UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-09475
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Nuveen Insured Dividend Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
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(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
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Date of fiscal year end: October 31st
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Date of reporting period: April 30th
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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.
SEMIANNUAL REPORT April 30, 2003
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
INSURED QUALITY
NQI
INSURED OPPORTUNITY
NIO
PREMIER INSURED
INCOME
NIF
INSURED PREMIUM
INCOME 2
NPX
INSURED DIVIDEND
ADVANTAGE
NVG
INSURED TAX-FREE
ADVANTAGE
NEA
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
FASTER INFORMATION
RECEIVE YOUR
NUVEEN FUND REPORT
ELECTRONICALLY
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Registering is easy and only takes a few minutes (see instructions at right).
SOME COMMON CONCERNS:
WILL MY E-MAIL ADDRESS BE DISTRIBUTED TO OTHER COMPANIES?
No, your e-mail address is strictly confidential and will not be used for
anything other than notification of shareholder information.
WHAT IF I CHANGE MY MIND AND WANT TO RECEIVE INVESTOR MATERIALS THROUGH REGULAR
MAIL DELIVERY AGAIN?
If you decide you do not like receiving your reports electronically, it's a
simple process to go back to regular mail delivery.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.INVESTORDELIVERY.COM
2 Refer to the address sheet that accompanied this report. Enter the personal
13-CHARACTER ENROLLMENT NUMBER imprinted near your name.
3 You'll be taken to a page with several options. Select the NEW
ENROLLMENT-CREATE screen. Once there, enter your e-mail address (e.g.
yourID@providerID.com), and a personal, 4-digit PIN number of your choice.
(Pick a number that's easy to remember.)
4 Click Submit. Confirm the information you just entered is correct, then
click Submit again.
5 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
6 Use this same process if you need to change your registration information
or cancel internet viewing.
IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
1 Go to WWW.NUVEEN.COM
2 Select ACCESS YOUR ACCOUNT. Select the E-REPORT ENROLLMENT section. Click
on Enrollment Today.
3 You'll be taken to a screen that asks for your Social Security number and
e-mail address. Fill in this information, then click Enroll.
4 You should get a confirmation e-mail within 24 hours. If you do not, go
back through these steps to make sure all the information is correct.
5 Use this same process if you need to change your registration information
or cancel internet viewing.
Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: "NO ONE KNOWS WHAT THE FUTURE WILL BRING, WHICH IS WHY WE THINK A
WELL-BALANCED PORTFOLIO ... IS AN IMPORTANT COMPONENT IN ACHIEVING YOUR
LONG-TERM FINANCIAL GOALS."
Dear
SHAREHOLDER
Once again, I am pleased to report that over the most recent reporting period
your Fund continued to provide you with attractive tax-free monthly income. For
more specific information about the performance of your Fund, please see the
Portfolio Manager's Comments and Performance Overview sections of this report.
With interest rates at historically low levels, many have begun to wonder how
fixed-income investments will perform if interest rates begin to rise. 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 municipal bond investments like
your Nuveen Fund can be important building blocks in a portfolio crafted to
perform well through a variety of market conditions.
I'd also like to direct your attention to the inside front cover of this report,
which explains the quick and easy process to begin receiving Fund reports like
this via e-mail and the internet. Thousands of Nuveen Fund shareholders already
have signed-up, and they are getting their Fund information faster and more
conveniently than ever. I urge you to consider joining them.
Since 1898, Nuveen Investments has offered financial products and solutions that
incorporate careful research, diversification, and the application of
conservative risk-management principles. We are grateful that you have chosen us
as a partner as you pursue your financial goals. We look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
June 16, 2003
1
Nuveen Municipal Closed-End Exchange-Traded Funds
(NQI, NIO, NIF, NPX, NVG, NEA)
Portfolio Manager's
COMMENTS
Portfolio manager Tom O'Shaughnessy reviews economic and market conditions, key
investment strategies, and the recent performance of the Funds. With 20 years of
investment experience at Nuveen, Tom has managed NEA since its inception in
November 2002, and assumed management responsibility for NQI, NIO, NIF, NPX and
NVG in January 2003.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE PERIOD
ENDED APRIL 30, 2003?
The underlying economic and market conditions have not changed much since our
last shareholder report dated October 31, 2002. We believe the most influential
factors shaping the U.S. economy and the municipal market during this reporting
period continued to be the sluggish pace of economic growth and interest rates
that remained at 40-year lows. At the same time, continued geopolitical
concerns, centering on the ongoing threat of terrorism and the situation in
Iraq, also had an impact during this reporting period, particularly in terms of
investor sentiment.
In the municipal market, the slow economic recovery and the continued lack of
inflationary pressures created conditions that helped many bonds perform well
during this reporting period. As of April 2003, inflation was running at 1.5%
annualized, the lowest annual rate in 37 years. Following a record year in 2002,
municipal issuance nationwide remained very heavy during the first four months
of 2003, with $113.5 billion in new municipal bonds coming to market, an
increase of 21% over the same period in 2002. Despite the large supply of new
municipal bonds, firm or improving prices indicated continued strong demand from
investors. In particular, institutional investors such as property/ casualty
insurance companies, hedge funds, arbitrage accounts and pension funds were
active buyers in the municipal market over much of this reporting period.
HOW DID THESE FUNDS PERFORM OVER THE TWELVE-MONTH PERIOD ENDED APRIL 30, 2003?
Individual results for these Funds, as well as for appropriate benchmarks, are
presented in the accompanying table.
TOTAL RETURN LEHMAN LIPPER
MARKET YIELD ON NAV TOTAL RETURN1 AVERAGE2
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1 YEAR 1 YEAR 1 YEAR
TAXABLE- ENDED ENDED ENDED
4/30/03 EQUIVALENT3 4/30/03 4/30/03 4/30/03
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NQI 6.07% 8.67% 12.57% 9.42% 11.66%
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NIO 6.03% 8.61% 13.54% 9.42% 11.66%
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NIF 6.02% 8.60% 13.19% 9.42% 11.66%
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NPX 5.92% 8.46% 12.94% 9.42% 11.66%
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NVG 6.17% 8.81% 15.36% 9.42% 11.66%
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NEA 6.18% 8.83% N/A - -
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Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
1 The total annual returns on common share net asset value (NAV) for these
insured Funds are compared with the total annual return of the Lehman
Brothers Insured Municipal Bond Index, an unleveraged index comprising a
broad range of insured municipal bonds. Results for the Lehman index do not
reflect any expenses.
2 The total returns of these Nuveen Funds are compared with the average
annualized return of the 22 funds in the Lipper Insured Leveraged Municipal
Debt Funds category. Fund and Lipper returns assume reinvestment of
dividends.
3 The taxable-equivalent yield represents the yield that must be earned on a
taxable investment in order to equal the yield of the Nuveen Fund on an
after-tax basis. The taxable-equivalent yield is based on the Fund's market
yield on the indicated date and a federal income tax rate of 30%.
2
For the twelve months ended April 30, 2003, all five of the Funds in this report
having at least one year of performance history outperformed the unleveraged,
unmanaged Lehman Brothers Insured Municipal Bond Index and their Lipper Fund
peer group average.
Much of this outperformance relative to the Lehman Index is attributable to the
Funds' use of leverage, a strategy that adds volatility but can provide the
opportunity for additional income for common shareholders. Leverage can work
especially well during periods of low short-term interest rates, as was the case
during the twelve-month period.
In addition to leverage, the relative performances of these Funds were
influenced by factors such as call exposure, credit selection, and the generally
strong overall performance of AAA rated securities over the measurement period.
During the twelve-month period, the total return performance of the insured
municipal sector of the Lehman index topped that of the municipal market as a
whole by almost 100 basis points.
HOW DID THE MARKET ENVIRONMENT AFFECT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates at historically low levels, the dividend-payment
capabilities of these Funds benefited from their use of leverage. The amount of
this benefit is tied in part to the short-term rates the Funds pay their
MuniPreferred(R) shareholders. Low short-term rates can enable the Funds to
reduce the amount of income they pay MuniPreferred holders, which can
potentially leave more earnings to support common share dividends. During the
twelve months ended April 30, 2003, the continued low level of short-term
interest rates enabled us to implement four dividend increases in NQI and three
each in NIO, NIF, and NPX. The two newer Funds - NVG and NEA - have continued to
pay steady, attractive dividends since their first dividend declarations in May
2002 and January 2003, respectively.
Over the course of the twelve-month period, strong demand and favorable market
conditions helped to boost the share prices and NAVs of all six of the Funds in
this report. As of April 30, 2003, NQI and NPX had moved from trading at
discounts to their common share net asset values to trading
3
at premiums, NIO was trading at virtually the same level as its NAV, and NIF's
premium had widened. For NVG, the increase in NAV outpaced the rise in share
price, and this Fund was trading at a discount. Through April 30, 2003, NEA has
traded at a premium since its introduction in November 2002. (See charts on
individual Performance Overview pages.)
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE PERIOD ENDED
APRIL 30, 2003?
Over the reporting period, we continued to place strong emphasis on diversifying
the Funds' port-folios, enhancing call protection and supporting their future
dividend-paying capabilities. Since these Funds primarily hold insured bonds,
which are not subject to normal credit risk, our risk management efforts focused
on interest rate risk. Interest rate risk is the risk that the value of a Fund's
portfolio will decline when market interest rates rise (since bond prices move
in the opposite direction of interest rates). The longer the duration4 of a
Fund's portfolio, the greater its interest rate risk. Over the past year, we
worked systematically to shorten the Funds' durations, which we believe will
help us better control interest rate risk over time and enhance the Funds'
ability to produce attractive returns.
In line with our moderated duration strategy, we concentrated on finding value
in the long- intermediate part of the yield curve (i.e., bonds that mature in
about 20 years). In many cases, bonds in this part of the curve were offering
yields similar to those of longer bonds but had less inherent interest rate
risk. Over the period, the purchase of bonds in this part of the curve helped to
shorten the durations of these Funds, making their portfolios less sensitive to
any changes in the interest rate environment while still allowing them to
provide competitive yields.
In general, the heavy issuance in the municipal market over the past year
provided us with increased opportunities to purchase the types of insured bond
structures that we favor. We also continued to look for individual issues that
we believed would perform well regardless of the future direction of interest
rates. The four older Funds maintained their strong weightings
4 Duration is a measure of a Fund's NAV volatility in reaction to interest
rate movements. Fund duration, also known as leverage-adjusted duration,
takes into account the leveraging process for a Fund and therefore is
generally longer than the duration of the actual portfolio of individual
bonds that make up the Fund. References to duration in this commentary are
intended to indicate Fund duration unless otherwise noted.
4
in healthcare bonds, the top performing group among the Lehman revenue sectors
for the twelve months ended April 30, 2003.
Given the current geopolitical and economic climate, we continued to believe
that strong credit quality remained a vital requirement for the Funds. As of
April 30, 2003, the four older Funds were 100% invested in AAA rated, U.S.
guaranteed and/or insured bonds. NVG and NEA held 93% and 99%, respectively, of
their portfolios in AAA rated bonds, although these two Funds are allowed to
invest up to 20% of their portfolios in non-insured but investment-grade quality
bonds. In addition, NEA may not invest in any bonds whose interest payments are
subject to the federal alternative minimum tax.
WHAT IS YOUR OUTLOOK FOR THE MUNICIPAL MARKET IN GENERAL AND THESE FUNDS IN
PARTICULAR?
We think new issuance volume should remain strong, as issuers continue to take
advantage of the low rate environment. Adding to our expectations for continued
strong issuance are the budget deficits affecting many states, and their
continued need to raise money for infrastructure, education and healthcare
needs. Over coming months, we will continue to closely monitor the states'
budgetary situations to watch for any potential impact on credit ratings.
Looking at the bond call exposure, we believe that these Funds offer good levels
of call protection during the remainder of 2003 and through 2004. As of April
30, 2003, the portion of the four older Funds eligible for calls over this
period ranged from 8% to 12%. The two newer Funds - NVG and NEA - will not face
any significant call exposure for several years. The number of actual calls
during this time will depend largely on market interest rates and the specific
situations of individual issuers.
In the coming months, our primary goal will continue to be moderating the Funds'
durations. In addition, we plan to watch for opportunities to purchase or swap
for issues that we perceive to be under-valued, particularly in sectors of the
market that have recently underperformed. The expected strong supply of new
bonds should help us in this effort.
5
Nuveen Insured Quality Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2003
NQI
Pie Chart:
CREDIT QUALITY
Insured 89%
Insured and U.S. Guaranteed 10%
U.S. Guaranteed 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.71
--------------------------------------------------
Common Share Net Asset Value $16.11
--------------------------------------------------
Market Yield 6.07%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.67%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $611,343
--------------------------------------------------
Average Effective Maturity (Years) 21.46
--------------------------------------------------
Leverage-Adjusted Duration 7.97
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 18.80% 12.57%
--------------------------------------------------
5-Year 8.33% 7.19%
--------------------------------------------------
10-Year 6.85% 6.78%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
U.S. Guaranteed 11%
--------------------------------------------------
Tax Obligation/General 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.076
6/02 0.0785
7/02 0.0785
8/02 0.0785
9/02 0.08
10/02 0.08
11/02 0.08
12/02 0.0815
1/03 0.0815
2/03 0.0815
3/03 0.0845
4/03 0.0845
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 15.22
15.19
15.26
15.16
15.3
15.32
15.63
15.65
15.76
15.87
16.1
15.87
15.91
15.95
16.11
16.05
15.88
16
16.13
16.21
16.24
16.3
16.39
16.08
15.26
15.19
15.55
15.41
15.48
15.5
15.65
15.64
15.55
15.48
15.61
15.95
15.6
15.67
15.87
15.94
15.9
16.08
16.01
16.25
16.21
16.17
15.92
16.38
16.4
16.42
16.6
4/30/03 16.53
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.1191 per share.
6
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance
OVERVIEW As of April 30, 2003
NIO
Pie Chart:
CREDIT QUALITY
Insured 87%
Insured and U.S. Guaranteed 11%
U.S. Guaranteed 2%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.12
--------------------------------------------------
Common Share Net Asset Value $16.14
--------------------------------------------------
Market Yield 6.03%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.61%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,308,514
--------------------------------------------------
Average Effective Maturity (Years) 21.21
--------------------------------------------------
Leverage-Adjusted Duration 8.46
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.60% 13.54%
--------------------------------------------------
5-Year 6.88% 7.01%
--------------------------------------------------
10-Year 7.37% 6.97%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 21%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.0765
6/02 0.079
7/02 0.079
8/02 0.079
9/02 0.08
10/02 0.08
11/02 0.08
12/02 0.08
1/03 0.08
2/03 0.08
3/03 0.081
4/03 0.081
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 15.11
15
14.85
15.01
15.1
15.18
15.04
15.3
15.53
15.6
15.73
15.68
15.3
15.78
15.81
15.65
15.79
15.81
15.89
15.84
15.89
15.96
16.15
15.75
14.89
15.17
15.27
15.35
15.18
14.95
15.03
15.32
15.24
15.33
15.49
15.67
15.34
15.6
15.65
15.73
15.85
15.82
15.78
15.93
15.8
15.7
15.54
15.86
15.85
15.9
15.92
4/30/03 15.96
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.1285 per share.
7
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance
OVERVIEW As of April 30, 2003
NIF
Pie Chart:
CREDIT QUALITY
Insured 84%
Insured and U.S. Guaranteed 2%
U.S. Guaranteed 14%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $16.24
--------------------------------------------------
Common Share Net Asset Value $16.06
--------------------------------------------------
Market Yield 6.02%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.60%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $310,654
--------------------------------------------------
Average Effective Maturity (Years) 18.54
--------------------------------------------------
Leverage-Adjusted Duration 9.60
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 14.42% 13.19%
--------------------------------------------------
5-Year 7.21% 6.66%
--------------------------------------------------
10-Year 7.15% 6.75%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 20%
--------------------------------------------------
Tax Obligation/General 16%
--------------------------------------------------
U.S. Guaranteed 16%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.0785
6/02 0.0795
7/02 0.0795
8/02 0.0795
9/02 0.0805
10/02 0.0805
11/02 0.0805
12/02 0.0805
1/03 0.0805
2/03 0.0805
3/03 0.0815
4/03 0.0815
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 15.25
15.32
15.35
15.32
15.27
15.31
15.24
15.62
15.68
15.85
15.9
15.89
15.9
15.9
15.98
15.75
15.75
15.76
15.99
15.9
15.94
15.9
16.12
16
15.2
15.32
15.7
15.29
15.19
15.22
15.38
15.46
15.34
15.2
15.55
15.9
15.39
15.53
15.65
15.78
15.87
15.78
15.94
15.9
16.06
16.04
15.77
15.95
16.13
15.99
16.03
4/30/03 16.14
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2002 of $0.0360 per share.
8
Nuveen Insured Premium Income Municipal Fund 2
Performance
OVERVIEW As of April 30, 2003
NPX
Pie Chart:
CREDIT QUALITY
Insured 89%
Insured and U.S. Guaranteed 11%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $14.59
--------------------------------------------------
Common Share Net Asset Value $14.54
--------------------------------------------------
Market Yield 5.92%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.46%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $542,033
--------------------------------------------------
Average Effective Maturity (Years) 17.21
--------------------------------------------------
Leverage-Adjusted Duration 7.05
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 15.09% 12.94%
--------------------------------------------------
5-Year 9.18% 7.16%
--------------------------------------------------
Since Inception 5.83% 6.09%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 22%
--------------------------------------------------
Transportation 15%
--------------------------------------------------
Healthcare 12%
--------------------------------------------------
Tax Obligation/Limited 12%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
5/02 0.0685
6/02 0.0695
7/02 0.0695
8/02 0.0695
9/02 0.0705
10/02 0.0705
11/02 0.0705
12/02 0.0705
1/03 0.0705
2/03 0.0705
3/03 0.072
4/03 0.072
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 13.45
13.68
13.52
13.61
13.62
13.74
13.8
13.9
13.93
13.99
14.26
14.06
13.77
14
14.2
14.05
14.15
14.23
14.19
14.2
14.19
14.27
14.4
14.18
13.62
13.53
13.87
13.92
13.82
13.32
13.74
13.85
13.85
13.73
13.88
13.98
13.99
13.87
13.88
14.14
14.21
14.13
14.23
14.31
14.25
14.15
13.91
14.29
14.26
14.31
14.33
4/30/03 14.42
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
9
Nuveen Insured Dividend Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2003
NVG
Pie Chart:
CREDIT QUALITY
Insured 84%
AAA (uninsured) 9%
AA (uninsured) 7%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.08
--------------------------------------------------
Common Share Net Asset Value $15.77
--------------------------------------------------
Market Yield 6.17%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.81%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $469,934
--------------------------------------------------
Average Effective Maturity (Years) 21.39
--------------------------------------------------
Leverage-Adjusted Duration 10.01
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
1-Year 7.62% 15.36%
--------------------------------------------------
Since Inception 6.98% 16.00%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 25%
--------------------------------------------------
Transportation 22%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Education and Civic Organizations 12%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
Bar Chart:
2002-2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
5/02 0.0775
6/02 0.0775
7/02 0.0775
8/02 0.0775
9/02 0.0775
10/02 0.0775
11/02 0.0775
12/02 0.0775
1/03 0.0775
2/03 0.0775
3/03 0.0775
4/03 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/02 15.03
15.01
15.06
15.11
15.11
15.12
15.06
14.91
14.98
15.07
15.15
15.18
15.14
15.16
15.19
15.4
15.07
15.37
15.21
15.4
15.46
15.55
15.44
15.35
14.83
14.5
14.99
14.96
14.86
14.6
14.59
14.72
14.46
14.19
14.5
15.01
14.45
14.8
14.84
14.92
15.01
14.91
15
15.04
14.94
14.95
14.84
14.93
14.95
15.05
15.04
4/30/03 15.02
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
2 The Fund also paid shareholders a net ordinary income distribution in
December 2002 of $0.1051 per share.
10
Nuveen Insured Tax-Free Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2003
NEA
Pie Chart:
CREDIT QUALITY
Insured 95%
AAA (uninsured) 4%
A (uninsured) 1%
PORTFOLIO STATISTICS
--------------------------------------------------
Share Price $15.05
--------------------------------------------------
Common Share Net Asset Value $14.87
--------------------------------------------------
Market Yield 6.18%
--------------------------------------------------
Taxable-Equivalent Yield
(Federal Income Tax Rate)1 8.83%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $275,111
--------------------------------------------------
Average Effective Maturity (Years) 22.18
--------------------------------------------------
Leverage-Adjusted Duration 11.44
--------------------------------------------------
CUMULATIVE TOTAL RETURN (Inception 11/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
Since Inception 2.43% 5.98%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 31%
--------------------------------------------------
Tax Obligation/General 25%
--------------------------------------------------
Utilities 17%
--------------------------------------------------
Water and Sewer 10%
--------------------------------------------------
Transportation 8%
--------------------------------------------------
Bar Chart:
2003 MONTHLY TAX-FREE DIVIDENDS PER SHARE
1/03 0.0775
2/03 0.0775
3/03 0.0775
4/03 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/22/02 15
15
15
15.01
15
14.66
14.8
14.94
14.94
14.94
14.92
15
14.99
14.93
14.97
14.66
14.83
14.96
15.17
15
15.08
4/30/03 14.97
1 Taxable-equivalent yield represents the yield on a taxable investment
necessary to equal the yield of the Nuveen Fund on an after-tax basis. It
is calculated using the current market yield and a federal income tax rate
of 30%.
11
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6%
$ 9,200 City of Phoenix Civic Improvement Corporation, Arizona, Airport 7/12 at 100.00 AAA $ 9,493,204
Revenue Bonds, Series 2002B Senior Lien, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.2%
7,085 Arkansas Development Finance Authority, Single Family 7/05 at 102.00 AAA 7,462,418
Mortgage Revenue Bonds, 1995 Series B, Mortgage-Backed
Securities Program, 6.700%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 24.2%
8,370 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 9,735,566
Series 1991, Alameda County Public Facilities Corporation,
6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured
12,695 Antioch Area Public Facilities Financing Agency, California, 8/03 at 101.00 AAA 12,840,866
Special Tax Bonds, Community Facilities District No. 1989-1,
5.000%, 8/01/18 - FGIC Insured
13,175 California Pollution Control Financing Authority, Pollution 9/09 at 101.00 AAA 13,852,722
Control Revenue Refunding Bonds, Southern California
Edison Company, Series 1999A, 5.450%, 9/01/29 -
MBIA Insured
10,000 State of California, General Obligation Bonds, Series 2002, 10/12 at 100.00 AAA 10,222,000
5.000%, 10/01/32 - MBIA Insured
20,500 State of California, General Obligation Bonds, Series 2002 4/12 at 100.00 AAA 21,015,165
Refunding, 5.000%, 4/01/27 - AMBAC Insured
5,500 California Statewide Communities Development Authority, 7/04 at 102.00 AAA 5,887,695
Certificates of Participation, The Salk Institute for Biological
Studies, San Diego, California, 6.200%, 7/01/24 -
CONNIE LEE Insured
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Refunding Revenue Bonds, Series 1999:
22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA 7,225,794
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 4,473,700
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 7,026,000
5,000 Garden Grove, California, Certificates of Participation, Financing 3/12 at 101.00 AAA 5,202,200
Project, Series 2002A, 5.125%, 3/01/32 - AMBAC Insured
5,000 Inland Empire Solid Waste Financing Authority, California, 8/06 at 102.00 AAA 5,756,150
Revenue Bonds, 1996 Series B, Landfill Improvement Financing
Project, 6.000%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/01/06) - FSA Insured
5,533 Moreno Valley Public Financing Authority, California, Assisted 1/12 at 105.00 Aaa 6,693,713
Living Housing Revenue Bonds, GNMA Collateralized - CDC
Assisted Living Project, Series 2000A, 7.500%, 1/20/42
6,430 Ontario Redevelopment Financing Authority, San Bernardino 8/03 at 102.00 AAA 6,625,151
County, California, 1993 Revenue Bonds, Ontario Redevelopment
Project No. 1, 5.850%, 8/01/22 - MBIA Insured
Airports Commission of the City and County of San Francisco,
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27A:
7,200 5.125%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 7,428,312
22,690 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 23,127,690
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.0%
1,500 Joint School District No. 28, Adams and Arapahoe Counties, 12/13 at 100.00 AAA 1,598,520
Colorado, General Obligation Bonds, Series 2003A,
5.125%, 12/01/21 - FSA Insured
5,630 E-470 Public Highway Authority, Arapahoe County, Colorado, 8/05 at 103.00 AAA 6,402,605
Capital Improvement Trust Fund Highway Revenue Bonds,
E-470 Project, Vehicle Registration Fee Bonds, 6.150%, 8/31/26
(Pre-refunded to 8/31/05) - MBIA Insured
3,750 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 4,046,775
Series 1996D, 5.500%, 11/15/25 - MBIA Insured
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4%
$ 8,000 Washington Convention Center Authority, Washington, D.C., 10/08 at 101.00 AAA $ 8,274,480
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 6.3%
5,450 Florida Housing Finance Agency, GNMA/FNMA Single Family 7/04 at 102.00 AAA 5,644,347
Mortgage Revenue Bonds, 1994 Series B, 6.650%, 7/01/26
(Alternative Minimum Tax)
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 21,424,000
5.750%, 10/01/25 (Alternative Minimum Tax) - FSA Insured
4,115 Housing Finance Authority of Miami-Dade County, Florida, 7/11 at 100.00 AAA 4,374,122
Multifamily Housing Revenue Bonds, Series 2001-2A, Monterey
Pointe Apartments Project, 5.850%, 7/01/37 (Alternative
Minimum Tax) - FSA Insured
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 7,219,940
Miami International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 6.8%
State of Hawaii, Airports System Revenue Bonds, Refunding
Series 2000B:
8,785 6.625%, 7/01/18 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,378,072
7,000 6.000%, 7/01/19 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 7,778,610
5,315 Department of Budget and Finance of the State of Hawaii, 6/03 at 102.00 AAA 5,446,493
Special Purpose Revenue Bonds, Hawaiian Electric Company,
Inc. and Subsidiaries Projects, Series 1992, 6.550%, 12/01/22
(Alternative Minimum Tax) (Pre-refunded to 6/01/03) -
MBIA Insured
16,180 Department of Budget and Finance of the State of Hawaii, 5/06 at 101.00 AAA 18,021,769
Special Purpose Revenue Bonds, Hawaiian Electric Company,
Inc. and Subsidiaries Project, Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.1%
10,000 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 11,201,100
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05) -
AMBAC Insured
6,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 6,560,460
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/12 - MBIA Insured
9,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 10,268,930
General Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/15 (Alternative Minimum Tax) -
AMBAC Insured
6,825 Public Building Commission of Chicago, Illinois, Building Revenue 12/03 at 102.00 AAA 7,146,935
Bonds, Series 1993A, Board of Education of the City of Chicago,
5.750%, 12/01/18 (Pre-refunded to 12/01/03) - MBIA Insured
7,165 Illinois Development Finance Authority, Revenue Bonds, Bradley 8/09 at 101.00 AAA 7,748,231
University Project, Series 1999, 5.500%, 8/01/29 -
AMBAC Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Series 2000, 2/10 at 101.00 AAA 27,061,000
Iowa Health System, 5.875%, 2/15/30 - AMBAC Insured
15,785 State of Illinois, General Obligation Bonds, Illinois FIRST 4/12 at 100.00 AAA 16,587,036
Program, Series 2002, 5.250%, 4/01/27 - FSA Insured
13,275 State of Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,897,067
Series 2001, 5.250%, 5/01/26 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, McCormick No Opt. Call AAA 5,856,840
Place Expansion Project Revenue Bonds, Series 2002A,
0.000%, 12/15/24 - MBIA Insured
10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,559,600
Infrastructure Projects, Series 2001B, 5.250%, 8/15/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.7%
6,000 Jasper County, Indiana, Collateralized Pollution Control 7/03 at 100.00 AAA 6,229,440
Refunding Revenue Bonds, Northern Indiana Public Service
Company Project, Series 1991, 7.100%, 7/01/17 - MBIA Insured
4,230 City of Rockport, Indiana, Pollution Control Revenue Refunding 9/03 at 100.00 AAA 4,374,243
Bonds, Indiana Michigan Power Company Project, Series B,
7.600%, 3/01/16 - FGIC Insured
13
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.8%
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
$ 6,345 0.000%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA $ 6,080,414
18,185 0.000%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 17,381,223
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
13,170 City of New Orleans, Louisiana, General Obligation Refunding 10/05 at 101.00 AAA 14,655,181
Bonds, Series 1995, 6.200%, 10/01/21 - AMBAC Insured
4,510 Orleans Levee District (A Political Subdivision of the State 12/05 at 103.00 AAA 5,106,222
of Louisiana), Levee Improvement Bonds, Series 1986, Serial
and Term Trust Receipts, Series 1995A, 5.950%, 11/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.5%
8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 8,967,440
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.3%
7,535 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 8,149,781
International Airport Parking Revenue Bonds, Series 2002B,
5.500%, 3/01/18 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.1%
6,500 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 6,674,200
Tax Revenue Bonds, Series 2002A Refunding,
5.000%, 7/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.8%
4,750 Michigan Strategic Fund, Limited Obligation Refunding Revenue 9/09 at 102.00 AAA 4,975,103
Bonds, The Detroit Edison Company Pollution Control Bonds
Project, Collateralized Series 1999A, 5.550%, 9/01/29
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.0%
266 City of St. Louis Park, Minnesota, Single Family Residential 10/03 at 100.00 Aaa 266,293
Mortgage Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities Program, Series 1991-A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 2.2%
2,545 Harrison County Wastewater Management District, No Opt. Call AAA 3,503,193
Mississippi, Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991A, 8.500%, 2/01/13 -
FGIC Insured
2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,634,190
Mississippi, Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991B, 7.750%, 2/01/14 -
FGIC Insured
5,860 Mississippi Home Corporation, Single Family Mortgage Revenue 6/06 at 105.00 Aaa 6,512,042
Bonds, GNMA Collateralized Home Mortgage Program,
Series 1996C, 7.600%, 6/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.9%
5,000 St. Louis Municipal Finance Corporation, Missouri, Leasehold 2/06 at 102.00 AAA 5,685,650
Revenue Bonds, Series 1996A, City Justice Center Project,
6.000%, 2/15/19 (Pre-refunded to 2/15/06) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.1%
33,700 Director of the State of Nevada, Department of Business and 1/10 at 100.00 AAA 35,733,121
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000, 5.375%, 1/01/40 - AMBAC Insured
5,720 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 5,888,054
Transportation Rail Access Corridor Project, Senior Lien
Series 2002, 5.125%, 6/01/32 - AMBAC Insured
13,185 Washoe County, Nevada, Hospital Refunding Revenue Bonds, 6/04 at 102.00 AAA 13,971,090
Washoe Medical Center, Inc. Project, Series 1994A,
6.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,750 New Jersey Healthcare Facilities Financing Authority, Revenue 7/04 at 102.00 AAA 4,046,138
Bonds, Monmouth Medical Center Issue, Series C,
6.250%, 7/01/24 (Pre-refunded to 7/01/04) - FSA Insured
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.0%
$ 6,000 City of Farmington, New Mexico, Pollution Control Refunding 10/03 at 100.00 BB $ 6,150,000
Revenue Bonds, Southern California Edison Company Four
Corners Project, 1991 Series A, 7.200%, 4/01/21
5,750 City of Santa Fe, New Mexico, Revenue Bonds, Series 1994A, 6/04 at 100.00 AAA 6,072,403
6.300%, 6/01/24 (Pre-refunded to 6/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.5%
6,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 6,681,155
Tax Fund Bonds, Series 2002A, 5.000%, 11/15/32 -
FSA Insured
The City of New York, New York, General Obligation Bonds, Fiscal
1991 Series A:
2,000 8.000%, 3/15/11 - FSA Insured 9/03 at 100.00 AAA 2,049,100
6,000 7.250%, 3/15/19 - FSA Insured 9/03 at 100.00 AAA 6,374,940
10,335 New York City Municipal Water Finance Authority, New York, 6/05 at 101.00 AAA 11,448,803
Water and Sewer System Revenue Bonds, Fiscal 1996
Series A, 6.000%, 6/15/25 (Pre-refunded to 6/15/05) -
MBIA Insured
11,760 Dormitory Authority of the State of New York, Court Facilities 5/10 at 101.00 AAA 13,241,172
Lease Revenue Bonds, The City of New York Issue,
Series 1999, 5.750%, 5/15/30 - AMBAC Insured
7,000 New York State Energy Research and Development Authority, 7/05 at 102.00 A+ 7,611,310
Facilities Refunding Revenue Bonds, Series 1995A,
Consolidated Edison Company of New York, Inc. Project,
6.100%, 8/15/20
11,645 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 12,769,558
Mortgage Revenue Bonds, 1996 Series A Refunding,
6.125%, 11/01/20 - FSA Insured
4,200 State of New York Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 AAA 4,414,662
Revenue Bonds, Series 82, 5.550%, 10/01/19 (Alternative
Minimum Tax) - MBIA Insured
12,000 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 13,421,640
New York, Hospital FHA-Insured Mortgage Revenue Bonds,
Series 1994A, 6.900%, 8/15/34 (Pre-refunded to 2/15/05) -
AMBAC Insured
15,000 Dormitory Authority of the State of New York, School Districts 10/12 at 100.00 AAA 16,895,250
Financing Program Revenue Bonds, Series 2002D,
5.500%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.6%
20,000 Mercer County, North Dakota, Pollution Control Refunding 1/05 at 102.00 AAA 21,755,600
Revenue Bonds, Second 1995 Series, Basin Electric Power
Cooperative - Antelope Valley Unit 1 and Common Facilities,
6.050%, 1/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
5,000 County of Lorain, Ohio, Health Facilities Revenue Bonds, 9/09 at 102.00 AAA 5,355,150
Series 1999A, Catholic Healthcare Partners, 5.500%, 9/01/29 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.5%
7,000 County of Allegheny, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,363,790
Bonds, Series 1997A, Pittsburgh International Airport,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
7,250 Lehigh County Industrial Development Authority, Pollution 8/05 at 102.00 AAA 8,076,065
Control Revenue Refunding Bonds, 1995 Series A,
Pennsylvania Power and Light Company Project,
6.150%, 8/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.9%
5,050 Rhode Island Port Authority and Economic Development 7/04 at 102.00 AAA 5,399,309
Corporation, Airport Revenue Bonds, 1994 Series A,
6.625%, 7/01/24 (Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.6%
Knox County Health, Educational and Housing Facility Board,
Tennessee, Hospital Revenue Bonds, Covenant Health, Series 2002A
Refunding:
7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 2,395,125
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,497,850
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 773,135
5,170 Health, Educational and Housing Facilities Board of the County 8/03 at 102.00 AAA 5,288,031
of Sullivan, Tennessee, Hospital Revenue Bonds, Series 1993,
Holston Valley Health Care, Inc., 5.750%, 2/15/13 -
MBIA Insured
15
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 19.4%
$ 8,000 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102.00 AAA $ 8,805,360
Hospital Revenue Refunding and Improvement Bonds,
Hendrick Medical Center Project, Series 1995C,
6.150%, 9/01/25 - MBIA Insured
5,275 City of Austin, Texas, Combined Utility System Revenue 11/07 at 100.00 AAA 5,438,683
Refunding Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured
Harris County Hospital District, Texas, Refunding Revenue Bonds,
Series 1990:
2,100 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 2,415,147
2,900 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 3,421,942
4,500 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 4,654,440
Bonds, Series 2001A, 5.000%, 3/01/22 - FSA Insured
4,685 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,923,654
Bonds, Series 2000A, 5.500%, 7/01/19 (Alternative Minimum
Tax) - FSA Insured
17,000 City of Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 20,158,090
5.750%, 12/01/32 - FSA Insured
19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,969,536
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 General 8/10 at 100.00 AAA 6,354,900
Obligation Bonds, Series 2001, 5.375%, 8/01/31 -
AMBAC Insured
22,045 North Central Texas Health Facility Development Corporation, 8/12 at 101.00 AAA 22,742,063
Revenue Bonds, Children's Medical Center of Dallas,
Series 2002, 5.250%, 8/15/32 - AMBAC Insured
17,429 Tarrant County Housing Finance Corporation, Texas, Multifamily 3/12 at 105.00 Aaa 20,005,529
Housing Revenue Bonds, Series 2001, GNMA Collateralized
Mortgage Loan - Bardin Green Apartments Project,
6.600%, 9/20/42
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.1%
6,000 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, 5/03 at 100.00 AAA 6,866,160
IHC Hospitals, Inc., Series 1988A, 8.000%, 5/15/07
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.0%
10,730 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 11,360,924
Chelan Hydro Consolidated System Revenue Bonds,
Series 2001C Refunding, 5.650%, 7/01/32 (Alternative
Minimum Tax) - MBIA Insured
4,710 Housing Authority of the City of Seattle, Washington, Low 9/11 at 102.00 AAA 5,277,695
Income Housing Assistance Revenue Bonds, Series 2000A,
GNMA Collateralized Mortgage Loan - RHF/Esperanza
Apartments Project, 6.125%, 3/20/42 (Alternative
Minimum Tax)
15,025 Housing Authority of the City of Seattle, Washington, Low 11/11 at 105.00 AAA 17,517,046
Income Housing Assistance Revenue Bonds, Series 2000A,
GNMA Collateralized Mortgage Loan - Park Place Project,
7.000%, 5/20/42
5,000 The City of Seattle, Washington, Municipal Light and Power 12/10 at 100.00 AAA 5,331,849
Revenue Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured
2,500 Washington Healthcare Facilities Authority, Revenue Bonds, 12/09 at 101.00 AAA 2,644,923
Series 1999, Providence Services, 5.375%, 12/01/19 -
MBIA Insured
11,750 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 12,664,973
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.3%
12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,874,140
Revenue Bonds, West Virginia Infrastructure and Jobs
Development Council Program, 2000 Series A,
5.500%, 10/01/39 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 940,208 Total Long-Term Investments (cost $829,658,002) - 147.7% 902,859,398
=============-----------------------------------------------------------------------------------------------------------------------
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.4%
$ 3,200 Capital Projects Finance Authority, Florida, Continuing Care VMIG-1 $ 3,200,000
Retirement Community Revenue Bonds, Glenridge on Palmer
Ranch, Series 2002C, Variable Rate Demand Bonds,
1.350%, 6/01/12+
2,500 Chester County Industrial Development Authority, VMIG-1 2,500,000
Pennsylvania, Revenue Bonds, Archdiocese of Philadelphia,
Series 2001, Variable Rate Demand Bonds, 1.350%, 7/01/31+
6,700 Residential Care Facility for the Elderly Authority of Fulton A-1+ 6,700,000
County, Georgia, Refunding Revenue Bonds, Lenbrook Square
Foundation, Inc., Variable Rate Demand Bonds, Series 1996,
1.400%, 1/01/18+
2,100 Stockton, California, Health Facilities Revenue Bonds, Dameron VMIG-1 2,100,000
Hospital Association, Series 2002A, Variable Rate Demand
Obligations, 1.350%, 12/01/32+
------------------------------------------------------------------------------------------------------------------------------------
$ 14,500 Total Short-Term Investments (cost $14,500,000) 14,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $844,158,002) - 150.1% 917,359,398
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 11,983,443
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (318,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 611,342,841
====================================================================================================================
All of the bonds in the portfolio, 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.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
17
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 15.1%
$ 3,850 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103.00 Aaa $ 4,083,657
Revenue Refunding Bonds, GNMA Collateralized -
Royal Hills, 1995 Series F, 6.500%, 7/20/30
11,000 The Special Care Facilities Financing Authority of the City 5/05 at 102.00 AAA 11,918,830
of Birmingham, Alabama, Baptist Medical Centers Revenue
Bonds, Series 1995-B, Baptist Health System, Inc.,
5.875%, 11/15/20 - MBIA Insured
The Special Care Facilities Financing Authority of the City of
Birmingham, Alabama, Baptist Medical Centers Revenue Bonds,
Series 1996-A, Baptist Health System, Inc.:
7,465 5.875%, 11/15/19 - MBIA Insured 11/06 at 102.00 AAA 8,288,539
1,750 5.875%, 11/15/26 - MBIA Insured 11/06 at 102.00 AAA 1,928,185
11,175 City Board of Education of the City of Hoover, Alabama, 2/11 at 100.00 AAA 11,798,900
Capital Outlay Tax Anticipation Warrants, Series 2001,
5.250%, 2/15/22 - MBIA Insured
36,020 Jefferson County, Alabama, Sewer Revenue Refunding 2/07 at 100.00 AAA 38,482,327
Warrants, Series 1997-A, 5.375%, 2/01/27 - FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 1999-A:
20,605 5.000%, 2/01/33 - FGIC Insured 2/09 at 101.00 AAA 20,994,641
12,000 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 13,786,920
29,860 5.750%, 2/01/38 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 34,898,875
24,000 Jefferson County, Alabama, Sewer Revenue Capital 2/11 at 101.00 AAA 24,261,120
Improvement Warrants, Series 2001A, 5.000%, 2/01/41 -
FGIC Insured
5,000 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 5,115,000
Improvement Warrants, Series 2002, 5.125%, 2/01/42 -
FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 2002D:
2,365 5.000%, 2/01/38 - FGIC Insured 8/12 at 100.00 AAA 2,395,414
14,800 5.000%, 2/01/42 - FGIC Insured 8/12 at 100.00 AAA 14,968,276
4,250 Shelby County Board of Education, Alabama, General Obligation 2/05 at 102.00 AAA 4,625,063
Warrants, Series 1995 Refunding, 5.875%, 2/01/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.6%
11,245 Alaska Housing Finance Corporation, General Mortgage 6/09 at 100.00 AAA 11,922,174
Revenue Bonds, 1999 Series A, 6.050%, 6/01/39 -
MBIA Insured
11,460 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 11,863,507
Bonds, 1995 Series A, 5.875%, 12/01/30 - MBIA Insured
16,155 Alaska Housing Finance Corporation, Collateralized Bonds, 12/09 at 100.00 AAA 17,187,951
State Guaranteed, 1999A First Series, Veterans Mortgage
Program, 6.250%, 6/01/39 (Alternative Minimum Tax)
3,190 Alaska Housing Finance Corporation, Collateralized Bonds, 12/09 at 100.00 AAA 3,411,801
State Guaranteed, 1999A-2 Series, Veterans Mortgage
Program, 6.150%, 6/01/39
3,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 3,125,010
Bonds, 1998 Series A, 5.250%, 7/01/14 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.8%
7,560 The Industrial Development Authority of the County of Pima, 7/03 at 102.50 AAA 7,989,030
Arizona, Industrial Development Lease Obligation Refunding
Revenue Bonds, 1988 Series A, Irvington Project,
7.250%, 7/15/10 - FSA Insured
2,000 The Industrial Development Authority of the City of Yuma, 8/11 at 101.00 AAA 2,182,840
Arizona, Hospital Revenue Bonds, Series 2001, Yuma Regional
Medical Center, 5.500%, 8/01/20 - FSA Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 29.2%
$ 6,135 California Housing Finance Agency, Housing Insured Revenue 8/04 at 102.00 AAA $ 6,357,332
Bonds, 1994 Series C, 6.250%, 8/01/25 - MBIA Insured
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds, Mortgage-Backed Securities Program, 1996
Series A:
565 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 599,968
460 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 490,953
4,500 State of California, General Obligation Bonds, 10/08 at 101.00 AAA 4,726,935
5.000%, 10/01/19 - FGIC Insured
10,000 Department of Veterans Affairs of the State of California, 6/12 at 101.00 AAA 10,552,000
Home Purchase Revenue Bonds, Series 2002A,
5.300%, 12/01/21 - AMBAC Insured
19,375 California Housing Finance Agency, Home Mortgage Revenue 11/10 at 55.40 AAA 7,180,956
Bonds, 2000 Series Y, 0.000%, 8/01/20 (Alternative
Minimum Tax) - FSA Insured
State of California Department of Water Resources, Power
Supply Revenue Bonds, Series 2002A:
30,000 5.375%, 5/01/17 - XLCA Insured 5/12 at 101.00 AAA 33,195,000
35,000 5.375%, 5/01/18 - AMBAC Insured 5/12 at 101.00 AAA 38,699,500
3,100 Campbell Union School District, Santa Clara County, 8/04 at 102.00 AAA 3,360,214
California, 1994 General Obligation Bonds, Series A,
6.250%, 8/01/19 (Pre-refunded to 8/01/04) - MBIA Insured
8,200 Castaic Lake Water Agency, California, Refunding Revenue 8/04 at 102.00 AAA 8,817,296
Certificates of Participation, Water System Improvement
Projects, Series 1994A, 6.300%, 8/01/20 - MBIA Insured
20,000 Cucamonga County Water District, California, Certificates 9/11 at 101.00 AAA 20,681,000
of Participation, 2000 Water Shares Purchase,
5.125%, 9/01/35 - FGIC Insured
5,500 Fallbrook Union High School District, San Diego County, 9/04 at 102.00 AAA 5,984,110
California, 1994 General Obligation Bonds, Series A,
6.250%, 9/01/19 (Pre-refunded to 9/01/04) - MBIA Insured
5,000 Long Beach Bond Finance Authority, California, Lease Revenue 11/11 at 101.00 AAA 5,257,750
Refunding Bonds, The Aquarium of the South Pacific,
5.250%, 11/01/30 - AMBAC Insured
9,000 County of Orange, California, Refunding Recovery Bonds, 6/05 at 102.00 AAA 9,874,350
1995 Series A, 5.750%, 6/01/15 - MBIA Insured
12,500 County of Orange, California, 1996 Recovery Certificates of 7/06 at 102.00 AAA 14,187,625
Participation, Series A, 6.000%, 7/01/26 - MBIA Insured
Port of Oakland, California, Revenue Bonds, Series 2002L:
13,205 5.000%, 11/01/22 (Alternative Minimum Tax) - FGIC Insured 11/12 at 100.00 AAA 13,592,567
6,000 5.000%, 11/01/23 (Alternative Minimum Tax) - FGIC Insured 11/12 at 100.00 AAA 6,148,260
Poway Redevelopment Agency, California, Tax Allocation Bonds,
Series 2001, Paguay Redevelopment Project:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,724,950
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,192,150
19,300 Sacramento Power Authority, California, Cogeneration Project 7/06 at 102.00 AAA 21,864,198
Revenue Bonds, 1995 Series, 5.875%, 7/01/15 - MBIA Insured
6,500 City of Salinas, California, Housing Facility Refunding Revenue 7/04 at 102.00 AAA 6,757,205
Bonds, Series 1994A, GNMA Collateralized - Villa Serra
Project, 6.600%, 7/20/30
10,000 Airports Commission of the City and County of San Francisco, 5/06 at 101.00 AAA 10,571,800
California, San Francisco International Airport, Second Series
Revenue Bonds, Issue 13B, 5.500%, 5/01/26 (Alternative
Minimum Tax) - MBIA Insured
18,710 Airports Commission of the City and County of San 5/11 at 100.00 AAA 19,108,149
Francisco, California, San Francisco International Airport,
Second Series Revenue Refunding Bonds, Issue 27A,
5.250%, 5/01/26 (Alternative Minimum Tax) - MBIA Insured
11,500 San Francisco Bay Area Rapid Transit District, California, Sales 7/11 at 100.00 AAA 11,833,960
Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 -
AMBAC Insured
66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 29,017,978
County, California, Senior Lien Toll Road Revenue Bonds,
0.000%, 1/01/21
San Joaquin Hills Transportation Corridor Agency, California,
Toll Road Refunding Revenue Bonds, Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 1/07 at 102.00 AAA 33,234,953
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 4,742,255
19
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 12,525 San Jose Redevelopment Agency, California, Merged Area 8/10 at 101.00 AAA $13,203,605
Redevelopment Project, Series 2002, 5.000%, 8/01/20 -
MBIA Insured
11,000 Santa Ana Financing Authority, California, Police Administration No Opt. Call AAA 13,489,190
and Housing Facility Lease Revenue Bonds, Series 1994A,
6.250%, 7/01/24 - MBIA Insured
5,500 Santa Clara County Financing Authority, California, Lease 11/04 at 102.00 AAA 6,080,030
Revenue Bonds, VMC Facility Replacement Project,
1994 Series A, 6.750%, 11/15/20 (Pre-refunded to
11/15/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.8%
10,000 City and County of Denver, Colorado, Airport System Revenue 11/11 at 100.00 AAA 10,876,200
Refunding Bonds, Series 2001A, 5.500%, 11/15/15
(Alternative Minimum Tax) - FGIC Insured
10,545 City and County of Denver, Colorado, Airport Revenue Bonds, 11/06 at 101.00 AAA 11,379,531
Series 1996D, 5.500%, 11/15/25 - MBIA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 12,572,334
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 34,631,212
Bonds, Series 2000A, 5.750%, 9/01/35 - MBIA Insured
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 AAA 6,377,192
Bonds, Series 2000B, 0.000%, 9/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
2,500 State of Connecticut Health and Educational Facilities 7/04 at 101.00 AAA 2,695,400
Authority, Revenue Bonds, Choate Rosemary Hall Issue,
Series A, 7.000%, 7/01/25 (Pre-refunded to 7/01/04) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
4,100 District of Columbia Housing Finance Agency, GNMA 6/03 at 101.00 AAA 4,136,572
Collateralized Single Family Mortgage Revenue Bonds,
Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax)
4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,190,803
System Revenue Bonds, Series 2001A, 5.500%, 10/01/19
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.1%
2,225 Florida Housing Finance Agency, Home Ownership Revenue No Opt. Call AAA 2,538,881
Refunding Bonds, GNMA Collateralized, 1987 Series G1,
8.595%, 11/01/17
4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,750,901
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001C, 5.500%, 11/15/36 - MBIA Insured
35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 37,048,606
International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
Miami-Dade County, Florida, Aviation Revenue Bonds,
Series 2002A, Miami International Airport:
20,000 5.000%, 10/01/33 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 20,096,200
2,150 5.125%, 10/01/35 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 2,171,844
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
5,000 The Glynn-Brunswick Memorial Hospital Authority, Revenue 8/06 at 102.00 AAA 5,489,200
Anticipation Certificates, Southeast Georgia Health Systems
Project, Series 1996, 5.250%, 8/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.1%
24,250 Department of Budget and Finance of the State of Hawaii, 5/06 at 101.00 AAA 27,010,378
Special Purpose Revenue Bonds, Hawaiian Electric Company,
Inc. and Subsidiaries Project, Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.5%
2,065 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 2,279,554
1994 Series B, 6.750%, 7/01/22
1,925 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 2,179,196
1994 Series B2, 6.900%, 7/01/26 (Alternative Minimum Tax)
2,450 Idaho Housing Agency, Single Family Mortgage Bonds, FHA or 1/05 at 102.00 Aaa 2,549,397
VA Guarantor, 1995 Series B Senior Lien, 6.600%, 7/01/27
(Alternative Minimum Tax)
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 9.0%
$ 12,500 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/04 at 102.00 AAA $ 13,004,750
General Airport Second Lien Revenue Refunding Bonds,
1993 Series C, 5.000%, 1/01/18 - MBIA Insured
City of Chicago, Illinois, Chicago-O'Hare International Airport,
Second Lien Passenger Facility Charge Revenue Bonds, Series
2001E Refunding:
4,615 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,970,493
4,870 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,214,260
5,000 Community Unit School District No. 204, Indian Prairie, 12/11 at 100.00 AAA 5,429,650
Counties of DuPage and Will, Illinois, General Obligation
Bonds, Series 2001, 5.000%, 12/30/15 - FGIC Insured
Board of Governors of State Colleges and Universities, Eastern
Illinois University, Auxiliary Facilities System Revenue Bonds,
Series 1989:
12,355 0.000%, 10/01/09 - MBIA Insured 10/04 at 74.08 AAA 8,911,909
16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) - MBIA Insured 10/04 at 47.07 AAA 7,619,516
10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA 10,598,700
Series 1998A, Provena Health, 5.500%, 5/15/21 -
MBIA Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, Robert 12/07 at 100.00 Aaa 2,333,977
Morris College, Series 2000, 5.800%, 6/01/30 - MBIA Insured
2,180 Illinois Educational Facilities Authority, Revenue Bonds, DePaul 10/10 at 101.00 AAA 2,407,265
University, Series 2000, 5.500%, 10/01/19 - AMBAC Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, 6/08 at 101.00 Aaa 7,212,240
Series 1998A, Hospital Sisters Services, Inc. Obligated Group,
5.000%, 6/01/18 - MBIA Insured
Illinois Health Facilities Authority, Revenue Bonds, Series 1999,
Alexian Brothers Health System:
4,500 5.000%, 1/01/19 - FSA Insured 1/09 at 101.00 AAA 4,631,040
12,000 5.125%, 1/01/28 - FSA Insured 1/09 at 101.00 AAA 12,189,240
22,410 State of Illinois, General Obligation Bonds, Illinois FIRST 2/12 at 100.00 AAA 23,223,707
Program, Series 2002, 5.125%, 2/01/27 - FGIC Insured
4,560 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100.00 AAA 5,080,205
Series 1995, 6.250%, 10/01/16 (Pre-refunded to 10/01/05) -
AMBAC Insured
5,000 Regional Transportation Authority, Cook, DuPage, Kane, Lake, 6/04 at 102.00 AAA 5,402,800
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1994D, 6.750%, 6/01/25 (Pre-refunded to 6/01/04) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.6%
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,402,653
Revenue Refunding Bonds, Series 2002A, Waterworks
Project, 5.250%, 7/01/33 - MBIA Insured
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 5,371,800
Revenue Bonds, Series 1999E, 0.000%, 2/01/28 -
AMBAC Insured
11,020 IPS Multi-School Building Corporation, Indiana, First Mortgage 7/13 at 100.00 AAA 11,702,799
Bonds, Series 2003, 5.000%, 7/15/19 - MBIA Insured
12,250 City of Lawrenceburg, Indiana, Pollution Control Revenue 10/03 at 101.00 AAA 12,429,585
Refunding Bonds, Indiana Michigan Power Company Project,
Series D, 7.000%, 4/01/15 - FGIC Insured
9,545 New Prairie School Building Corporation, LaPorte and 7/04 at 102.00 AAA 10,427,531
St. Joseph Counties, Indiana, First Mortgage Bonds,
Series 1994, 7.200%, 7/15/21 (Pre-refunded to 7/15/04) -
FSA Insured
10,000 The Trustees of Purdue University, Indiana, Purdue University 1/12 at 100.00 AAA 10,564,600
Student Fee Bonds, Series O, 5.000%, 7/01/19 - MBIA Insured
Whitley County Middle School Building Corporation, Columbia
City, Indiana, First Mortgage Bonds, Series 2003:
3,705 5.000%, 7/15/16 (WI, settling 5/01/03) - FSA Insured 7/13 at 100.00 AAA 4,033,893
2,490 5.000%, 1/15/18 (WI, settling 5/01/03) - FSA Insured 7/13 at 100.00 AAA 2,669,878
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,409,150
Revenue Bonds, KU Health System, Series 1999A,
5.650%, 9/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1%
12,980 Louisville and Jefferson Counties Metropolitan Sewer District, 11/11 at 101.00 AAA 13,980,498
Kentucky, Sewer and Drainage System Revenue Bonds,
2001 Series A, 5.500%, 5/15/34 - MBIA Insured
21
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.6%
$ 5,000 Parish of De Soto, State of Louisiana, Pollution Control 9/09 at 102.00 AAA $ 5,698,300
Revenue Refunding Bonds, Cleco Utility Group Inc. Project,
Series 1999, 5.875%, 9/01/29 - AMBAC Insured
7,690 Orleans Levee District (A Political Subdivision of the State 12/05 at 103.00 AAA 8,706,618
of Louisiana), Levee Improvement Bonds, Series 1986,
5.950%, 11/01/15 - FSA Insured
3,000 Parish of St. Charles, State of Louisiana, Pollution Control 6/03 at 100.00 AAA 3,114,600
Revenue Bonds, Louisiana Power and Light Company Project,
Series 1991, 7.500%, 6/01/21 (Alternative Minimum Tax) -
FSA Insured
3,500 Hospital Service District No. 1 of the Parish of Tangipahoa, 2/04 at 102.00 AAA 3,674,230
State of Louisiana, Hospital Revenue Bonds, Series 1994,
6.250%, 2/01/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.8%
22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA 23,728,275
Bonds, Series 2002A, WGBH Educational Foundation,
5.375%, 1/01/42 - AMBAC Insured
8,400 Massachusetts Health and Educational Facilities Authority, 10/05 at 102.00 AAA 9,254,532
Revenue Bonds, Berkshire Health Systems Issue, Series D,
6.000%, 10/01/13 - MBIA Insured
2,960 Massachusetts Health and Educational Facilities Authority, 7/03 at 101.00 AAA 3,029,915
Revenue Bonds, South Shore Hospital Issue, Series D,
6.500%, 7/01/22 - MBIA Insured
4,865 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 5,153,640
Bonds, 1995 Series A Refunding, 6.100%, 12/01/16 -
MBIA Insured
34,815 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 35,111,624
System Revenue Bonds, 1997 Senior Series A, 5.000%, 1/01/37 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.4%
6,000 City of Detroit, Michigan, General Obligation Bonds, 2001 10/11 at 100.00 AAA 6,573,360
Series A-1, 5.375%, 4/01/18 - MBIA Insured
5,490 School District of the City of Detroit, Wayne County, Michigan, No Opt. Call AAA 6,720,529
School Building and Site Improvement Bonds, Unlimited Tax
General Obligation, Series 2001A, 6.000%, 5/01/29 -
FSA Insured
City of Detroit, Michigan, Sewage Disposal System Revenue
Bonds, Series 1999-A:
15,825 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 18,540,728
20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 23,582,000
8,700 City of Detroit, Michigan, Water Supply System Senior Lien 7/07 at 101.00 AAA 8,851,119
Revenue Bonds, Series 1997-A, 5.000%, 7/01/27 -
MBIA Insured
8,000 Gaylord Community Schools, Counties of Ostego and Antrim, 5/07 at 37.75 AAA 2,748,320
State of Michigan, 1992 School Building and Site Refunding
Bonds, 0.000%, 5/01/21 (Pre-refunded to 5/01/07) -
MBIA Insured
Grand Rapids Community College, Kent County, Michigan,
General Obligation Bonds, Series 2003 Refunding:
1,050 5.250%, 5/01/17 - AMBAC Insured 5/13 at 100.00 AAA 1,158,696
955 5.250%, 5/01/18 - AMBAC Insured 5/13 at 100.00 AAA 1,046,432
1,085 5.250%, 5/01/20 - AMBAC Insured 5/13 at 100.00 AAA 1,172,201
27,000 Okemos Public School, County of Ingham, State of Michigan, 5/06 at 34.54 AAA 8,827,380
1991 School Building and Site Bonds, Series I,
0.000%, 5/01/21 (Pre-refunded to 5/01/06) -
MBIA Insured
10,000 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 10,518,700
Bonds, Detroit Metropolitan Wayne County Airport,
Limited Tax General Obligation, Series 2001A,
5.250%, 12/01/25 - MBIA Insured
6,850 Charter County of Wayne, Michigan, Airport Revenue Bonds, 12/08 at 101.00 AAA 7,299,018
Detroit Metropolitan Wayne County Airport, Series 1998A,
5.375%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2%
2,805 Minnesota Housing Finance Agency, Single Family Mortgage 1/04 at 102.00 AA+ 2,889,543
Bonds, 1994 Series M, 6.700%, 7/01/26 (Alternative
Minimum Tax)
13,020 Housing and Redevelopment Authority of the City of 12/11 at 102.00 Aaa 13,382,867
Saint Paul, Minnesota, Multifamily Housing Revenue Bonds,
GNMA Collateralized Mortgage Loan - Marian Center-GEAC Project,
Series 2001A, 3.870%, 6/20/43
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.1%
1,840 Missouri Housing Development Commission, Single Family 7/03 at 101.00 AAA 1,861,234
Mortgage Revenue Bonds, GNMA Mortgage-Backed
Securities Program, 1991 Series C, 6.900%, 7/01/18
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.7%
Director of the State of Nevada, Department of Business and
Industry, Las Vegas Monorail Project Revenue Bonds, 1st Tier
Series 2000:
$ 15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA $ 16,555,650
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,784,290
2,160 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 Aa2 2,241,605
1994 Senior Series B-1, 6.700%, 10/01/17
1,675 Nevada Housing Division, Single Family Mortgage Bonds, 4/04 at 102.00 Aa2 1,724,295
1994 Senior Series B-2, 6.950%, 10/01/26 (Alternative
Minimum Tax)
40,285 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 42,412,451
Series 2002, 5.375%, 6/01/32 - FGIC Insured
10,000 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 10,340,100
Transportation Rail Access Corridor Project, Senior Lien
Series 2002, 5.125%, 6/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.3%
8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 9,380,582
General Revenue Bonds, Series 1998A, 5.300%, 12/01/19 -
FSA Insured
10,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 11,080,900
Water and Sewer System Revenue Bonds, Fiscal 1996
Series B, 5.750%, 6/15/26 - MBIA Insured
15,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 16,050,000
Water and Sewer System Revenue Bonds, Fiscal 1997
Series A, 5.375%, 6/15/26 - FSA Insured
Dormitory Authority of the State of New York, City University
System Consolidated Third General Resolution Revenue Bonds, 1994
Series 2:
3,000 6.250%, 7/01/19 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 100.00 AAA 3,179,880
6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 102.00 AAA 6,947,264
5,000 New York State Urban Development Corporation, Correctional 1/07 at 102.00 AAA 5,745,150
Capital Facilities Revenue Bonds, Series 7, 5.700%, 1/01/27
(Pre-refunded to 1/01/07) - MBIA Insured
15,600 The Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 16,846,752
Bonds, Ninety-Seventh Series, 6.650%, 1/15/23 (Alternative
Minimum Tax) - FGIC Insured
25,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 AAA 25,696,750
Revenue Refunding Bonds, Series 2002E,
5.000%, 11/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
5,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 5,528,500
Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/16 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.7%
20,100 County of Lucas, Ohio, Hospital Revenue Bonds, Series 1999, 11/09 at 101.00 AAA 20,973,144
ProMedica Healthcare Obligated Group, 5.375%, 11/15/39 -
AMBAC Insured
3,865 Ohio Housing Finance Agency, Residential Mortgage Revenue 3/05 at 102.00 Aaa 4,070,000
Bonds, GNMA Mortgage-Backed Securities Program,
1995 Series A-2, 6.625%, 3/01/26 (Alternative Minimum Tax)
Ohio Air Quality Development Authority, Air Quality Development
Revenue Refunding Bonds, JMG Funding Limited Partnership
Project, Series 1994:
13,750 6.375%, 1/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 14,832,400
8,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 8,629,760
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5%
12,380 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 13,649,074
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,245 Oklahoma Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 Aaa 5,449,240
Medical Research Foundation Project, Series 2001,
5.250%, 2/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.2%
2,855 State of Oregon Housing and Community Services Department, 7/05 at 102.00 Aa2 2,988,129
Mortgage Revenue Bonds, Single Family Mortgage Program,
1995 Series A, 6.450%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
7,120 Lehigh County General Purpose Authority, Pennsylvania, Hospital 7/04 at 102.00 AAA 7,684,046
Revenue Bonds, Lehigh Valley Hospital, Series 1994A,
6.250%, 7/01/22 (Pre-refunded to 7/01/04) - MBIA Insured
23
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
$ 2,000 Puerto Rico Highway and Transportation Authority, Transportation 7/13 at 100.00 AAA $ 2,202,700
Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.9%
2,195 Providence Housing Development Corporation, Rhode Island, 7/04 at 102.00 AAA 2,283,305
Mortgage Revenue Refunding Bonds, Series 1994A,
FHA-Insured Mortgage Loan - Barbara Jordan Apartments
Project, 6.750%, 7/01/25 - MBIA Insured
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 23,208,003
Special Obligation Refunding Bonds, 1992 Series B,
5.250%, 8/01/21 (Pre-refunded to 2/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.0%
10,000 Beaufort County, South Carolina, Tax Increment Bonds, 12/12 at 100.00 AAA 10,287,300
New River Redevelopment Project, Series 2002,
5.000%, 6/01/27 - MBIA Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Bonds, 1988 Refunding Series:
9,190 0.000%, 1/01/13 (Pre-refunded to 1/01/10) - AMBAC Insured 1/10 at 79.60 AAA 5,811,848
12,810 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 8,562,332
17,300 South Carolina Jobs-Economic Development Authority, 8/03 at 102.00 AAA 17,807,582
Hospital Revenue Bonds, South Carolina Baptist Hospital,
Series 1993D, 5.550%, 8/01/21 - AMBAC Insured
South Carolina Jobs-Economic Development Authority,
Hospital Revenue Bonds, Oconee Memorial Hospital, Inc.,
Series 1995:
3,000 6.150%, 3/01/15 - CONNIE LEE Insured 3/05 at 102.00 AAA 3,285,120
600 6.150%, 3/01/25 - CONNIE LEE Insured 3/05 at 102.00 AAA 656,520
8,000 South Carolina Jobs-Economic Development Authority, 11/12 at 100.00 AAA 8,381,840
Industrial Revenue Bonds, South Carolina Electric and Gas
Company Project, Series 2002A, 5.200%, 11/01/27 -
AMBAC Insured
10,000 South Carolina Jobs-Economic Development Authority, 11/12 at 100.00 AAA 10,443,200
Industrial Revenue Bonds, South Carolina Electric and Gas
Company Project, Series 2002B, 5.450%, 11/01/32 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5%
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,883,483
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.3%
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 24,040,937
Houston Industries Incorporated Project, Series 1998C,
5.125%, 5/01/19 (Optional put 5/01/08) - AMBAC Insured
11,500 Capital Area Housing Finance Corporation, Texas, Single Family 4/12 at 106.00 AAA 12,195,980
Mortgage Revenue Bonds, 2002 Series A-2 Refunding,
3.500%, 4/01/35 (Alternative Minimum Tax) - AMBAC Insured
11,460 Dallas County Utility and Reclamation District, Texas, Unlimited 2/05 at 100.00 AAA 12,245,698
Tax Refunding Bonds, Series 1999B, 5.875%, 2/15/29 -
AMBAC Insured
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 25,808,500
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
MBIA Insured
Harris County, Texas, Toll Road Senior Lien Revenue Bonds,
Series 1989:
9,000 0.000%, 8/15/18 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 53.84 AAA 3,977,820
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 16,091,010
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 2,807,459
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 1,828,312
6,570 City of Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 7,101,053
Bonds, Series 2001A, 5.375%, 3/01/19 - FSA Insured
4,170 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,457,105
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
8,225 City of Houston, Texas, Airport System Subordinate Lien Revenue 7/07 at 100.00 AAA 8,407,266
Bonds, Series 1997 Refunding, 5.125%, 7/01/22 - FGIC Insured
17,500 City of Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 18,211,550
Bonds, Series 2001B, Convention Project, 5.250%, 9/01/33 -
AMBAC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 12,826 Houston Housing Finance Corporation, Texas, Multifamily 9/11 at 105.00 Aaa $14,552,764
Housing Revenue Bonds, RRG Apartments Project, GNMA
Collateralized Mortgage, Series 2001, 6.350%, 3/20/42
23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 24,966,608
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist Hospital
of Southeast Texas, Series 2001, 5.500%, 8/15/41 -
AMBAC Insured
8,205 Lower Colorado River Authority, Texas, Refunding and 5/11 at 100.00 AAA 8,515,559
Improvement Revenue Bonds, Series 2001A, 5.000%, 5/15/21 -
MBIA Insured
Port of Houston Authority of Harris County, Texas, Unlimited Tax
General Obligation Port Improvement Bonds, Series 2001B:
3,205 5.500%, 10/01/18 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,435,536
3,375 5.500%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,600,686
7,205 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,807,554
Revenue Bonds, Series 2001, 5.375%, 7/01/15 (Alternative
Minimum Tax) - FGIC Insured
Tarrant County Health Facilities Development Corporation, Texas,
Health Resources System Revenue Bonds, Series 1997A:
2,900 5.250%, 2/15/22 - MBIA Insured 2/08 at 102.00 AAA 2,990,770
6,500 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,546,020
12,330 Texas Department of Housing and Community Affairs, 9/06 at 102.00 AAA 12,955,748
Single Family Mortgage Revenue Bonds, 1996 Series D,
6.250%, 9/01/28 (Alternative Minimum Tax) - MBIA Insured
1,840 Ysleta Independent School District, Texas, Public Facility 11/09 at 100.00 AAA 1,960,134
Corporation Lease Revenue Refunding Bonds, Series 2001,
5.375%, 11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.3%
10,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 10,858,800
Bonds, Series 2003A Refunding, 5.000%, 7/01/16 - FSA Insured
5,685 Utah Housing Finance Agency, Multifamily Housing Refunding 7/03 at 101.00 AA 5,751,003
Bonds, 1992 Issue A, FHA-Insured Mortgage Loans,
7.400%, 7/01/24
675 Utah Housing Finance Agency, Single Family Mortgage Bonds, 7/04 at 102.00 Aaa 694,427
1994 Issue D, Federally Insured or Guaranteed Mortgage
Loans, 6.750%, 1/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,387,500
Mortgage Bonds, 2001 Series H, Subseries H-1,
5.375%, 7/01/36 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.7%
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,460,952
Bonds, Series 2000, 5.500%, 7/01/25 - AMBAC Insured
4,250 Public Utility District No. 1 of Snohomish County, Washington, 7/03 at 101.00 AAA 5,371,744
Generation System Revenue Bonds, Series 1989,
6.650%, 1/01/16 - FGIC Insured
4,345 Washington Public Power Supply System, Nuclear Project 7/07 at 102.00 AAA 4,682,519
No. 1 Refunding Revenue Bonds, Series 1997A,
5.125%, 7/01/17 - AMBAC Insured
8,500 Washington Public Power Supply System, Nuclear Project 7/03 at 102.00 AAA 8,725,929
No. 3 Refunding Revenue Bonds, Series 1993B,
5.600%, 7/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8%
10,000 County Commission of Harrison County, West Virginia, Solid 5/03 at 102.00 AAA 10,234,099
Waste Disposal Revenue Bonds, West Penn Power Company
Harrison Station Project, Series B, 6.300%, 5/01/23
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.8%
1,765 Wisconsin Housing and Economic Development Authority, 7/03 at 101.00 AAA 1,785,791
Housing Revenue Bonds, 1992 Series A, 6.850%, 11/01/12 -
MBIA Insured
15,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/07 at 102.00 AAA 16,257,899
Bonds, Series 1997, Marshfield Clinic Project,
5.750%, 2/15/27 - MBIA Insured
18,000 Wisconsin Health and Educational Facilities Authority, 8/07 at 102.00 AAA 18,983,339
Revenue Bonds, Series 1997, Aurora Health Care, Inc.,
5.250%, 8/15/17 - MBIA Insured
25
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.6%
$ 7,780 Wyoming Community Development Authority, Housing 12/07 at 101.50 AAA $ 8,103,958
Revenue Bonds, 1997 Series 6, 5.600%, 6/01/29 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 2,010,291 Total Long-Term Investments (cost $1,775,195,543) - 148.0% 1,935,998,924
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 2.1%
9,650 Illinois Health Facilities Authority, Revenue Bonds, University A-1+ 9,650,000
of Chicago Hospitals, Series 1994, Variable Rate Demand
Obligations, 1.450%, 8/15/26 - MBIA Insured+
4,500 Kansas Development Finance Authority, Revenue Bonds, A-1 4,500,000
Village Shalom Obligated Group, Series BB, Variable Rate
Demand Bonds, 1.350%, 11/15/28+
4,500 Michigan Strategic Fund, Limited Obligation Revenue Bonds, A-1 4,500,000
Series A, Detroit Symphony Orchestra Project, Variable Rate
Demand Bonds, 1.350%, 6/01/31+
10,000 New York City Transitional Finance Authority, New York, A-1+ 10,000,000
Recovery Notes, Series 1, Subseries 1C, Variable Rate
Demand Obligations, 1.400%, 11/01/22+
------------------------------------------------------------------------------------------------------------------------------------
$ 28,650 Total Short-Term Investments (cost $28,650,000) 28,650,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $1,803,845,543) - 150.1% 1,964,648,924
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 23,864,922
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.0)% (680,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 1,308,513,846
====================================================================================================================
All of the bonds in the portfolio, 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.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
(WI) Security purchased on a when-issued basis.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
26
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.4%
$ 1,135 Birmingham Waterworks and Sewer Board, Alabama, Water 1/13 at 100.00 AAA $ 1,220,897
and Sewer Revenue Bonds, Series 2002B, 5.250%, 1/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
2,890 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 2,992,942
Bonds, 1995 Series A, 5.875%, 12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 36.6%
Abag Finance Authority for Nonprofit Corporations, Insured
Certificates of Participation, Children's Hospital Medical
Center of Northern California, Series 1999:
6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,749,068
10,000 6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 11,555,700
4,755 Antioch Area Public Facilities Financing Agency, California, 8/09 at 101.00 AAA 5,322,176
Special Tax Bonds, Community Facilities District No. 1989-1,
5.700%, 8/01/22 - AMBAC Insured
3,250 California Pollution Control Financing Authority, Pollution 4/11 at 102.00 AAA 3,543,930
Control Refunding Revenue Bonds, Pacific Gas and Electric
Company, 1996A Remarketed, 5.350%, 12/01/16 (Alternative
Minimum Tax) - MBIA Insured
10,070 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 100.00 AAA 10,263,143
Toll Road Revenue Bonds, Series 1995A, 5.000%, 1/01/35 -
MBIA Insured
580 Housing Authority of the County of Kern, California, Guaranteed No Opt. Call AAA 643,214
Tax-Exempt Mortgage Obligations, 1994 Series A, Subseries I,
7.150%, 12/30/24 (Alternative Minimum Tax)
425 Housing Authority of the County of Kern, California, Guaranteed No Opt. Call AAA 454,597
Tax-Exempt Mortgage Obligations, 1994 Series A,
Subseries III, 7.450%, 6/30/25 (Alternative Minimum Tax)
5,450 La Verne - Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 7,991,280
Single Family Residential Mortgage Revenue Bonds,
1984 Series A, 10.250%, 7/01/17
5,840 Lancaster Redevelopment Agency, California, Tax Allocation 8/03 at 101.00 AAA 5,966,261
Refunding Bonds, Lancaster Residential Redevelopment
Project Area, Issue of 1992, 6.100%, 8/01/19 - MBIA Insured
11,080 City of Lodi, California, Electric System Revenue Certificates 1/09 at 40.71 AAA 3,792,019
of Participation, 1999 Series B, 0.000%, 1/15/24 (Pre-refunded
to 1/15/09) - MBIA Insured
5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,997,300
County, California, 1995 Revenue Refunding Bonds,
Project No. 1, 7.400%, 8/01/25 - MBIA Insured
8,880 City of Pomona, California, Single Family Mortgage Revenue No Opt. Call AAA 12,093,139
Refunding Bonds, GNMA and FHLMC Mortgage-Backed
Securities, Series 1990B, 7.500%, 8/01/23
10,305 City of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 13,818,284
Revenue Refunding Bonds, GNMA Mortgage-Backed
Securities, Series 1990A, 7.500%, 5/01/23
14,755 County of San Bernardino, California, Single Family Mortgage No Opt. Call AAA 19,259,997
Revenue Bonds, GNMA Mortgage-Backed Securities,
1988 Series A, 8.300%, 9/01/14 (Alternative Minimum Tax)
4,300 Airports Commission of the City and County of San Francisco, 5/11 at 100.00 AAA 4,462,540
California, San Francisco International Airport, Second Series
Revenue Refunding Bonds, Issue 27A, 5.125%, 5/01/19
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.5%
2,500 City and County of Denver, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,685,125
Refunding Bonds, Series 2002E, 5.500%, 11/15/18 (Alternative
Minimum Tax) - FGIC Insured
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,728,820
Bonds, Series 2000A, 5.750%, 9/01/29 - MBIA Insured
1,225 Summit School District RE-1, Summit County, Colorado, 12/04 at 100.00 AAA 1,330,620
General Obligation Improvement Bonds, Series 1994,
6.700%, 12/01/14 (Pre-refunded to 12/01/04) - FGIC Insured
27
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.7%
$ 4,145 City of Miami, Florida, General Obligation Bonds, Series 2002, 1/12 at 100.00 AAA $ 4,314,821
5.000%, 1/01/22 - MBIA Insured
9,985 Orange County, Florida, Sales Tax Revenue Bonds, Series 2002B, 1/13 at 100.00 AAA 10,393,786
5.125%, 1/01/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2%
6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 6,924,125
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 5.500%, 8/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.9%
8,030 State of Hawaii, Airports System Revenue Bonds, Refunding 7/10 at 101.00 AAA 9,423,687
Series 2000B, 6.500%, 7/01/15 (Alternative Minimum Tax) -
FGIC Insured
2,250 Department of Budget and Finance of the State of Hawaii, 1/09 at 101.00 AAA 2,553,548
Special Purpose Revenue Bonds, Hawaiian Electric Company,
Inc. and Subsidiaries Project, Series 1999D, 6.150%, 1/01/20
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.2%
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,158,920
5.000%, 12/01/22 - FGIC Insured
10,000 City of Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,802,100
Series 2000D, 5.500%, 1/01/35 - FGIC Insured
8,200 Board of Education of the City of Chicago, Illinois, General No Opt. Call AAA 10,031,142
Obligation Lease Certificates, 1992 Series A,
6.250%, 1/01/15 - MBIA Insured
23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 12,444,273
Program Bonds, Elgin School District No. U46, Kane, Cook
and DuPage Counties, Series 2002, 0.000%, 1/01/17 -
FSA Insured
10,010 Illinois Development Finance Authority, Revenue Bonds, 2/05 at 102.00 AAA 10,516,806
Catholic Health Partners Services, Series 1995A,
5.300%, 2/15/18 - CONNIE LEE Insured
10,150 Onterie Center Housing Finance Corporation (An Illinois Not 7/03 at 101.50 AAA 10,429,328
For Profit Corporation), Mortgage Revenue Refunding
Bonds, Series 1992A, FHA-Insured Mortgage Loan -
Onterie Center Project, 7.050%, 7/01/27 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, No Opt. Call AAA 4,303,311
Lake, McHenry and Will Counties, Illinois, General Obligation
Bonds, Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.8%
5,375 Indiana Health Facility Financing Authority, Hospital Revenue 5/03 at 101.00 AAA 5,447,616
Refunding and Improvement Bonds, Series 1992, Community
Hospitals Projects, 6.400%, 5/01/12 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7%
5,000 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 5,193,150
International Airport Parking Revenue Bonds, Series 2002B,
5.125%, 3/01/21 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.4%
2,250 City of Kalamazoo Hospital Finance Authority, Michigan, 5/06 at 102.00 AAA 2,496,015
Hospital Revenue Refunding and Improvement Bonds,
Bronson Methodist Hospital, Series 1996, 5.750%, 5/15/16 -
MBIA Insured
6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 7,032,285
Bonds, 2000 Series XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax) - AMBAC Insured
3,810 Michigan State Housing Development Authority, Limited 8/12 at 102.00 Aaa 4,016,159
Obligation Multifamily Housing Revenue Bonds, GNMA
Collateralized Program - Cranbrook Apartments, Series 2001A,
5.500%, 2/20/43 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 2.1%
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,387,893
Minnesota, Airport Revenue Bonds, Series 2001B,
5.750%, 1/01/15 (Alternative Minimum Tax) - FGIC Insured
1,225 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 1,273,192
1995 Series D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.3%
7,495 Industrial Development Authority of Jefferson County, 8/07 at 100.00 AAA 10,126,794
Missouri, Housing Revenue Bonds, Richardson Road
Apartments Project, Series 1985, 11.000%, 12/15/15
(Pre-refunded to 8/15/07)
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.7%
$ 10,000 Clark County, Nevada, Airport System Subordinated Lien 7/11 at 100.00 AAA $10,468,600
Revenue Bonds, Series 2001B, 5.125%, 7/01/21 - FGIC Insured
7,990 Reno, Nevada, Sales and Room Tax Revenue Bonds, Reno 6/12 at 100.00 AAA 8,266,214
Transportation Rail Access Corridor Project, Senior Lien
Series 2002, 5.250%, 6/01/41 - AMBAC Insured
5,050 Washoe County, Nevada, Gas and Water Facilities Refunding 7/03 at 101.50 AAA 5,229,275
Revenue Bonds, Sierra Pacific Power Company Project,
Series 1987 Remarketed, 6.300%, 12/01/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.9%
7,645 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 8,902,450
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.9%
2,620 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 2,888,576
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,440 Sapulpa Municipal Authority, Oklahoma, Capital Improvement 7/10 at 101.00 AAA 6,062,554
Revenue Bonds, Series 2000 Refunding, 5.625%, 7/01/20 -
FSA Insured
3,000 Tulsa Industrial Authority, Oklahoma, Multifamily Housing 11/05 at 103.00 Aaa 3,170,010
Revenue Refunding Bonds, GNMA Collateralized - Country
Club of Woodland Hills Development, Series 1995,
6.250%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 9.7%
Oregon Health Sciences University, Revenue Bonds, Series 2002A:
5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,164,250
19,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 19,534,280
5,000 Oregon Health, Housing, Educational and Cultural Facilities 3/12 at 105.00 Aaa 5,510,100
Authority, Revenue Bonds, GNMA Mortgaged-Backed Securities
Program, Necanicum Village Assisted Living Project,
2001 Series A, 5.000%, 6/20/42
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9%
5,000 Health and Educational Facilities Board of the Metropolitan 11/09 at 101.00 AAA 5,987,000
Government of Nashville and Davidson County, Tennessee,
Revenue Bonds, Ascension Health Credit Group, Series 1999A,
6.000%, 11/15/30 (Pre-refunded to 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 7.1%
490 Corpus Christi Housing Finance Corporation, Texas, Single 7/03 at 101.00 AAA 500,971
Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11 - MBIA Insured
12,500 Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth 11/09 at 100.00 AAA 12,921,125
International Airport, Joint Revenue Refunding and
Improvement Bonds, Series 2001A, 5.500%, 11/01/35
(Alternative Minimum Tax) - FGIC Insured
570 City of El Paso Property Finance Authority, Inc., Texas, Single 6/03 at 102.00 Aaa 587,801
Family Mortgage Revenue Bonds, GNMA Mortgage-Backed
Securities Program, Series 1992A, 8.700%, 12/01/18
(Alternative Minimum Tax)
7,600 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 8,191,432
Revenue Bonds, Series 2001, 5.375%, 7/01/16 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.7%
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,054,120
5.000%, 7/01/28 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.2%
3,635 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 3,791,378
Mortgage Bonds, 2001 Series C, Subseries C-2,
5.450%, 7/01/23 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 23.9%
5,000 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA 5,262,450
Chelan Hydro Consolidated System Revenue Bonds,
Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) -
MBIA Insured
1,570 Sedro-Wooley School District No. 101, Clark County, 12/12 at 100.00 Aaa 1,706,041
Washington, General Obligation Bonds, Series 2002,
5.250%, 12/01/18 - FSA Insured
29
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,000 Energy Northwest, Washington, Nuclear Project No. 1 Electric 7/12 at 100.00 AAA $ 5,629,950
Revenue Bonds, Series 2002A Refunding, 5.500%, 7/01/15 -
MBIA Insured
Bellevue School District No. 405, King County, Washington,
General Obligation Bonds, Series 2002:
12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,789,992
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,476,413
Pierce County School District No. 343, Dieringer, Washington,
General Obligation Bonds, Series 2003 Refunding:
3,435 5.250%, 12/01/17 - FSA Insured 6/13 at 100.00 Aaa 3,783,893
2,755 5.250%, 12/01/18 - FSA Insured 6/13 at 100.00 Aaa 3,013,281
2,990 5.250%, 12/01/19 - FSA Insured 6/13 at 100.00 Aaa 3,249,711
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,115,492
5.625%, 4/01/17 (Alternative Minimum Tax) - FGIC Insured
Port of Seattle, Washington, Special Facility Revenue Bonds,
Terminal 18 Project, Series 1999C:
755 6.000%, 9/01/29 (Pre-refunded to 3/01/10) 3/10 at 101.00 AAA 890,175
(Alternative Minimum Tax) - MBIA Insured
895 6.000%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured 3/10 at 101.00 AAA 970,171
1,265 City of Tacoma, Washington, General Obligation Bonds, 12/12 at 100.00 AAA 1,349,806
Series 2002, 5.000%, 12/01/18 - FGIC Insured
4,200 City of Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AAA 4,469,808
Bonds, Series 2001 Refunding, 5.250%, 12/01/20 -
AMBAC Insured
5,000 State of Washington, General Obligation Bonds, 1/11 at 100.00 AAA 5,219,199
2001 Series C, 5.250%, 1/01/26 - FSA Insured
6,990 Washington Public Power Supply System, Nuclear Project No.1 7/08 at 102.00 AAA 7,534,310
Refunding Revenue Bonds, Series 1998A, 5.125%, 7/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.0%
6,000 Mason County, West Virginia, Pollution Control Revenue 6/03 at 101.00 AAA 6,147,060
Bonds, Appalachian Power Company Project, Series I,
6.850%, 6/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 429,265 Total Long-Term Investments (cost $417,851,005) - 146.8% 455,977,891
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 3.1%
3,000 Alachua County Health Facilities Authority, Florida, VMIG-1 3,000,000
Continuing Care Retirement Community Revenue Bonds,
Oak Hammock at the University of Florida Project,
Series 2002A, Variable Rate Demand Obligations,
1.350%, 10/01/32+
3,000 Capital Projects Finance Authority, Florida, Continuing Care VMIG-1 3,000,000
Retirement Community Revenue Bonds, Glenridge on
Palmer Ranch, Series 2002C, Variable Rate Demand Bonds,
1.350%, 6/01/12+
1,700 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's VMIG-1 1,700,000
Regional Medical Center Project, Series 1995, Variable Rate
Demand Bonds, 1.350%, 5/01/22+
2,000 University of Toledo, Ohio, General Receipts, Refunding A-1 2,000,000
Series 2000, Variable Rate Demand Bonds, 1.400%, 6/01/32 -
FGIC Insured+
------------------------------------------------------------------------------------------------------------------------------------
$ 9,700 Total Short-Term Investments (cost $9,700,000) 9,700,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $427,551,005) - 149.9% 465,677,891
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 5,976,129
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.8)% (161,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 310,654,020
====================================================================================================================
All of the bonds in the portfolio, 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.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
30
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.8%
Jefferson County, Alabama, Sewer Revenue Warrants,
Series 1997D:
$ 5,000 5.700%, 2/01/20 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA $ 5,576,900
4,830 5.750%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 5,512,189
3,970 5.750%, 2/01/22 - FGIC Insured 2/07 at 101.00 AAA 4,435,086
2,500 City of Mobile, Alabama, General Obligation Refunding 2/06 at 102.00 AAA 2,828,075
Warrants, Series 1996, 5.750%, 2/15/16 (Pre-refunded
to 2/15/06) - AMBAC Insured
2,000 City of Scottsboro, Alabama, General Obligation School 7/06 at 102.00 AAA 2,246,220
Warrants, Series 1996-B, 5.750%, 7/01/14 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 8.2%
31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 5,276,544
Toll Road Refunding Revenue Bonds, Series 1999,
0.000%, 1/15/34 - MBIA Insured
6,850 County of Orange, California, 1996 Recovery Certificates 7/06 at 102.00 AAA 7,774,819
of Participation, Series A, 6.000%, 7/01/26 - MBIA Insured
10,000 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 10,278,900
of Participation, Series 2003B, 5.000%, 8/15/34 -
MBIA Insured
13,000 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 14,910,220
Improvement Revenue Bonds, Series 1999, Solid Waste and
Redevelopment Projects, 5.800%, 12/01/19 - AMBAC Insured
San Leandro Housing Finance Corporation, California, Mortgage
Revenue Refunding Bonds, Series 1993A, FHA-Insured Mortgage Loan
- Ashland Village Apartments Section 8 Assisted Project:
1,205 6.550%, 1/01/12 - MBIA Insured 7/03 at 101.00 AAA 1,219,086
5,100 6.650%, 1/01/25 - MBIA Insured 7/03 at 101.00 AAA 5,157,885
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.1%
Colorado Health Facilities Authority, Hospital Revenue Bonds,
Poudre Valley Health Care, Inc., Series 1999A:
2,480 5.625%, 12/01/19 - FSA Insured 12/09 at 101.00 Aaa 2,685,369
3,500 5.750%, 12/01/23 - FSA Insured 12/09 at 101.00 Aaa 3,805,900
12,955 City and County of Denver, Colorado, Airport System Revenue 11/05 at 102.00 AAA 14,311,259
Bonds, Series 1995A, 5.600%, 11/15/20 - MBIA Insured
1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,362,762
Series 2002B, Detention Facility Project, 5.000%, 12/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.7%
3,540 District of Columbia Housing Finance Agency, Collateralized 6/03 at 102.00 AAA 3,601,100
Single Family Mortgage Revenue Bonds, Series 1990C-4,
6.350%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6%
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 3,136,680
South Georgia Medical Center Project Revenue Certificates,
Series 2002, 5.200%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 8.9%
Hawaii County, Hawaii, General Obligation Bonds, Series 2003A:
2,375 5.000%, 7/15/19 - FSA Insured 7/13 at 100.00 AAA 2,530,254
1,620 5.000%, 7/15/21 - FSA Insured 7/13 at 100.00 AAA 1,703,900
State of Hawaii, Airports System Revenue Bonds, Refunding
Series 2000B:
6,105 6.100%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 6,925,695
9,500 6.625%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 11,222,730
31
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
HAWAII (continued)
$ 24,000 Department of Budget and Finance of the State of Hawaii, 7/10 at 101.00 AAA $ 25,930,080
Special Purpose Revenue Bonds, Hawaiian Electric
Company, Inc. and Subsidiary Projects, Refunding Series 2000,
5.700%, 7/01/20 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,620 Idaho Housing and Finance Association, Single Family 1/08 at 101.50 AAA 1,742,407
Mortgage Bonds, 1998 Series E, 5.450%, 7/01/18 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 19.1%
2,500 City of Aurora, Kane, DuPage, Kendall and Will Counties, 1/05 at 100.00 AAA 2,683,625
Illinois, General Obligation Corporate Purpose Bonds,
Series 1996, 5.800%, 1/01/14 (Pre-refunded to 1/01/05) -
MBIA Insured
1,500 City of Chicago, Illinois, General Obligation Bonds, Project 7/05 at 102.00 AAA 1,680,165
Series 1995, 6.125%, 1/01/16 (Pre-refunded to 7/01/05) -
AMBAC Insured
25,585 City of Chicago, Illinois, General Obligation Bonds, Project 1/06 at 102.00 AAA 26,106,422
and Refunding Series 1996B, 5.125%, 1/01/25 - FGIC Insured
8,370 City of Chicago, Illinois, Chicago Midway Airport Revenue 1/07 at 101.00 AAA 9,282,916
Bonds, Series 1996A, 5.625%, 1/01/17 - MBIA Insured
City of Chicago, Illinois, Chicago Midway Airport Revenue
Bonds, Series 1994A:
280 6.100%, 1/01/08 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 291,234
710 6.250%, 1/01/14 (Alternative Minimum Tax) - MBIA Insured 1/04 at 102.00 AAA 742,532
4,000 City of Chicago, Illinois, Motor Fuel Tax Revenue Bonds, 7/13 at 100.00 AAA 4,166,520
Series 2003A, 5.000%, 1/01/22 - AMBAC Insured
8,235 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/05 at 102.00 AAA 9,004,231
General Airport Second Lien Revenue Refunding Bonds,
1994 Series A, 6.375%, 1/01/15 - MBIA Insured
10,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/10 at 101.00 AAA 10,695,000
General Airport Second Lien Revenue Refunding Bonds,
1999 Series, 5.500%, 1/01/17 (Alternative Minimum Tax) -
AMBAC Insured
4,115 Chicago Park District, Illinois, General Obligation Limited Tax 7/11 at 100.00 AAA 4,533,784
Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured
9,680 Illinois Educational Facilities Authority, Chicago, Revenue 6/08 at 100.00 AAA 9,992,954
Columbia College Bonds, Series 1998, 5.000%, 12/01/20 -
MBIA Insured
1,950 Illinois Health Facilities Authority, Health Facilities Refunding No Opt. Call AAA 2,394,620
Revenue Bonds, SSM Health Care, Series 1992AA,
6.550%, 6/01/14 - MBIA Insured
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
4,355 6.125%, 4/01/12 - FSA Insured No Opt. Call AAA 5,044,397
5,000 6.250%, 4/01/18 - FSA Insured No Opt. Call AAA 6,203,400
2,815 Illinois Housing Development Authority, Housing Development 1/04 at 102.00 A+ 2,896,325
Bonds, 1993 Series A, 6.000%, 7/01/18
6,335 Metropolitan Pier and Exposition Authority, Illinois, McCormick 6/03 at 102.00 AAA 6,504,335
Place Expansion Project Bonds, Series 1992A, 6.500%, 6/15/22
(Pre-refunded to 6/15/03) - AMBAC Insured
955 City of Peoria, City of Moline and City of Freeport, Illinois, 10/05 at 105.00 AAA 1,024,400
GNMA Collateralized Single Family Mortgage Revenue Bonds,
Series 1995A, 7.600%, 4/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2%
1,000 Ft. Wayne South Side School Building Corp., Allen County, 1/04 at 102.00 AAA 1,055,440
Indiana, First Mortgage Bonds, Series 1994, 6.125%, 1/15/12
(Pre-refunded to 1/15/04) - MBIA Insured
5,285 Logansport School Building Corporation, Indiana, First Mortgage 7/11 at 100.00 AAA 5,515,162
Bonds, Series 2001, 5.125%, 1/15/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.2%
270 City of Olathe, Kansas and Labette Counties, Kansas, GNMA 2/05 at 105.00 Aaa 289,732
Collateralized Single Family Mortgage Refunding Revenue
Bonds, Series A-I, 8.100%, 8/01/23 (Alternative Minimum Tax)
655 Sedgwick and Shawnee Counties, Kansas, GNMA 11/04 at 105.00 Aaa 700,483
Collateralized Single Family Mortgage Refunding Revenue
Bonds, Series A-II, 8.050%, 5/01/24 (Alternative Minimum Tax)
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.2%
$ 23,340 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA $ 6,306,235
System Revenue Bonds, Norton Healthcare Inc., Series 2000B,
0.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.7%
195 Massachusetts Housing Finance Agency, Housing Project 10/03 at 102.00 AAA 199,146
Revenue Bonds, 1993 Series A Refunding, 6.150%, 10/01/15 -
AMBAC Insured
4,780 Massachusetts Housing Finance Agency, Single Family 6/06 at 102.00 AAA 5,035,539
Housing Revenue Bonds, Series 48, 6.350%, 6/01/26
(Alternative Minimum Tax) - MBIA Insured
3,600 Massachusetts Housing Finance Agency, Single Family Housing 6/07 at 102.00 AAA 3,804,192
Revenue Bonds, Series 53, 6.150%, 12/01/29 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 4.8%
4,705 Board of Control of Grand Valley State University, Michigan, 12/10 at 100.00 AAA 5,071,378
General Revenue Bonds, Series 2000, 5.250%, 12/01/20 -
FGIC Insured
10,000 Michigan State Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,586,000
Revenue Bonds, 1997 Series A, 6.000%, 4/01/16 (Alternative
Minimum Tax) - AMBAC Insured
10,000 County of Monroe, Michigan, Pollution Control Revenue Bonds, 9/03 at 102.00 AAA 10,346,400
The Detroit Edison Company Project, Series CC-1992,
6.550%, 9/01/24 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.4%
7,435 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 7,727,493
1995 Series D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.5%
1,000 Industrial Development Authority of the City of Hazelwood, 9/06 at 102.00 AAA 1,065,920
Missouri, Multifamily Housing Revenue Refunding Bonds,
GNMA Collateralized - The Lakes Apartments Project,
Series 1996, 6.000%, 9/20/16
4,500 Land Clearance for Redevelopment Authority of Kansas City, 12/05 at 102.00 AAA 5,037,750
Missouri, Lease Revenue Bonds, Municipal Auditorium and
Muehlebach Hotel Redevelopment Projects, Series 1995A,
5.900%, 12/01/18 - FSA Insured
1,000 Kansas City Municipal Assistance Corporation, Missouri, 1/06 at 101.00 AAA 1,099,170
Leasehold Revenue Bonds, Capital Improvement Series 1996B,
5.750%, 1/15/14 - AMBAC Insured
1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA 1,095,683
Housing Revenue Bonds, Brookstone Village Apartments
Project, 1996 Series A, 6.000%, 12/01/16 (Alternative
Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.9%
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 6/03 at 101.00 AAA 5,180,500
Nevada Power Company Project, Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured
5,000 Clark County, Nevada, Industrial Development Revenue 7/10 at 102.00 AAA 5,461,900
Bonds, Southwest Gas Corporation, Series 2000C,
5.950%, 12/01/38 (Alternative Minimum Tax) -
AMBAC Insured
5,500 Director of the State of Nevada, Department of Business 1/10 at 102.00 AAA 6,062,925
and Industry, Las Vegas Monorail Project Revenue Bonds,
1st Tier Series 2000, 5.625%, 1/01/32 - AMBAC Insured
Las Vegas Convention and Visitors Authority, Nevada, Revenue
Bonds, Series 1999:
2,695 5.750%, 7/01/15 - AMBAC Insured 7/09 at 101.00 AAA 3,104,074
6,035 5.750%, 7/01/16 - AMBAC Insured 7/09 at 101.00 AAA 6,941,155
6,500 5.750%, 7/01/17 - AMBAC Insured 7/09 at 101.00 AAA 7,455,175
3,535 5.750%, 7/01/18 - AMBAC Insured 7/09 at 101.00 AAA 4,037,818
4,000 6.000%, 7/01/19 - AMBAC Insured 7/09 at 101.00 AAA 4,653,520
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.0%
4,090 Metropolitan Transportation Authority, New York, Commuter No Opt. Call AAA 5,054,790
Facilities Revenue Bonds, Series 1994A, 8.000%, 7/01/07 -
MBIA Insured
4,985 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 6,160,912
Facilities Revenue Bonds, Series O, 8.000%, 7/01/07 -
MBIA Insured
County of Nassau, New York, General Improvement Bonds, Series E:
1,755 6.000%, 3/01/16 - FSA Insured 3/10 at 100.00 AAA 2,032,887
2,740 6.000%, 3/01/18 - FSA Insured 3/10 at 100.00 AAA 3,180,565
33
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 2,265 County of Nassau, New York, General Obligation Serial 3/10 at 100.00 AAA $ 2,760,831
Improvement Bonds, Series F, 7.000%, 3/01/14 - FSA Insured
7,500 Nassau Health Care Corporation, Nassau County Guaranteed, 8/09 at 102.00 AAA 8,358,450
New York, Health System Revenue Bonds, Series 1999,
5.750%, 8/01/29 - FSA Insured
4,000 City of New York, New York, General Obligation Bonds, No Opt. Call AAA 4,557,560
Fiscal 1995 Series E, 8.000%, 8/01/05 - MBIA Insured
7,900 City of New York, New York, General Obligation Bonds, 3/06 at 101.50 AAA 8,746,485
Fiscal 1996 Series I, 5.875%, 3/15/18 - FSA Insured
7,000 New York City Municipal Water Finance Authority, 6/09 at 101.00 AAA 7,885,640
New York, Water and Sewer System Revenue Bonds,
Fiscal 2000 Series A, 5.750%, 6/15/31 - FGIC Insured
Dormitory Authority of the State of New York, New Island
Hospital Insured Revenue Bonds, Series 1999B:
3,400 5.750%, 7/01/19 - MBIA Insured 7/09 at 101.00 AAA 3,738,096
5,750 6.000%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 6,326,783
9,745 New York State Housing Finance Agency, Housing Project 5/06 at 102.00 AAA 10,686,075
Mortgage Revenue Bonds, 1996 Series A Refunding,
6.125%, 11/01/20 - FSA Insured
6,095 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 6,720,225
Mental Health Services Facilities Improvement Revenue
Bonds, 1995 Series A, 6.000%, 8/15/15 (Pre-refunded
to 2/15/05) - MBIA Insured
New York State Medical Care Facilities Finance Agency, New York
Hospital FHA-Insured Mortgage Revenue Bonds, Series 1994A:
3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 3,347,460
2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 2,791,750
New York State Urban Development Corporation, Correctional
Capital Facilities Revenue Bonds, Series 7:
3,505 5.700%, 1/01/27 (Pre-refunded to 1/01/07) - MBIA Insured 1/07 at 102.00 AAA 4,027,350
5,000 5.700%, 1/01/27 (Pre-refunded to 1/01/07) - FSA Insured 1/07 at 102.00 AAA 5,745,150
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.7%
10,715 City of Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA 11,486,909
MertiCare Obligated Group, Series 2000A,
5.600%, 6/01/21 - FSA Insured
8,000 State of North Dakota, Student Loan Revenue Bonds, 12/10 at 100.00 AAA 8,403,920
Series 2000B, 5.850%, 12/01/25 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.0%
Oklahoma City, Oklahoma, Airport Trust Junior Lien Tax Exempt
Bonds, Twenty-Seventh Series 2000A:
1,320 5.125%, 7/01/20 - FSA Insured 7/10 at 100.00 AAA 1,391,993
4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,288,985
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.7%
City of Portland, Oregon, Airport Way Urban Renewal and
Redevelopment Bonds, 2000 Series A:
4,405 5.700%, 6/15/17 - AMBAC Insured 6/10 at 101.00 Aaa 5,013,375
3,665 5.750%, 6/15/18 - AMBAC Insured 6/10 at 101.00 Aaa 4,172,676
4,265 5.750%, 6/15/19 - AMBAC Insured 6/10 at 101.00 Aaa 4,829,686
1,375 5.750%, 6/15/20 - AMBAC Insured 6/10 at 101.00 Aaa 1,549,597
Housing Authority of Portland, Oregon, Multifamily Housing
Revenue Bonds, Series 2000, Lovejoy Station
Apartments Project:
1,500 5.900%, 7/01/23 (Alternative Minimum Tax) - MBIA Insured 7/10 at 100.00 Aaa 1,591,875
2,520 6.000%, 7/01/33 (Alternative Minimum Tax) - MBIA Insured 7/10 at 100.00 Aaa 2,668,504
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.6%
12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 15,047,078
Pennsylvania, Health System Insured Revenue Bonds,
Series 2000A, West Penn Allegheny Health System,
6.500%, 11/15/30 - MBIA Insured
2,535 Allegheny County Residential Finance Authority, Pennsylvania, 11/06 at 102.00 Aaa 2,689,889
GNMA Single Family Mortgage Revenue Bonds,
1996 Series AA, 6.450%, 5/01/28 (Alternative Minimum Tax)
9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 11,447,731
Revenue Bonds, The Reading Hospital and Medical Center
Project, Series 1999, 6.000%, 11/01/19 (Pre-refunded to
11/01/09) - FSA Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,000 Luzerne County Industrial Development Authority, Pennsylvania, 12/04 at 102.00 AAA $ 1,105,570
Exempt Facilities Revenue Refunding Bonds, 1994 Series A,
Pennsylvania Gas and Water Company Project, 7.000%, 12/01/17
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.3%
Puerto Rico Highway and Transportation Authority, Highway
Revenue Bonds, Series 2003AA:
5,000 5.500%, 7/01/16 - FGIC Insured No Opt. Call AAA 5,842,900
2,000 5.500%, 7/01/17 - MBIA Insured No Opt. Call AAA 2,342,140
4,000 Puerto Rico Municipal Finance Agency, General Obligation 8/12 at 100.00 AAA 4,430,560
Bonds, 2002 Series A, 5.250%, 8/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.9%
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries Incorporated Project, Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,614,100
9,000 5.125%, 11/01/20 (Optional put 11/01/08) - AMBAC Insured 11/08 at 102.00 AAA 9,422,460
Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth
International Airport, Joint Revenue Refunding and
Improvement Bonds, Series 2001A:
3,000 5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured 11/11 at 100.00 AAA 3,361,020
12,500 5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured 11/09 at 100.00 AAA 12,921,125
3,895 City of Denton, Texas, Utility System Revenue Bonds, 12/10 at 100.00 AAA 4,350,287
Series 2000A, 5.625%, 12/01/19 - FSA Insured
7,210 City of Houston, Texas, Water and Sewer System Junior Lien 12/07 at 101.00 AAA 7,653,127
Revenue Bonds, Series 1997A Refunding, 5.250%, 12/01/22 -
FGIC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, 7/12 at 105.00 Aaa 4,798,556
Multifamily Housing Revenue Bonds, GNMA Collateralized
Mortgage - Renaissance of Amarillo Apartments,
Series 2001A, 6.650%, 7/20/42
Tarrant County Health Facilities Development Corporation, Texas,
Hospital Revenue Bonds, Cook Children's Medical Center Project,
Series 2000A:
6,725 5.750%, 12/01/17 - FSA Insured 12/10 at 101.00 AAA 7,435,765
7,500 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 8,112,375
10,627 Tarrant County Housing Finance Corporation, Texas, Multifamily 10/11 at 105.00 Aaa 12,246,130
Housing Revenue Bonds, Series 2001, GNMA Collateralized
Mortgage Loan - Legacy Senior Residence Apartments
Project, 6.625%, 4/20/42
State of Texas, General Obligation Bonds, Veterans Housing
Assistance Program Fund, Series 1993:
1,315 6.800%, 12/01/23 (Alternative Minimum Tax) 12/03 at 102.00 Aa1 1,360,039
6,585 6.800%, 12/01/23 (Alternative Minimum Tax) - MBIA Insured 12/03 at 102.00 AAA 6,825,221
2,300 Texas State University System, Financing Revenue Bonds, 3/12 at 100.00 AAA 2,442,922
Series 2002 Refunding, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 5.2%
Intermountain Power Agency, Utah, Power Supply Revenue
Refunding Bonds, 1993 Series A:
4,595 5.500%, 7/01/20 (Pre-refunded to 7/01/03) - AMBAC Insured 7/03 at 102.00 AAA 4,720,949
4,970 5.500%, 7/01/20 - AMBAC Insured 7/03 at 102.00 AAA 5,102,401
8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,197,270
Bonds, Series 2003A Refunding, 5.000%, 7/01/18 - FSA Insured
3,600 Utah State Board of Regents, Student Loan Revenue Bonds, 11/03 at 102.00 Aaa 3,697,092
Series 1993B, 5.900%, 11/01/13 (Alternative Minimum Tax)
5,525 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2002A, 12/12 at 100.00 AAA 5,701,524
5.000%, 6/15/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3%
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,477,542
Hospital Revenue Bonds, Fletcher Allen Health Care Project,
Series 2000A, 6.000%, 12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.4%
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,404,238
Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum
Tax) - MBIA Insured
35
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.0%
$ 10,000 Public Utility District No. 1 of Chelan County, Washington, 7/11 at 101.00 AAA $ 10,524,900
Chelan Hydro Consolidated System Revenue Bonds,
Series 2001B, 5.600%, 1/01/36 (Alternative Minimum Tax) -
MBIA Insured
1,370 Sedro-Wooley School District No. 101, Clark County, 12/12 at 100.00 Aaa 1,422,266
Washington, General Obligation Bonds, Series 2002,
5.000%, 12/01/22 - FSA Insured
5,230 Public Utility District No. 1 of Douglas County, Washington, 9/09 at 102.00 AAA 5,958,330
Wells Hydroelectric Revenue Bonds, Series 1999A,
6.125%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured
3,485 Public Utility District No. 2 of Grant County, Washington, 1/06 at 102.00 AAA 3,844,652
Priest Rapids Hydroelectric Development Revenue Bonds,
Second Series 1996B, 5.900%, 1/01/21 (Alternative
Minimum Tax) - MBIA Insured
2,500 City of Tacoma, Washington, Sewer Revenue Bonds, 1995 12/05 at 100.00 AAA 2,808,050
Series B, 6.375%, 12/01/15 (Pre-refunded to 12/01/05) -
FGIC Insured
6,200 State of Washington, General Obligation Bonds, Series 2003A 7/12 at 100.00 AAA 6,523,268
Various Purpose, 5.000%, 7/01/20 - FGIC Insured
10,000 State of Washington, General Obligation Bonds, Series R-03-A 1/12 at 100.00 AAA 10,557,100
Refunding, 5.000%, 1/01/19 - MBIA Insured
8,100 Washington Healthcare Facilities Authority, Seattle, Revenue 8/03 at 102.00 AAA 8,289,621
Bonds, Series 1992, Virginia Mason Obligated Group,
6.300%, 2/15/17 - MBIA Insured
3,950 Washington Healthcare Facilities Authority, Revenue Bonds, 11/08 at 101.00 Aaa 4,049,185
Series 1998, Swedish Health Services, 5.125%, 11/15/22 -
AMBAC Insured
Washington Public Power Supply System, Nuclear Project No. 1
Refunding Revenue Bonds, Series 1993B:
10 5.600%, 7/01/15 (Pre-refunded to 7/01/03) - MBIA Insured 7/03 at 102.00 AAA 10,276
3,740 5.600%, 7/01/15 (Pre-refunded to 7/01/03) - MBIA Insured 7/03 at 102.00 AAA 3,843,149
10,455 Washington Public Power Supply System, Nuclear Project No. 1 7/03 at 102.00 AAA 10,735,299
Refunding Revenue Bonds, Series 1993A, 5.700%, 7/01/17 -
MBIA Insured
10,500 Washington Public Power Supply System, Nuclear Project No. 1 7/06 at 102.00 AAA 11,796,119
Refunding Revenue Bonds, Series 1996-A, 5.750%, 7/01/11 -
MBIA Insured
6,295 Washington Public Power Supply System, Nuclear Project No. 3 7/03 at 102.00 AAA 6,462,320
Refunding Revenue Bonds, Series 1993B, 5.600%, 7/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 4.1%
20,000 County Commission of Pleasants County, West Virginia, 5/05 at 102.00 AAA 22,089,799
Pollution Control Revenue Bonds, Monongahela Power
Company Pleasants Station Project, 1995 Series C,
6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.3%
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 8,284,709
Bonds, Series 1996, Northern States Pow Company Project,
6.000%, 11/01/21 (Alternative Minimum Tax) - MBIA Insured
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, 12/10 at 100.00 Aaa 13,574,542
Series 2000A, 5.750%, 12/01/25 (Alternative Minimum
Tax) - FGIC Insured
6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/06 at 102.00 AAA 6,942,811
Bonds, Series 1996, Sinai Samaritan Medical Center, Inc.
Project, 5.750%, 8/15/16 - MBIA Insured
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 8/05 at 102.00 AAA 5,495,499
Bonds, Series 1995, Mercy Health System Corporation,
6.125%, 8/15/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 779,298 Total Long-Term Investments (cost $736,636,607) - 148.1% 802,734,145
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 8,199,107
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (268,900,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 542,033,252
====================================================================================================================
All of the bonds in the portfolio 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.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
See accompanying notes to financial statements.
36
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.6%
$ 5,310 Athens, Alabama, Water and Sewer Revenue Warrants, 5/12 at 101.00 AAA $ 5,600,563
Series 2002, 5.300%, 5/01/32 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 11,489,100
Improvement Warrants, Series 1999-A, 5.375%, 2/01/36
(Pre-refunded to 2/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.3%
15,000 State of Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 15,637,800
Series 2002B, 5.250%, 10/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1%
5,000 City of Phoenix Civic Improvement Corporation, Arizona, 7/12 at 100.00 AAA 5,159,350
Airport Revenue Bonds, Series 2002B Senior Lien,
5.250%, 7/01/32 (Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 9.8%
10,000 State of California, General Obligation Veterans Welfare 12/08 at 101.00 AA- 10,559,000
Bonds, Series 1997BH, 5.400%, 12/01/14
(Alternative Minimum Tax)
3,200 State of California, General Obligation Various Purpose 9/10 at 100.00 AAA 3,457,248
Bonds, 5.250%, 9/01/17 - MBIA Insured
10,000 State of California, General Obligation Bonds, Series 2002 No Opt. Call AAA 10,376,100
Refunding, 5.000%, 2/01/23 - MBIA Insured
3,000 State of California, General Obligation Veterans Welfare 6/07 at 101.00 AAA 3,062,520
Bonds, Series 2001BZ, 5.375%, 12/01/24
(Alternative Minimum Tax) - MBIA Insured
7,935 City of Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 8,371,187
Real Property Acquisition Program, Series 2002,
5.300%, 4/01/32 - AMBAC Insured
7,500 Northern California Power Agency, Hydroelectric Project 7/08 at 101.00 AAA 7,770,750
Number One Revenue Bonds, 1998 Refunding Series A,
5.200%, 7/01/32 - MBIA Insured
2,320 Sacramento Municipal Utility District, California, 8/11 at 100.00 AAA 2,523,650
Electric Revenue Bonds, Series 2001P, 5.250%,
8/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.5%
2,000 New Haven, Connecticut, General Obligation Bonds, 11/13 at 101.00 AAA 2,258,040
Series 2003A Refunding, 5.250%, 11/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 16.9%
11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,983,728
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative
Minimum Tax) - FSA Insured
6,000 JEA, Florida, Water and Sewer System Revenue Bonds, 4/07 at 100.00 AAA 6,492,660
Series 2002A, 5.500%, 10/01/41 - MBIA Insured
8,155 Lee County, Florida, Solid Waste System Revenue Bonds, 10/11 at 100.00 Aaa 8,989,909
Series 2001 Refunding, 5.625%, 10/01/13 (Alternative
Minimum Tax) - MBIA Insured
15,000 Miami-Dade County School Board, Florida, Certificates of No Opt. Call AAA 16,653,600
Participation, Series 2003A, 5.000%, 8/01/08 (Mandatory
put 8/01/08) - MBIA Insured
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami
International Airport, Series 2002:
7,165 5.625%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 7,972,352
5,600 5.750%, 10/01/16 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 6,280,904
10,000 5.125%, 10/01/21 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 10,330,800
2,000 5.250%, 10/01/22 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 2,083,640
8,400 Village Center Community Development District, Florida, 11/13 at 101.00 AAA 8,663,424
Recreational Revenue Bonds, Series 2003A, 5.000%, 11/01/32 -
MBIA Insured
37
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
$ 1,695 Georgia Housing and Finance Agency, Single Family Mortgage 12/11 at 100.00 AAA $ 1,769,122
Bonds, 2002 Series B-2, 5.500%, 6/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.3%
19,185 Village of Bolingbrook, Illinois, General Obligation Bonds, 1/12 at 100.00 AAA 20,173,795
Series 2002A, 5.375%, 1/01/38 - FGIC Insured
5,000 City of Chicago, Illinois, General Obligation Bonds, Project and 1/11 at 101.00 AAA 5,327,600
Refunding Series 2001A, 5.500%, 1/01/38 - MBIA Insured
City of Chicago, Illinois, Chicago-O'Hare International Airport,
Second Lien Passenger Facility Charge Revenue Bonds, Series
2001C:
4,250 5.500%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,606,235
4,485 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,830,480
4,730 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,064,364
2,930 5.500%, 1/01/19 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,121,974
3,000 City of Chicago, Illinois, Chicago-O'Hare International Airport, 1/12 at 100.00 AAA 3,310,710
General Airport Third Lien Revenue Refunding Bonds,
Series 2002A, 5.750%, 1/01/17 (Alternative Minimum Tax) -
MBIA Insured
12,765 City of Chicago, Illinois, Skyway Toll Bridge Revenue Bonds, 1/07 at 102.00 AAA 13,851,429
Series 1996, 5.500%, 1/01/23 - MBIA Insured
4,000 Town of Cicero, Cook County, Illinois, General Obligation 12/12 at 101.00 AAA 4,196,040
Corporate Purpose Bonds, Series 2002, 5.000%, 12/01/21 -
MBIA Insured
12,000 County of Cook, Illinois, General Obligation Bonds, Series 2003 No Opt. Call AAA 13,436,160
Refunding, 5.000%, 11/15/10 - MBIA Insured
5,000 State of Illinois, General Obligation Bonds, Illinois FIRST 4/12 at 100.00 AAA 5,289,750
Program, Series 2002, 5.250%, 4/01/23
2,700 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 2,812,320
Infrastructure Projects, Series 2001A, 5.000%, 8/15/20 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 14.9%
Indiana Bond Bank, Special Program Bonds, 2002 Series D,
Hendricks County Redevelopment District:
2,500 5.375%, 4/01/23 - AMBAC Insured 4/12 at 100.00 AAA 2,663,875
7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,400,167
7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,290,570
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,288,800
Bonds, Marion General Hospital Project, Series 2002,
5.250%, 7/01/32 - AMBAC Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,174,250
Revenue Refunding Bonds, Series 2002A, Waterworks Project,
5.250%, 7/01/33 - MBIA Insured
6,000 IPS Multi-School Building Corporation, Indiana, First Mortgage 7/13 at 100.00 AAA 6,331,020
Bonds, Series 2003, 5.000%, 7/15/20 - MBIA Insured
New Albany-Floyd County School Building Corporation, Indiana,
First Mortgage Bonds, Series 2002:
2,500 5.750%, 7/15/17 - FGIC Insured 7/12 at 100.00 AAA 2,843,350
3,810 5.750%, 7/15/20 - FGIC Insured 7/12 at 100.00 AAA 4,270,781
Northern Wells Community School Building Corporation, Wells
County, Indiana, First Mortgage Bonds, Series 2001:
420 5.250%, 1/15/19 - FGIC Insured 7/12 at 100.00 AAA 451,870
430 5.250%, 7/15/19 - FGIC Insured 7/12 at 100.00 AAA 462,628
1,675 5.400%, 7/15/23 - FGIC Insured 7/12 at 100.00 AAA 1,792,066
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.7%
3,085 City of New Orleans, Louisiana, General Obligation Bonds, 9/12 at 100.00 AAA 3,268,126
Series 2002 Refunding, 5.125%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.6%
7,600 Missouri-Illinois Metropolitan District Bi-State Development 10/13 at 100.00 AAA 7,929,080
Agency, Mass Transit Sales Tax Appropriation Bonds, Metrolink
Cross County Extension Project, Series 2002B,
5.000%, 10/01/23 - FSA Insured
8,735 City of St. Louis, Missouri, Airport Revenue Bonds, 7/11 at 100.00 AAA 9,108,421
Series 2001A, Airport Development Program,
5.250%, 7/01/31 - MBIA Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.1%
$ 9,810 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA $ 10,274,209
Bonds, Series 2002C, 5.000%, 6/15/21 - MBIA Insured
8,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,107,700
Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.6%
20,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 20,557,400
Revenue Bonds, Series 2002A Refunding,
5.000%, 11/15/30 - FSA Insured
10,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 10,257,500
Purpose Revenue Bonds, Series 2001A, 5.000%, 1/01/32 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 4.0%
State of Oregon, General Obligation Veterans Welfare Bonds,
2002 Series 82:
11,375 5.375%, 12/01/31 12/11 at 100.00 AA 11,801,904
6,500 5.500%, 12/01/42 12/11 at 100.00 AA 6,763,445
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.2%
4,500 County of Allegheny, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 5,139,675
Bonds, Series 1997A, Pittsburgh International Airport,
5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, 7/08 at 100.00 AAA 5,409,700
University of Pennsylvania Revenue Bonds, Series 1998,
5.500%, 7/15/38 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 8.0%
10,000 Memphis and Shelby County Sports Authority, Inc., Tennessee, 11/12 at 100.00 AAA 10,353,700
Revenue Bonds, 2002 Series A, Memphis Arena Project,
5.125%, 11/01/28 - AMBAC Insured
11,000 Memphis and Shelby County Sports Authority, Inc., 11/12 at 100.00 AAA 11,386,540
Tennessee, Revenue Bonds, 2002 Series B, Memphis Arena
Project, 5.125%, 11/01/29 - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 15,944,873
Facilities Bonds, Second Program, Series 2002A,
5.250%, 5/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 27.6%
7,165 Arlington Independent School District, Tarrrant County, Texas, 2/08 at 100.00 Aaa 7,239,444
General Obligation Bonds, Series 1998 Refunding,
4.750%, 2/15/21
3,500 Cities of Dallas and Ft. Worth, Texas, Dallas-Ft. Worth 11/11 at 100.00 AAA 3,921,190
International Airport, Joint Revenue Refunding and
Improvement Bonds, Series 2001A, 5.750%, 11/01/13
(Alternative Minimum Tax) - FGIC Insured
10,000 Gainesville Hospital District, Texas, General Obligation 8/11 at 100.00 AAA 10,496,900
Limited Tax Bonds, Series 2002, 5.375%, 8/15/32 -
MBIA Insured
3,645 Galveston, Texas, General Obligation Bonds, Series 2001A No Opt. Call AAA 3,860,930
Refunding, 5.250%, 5/01/21 - AMBAC Insured
13,000 Houston Area Water Corporation, City of Houston, Texas, 3/12 at 100.00 AAA 13,363,610
Contract Revenue Bonds, Northeast Water Purification Plant
Project, Series 2002, 5.125%, 3/01/32 - FGIC Insured
2,500 Houston Higher Education Finance Corporation, Texas, Revenue 11/09 at 101.00 AAA 2,655,450
Bonds, Rice University Project, Series 1999A, 5.375%, 11/15/29
9,145 State of Texas, General Obligation Bonds, Veterans Housing 6/12 at 100.00 Aa1 9,530,279
Assistance Program Fund II, 2002 Series A-1,
5.250%, 12/01/22 (Alternative Minimum Tax)
7,420 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 7,622,937
Residential Mortgage Revenue Bonds, Series 2001A,
5.350%, 7/01/33 (Alternative Minimum Tax)
6,000 Texas Department of Housing and Community Affairs, 7/12 at 100.00 AAA 6,166,740
Residential Mortgage Revenue Bonds, Series 2002A,
5.350%, 7/01/33 (Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Financing System
Bonds, Series 2002, Texas Southern University:
3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,731,130
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,709,622
39
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 8,910 Texas Department of Housing and Community Affairs, 3/12 at 100.00 AAA $ 9,273,973
Single Family Mortgage Bonds, 2002 Series B, 5.550%, 9/01/33
(Alternative Minimum Tax) - MBIA Insured
Texas Student Housing Authority, Austin, Student Housing Revenue
Bonds, Texas Project, Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,144,010
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,567,171
5,000 Texas Water Development Board, State Revolving Fund, 1/10 at 100.00 AAA 5,445,850
Senior Lien Revenue Bonds, Series 1999B, 5.250%, 7/15/17
Williamson County, Texas, General Obligation Road Bonds,
Series 2002:
3,500 5.200%, 2/15/21 - FSA Insured 2/12 at 100.00 AAA 3,708,110
3,000 5.250%, 2/15/22 - FSA Insured 2/12 at 100.00 AAA 3,176,190
7,340 5.250%, 2/15/23 - FSA Insured 2/12 at 100.00 AAA 7,738,268
5,000 5.250%, 2/15/25 - FSA Insured 2/12 at 100.00 AAA 5,245,400
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.0%
7,675 Energy Northwest, Washington, Nuclear Project No. 1 7/12 at 100.00 AAA 8,641,973
Electric Revenue Bonds, Series 2002A Refunding,
5.500%, 7/01/15 - MBIA Insured
6,600 Energy Northwest, Washington, Columbia Generation Station 7/12 at 100.00 AAA 7,195,914
Electric Revenue Refunding Bonds, Series 2002B,
5.350%, 7/01/18 - FSA Insured
2,500 Port of Seattle, Washington, Revenue Bonds, Series 2002D 11/12 at 100.00 AAA 2,818,800
Refunding, 5.750%, 11/01/15 (Alternative Minimum Tax) -
FGIC 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 2,229,000
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,526,588
15,000 Washington Healthcare Facilities Authority, Revenue Bonds, 8/13 at 102.00 AAA 15,162,450
Series 1998, Harrison Memorial Hospital, 5.000%, 8/15/28 -
AMBAC Insured
10,000 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 10,156,700
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.125%, 10/01/31 - AMBAC Insured
5,170 Whitman County School District No. 267, Pullman, Washington, 6/12 at 100.00 Aaa 5,425,760
General Obligation Bonds, Series 2002, 5.000%, 12/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.6%
13,005 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 13,468,888
Home Ownership Revenue Bonds, 2002 Series,
5.250%, 9/01/22 (Alternative Minimum Tax)
11,950 State of Wisconsin, Transportation Revenue Bonds, 7/12 at 100.00 AAA 12,864,415
Series 2002-1 Refunding, 5.125%, 7/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 636,340 Total Long-Term Investments (cost $632,673,062) - 143.2% 672,865,646
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 6.4%
2,500 Chester County Industrial Development Authority, VMIG-1 2,500,000
Pennsylvania, Revenue Bonds, Archdiocese of Philadelphia,
Series 2001, Variable Rate Demand Bonds, 1.350%, 7/01/31+
8,750 State of Connecticut Health and Educational Facilities Authority, A-1+ 8,750,000
Revenue Bonds, Yale University, Series 2003-X3, Variable Rate
Demand Obligations, 1.300%, 7/01/37+
5,635 Health and Educational Facilities Authority of the State of A-1+ 5,635,000
Missouri, Educational Facilities Revenue Bonds, Washington
University, Series 2003B, Variable Rate Demand Obligations,
1.400%, 2/15/33+
40
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS (continued)
$ 3,800 Nebraska Educational Finance Authority, Revenue Refunding VMIG-1 $ 3,800,000
Bonds, Creighton University Project, Series 2001, Variable
Rate Demand Bonds, 1.350%, 8/01/31+
9,350 Sublette County, Wyoming, Pollution Control Revenue Bonds, A-1+ 9,350,000
Exxon Project, Series 1984, Variable Rate Demand Bonds,
1.300%, 11/01/14+
------------------------------------------------------------------------------------------------------------------------------------
$ 30,035 Total Short-Term Investments (cost $30,035,000) 30,035,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $662,708,062) - 149.6% 702,900,646
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 0.0% 33,177
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (49.6)% (233,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 469,933,823
====================================================================================================================
At least 80% of the Fund's net assets 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 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) municipal bonds
that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or
Fitch) or unrated but judged to be of comparable quality by
the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or specified market index.
See accompanying notes to financial statements.
41
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
Portfolio of
INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 7.3%
$ 3,045 Hoover, Alabama, General Obligation Warrants, Series 2003, 3/12 at 101.00 AAA $ 3,218,078
5.000%, 3/01/20 - MBIA Insured
3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,294,215
Series 1998A, 5.400%, 6/01/22 - MBIA Insured
2,000 Huntsville Public Building Authority, Alabama, Lease Revenue 10/12 at 101.00 AAA 2,053,060
Bonds, Municipal Justice and Public Safety Center,
Series 2002, 5.000%, 10/01/29 - MBIA Insured
5,000 Jefferson County, Alabama, General Obligation Warrants, 4/12 at 100.00 AAA 5,183,700
Series 2003A Refunding, 5.000%, 4/01/23 - MBIA Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 6,417,218
Improvement Warrants, Series 2002D, 5.000%, 2/01/32 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 6.0%
5,660 Arizona Tourism and Sports Authority, Tax Revenue Bonds, 7/13 at 100.00 Aaa 6,212,869
Multipurpose Stadium Facility Project, Series 2003A,
5.375%, 7/01/20 - MBIA Insured
10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 AAA 10,295,100
Revenue Bonds, Arizona Public Service Company Palo Verde
Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 33.1%
13,500 State of California, General Obligation Bonds, Series 2002 4/12 at 100.00 AAA 14,020,425
Refunding, 5.250%, 4/01/30 - XLCA Insured
26,300 State Public Works Board of the State of California, 12/12 at 100.00 AAA 27,061,911
Lease Revenue Bonds, Department of General Services,
Capital East End, Series 2002A, 5.000%, 12/01/27 -
AMBAC Insured
2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 AAA 3,020,231
Allocation Bonds, Housing Set-Aside, Series 2002D,
5.000%, 8/01/26 - MBIA Insured
5,000 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 5,292,000
Revenue Bonds, Cerritos Redevelopment Projects, Series 2002A,
5.000%, 11/01/24 - AMBAC Insured
2,500 Irvine Public Facilities and Infrastructure Authority, California, 9/03 at 103.00 AAA 2,576,200
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 -
AMBAC Insured
20,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 21,184,600
California, General Obligation Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
3,755 Los Angeles County Metropolitan Transportation Authority, 7/08 at 101.00 AAA 3,860,027
California, Proposition C Sales Tax Revenue Bonds, Second
Senior Series 1998A Refunding, 5.000%, 7/01/23 -
AMBAC Insured
2,000 Northern California Power Agency, Hydroelectric Project 7/08 at 101.00 AAA 2,046,420
Number One Revenue Bonds, 1998 Refunding Series A,
5.000%, 7/01/28 - MBIA Insured
Plumas County, California, Certificates of Participation,
Series 2003A, Capital Improvement
Program:
1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,243,441
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,366,720
4,140 6/01/28 - AMBAC Insured 6/13 at 101.00 AAA 4,276,951
Redding Joint Power Financing Authority, California, Lease
Revenue Bonds, Series 2003A Capital Projects:
275 5.000%, 3/01/18 - AMBAC Insured 3/13 at 100.00 AAA 296,123
290 5.000%, 3/01/19 - AMBAC Insured 3/13 at 100.00 AAA 310,088
1,210 5.000%, 3/01/23 - AMBAC Insured 3/13 at 100.00 AAA 1,267,886
3,000 San Diego Redevelopment Agency, California, Merged Area 8/10 at 101.00 AAA 3,076,230
Redevelopment Project Tax Allocation Bonds, Series 2002,
5.000%, 8/01/32 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 1.9%
$ 5,250 Sand Creek Metropolitan District, Colorado, General Obligation 12/13 at 100.00 AAA $ 5,364,555
Bonds, Series 2003 Refunding, 5.000%, 12/01/31 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 1.0%
East Hartford, Connecticut, General Obligation Bonds, Series 2003:
1,690 5.250%, 5/01/14 - FGIC Insured No Opt. Call Aaa 1,939,512
780 5.250%, 5/01/15 - FGIC Insured No Opt. Call Aaa 897,546
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.7%
1,525 Fernandina Beach, Florida, Utility Acquisition and Improvement 9/13 at 100.00 AAA 1,595,730
Revenue Bonds, Series 2003, 5.000%, 9/01/23 - FGIC Insured
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 3,042,690
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.4%
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 3,920,587
Tax Revenue Bonds, Second Indenture Series 2002,
5.000%, 7/01/32 - MBIA Insured
2,435 Newnan Hospital Authority, Georgia, Revenue Anticipation 1/13 at 100.00 Aaa 2,747,240
Certificates, Newnan Hospital, Inc., Series 2002,
5.500%, 1/01/16 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 2.5%
2,200 Public Building Commission of Chicago, Illinois, Building 3/13 at 100.00 AAA 2,383,524
Revenue Bonds, Chicago Transit Authority, Series 2003,
5.250%, 3/01/19 - AMBAC Insured
1,310 Cook County School District No. 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 1,412,010
General Obligation Bonds, Series 2003B Refunding,
5.250%, 12/01/21 - FSA Insured
3,000 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 3,000,930
Forest Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 6.4%
Evansville, Indiana, Sewage Works Revenue Bonds, Series
2003A Refunding:
3,380 5.000%, 7/01/20 - AMBAC Insured 7/13 at 100.00 AAA 3,574,485
2,500 5.000%, 7/01/23 - AMBAC Insured 7/13 at 100.00 AAA 2,599,925
4,875 Indiana State Office Building Commission, Facilities Revenue 7/13 at 100.00 AAA 5,381,903
Bonds, Indiana State Museum, Series 2003, 5.250%, 7/01/17 -
MBIA Insured
The Trustees of Indiana University, Indiana University Student
Fee Revenue Bonds, 2003 Series O:
1,375 5.000%, 8/01/21 - FGIC Insured 8/13 at 100.00 AAA 1,439,501
1,000 5.000%, 8/01/22 - FGIC Insured 8/13 at 100.00 AAA 1,041,050
North Side High School Building Corporation, Fort Wayne, Allen
County, Indiana, First Mortgage Bonds, Series 2003:
2,010 5.250%, 7/15/17 - FSA Insured 7/13 at 100.00 AAA 2,212,568
1,145 5.250%, 1/15/18 - FSA Insured 7/13 at 100.00 AAA 1,251,359
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.9%
7,510 Kansas Development Finance Authority, Revenue Bonds, 4/13 at 102.00 AAA 7,944,454
Kansas Board of Regents, Scientific Research and Development
Facilities Projects, Series 2003C, 5.000%, 10/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
5,785 City of New Orleans, Louisiana, General Obligation Bonds, 12/12 at 100.00 AAA 6,123,885
Series 2002 Refunding, 5.300%, 12/01/27 - FGIC Insured
43
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 7.1%
$ 10,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA $ 10,268,000
Tax Revenue Bonds, Series 2002A Refunding, 5.000%, 7/01/27 -
FGIC Insured
4,910 Commonwealth of Massachusetts, General Obligation Bonds, No Opt. Call AAA 5,715,977
Consolidated Loan, Series 2002C, 5.500%, 11/01/15 -
MBIA Insured
3,515 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 3,544,948
System Revenue Bonds, 1997 Senior Series A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 13.1%
6,130 City of Detroit, Michigan, Water Supply System Senior Lien 7/13 at 100.00 AAA 6,385,192
Revenue Bonds, Series 2003A, 5.000%, 7/01/23 - MBIA Insured
City of Detroit, Michigan, Water Supply System Senior Lien
Revenue Bonds, Series 2003C Refunding:
4,580 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 4,816,511
4,465 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 4,669,408
10,800 Michigan Strategic Fund, Resource Recovery Limited Obligation 12/12 at 100.00 AAA 11,099,160
Revenue Bonds, Detroit Edison Company, Series 2002D
Refunding, 5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, County of Wayne, State of 5/11 at 100.00 AAA 2,361,578
Michigan, General Obligation Bonds, Series 2001 Refunding,
5.250%, 5/01/25
6,500 Charter County of Wayne, Michigan, Airport Hotel Revenue 12/11 at 101.00 AAA 6,626,230
Bonds, Detroit Metropolitan Wayne County Airport, Limited
Tax General Obligation, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.9%
5,000 City of Forsyth, Rosebud County, Montana, Pollution Control 3/13 at 101.00 AAA 5,136,600
Revenue Bonds, Puget Sound Energy, Series 2003A
Refunding, 5.000%, 3/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6%
4,355 Nebraska Public Power District, General Revenue Bonds, 1/13 at 100.00 AAA 4,463,831
Series 2002B, 5.000%, 1/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.9%
2,315 Clark County, Nevada, Airport System Subordinate Lien Revenue 7/11 at 100.00 AAA 2,389,775
Bonds, Series 2001B, 5.200%, 7/01/31 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.3%
3,075 New Jersey Transit Corporation, Certificates of Participation, No Opt. Call AAA 3,573,704
Series 2003 Refunding, 5.500%, 10/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.3%
25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 25,696,750
Revenue Bonds, Series 2002F Refunding, 5.000%, 11/15/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.0%
10,000 North Carolina Municipal Power Agency Number 1, Catawba 1/13 at 100.00 AAA 10,905,700
Electric Revenue Bonds, Series 2003A, 5.250%, 1/01/18 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.5%
9,350 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 9,612,922
Series 2002A, 5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.5%
5,000 Lehigh County Industrial Development Authority, Pennsylvania, No Opt. Call AAA 5,080,550
Pollution Control Revenue Bonds, PPL Electric Utilities
Corporation Project, Series 2003 Refunding, 3.125%, 11/01/08 -
AMBAC Insured
2,000 City of Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 2,044,140
1998 Resolution, Fourth Series, 5.000%, 8/01/32 - FSA Insured
5,000 City of Philadelphia, Pennsylvania, Water and Wastewater 8/07 at 102.00 AAA 5,145,000
Revenue Bonds, Series 1997A, 5.125%, 8/01/27 -
AMBAC Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.4%
$ 1,365 Myrtle Beach, South Carolina, Water and Sewer System 3/13 at 100.00 AAA $ 1,505,213
Revenue Bonds, Series 2003 Refunding, 5.375%, 3/01/19 -
FGIC Insured
3,460 City of Rock Hill, South Carolina, Combined Utility System 1/13 at 100.00 AAA 3,543,732
Revenue Bonds, Series 2003 Refunding, 5.000%, 1/01/30 -
FSA Insured
15,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa 15,367,500
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.4%
8,300 City of Austin, Texas, Electric Utility System Revenue Bonds, 5/13 at 100.00 AAA 8,976,035
Series 2003 Refunding, 5.250%, 11/15/19 - MBIA Insured
7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,138,009
Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25
5,515 Houston, Texas, General Obligation Bonds, Series 2002 3/12 at 100.00 AAA 5,898,568
Refunding, 5.250%, 3/01/20 - MBIA Insured
5,850 Katy Independent School District, Counties of Harris, Fort Bend 2/12 at 100.00 AAA 6,255,522
and Waller, Texas, General Obligation Bonds, Series 2002A,
5.125%, 2/15/18
4,345 City of San Antonio, Texas, Water System Refunding Bonds, 5/12 at 100.00 AAA 4,851,062
Senior Lien Refunding Series 2002, 5.500%, 5/15/17 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6%
1,500 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 1,564,110
Series 2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 10.4%
4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,025,752
Revenue Bonds, Washington Project, Series 2002,
5.000%, 12/01/31 - MBIA Insured
5,250 Public Utility District No. 1 of Chelan County, Washington, 7/12 at 100.00 AAA 5,389,493
Chelan Hydro Consolidated System Revenue Bonds,
Series 2002C, 5.125%, 7/01/33 - AMBAC Insured
5,400 Clark County School District No. 114, Evergreen, Washington, 6/13 at 100.00 Aaa 5,906,250
General Obligation Bonds, Series 2003, 5.250%, 6/01/18 -
FSA Insured
2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 Aaa 2,199,242
Revenue Bonds, Bremerton Government Center Project,
Series 2003, 5.000%, 7/01/23 - MBIA Insured
9,670 State of Washington, General Obligation Bonds, 6/13 at 100.00 AAA 10,166,264
Series 2003D, 5.000%, 12/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2%
3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,361,109
Bonds, Series 1998A Refunding, Regional Jail Project,
5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0%
4,750 Wisconsin Health and Educational Facilities Authority, 8/08 at 102.00 AAA 4,895,254
Revenue Bonds, Wausau Hospital, Inc., Series 1998A
Refunding, 5.125%, 8/15/20 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call AAA 3,472,019
Revenue Bonds, Meriter Hospital, Inc., Series 1992A,
6.000%, 12/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 392,650 Total Long-Term Investments (cost $399,516,205) - 149.6% 411,498,057
=============-----------------------------------------------------------------------------------------------------------------------
45
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2003 (Unaudited)
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2%
$ 2,000 California Statewide Communities Development Authority, A-1 $ 2,000,000
Revenue Bonds, Fremont-Rideout Health Group, Series 2001A,
Variable Rate Demand Bonds, 1.350%, 1/01/31 -
AMBAC Insured+
1,500 Guilford County, North Carolina, General Obligation Bonds, A-1+ 1,500,000
Series 2002C, Variable Rate Demand Obligations,
1.350%, 10/01/21+
------------------------------------------------------------------------------------------------------------------------------------
$ 3,500 Total Short-Term Investments (cost $3,500,000) 3,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $403,016,205) - 150.8% 414,998,057
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.5% 4,112,491
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (52.3)% (144,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $275,110,548
====================================================================================================================
At least 80% of the Fund's net assets 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 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) municipal bonds
that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or
Fitch) or unrated but judged to be of comparable quality by
the Adviser.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares.
* Optional Call Provisions: 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.
** Ratings: Using the higher of Standard & Poor's or Moody's
rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term security. The rate disclosed is that currently in
effect. This rate changes periodically based on market
conditions or a specified market index.
See accompanying notes to financial statements.
46
Statement of
ASSETS AND LIABILITIES April 30, 2003 (Unaudited)
INSURED INSURED
INSURED INSURED PREMIER INSURED DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $844,158,002, $1,803,845,543,
$427,551,005, $736,636,607,
$662,708,062 and $403,016,205,
respectively) $917,359,398 $1,964,648,924 $465,677,891 $802,734,145 $702,900,646 $414,998,057
Cash -- 510,396 -- -- -- --
Receivables:
Interest 12,811,590 29,575,861 8,518,372 14,199,696 9,344,483 6,035,062
Investments sold 749,343 1,840,000 95,000 2,180,607 -- --
Other assets 19,505 78,989 7,106 15,107 3,487 13,938
------------------------------------------------------------------------------------------------------------------------------------
Total assets 930,939,836 1,996,654,170 474,298,369 819,129,555 712,248,616 421,047,057
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 821,585 -- 2,253,501 7,364,263 7,831,325 1,527,554
Payable for investments purchased -- 6,508,005 -- -- 1,158,801 --
Accrued expenses:
Management fees 473,323 991,612 244,024 414,422 187,801 107,850
Organization and offering cost -- -- -- -- 4,213 51,000
Other 263,457 541,248 121,496 383,527 109,752 229,698
Preferred share dividends payable 38,630 99,459 25,328 34,091 22,901 20,407
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,596,995 8,140,324 2,644,349 8,196,303 9,314,793 1,936,509
------------------------------------------------------------------------------------------------------------------------------------
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 $611,342,841 $1,308,513,846 $310,654,020 $542,033,252 $469,933,823 $275,110,548
====================================================================================================================================
Common shares outstanding 37,946,735 81,060,946 19,342,905 37,266,640 29,807,822 18,507,252
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by Common
shares outstanding) $ 16.11 $ 16.14 $ 16.06 $ 14.54 $ 15.77 $ 14.87
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 379,467 $ 810,609 $ 193,429 $ 372,666 $ 298,078 $ 185,073
Paid-in surplus 528,871,415 1,127,616,209 268,210,663 490,562,181 423,485,437 261,255,460
Undistributed net
investment income 7,685,087 16,329,259 3,135,225 5,392,299 1,859,933 141,730
Accumulated net realized gain
(loss) from investments 1,205,476 2,954,388 987,817 (20,391,432) 4,097,791 1,546,433
Net unrealized appreciation
of investments 73,201,396 160,803,381 38,126,886 66,097,538 40,192,584 11,981,852
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $611,342,841 $1,308,513,846 $310,654,020 $542,033,252 $469,933,823 $275,110,548
====================================================================================================================================
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.
47
Statement of
OPERATIONS Six Months Ended April 30, 2003 (Unaudited)
INSURED INSURED
INSURED INSURED PREMIER INSURED DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME PREMIUM INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)*
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $24,607,225 $50,948,083 $12,147,071 $21,028,685 $17,231,993 $ 6,955,237
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,846,166 5,959,873 1,462,698 2,487,717 2,157,743 985,668
Preferred shares - auction fees 394,233 843,014 199,596 333,362 288,856 102,575
Preferred shares - dividend
disbursing agent fees 24,795 34,712 14,877 24,795 14,877 5,699
Shareholders' servicing agent fees
and expenses 65,006 107,159 25,308 40,269 5,280 8,231
Custodian's fees and expenses 101,518 221,746 61,078 90,142 84,870 38,867
Directors'/Trustees' fees
and expenses 5,959 10,413 2,728 5,463 5,067 1,977
Professional fees 15,249 30,162 10,005 12,722 15,363 8,820
Shareholders' reports - printing
and mailing expenses 36,285 79,327 16,451 20,682 33,813 22,930
Stock exchange listing fees 7,986 15,610 7,717 7,927 796 476
Investor relations expense 60,156 126,378 30,318 52,604 50,975 13,336
Portfolio insurance expense 20,532 23,375 -- 10,102 -- --
Other expenses 25,185 47,434 15,041 20,993 9,671 1,463
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and
expense reimbursement 3,603,070 7,499,203 1,845,817 3,106,778 2,667,311 1,190,042
Custodian fee credit (23,673) (67,176) (26,288) (43,579) (11,717) (23,826)
Expense reimbursement -- -- -- -- (1,030,288) (494,363)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,579,397 7,432,027 1,819,529 3,063,199 1,625,306 671,853
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 21,027,828 43,516,056 10,327,542 17,965,486 15,606,687 6,283,384
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
FROM INVESTMENTS
Net realized gain from investments 1,204,105 3,480,435 1,010,924 1,317,429 4,100,169 1,546,433
Change in net unrealized
appreciation
(depreciation) of
investments 11,800,424 31,531,585 8,630,482 11,986,743 11,236,177 11,981,852
------------------------------------------------------------------------------------------------------------------------------------
Net gain from investments 13,004,529 35,012,020 9,641,406 13,304,172 15,336,346 13,528,285
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment income (1,376,916) (2,890,403) (773,668) (1,348,458) (1,058,866) (404,455)
From accumulated net realized
gains from investments (433,291) (990,259) (66,219) -- (389,279) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to
Common shares from distributions
to Preferred shareholders (1,810,207) (3,880,662) (839,887) (1,348,458) (1,448,145) (404,455)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations $32,222,150 $74,647,414 $19,129,061 $29,921,200 $29,494,888 $19,407,214
====================================================================================================================================
*For the period November 22, 2002 (commencement of operations) through
April 30, 2003.
See accompanying notes to financial statements.
48
Statement of
CHANGES IN NET ASSETS (Unaudited)
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
--------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/03 10/31/02 4/30/03 10/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 21,027,828 $ 42,568,954 $ 43,516,056 $ 93,065,833
Net realized gain from investments 1,204,105 4,974,138 3,480,435 11,512,148
Change in net unrealized appreciation (depreciation)
of investments 11,800,424 (3,800,192) 31,531,585 (10,056,251)
Distributions to Preferred Shareholders:
From net investment income (1,376,916) (4,177,031) (2,890,403) (8,962,116)
From accumulated net realized gains from investments (433,291) (252,858) (990,259) (425,567)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 32,222,150 39,313,011 74,647,414 85,134,047
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (18,709,752) (34,809,135) (39,444,779) (74,985,371)
From accumulated net realized gains from investments (4,511,581) (824,876) (10,041,988) (1,454,843)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (23,221,333) (35,634,011) (49,486,767) (76,440,214)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 846,926 817,396 -- --
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 846,926 817,396 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares 9,847,743 4,496,396 25,160,647 8,693,833
Net assets applicable to Common shares at the
beginning of period 601,495,098 596,998,702 1,283,353,199 1,274,659,366
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares
at the end of period $611,342,841 $601,495,098 $1,308,513,846 $1,283,353,199
====================================================================================================================================
Undistributed net investment income at the end of period $ 7,685,087 $ 6,743,927 $ 16,329,259 $ 15,148,385
====================================================================================================================================
See accompanying notes to financial statements.
49
Statement of
CHANGES IN NET ASSETS (Unaudited) (continued)
PREMIER INSURED INSURED PREMIUM
INCOME (NIF) INCOME 2 (NPX)
--------------------------------- ---------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/03 10/31/02 4/30/03 10/31/02
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,327,542 $ 21,949,356 $ 17,965,486 $ 36,821,783
Net realized gain from investments 1,010,924 1,473,037 1,317,429 5,701,469
Change in net unrealized appreciation (depreciation)
of investments 8,630,482 (2,260,720) 11,986,743 159,715
Distributions to Preferred Shareholders:
From net investment income (773,668) (2,181,015) (1,348,458) (3,630,320)
From accumulated net realized gains from investments (66,219) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 19,129,061 18,980,658 29,921,200 39,052,647
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,392,421) (18,123,654) (15,871,103) (30,549,239)
From accumulated net realized gains from investments (674,644) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (10,067,065) (18,123,654) (15,871,103) (30,549,239)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 470,703 610,174 183,500 --
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 470,703 610,174 183,500 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares 9,532,699 1,467,178 14,233,597 8,503,408
Net assets applicable to Common shares at the
beginning of period 301,121,321 299,654,143 527,799,655 519,296,247
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the
end of period $310,654,020 $301,121,321 $542,033,252 $527,799,655
====================================================================================================================================
Undistributed net investment income at the
end of period $ 3,135,225 $ 2,973,772 $ 5,392,299 $ 4,646,374
====================================================================================================================================
See accompanying notes to financial statements.
50
INSURED DIVIDEND INSURED TAX-FREE
ADVANTAGE (NVG) ADVANTAGE (NEA)
------------------------ -----------------
FOR THE FOR THE
PERIOD PERIOD
3/25/02 11/22/02
(COMMENCEMENT (COMMENCEMENT
SIX MONTHS OF OPERATIONS) OF OPERATIONS)
ENDED THROUGH THROUGH
4/30/03 10/31/02 4/30/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,606,687 $ 16,506,478 $ 6,283,384
Net realized gain from investments 4,100,169 3,519,698 1,546,433
Change in net unrealized appreciation (depreciation) of investments 11,236,177 28,956,407 11,981,852
Distributions to Preferred Shareholders:
From net investment income (1,058,866) (1,473,247) (404,455)
From accumulated net realized gains from investments (389,279) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 29,494,888 47,509,336 19,407,214
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,860,639) (13,860,480) (5,737,199)
From accumulated net realized gains from investments (3,132,797) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (16,993,436) (13,860,480) (5,737,199)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- 426,270,921 264,457,500
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- 12,436 3,758
Preferred shares offering costs -- (2,600,117) (3,121,000)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions -- 423,683,240 261,340,258
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares 12,501,452 457,332,096 275,010,273
Net assets applicable to Common shares at the beginning of period 457,432,371 100,275 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $469,933,823 $457,432,371 $275,110,548
====================================================================================================================================
Undistributed net investment income at the end of period $ 1,859,933 $ 1,172,751 $ 141,730
====================================================================================================================================
See accompanying notes to financial statements.
51
Notes to
FINANCIAL STATEMENTS (Unaudited)
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The National 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). 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 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.
Prior to the commencement of operations of Insured Dividend Advantage (NVG) and
Insured Tax-Free Advantage (NEA), the Funds had no operations other than those
related to organizational matters, the initial capital contribution of $100,275
per Fund by Nuveen Advisory Corp. (the "Adviser"), a wholly owned subsidiary of
Nuveen Investments, Inc. (formerly, The John Nuveen Company), and the recording
of the organization expenses ($11,500 per Fund) and its reimbursement by Nuveen
Investments, LLC (formerly, Nuveen Investments), also a wholly owned subsidiary
of Nuveen Investments, Inc.
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.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with
accounting principles generally accepted in the United States.
Securities 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
price quotes are not readily available (which is usually the case for municipal
securities), the pricing service establishes fair market 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 and general
market conditions. If it is determined that market prices for a security are
unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or
its designee, may establish a fair value for the security. Temporary investments
in securities that have variable rate and demand features qualifying them as
short-term securities are valued at amortized cost, which approximates market
value.
Securities Transactions
Securities transactions are recorded on a trade date basis. Realized gains and
losses from such transactions are determined on the specific identification
method. Securities purchased or sold on a when-issued or delayed delivery basis
may have extended settlement periods. The securities 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 and delayed delivery purchase commitments. At April 30, 2003,
Insured Opportunity (NIO) had outstanding when-issued purchase commitments of
$6,508,005. At April 30, 2003, 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.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to comply with the requirements of the Internal Revenue Code applicable
to regulated investment companies and to distribute all of its net investment
income to its shareholders. 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 income
tax, 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.
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared and paid 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.
52
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 accounting
principles generally accepted in the United States.
Preferred Shares
The Funds have issued and outstanding $25,000 stated value Preferred shares.
Each Fund's Preferred shares are issued in more than one Series. The dividend
rate on each Series may change every seven days, as set pursuant to a dutch
auction process by the auction agent, and is payable at or near 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
=========================================================================================================
Effective January 17, 2003, Insured Tax-Free Advantage (NEA) issued 2,880 Series
T and 2,880 Series W, $25,000 stated value Preferred shares.
Insurance
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) invest 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 in municipal securities that are covered by
insurance. Each Fund may also invest up to 20% of its net assets 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)
municipal bonds that are rated, at the time of investment, within the four
highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but
judged to be of comparable quality by the Adviser.
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 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.
Derivative Financial Instruments
The Funds may invest in certain derivative financial instruments including
futures, forward, swap and option contracts, and other financial instruments
with similar characteristics. Although the Funds are authorized to invest in
such financial instruments, and may do so in the future, they did not make any
such investments during the period ended April 30, 2003.
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by credits earned on each Fund's cash on deposit
with the bank. Such deposit arrangements are an alternative to overnight
investments.
Offering Costs
Nuveen Investments, LLC has agreed to pay all Common share offering costs (other
than the sales load) that exceed $.03 per Common share for Insured Dividend
Advantage (NVG) and Insured Tax-Free Advantage (NEA). Insured Dividend
Advantage's (NVG) and Insured Tax-Free Advantage's (NEA) share of Common share
offering costs ($614,079 and $555,000, respectively) were recorded as a
reduction of the proceeds from the sale of Common shares.
Costs incurred by Insured Dividend Advantage (NVG) and Insured Tax-Free
Advantage (NEA) in connection with their offering of Preferred shares
($2,600,117 and $3,121,000, respectively) were recorded as a reduction to
paid-in surplus.
53
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States 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.
2. FUND SHARES
Transactions in Common and Preferred shares were as follows:
INSURED INSURED PREMIER INSURED
QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF)
----------------------- ------------------------ -----------------------
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
4/30/03 10/31/02 4/30/03 10/31/02 4/30/03 10/31/02
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions 52,021 51,548 -- -- 29,543 39,202
---------------------------------------------------------------------------------------------------------
52,021 51,548 -- -- 29,543 39,202
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
INSURED INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA)
----------------------- --------------------------- ------------------------
FOR THE FOR THE
PERIOD PERIOD
3/25/02 11/22/02
(COMMENCEMENT (COMMENCEMENT
SIX MONTHS YEAR SIX MONTHS OF OPERATIONS) OF OPERATIONS)
ENDED ENDED ENDED THROUGH THROUGH
4/30/03 10/31/02 4/30/03 10/31/02 4/30/03
-----------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- 29,800,000 18,500,000
Shares issued to shareholders
due to reinvestment
of distributions 12,681 -- -- 822 252
-----------------------------------------------------------------------------------------------------------
12,681 -- -- 29,800,822 18,500,252
===========================================================================================================
Preferred shares sold -- -- -- 9,320 5,760
===========================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended April 30, 2003, 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 $24,370,136 $228,952,201 $59,893,468 $64,023,629 $ 79,258,845 $480,780,606
Sales and maturities 62,006,175 253,887,588 56,323,168 44,557,755 100,778,928 82,693,923
=========================================================================================================
* For the period November 22, 2002 (commencement of operations) through April
30, 2003.
54
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 timing differences in recognizing income on taxable market
discount securities and timing differences in recognizing certain gains and
losses on security transactions.
At April 30, 2003, the cost of investments 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)
-------------------------------------------------------------------------------------------------------------
Cost of Investments $843,520,559 $1,803,596,845 $427,544,818 $736,553,044 $662,669,263 $403,013,440
=============================================================================================================
Gross unrealized appreciation and gross unrealized depreciation on investments
at April 30, 2003, 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 $73,838,839 $161,667,421 $38,154,373 $66,284,968 $40,415,262 $11,984,617
Depreciation -- (615,342) (21,300) (103,867) (183,879) --
-------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
on investments $73,838,839 $161,052,079 $38,133,073 $66,181,101 $40,231,383 $11,984,617
=============================================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2002, the Funds' last fiscal year end, were as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
---------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income $9,238,467 $20,499,679 $4,517,140 $7,145,720 $3,495,989
Undistributed net ordinary income * 538,152 410,238 22,665 51,966 3,519,698
Undistributed net long-term
capital gains 4,408,091 11,027,375 739,056 -- --
=========================================================================================================
* 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 period ended October 31,
2002, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG)
---------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt $38,550,143 $83,471,540 $20,196,415 $34,005,278 $12,987,249
income
Distributions from net ordinary 123,801 5,439 -- -- --
income *
Distributions from net long-term
capital gains 1,077,734 1,880,410 -- -- --
=========================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2002, the Funds' last fiscal year end, the following Fund 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:
INSURED
PREMIUM
INCOME 2
(NPX)
--------------------------------------------------------------------------------
Expiration year:
2003 $ 4,278,245
2004 2,080,786
2005 --
2006 --
2007 --
2008 15,327,981
--------------------------------------------------------------------------------
Total $21,687,012
================================================================================
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Under the Funds' (excluding Insured Dividend Advantage (NVG) and Insured
Tax-Free Advantage (NEA)) investment management agreements with the Adviser,
each Fund pays an annual management fee, payable monthly, at the rates set forth
below, which are based upon the average daily net assets (including net assets
attributable to Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For the next $3 billion .5875
For net assets over $5 billion .5750
================================================================================
Under Insured Dividend Advantage's (NVG) and Insured Tax-Free Advantage's (NEA)
investment management agreements with the Adviser, each Fund pays an annual
management fee, payable monthly, at the rates set forth below, which are based
upon the average daily net assets (including net assets attributable to
Preferred shares) of each Fund as follows:
AVERAGE DAILY NET ASSETS (INCLUDING NET ASSETS
ATTRIBUTABLE TO PREFERRED SHARES) MANAGEMENT FEE
--------------------------------------------------------------------------------
For the first $125 million .6500%
For the next $125 million .6375
For the next $250 million .6250
For the next $500 million .6125
For the next $1 billion .6000
For net assets over $2 billion .5750
================================================================================
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.
56
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.
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 their officers, all of whom receive remuneration for their
services to the Funds from the Adviser.
6. INVESTMENT COMPOSITION
At April 30, 2003, the revenue sources by municipal purpose, expressed as a
percent of total investments, 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)
---------------------------------------------------------------------------------------------------------
Education and Civic Organizations 3% 3% 2% 4% 12% 1%
Healthcare 16 11 15 12 5 8
Housing/Multifamily 7 3 4 8 -- --
Housing/Single Family 3 8 3 2 5 --
Tax Obligation/General 10 5 16 11 25 25
Tax Obligation/Limited 9 12 13 12 13 31
Transportation 22 21 20 15 22 8
U.S. Guaranteed 11 13 16 11 2 --
Utilities 14 14 9 22 5 17
Water and Sewer 4 10 -- 3 10 10
Other 1 -- 2 -- 1 --
---------------------------------------------------------------------------------------------------------
100% 100% 100% 100% 100% 100%
=========================================================================================================
Certain investments owned by the Funds are either covered by insurance issued by
several private insurers or are backed by an escrow or trust containing U.S.
Government or U.S. Government agency securities, both of which ensure the timely
payment of principal and interest in the event of default (100% for Insured
Quality (NQI), 100% for Insured Opportunity (NIO), 100% for Premier Insured
Income (NIF), 100% for Insured Premium Income 2 (NPX), 83% for Insured Dividend
Advantage (NVG) and 94% for Insured Tax-Free Advantage (NEA)).
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 2, 2003, to shareholders of record on
May 15, 2003, 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 $.0845 $.0810 $.0815 $.0720 $.0775 $.0775
=========================================================================================================
57
Financial
HIGHLIGHTS (Unaudited)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- -------------------------------
Distributions Distributions
from Net from Net
Beginning Net Investment Capital Investment Capital
Common Realized/ Income to Gains to Income to Gains to
Share Net Unrealized Preferred Preferred Common Common
Net Asset Investment Investment Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) $15.87 $ .55 $ .35 $(.04) $(.01) $ .85 $(.49) $(.12) $ (.61)
2002 15.78 1.12 .03 (.11) (.01) 1.03 (.92) (.02) (.94)
2001 14.51 1.18 1.20 (.26) -- 2.12 (.85) -- (.85)
2000 13.95 1.20 .60 (.34) -- 1.46 (.90) -- (.90)
1999 16.02 1.17 (1.91) (.22) (.04) (1.00) (.92) (.13) (1.05)
1998 15.68 1.18 .36 (.25) -- 1.29 (.94) (.01) (.95)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 15.83 .54 .43 (.04) (.01) .92 (.49) (.12) (.61)
2002 15.72 1.15 .03 (.11) (.01) 1.06 (.93) (.02) (.95)
2001 14.64 1.17 1.04 (.26) -- 1.95 (.87) -- (.87)
2000 14.25 1.21 .39 (.33) -- 1.27 (.88) -- (.88)
1999 16.04 1.18 (1.73) (.24) (.01) (.80) (.94) (.04) (.98)
1998 15.78 1.21 .28 (.26) -- 1.23 (.97) -- (.97)
PREMIER INSURED
INCOME (NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 15.59 .53 .50 (.04) -- .99 (.49) (.03) (.52)
2002 15.55 1.14 (.05) (.11) -- .98 (.94) -- (.94)
2001 14.66 1.18 .85 (.26) -- 1.77 (.88) -- (.88)
2000 14.25 1.20 .43 (.33) -- 1.30 (.89) -- (.89)
1999 16.18 1.16 (1.89) (.23) (.01) (.97) (.90) (.04) (.94)
1998 15.84 1.16 .38 (.25) (.01) 1.28 (.92) (.02) (.94)
INSURED PREMIUM
INCOME 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 14.17 .48 .36 (.04) -- .80 (.43) -- (.43)
2002 13.94 .99 .16 (.10) -- 1.05 (.82) -- (.82)
2001 13.05 1.01 .86 (.23) -- 1.64 (.75) -- (.75)
2000 12.40 .99 .66 (.29) -- 1.36 (.71) -- (.71)
1999 14.10 .97 (1.71) (.23) -- (.97) (.73) -- (.73)
1998 13.60 .95 .53 (.25) -- 1.23 (.73) -- (.73)
INSURED DIVIDEND
ADVANTAGE (NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 15.35 .52 .52 (.04) (.01) .99 (.47) (.11) (.58)
2002(a) 14.33 .55 1.10 (.05) -- 1.60 (.47) -- (.47)
INSURED TAX-FREE
ADVANTAGE (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(b) 14.33 .34 .73 (.02) -- 1.05 (.31) -- (.31)
====================================================================================================================================
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:
2003(c) $ -- $16.11 $16.7100 11.61% 5.48%
2002 -- 15.87 15.5500 10.82 6.83
2001 -- 15.78 14.9200 15.53 14.94
2000 -- 14.51 13.6875 10.94 10.86
1999 (.02) 13.95 13.1875 (9.65) (6.77)
1998 -- 16.02 15.6250 6.13 8.43
INSURED OPPORTUNITY (NIO)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) -- 16.14 16.1200 10.15 5.93
2002 -- 15.83 15.2100 9.80 7.01
2001 -- 15.72 14.7400 19.84 13.61
2000 -- 14.64 13.0625 5.06 9.25
1999 (.01) 14.25 13.3125 (14.71) (5.33)
1998 -- 16.04 16.6250 12.03 7.99
PREMIER INSURED
INCOME (NIF)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) -- 16.06 16.2400 9.48 6.46
2002 -- 15.59 15.3300 6.84 6.57
2001 -- 15.55 15.2500 19.97 12.40
2000 -- 14.66 13.5000 9.92 9.41
1999 (.02) 14.25 13.1250 (17.33) (6.42)
1998 -- 16.18 16.8750 14.06 8.35
INSURED PREMIUM
INCOME 2 (NPX)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) -- 14.54 14.5900 9.11 5.70
2002 -- 14.17 13.7700 6.32 7.83
2001 -- 13.94 13.7500 29.46 12.85
2000 -- 13.05 11.2500 4.35 11.35
1999 -- 12.40 11.5000 (11.16) (7.21)
1998 -- 14.10 13.6875 16.35 9.28
INSURED DIVIDEND
ADVANTAGE (NVG)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) .01 15.77 15.0800 4.72 6.64
2002(a) (.11) 15.35 14.9600 2.84 10.44
INSURED TAX-FREE
ADVANTAGE (NEA)
--------------------------------------------------------------------------------------
Year Ended 10/31:
2003(b) (.20) 14.87 15.0500 2.43 5.98
======================================================================================
Ratios/Supplemental Data
----------------------------------------------------------------------------------------------
Before Credit/Reimbursement After Credit/Reimbursement***
----------------------------- ------------------------------
Ratio of Net Ratio of Net
Ratio of Investment Ratio of Investment
Ending Expenses Income to Expenses Income to
Net to Average Average to Average Average
Assets Net Assets Net Assets Net Assets Net Assets
Applicable Applicable Applicable Applicable Applicable Portfolio
to Common to Common to Common to Common to Common Turnover
Shares (000) Shares++ Shares++ Shares++ Shares++ Rate
===========================================================================================================================
INSURED QUALITY (NQI)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) $ 611,343 1.21%* 7.04%* 1.20%* 7.05%* 3%
2002 601,495 1.23 7.22 1.21 7.24 44
2001 596,999 1.24 7.72 1.23 7.74 34
2000 549,120 1.24 8.48 1.23 8.49 24
1999 527,789 1.19 7.67 1.18 7.67 27
1998 603,179 1.13 7.49 1.13 7.49 16
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 1,308,514 1.18* 6.82* 1.17* 6.83* 12
2002 1,283,353 1.20 7.42 1.19 7.42 37
2001 1,274,659 1.21 7.69 1.20 7.70 39
2000 1,186,701 1.20 8.47 1.20 8.48 16
1999 1,155,516 1.16 7.67 1.16 7.67 26
1998 1,292,589 1.13 7.60 1.13 7.60 12
PREMIER INSURED
INCOME (NIF)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 310,654 1.23* 6.84* 1.21* 6.86* 12
2002 301,121 1.25 7.40 1.23 7.42 43
2001 299,654 1.26 7.79 1.24 7.81 34
2000 282,544 1.26 8.37 1.24 8.39 21
1999 274,668 1.19 7.49 1.18 7.50 32
1998 310,466 1.16 7.29 1.16 7.29 10
INSURED PREMIUM
INCOME 2 (NPX)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 542,033 1.18* 6.79* 1.16* 6.80* 6
2002 527,800 1.20 7.13 1.19 7.14 26
2001 519,296 1.22 7.39 1.20 7.41 27
2000 486,009 1.22 7.87 1.20 7.88 55
1999 461,955 1.21 7.11 1.21 7.11 35
1998 524,962 1.20 6.89 1.20 6.89 31
INSURED DIVIDEND
ADVANTAGE (NVG)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(c) 469,934 1.17* 6.39* .71* 6.85* 12
2002(a) 457,432 1.10* 5.71* .61* 6.20* 22
INSURED TAX-FREE
ADVANTAGE (NEA)
---------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2003(b) 275,111 1.03* 4.98* .58* 5.43* 23
===========================================================================================================================
Preferred Shares at End of Period
----------------------------------------
Aggregate Liquidation
Amount and Market Asset
Outstanding Value Coverage
(000) Per Share Per Share
=================================================================
INSURED QUALITY (NQI)
-----------------------------------------------------------------
Year Ended 10/31:
2003(c) $318,000 $25,000 $73,062
2002 318,000 25,000 72,287
2001 318,000 25,000 71,934
2000 318,000 25,000 68,170
1999 318,000 25,000 66,493
1998 260,000 25,000 82,998
INSURED OPPORTUNITY (NIO)
-----------------------------------------------------------------
Year Ended 10/31:
2003(c) 680,000 25,000 73,107
2002 680,000 25,000 72,182
2001 680,000 25,000 71,862
2000 680,000 25,000 68,629
1999 680,000 25,000 67,482
1998 600,000 25,000 78,858
PREMIER INSURED
INCOME (NIF)
-----------------------------------------------------------------
Year Ended 10/31:
2003(c) 161,000 25,000 73,238
2002 161,000 25,000 71,758
2001 161,000 25,000 71,530
2000 161,000 25,000 68,873
1999 161,000 25,000 67,650
1998 140,000 25,000 80,440
INSURED PREMIUM
INCOME 2 (NPX)
-----------------------------------------------------------------
Year Ended 10/31:
2003(c) 268,900 25,000 75,394
2002 268,900 25,000 74,070
2001 268,900 25,000 73,280
2000 268,900 25,000 70,185
1999 268,900 25,000 67,949
1998 268,900 25,000 73,806
INSURED DIVIDEND
ADVANTAGE (NVG)
-----------------------------------------------------------------
Year Ended 10/31:
2003(c) 233,000 25,000 75,422
2002(a) 233,000 25,000 74,081
INSURED TAX-FREE
ADVANTAGE (NEA)
-----------------------------------------------------------------
Year Ended 10/31:
2003(b) 144,000 25,000 72,762
=================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of reinvested
dividend income, reinvested capital gains distributions, if any, and
changes in stock price per share. Total Return on Common Share Net Asset
Value is the combination of reinvested dividend income, reinvested capital
gains distributions, if any, and changes in Common share net asset value
per share. 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) For the period March 25, 2002 (commencement of operations) through October
31, 2002.
(b) For the period November 22, 2002 (commencement of operations) through April
30, 2003.
(c) For the six months ended April 30, 2003.
See accompanying notes to financial statements.
58-59 SPREAD
Build Your Wealth
AUTOMATICALLY
SIDEBAR TEXT: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END EXCHANGE-TRADED FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Exchange-Traded 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
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. 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
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.
FLEXIBILITY
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.
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.
60
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Anne E. Impellizzeri
Peter R. Sawers
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
FUND MANAGER
Nuveen Advisory Corp.
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Nuveen Funds
P.O. Box 43071
Providence, RI 02940-3071
(800) 257-8787
LEGAL COUNSEL
Morgan, Lewis &
Bockius LLP
Washington, D.C.
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
POLICY CHANGE
On November 14, 2002, the Board adopted a policy that allows these Funds, in
addition to investments in municipal bonds, to invest up to 5% of its net assets
(including assets attributable to preferred shares, if any) in tax-exempt or
taxable fixed-income securities or equity securities for the purpose of
acquiring control of an issuer whose municipal bonds (a) the Fund already owns
and (b) have deteriorated or are expected shortly to deteriorate significantly
in credit quality, provided Nuveen Advisory determines that such investment
should enable the Fund to better maximize the value of its existing investment
in such issuer. This policy is a non-fundamental policy of each Fund which means
that it can be changed at any time by the Board of Trustees without vote of the
shareholders.
GLOSSARY OF TERMS USED IN THIS REPORT
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 (including change in NAV and reinvested dividends) that
would have been necessary on an annual basis to equal the investment's actual
performance over the time period being considered.
Average Effective Maturity: The average of all the maturities of the bonds in a
fund's portfolio, computed by weighting each maturity date (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.
Leverage-Adjusted Duration: Duration is a measure of a bond or bond fund's
sensitivity to changes in interest rates. Generally, the longer a bond 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 generally longer than the duration of the actual
portfolio of individual bonds that make up the Fund.
Market Yield (also known as Dividend Yield or Current Yield): An investment's
current annualized dividend divided by its current market price.
Net Asset Value (NAV): A fund's NAV is calculated by subtracting the liabilities
of 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.
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.
---------
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the six-month period ended April 30, 2003. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
61
Serving Investors
FOR GENERATIONS
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
Managing $80 billion in assets, Nuveen Investments offers access to
a number of different asset classes and investing solutions through a variety of
products. Nuveen Investments markets its capabilities under four distinct
brands: Nuveen, a leader in tax-free investments; NWQ, a leader in value-style
equities; Rittenhouse, a leader in growth-style equities; and Symphony, a
leading institutional manager of market-neutral alternative investment
portfolios.
To learn more about the products and services Nuveen Investments offers and for
a prospectus, where applicable, talk to your financial advisor, or call us at
(800) 257-8787. Please read the information carefully before you invest.
Distributed by
NUVEEN INVESTMENTS, LLC | 333 West Wacker Drive | Chicago, Illinois 60606 |
www.nuveen.com
ESA-D-0403D
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable at this time.
ITEMS 5-6. [RESERVED]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES
Not applicable to this registrant.
ITEM 8. [RESERVED]
ITEM 9. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive officer and principal financial officer
have concluded that the registrant's Disclosure Controls and Procedures are
effective, based on their evaluation of such Disclosure Controls and Procedures
as of a date within 90 days of the filing of this report on Form N-CSR.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation.
ITEM 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date July 8, 2003
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(Principal Executive Officer)
Date July 8, 2003
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date July 8, 2003
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.