS ELECTED OR OF PORTFOLIOS OCCUPATION(S)
AND ADDRESS | APPOINTED(4) IN FUND COMPLEX DURING PAST 5 YEARS
OVERSEEN
BY OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 | Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive | and Controller 1998 182 Investments, LLC; formerly, Vice
Chicago, IL 60606 | President and Funds Controller
(1998-2004) of Nuveen Investments, Inc.;
Certified Public Accountant.
o WALTER M. KELLY Vice President (since 2006) formerly,
2/24/70 | Chief Compliance Assistant Vice President and Assistant
333 West Wacker Drive | Officer and 2003 182 General Counsel (2003-2006) of Nuveen
Chicago, IL 60606 | Vice President Investments, LLC; Assistant Vice
President and Assistant Secretary of the
Nuveen Funds (2003-2006); previously,
Associate (2001-2003) at the law firm of
Vedder, Price, Kaufman & Kammholz.
o DAVID J. LAMB Vice President (since 2000) of Nuveen
3/22/63 | Investments, LLC; Certified Public
333 W. Wacker Drive | Vice President 2000 182 Accountant.
Chicago, IL 60606 |
o TINA M. LAZAR Vice President of Nuveen Investments, LLC
8/27/61 | (since 1999).
333 W. Wacker Drive | Vice President 2002 182
Chicago, IL 60606 |
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 | Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive | and Assistant 1988 182 Investments, LLC; formerly, Vice
Chicago, IL 60606 | Secretary President and Assistant Secretary of
Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Vice
President (since 2005) and Assistant
Secretary of Nuveen Investments, Inc.;
Vice President (since 2005) and Assistant
Secretary (since 1997) of Nuveen Asset
Management; Vice President (since 2000),
Assistant Secretary and Assistant General
Counsel (since 1998) of Rittenhouse Asset
Management, Inc.; Vice President and
Assistant Secretary of Nuveen Investments
Advisers Inc. (since 2002); NWQ
Investment Management Company, LLC (since
2002), Symphony Asset Management LLC
(since 2003), Tradewinds Global
Investors, LLC, Santa Barbara Asset
Management LLC (since 2006) and of Nuveen
HydePark Group, LLC and Richards &
Tierney, Inc. (since 2007).
o KEVIN J. MCCARTHY Vice President, Nuveen Investments, LLC
3/26/66 | Vice President (since 2007); Vice President, and
333 W. Wacker Drive | and Secretary 2007 182 Assistant Secretary, Nuveen Asset
Chicago, IL 60606 | Management, Rittenhouse Asset Management,
Inc., Nuveen Investment Advisers Inc.,
Nuveen Investment Institutional Services
Group LLC, NWQ Investment Management
Company, LLC, Tradewinds Global Investors
LLC, NWQ Holdings, LLC, Symphony Asset
Management LLC, Santa Barbara Asset
Management LLC, Nuveen HydePark Group,
LLC and Richards & Tierney, Inc. (since
2007); Vice President and Assistant
General Counsel, Nuveen Investments, Inc.
(since 2007). prior thereto, Partner,
Bell, Boyd & Lloyd LLP (1997-2007).
o JOHN V. MILLER Managing Director (since 2007), formerly,
4/10/67 | Vice President (2002-2007) of Nuveen
333 W. Wacker Drive | Vice President 2007 182 Investments, LLC; Chartered Financial
Chicago, IL 60606 | Analyst.
o JAMES F. RUANE Vice President, Nuveen Investments since
7/3/62 | Vice President 2007; prior thereto, Partner, Deloitte &
333 W. Wacker Drive | and Assistant 2007 182 Touche USA LLP (since 2005), formerly,
Chicago, IL 60606 | Secretary senior tax manager (since 2002);
Certified Public Accountant.
|
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, by reason of being the former Chairman and
Chief Executive Officer of Nuveen Investments, Inc. and having previously
served in various other capacities with Nuveen Investments, Inc. and its
subsidiaries. It is expected that Mr. Schwertfeger will resign from the
Board of Trustees by the end of the second quarter of 2008.
(2) For Insured Premium Income 2 (NPX), Insured Dividend Advantage (NVG) and
Insured Tax-Free Advantage (NEA), Board Members serve three year terms,
except for two board members who are elected by the holders of Preferred
Shares. The Board of Trustees for NAD, NXZ and NZF is divided into three
classes, Class I, Class II, and Class III, with each being elected to
serve until the third succeeding annual shareholders' meeting subsequent
to its election or thereafter in each case when its respective successors
are duly elected or appointed, except two board members are elected by the
holders of Preferred Shares to serve until the next annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed. For Insured Quality
(NQI), Insured Opportunity (NIO) and Premier Insured Income (NIF), the
Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
99
Annual Investment
Management Agreement
APPROVAL PROCESS
The Board Members are responsible for overseeing the performance of the
investment adviser to the Funds and determining whether to continue the advisory
arrangements. At the annual review meeting held on May 21, 2007 (the "May
Meeting"), the Board Members of the Funds, including the Independent Board
Members, unanimously approved the continuance of the Investment Management
Agreement between each Fund (each, a "Fund") and Nuveen Asset Management
("NAM"). The foregoing Investment Management Agreements with NAM are hereafter
referred to as the "Original Investment Management Agreements."
Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent
company of NAM, entered into a merger agreement providing for the acquisition of
Nuveen by Windy City Investments, Inc., a corporation formed by investors led by
Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the
"Transaction"). Each Original Investment Management Agreement, as required by
Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for
its automatic termination in the event of its "assignment" (as defined in the
1940 Act). Any change in control of the adviser is deemed to be an assignment.
The consummation of the Transaction will result in a change of control of NAM as
well as its affiliated sub-advisers and therefore cause the automatic
termination of each Original Investment Management Agreement, as required by the
1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on
July 31, 2007 (the "July Meeting"), the Board Members, including the Independent
Board Members, unanimously approved new Investment Management Agreements (the
"New Investment Management Agreements") with NAM on behalf of each Fund to take
effect immediately after the Transaction or shareholder approval of the new
advisory contracts, whichever is later. The 1940 Act also requires that each New
Investment Management Agreement be approved by the respective Fund's
shareholders in order for it to become effective. Accordingly, to ensure
continuity of advisory services, the Board Members, including the Independent
Board Members, unanimously approved Interim Investment Management Agreements to
take effect upon the closing of the Transaction if shareholders have not yet
approved the New Investment Management Agreements.
Because the information provided and considerations made at the annual review
continue to be relevant with respect to the evaluation of the New Investment
Management Agreements, the Board considered the foregoing as part of its
deliberations of the New Investment Management Agreements. Accordingly, as
indicated, the discussions immediately below outline the materials and
information presented to the Board in connection with the Board's prior annual
review and the analysis undertaken and the conclusions reached by Board Members
when determining to continue the Original Investment Management Agreements.
I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS
During the course of the year, the Board received a wide variety of materials
relating to the services provided by NAM and the performance of the Funds. At
each of its quarterly meetings, the Board reviewed investment performance and
various matters relating to the operations of the Funds and other Nuveen funds,
including the compliance program, shareholder services, valuation, custody,
distribution and other information relating to the nature, extent and quality of
services provided by NAM. Between the regularly scheduled quarterly meetings,
the Board Members received information on particular matters as the need arose.
In preparation for their considerations at the May Meeting, the Independent
Board Members received extensive materials, well in advance of the meeting,
which outlined or are related to, among other things:
o the nature, extent and quality of services provided by NAM;
o the organization and business operations of NAM, including the
responsibilities of various departments and key personnel;
100
o each Fund's past performance as well as the Fund's performance compared to
funds with similar investment objectives based on data and information
provided by an independent third party and to customized benchmarks;
o the profitability of Nuveen and certain industry profitability analyses
for unaffiliated advisers;
o the expenses of Nuveen in providing the various services;
o the advisory fees and total expense ratios of each Fund, including
comparisons of such fees and expenses with those of comparable,
unaffiliated funds based on information and data provided by an
independent third party (the "Peer Universe") as well as compared to a
subset of funds within the Peer Universe (the "Peer Group") of the
respective Fund (as applicable);
o the advisory fees NAM assesses to other types of investment products or
clients;
o the soft dollar practices of NAM, if any; and
o from independent legal counsel, a legal memorandum describing among other
things, applicable laws, regulations and duties in reviewing and approving
advisory contracts.
At the May Meeting, NAM made a presentation to, and responded to questions from,
the Board. Prior to and after the presentations and reviewing the written
materials, the Independent Board Members met privately with their legal counsel
to review the Board's duties in reviewing advisory contracts and considering the
renewal of the advisory contracts. The Independent Board Members, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and Securities and Exchange Commission ("SEC") directives relating to
the renewal of advisory contracts. As outlined in more detail below, the Board
Members considered all factors they believed relevant with respect to each Fund,
including, but not limited to, the following: (a) the nature, extent and quality
of the services to be provided by NAM; (b) the investment performance of the
Fund and NAM; (c) the costs of the services to be provided and profits to be
realized by Nuveen and its affiliates; (d) the extent to which economies of
scale would be realized; and (e) whether fee levels reflect those economies of
scale for the benefit of the Fund's investors. In addition, as noted, the Board
Members met regularly throughout the year to oversee the Funds. In evaluating
the Original Investment Management Agreements, the Board Members also relied
upon their knowledge of NAM, its services and the Funds resulting from their
meetings and other interactions throughout the year. It is with this background
that the Board Members considered each Original Investment Management Agreement.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering the renewal of the Original Investment Management Agreements, the
Board Members considered the nature, extent and quality of NAM's services. The
Board Members reviewed materials outlining, among other things, Nuveen's
organization and business; the types of services that NAM or its affiliates
provide and are expected to provide to the Funds; the performance record of the
applicable Fund (as described in further detail below); and, any initiatives
Nuveen had taken for the municipal fund product line. As noted, at the annual
review, the Board Members were already familiar with the organization,
operations and personnel of NAM due to the Board Members' experience in
governing the respective Funds and working with NAM on matters relating to the
Funds. With respect to personnel, the Board Members recognized NAM's investment
in additional qualified personnel throughout the various groups in the
organization and recommended to NAM that it continue to review staffing needs as
necessary. In addition, the Board Members reviewed materials describing the
current status and, in particular, the developments in 2006 with respect to
NAM's investment process, investment strategies (including additional tools used
in executing such strategies), personnel (including portfolio management and
research teams), trading process, hedging activities, risk management operations
(e.g., reviewing credit quality, duration limits, and derivatives use, as
applicable), and investment operations (such as enhancements to trading
procedures, pricing procedures, and client services). The Board Members
recognized NAM's investment of resources and efforts to continue to enhance and
refine its investment process.
101
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
In addition to advisory services, the Independent Board Members considered the
quality of administrative and non-advisory services provided by NAM and noted
that NAM and its affiliates provide the Funds with a wide variety of services
and officers and other personnel as are necessary for the operations of the
Funds, including:
o product management;
o fund administration;
o oversight by shareholder services and other fund service providers;
o administration of Board relations;
o regulatory and portfolio compliance; and
o legal support.
As the Funds operate in a highly regulated industry and given the importance of
compliance, the Board Members considered, in particular, Nuveen's compliance
activities for the Funds and enhancements thereto. In this regard, the Board
Members recognized the quality of Nuveen's compliance team. The Board Members
further noted Nuveen's negotiations with other service providers and the
corresponding reduction in certain service providers' fees at the May Meeting.
In addition to the foregoing services, the Board Members also noted the
additional services that NAM or its affiliates provide to Nuveen's closed-end
funds, including, in particular, its secondary market support activities. The
Board Members recognized Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds through a variety
of programs designed to raise investor and analyst awareness and understanding
of closed-end funds. These efforts include:
o maintaining shareholder communications;
o providing advertising for the Nuveen closed-end funds;
o maintaining its closed-end fund website;
o maintaining continual contact with financial advisers;
o providing educational symposia;
o conducting research with investors and financial analysis regarding
closed-end funds; and
o evaluating secondary market performance.
With respect to the Nuveen closed-end funds that utilize leverage through the
issuance of preferred shares ("Preferred Shares"), the Board Members noted
Nuveen's continued support for the holders of Preferred Shares by, among other
things:
o maintaining an in-house trading desk;
o maintaining a product manager for the Preferred Shares;
o developing distribution for Preferred Shares with new market participants;
o maintaining an orderly auction process;
o managing leverage and risk management of leverage; and
o maintaining systems necessary to test compliance with rating agency
criteria.
Based on their review, the Board Members found that, overall, the nature, extent
and quality of services provided (and expected to be provided) to the respective
Funds under the Original Investment Management Agreements were satisfactory.
102
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
At the May Meeting, the Board considered the investment performance for each
Fund, including the Fund's historic performance as well as its performance
compared to funds with similar investment objectives (the "Performance Peer
Group") based on data provided by an independent third party (as described
below). The Board Members also reviewed the respective Fund's portfolio level
performance (which does not reflect fund level fees and expenses, and leverage)
against customized benchmarks, described in further detail below.
In evaluating the performance information during the annual review at the May
Meeting, in certain instances, the Board Members noted that the closest
Performance Peer Group for a fund may not adequately reflect such fund's
investment objectives and strategies, thereby limiting the usefulness of the
comparisons of such fund's performance with that of the Performance Peer Group.
With respect to state-specific municipal funds, the Board Members also
recognized that certain funds do not have a corresponding state-specific
Performance Peer Group in which case their performance is measured against a
more general municipal category for various states. With respect to municipal
closed-end funds, funds that do not have corresponding state-specific
Performance Peer Groups are from states other than New York, California,
Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds
based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be
so small or the Nuveen funds may dominate the category to such an extent that
performance information for such funds was also compared to the more general
category for all states (other than New York and California).
The Board Members reviewed performance information including, among other
things, total return information compared with the Fund's Performance Peer Group
for the one-, three- and five-year periods (as applicable) ending December 31,
2006. The Board Members also reviewed the Fund's portfolio level performance
(which does not reflect fund level fees and expenses, and leverage) compared to
customized portfolio level benchmarks for the one- and three-year periods ending
December 31, 2006 (as applicable). The analysis was used to assess the efficacy
of investment decisions against appropriate measures of risk and total return,
within specific market segments. This information supplemented the Fund
performance information provided to the Board at each of its quarterly meetings.
Based on their review, the Board Members determined that each Fund's investment
performance over time had been satisfactory, subject to the following. With
respect to various municipal closed-end funds, the Board Members noted relative
total return underperformance in recent years compared to peers. The Board
Members reviewed materials and discussed with NAM the factors contributing to
the shift in performance including, among other things, the degree of risk
undertaken by peers compared to the municipal closed-end funds (such as through
the increased use of leverage or taking concentrated positions in high risk
credits). In addition, the Board Members also considered a fund's dividend
performance and the extent of any secondary market discounts. The Board Members
noted NAM's efforts to evaluate the factors affecting performance and determine
whether modification to a fund's investment strategy is necessary or
appropriate, and concluded that they were satisfied with the steps being taken.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
During the annual review, in evaluating the management fees and expenses
of a Fund, the Board reviewed, among other things, the Fund's advisory
fees (net and gross management fees) and total expense ratios (before and
after expense reimbursements and/or waivers) in absolute terms as well as
comparisons to the gross management fees (before waivers), net management
fees (after waivers) and total expense ratios (before and after waivers)
of comparable funds in the Peer Universe and the Peer Group. In reviewing
the fee schedule for a Fund, the Board Members considered the fund-level
and complex-wide breakpoint schedules (described in further detail below)
and any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain funds launched since 1999). The Board Members
further reviewed data regarding the construction of Peer Groups as well as
the methods of measurement for the fee and expense analysis and the
performance analysis. In certain cases, due to the small number of peers
in the Peer Universe, the Peer Universe and Peer Group had significant
overlap or even consisted entirely of the same unaffiliated funds. In
reviewing the comparisons of fee and expense information, the Board
Members recognized that in certain cases, the fund size relative to peers,
the small size and odd composition of the Peer Group (including
differences
103
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
in objectives and strategies), expense anomalies, timing of information
used or other factors impacting the comparisons thereby limited some of
the usefulness of the comparative data. The Board Members also considered
the differences in the use of leverage. Based on their review of the fee
and expense information provided, the Board Members determined that each
Fund's net total expense ratio was within an acceptable range compared to
peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
At the annual review, the Board Members further reviewed data comparing
the advisory fees of NAM with fees NAM charges to other clients. With
respect to municipal funds, such clients include NAM's municipal
separately managed accounts. In general, the advisory fees charged for
separate accounts are somewhat lower than the advisory fees assessed to
the Funds. The Board Members considered the differences in the product
types, including, but not limited to, the services provided, the structure
and operations, product distribution and costs thereof, portfolio
investment policies, investor profiles, account sizes and regulatory
requirements. The Board Members noted, in particular, that the range of
services provided to the Funds (as discussed above) is much more extensive
than that provided to separately managed accounts. As described in further
detail above, such additional services include, but are not limited to:
product management, fund administration, oversight of third party service
providers, administration of Board relations, and legal support. The Board
Members noted that the Funds operate in a highly regulated industry
requiring extensive compliance functions compared to other investment
products. Given the inherent differences in the products, particularly the
extensive services provided to the Funds, the Board Members believe such
facts justify the different levels of fees.
3. PROFITABILITY OF NUVEEN
In conjunction with its review of fees, the Board Members also considered
the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers) and its
financial condition. At the annual review, the Board Members reviewed the
revenues and expenses of Nuveen's advisory activities for the last three
years, the allocation methodology used in preparing the profitability data
as well as the 2006 Annual Report for Nuveen. The Board Members noted this
information supplemented the profitability information requested and
received during the year to help keep them apprised of developments
affecting profitability (such as changes in fee waivers and expense
reimbursement commitments). In this regard, the Board Members noted the
enhanced dialogue and information regarding profitability with NAM during
the year, including more frequent meetings and updates from Nuveen's
corporate finance group. The Board Members also reviewed data comparing
Nuveen's profitability with other fund sponsors prepared by three
independent third party service providers as well as comparisons of the
revenues, expenses and profit margins of various unaffiliated management
firms with similar amounts of assets under management prepared by Nuveen.
In reviewing profitability, the Board Members recognized the subjective
nature of determining profitability which may be affected by numerous
factors, including the allocation of expenses. Further, the Board Members
recognized the difficulties in making comparisons as the profitability of
other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may
not be representative of the industry and may be affected by, among other
things, the adviser's particular business mix, capital costs, types of
funds managed and expense allocations.
Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology
and assumptions for allocating expenses across product lines to determine
profitability. Last year, the Board Members also designated an Independent Board
Member as a point person for the Board to review the methodology determinations
during the year and any refinements thereto, which relevant information produced
from such process was reported to the full Board. In reviewing profitability,
the Board Members recognized Nuveen's increased investment in its fund business.
Based on its review, the Board Members concluded that Nuveen's level of
profitability for its advisory activities was reasonable in light of the
services provided.
In evaluating the reasonableness of the compensation, the Board Members also
considered other amounts paid to NAM by the Funds as well as any indirect
benefits (such as soft dollar arrangements, if any) NAM and its affiliates
receive, or are expected to receive, that are directly attributable to the
management of the
104
Funds, if any. See Section E below for additional information on indirect
benefits NAM may receive as a result of its relationship with the Funds. Based
on their review of the overall fee arrangements of each Fund, the Board Members
determined that the advisory fees and expenses of the Funds were reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
With respect to economies of scale, the Board Members recognized the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure the shareholders share in these benefits, the Board Members
reviewed and considered the breakpoints in the advisory fee schedules that
reduce advisory fees. In addition to advisory fee breakpoints, the Board also
approved a complex-wide fee arrangement in 2004. Pursuant to the complex-wide
fee arrangement, the fees of the funds in the Nuveen complex, including the
Funds, are reduced as the assets in the fund complex reach certain levels. In
evaluating the complex-wide fee arrangement, the Board Members noted that the
last complex-wide asset level breakpoint for the complex-wide fee schedule was
at $91 billion and that the Board Members anticipated further review and/or
negotiations prior to the assets of the Nuveen complex reaching such threshold.
Based on their review, the Board Members concluded that the breakpoint schedule
and complex-wide fee arrangement were acceptable and desirable in providing
benefits from economies of scale to shareholders, subject to further evaluation
of the complex-wide fee schedule as assets in the complex increase. See Section
II, Paragraph D - "Approval of the New Investment Management Agreements -
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for
information regarding subsequent modifications to the complex-wide fee.
E. INDIRECT BENEFITS
In evaluating fees, the Board Members also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. With respect to closed-end funds, the Board Members considered the
revenues received by affiliates of NAM for serving as agent at Nuveen's
preferred trading desk and for serving as a co-manager in the initial public
offering of new closed-end exchange traded funds.
In addition to the above, the Board Members considered whether NAM received any
benefits from soft dollar arrangements whereby a portion of the commissions paid
by a Fund for brokerage may be used to acquire research that may be useful to
NAM in managing the assets of the Funds and other clients. With respect to NAM,
the Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Board Members concluded that any indirect benefits
received by NAM as a result of its relationship with the Funds were reasonable
and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Board Members did not identify any single factor discussed previously as
all-important or controlling in their considerations to continue an advisory
contract. The Board Members, including the Independent Board Members,
unanimously concluded that the terms of the Original Investment Management
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the renewal of the Original
Investment Management Agreements be approved.
II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS
Following the May Meeting, the Board Members were advised of the potential
Transaction. As noted above, the completion of the Transaction would terminate
each of the Original Investment Management Agreements. Accordingly, at the July
Meeting, the Board of each Fund, including the Independent Board Members,
unanimously approved the New Investment Management Agreements on behalf of the
respective Funds. Leading up to the July Meeting, the Board Members had several
meetings and deliberations with and without Nuveen management present, and with
the advice of legal counsel, regarding the proposed Transaction as outlined
below.
On June 8, 2007, the Board Members held a special telephonic meeting to discuss
the proposed Transaction. At that meeting, the Board Members established a
special ad hoc committee comprised solely of Independent Board Members to focus
on the Transaction and to keep the Independent Board Members
105
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
updated with developments regarding the Transaction. On June 15, 2007, the ad
hoc committee discussed with representatives of NAM the Transaction and
modifications to the complex-wide fee schedule that would generate additional
fee savings at specified levels of complex-wide asset growth. Following the
foregoing meetings and several subsequent telephonic conferences among
Independent Board Members and independent counsel, and between Independent Board
Members and representatives of Nuveen, the Board met on June 18, 2007 to further
discuss the proposed Transaction. Immediately prior to and then again during the
June 18, 2007 meeting, the Independent Board Members met privately with their
independent legal counsel. At that meeting, the Board met with representatives
of MDP, of Goldman Sachs, Nuveen's financial adviser in the Transaction, and of
the Nuveen Board to discuss, among other things, the history and structure of
MDP, the terms of the proposed Transaction (including the financing terms), and
MDP's general plans and intentions with respect to Nuveen (including with
respect to management, employees, and future growth prospects). On July 9, 2007,
the Board also met to be updated on the Transaction as part of a special
telephonic Board meeting. The Board Members were further updated at a special
in-person Board meeting held on July 19, 2007 (one Independent Board Member
participated telephonically). Subsequently, on July 27, 2007, the ad hoc
committee held a telephonic conference with representatives of Nuveen and MDP to
further discuss, among other things, the Transaction, the financing of the
Transaction, retention and incentive plans for key employees, the effect of
regulatory restrictions on transactions with affiliates after the Transaction,
and current volatile market conditions and their impact on the Transaction.
In connection with their review of the New Investment Management Agreements, the
Independent Board Members, through their independent legal counsel, also
requested in writing and received additional information regarding the proposed
Transaction and its impact on the provision of services by NAM and its
affiliates.
The Independent Board Members received, well in advance of the July Meeting,
materials which outlined, among other things:
o the structure and terms of the Transaction, including MDP's co-investor
entities and their expected ownership interests, and the financing
arrangements that will exist for Nuveen following the closing of the
Transaction;
o the strategic plan for Nuveen following the Transaction;
o the governance structure for Nuveen following the Transaction;
o any anticipated changes in the operations of the Nuveen funds following
the Transaction, including changes to NAM's and Nuveen's day-to-day
management, infrastructure and ability to provide advisory, distribution
or other applicable services to the Funds;
o any changes to senior management or key personnel who work on Fund related
matters (including portfolio management, investment oversight, and
legal/compliance) and any retention or incentive arrangements for such
persons;
o any anticipated effect on each Fund's expense ratio (including advisory
fees) following the Transaction;
o any benefits or undue burdens imposed on the Funds as a result of the
Transaction;
o any legal issues for the Funds as a result of the Transaction;
o the nature, quality and extent of services expected to be provided to the
Funds following the Transaction, changes to any existing services and
policies affecting the Funds, and cost-cutting efforts, if any, that may
impact such services or policies;
o any conflicts of interest that may arise for Nuveen or MDP with respect to
the Funds;
o the costs associated with obtaining necessary shareholder approvals and
who would bear those costs; and
o from legal counsel, a memorandum describing the applicable laws,
regulations and duties in approving advisory contracts, including, in
particular, with respect to a change of control.
106
Immediately preceding the July Meeting, representatives of MDP met with the
Board to further respond to questions regarding the Transaction. After the
meeting with MDP, the Independent Board Members met with independent legal
counsel in executive session. At the July Meeting, Nuveen also made a
presentation and responded to questions. Following the presentations and
discussions of the materials presented to the Board, the Independent Board
Members met again in executive session with their counsel. As outlined in more
detail below, the Independent Board Members considered all factors they believed
relevant with respect to each Fund, including the impact that the Transaction
could be expected to have on the following: (a) the nature, extent and quality
of services to be provided; (b) the investment performance of the Funds; (c) the
costs of the services and profits to be realized by Nuveen and its affiliates;
(d) the extent to which economies of scale would be realized; and (e) whether
fee levels reflect those economies of scale for the benefit of investors. As
noted above, the Board Members had completed their annual review of the
respective Original Investment Management Agreements at the May Meeting and many
of the factors considered at the annual review were applicable to their
evaluation of the New Investment Management Agreements. Accordingly, in
evaluating the New Investment Management Agreements, the Board Members relied
upon their knowledge and experience with NAM and considered the information
received and their evaluations and conclusions drawn at the annual review. While
the Board reviewed many Nuveen funds at the July Meeting, the Independent Board
Members evaluated all information available to them on a fund-by-fund basis, and
their determinations were made separately in respect of each Fund.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, quality and extent of the services expected to be
provided by NAM under the New Investment Management Agreements, the Independent
Board Members considered, among other things, the expected impact, if any, of
the Transaction on the operations, facilities, organization and personnel of
NAM; the potential implications of regulatory restrictions on the Funds
following the Transaction; the ability of NAM and its affiliates to perform
their duties after the Transaction; and any anticipated changes to the current
investment and other practices of the Funds.
The Board noted that the terms of each New Investment Management Agreement,
including the fees payable thereunder, are substantially identical to those of
the Original Investment Management Agreement relating to the same Fund (with
both reflecting reductions to fee levels in the complex-wide fee schedule for
complex-wide assets in excess of $80 billion that have an effective date of
August 20, 2007). The Board considered that the services to be provided and the
standard of care under the New Investment Management Agreements are the same as
the Original Investment Management Agreements. The Board Members further noted
that key personnel who have responsibility for the Funds in each area, including
portfolio management, investment oversight, fund management, fund operations,
product management, legal/compliance and board support functions, are expected
to be the same following the Transaction. The Board Members considered and are
familiar with the qualifications, skills and experience of such personnel. The
Board also considered certain information regarding anticipated retention or
incentive plans designed to retain key personnel. Further, the Board Members
noted that no changes to Nuveen's infrastructure or operations as a result of
the Transaction were anticipated other than potential enhancements as a result
of an expected increase in the level of investment in such infrastructure and
personnel. The Board noted MDP's representations that it does not plan to have a
direct role in the management of Nuveen, appointing new management personnel, or
directly impacting individual staffing decisions. The Board Members also noted
that there were not any planned "cost cutting" measures that could be expected
to reduce the nature, extent or quality of services. After consideration of the
foregoing, the Board Members concluded that no diminution in the nature, quality
and extent of services provided to the Funds and their shareholders is expected.
In addition to the above, the Board Members considered potential changes in the
operations of each Fund. In this regard, the Board Members considered the
potential effect of regulatory restrictions on the Funds' transactions with
future affiliated persons. During their deliberations, it was noted that, after
the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership
interest in Nuveen at a level that will make Merrill Lynch an affiliated person
of Nuveen. The Board Members recognized that applicable law would generally
prohibit the Funds from engaging in securities transactions with Merrill Lynch
as principal, and would also impose restrictions on using Merrill Lynch for
agency transactions. They recognized that having MDP and Merrill Lynch as
affiliates may restrict the Nuveen funds' ability to invest in securities of
issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if
not bought directly from MDP or Merrill
107
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
Lynch as principal. They also recognized that various regulations may require
the Nuveen funds to apply investment limitations on a combined basis with
affiliates of Merrill Lynch. The Board Members considered information provided
by NAM regarding the potential impact on the Nuveen funds' operations as a
result of these regulatory restrictions. The Board Members considered, in
particular, the Nuveen funds that may be impacted most by the restricted access
to Merrill Lynch, including: municipal funds (particularly certain
state-specific funds), senior loan funds, taxable fixed income funds, preferred
security funds and funds that heavily use derivatives. The Board Members
considered such funds' historic use of Merrill Lynch as principal in their
transactions and information provided by NAM regarding the expected impact
resulting from Merrill Lynch's affiliation with Nuveen and available measures
that could be taken to minimize such impact. NAM informed the Board Members
that, although difficult to determine with certainty, its management did not
believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would
have a material adverse effect on any Nuveen fund's ability to pursue its
investment objectives and policies.
In addition to the regulatory restrictions considered by the Board, the Board
Members also considered potential conflicts of interest that could arise between
the Nuveen funds and various parties to the Transaction and discussed possible
ways of addressing such conflicts.
Based on its review along with its considerations regarding services at the
annual review, the Board concluded that the Transaction was not expected to
adversely affect the nature, quality or extent of services provided by NAM and
that the expected nature, quality and extent of such services supported approval
of the New Investment Management Agreements.
B. PERFORMANCE OF THE FUNDS
With respect to the performance of the Funds, the Board considered that the
portfolio management personnel responsible for the management of the Funds'
portfolios were expected to continue to manage the portfolios following the
completion of the Transaction.
In addition, the Board Members recently reviewed Fund performance at the May
Meeting, as described above, and determined that Fund performance was
satisfactory or better, subject to the following. With respect to certain
municipal closed-end funds with relative short-term underperformance, the Board
Members concluded NAM was taking steps to evaluate the factors affecting
performance and those steps would continue following the Transaction. Further,
the investment policies and strategies were not expected to change as a result
of the Transaction.
In light of the foregoing factors, along with the prior findings regarding
performance at the annual review, the Board concluded that its findings with
respect to performance supported approval of the New Investment Management
Agreements.
C. FEES, EXPENSES AND PROFITABILITY
As described in more detail above, during the annual review, the Board Members
considered, among other things, the management fees and expenses of the Funds,
the breakpoint schedules, and comparisons of such fees and expenses with peers.
At the annual review, the Board Members determined that the respective Fund's
advisory fees and expenses were reasonable. In evaluating the costs of services
to be provided by NAM under the New Investment Management Agreements and the
profitability of Nuveen for its advisory activities, the Board Members
considered their prior conclusions at the annual review and whether the
management fees or other expenses would change as a result of the Transaction.
As described above, the investment management fee is composed of two
components--a fund-level component and complex-wide level component. The fee
schedule under the New Investment Management Agreements to be paid to NAM is
identical to that under the Original Investment Management Agreements, including
the modified complex-wide fee schedule. As noted above, the Board recently
approved a modified complex-wide fee schedule that would generate additional fee
savings on complex-wide assets above $80 billion. The modifications have an
effective date of August 20, 2007 and are part of the Original Investment
Management Agreements. Accordingly, the terms of the complex-wide component
under the New Investment Management Agreements are the same as under the
Original Investment Management Agreements. The Board Members also noted that
Nuveen has committed for a period of two years from the
108
date of closing of the Transaction that it will not increase gross management
fees for any Nuveen fund and will not reduce voluntary expense reimbursement
levels for any Nuveen fund from their currently scheduled prospective levels.
Based on the information provided, the Board Members did not expect that overall
Fund expenses would increase as a result of the Transaction.
In addition, the Board Members considered that additional fund launches were
anticipated after the Transaction which would result in an increase in total
assets under management in the complex and a corresponding decrease in overall
management fees under the complex-wide fee schedule. Taking into consideration
the Board's prior evaluation of fees and expenses at the annual renewal, and the
modification to the complex-wide fee schedule, the Board determined that the
management fees and expenses were reasonable.
While it is difficult to predict with any degree of certainty the impact of the
Transaction on Nuveen's profitability, at the recent annual review, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities was reasonable. During the year, the Board Members had noted the
enhanced dialogue regarding profitability and the appointment of an Independent
Board Member as a point person to review methodology determinations and
refinements in calculating profitability. Given their considerations at the
annual review and the modifications to the complex-wide fee schedule, the Board
Members were satisfied that Nuveen's level of profitability for its advisory
activities continues to be reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
The Board Members have been cognizant of economies of scale and the potential
benefits resulting from the costs of a Fund being spread over a larger asset
base. To help ensure that shareholders share in the benefits derived from
economies of scale, the Board adopted the complex-wide fee arrangement in 2004.
At the May Meeting, the Board Members reviewed the complex-wide fee arrangements
and noted that additional negotiations may be necessary or appropriate as the
assets in the complex approached the $91 billion threshold. In light of this
assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting,
the ad hoc committee met with representatives of Nuveen to further discuss
modifications to the complex-wide fee schedule that would generate additional
savings for shareholders as the assets of the complex grow. The proposed terms
for the complex-wide fee schedule are expressed in terms of targeted cumulative
savings at specified levels of complex-wide assets, rather than in terms of
targeted marginal complex-wide fee rates. Under the modified schedule, the
schedule would generate additional fee savings beginning at complex-wide assets
of $80 billion in order to achieve targeted cumulative annual savings at $91
billion of $28 million on a complex-wide level (approximately $0.6 million
higher than those generated under the then current schedule) and generate
additional fee savings for asset growth above complex-wide assets of $91 billion
in order to achieve targeted annual savings at $125 billion of assets of
approximately $50 million on a complex-wide level (approximately $2.2 million
higher annually than that generated under the then current schedule). At the
July Meeting, the Board approved the modified complex-wide fee schedule for the
Original Investment Management Agreements and these same terms will apply to the
New Investment Management Agreements. Accordingly, the Board Members believe
that the breakpoint schedules and revised complex-wide fee schedule are
appropriate and desirable in ensuring that shareholders participate in the
benefits derived from economies of scale.
E. INDIRECT BENEFITS
During their recent annual review, the Board Members considered any indirect
benefits that NAM may receive as a result of its relationship with the Funds, as
described above. As the policies and operations of Nuveen are not anticipated to
change significantly after the Transaction, such indirect benefits should remain
after the Transaction. The Board Members further considered any additional
indirect benefits to be received by NAM or its affiliates after the Transaction.
The Board Members noted that other than benefits from its ownership interest in
Nuveen and indirect benefits from fee revenues paid by the Funds under the
management agreements and other Board-approved relationships, it was currently
not expected that MDP or its affiliates would derive any benefit from the Funds
as a result of the Transaction or transact any business with or on behalf of the
Funds (other than perhaps potential Fund acquisitions, in secondary market
transactions, of securities issued by MDP portfolio companies); or that Merrill
Lynch or its affiliates would derive any benefits from the Funds as a result of
the Transaction (noting that, indeed, Merrill Lynch would stand to experience
the discontinuation of principal transaction activity with the Nuveen funds and
likely would experience a noticeable reduction in the volume of agency
transactions with the Nuveen funds).
109
| ANNUAL INVESTMENT MANAGEMENT AGREEMENT
| APPROVAL PROCESS (continued)
F. OTHER CONSIDERATIONS
In addition to the factors above, the Board Members also considered the
following with respect to the Funds:
o Nuveen would rely on the provisions of Section 15(f) of the 1940 Act.
Section 15(f) provides, in substance, that when a sale of a controlling
interest in an investment adviser occurs, the investment adviser or any of
its affiliated persons may receive any amount or benefit in connection
with the sale so long as (i) during the three-year period following the
consummation of a transaction, at least 75% of the investment company's
board of directors must not be "interested persons" (as defined in the
1940 Act) of the investment adviser or predecessor adviser and (ii) an
"unfair burden" (as defined in the 1940 Act, including any interpretations
or no-action letters of the SEC) must not be imposed on the investment
company as a result of the transaction relating to the sale of such
interest, or any express or implied terms, conditions or understanding
applicable thereto. In this regard, to help ensure that an unfair burden
is not imposed on the Nuveen funds, Nuveen has committed for a period of
two years from the date of the closing of the Transaction (i) not to
increase gross management fees for any Nuveen fund; (ii) not to reduce
voluntary expense reimbursement levels for any Nuveen fund from their
currently scheduled prospective levels during that period; (iii) that no
Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use
Merrill Lynch as a broker with respect to portfolio transactions done on
an agency basis, except as may be approved in the future by the Compliance
Committee of the Board; and (iv) that NAM shall not cause the Funds and
other municipal funds that NAM manages, as a whole, to enter into
portfolio transactions with or through the other minority owners of
Nuveen, on either a principal or an agency basis, to a significantly
greater extent than both what one would expect an investment team to use
such firm in the normal course of business, and what NAM has historically
done, without prior Board or Compliance Committee approval (excluding the
impact of proportionally increasing the use of such other "minority
owners" to fill the void necessitated by not being able to use Merrill
Lynch).
o The Funds would not incur any costs in seeking the necessary shareholder
approvals for the New Investment Management Agreements (except for any
costs attributed to seeking shareholder approvals of Fund specific matters
unrelated to the Transaction, such as approval of Board Members, in which
case a portion of such costs will be borne by the applicable Funds).
o The reputation, financial strength and resources of MDP.
o The long-term investment philosophy of MDP and anticipated plans to grow
Nuveen's business to the benefit of the Nuveen funds.
o The benefits to the Nuveen funds as a result of the Transaction including:
(i) as a private company, Nuveen may have more flexibility in making
additional investments in its business; (ii) as a private company, Nuveen
may be better able to structure compensation packages to attract and
retain talented personnel; (iii) as certain of Nuveen's distribution
partners are expected to be equity or debt investors in Nuveen, Nuveen may
be able to take advantage of new or enhanced distribution arrangements
with such partners; and (iv) MDP's experience, capabilities and resources
that may help Nuveen identify and acquire investment teams or firms and
finance such acquisitions.
o The historic premium and discount levels at which the shares of the Nuveen
funds have traded at specified dates with particular focus on the premiums
and discounts after the announcement of the Transaction, taking into
consideration recent volatile market conditions and steps or initiatives
considered or undertaken by NAM to address discount levels.
110
G. CONCLUSION
The Board Members did not identify any single factor discussed previously as
all-important or controlling. The Board Members, including the Independent Board
Members, unanimously concluded that the terms of the New Investment Management
Agreements are fair and reasonable, that the fees therein are reasonable in
light of the services to be provided to each Fund and that the New Investment
Management Agreements should be approved and recommended to shareholders.
III. APPROVAL OF INTERIM CONTRACTS
As noted above, at the July Meeting, the Board Members, including the
Independent Board Members, unanimously approved the Interim Investment
Management Agreements. If necessary to assure continuity of advisory services,
the Interim Investment Management Agreements will take effect upon the closing
of the Transaction if shareholders have not yet approved the New Investment
Management Agreements. The terms of each Interim Investment Management Agreement
are substantially identical to those of the corresponding Original Investment
Management Agreement and New Investment Management Agreement, respectively,
except for certain term and escrow provisions. In light of the foregoing, the
Board Members, including the Independent Board Members, unanimously determined
that the scope and quality of services to be provided to the Funds under the
respective Interim Investment Management Agreement are at least equivalent to
the scope and quality of services provided under the applicable Original
Investment Management Agreement.
111
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 DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains 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 tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or 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 dividends and 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. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and 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 dividend or 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.
112
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
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 DIVIDENDS AND/OR 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.
113
NOTES
114
NOTES
115
NOTES
116
NOTES
117
Glossary of
TERMS USED in this REPORT
o 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.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o INVERSE FLOATERS: Inverse floating rate securities are created by
depositing a municipal bond, typically with a fixed interest rate, into a
special purpose trust created by a broker-dealer. This trust, in turn, (a)
issues floating rate certificates typically paying short-term tax-exempt
interest rates to third parties in amounts equal to some fraction of the
deposited bond's par amount or market value, and (b) issues an inverse
floating rate certificate (sometimes referred to as an "inverse floater")
to an investor (such as a Fund) interested in gaining investment exposure
to a long-term municipal bond. The income received by the holder of the
inverse floater varies inversely with the short-term rate paid to the
floating rate certificates' holders, and in most circumstances the holder
of the inverse floater bears substantially all of the underlying bond's
downside investment risk. The holder of the inverse floater typically also
benefits disproportionately from any potential appreciation of the
underlying bond's value. Hence, an inverse floater essentially represents
an investment in the underlying bond on a leveraged basis.
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated
by subtracting the liabilities of the Fund (including any MuniPreferred
shares issued in order to leverage the Fund) from its total assets and
then dividing the remainder by the number of shares outstanding. Fund NAVs
are calculated at the end of each business day.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
118
| Other Useful INFORMATION
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
twelve-month period ended June 30, 2007, and (iii) a description of the policies
and procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available 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 1-202-942-8090
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 450 Fifth Street NW, Washington, D.C. 20549.