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 31
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Date of reporting period: April 30, 2004
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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.
Nuveen
Municipal Closed-End
Exchange-Traded
Funds
SEMIANNUAL REPORT April 30, 2004
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NQI
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NIO
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NIF
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NPX
NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND
NVG
NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND
NEA
Photo of: Man holding up small boy.
Photo of: 2 women with 2 girls looking at seashells.
DEPENDABLE,
TAX-FREE INCOME
BECAUSE
IT'S NOT WHAT YOU EARN,
IT'S WHAT YOU KEEP.(R)
Logo: NUVEEN Investments
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If you decide you do not like receiving your reports electronically, it's a
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IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME FROM YOUR FINANCIAL ADVISOR OR BROKERAGE ACCOUNT,
FOLLOW THE STEPS OUTLINED BELOW:
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3 Click Submit. Confirm the information you just entered is correct, then
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IF YOUR NUVEEN FUND DIVIDENDS AND STATEMENTS
COME DIRECTLY TO YOU FROM NUVEEN,
FOLLOW THE STEPS OUTLINED BELOW:
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Logo: NUVEEN Investments
Photo of: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Sidebar text: WE THINK THAT MUNICIPAL BOND INVESTMENTS LIKE YOUR NUVEEN FUND CAN
BE IMPORTANT BUILDING BLOCKS IN A WELL-BALANCED PORTFOLIO.
Dear
SHAREHOLDER
I am very pleased to report that for the period ended April 30, 2004, your
Nuveen Fund continued to provide you with attractive monthly tax-free income.
While tax-free income is always welcome, we know that many shareholders are
beginning to wonder whether interest rates will rise significantly, and whether
that possibility should cause them to adjust that portion of their investment
portfolios allocated to tax-free municipal bonds. We believe this is a question
you should consider carefully with the help of a trusted financial advisor. In
many cases, it may be more appropriate to focus on long-term goals and
objectives rather than shorter-term market movements, and this is where a
professional advisor may be able to help keep you focused on the larger
objectives of your investment program.
As you read through this report, please review the inside front cover and
consider receiving future Fund reports and other Fund information by e-mail and
the Internet. Not only will you be able to receive the information faster, but
this also may help lower your Fund's expenses. Sign up is quick and easy.
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 15, 2004
1
Nuveen National Insured Municipal Closed-End Exchange-Traded Funds
(NQI, NIO, NIF, NPX, NVG, NEA)
Portfolio Manager's
COMMENTS
Portfolio manager Tom O'Shaughnessy reviews the market environment, key
investment strategies, and the six-month performance of the Funds. With 21 years
of investment experience at Nuveen, Tom assumed portfolio management
responsibility for NEA at its inception in 2002, adding NQI, NIO, NIF, NPX, and
NVG in 2003. After the end of this six-month reporting period, management
responsibility for these Funds switched to Dan Solender. Dan has eleven years of
investment experience, including seven at Nuveen. The investment objectives of
the Funds have not changed.)
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE SIX-MONTH
REPORTING PERIOD ENDED APRIL 30, 2004?
During this reporting period, the greatest influences on the national economy
and the municipal market continued to be historically low interest rates,
growing evidence of economic improvement, and a generally modest rate of
inflation. Since its last credit easing in June 2003, the Federal Reserve has
maintained the fed funds rate at 1.0%, the lowest level since 1958. This
accommodative monetary policy helped to spur GDP (gross domestic product) growth
of 4.4% annualized in the first quarter of 2004, following a 3.1% rise in 2003.
Over the six-month reporting period, the year-over-year rate of inflation, as
measured by the core Consumer Price Index, averaged 1.3%.
This generally favorable environment helped many municipal bonds perform well
during most of the six-month period ended April 30, 2004. However, in early
April, a sharply improved jobs report, along with subsequent indications of
growing momentum in the U.S. economy, served as catalysts for increased
expectations of a Fed rate hike. This all contributed to heightened volatility
in the fixed-income markets. During April, the yield on the Bond Buyer 20 index,
a widely followed measure of general obligation bonds, rose more than 50 basis
points. This rise in the index yield, and the corresponding decline in bond
prices, effectively offset the yield declines and price gains of the previous
five months. As of April 30, 2004, the Bond Buyer 20 index was at approximately
the same level as it was at the beginning of the six-month reporting period.
In general, municipal supply remained strong over the past six months, although
the pace of issuance slowed. The first four months of 2004 saw $110 billion in
new municipal supply, down 9% from January-April 2003. Over the entire six-month
reporting period ended April 2004, the supply of new bonds decreased 13%
compared with the preceding six months.
IN THIS ENVIRONMENT, WHAT KEY STRATEGIES WERE USED TO MANAGE THE FUNDS DURING
THE SIX MONTHS ENDED APRIL 30, 2004?
With the market continuing to anticipate an increase in interest rates, our
major focus during this reporting period remained on careful management of the
Funds' durations1 as a way to mitigate some of the interest rate risk inherent
in each Fund's portfolio. Interest rate risk is the risk that the value of a
Fund's portfolio will decline if market interest rates rise (since bond prices
move in the opposite direction of interest rates). The longer the duration of a
Fund's portfolio, the greater the
1 Duration is a measure of a Fund's net asset value (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.
2
Fund's interest rate risk. Our use of such a duration management strategy is
designed to help position the Funds to potentially produce more consistent
returns over time as interest rates inevitably rise and fall.
The one exception to this strategy was NEA, the newest of these six Funds. With
NEA, we made a deliberate decision to keep the duration longer than the other
Funds in order to enhance this Fund's initial income stream.
As mentioned earlier, the supply of new municipal bonds softened nationwide
during the six-month reporting period. This tighter supply had a modest impact
on our ability to enhance the diversification of the two newer Funds, NVG and
NEA, since it occasionally took longer to find securities that we believed had
the potential to add value and that carried the types of structures and features
we preferred. In addition, with yields remaining low over most of this period,
the market did not offer a great number of opportunities to improve the Funds'
income streams. In general, turnover in these Funds was comparatively low for
the six months ended April 30, 2004.
In keeping with our duration management strategy and the steepness of the
municipal bond yield curve over this reporting period, the bonds we did purchase
tended to be in the long-intermediate part of the yield curve (i.e., bonds that
mature in 16 to 20 years). In many cases, bonds in this part of the curve
offered yields similar to those of longer-term bonds with less inherent interest
rate risk and better total return potential. Overall, we looked for bonds that
would help us keep the Funds' portfolios diversified in terms of industry
sector, maturity and geographic region.
Another ongoing strategy focused on the gradual reduction of the Funds' exposure
to bonds subject to the alternative minimum tax (AMT). In accomplishing this, we
looked to use tax loss carryforwards whenever possible to offset gains realized
when we sold bonds that had appreciated in value.
HOW DID THE FUNDS PERFORM?
Individual results for the Funds, as well as for relevant benchmarks, are
presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE
For periods ended 4/30/04
(6-month returns cumulative, all others annualized)
6-MONTH 1-YEAR 5-YEAR 10-YEAR
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NQI 1.01% 1.77% 6.09% 6.88%
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NIO 0.66% 2.16% 6.11% 7.06%
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NIF 1.06% 1.84% 5.63% 6.74%
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NPX 0.83% 1.79% 5.95% 7.41%
---------------------------------------------------------------------
NVG 1.72% 2.42% NA NA
---------------------------------------------------------------------
NEA 1.92% 2.88% NA NA
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Lehman Brothers Insured
Municipal Bond Index2 1.06% 2.41% 5.64% 6.67%
---------------------------------------------------------------------
Lipper Insured
(Leveraged) Municipal
Debt Funds average3 1.01% 2.25% 5.49% 6.87%
---------------------------------------------------------------------
Past performance is not predictive of future results.
For additional information, see the individual Performance Overview for your
Fund in this report.
3
For the six months ended April 30, 2004, the cumulative returns of NVG and NEA
outperformed the returns of both the Lehman Brothers Insured Municipal Bond
Index and the Funds' Lipper peer group average. The returns of NQI and NIF were
in line with these measures, while the returns of NIO and NPX trailed both the
Lehman and Lipper returns.
In general, insured and higher-rated bonds did not perform as well as BBB rated
bonds during this six-month period, and this is reflected in the returns of all
these Funds, as well as the Lehman Index and Lipper peer group. Both NVG and NEA
performed the best during this period, in large part because they are allowed to
invest in uninsured, lower-rated investment-grade securities. NEA also benefited
from its holdings of uninsured healthcare bonds. Healthcare, which ranked second
in terms of returns among the Lehman municipal revenue sectors during this
period, continued to perform well due to improvements in cost containment and
reimbursement practices.
Looking at the fully insured Funds, NIO and NPX underperformed NQI and NIF for
several reasons. First, NIO and NPX had relatively more housing bond calls than
the other two Funds, and thus had more funds to invest at current low rates.
These Funds also had higher levels of pre-refunded bonds than NQI or NIF and
pre-refunded bonds tended to underperform relative to other bonds over this
period. Another factor that constrained the performances of NIO and NPX during
this period included their relatively large exposure to AMT bonds. In recent
months, these bonds did not perform as well as their non-AMT counterparts.
HOW ABOUT THE FUNDS' DIVIDENDS AND SHARE PRICES?
With short-term interest rates remaining at historically low levels during this
reporting period, the leveraged structures of these Funds continued to support
their dividend-paying capabilities. The extent of this benefit is tied in part
to the short-term rates the Funds pay their MuniPreferred(R) shareholders.
During periods of low short-term rates, the Funds generally pay relatively lower
dividends to their MuniPreferred shareholders, which can leave more earnings to
support common share dividends. During this reporting period, continued low
short-term rates enabled us to maintain the dividend levels of all six insured
Funds.
All of these Funds seek to pay stable dividends at rates that reflect each
Fund's past results and projected future performance. During certain periods,
each Fund may pay dividends at a rate that may be more or less than the amount
of net investment income actually earned by the Fund during the period. If a
Fund has cumulatively earned more than it has paid in dividends, it holds the
excess in reserve as undistributed net investment income (UNII) as part of the
Fund's net asset value (NAV). Conversely, if a Fund has
2 The Lehman Brothers Insured Municipal Bond Index is an unleveraged, unmanaged
national index comprising a broad range of insured municipal bonds. Results
for the Lehman index do not reflect any expenses.
3 The Lipper Insured (Leveraged) Municipal Debt Funds category average is
calculated using the returns of all closed-end exchange-traded funds in this
category for each period as follows: 6 months - 27 funds; 1 year - 26 funds; 5
years - 20 funds and 10 years - 18 funds. Fund and Lipper returns assume
reinvestment of dividends.
4
cumulatively paid dividends in excess of its earnings, the excess constitutes
negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over
time, pay all of its net investment income as dividends to shareholders. As of
April 30, 2004, all of the Funds in this report had positive UNII balances
except NEA, which had a negative UNII balance mainly because it is a newer Fund
that has not been around long enough to accumulate its income.
As of April 30, 2004, NIO was trading at a -4.04% discount to its NAV, compared
with an average premium of 34.7% for the six-month period. NIO was trading at a
-8.45% discount, compared with an average discount of -1.09%. NIF was at a
discount of -7.36%, compared with an average premium for the period of 0.12%.
NPX was at a -8.61% discount, compared to an average premium of 0.29%. NVG was
at a discount at -9.44%, compared to an average discount of -4.17%. NEA was
trading at a discount of -5.92%, compared with an average premium of 0.45% for
the reporting period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
APRIL 30, 2004?
Given the current geopolitical and economic climate, we continued to believe
that maintaining strong overall credit quality was an important requirement.
NQI, NIO, NIF and NPX continued to be 100% invested in insured and/or U.S.
guaranteed securities. As noted, NVG and NEA are allowed to invest up to 20% of
their assets in uninsured investment-grade quality securities. As of April 30,
2004, NVG had 91% of its portfolio in insured bonds, while NEA had 88%.
As of April 30, 2004, potential call exposure for these Funds during 2004-2005
ranged from zero in NVG and 1% in NEA to 7% in NIF, 11% in NPX, 14% in NIO, and
20% in NQI. The number of actual bond calls in all of these Funds will depend
largely on market rates and the needs of the securities' issuers.
We continue to manage these insured Funds as long-term investments focused on
providing dependable tax-free income and preserving net asset value through the
prudent management of credit and interest rate risk.
5
Nuveen Insured Quality Municipal Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NQI
Pie Chart:
CREDIT QUALITY
Insured 87%
Insured and U.S. Guaranteed 12%
U.S. Guaranteed 1%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.71
--------------------------------------------------
Common Share Net Asset Value $15.33
--------------------------------------------------
Premium/(Discount) to NAV -4.04%
--------------------------------------------------
Market Yield 6.89%
--------------------------------------------------
Taxable-Equivalent Yield1 9.57%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $585,089
--------------------------------------------------
Average Effective Maturity (Years) 20.45
--------------------------------------------------
Leverage-Adjusted Duration 9.15
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/90)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -7.14% 1.01%
--------------------------------------------------
1-Year -6.05% 1.77%
--------------------------------------------------
5-Year 5.00% 6.09%
--------------------------------------------------
10-Year 6.99% 6.88%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 21%
--------------------------------------------------
Healthcare 16%
--------------------------------------------------
Tax Obligation/General 13%
--------------------------------------------------
Utilities 13%
--------------------------------------------------
U.S. Guaranteed 13%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0845
Jun 0.0845
Jul 0.0845
Aug 0.0845
Sep 0.0845
Oct 0.0845
Nov 0.0845
Dec 0.0845
Jan 0.0845
Feb 0.0845
Mar 0.0845
Apr 0.0845
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 16.75
16.85
16.83
16.94
16.97
16.61
17
17.1
16.81
16.04
15.72
15.73
15.51
15.6
15.63
15.86
15.73
15.88
15.97
15.95
16.16
16.18
16.39
16.33
16.55
16.66
16.55
16.6
16.53
16.67
16.87
16.92
16.93
16.84
16.8
16.8
16.7
16.7
16.93
16.9
16.99
16.89
16.75
15.98
15.3
14.87
4/30/04 14.71
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0464 per share.
6
Nuveen Insured Municipal Opportunity Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NIO
Pie Chart:
CREDIT QUALITY
Insured 81%
Insured and U.S. Guaranteed 17%
U.S. Guaranteed 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.18
--------------------------------------------------
Common Share Net Asset Value $15.49
--------------------------------------------------
Premium/(Discount) to NAV -8.46%
--------------------------------------------------
Market Yield 6.85%
--------------------------------------------------
Taxable-Equivalent Yield1 9.51%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,256,856
--------------------------------------------------
Average Effective Maturity (Years) 19.25
--------------------------------------------------
Leverage-Adjusted Duration 8.71
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 9/19/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -6.34% 0.66%
--------------------------------------------------
1-Year -6.29% 2.16%
--------------------------------------------------
5-Year 3.83% 6.11%
--------------------------------------------------
10-Year 6.79% 7.06%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Transportation 20%
--------------------------------------------------
U.S. Guaranteed 19%
--------------------------------------------------
Utilities 14%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Healthcare 10%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.081
Jun 0.081
Jul 0.081
Aug 0.081
Sep 0.081
Oct 0.081
Nov 0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.081
Apr 0.081
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 16.17
16.12
16.38
16.52
16.59
16.04
16.26
16.21
16.17
15.42
15.24
15.36
15.05
15.13
15.16
15.32
15.3
15.36
15.61
15.42
15.45
15.67
15.64
15.85
15.8
15.89
15.92
15.99
15.85
15.98
16.2
16.32
16.31
16.22
16.3
16.24
16.33
16.38
16.53
16.49
16.56
16.42
16.13
15.52
14.9
14.53
4/30/04 14.18
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0291 per share.
7
Nuveen Premier Insured Municipal Income Fund, Inc.
Performance
OVERVIEW As of April 30, 2004
NIF
Pie Chart:
CREDIT QUALITY
Insured 81%
Insured and U.S. Guaranteed 4%
U.S. Guaranteed 15%
FUND SNAPSHOT
--------------------------------------------------
Share Price $14.23
--------------------------------------------------
Common Share Net Asset Value $15.36
--------------------------------------------------
Premium/(Discount) to NAV -7.36%
--------------------------------------------------
Market Yield 6.87%
--------------------------------------------------
Taxable-Equivalent Yield1 9.54%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $298,244
--------------------------------------------------
Average Effective Maturity (Years) 17.12
--------------------------------------------------
Leverage-Adjusted Duration 9.89
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 12/19/91)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -5.29% 1.06%
--------------------------------------------------
1-Year -6.70% 1.84%
--------------------------------------------------
5-Year 4.01% 5.63%
--------------------------------------------------
10-Year 6.55% 6.74%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
U.S. Guaranteed 19%
--------------------------------------------------
Tax Obligation/General 17%
--------------------------------------------------
Transportation 17%
--------------------------------------------------
Healthcare 15%
--------------------------------------------------
Tax Obligation/Limited 13%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0815
Jun 0.0815
Jul 0.0815
Aug 0.0815
Sep 0.0815
Oct 0.0815
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0815
Apr 0.0815
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 16.31
16.34
16.62
16.95
16.96
16.47
16.67
16.7
16.51
16.01
14.99
15.24
14.93
15.16
15.16
15.24
15.35
15.37
15.37
15.35
15.26
15.53
15.51
15.78
15.8
15.82
15.88
16.15
16
16.21
16.35
16.53
16.56
16.33
16.38
16.32
16.33
16.55
16.65
16.52
16.57
16.56
16.18
15.66
14.98
14.6
4/30/04 14.23
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2003 of $0.0193 per share.
8
Nuveen Insured Premium Income Municipal Fund 2
Performance
OVERVIEW As of April 30, 2004
NPX
Pie Chart:
CREDIT QUALITY
Insured 90%
Insured and U.S. Guaranteed 10%
FUND SNAPSHOT
--------------------------------------------------
Share Price $12.73
--------------------------------------------------
Common Share Net Asset Value $13.93
--------------------------------------------------
Premium/(Discount) to NAV -8.61%
--------------------------------------------------
Market Yield 6.88%
--------------------------------------------------
Taxable-Equivalent Yield1 9.56%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $520,455
--------------------------------------------------
Average Effective Maturity (Years) 18.24
--------------------------------------------------
Leverage-Adjusted Duration 8.71
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 7/22/93)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -7.07% 0.83%
--------------------------------------------------
1-Year -7.30% 1.79%
--------------------------------------------------
5-Year 5.56% 5.95%
--------------------------------------------------
10-Year 7.70% 7.41%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Utilities 18%
--------------------------------------------------
Tax Obligation/Limited 16%
--------------------------------------------------
Transportation 12%
--------------------------------------------------
Tax Obligation/General 11%
--------------------------------------------------
Healthcare 11%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE
May 0.072
Jun 0.072
Jul 0.072
Aug 0.072
Sep 0.073
Oct 0.073
Nov 0.073
Dec 0.073
Jan 0.073
Feb 0.073
Mar 0.073
Apr 0.073
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 14.64
14.72
14.7
14.9
15.15
14.74
14.93
14.98
14.99
14.2
13.99
13.85
13.69
13.75
13.89
13.8
13.9
13.89
13.96
14.12
13.96
14
14.12
14.18
14.24
14.36
14.62
14.83
14.63
14.63
14.94
14.95
14.96
14.94
14.78
14.88
14.91
14.99
15.04
14.98
15.06
14.88
14.65
13.9
13.4
12.85
4/30/04 12.73
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
9
Nuveen Insured Dividend Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2004
NVG
Pie Chart:
CREDIT QUALITY
Insured 87%
Insured and U.S. Guaranteed 4%
AAA (Uninsured) 3%
AA (Uninsured) 4%
A (Uninsured) 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.72
--------------------------------------------------
Common Share Net Asset Value $15.15
--------------------------------------------------
Premium/(Discount) to NAV -9.44%
--------------------------------------------------
Market Yield 6.78%
--------------------------------------------------
Taxable-Equivalent Yield1 9.42%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $451,533
--------------------------------------------------
Average Effective Maturity (Years) 19.78
--------------------------------------------------
Leverage-Adjusted Duration 9.90
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -4.02% 1.72%
--------------------------------------------------
1-Year -2.76% 2.42%
--------------------------------------------------
Since Inception 2.22% 9.30%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/General 25%
--------------------------------------------------
Transportation 18%
--------------------------------------------------
Tax Obligation/Limited 17%
--------------------------------------------------
Water and Sewer 12%
--------------------------------------------------
Education and Civic Organization 9%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0775
Jun 0.0775
Jul 0.0775
Aug 0.0775
Sep 0.0775
Oct 0.0775
Nov 0.0775
Dec 0.0775
Jan 0.0775
Feb 0.0775
Mar 0.0775
Apr 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 15.2
15.35
15.62
15.88
15.95
15.41
15.4
15.73
15.67
15.19
14.1
14.49
14.31
14.26
14.44
14.59
14.55
14.48
14.56
14.89
14.67
14.81
14.81
14.88
14.85
14.82
14.98
14.98
15.05
15.2
15.41
15.38
15.47
15.4
15.49
15.4
15.39
15.64
15.7
15.6
15.63
15.61
15.27
14.7
14.25
13.93
4/30/04 13.72
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2003 of $0.0713 per share.
10
Nuveen Insured Tax-Free Advantage Municipal Fund
Performance
OVERVIEW As of April 30, 2004
NEA
Pie Chart:
CREDIT QUALITY
Insured 86%
Insured and U.S. Guaranteed 2%
AAA (Uninsured) 3%
AA (Uninsured) 2%
A (Uninsured) 5%
BBB (Uninsured) 2%
FUND SNAPSHOT
--------------------------------------------------
Share Price $13.51
--------------------------------------------------
Common Share Net Asset Value $14.36
--------------------------------------------------
Premium/(Discount) to NAV -5.92%
--------------------------------------------------
Market Yield 6.88%
--------------------------------------------------
Taxable-Equivalent Yield1 9.56%
--------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $265,882
--------------------------------------------------
Average Effective Maturity (Years) 23.32
--------------------------------------------------
Leverage-Adjusted Duration 13.04
--------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02)
--------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------
6-Month (Cumulative) -5.75% 1.92%
--------------------------------------------------
1-Year -4.42% 2.88%
--------------------------------------------------
Since Inception -1.47% 6.19%
--------------------------------------------------
TOP FIVE SECTORS (as a % of total investments)
--------------------------------------------------
Tax Obligation/Limited 30%
--------------------------------------------------
Tax Obligation/General 27%
--------------------------------------------------
Healthcare 14%
--------------------------------------------------
Utilities 11%
--------------------------------------------------
Transportation 7%
--------------------------------------------------
Bar Chart:
2003-2004 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
May 0.0775
Jun 0.0775
Jul 0.0775
Aug 0.0775
Sep 0.0775
Oct 0.0775
Nov 0.0775
Dec 0.0775
Jan 0.0775
Feb 0.0775
Mar 0.0775
Apr 0.0775
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
5/1/03 15.05
15.18
15.57
15.63
15.56
15.36
15.45
15.33
15.52
15.1
14.24
14.74
14.07
14.09
14.07
14.08
14.13
14.06
14.41
14.56
14.42
14.67
14.79
14.96
14.68
14.71
14.89
14.92
14.98
15.22
15.21
15.38
15.4
15.22
15.52
15.4
15.4
15.77
15.78
15.41
15.52
15.63
15.12
15.05
14.21
13.64
4/30/04 13.51
1 Taxable equivalent yield represents the yield that must be earned on a fully
taxable investment, in order to equal the yield of the Fund on an after-tax
basis. It is based on a federal income tax rate of 28%. For investments that
generate qualified dividend income, the taxable equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December 2003
of $0.0053 per share.
11
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.2%
$ 1,135 Birmingham, Alabama, Waterworks and Sewer Board, Water 1/13 at 100.00 AAA $ 1,192,567
and Sewer Revenue Bonds, Series 2002B, 5.250%, 1/01/20 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6%
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior 7/12 at 100.00 AAA 9,250,876
Lien Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8%
4,640 Arkansas Development Finance Authority, FNMA/GNMA 7/05 at 102.00 AAA 4,782,448
Mortgage-Backed Securities Program Single Family Mortgage
Bonds, Series 1995B, 6.700%, 7/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.6%
8,135 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 9,022,203
Alameda County Public Facilities Corporation, Series 1991,
6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured
13,175 California Pollution Control Financing Authority, Pollution 9/09 at 101.00 AAA 13,560,501
Control Revenue Refunding Bonds, Southern California
Edison Company, Series 1999A, 5.450%, 9/01/29 -
MBIA Insured
9,000 California, General Obligation Bonds, Series 2002, 10/12 at 100.00 AAA 8,865,360
5.000%, 10/01/32 - MBIA Insured
20,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 20,347,070
5.000%, 4/01/27 - AMBAC Insured
3,750 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 3,703,388
5.000%, 4/01/31 - AMBAC Insured
5,500 California Statewide Communities Development Authority, 7/04 at 102.00 AAA 5,650,095
San Diego, California, Certificates of Participation, The
Salk Institute for Biological Studies, 6.200%, 7/01/24 -
CONNIE LEE/AMBAC 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 7,314,976
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 4,528,480
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 7,108,000
5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,033,050
Financing 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 5,532,100
Revenue Bonds, Landfill Improvement Financing Project,
Series 1996B, 6.000%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/01/06) - FSA Insured
5,498 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 6,206,912
Collateralized Assisted Living Housing Revenue Bonds,
CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42
6,250 Ontario Redevelopment Financing Authority, San Bernardino 8/04 at 101.00 AAA 6,399,688
County, California, Revenue Bonds, Redevelopment Project 1,
Series 1993, 5.850%, 8/01/22 - MBIA Insured
3,615 Pasadena Unified School District, Los Angeles County, 5/13 at 100.00 AAA 3,660,766
California, General Obligation Bonds, Series 2003D,
5.000%, 5/01/24 - MBIA Insured
San Francisco Airports Commission, California, Revenue Refunding
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A:
7,200 5.125%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 7,283,952
12,690 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 12,745,328
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.5%
5,630 Arapahoe County Capital Improvement Trust Fund, Colorado, 8/05 at 103.00 AAA 6,140,697
Vehicle Registration Fee Revenue Bonds, Highway E-470
Project, Series 1986A, 6.150%, 8/31/26 (Pre-refunded to
8/31/05) - MBIA Insured
3,750 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 3,866,850
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
4,130 Grand Junction, Colorado, General Fund Revenue Bonds, 3/14 at 100.00 AAA 4,371,564
Series 2004, 5.000%, 3/01/16 - AMBAC Insured
12
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4%
$ 8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA $ 8,166,880
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.8%
3,450 Florida Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 AAA 3,524,382
Revenue Bonds, Series 1994B, 6.650%, 7/01/26 (Alternative
Minimum Tax)
3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,339,310
Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
2,180 Florida Municipal Loan Council, Revenue Bonds, No Opt. Call AAA 2,386,381
Series 2003A, 5.250%, 5/01/13 - MBIA Insured
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 20,854,000
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 4,261,083
Multifamily Housing Revenue Bonds, Monterey Pointe
Apartments Project, Series 2001-2A, 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 7,139,230
Miami International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
3,780 The School Board of Palm Beach County, Florida, Certificates 8/13 at 100.00 AAA 3,999,240
of Participation, Series 2003A, 5.000%, 8/01/16 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 6.3%
1,620 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 1,662,574
Series 2003A, 5.000%, 7/15/21 - FSA Insured
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
8,785 6.625%, 7/01/18 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,014,549
7,000 6.000%, 7/01/19 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 7,636,160
16,180 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 17,344,636
Revenue Bonds, Hawaii Electric Company, Inc. and
Subsidiaries Project, Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 18.7%
10,000 Chicago, Illinois, General Obligation Bonds, Series 1995, 7/05 at 102.00 AAA 10,743,300
6.125%, 1/01/16 (Pre-refunded to 7/01/05) - AMBAC Insured
6,000 Chicago, Illinois, General Airport Second Lien Revenue 1/05 at 102.00 AAA 6,295,200
Refunding Bonds, O'Hare International Airport, Series 1994A,
6.375%, 1/01/12 - MBIA Insured
9,500 Chicago, Illinois, General Airport Second Lien Revenue 1/10 at 101.00 AAA 10,059,075
Refunding Bonds, O'Hare International Airport, Series 1999,
5.500%, 1/01/15 (Alternative Minimum Tax) - AMBAC Insured
7,165 Illinois Development Finance Authority, Revenue Bonds, 8/09 at 101.00 AAA 8,082,263
Bradley University Project, Series 1999, 5.500%, 8/01/29
(Pre-refunded to 8/01/09) - AMBAC Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 AAA 26,630,750
Health System, Series 2000, 5.875%, 2/15/30 -
AMBAC Insured
15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,123,588
Series 2002, 5.250%, 4/01/27 - FSA Insured
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,535,721
Series 2001, 5.250%, 5/01/26 - FSA Insured
1,325 Kane County, Illinois, Motor Fuel and Tax Alternative Revenue No Opt. Call AAA 1,415,511
Source Bonds, Series 2004, 5.000%, 1/01/14 - FGIC Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, No Opt. Call AAA 5,862,060
McCormick Place Expansion Project 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 11,113,700
Infrastructure Projects, Series 2001B, 5.250%, 8/15/21
(Pre-refunded to 8/15/11) - AMBAC Insured
13
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 0.7%
Hammond Multi-School Building Corporation, Lake County, Indiana,
First Mortgage Revenue Bonds, Series 2003B:
$ 2,550 5.000%, 7/15/17 - FGIC Insured 7/13 at 100.00 AAA $ 2,653,861
1,610 5.000%, 7/15/19 - FGIC Insured 7/13 at 100.00 AAA 1,655,966
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5%
3,000 Wichita, Kansas, Water and Sewer Utility Revenue Bonds, 10/13 at 100.00 AAA 3,087,300
Series 2003, 5.000%, 10/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 4.1%
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 6,250,904
18,185 0.000%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 17,885,493
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.2%
13,170 New Orleans, Louisiana, General Obligation Refunding Bonds, 10/05 at 101.00 AAA 14,063,585
Series 1995, 6.200%, 10/01/21 - AMBAC Insured
4,285 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 4,667,308
Obligation Bonds, Series 1986, 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 8,628,640
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4%
7,535 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA 7,993,429
International Airport Parking Revenue Bonds, Series 2002B,
5.500%, 3/01/18 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.9%
5,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 5,018,300
Tax Revenue Refunding Bonds, Series 2002A,
5.000%, 7/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.8%
4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,890,790
Revenue Refunding Pollution Control Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.0%
127 St. Louis Park, Minnesota, GNMA Mortgage-Backed 10/04 at 100.00 Aaa 127,069
Securities Program, Single Family Residential Mortgage
Revenue Bonds, Series 1991A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.8%
2,545 Harrison County Wastewater District, Mississippi, Wastewater No Opt. Call AAA 3,379,938
Revenue Refunding Bonds, Series 1991A, 8.500%, 2/01/13 -
FGIC Insured
2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,488,341
Mississippi, Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991B, 7.750%, 2/01/14 -
FGIC Insured
3,510 Mississippi Home Corporation, Single Family Mortgage 6/06 at 105.00 Aaa 3,755,419
Revenue 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, 2/06 at 102.00 AAA 5,462,950
Leasehold Revenue Bonds, City Justice Center,
Series 1996A, 6.000%, 2/15/19 (Pre-refunded
to 2/15/06) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 9.2%
33,700 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 34,397,927
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier Series 2000, 5.375%, 1/01/40 - AMBAC Insured
5,720 Reno, Nevada, Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA 5,749,458
Reno Transportation Rail Access Corridor Project,
Senior Lien Series 2002, 5.125%, 6/01/32 - AMBAC Insured
14
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 13,185 Washoe County, Nevada, Hospital Revenue Bonds, Washoe 6/04 at 102.00 AAA $ 13,488,255
Medical Center, Inc. Project, Refunding Series 1994A,
6.000%, 6/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.4%
3,750 New Jersey Health Care Facilities Financing Authority, 7/04 at 102.00 AAA 3,856,875
Revenue Bonds, Monmouth Medical Center Issue,
Series C, 6.250%, 7/01/24 (Pre-refunded to 7/01/04) -
FSA Insured
10,000 New Jersey Turnpike Authority, Turnpike Revenue Bonds, 7/13 at 100.00 AAA 10,061,500
Series 2003A, 5.000%, 1/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 2.0%
6,000 Farmington, New Mexico, Pollution Control Revenue 10/04 at 100.00 BBB 6,150,000
Refunding Bonds, Southern California Edison Company -
Four Corners Project, Series 1991A, 7.200%, 4/01/21
5,750 Santa Fe, New Mexico, Utility Revenue Bonds, Series 1994A, 6/04 at 100.00 AAA 5,775,473
6.300%, 6/01/24 (Pre-refunded to 6/01/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 17.0%
8,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 8,076,960
Service Contract Refunding Bonds, Series 2002A,
5.000%, 7/01/25 - FGIC Insured
6,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 6,485,115
Tax Fund Bonds, Series 2002A, 5.000%, 11/15/32 -
FSA Insured
New York City, New York, General Obligation Bonds, Fiscal
Series 1991A:
2,000 8.000%, 3/15/11 - FSA Insured 9/04 at 100.00 AAA 2,375,240
6,000 7.250%, 3/15/19 - FSA Insured 9/04 at 100.00 AAA 6,687,300
10,335 New York City Municipal Water Finance Authority, 6/05 at 101.00 AAA 10,967,915
New York, Water and Sewer System Revenue Bonds,
Fiscal Series 1996A, 6.000%, 6/15/25 (Pre-refunded
to 6/15/05) - MBIA Insured
11,760 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AAA 12,637,178
Court Facilities Lease Revenue Bonds, Series 1999,
5.750%, 5/15/30 - AMBAC Insured
7,000 New York State Energy Research and Development 7/05 at 102.00 A1 7,397,460
Authority, Facilities Revenue Refunding Bonds, Consolidated
Edison Company, Inc. Project, Series 1995A, 6.100%, 8/15/20
10,875 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 11,397,870
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
4,200 New York Mortgage Agency, Homeowner Mortgage Revenue 10/09 at 100.00 AAA 4,371,738
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 12,764,280
FHA-Insured Mortgage Revenue Bonds, New York and
Presbyterian Hospital, 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, Revenue 10/12 at 100.00 AAA 16,347,000
Bonds, School Districts Financing Program, Series 2002D,
5.500%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.3%
1,720 Union County, North Carolina, Certificates of Participation, 6/13 at 101.00 AAA 1,819,399
Series 2003, 5.000%, 6/01/16 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.6%
20,000 Mercer County, North Dakota, Pollution Control Revenue 1/05 at 102.00 AAA 20,943,800
Refunding Bonds, Basin Electric Power Cooperative -
Antelope Valley Unit 1 and Common Facilities, Second
Series 1995, 6.050%, 1/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.9%
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, 9/09 at 102.00 AAA 5,130,300
Catholic Healthcare Partners, Series 1999A,
5.500%, 9/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6%
7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,233,940
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
7,250 Lehigh County Industrial Development Authority, 8/05 at 102.00 AAA 7,737,273
Pennsylvania, Pollution Control Revenue Refunding Bonds,
Pennsylvania Power and Light Company Project,
Series 1995A, 6.150%, 8/01/29 - MBIA Insured
15
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.0%
$ 5,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA $ 5,652,300
Revenue Bonds, Series 2003AA, 5.500%, 7/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 0.9%
5,050 Rhode Island Port Authority and Economic Development 7/04 at 102.00 AAA 5,193,167
Corporation, Airport Revenue Bonds, Series 1994A,
6.625%, 7/01/24 (Alternative Minimum Tax) (Pre-refunded
to 7/01/04) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.8%
Knox County Health, Educational, and Housing Facility Board,
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A:
7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 2,367,075
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,470,350
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 756,443
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 20.6%
8,000 Abilene Health Facilities Development Corporation, Texas, 9/05 at 102.00 AAA 8,519,600
Hospital Revenue Refunding and Improvement Bonds,
Hendrick Medical Center Project, Series 1995C,
6.150%, 9/01/25 - MBIA Insured
5,275 Austin, Texas, Combined Utility System Revenue Refunding 11/07 at 100.00 AAA 5,491,011
Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured
3,000 Dallas-Fort Worth International Airport, Texas, Joint 11/11 at 100.00 AAA 3,243,090
Revenue Refunding and Improvement Bonds, Series 2001A,
5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured
3,735 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 3,759,128
Texas, General Obligation Bonds, Series 2003,
5.125%, 2/15/31 - FSA Insured
Harris County Hospital District, Texas, Revenue Refunding
Bonds, Series 1990:
1,725 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 1,922,978
2,580 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 2,963,723
4,500 Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 4,572,585
Bonds, Series 2001A, 5.000%, 3/01/22 - FSA Insured
4,685 Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,921,499
Bonds, Series 2000A, 5.500%, 7/01/19 (Alternative
Minimum Tax) - FSA Insured
17,000 Houston, Texas, Water and Sewer System Junior Lien No Opt. Call AAA 18,972,340
Revenue Refunding Bonds, Series 2002A,
5.750%, 12/01/32 - FSA Insured
19,200 Health Facilities Development Corporation, Jefferson 8/11 at 100.00 AAA 19,624,128
County, Texas, FHA-Insured Mortgage Revenue Bonds,
Baptist Hospital of Southeast Texas, Series 2001,
5.400%, 8/15/31 - AMBAC Insured
6,000 Laredo Community College District, Texas, Limited Tax 8/10 at 100.00 AAA 6,140,400
General Obligation Bonds, Series 2001, 5.375%, 8/01/31 -
AMBAC Insured
22,045 North Central Texas Health Facilities Development 8/12 at 101.00 AAA 22,404,554
Corporation, 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, GNMA 3/12 at 105.00 Aaa 18,292,956
Collateralized Mortgage Loan, Multifamily Housing Revenue
Bonds, Bardin Green Apartments Project, Series 2001,
6.600%, 9/20/42
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.9%
4,655 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, 5/04 at 100.00 AAA 5,070,133
IHC Hospitals, Inc., Series 1988A, 8.000%, 5/15/07
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.2%
10,730 Chelan County Public Utility District 1, Washington, 7/11 at 101.00 AAA 11,185,703
Hydro Consolidated System Revenue Refunding Bonds,
Series 2001C, 5.650%, 7/01/32 (Alternative Minimum Tax) -
MBIA Insured
4,685 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AAA 4,961,649
Mortgage Loan Low Income Housing Assistance Revenue
Bonds, RHF/Esperanza Apartments Project, Series 2000A,
6.125%, 3/20/42 (Alternative Minimum Tax)
15,025 Seattle Housing Authority, Washington, GNMA Collateralized 11/11 at 105.00 AAA 17,070,053
Mortgage Loan, Low Income Housing Assistance Revenue
Bonds, Park Place Project, Series 2000A, 7.000%, 5/20/42
5,000 Seattle, Washington, Municipal Light and Power Revenue 12/10 at 100.00 AAA 5,228,300
Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured
16
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 1,600 Vancouver, Washington, Water and Sewer Revenue Bonds, No Opt. Call AAA $ 1,747,232
Series 2004, 5.250%, 6/01/14 - FGIC Insured
10,000 Washington, General Obligation Refunding Bonds, 1/12 at 100.00 AAA 10,278,200
Series R-2003A, 5.000%, 1/01/19 - MBIA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 2,620,050
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
11,750 Washington State Public Power Supply System, Nuclear 7/08 at 102.00 AAA 12,248,316
Project 1 Revenue Refunding 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 13,292,390
Revenue Bonds, West Virginia Infrastructure and Jobs
Development Council Program, Series 2000A, 5.500%, 10/01/39 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 950,529 Total Long-Term Investments (cost $847,650,896) - 152.4% 891,587,366
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 11,501,594
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.4)% (318,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 585,088,960
====================================================================================================================
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.
17
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 15.9%
$ 3,840 Alabama Housing Finance Authority, Multifamily Housing 7/05 at 103.00 Aaa $ 4,007,347
Revenue Refunding Bonds, GNMA Collateralized Royal
Hills Apartment Project, Series 1995F, 6.500%, 7/20/30
11,000 The Special Care Facilities Financing Authority of the City of 5/05 at 102.00 AAA 11,555,940
Birmingham, Alabama, Baptist Medical Centers, Revenue
Bonds, Baptist Health System, Inc., Series 1995-B,
5.875%, 11/15/20 - MBIA Insured
The Special Care Facilities Financing Authority of the City of
Birmingham, Alabama, Baptist Medical Centers Revenue Bonds,
Baptist Health System, Inc., Series 1996A:
7,465 5.875%, 11/15/19 - MBIA Insured 11/06 at 102.00 AAA 8,129,758
1,750 5.875%, 11/15/26 - MBIA Insured 11/06 at 102.00 AAA 1,863,190
11,175 City Board of Education of the City of Hoover, Alabama, 2/11 at 100.00 AAA 11,634,851
Capital Outlay Tax Anticipation Warrants, Series 2001,
5.250%, 2/15/22 - MBIA Insured
Jefferson County, Alabama, Sewer Revenue Refunding
Warrants, Series 1997A:
25,825 5.375%, 2/01/27 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 100.00 AAA 27,921,990
10,195 5.375%, 2/01/27 - FGIC Insured 2/07 at 100.00 AAA 10,476,994
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 1999A:
10,815 5.000%, 2/01/33 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 11,838,640
9,790 5.000%, 2/01/33 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,757,742
12,000 5.375%, 2/01/36 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 13,384,440
29,860 5.750%, 2/01/38 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 33,797,937
18,760 Jefferson County, Alabama, Sewer Revenue Capitol 2/11 at 101.00 AAA 20,513,310
Improvement Warrants, Series 2001A, 5.000%, 2/01/41
(Pre-refunded to 2/01/11) - FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 2002B:
2,500 5.125%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 2,728,200
2,500 5.125%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 2,744,900
Jefferson County, Alabama, Sewer Revenue Capital
Improvement Warrants, Series 2002D:
425 5.000%, 2/01/38 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 460,063
1,940 5.000%, 2/01/38 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 2,112,951
14,800 5.000%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 16,119,420
5,240 Jefferson County, Alabama, Sewer Revenue Refunding 2/11 at 101.00 AAA 5,759,546
Warrants, Series 2003B, 5.000%, 2/01/41 (Pre-refunded to
2/01/11) - FGIC Insured
4,250 Shelby County Board of Education, Alabama, General 2/05 at 102.00 AAA 4,453,405
Obligation Refunding Warrants, Series 1995,
5.875%, 2/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.6%
11,245 Alaska Housing Finance Corporation, General Mortgage 6/09 at 100.00 AAA 11,647,009
Revenue Bonds, Series 1999A, 6.050%, 6/01/39 -
MBIA Insured
11,460 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA 11,876,227
Bonds, Series 1995A, 5.875%, 12/01/30 - MBIA Insured
2,680 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 2,786,342
Mortgage Program Bonds, First Series 1999A-2,
6.250%, 6/01/39 (Alternative Minimum Tax)
3,190 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 3,342,195
Mortgage Program Bonds, Series 1999A-1, 6.150%, 6/01/39
3,000 Alaska Student Loan Corporation, Student Loan Revenue 7/08 at 100.00 AAA 3,112,170
Bonds, Series 1998A, 5.250%, 7/01/14 (Alternative
Minimum Tax) - AMBAC Insured
18
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 0.7%
$ 6,770 Pima County Industrial Development Authority, Arizona, 7/04 at 102.00 AAA $ 7,119,332
Lease Obligation Revenue Refunding Bonds, Tucson
Electric Power Company Irvington Project, Series 1988A,
7.250%, 7/15/10 - FSA Insured
2,000 The Industrial Development Authority of the City of Yuma, 8/11 at 101.00 AAA 2,132,900
Arizona, Hospital Revenue Bonds, Series 2001, Yuma
Regional Medical Center, 5.500%, 8/01/20 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 31.6%
6,135 California Housing Finance Agency, Housing Revenue 8/04 at 102.00 AAA 6,273,406
Bonds, Series 1994C, 6.250%, 8/01/25 - MBIA Insured
California Rural Home Mortgage Finance Authority, Single Family
Mortgage Revenue Bonds, Mortgage-Backed Securities Program,
Series 1996A:
215 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 220,678
170 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 174,605
4,500 California, General Obligation Bonds, Series 1998, 10/08 at 101.00 AAA 4,591,800
5.000%, 10/01/19 - FGIC Insured
10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 10,397,900
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
7,135 California Housing Finance Agency, Home Mortgage Revenue 11/10 at 55.40 AAA 2,774,088
Bonds, Series 2000Y, 0.000%, 8/01/20 (Alternative
Minimum Tax) - FSA Insured
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 32,282,100
35,000 5.375%, 5/01/18 - AMBAC Insured 5/12 at 101.00 AAA 37,500,750
3,100 Campbell Union School District, Santa Clara County, 8/04 at 102.00 AAA 3,201,587
California, General Obligation Bonds, Series 1994A,
6.250%, 8/01/19 (Pre-refunded to 8/01/04) - MBIA Insured
8,200 Castaic Lake Water Agency, California, Revenue Refunding 8/04 at 102.00 AAA 8,455,102
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 20,061,800
of Participation, Water Shares Purchase, Series 2000,
5.125%, 9/01/35 - FGIC Insured
5,500 Fallbrook Union High School District, San Diego County, 9/04 at 102.00 AAA 5,703,280
California, General Obligation Bonds, Series 1994A,
6.250%, 9/01/19 (Pre-refunded to 9/01/04) - MBIA Insured
5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 5,104,800
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
20,000 Los Angeles Unified School District, Los Angeles County, 7/13 at 100.00 AAA 20,569,200
California, General Obligation Bonds, Series 2003A,
5.000%, 7/01/21 - FSA Insured
9,000 Orange County, California, Refunding Recovery Bonds, 6/05 at 102.00 AAA 9,524,610
Series 1995A, 5.750%, 6/01/15 - MBIA Insured
12,500 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 13,553,000
Participation, Series 1996A, 6.000%, 7/01/26 - MBIA Insured
13,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 AAA 13,236,692
5.000%, 11/01/22 (Alternative Minimum Tax) - FGIC Insured
Poway Redevelopment Agency, California, Tax Allocation Bonds,
Paguay Redevelopment Project, Series 2001:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 AAA 15,231,300
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,023,900
6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,032,460
California, General Obligation Bonds, Series 2003,
5.000%, 7/01/26 - FSA Insured
11,000 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 10,973,930
Revenue Bonds, Series 2003R, 5.000%, 8/15/33 -
MBIA Insured
19,300 Sacramento Power Authority, California, Revenue Bonds, 7/06 at 102.00 AAA 21,088,338
Power Authority Cogeneration Project, Series 1995,
5.875%, 7/01/15 - MBIA Insured
6,500 Salinas, California, GNMA Collateralized Housing Facility 7/04 at 102.00 AAA 6,648,200
Revenue Refunding Bonds, Villa Serra Project,
Series 1994A, 6.600%, 7/20/30
10,000 San Francisco City and County Airports Commission, 5/06 at 101.00 AAA 10,081,800
California, Revenue Bonds, San Francisco International
Airport, Series 2, Issue 13B, 5.500%, 5/01/26 (Alternative
Minimum Tax) - MBIA Insured
19
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 18,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA $ 18,846,209
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.250%, 5/01/26 (Alternative
Minimum Tax) - MBIA Insured
11,500 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AAA 11,556,005
Sales 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 28,826,592
County, California, Senior Lien Toll Road Revenue Bonds,
0.000%, 1/01/21
San Joaquin Hills Transportation Corridor Agency, Orange County,
California, Toll Road Refunding Revenue Bonds, Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 1/07 at 102.00 AAA 31,951,067
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 4,596,485
12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 12,891,607
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/20 - MBIA Insured
11,000 Santa Ana Financing Authority, California, Police No Opt. Call AAA 12,905,310
Administration 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 5,774,670
Revenue Bonds, VMC Facility Replacement Project,
Series 1994A, 6.750%, 11/15/20 (Pre-refunded to
11/15/04) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 6.4%
10,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 10,679,400
Refunding Bonds, Series 2001A, 5.500%, 11/15/15
(Alternative Minimum Tax) - FGIC Insured
10,545 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 10,873,582
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
6,200 Denver Convention Center Hotel Authority, Colorado, 12/13 at 100.00 AAA 6,157,096
Convention Center Hotel Senior Revenue Bonds,
Series 2003A, 5.000%, 12/01/33 - XLCA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 12,611,928
Bonds, Series 1997B, 0.000%, 9/01/23 - MBIA Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 33,088,440
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 6,492,950
Bonds, Series 2000B, 0.000%, 9/01/15 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.2%
2,500 Connecticut Health and Educational Facilities Authority, 7/04 at 101.00 AAA 2,549,600
Revenue Bonds, Choate Rosemary Hall, Series 1994A,
7.000%, 7/01/25 (Pre-refunded to 7/01/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4%
2,940 District of Columbia Housing Finance Agency, GNMA 6/04 at 100.00 AAA 2,941,970
Collateralized Single Family Mortgage Revenue Bonds,
Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax)
District of Columbia Water and Sewer Authority, Public Utility
Revenue Bonds, Subordinate Lien Series 2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AAA 5,075,200
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AAA 5,060,150
4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,099,618
System Revenue Bonds, Series 2001A, 5.500%, 10/01/19
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 5.8%
4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,630,099
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001C, 5.500%, 11/15/36 - MBIA Insured
1,505 Lee County, Florida, Transportation Facilities Revenue 10/14 at 100.00 AAA 1,557,479
Bonds, Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, 10/12 at 100.00 AAA 36,634,449
Miami International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
Miami-Dade County, Florida, Aviation Revenue Bonds,
Miami International Airport, Series 2002A:
18,500 5.000%, 10/01/33 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 18,094,850
2,150 5.125%, 10/01/35 (Alternative Minimum Tax) - FSA Insured 10/12 at 100.00 AAA 2,135,939
20
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 3,000 Orange County, Florida, Solid Waste Facility Revenue 10/13 at 100.00 AAA $ 3,174,240
Refunding Bonds, Series 2003, 5.000%, 10/01/14 -
MBIA Insured
Plantation, Florida, Non-Ad Valorem Revenue Bonds,
Refunding and Improvement Projects, Series 2003:
2,010 5.000%, 8/15/16 - FSA Insured 8/13 at 100.00 Aaa 2,126,982
2,110 5.000%, 8/15/17 - FSA Insured 8/13 at 100.00 Aaa 2,219,551
2,225 5.000%, 8/15/18 - FSA Insured 8/13 at 100.00 Aaa 2,326,638
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
5,000 Glynn-Brunswick Memorial Hospital Authority, Georgia, 8/06 at 102.00 AAA 5,324,800
Revenue Bonds, Southeast Georgia Health Systems
Project, Series 1996, 5.250%, 8/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 2.1%
24,250 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 25,995,515
Revenue Bonds, Hawaii Electric Company, Inc. and
Subsidiaries Project, Series 1996A, 6.200%, 5/01/26
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,285 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 1,321,725
Series 1994B-1, 6.750%, 7/01/22
1,165 Idaho Housing Agency, Single Family Mortgage Bonds, No Opt. Call Aa1 1,258,002
Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
1,400 Idaho Housing Agency, Single Family Mortgage Bonds, 1/05 at 102.00 Aaa 1,437,478
Series 1995B, Senior Lien, 6.600%, 7/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 10.4%
1,050 Bedford Park Village, Illinois, General Obligation Bonds, 12/14 at 100.00 AAA 1,110,869
Series 2004A, 5.250%, 12/15/20 (WI, settling 5/20/04) -
FSA Insured
12,500 Chicago, Illinois, General Airport Second Lien Revenue 7/04 at 102.00 AAA 12,714,000
Refunding Bonds, O'Hare International Airport, Series 1993C,
5.000%, 1/01/18 - MBIA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Refunding Bonds, O'Hare International Airport, Series 2001E:
4,615 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,886,685
4,870 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,127,720
12,000 Cook County, Illinois, General Obligation Refunding Bonds, No Opt. Call AAA 13,082,880
Series 2003, 5.000%, 11/15/10 - MBIA Insured
5,000 Community Unit School District No. 204, Indian Prairie, 12/11 at 100.00 AAA 5,273,350
Counties of DuPage and Will, Illinois, General Obligation
Bonds, Series 2001, 5.000%, 12/30/15 - FGIC Insured
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 9,085,002
16,470 0.000%, 4/01/16 (Pre-refunded to 10/01/04) - MBIA Insured 10/04 at 47.07 AAA 7,712,242
10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA 10,332,200
Provena Health, Series 1998A, 5.500%, 5/15/21 -
MBIA Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, 12/07 at 100.00 Aaa 2,250,302
Robert Morris College, Series 2000, 5.800%, 6/01/30 -
MBIA Insured
2,180 Illinois Educational Facilities Authority, Revenue Bonds, 10/10 at 101.00 AAA 2,469,635
DePaul University, Series 2000, 5.500%, 10/01/19
(Pre-refunded to 10/01/10) - AMBAC Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,143,150
Sisters Services, Inc. Obligated Group, Series 1998A,
5.000%, 6/01/18 - MBIA Insured
Illinois Health Facilities Authority, Revenue Bonds,
Alexian Brothers Health System, Series 1999:
4,500 5.000%, 1/01/19 - FSA Insured 1/09 at 101.00 AAA 4,586,580
12,000 5.125%, 1/01/28 - FSA Insured 1/09 at 101.00 AAA 12,059,640
22,410 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 22,623,791
Series 2002, 5.125%, 2/01/27 - FGIC Insured
21
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 4,560 County of Macon, Illinois, Revenue Bonds, Millikin University, 10/05 at 100.00 AAA $ 4,860,686
Series 1995, 6.250%, 10/01/16 (Pre-refunded to
10/01/05) - AMBAC Insured
5,000 Regional Transportation Authority, Cook, DuPage, Kane, 6/04 at 102.00 AAA 5,124,000
Lake, McHenry and Will Counties, Illinois, General
Obligation Bonds, Series 1994D, 6.750%, 6/01/25
(Pre-refunded to 6/01/04) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.5%
2,030 Decatur Township Multi-School Building Corporation, 7/13 at 100.00 AAA 2,081,826
Marion County, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/20 - FGIC Insured
11,000 Indiana Health Facility Financing Authority, Hospital 5/06 at 100.00 Aaa 11,257,290
Revenue Bonds, Daughters of Charity, Series 1993,
5.750%, 11/15/22
4,035 Indiana State Office Building Commission, Facilities Revenue No Opt. Call AAA 4,392,501
Bonds, Indiana State Museum, Series 2004C,
5.250%, 7/01/15 - FGIC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,315,715
Waterworks Project, Series 2002A, 5.250%, 7/01/33 -
MBIA Insured
20,000 Indianapolis Local Public Improvement Bond Bank, No Opt. Call AAA 5,307,200
Indiana, Series 1999E, 0.000%, 2/01/28 - AMBAC Insured
1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,340,415
County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 1/15/25 - FSA Insured
9,545 New Prairie School Building Corporation, LaPorte and 7/04 at 102.00 AAA 9,854,640
St. Joseph Counties, Indiana, First Mortgage Bonds,
Series 1994, 7.200%, 7/15/21 (Pre-refunded
to 7/15/04) - FSA Insured
5,000 Noblesville, Indiana, Redevelopment Authority, Economic 7/13 at 100.00 AAA 4,961,200
Development Lease Rental Bonds of 2003, Exit 10 Project,
5.000%, 1/15/28 - AMBAC Insured
10,000 The Trustees of Purdue University, Indiana, Purdue University 1/12 at 100.00 AAA 10,291,200
Student Fee Bonds, Series O, 5.000%, 7/01/19 -
MBIA Insured
3,705 Whitley County Middle School Building Corporation, 7/13 at 100.00 AAA 3,901,698
Columbia City, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 0.3%
3,045 Ames, Iowa, Hospital Revenue Bonds, Mary Greeley 6/13 at 100.00 Aaa 3,198,468
Medical Center, Series 2003 Refunding, 5.000%, 6/15/15 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4%
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,196,900
Revenue Bonds, KU Health System, Series 1999A,
5.650%, 9/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1%
12,980 Louisville and Jefferson County Metropolitan Sewer 11/11 at 101.00 AAA 13,674,300
District, Kentucky, Sewer and Drainage System Revenue
Bonds, Series 2001A, 5.500%, 5/15/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.3%
5,000 De Soto Parish, Louisiana, Pollution Control Revenue 9/09 at 102.00 AAA 5,447,050
Refunding Bonds, Cleco Utility Group, Inc. Project,
Series 1999, 5.875%, 9/01/29 - AMBAC Insured
7,305 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 7,956,752
Obligation Bonds, Series 1986, 5.950%, 11/01/15 -
FSA Insured
3,000 St. Charles Parish, Louisiana, Pollution Control Revenue 6/04 at 100.00 AAA 3,077,400
Bonds, Louisiana Power and Light Company, Series 1991,
7.500%, 6/01/21 (Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.2%
3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,007,680
Revenue Bonds, Series 2003B, 5.000%, 7/01/28 -
FSA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.3%
$ 22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA $ 23,199,975
Bonds, WGBH Educational Foundation, Series 2002A,
5.375%, 1/01/42 - AMBAC Insured
8,400 Massachusetts Health and Educational Facilities Authority, 10/05 at 102.00 AAA 9,018,744
Revenue Bonds, Berkshire Health Systems, Series 1995D,
6.000%, 10/01/13 - MBIA Insured
1,350 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 1,403,690
Refunding Bonds, Series 1995A, 6.100%, 12/01/16 -
MBIA Insured
33,315 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 32,916,219
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.5%
6,000 Detroit, Michigan, General Obligation Bonds, 10/11 at 100.00 AAA 6,398,760
Series 2001A-1, 5.375%, 4/01/18 - MBIA Insured
5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,376,964
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 6.000%, 5/01/29 - FSA Insured
Detroit, Michigan, Sewerage Disposal System Revenue
Bonds, Series 1999A:
15,825 5.750%, 7/01/26 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 18,037,968
20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 22,925,400
8,700 City of Detroit, Michigan, Water Supply System Revenue 7/07 at 101.00 AAA 8,711,049
Bonds, Senior Lien, Series 1997A, 5.000%, 7/01/27 -
MBIA Insured
8,000 Gaylord Community Schools, Counties of Ostego and Antrim, 5/07 at 37.75 AAA 2,801,600
State of Michigan, School Building and Site and Refunding
Bonds, Series 1992, 0.000%, 5/01/21 (Pre-refunded
to 5/01/07) - MBIA Insured
Grand Rapids Community College, Kent County, Michigan,
General Obligation Refunding Bonds, Series 2003:
1,050 5.250%, 5/01/17 - AMBAC Insured 5/13 at 100.00 AAA 1,125,842
1,085 5.250%, 5/01/20 - AMBAC Insured 5/13 at 100.00 AAA 1,145,098
27,000 Okemos Public School District, Ingham County, Michigan, 5/06 at 34.54 AAA 8,964,810
School Building and Site Bonds, Series 1991I,
0.000%, 5/01/21 (Pre-refunded to 5/01/06) - MBIA Insured
10,000 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 10,302,500
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.250%, 12/01/25 -
MBIA Insured
6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/08 at 101.00 AAA 7,201,748
Metropolitan Airport, Series 1998A, 5.375%, 12/01/15
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.2%
1,715 Minnesota Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 AA+ 1,750,912
Bonds, Series 1994M, 6.700%, 7/01/26 (Alternative
Minimum Tax)
13,020 St. Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 13,389,508
GNMA Collateralized Mortgage Loan Multifamily Housing
Revenue Bonds, Marian Center GEAC Project,
Series 2001A, 3.870%, 6/20/43
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 6.5%
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000:
15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 15,766,500
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,269,230
825 Nevada Housing Division, Single Family Mortgage Bonds, 10/04 at 102.00 Aa2 842,581
Senior Series 1994B-1, 6.700%, 10/01/17
635 Nevada Housing Division, Single Family Mortgage Bonds, 10/04 at 102.00 Aa2 641,394
Senior Series 1994B-2, 6.950%, 10/01/26 (Alternative
Minimum Tax)
40,285 Reno, Nevada, Capital Improvement Revenue Bonds, 6/12 at 100.00 AAA 41,523,764
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 10,094,400
Transportation Rail Access Corridor Project, Senior Lien,
Series 2002, 5.125%, 6/01/27 - AMBAC Insured
23
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.9%
$ 8,685 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA $ 9,223,209
Revenue Bonds, Series 1998A, 5.300%, 12/01/19 -
FSA Insured
Metropolitan Transportation Authority, New York, State Service
Contract Refunding Bonds, Series 2002A:
2,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AAA 2,571,600
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 5,048,100
15,000 New York City Municipal Water Finance Authority, New York, 6/06 at 101.00 AAA 15,430,200
Water and Sewer System Revenue Bonds, Fiscal
Series 1997A, 5.375%, 6/15/26 - FSA Insured
New York City Municipal Water Finance Authority, New York, Water
and Sewer System Revenue Bonds, Fiscal Series 1996B:
3,520 5.750%, 6/15/26 (Pre-refunded to 6/15/06) - MBIA Insured 6/06 at 101.00 AAA 3,836,659
6,480 5.750%, 6/15/26 - MBIA Insured 6/06 at 101.00 AAA 6,889,860
Dormitory Authority of the State of New York, Third General
Resolution Consolidated Revenue Bonds, Series 1994-2:
3,000 6.250%, 7/01/19 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 100.00 AAA 3,025,740
6,400 6.750%, 7/01/24 (Pre-refunded to 7/01/04) - MBIA Insured 7/04 at 102.00 AAA 6,588,032
5,000 New York State Urban Development Corporation, 1/07 at 102.00 AAA 5,546,150
Correctional Capital Facilities Revenue Bonds,
Series 1996-7, 5.700%, 1/01/27 (Pre-refunded
to 1/01/07) - MBIA Insured
15,600 Port Authority of New York and New Jersey, Consolidated 1/05 at 101.00 AAA 16,238,820
Bonds, Ninety-Seventh Series, 6.650%, 1/15/23
(Alternative Minimum Tax) - FGIC Insured
25,000 Triborough Bridge and Tunnel Authority, New York, 11/12 at 100.00 AAA 25,008,000
Subordinate Lien General Revenue Refunding Bonds,
Series 2002E, 5.000%, 11/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.4%
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,349,750
Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.6%
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 20,342,808
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 -
AMBAC Insured
1,725 Ohio Housing Finance Agency, GNMA Mortgage-Backed 3/05 at 102.00 Aaa 1,748,736
Securities Program Residential Mortgage Revenue Bonds,
Series 1995A-2, 6.625%, 3/01/26 (Alternative Minimum Tax)
Ohio Air Quality Development Authority, 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 14,253,800
8,000 6.375%, 4/01/29 (Alternative Minimum Tax) - AMBAC Insured 10/04 at 102.00 AAA 8,293,120
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1%
8,275 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 8,733,435
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
5,245 Oklahoma State Industries Authority, Revenue Bonds, 2/11 at 100.00 Aaa 5,416,302
Oklahoma Medical Research Foundation, Series 2001,
5.250%, 2/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.2%
1,885 State of Oregon, Housing and Community Services 7/05 at 102.00 Aa2 1,943,341
Department, Mortgage Revenue Bonds, Single Family
Mortgage Program, Series 1995A, 6.450%, 7/01/26
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.6%
7,120 Lehigh County General Purpose Authority, Pennsylvania, 7/04 at 102.00 AAA 7,323,205
Hospital Revenue Bonds, Lehigh Valley Hospital, Series 1994A,
6.250%, 7/01/22 (Pre-refunded to 7/01/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.2%
2,000 Puerto Rico Highway and Transportation Authority, 7/13 at 100.00 AAA 2,154,380
Transportation Revenue Bonds, Series 2003G,
5.250%, 7/01/19 - FGIC Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.0%
$ 2,195 Providence Housing Development Corporation, Rhode Island, 7/04 at 102.00 AAA $ 2,244,124
FHA-Insured Mortgage Revenue Refunding Bonds, Barbara
Jordan Apartments, Series 1994A, 6.750%, 7/01/25 -
MBIA Insured
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 22,661,525
Special Obligation Refunding Bonds, Series 1992B,
5.250%, 8/01/21 (Pre-refunded to 2/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.7%
10,000 Beaufort County, South Carolina, Tax Increment Bonds, New 12/12 at 100.00 AAA 10,053,000
River Redevelopment Project, Series 2002, 5.000%, 6/01/27 -
MBIA Insured
Piedmont Municipal Power Agency, South Carolina, Electric
Revenue Refunding Bonds, Series 1988:
9,190 0.000%, 1/01/13 (Pre-refunded to 7/01/09) - AMBAC Insured 7/09 at 76.63 AAA 5,919,279
12,810 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 8,393,112
South Carolina JOBS Economic Development Authority, Hospital
Revenue Bonds, Oconee Memorial Hospital, Inc., Series 1995:
3,000 6.150%, 3/01/15 - CONNIE LEE/AMBAC Insured 3/05 at 102.00 AAA 3,160,440
600 6.150%, 3/01/25 - CONNIE LEE/AMBAC Insured at 102.00 AAA 630,480
8,000 South Carolina JOBS-Economic Development Authority, 11/12 at 100.00 AAA 8,174,720
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 10,259,100
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, 3/11 at 100.00 AAA 6,781,623
Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/18
(Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.8%
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 23,478,990
Houston Industries, Inc. Project, Series 1998C, 5.125%, 5/01/19
(Optional put 5/01/08) - AMBAC Insured
1,181 Capital Area Housing Finance Corporation, Texas, FNMA-Backed 4/12 at 106.00 AAA 1,262,215
Single Family Mortgage Revenue Refunding Bonds,
Series 2002A-2, 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 11,761,513
Tax Refunding Bonds, Series 1999B, 5.875%, 2/15/29 -
AMBAC Insured
12,500 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,343,000
Bonds, Series 2000A, 6.125%, 11/01/35 (Alternative Minimum
Tax) - FGIC Insured
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 AAA 25,211,500
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 4,046,400
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 16,368,300
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 2,852,304
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 1,859,788
2,130 Harris County Health Facilities Development Corporation, Texas, 11/13 at 100.00 AAA 2,237,991
Thermal Utility Revenue Bonds, TECO Project, Series 2003,
5.000%, 11/15/15 - MBIA Insured
6,570 Houston, Texas, General Obligation Public Improvement 3/11 at 100.00 AAA 6,996,919
Bonds, Series 2001A, 5.375%, 3/01/19 - FSA Insured
4,170 Houston, Texas, Airport System Subordinate Lien Revenue 7/10 at 100.00 AAA 4,321,496
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
8,225 Houston, Texas, Airport System Subordinate Lien Revenue 7/07 at 100.00 AAA 8,420,344
Refunding Bonds, Series 1997, 5.125%, 7/01/22 -
FGIC Insured
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 17,802,225
Bonds, Convention and Entertainment Project, Series 2001B,
5.250%, 9/01/33 - AMBAC Insured
12,826 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 13,343,273
Collateralized Mortgage Multifamily Housing Revenue Bonds,
RRG Apartments Project, Series 2001, 6.350%, 3/20/42
25
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 23,865 Jefferson County, Texas, Health Facilities Development 8/11 at 100.00 AAA $ 24,458,761
Corporation, 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 8,380,505
Improvement Revenue Bonds, Series 2001A,
5.000%, 5/15/21 - MBIA Insured
Port of Houston Authority of Harris County, Texas, 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 3,365,955
3,375 5.500%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,540,409
7,205 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,593,782
Revenue Bonds, Series 2001, 5.375%, 7/01/15
(Alternative Minimum Tax) - FGIC Insured
Tarrant County, Texas, 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 2,950,431
6,500 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,461,130
9,670 Texas Department of Housing and Community Affairs, Single 9/06 at 102.00 AAA 9,983,115
Family Mortgage Revenue Bonds, Series 1996D,
6.250%, 9/01/28 (Alternative Minimum Tax) -
MBIA Insured
1,910 Waco, Texas, Combined Tax and Revenue Certificates of 2/14 at 100.00 AAA 1,953,529
Obligation, Series 2004, 5.000%, 2/01/21 - MBIA Insured
1,840 Ysleta Independent School District, Texas, Public Facility 11/09 at 100.00 AAA 1,886,773
Corporation, Lease Revenue Refunding Bonds, Series 2001,
5.375%, 11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.4%
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,003,660
5.000%, 7/01/28 - FGIC Insured
10,000 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 10,498,200
Refunding Bonds, Series 2003A, 5.000%, 7/01/16 -
FSA Insured
4,805 Utah Housing Finance Agency, Multifamily Housing Refunding 7/04 at 100.00 AA 4,811,535
Bonds, FHA-Insured Mortgage Loans, 1992 Issue A,
7.400%, 7/01/24
260 Utah Housing Finance Agency, Single Family Mortgage 7/04 at 102.00 Aaa 261,786
Bonds, Series 1994D, 6.750%, 1/01/27 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.9%
1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,094,492
Public Safety Facilities Lease Revenue Bonds, Series 2003A,
5.250%, 12/15/20 - FSA Insured
10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,011,000
Mortgage Bonds, 2001 Series H-1, 5.375%, 7/01/36 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.8%
4,000 Lake Washington School District No. 414, King County, 12/14 at 100.00 AAA 4,251,720
Washington, General Obligation Bonds, Series 2004,
5.000%, 12/01/15 - FSA Insured
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,328,743
Bonds, Series 2000, 5.500%, 7/01/25 - AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, 7/04 at 100.00 AAA 5,093,158
Generation System Revenue Bonds, Series 1989,
6.650%, 1/01/16 - FGIC Insured
6,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 5,963,640
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
4,345 Washington State Public Power Supply System, Nuclear 7/07 at 102.00 AAA 4,528,533
Project 1 Revenue Refunding Bonds, Series 1997A,
5.125%, 7/01/17 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8%
10,000 Harrison County Commission, West Virginia, Solid Waste 5/04 at 101.00 AAA 10,132,400
Disposal Revenue Bonds, West Penn Power Company,
Harrison Station Project, Series 1993B, 6.300%, 5/01/23
(Alternative Minimum Tax) - MBIA Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.8%
$ 680 Wisconsin Housing and Economic Development Authority, 7/04 at 100.00 AAA $ 681,112
Housing Revenue Bonds, Series 1992A, 6.850%, 11/01/12 -
MBIA Insured
15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102.00 AAA 15,655,200
Revenue Bonds, Marshfield Clinic Project, Series 1997,
5.750%, 2/15/27 - MBIA Insured
18,000 Wisconsin Health and Educational Facilities Authority, 8/07 at 102.00 AAA 18,787,500
Revenue Bonds, Aurora Health Care, Inc., Series 1997,
5.250%, 8/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WYOMING - 0.3%
3,335 Wyoming Community Development Authority, Housing Revenue 12/07 at 101.50 AAA 3,416,140
Bonds, Series 1997-6, 5.600%, 6/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 2,016,587 Total Long-Term Investments (cost $1,800,766,031) - 152.1% 1,911,353,491
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 25,502,435
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (680,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,256,855,926
====================================================================================================================
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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
27
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 1.0%
$ 2,890 Alaska Housing Finance Corporation, Governmental Purpose 12/05 at 102.00 AAA $ 2,960,025
Bonds, Series 1995A, 5.875%, 12/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 31.3%
ABAG Finance Authority for Non-Profit Corporations, California,
Insured Certificates of Participation, Children's Hospital
Medical Center of Northern California, Series 1999:
6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,523,280
10,000 6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 10,984,100
4,755 Antioch Area Public Facilities Financing Agency, California, 8/09 at 101.00 AAA 5,177,339
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 3,432,163
Control Revenue Refunding Bonds, Pacific Gas and Electric
Company, Remarketed, Series 1996A, 5.350%, 12/01/16
(Alternative Minimum Tax) - MBIA Insured
375 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 385,646
Mortgage Obligation Bonds, Series 1994A-I,
7.150%, 12/30/24 (Alternative Minimum Tax)
340 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 348,585
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III,
7.450%, 6/30/25 (Alternative Minimum Tax)
5,275 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 7,406,153
Single Family Residential Mortgage Revenue Bonds,
Series 1984A, 10.250%, 7/01/17
11,080 City of Lodi, California, Electric System Revenue Certificates 1/09 at 40.71 AAA 3,903,262
of Participation, Series 1999B, 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 6,598,000
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
8,880 Pomona, California, GNMA-FHLMC Mortgage-Backed Securities No Opt. Call AAA 11,604,562
Program, Single Family Mortgage Revenue Refunding Bonds,
Series 1990B, 7.500%, 8/01/23
10,305 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 13,222,449
Program, Single Family Mortgage Revenue Refunding Bonds,
Series 1990A, 7.500%, 5/01/23
14,755 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 18,431,651
Securities Program, Single Family Mortgage Revenue Bonds,
Series 1988A, 8.300%, 9/01/14 (Alternative Minimum Tax)
4,300 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 4,365,145
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.125%, 5/01/19 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.9%
1,500 Joint School District No. 28, Adams and Arapahoe Counties, 12/13 at 100.00 AAA 1,564,920
Colorado, General Obligation Bonds, Series 2003A,
5.125%, 12/01/21 - FSA Insured
2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,644,725
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 6,441,720
Bonds, Series 2000A, 5.750%, 9/01/29 - MBIA Insured
1,310 Sand Creek Metropolitan District, Colorado, General Obligation 12/13 at 100.00 AAA 1,370,365
Bonds, Series 2004, 5.000%, 12/01/16 - XLCA Insured
1,390 Teller County School District No. RE-2 Woodland Park, 12/14 at 100.00 AAA 1,421,497
Colorado, General Obligation Bonds, Series 2004,
5.000%, 12/01/22 (WI, settling 5/05/04) - MBIA Insured
1,000 The Board of Regents of the University of Colorado, Enterprise 6/12 at 100.00 AAA 1,032,510
System Revenue Bonds, Series 2002A, 5.000%, 6/01/19 -
FGIC Insured
28
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.5%
$ 1,500 JEA, Florida, Water and Sewer System Revenue Bonds, 10/13 at 100.00 AAA $ 1,559,940
Series 2004A, 5.000%, 10/01/19 - FGIC Insured
4,145 City of Miami, Florida, General Obligation Bonds, 1/12 at 100.00 AAA 4,222,677
Series 2002, 5.000%, 1/01/22 - MBIA Insured
4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 AAA 4,564,445
Bonds, Series 2003-1, 5.250%, 10/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 5.1%
8,000 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 8,618,560
Certificates, Series 2003, 5.250%, 1/01/16 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 6,688,760
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 5.500%, 8/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.9%
8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 AAA 9,118,948
Refunding Bonds, Series 2000B, 6.500%, 7/01/15 (Alternative
Minimum Tax) - FGIC Insured
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/09 at 101.00 AAA 2,486,700
Revenue Bonds, Hawaii Electric Company, Inc. and Subsidiaries
Project, Series 1999D, 6.150%, 1/01/20 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 20.5%
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,059,800
5.000%, 12/01/22 - FGIC Insured
10,000 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,389,600
Series 2000D, 5.500%, 1/01/35 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation No Opt. Call AAA 9,473,296
Lease Certificates, Series 1992A, 6.250%, 1/01/15 -
MBIA Insured
23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 12,361,539
Program Revenue Bonds, Elgin School District 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 10,347,838
Catholic Health Partners Services, Series 1995A,
5.300%, 2/15/18 - CONNIE LEE/AMBAC Insured
10,150 Onterie Center Housing Finance Corporation, An Illinois Not 7/04 at 101.00 AAA 10,406,288
For Profit Corporation, Mortgage Revenue Refunding Bonds,
FHA-Insured Mortgage Loan, Onterie Center Project,
Series 1992A, 7.050%, 7/01/27 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 4,098,491
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.8%
4,725 Decatur Township Multi-School Building Corporation, Marion 7/13 at 100.00 AAA 4,924,726
County, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/17 - FGIC Insured
2,350 Indiana State Office Building Commission, Facilities Revenue No Opt. Call AAA 2,556,189
Bonds, Indiana State Museum, Series 2004C,
5.250%, 7/01/16 - FGIC Insured
1,000 MSD Steuben County K-5 Building Corporation, Indiana, 7/14 at 102.00 AAA 1,052,010
First Mortgage Revenue Bonds, Series 2003,
5.250%, 1/15/21 - FSA Insured
1,315 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,362,498
County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 7/15/18 - FSA Insured
1,490 North Lawrence Community Schools Building Corporation, 1/14 at 100.00 AAA 1,534,372
Marion County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 7/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2%
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary 6/13 at 100.00 Aaa 3,467,594
Greeley Medical Center, Series 2003, 5.000%, 6/15/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.0%
8,000 Kentucky State Property and Buildings Commission, Revenue 10/11 at 100.00 AAA 8,964,160
Refunding Bonds, Project No. 72, Series 2001,
5.375%, 10/01/14 (Pre-refunded to 10/01/11)
29
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7%
$ 5,000 Maryland Transportation Authority, Baltimore-Washington 3/12 at 101.00 AAA $ 5,072,600
International Airport Parking Revenue Bonds, Series 2002B,
5.125%, 3/01/21 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6%
6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 6,947,850
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax) - AMBAC Insured
3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,915,308
Limited Obligation Multifamily Housing Revenue Bonds,
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 5,285,687
Minnesota, Airport Revenue Bonds, Series 2001B,
5.750%, 1/01/15 (Alternative Minimum Tax) - FGIC Insured
1,095 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 1,124,521
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 4.8%
7,495 Jefferson County Industrial Development Authority, Missouri, 8/07 at 100.00 AAA 9,488,970
Housing Revenue Bonds, Richardson Road Apartments
Project, Series 1985, 11.000%, 12/15/15 (Pre-refunded
to 8/15/07)
2,000 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 2,056,660
Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured
2,500 Saint Louis County Regional Convention and Sports Complex 8/13 at 100.00 AAA 2,687,125
Authority, Missouri, Convention and Sports Facility Project
Lease Revenue Bonds, Series 2003B-1, 5.250%, 8/15/16 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.9%
10,000 Clark County, Nevada, Airport System Subordinated Lien Revenue 7/11 at 100.00 AAA 10,259,800
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 8,102,579
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 7/04 at 101.00 AAA 5,195,440
Revenue Bonds, Sierra Pacific Power Company Project,
Remarketed, Series 1987, 6.300%, 12/01/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.3%
800 Rutgers State University, New Jersey, Certificates of 1/14 at 100.00 AAA 813,760
Participation, Lower Georges Street University Redevelopment
Associates, LLC, Series 2004, 5.000%, 1/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.8%
7,645 Metropolitan Transportation Authority, New York, Transit No Opt. Call AAA 8,318,983
Facilities Revenue Bonds, Series J, 9.100%, 7/01/05 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.0%
3,100 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA 3,121,979
Mortgage Revenue Bonds, Betsy Johnson Regional Hospital
Project, Series 2003, 5.125%, 10/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 3.7%
1,750 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 1,846,950
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 6,189,904
Revenue Refunding Bonds, Series 2000, 5.625%, 7/01/20
(Pre-refunded to 7/01/10) - FSA Insured
3,000 Tulsa Industrial Authority, Oklahoma, GNMA Collateralized 11/05 at 103.00 Aaa 3,126,840
Multifamily Housing Revenue Bonds, Country Club of
Woodland Hills Project, Series 1995, 6.250%, 11/01/27
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 9.9%
Oregon Health Sciences University, Revenue Bonds, Series 2002A:
$ 5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA $ 5,036,400
19,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 19,038,380
4,980 Oregon, Health, Housing, Educational, and Cultural Facilities 3/12 at 105.00 Aaa 5,360,422
Authority, Revenue Bonds, GNMA Mortgaged-Backed Securities
Program, Necanicum Village Assisted Living Project, 2001
Series 2001A, 5.000%, 6/20/42
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 1.7%
1,650 Pennsylvania Turnpike Commission, Oil Franchise Tax Senior 12/13 at 100.00 AAA 1,669,355
Lien Revenue Bonds, Series 2003A, 5.000%, 12/01/24 -
MBIA Insured
3,075 Philadelphia School District, Pennsylvania, General Obligation 8/12 at 100.00 AAA 3,325,367
Bonds, Series 2002B, 5.625%, 8/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8%
2,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 2,257,580
Revenue Bonds, Series 2003AA, 5.500%, 7/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9%
5,000 Metropolitan Government Nashville-Davidson County Health 11/09 at 101.00 AAA 5,769,650
and Educational Facilities Board, Tennessee, Revenue Bonds,
Ascension Health Credit Group, Series 1999A, 6.000%, 11/15/30
(Pre-refunded to 11/15/09) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.4%
275 Corpus Christi Housing Finance Corporation, Texas, Single 7/04 at 100.00 AAA 276,356
Family Mortgage Senior Revenue Refunding Bonds,
Series 1991A, 7.700%, 7/01/11 - MBIA Insured
12,500 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,711,500
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
275 El Paso Property Finance Authority, Inc., Texas, GNMA 6/04 at 101.00 Aaa 278,671
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1992A, 8.700%, 12/01/18
(Alternative Minimum Tax)
North Harris County Regional Water Authority, Texas, Senior
Water Revenue Bonds, Series 2003:
4,565 5.250%, 12/15/20 - FGIC Insured 12/13 at 100.00 AAA 4,806,123
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 AAA 5,030,640
7,600 City of San Antonio, Texas, Airport System Improvement 7/11 at 101.00 AAA 7,978,328
Revenue Bonds, Series 2001, 5.375%, 7/01/16 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 21.0%
5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,176,450
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 1,664,388
Washington, General Obligation Bonds, Series 2002,
5.250%, 12/01/18 - FSA 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 12,446,041
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,139,272
Pierce County School District No. 343, Dieringer, Washington,
General Obligation Refunding Bonds, Series 2003:
2,755 5.250%, 12/01/18 - FSA Insured 6/13 at 100.00 Aaa 2,934,020
2,990 5.250%, 12/01/19 - FSA Insured 6/13 at 100.00 Aaa 3,163,629
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,031,235
5.625%, 4/01/17 (Alternative Minimum Tax) - FGIC Insured
895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 AAA 952,817
Terminal 18, Series 1999C, 6.000%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
1,265 City of Tacoma, Washington, General Obligation Bonds, 12/12 at 100.00 AAA 1,312,779
Series 2002, 5.000%, 12/01/18 - FGIC Insured
31
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 4,200 The City of Tacoma, Washington, Solid Waste Utility Revenue 12/11 at 100.00 AAA $ 4,405,044
Refunding Bonds, Series 2001, 5.250%, 12/01/20 -
AMBAC Insured
5,000 State of Washington, General Obligation Bonds, Series 2001C, 1/11 at 100.00 AAA 5,089,950
5.250%, 1/01/26 - FSA Insured
6,990 Washington State Public Power Supply System, Nuclear 7/08 at 102.00 AAA 7,286,446
Project 1 Revenue Refunding Bonds, Series 1998A,
5.125%, 7/01/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 436,220 Total Long-Term Investments (cost $428,710,434) - 151.8% 452,772,327
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 6,471,531
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.0)% (161,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 298,243,858
====================================================================================================================
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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
32
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.9%
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 $ 5,496,000
3,970 5.750%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 4,369,104
4,830 5.750%, 2/01/22 (Pre-refunded to 2/01/07) - FGIC Insured 2/07 at 101.00 AAA 5,327,828
2,500 City of Mobile, Alabama, General Obligation Refunding 2/06 at 102.00 AAA 2,720,975
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 2,201,900
Warrants, Series 1996B, 5.750%, 7/01/14 (Pre-refunded to
7/01/06) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 14.0%
31,200 Foothill-Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 5,334,264
Toll Road Refunding Revenue Bonds, Series 1999,
0.000%, 1/15/34 - MBIA Insured
6,850 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 7,427,044
Participation, Series 1996A, 6.000%, 7/01/26 - MBIA Insured
15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 15,335,250
of Participation, Series 2003, 5.250%, 2/01/30 -
FGIC Insured
10,000 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 9,896,100
Certificates of Participation, Series 2003B,
5.000%, 8/15/34 - MBIA Insured
1,435 Pasadena Area Community College District, Los Angeles 6/13 at 100.00 AAA 1,467,015
County, California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/22 - FGIC Insured
13,000 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 AAA 14,525,940
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
San Leandro Housing Finance Corporation, California, Mortgage
Revenue Refunding Bonds, FHA-Insured Mortgage Loan-Ashland
Village Apartments, Section 8 Assisted Project, Series 1993A:
1,075 6.550%, 1/01/12 - MBIA Insured 7/04 at 100.00 AAA 1,076,742
5,100 6.650%, 1/01/25 - MBIA Insured 7/04 at 100.00 AAA 5,105,763
12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 12,471,125
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.2%
Colorado Educational and Cultural Facilities Authority, Charter
School Revenue Bonds, Adams School District 12 - Pinnacle
School, Series 2003:
1,940 5.250%, 6/01/23 - XLCA Insured 6/13 at 100.00 AAA 1,995,678
1,000 5.000%, 6/01/33 - XLCA Insured 6/13 at 100.00 AAA 984,130
3,405 Colorado Educational and Cultural Facilities Authority, Charter 12/13 at 100.00 AAA 3,506,980
School Revenue Bonds, Classical Academy, Series 2003,
5.250%, 12/01/23 - XLCA Insured
Colorado Health Facilities Authority, Revenue Bonds, Poudre
Valley Health Care, Inc., Series 1999A:
2,480 5.625%, 12/01/19 - FSA Insured 12/09 at 101.00 Aaa 2,657,146
3,500 5.750%, 12/01/23 - FSA Insured 12/09 at 101.00 Aaa 3,715,845
6,100 Denver City and County School District No. 1, Colorado, 12/13 at 100.00 AAA 6,381,088
General Obligation Bonds, Series 2004, 5.000%, 12/01/18 -
FSA Insured
12,955 Denver City and County, Colorado, Airport System Revenue 11/05 at 102.00 AAA 13,755,360
Bonds, Series 1995A, 5.600%, 11/15/20 - MBIA Insured
Denver Convention Center Hotel Authority, Colorado, Convention
Center Hotel Senior Revenue Bonds, Series 2003A:
6,770 5.000%, 12/01/19 - XLCA Insured 12/13 at 100.00 AAA 6,948,660
17,495 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 17,373,935
33
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA $ 1,329,160
Series 2002B, Detention Facility Project, 5.000%, 12/01/27 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6%
3,140 District of Columbia Housing Finance Agency, GNMA 6/04 at 102.00 AAA 3,147,253
Collateralized Single Family Mortgage Revenue Bonds,
Series 1990C-4, 6.350%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.8%
4,000 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 4,109,920
Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.3%
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,816,109
2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,621,951
4,500 South Fulton Municipal Regional Water and Sewer Authority, 1/13 at 100.00 Aaa 4,504,410
Georgia, Water and Sewer Revenue Bonds, Series 2003,
5.000%, 1/01/33 - MBIA Insured
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 AAA 3,073,740
Revenue Certificates, South Georgia Medical Center
Project, Series 2002, 5.200%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 8.0%
2,375 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 2,459,028
Series 2003A, 5.000%, 7/15/19 - FSA Insured
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
6,105 6.100%, 7/01/16 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 6,743,949
9,500 6.625%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,829,620
20,000 Department of Budget and Finance of the State of Hawaii, 7/10 at 101.00 AAA 21,345,200
Special Purpose Revenue Refunding Bonds, Hawaiian Electric
Company, Inc. and Subsidiary Projects, Series 2000,
5.700%, 7/01/20 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.3%
1,340 Idaho Housing and Finance Association, Single Family Mortgage 1/08 at 101.50 AAA 1,416,501
Bonds, Series 1998E, 5.450%, 7/01/18 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.6%
2,500 Kane, DuPage, Kendall and Will Counties, Aurora, Illinois, 1/05 at 100.00 AAA 2,575,300
General Obligation Obligation Bonds, Series 1996,
5.800%, 1/01/14 (Pre-refunded to 1/01/05) - MBIA Insured
1,500 Chicago, Illinois, General Obligation Bonds, Series 1995, 7/05 at 102.00 AAA 1,611,495
6.125%, 1/01/16 (Pre-refunded to 7/01/05) - AMBAC Insured
25,585 Chicago, Illinois, General Obligation Project and Refunding 1/06 at 102.00 AAA 25,731,858
Bonds, Series 1996B, 5.125%, 1/01/25 - FGIC Insured
8,370 Chicago, Illinois, Revenue Bonds, Midway Airport, 1/07 at 101.00 AAA 8,999,843
Series 1996A, 5.625%, 1/01/17 - MBIA Insured
Chicago, Illinois, Revenue Bonds, Midway Airport, Series 1994A:
280 6.100%, 1/01/08 (Alternative Minimum Tax) - MBIA Insured 7/04 at 102.00 AAA 286,535
710 6.250%, 1/01/14 (Alternative Minimum Tax) - MBIA Insured 7/04 at 102.00 AAA 726,593
8,235 Chicago, Illinois, General Airport Second Lien Revenue 1/05 at 102.00 AAA 8,640,738
Refunding Bonds, O'Hare International Airport, Series 1994A,
6.375%, 1/01/15 - MBIA Insured
4,115 Chicago Park District, Illinois, General Obligation Limited Tax 7/11 at 100.00 AAA 4,440,579
Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured
9,680 Illinois Educational Facilities Authority, Revenue Bonds, 6/08 at 100.00 AAA 9,940,198
Columbia College, Series 1998, 5.000%, 12/01/20 -
MBIA Insured
1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call AAA 2,320,890
SSM Healthcare System, Series 1992AA,
6.550%, 6/01/14 - MBIA Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
$ 4,000 6.125%, 4/01/12 - FSA Insured No Opt. Call AAA $ 4,488,000
5,000 6.250%, 4/01/18 - FSA Insured No Opt. Call AAA 5,948,650
610 Peoria, Moline and Freeport, Illinois, Collateralized Single 10/05 at 105.00 AAA 625,610
Family Mortgage Revenue Bonds, Series 1995A,
7.600%, 4/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.3%
4,655 Hamilton Southeastern Consolidated School Building 1/14 at 100.00 AAA 4,920,568
Corporation, Hamilton County, Indiana, First Mortgage
Bonds, Series 2004, 5.000%, 7/15/15 - FSA Insured
1,625 Hammond Multi-School Building Corporation, Lake County, 7/13 at 100.00 AAA 1,656,720
Indiana, First Mortgage Revenue Bonds, Series 2003B,
5.000%, 1/15/21 - FGIC Insured
5,285 Logansport School Building Corporation, Indiana, First 7/11 at 100.00 AAA 5,424,524
Mortgage Bonds, Series 2001, 5.125%, 1/15/22 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.1%
130 Olathe-Labette County, Kansas, GNMA Collateralized Single 2/05 at 105.00 Aaa 136,780
Family Mortgage Revenue Refunding Bonds, Series 1994A-I,
8.100%, 8/01/23 (Alternative Minimum Tax)
350 Sedgwick and Shawnee Counties, Kansas, GNMA Collateralized 11/04 at 105.00 Aaa 371,287
Single Family Mortgage Revenue Refunding Bonds,
Series 1994A-II, 8.050%, 5/01/24 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.3%
7,000 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 1,766,030
System Revenue Bonds, Norton Healthcare, Inc.,
Series 2000B, 0.000%, 10/01/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.1%
4,910 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA 5,461,491
Series 2002C, 5.500%, 11/01/15 - MBIA Insured
3,000 Massachusetts Development Finance Authority, Revenue No Opt. Call AAA 3,361,440
Bonds, WGBH Educational Foundation, Series 2002A,
5.750%, 1/01/42 - AMBAC Insured
2,600 Massachusetts Health and Educational Facilities Authority, 10/13 at 100.00 AAA 2,597,894
Revenue Bonds, Simmons College, Series 2003F,
5.000%, 10/01/33 - FGIC Insured
2,585 Massachusetts Housing Finance Agency, Single Family 6/06 at 102.00 AAA 2,677,827
Housing Revenue Bonds, Series 48, 6.350%, 6/01/26
(Alternative Minimum Tax) - MBIA Insured
1,925 Massachusetts Housing Finance Agency, Single Family 6/07 at 102.00 AAA 1,993,203
Housing Revenue Bonds, Series 53, 6.150%, 12/01/29
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.0%
4,705 Board of Control of Grand Valley State University, Michigan, 12/10 at 100.00 AAA 4,983,724
General Revenue Bonds, Series 2000, 5.250%, 12/01/20 -
FGIC Insured
10,000 Michigan Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,466,200
Revenue Bonds, Series 1997A, 6.000%, 4/01/16 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.3%
6,650 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/05 at 102.00 AAA 6,829,284
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.8%
1,000 Hazelwood Industrial Development Authority, Missouri, 9/06 at 102.00 AAA 1,046,310
GNMA Collateralized Project Multifamily Housing Revenue
Refunding Bonds, Lakes Apartments Project, Series 1996,
6.000%, 9/20/16
4,500 Kansas City Land Clearance Redevelopment Authority, 12/05 at 102.00 AAA 4,850,010
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 1,069,270
Leasehold Revenue Bonds, Capital Improvement Series 1996B,
5.750%, 1/15/14 - AMBAC Insured
35
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI (continued)
$ 1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA $ 1,076,103
Housing Revenue Bonds, Brookstone Village Apartments,
Series 1996A, 6.000%, 12/01/16 (Alternative Minimum Tax) -
FSA Insured
1,250 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 1,251,350
Bonds, Series 2003, 5.000%, 10/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.3%
5,000 Clark County, Nevada, Industrial Development Revenue 6/04 at 100.00 AAA 5,125,000
Bonds, Nevada Power Company Project, Series 1992A,
6.700%, 6/01/22 (Alternative Minimum Tax) - FGIC Insured
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 AAA 5,275,800
Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38
(Alternative Minimum Tax) - AMBAC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier Series 2000:
5,000 0.000%, 1/01/27 - AMBAC Insured No Opt. Call AAA 1,397,800
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 5,781,050
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 3,003,200
6,035 5.750%, 7/01/16 - AMBAC Insured 7/09 at 101.00 AAA 6,723,654
6,500 5.750%, 7/01/17 - AMBAC Insured 7/09 at 101.00 AAA 7,224,750
3,535 5.750%, 7/01/18 - AMBAC Insured 7/09 at 101.00 AAA 3,930,743
4,000 6.000%, 7/01/19 - AMBAC Insured 7/09 at 101.00 AAA 4,531,760
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.7%
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,412,451
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 14.6%
County of Nassau, New York, General Obligation Improvement
Bonds, Series 2000E:
1,755 6.000%, 3/01/16 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 2,014,529
2,740 6.000%, 3/01/18 (Pre-refunded to 3/01/10) - FSA Insured 3/10 at 100.00 AAA 3,145,191
2,265 County of Nassau, New York, General Obligations, Serial 3/10 at 100.00 AAA 2,703,663
General Improvement Bonds, Series F, 7.000%, 3/01/14
(Pre-refunded to 3/01/10) - FSA Insured
7,500 Nassau Health Care Corporation, New York, County 8/09 at 102.00 AAA 7,985,850
Guaranteed Health System Revenue Bonds, Series 1999,
5.750%, 8/01/29 - FSA Insured
4,000 New York City, New York, General Obligation Bonds, Fiscal No Opt. Call AAA 4,314,080
Series 1995E, 8.000%, 8/01/05 - MBIA Insured
7,900 New York City, New York, General Obligation Bonds, Fiscal 3/06 at 101.50 AAA 8,508,300
Series 1996I, 5.875%, 3/15/18 - FSA Insured
7,000 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 7,509,320
Water and Sewer System Revenue Bonds, Fiscal Series
2000A, 5.750%, 6/15/31 - FGIC Insured
Dormitory Authority of the State of New York, Insured Revenue
Bonds, New Island Hospital, Series 1999B:
3,400 5.750%, 7/01/19 - MBIA Insured 7/09 at 101.00 AAA 3,642,794
5,750 6.000%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 6,333,280
9,095 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 9,532,288
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
6,095 New York State Medical Care Facilities Finance Agency, 2/05 at 102.00 AAA 6,440,160
Mental Health Services Facilities Improvement Revenue
Bonds, Series 1995A, 6.000%, 8/15/15 (Pre-refunded
to 2/15/05) - MBIA Insured
New York State Medical Care Facilities Finance Agency,
FHA-Insured Mortgage Revenue Bonds, New York and Presbyterian
Hospital, Series 1994A:
3,000 6.750%, 8/15/14 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 3,187,530
2,500 6.800%, 8/15/24 (Pre-refunded to 2/15/05) - AMBAC Insured 2/05 at 102.00 AAA 2,657,275
2,750 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 2,939,558
Fund Bonds, Second General, Series 2004, 5.000%, 4/01/15 -
MBIA Insured
5,000 New York State Urban Development Corporation, Correctional 1/07 at 102.00 AAA 5,546,150
Capital Facilities Revenue Bonds, Series 1996-7,
5.700%, 1/01/27 (Pre-refunded to 1/01/07) - FSA Insured
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.8%
$ 10,715 Fargo, North Dakota, Health System Revenue Bonds, 6/10 at 101.00 AAA $ 11,379,437
MeritCare Obligated Group, Series 2000A, 5.600%, 6/01/21 -
FSA Insured
8,000 North Dakota, Student Loan Trust Revenue Bonds, 12/10 at 100.00 AAA 8,243,280
Series 2000B, 5.850%, 12/01/25 (Alternative Minimum
Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.5%
12,200 Board of Education, City School District of Columbus, 6/13 at 100.00 AAA 12,212,688
Franklin County, Ohio, General Obligation Bonds,
Series 2003, 5.000%, 12/01/31 - FGIC Insured
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 722,043
5.250%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1%
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 1,353,000
4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,197,439
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.2%
Portland, Oregon, Airport Way Urban Renewal and
Redevelopment Bonds, Series 2000A:
4,405 5.700%, 6/15/17 - AMBAC Insured 6/10 at 101.00 Aaa 4,855,940
3,665 5.750%, 6/15/18 - AMBAC Insured 6/10 at 101.00 Aaa 4,058,951
4,265 5.750%, 6/15/19 - AMBAC Insured 6/10 at 101.00 Aaa 4,711,418
1,375 5.750%, 6/15/20 - AMBAC Insured 6/10 at 101.00 Aaa 1,513,792
1,520 Housing Authority of Portland, Oregon, Multifamily Housing 7/10 at 100.00 Aaa 1,572,014
Revenue Bonds, Lovejoy Station Apartments Project,
Series 2000, 6.000%, 7/01/33 (Alternative Minimum
Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.6%
12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 14,195,102
Pennsylvania, Insured Revenue Bonds, West Penn Allegheny
Health System, Series 2000A, 6.500%, 11/15/30 -
MBIA Insured
1,825 Allegheny County Residential Finance Authority, Pennsylvania, 11/06 at 102.00 Aaa 1,901,723
Single Family Mortgage Revenue Bonds, GNMA Mortgage
Backed Securities Program, Series 1996AA, 6.450%, 5/01/28
(Alternative Minimum Tax)
9,485 The Berks County Municipal Authority, Pennsylvania, 11/09 at 102.00 AAA 11,041,583
Hospital Revenue Bonds, The Reading Hospital and Medical
Center Project, Series 1999, 6.000%, 11/01/19 (Pre-refunded
to 11/01/09) - FSA Insured
1,000 Luzerne County Industrial Development Authority, Exempt 12/04 at 102.00 Aaa 1,048,160
Facilities Revenue Refunding Bonds, Pennsylvania Gas and
Water Company Project, Series 1994A, 7.000%, 12/01/17
(Alternative Minimum Tax) - AMBAC Insured
12,730 City of Philadelphia, Pennsylvania, Water and Wastewater 8/07 at 102.00 AAA 12,828,658
Revenue Bonds, Series 1997A, 5.125%, 8/01/27 -
AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,661,753
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8%
4,000 Puerto Rico Municipal Finance Agency, Series 2002A, 8/12 at 100.00 AAA 4,302,520
5.250%, 8/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.0%
5,000 South Carolina Public Service Authority, Revenue Bonds, 1/14 at 100.00 AAA 5,168,200
Sanatee Cooper Electric System, Series 2004A,
5.000%, 1/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.5%
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries, Inc. Project, Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,366,000
9,000 5.125%, 11/01/20 (Optional put 11/01/08) - AMBAC Insured 11/08 at 102.00 AAA 9,372,240
12,500 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 12,711,500
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
3,895 Denton, Texas, Utility System Revenue Bonds, Series 2000A, 12/10 at 100.00 AAA 4,262,883
5.625%, 12/01/19 - FSA Insured
7,210 Houston, Texas, Water and Sewer System Junior Lien Revenue 12/07 at 101.00 AAA 7,493,353
Refunding Bonds, Series 1997A, 5.250%, 12/01/22 -
FGIC Insured
37
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA $ 4,572,637
Refunding Bonds, Transmission Services Corporation,
Series 2003B, 5.000%, 5/15/21 - FSA Insured
10,000 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 9,901,500
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.000%, 5/15/33 - AMBAC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, 7/12 at 105.00 Aaa 4,356,807
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 Healthcare System,
Series 2000A:
6,725 5.750%, 12/01/17 - FSA Insured 12/10 at 101.00 AAA 7,343,835
7,500 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 7,978,125
10,627 Tarrant County Housing Finance Corporation, Texas, 10/11 at 105.00 Aaa 11,116,586
GNMA Collateralized Mortgage Loan Multifamily Housing
Revenue Bonds, Legacy Senior Residence Apartments
Project, Series 2001, 6.625%, 4/20/42
2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,374,658
Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.8%
2,695 Intermountain Power Agency, Utah, Power Supply Revenue 7/04 at 101.00 AAA 2,757,847
Refunding Bonds, Series 1993A, 5.500%, 7/01/20 -
AMBAC Insured
8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 8,916,394
Refunding Bonds, Series 2003A, 5.000%, 7/01/18 -
FSA Insured
2,385 Mountain Regional Water Special Service District, Utah, 12/13 at 100.00 AAA 2,375,722
Water Revenue Bonds, Series 2003, 5.000%, 12/15/33 -
MBIA Insured
5,525 Utah Transit Authority, Sales Tax Revenue Bonds, 12/12 at 100.00 AAA 5,568,979
Series 2002A, 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 1,434,959
Revenue Bonds, Fletcher Allen Health Care Project,
Series 2000A, 6.000%, 12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8%
Loudoun County Industrial Development Authority, Virginia,
Public Safety Facilities Lease Revenue Bonds, Series 2003A:
1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,201,842
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 520,085
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,374,065
Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative Minimum
Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 6.6%
10,000 Chelan County Public Utility District 1, Washington, Hydro- 7/11 at 101.00 AAA 10,352,900
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 1,393,386
Washington, General Obligation Bonds, Series 2002,
5.000%, 12/01/22 - FSA Insured
5,230 Douglas County Public Utility District 1, Washington, Revenue 9/09 at 102.00 AAA 5,686,317
Bonds, Wells Hydroelectric, 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 3,713,825
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, 12/05 at 100.00 AAA 2,685,000
Series 1995B, 6.375%, 12/01/15 (Pre-refunded to
12/01/05) - FGIC Insured
6,200 Washington, General Obligation Various Purpose Bonds, 7/12 at 100.00 AAA 6,356,302
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
3,950 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,012,410
Bonds, Swedish Health Services, Series 1998,
5.125%, 11/15/22 - AMBAC Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6%
$ 8,000 Pleasants County, West Virginia, Pollution Control Revenue 5/05 at 102.00 AAA $ 8,492,880
Bonds, Monongahela Power Company Pleasants Station
Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.4%
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 7,946,820
Bonds, Northern States Power Company Project, Series 1996,
6.000%, 11/01/21 (Alternative Minimum Tax) - MBIA Insured
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, 12/10 at 100.00 Aaa 13,278,870
Series 2000A, 5.750%, 12/01/25 (Alternative Minimum
Tax) - FGIC Insured
6,250 Wisconsin Health and Educational Facilities Authority, 8/06 at 102.00 AAA 6,734,060
Revenue Bonds, Sinai Samaritan Medical Center, Inc.,
Series 1996, 5.750%, 8/15/16 - MBIA Insured
5,000 Wisconsin Health and Educational Facilities Authority, 8/05 at 102.00 AAA 5,355,350
Revenue Bonds, Mercy Health System Corporation,
Series 1995, 6.125%, 8/15/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 770,638 Total Long-Term Investments (cost $739,279,338) - 149.2% 776,589,031
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 12,765,522
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.7)% (268,900,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 520,454,553
====================================================================================================================
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.
39
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.4%
$ 5,310 Athens, Alabama, Water and Sewer Revenue Warrants, 5/12 at 101.00 AAA $ 5,465,477
Series 2002, 5.300%, 5/01/32 - MBIA Insured
3,045 Hoover, Alabama, General Obligation Warrants, Series 2003, 3/12 at 101.00 AAA 3,135,771
5.000%, 3/01/20 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 11,153,700
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded to 2/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.4%
15,000 State of Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 15,258,600
Series 2002B, 5.250%, 10/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1%
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 5,027,650
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 10.2%
10,000 California State, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 A 10,294,000
Series 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,200 State of California, General Obligation Various Purpose Bonds, 9/10 at 100.00 AAA 3,369,952
5.250%, 9/01/17 - MBIA Insured
10,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 10,079,200
5.000%, 2/01/23 - MBIA Insured
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,026,100
Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum
Tax) - MBIA Insured
7,935 Los Angeles, California, Certificates of Participation, Real 4/12 at 100.00 AAA 8,128,376
Property Acquisition Program, Series 2002,
5.300%, 4/01/32 - AMBAC Insured
1,000 Los Angeles Convention and Exhibition Center Authority, 12/05 at 100.00 AAA 1,114,760
California, Certificates of Participation, Series 1985,
9.000%, 12/01/20 (Pre-refunded to 12/01/05)
7,500 Northern California Power Agency, Revenue Refunding 7/08 at 101.00 AAA 7,579,425
Bonds, Hydroelectric Project 1, Series 1998A,
5.200%, 7/01/32 - MBIA Insured
2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,456,996
Revenue Bonds, Series 2001P, 5.250%, 8/15/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.9%
1,580 Gunnison Watershed School District No. RE 1J, Gunnison No Opt. Call Aaa 1,698,721
and Saguahce Counties, Colorado, General Obligation Bonds,
Series 2004, 5.000%, 12/01/15 - FSA Insured
Sand Creek Metropolitan District, Colorado, General Obligation
Bonds, Series 2004:
1,095 5.000%, 12/01/13 - XLCA Insured No Opt. Call AAA 1,170,730
1,170 5.000%, 12/01/14 - XLCA Insured 12/13 at 100.00 AAA 1,241,768
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 16.2%
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,474,533
1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,581,646
11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,765,068
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 6,205,500
Series 2002A, 5.500%, 10/01/41 - MBIA Insured
8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 Aaa 8,731,640
Bonds, Series 2001, 5.625%, 10/01/13 (Alternative
Minimum Tax) - MBIA Insured
15,000 Miami-Dade County School Board, Florida, Certificates No Opt. Call AAA 16,223,100
of Participation, Series 2003A, 5.000%, 8/01/27 (Mandatory
put 8/01/08) - MBIA Insured
40
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
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 $ 7,760,985
5,600 5.750%, 10/01/16 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 6,095,656
10,000 5.125%, 10/01/21 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 10,183,700
2,000 5.250%, 10/01/22 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 2,051,200
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.4%
1,695 Georgia Housing and Finance Authority, Single Family 12/11 at 100.00 AAA 1,730,714
Mortgage Bonds, Series 2002B-2, 5.500%, 6/01/32
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.0%
10,000 Village of Bolingbrook, Illinois, General Obligation Bonds, 1/12 at 100.00 AAA 10,264,600
Series 2002A, 5.375%, 1/01/38 - FGIC Insured
5,000 Chicago, Illinois, General Obligation Project and Refunding
Bonds, Series 2001A, 5.500%, 1/01/38 - MBIA Insured 1/11 at 101.00 AAA 5,200,850
Chicago, Illinois, Second Lien Passenger Facility Charge Revenue
Bonds, O'Hare International Airport, Series 2001C:
4,250 5.500%, 1/01/16 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,519,960
4,485 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,749,032
4,730 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,980,312
2,930 5.500%, 1/01/19 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,075,416
3,000 Chicago, Illinois, General Airport Third Lien Revenue Refunding 1/12 at 100.00 AAA 3,239,550
Bonds, O'Hare International Airport, Series 2002A,
5.750%, 1/01/17 (Alternative Minimum Tax) - MBIA Insured
12,765 Chicago, Illinois, Revenue Bonds, Skyway Toll Bridge, 1/07 at 102.00 AAA 13,443,843
Series 1996, 5.500%, 1/01/23 - MBIA Insured
4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 AAA 4,093,160
Purpose Bonds, Series 2002, 5.000%, 12/01/21 - MBIA Insured
1,500 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aaa 1,561,575
Illinois, General Obligation Bonds, Series 2003C,
5.250%, 10/01/22 - FSA Insured
5,000 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 5,158,200
Series 2002, 5.250%, 4/01/23
2,700 University of Illinois, Certificates of Participation, 8/11 at 100.00 AAA 2,957,607
Utility Infrastructure Projects, Series 2001A, 5.000%, 8/15/20
(Pre-refunded to 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 16.6%
3,380 Evansville, Indiana, Sewage Works Revenue Refunding 7/13 at 100.00 AAA 3,478,730
Bonds, Series 2003A, 5.000%, 7/01/20 - AMBAC Insured
Indiana Bond Bank, Special Program Bonds, Hendricks County
Redevelopment District, Series 2002D:
2,500 5.375%, 4/01/23 - AMBAC Insured 4/12 at 100.00 AAA 2,607,900
7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,210,062
7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,115,290
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,148,500
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 25,505,500
Waterworks Project, Series 2002A, 5.250%, 7/01/33 -
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 2,780,450
3,810 5.750%, 7/15/20 - FGIC Insured 7/12 at 100.00 AAA 4,206,164
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 440,362
430 5.250%, 7/15/19 - FGIC Insured 7/12 at 100.00 AAA 450,846
1,675 5.400%, 7/15/23 - FGIC Insured 7/12 at 100.00 AAA 1,754,077
6,960 Valparaiso Middle Schools Building Corporation, Indiana, 1/13 at 100.00 AAA 6,986,309
First Mortgage Refunding Bonds, Series 2002,
5.000%, 7/15/24 - MBIA Insured
2,490 Whitley County Middle School Building Corporation, 7/13 at 100.00 AAA 2,589,525
Columbia City, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 1/15/18 - FSA Insured
41
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.7%
$ 3,085 City of New Orleans, Louisiana, General Obligation Refunding 9/12 at 100.00 AAA $ 3,193,098
Bonds, Series 2002, 5.125%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5%
5,000 Massachusetts, General Obligation Bonds, Consolidated 8/14 at 100.00 AAA 5,106,300
Loan, Series 2004B, 5.000%, 8/01/22 - AMBAC Insured
10,000 Massachusetts, Special Obligation Refunding Notes, No Opt. Call Aaa 10,683,100
Federal Highway Grant Anticipation Note Program,
Series 2003A, 5.000%, 12/15/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.5%
10,000 Detroit, Michigan, Sewerage Disposal System Revenue 1/10 at 101.00 AAA 11,398,400
Bonds, Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.0%
8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport Development 7/11 at 100.00 AAA 8,867,248
Program, Series 2001A, 5.250%, 7/01/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.5%
Municipal Energy Agency of Nebraska, Power Supply System
Revenue Bonds, Series 2003A:
1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,054,190
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,049,690
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.2%
9,810 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 10,029,646
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 8,895,600
Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1%
Bernards Township School District, Somerset County,
New Jersey, General Obligation Bonds, Series 2004:
2,345 5.000%, 1/01/15 - FGIC Insured 1/14 at 100.00 AAA 2,505,187
2,465 5.000%, 1/01/16 - FGIC Insured 1/14 at 100.00 AAA 2,615,217
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.2%
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,017,000
Transportation Revenue Refunding Bonds, Series 2002A,
5.000%, 11/15/30 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6%
2,435 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA 2,550,346
Mortgage Revenue Bonds, Betsy Johnson Regional Hospital
Project, Series 2003, 5.375%, 10/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 6.1%
4,725 Oregon City School District No. 62, Clackamas County, 6/14 at 100.00 AAA 5,039,969
Oregon, General Obligation Bonds, Series 2004,
5.000%, 6/15/15 - FSA Insured
State of Oregon, General Obligation Veterans Welfare Bonds,
Series 2002-82:
9,570 5.375%, 12/01/31 12/11 at 100.00 AA 9,736,422
5,465 5.500%, 12/01/42 12/11 at 100.00 AA 5,578,453
Oregon Department of Administrative Services, State Lottery
Revenue Bonds, Series 2004A:
2,970 5.000%, 4/01/16 - FSA Insured 4/14 at 100.00 AAA 3,179,712
1,615 5.000%, 4/01/17 - FSA Insured 4/14 at 100.00 AAA 1,719,555
2,085 Salem-Keizer School District No. 24J, Marion County, Oregon, 6/14 at 100.00 AAA 2,183,621
General Obligation Bonds, Series 2004, 5.000%, 6/15/18 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0%
4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 4,871,250
Bonds, Pittsburgh International Airport, Series 1997A,
5.750%, 1/01/13 (Alternative Minimum Tax) - MBIA Insured
5,000 Pennsylvania Higher Educational Facilities Authority, Revenue 7/08 at 100.00 AAA 5,175,050
Bonds, University of Pennsylvania, Series 1998,
5.500%, 7/15/38 - MBIA Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,000 Pennsylvania Higher Educational Facilities Authority, 11/13 at 100.00 AA $ 1,042,930
Revenue Bonds, Lycoming College, Series 2003-AA2,
5.250%, 11/01/16 - RAAI Insured
Philadelphia, Pennsylvania, General Obligation Bonds,
Series 2003A:
3,090 5.250%, 2/15/14 - XLCA Insured 2/13 at 100.00 AAA 3,343,967
1,000 5.250%, 2/15/15 - XLCA Insured 2/13 at 100.00 AAA 1,076,080
Philadelphia Municipal Authority, Pennsylvania, Lease Revenue
Bonds, Series 2003B:
3,540 5.250%, 11/15/16 - FSA Insured 11/13 at 100.00 AAA 3,793,712
2,000 5.250%, 11/15/18 - FSA Insured 11/13 at 100.00 AAA 2,124,060
1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,017,860
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.8%
Greenville, South Carolina, Tax Increment Revenue Improvement
Bonds, Series 2003:
1,000 5.500%, 4/01/17 - MBIA Insured 4/13 at 100.00 AAA 1,095,450
2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,362,376
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 7.9%
10,000 Memphis and Shelby County Sports Authority, Inc., Tennessee, 11/12 at 100.00 AAA 10,127,200
Revenue Bonds, Memphis Arena, Series 2002A,
5.125%, 11/01/28 - AMBAC Insured
10,000 Memphis and Shelby County Sports Authority, Inc., Tennessee, 11/12 at 100.00 AAA 10,125,800
Revenue Bonds, Memphis Arena, Series 2002B,
5.125%, 11/01/29 - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 15,545,549
Facilities Bonds, Second Program, Series 2002A,
5.250%, 5/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 27.0%
3,500 Dallas-Fort Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,783,605
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 10,191,100
Limited Tax Bonds, Series 2002, 5.375%, 8/15/32 -
MBIA Insured
3,645 Galveston, Texas, General Obligation Refunding Bonds, No Opt. Call AAA 3,799,657
Series 2001A, 5.250%, 5/01/21 - AMBAC Insured
Harris County Health Facilities Development Corporation, Texas,
Thermal Utility Revenue Bonds, TECO Project, Series 2003:
2,240 5.000%, 11/15/16 - MBIA Insured 11/13 at 100.00 AAA 2,337,552
2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,440,863
13,000 Houston Area Water Corporation, Texas, City of Houston 3/12 at 100.00 AAA 13,074,880
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, 11/09 at 101.00 AAA 2,546,400
Revenue Bonds, Rice University Project, Series 1999A,
5.375%, 11/15/29
4,345 San Antonio, Texas, Water System Senior Lien Revenue 5/12 at 100.00 AAA 4,718,062
Refunding Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured
9,145 State of Texas, General Obligation Bonds, Veterans Housing 6/12 at 100.00 Aa1 9,340,886
Assistance Program Fund II, Series 2002A-1,
5.250%, 12/01/22 (Alternative Minimum Tax)
7,020 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 7,081,004
Residential Mortgage Revenue Bonds, Series 2001A,
5.350%, 7/01/33 (Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Bonds, Texas
Southern University Financing System, Series 2002:
3,520 5.125%, 11/01/20 - MBIA Insured 5/12 at 100.00 Aaa 3,639,469
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,625,213
8,840 Texas Department of Housing and Community Affairs, 3/12 at 100.00 AAA 9,011,319
Single Family Mortgage Bonds, Series 2002B,
5.550%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured
Texas Student Housing Authority, Student Housing Revenue Bonds,
Austin, Texas Project, Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 9,876,674
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,276,129
43
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA $ 5,288,400
Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17
Williamson County, Texas, General Obligation Bonds,
Series 2002:
3,500 5.200%, 2/15/21 - FSA Insured 2/12 at 100.00 AAA 3,625,755
3,000 5.250%, 2/15/22 - FSA Insured 2/12 at 100.00 AAA 3,103,440
7,340 5.250%, 2/15/23 - FSA Insured 2/12 at 100.00 AAA 7,564,090
5,000 5.250%, 2/15/25 - FSA Insured 2/12 at 100.00 AAA 5,116,700
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.4%
7,675 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,304,427
Bonds, Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 -
MBIA Insured
6,600 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 6,971,712
Bonds, Columbia Generating Station, Series 2002B,
5.350%, 7/01/18 - FSA Insured
4,200 Lake Washington School District No. 414, King County, 12/14 at 100.00 AAA 4,431,294
Washington, General Obligation Bonds, Series 2004,
5.000%, 12/01/16 - FSA Insured
2,500 Port of Seattle, Washington, Revenue Refunding Bonds, 11/12 at 100.00 AAA 2,731,700
Series 2002D, 5.750%, 11/01/15 (Alternative Minimum
Tax) - FGIC Insured
2,200 Everett School District No. 2, Snohomish County, 12/13 at 100.00 AAA 2,299,616
Washington, General Obligation Bonds, Series 2003B,
5.000%, 6/01/17 - FSA Insured
3,255 Thurston and Pierce Counties School District, Washington, 6/13 at 100.00 Aaa 3,496,847
General Obligation Bonds, Yelm Community Schools,
Series 2003, 5.250%, 12/01/16 - FSA Insured
Washington State Economic Development Finance Authority,
Wastewater Revenue Bonds, LOTT Project, Series 2002:
2,000 5.500%, 6/01/17 - AMBAC Insured 6/12 at 100.00 Aaa 2,172,060
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,425,946
15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 14,909,100
Bonds, Harrison Memorial Hospital, Series 1998,
5.000%, 8/15/28 - AMBAC Insured
10,000 Washington State Healthcare Facilities Authority, Revenue 10/11 at 100.00 Aaa 10,036,300
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 5,306,385
General Obligation Bonds, Series 2002, 5.000%, 12/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.2%
6,205 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 6,316,193
Home Ownership Revenue Bonds, Series 2002E,
5.250%, 9/01/22 (Alternative Minimum Tax)
11,950 State of Wisconsin, Transportation Revenue Refunding 7/12 at 100.00 AAA 12,519,175
Bonds, Series 2002-1, 5.125%, 7/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 652,050 Total Long-Term Investments (cost $655,863,484) - 149.9% 676,988,779
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 7,544,650
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.6)% (233,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 451,533,429
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
applicable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
applicable to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities (also ensuring the timely payment of
principal and interest), or (ii) 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.
See accompanying notes to financial statements.
44
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
Portfolio of
INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 9.0%
$ 5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 $ 5,321,355
Revenue Bonds, Helen Keller Hospital, Series 2003,
5.750%, 6/01/27
3,100 Huntsville Health Care Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,260,611
Series 1998A, 5.400%, 6/01/22 - MBIA Insured
2,000 Huntsville, Alabama, Public Building Authority Lease Revenue 10/12 at 101.00 AAA 2,003,640
Bonds, Municipal Justice and Public Safety Center,
Series 2002, 5.000%, 10/01/29 - MBIA Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 6,839,862
Improvement Warrants, Series 2002D, 5.000%, 2/01/32
(Pre-refunded to 8/01/12) - FGIC Insured
1,750 Montgomery, Alabama, General Obligation Warrants, 5/12 at 101.00 AAA 1,795,290
Series 2003, 5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Warrants, 7/13 at 100.00 Aaa 4,722,570
Series 2003, 5.500%, 7/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.8%
10,000 Maricopa County, Arizona, Pollution Control Corporation 11/12 at 100.00 AAA 10,068,000
Revenue Bonds, Arizona Public Service Company Palo
Verde Project, Series 2002A, 5.050%, 5/01/29 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 29.4%
13,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 13,722,345
5.250%, 4/01/30 - XLCA Insured
7,500 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 7,406,775
5.000%, 4/01/31 - AMBAC Insured
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 26,280,801
Department of General Services, Capital East End,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
2,910 Cathedral City, California, Public Financing Authority, 8/12 at 102.00 AAA 2,915,558
Tax Allocation Bonds, Housing Set-Aside, Series 2002D,
5.000%, 8/01/26 - MBIA Insured
2,500 Irvine, California, Public Facilities and Infrastructure Authority, 9/04 at 103.00 AAA 2,483,000
Assessment Revenue Bonds, Series 2003C, 5.000%, 9/02/23 -
AMBAC Insured
4,000 Montara Sanitary District, California, General Obligation Bonds, 8/11 at 101.00 AAA 4,007,040
Series 2003, 5.000%, 8/01/28 - FGIC Insured
2,000 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 1,992,900
Hydroelectric Project 1, Series 1998A, 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 1,194,772
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,313,483
1,210 Redding, California, Joint Power Financing Authority, Lease 3/13 at 100.00 AAA 1,222,814
Revenue Bonds, Capital Projects, Series 2003A,
5.000%, 3/01/23 - AMBAC Insured
3,750 Sacramento Municipal Utility District, California, Electric Revenue 8/13 at 100.00 AAA 3,756,638
Bonds, Series 2003R, 5.000%, 8/15/28 - MBIA Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,502,685
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 -
FSA Insured
3,000 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 2,978,670
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/32 - MBIA Insured
1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 AAA 1,051,297
Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured
6,300 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 6,285,447
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
45
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8%
Bowles Metropolitan District, Colorado, General Obligation
Bonds, Series 2003:
$ 4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA $ 4,643,828
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 3,981,000
1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 1,481,697
Charter School Revenue Bonds, Peak to Peak Charter
School, Series 2004, 5.250%, 8/15/24 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.1%
3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 3,045,810
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.4%
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 3,827,410
Tax Revenue Bonds, Second Indenture Series 2002,
5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.9%
1,310 Cook County School District No. 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 1,373,797
General Obligation Refunding Bonds, Series 2003B,
5.250%, 12/01/21 - FSA Insured
Cook County School District No. 145 Arbor Park, Illinois,
General Obligation Bonds, Series 2004:
3,285 5.125%, 12/01/20 (WI, settling 5/13/04) - FSA Insured 12/14 at 100.00 Aaa 3,427,273
2,940 5.125%, 12/01/23 (WI, settling 5/13/04) - FSA Insured 12/14 at 100.00 Aaa 3,015,264
2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 2,529,750
Forest Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.8%
2,500 Evansville, Indiana, Sewage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 2,533,800
Series 2003A, 5.000%, 7/01/23 - AMBAC Insured
2,190 Indiana Bond Bank, Common School Fund, Advance Purchase 8/13 at 100.00 AAA 2,256,094
Funding Bonds, Series 2003B, 5.000%, 8/01/19 - MBIA Insured
1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 AAA 1,014,350
5.000%, 8/01/22 - FGIC Insured
IPS Multi-School Building Corporation, Indiana, First Mortgage
Bonds, Series 2003:
11,020 5.000%, 7/15/19 - MBIA Insured 7/13 at 100.00 AAA 11,368,012
6,000 5.000%, 7/15/20 - MBIA Insured 7/13 at 100.00 AAA 6,162,240
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.4%
6,250 Kansas Development Finance Authority, Revenue Bonds, 4/13 at 102.00 AAA 6,378,125
Board of Regents, Scientific Research and Development
Facilities Projects, Series 2003C, 5.000%, 10/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5%
1,325 Commonwealth of Kentucky, State Property and Buildings 8/13 at 100.00 AAA 1,346,995
Commission, Project No. 77 Revenue and Refunding Bonds,
Series 2003, 5.000%, 8/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2%
5,785 City of New Orleans, Louisiana, General Obligation Refunding 12/12 at 100.00 AAA 5,967,864
Bonds, Series 2002, 5.300%, 12/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.9%
9,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 9,032,940
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27 -
FGIC Insured
1,125 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 A1 1,139,085
Bonds, Middlesex School, Series 2003, 5.125%, 9/01/23
3,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 2,964,090
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 11.9%
6,130 Detroit, Michigan, Water Supply System Senior Lien Revenue 7/13 at 100.00 AAA 6,212,878
Bonds, Series 2003A, 5.000%, 7/01/23 - MBIA Insured
4,465 City of Detroit, Michigan, Water Supply System Senior Lien 7/13 at 100.00 AAA 4,545,236
Revenue Refunding Bonds, Series 2003C, 5.000%, 7/01/22 -
MBIA Insured
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 955 Grand Rapids Community College, Kent County, Michigan, 5/13 at 100.00 AAA $ 1,018,832
General Obligation Refunding Bonds, Series 2003,
5.250%, 5/01/18 - AMBAC Insured
10,800 Michigan Strategic Fund, Resource Recovery Limited Obligation 12/12 at 100.00 AAA 10,930,788
Revenue Refunding Bonds, Detroit Edison Company,
Series 2002D, 5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, County of Wayne, State 5/11 at 100.00 AA+ 2,304,900
of Michigan, General Obligation Refunding Bonds,
Series 2001, 5.250%, 5/01/25
6,500 Wayne County, Michigan, Limited Tax General Obligation 12/11 at 101.00 AAA 6,506,435
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.8%
2,000 Metropolitan Saint Louis Sewer District, Missouri, 5/14 at 100.00 AAA 2,005,000
Wastewater System Revenue Bonds, Series 2004A,
5.000%, 5/01/34 (WI, settling 5/06/04) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MONTANA - 1.9%
5,105 Forsyth, Rosebud County, Montana, Pollution Control 3/13 at 101.00 AAA 5,118,426
Revenue Refunding Bonds, Puget Sound Energy,
Series 2003A, 5.000%, 3/01/31 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9%
5,000 Lincoln, Nebraska, Sanitary Sewer System Revenue Refunding 6/13 at 100.00 AAA 5,020,100
Bonds, Series 2003, 5.000%, 6/15/28 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.9%
2,315 Clark County, Nevada, Airport System Subordinated Lien 7/11 at 100.00 AAA 2,334,677
Revenue Bonds, Series 2001B, 5.200%, 7/01/31 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.4%
25,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 25,025,250
Revenue Refunding Bonds, Series 2002F, 5.000%, 11/15/31 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 4.5%
8,700 North Carolina Medical Care Commission, Revenue Bonds, 10/13 at 100.00 AA 8,828,064
Maria Parham Medical Center, Series 2003,
5.375%, 10/01/33 - RAAI Insured
3,000 North Carolina Infrastructure Finance Corporation, 2/14 at 100.00 AA+ 3,103,980
Certificates of Participation, Correctional Facilities,
Series 2004A, 5.000%, 2/01/19
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.9%
9,350 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 9,368,887
Series 2002A, 5.000%, 7/01/32 - MBIA Insured
1,000 Sunrise Water Authority, Oregon, Water Revenue Bonds, 3/14 at 100.00 AAA 1,037,310
Series 2004, 5.000%, 3/01/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.6%
3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 2,880,180
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
2,000 Philadelphia, Pennsylvania, Gas Works Revenue Bonds, 8/13 at 100.00 AAA 1,990,540
General Ordinance, Fourth Series 1998, 5.000%, 8/01/32 -
FSA Insured
5,000 City of Philadelphia, Pennsylvania, Water and Wastewater 8/07 at 102.00 AAA 5,038,750
Revenue Bonds, Series 1997A, 5.125%, 8/01/27 -
AMBAC Insured
13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 12,950,080
Revenue Bonds, Philadelphia School District Project,
Series 2003, 5.000%, 6/01/33 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 9.9%
5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,140,250
McLeod Regional Medical Center Project, Series 2004A,
5.250%, 11/01/23 - FSA Insured
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 2,976,570
1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,761,884
1,365 Myrtle Beach, South Carolina, Water and Sewer System 3/13 at 100.00 AAA 1,466,133
Revenue Refunding Bonds, Series 2003, 5.375%, 3/01/19 -
FGIC Insured
47
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS April 30, 2004 (Unaudited)
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 15,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa $ 15,004,500
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.2%
7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 7,976,515
Texas, General Obligation Bonds, Series 2000, 5.000%, 8/15/25
12,500 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 12,580,750
Texas, General Obligation Bonds, Series 2003,
5.125%, 2/15/31 - FSA Insured
5,515 Houston, Texas, General Obligation Refunding Bonds, 3/12 at 100.00 AAA 5,761,190
Series 2002, 5.250%, 3/01/20 - MBIA Insured
5,850 Katy Independent School District, Harris Fort Bend, and 2/12 at 100.00 AAA 6,102,135
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.125%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6%
1,500 Hampton, Virginia, Convention Center Revenue Bonds, 1/13 at 100.00 AAA 1,522,095
Series 2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.1%
4,945 Broadway Office Properties, King County, Washington, 12/12 at 100.00 AAA 4,882,792
Lease Revenue Bonds, Washington Project, Series 2002,
5.000%, 12/01/31 - MBIA Insured
5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AAA 5,261,078
Consolidated System Revenue Bonds, Series 2002C,
5.125%, 7/01/33 - AMBAC Insured
2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 Aaa 2,151,269
Revenue Bonds, Bremerton Government Center Project,
Series 2003, 5.000%, 7/01/23 - MBIA Insured
1,935 Pierce County School District No. 343, Dieringer, Washington, 6/13 at 100.00 Aaa 2,071,224
General Obligation Bonds, Series 2003 Refunding,
5.250%, 12/01/17 - FSA Insured
9,670 Washington, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AAA 9,892,894
5.000%, 12/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2%
3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,249,540
Refunding Bonds, Regional Jail Project, Series 1998A,
5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.2%
4,750 Wisconsin Health and Educational Facilities Authority, 8/08 at 102.00 AAA 4,845,570
Revenue Refunding Bonds, Wausau Hospital, Inc.,
Series 1998A, 5.125%, 8/15/20 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call AAA 3,383,670
Revenue Bonds, Meriter Hospital, Inc., Series 1992A,
6.000%, 12/01/22 - FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 A 3,530,124
Revenue Bonds, Wheaton Franciscan Services, Inc.,
Series 2003A, 5.125%, 8/15/33
4,605 Wisconsin Health and Educational Facilities Authority, 9/13 at 100.00 A- 4,624,247
Revenue Bonds, Franciscan Sisters of Christian Charity
HealthCare Ministry, Series 2003A, 5.875%, 9/01/33
------------------------------------------------------------------------------------------------------------------------------------
$ 404,700 Total Long-Term Investments (cost $405,871,399) - 154.2% 410,019,720
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - (0.1)% (137,330)
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (144,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 265,882,390
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
applicable to Preferred shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
applicable to Preferred shares) may be invested in municipal
securities that are (i) either backed by an escrow or trust
containing sufficient U.S. Government or U.S. Government
agency securities (also ensuring the timely payment of
principal and interest), or (ii) 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.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
48
Statement of
ASSETS AND LIABILITIES April 30, 2004 (Unaudited)
INSURED INSURED
INSURED INSURED PREMIER INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $847,650,896,
$1,800,766,031,
$428,710,434,
$739,279,338,
$655,863,484 and
$405,871,399,
respectively) $891,587,366 $1,911,353,491 $452,772,327 $776,589,031 $676,988,779 $410,019,720
Cash -- -- -- -- -- 2,193,430
Receivables:
Interest 12,822,981 30,330,838 7,694,085 14,195,671 9,887,565 6,261,650
Investments sold 1,375,950 2,106,791 8,460,579 5,067,230 -- --
Other assets 32,002 77,174 7,046 55,479 11,501 4,240
------------------------------------------------------------------------------------------------------------------------------------
Total assets 905,818,299 1,943,868,294 468,934,037 795,907,411 686,887,845 418,479,040
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 2,097,655 4,602,474 7,937,141 5,850,053 2,074,356 --
Payable for investments purchased -- 1,108,380 1,419,337 -- -- 8,423,947
Accrued expenses:
Management fees 467,275 982,667 242,221 409,817 186,658 107,753
Other 138,465 272,609 80,138 271,049 76,756 54,998
Preferred share dividends payable 25,944 46,238 11,342 21,939 16,646 9,952
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 2,729,339 7,012,368 9,690,179 6,552,858 2,354,416 8,596,650
------------------------------------------------------------------------------------------------------------------------------------
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 $585,088,960 $1,256,855,926 $298,243,858 $520,454,553 $451,533,429 $265,882,390
====================================================================================================================================
Common shares outstanding 38,160,827 81,138,036 19,411,049 37,353,512 29,807,822 18,512,923
====================================================================================================================================
Net asset value per Common
share outstanding (net
assets applicable to
Common shares, divided by
Common shares outstanding) $ 15.33 $ 15.49 $ 15.36 $ 13.93 $ 15.15 $ 14.36
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value
per share $ 381,608 $ 811,380 $ 194,110 $ 373,535 $ 298,078 $ 185,129
Paid-in surplus 532,408,493 1,128,874,276 269,330,308 491,866,710 423,486,894 261,493,821
Undistributed
(Over-distribution of)
net investment income 7,678,711 17,104,637 2,980,794 5,723,050 2,708,104 (318,796)
Accumulated net realized gain
(loss) from investments 683,678 (521,827) 1,676,753 (14,818,435) 3,915,058 373,915
Net unrealized appreciation
of investments 43,936,470 110,587,460 24,061,893 37,309,693 21,125,295 4,148,321
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $585,088,960 $1,256,855,926 $298,243,858 $520,454,553 $451,533,429 $265,882,390
====================================================================================================================================
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.
49
Statement of
OPERATIONS Six Months Ended April 30, 2004 (Unaudited)
INSURED INSURED
INSURED INSURED PREMIER INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 24,272,963 $ 50,185,118 $11,936,209 $ 20,548,904 $16,870,362 $10,096,014
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 2,874,785 6,048,126 1,489,571 2,520,485 2,196,192 1,333,393
Preferred shares - auction fees 396,411 847,671 200,699 335,204 290,452 179,507
Preferred shares - dividend
disbursing agent fees 24,932 34,904 14,959 24,932 14,959 9,973
Shareholders' servicing agent
fees and expenses 51,786 86,727 20,605 31,567 5,350 3,615
Custodian's fees and expenses 91,446 191,370 49,827 87,512 71,301 43,486
Directors'/Trustees' fees
and expenses 6,891 19,343 3,797 8,379 7,972 4,503
Professional fees 18,757 35,895 11,810 17,717 20,568 14,067
Shareholders' reports - printing
and mailing expenses 45,909 117,791 25,025 43,470 36,756 26,570
Stock exchange listing fees 7,959 15,195 7,784 7,716 1,296 978
Investor relations expense 34,787 81,352 22,408 19,337 32,943 22,204
Portfolio insurance expense 15,326 32,084 -- 3,366 -- --
Other expenses 28,355 46,353 16,379 20,493 16,701 11,044
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian
fee credit and
expense reimbursement 3,597,344 7,556,811 1,862,864 3,120,178 2,694,490 1,649,340
Custodian fee credit (10,464) (13,274) (8,803) (14,391) (8,337) (3,265)
Expense reimbursement -- -- -- -- (1,049,046) (670,763)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 3,586,880 7,543,537 1,854,061 3,105,787 1,637,107 975,312
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 20,686,083 42,641,581 10,082,148 17,443,117 15,233,255 9,120,702
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
FROM INVESTMENTS
Net realized gain from investments 682,831 3,779 1,699,610 1,977,830 3,916,239 375,435
Change in net unrealized
appreciation
(depreciation)
of investments (13,444,713) (30,308,019) (7,550,519) (13,333,856) (9,911,288) (3,555,376)
------------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) from investments (12,761,882) (30,304,240) (5,850,909) (11,356,026) (5,995,049) (3,179,941)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED
SHAREHOLDERS
From net investment income (1,316,175) (2,837,554) (670,838) (1,156,675) (943,943) (651,773)
From accumulated net realized
gains from investments (114,034) (149,437) (26,521) -- (140,030) (7,435)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to Common
shares from distributions
to Preferred shareholders (1,430,209) (2,986,991) (697,359) (1,156,675) (1,083,973) (659,208)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to Common
shares from operations $ 6,493,992 $ 9,350,350 $ 3,533,880 $ 4,930,416 $ 8,154,233 $ 5,281,553
====================================================================================================================================
See accompanying notes to financial statements.
50
Statement of
CHANGES IN NET ASSETS (Unaudited)
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
------------------------------ --------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 20,686,083 $ 41,802,309 $ 42,641,581 $ 86,163,989
Net realized gain from investments 682,831 1,876,817 3,779 2,436,868
Change in net unrealized appreciation (depreciation)
of investments (13,444,713) (4,019,790) (30,308,019) 11,623,684
Distributions to Preferred Shareholders:
From net investment income (1,316,175) (2,683,386) (2,837,554) (5,618,357)
From accumulated net realized gains from investments (114,034) (433,291) (149,437) (990,259)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 6,493,992 36,542,659 9,350,350 93,615,925
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (19,573,199) (37,979,535) (39,481,870) (78,840,403)
From accumulated net realized gains from investments (1,766,378) (4,511,581) (2,358,124) (10,041,988)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (21,339,577) (42,491,116) (41,839,994) (88,882,391)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 1,832,627 2,555,277 1,258,837 --
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 1,832,627 2,555,277 1,258,837 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (13,012,958) (3,393,180) (31,230,807) 4,733,534
Net assets applicable to Common shares at the beginning
of period 598,101,918 601,495,098 1,288,086,733 1,283,353,199
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $585,088,960 $598,101,918 $1,256,855,926 $1,288,086,733
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 7,678,711 $ 7,882,002 $ 17,104,637 $ 16,782,480
====================================================================================================================================
See accompanying notes to financial statements.
51
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
4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 10,082,148 $ 20,369,025 $ 17,443,117 $ 35,671,340
Net realized gain from investments 1,699,610 398,323 1,977,830 4,868,689
Change in net unrealized appreciation (depreciation)
of investments (7,550,519) 2,116,009 (13,333,856) (3,467,246)
Distributions to Preferred Shareholders:
From net investment income (670,838) (1,427,461) (1,156,675) (2,405,892)
From accumulated net realized gains from investments (26,521) (66,215) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 3,533,880 21,389,681 4,930,416 34,666,891
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (9,480,923) (18,862,625) (16,347,734) (32,051,466)
From accumulated net realized gains from investments (373,855) (674,649) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (9,854,778) (19,537,274) (16,347,734) (32,051,466)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 653,064 937,964 897,327 559,464
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions 653,064 937,964 897,327 559,464
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (5,667,834) 2,790,371 (10,519,991) 3,174,889
Net assets applicable to Common shares at the beginning of period 303,911,692 301,121,321 530,974,544 527,799,655
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $298,243,858 $303,911,692 $520,454,553 $530,974,544
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 2,980,794 $ 3,050,407 $ 5,723,050 $ 5,784,342
====================================================================================================================================
See accompanying notes to financial statements.
52
INSURED DIVIDEND INSURED TAX-FREE
ADVANTAGE (NVG) ADVANTAGE (NEA)
----------------------------- -----------------------------
FOR THE
PERIOD
11/21/02
(COMMENCEMENT
SIX MONTHS YEAR SIX MONTHS OF OPERATIONS)
ENDED ENDED ENDED THROUGH
4/30/04 10/31/03 4/30/04 10/31/03
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 15,233,255 $ 30,822,852 $ 9,120,702 $ 15,163,064
Net realized gain from investments 3,916,239 2,261,496 375,435 103,646
Change in net unrealized appreciation (depreciation)
of investments (9,911,288) 2,080,176 (3,555,376) 7,703,697
Distributions to Preferred Shareholders:
From net investment income (943,943) (1,986,953) (651,773) (1,000,298)
From accumulated net realized gains from investments (140,030) (389,279) (7,435) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 8,154,233 32,788,292 5,281,553 21,970,109
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (13,861,845) (27,721,277) (8,606,877) (14,343,267)
From accumulated net realized gains from investments (2,127,005) (3,132,797) (98,078) --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (15,988,850) (30,854,074) (8,704,955) (14,343,267)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- (1,575) 114,799 264,457,500
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- 78,606 12,612
Preferred shares offering costs -- 3,032 -- (3,084,842)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable to Common shares
from capital share transactions -- 1,457 193,405 261,385,270
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (7,834,617) 1,935,675 (3,229,997) 269,012,112
Net assets applicable to Common shares at the beginning of period 459,368,046 457,432,371 269,112,387 100,275
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of period $451,533,429 $459,368,046 $265,882,390 $269,112,387
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of period $ 2,708,104 $ 2,280,637 $ (318,796) $ (180,848)
====================================================================================================================================
See accompanying notes to financial statements.
53
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). Common shares of
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange
while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free
Advantage (NEA) are traded on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
diversified management investment companies.
Prior to the commencement of operations of Insured Tax-Free Advantage (NEA), the
Fund had no operations other than those related to organizational matters, the
initial capital contribution of $100,275 by Nuveen Advisory Corp. (the
"Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. and the
recording of the organization expenses ($11,500) and their reimbursement by
Nuveen Investments, LLC, 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, evaluations
of anticipated cash flows or collateral 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, 2004,
Insured Opportunity (NIO), Premier Insured Income (NIF) and Insured Tax-Free
Advantage (NEA) had outstanding when-issued purchase commitments of $1,108,380,
$1,419,337, and $8,423,947, respectively. 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.
54
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from 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 (including net assets applicable to Preferred
shares) in municipal securities that are covered by insurance. Each Fund may
also invest up to 20% of its net assets (including net assets applicable to
Preferred shares) in municipal securities which are either (i) backed by an
escrow or trust containing sufficient U.S. Government or U.S. Government agency
securities, or (ii) 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.
55
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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 six months ended April 30, 2004.
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 Tax-Free
Advantage (NEA). Insured Tax-Free Advantage's (NEA) share of Common share
offering costs ($440,201) was recorded as a reduction of the proceeds from the
sale of Common shares.
Costs incurred by Insured Tax-Free Advantage (NEA) in connection with the
offering of Preferred shares ($3,084,842) were recorded as a reduction to
paid-in surplus.
Indemnifications
Under the Funds' organizational documents, its Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred.
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
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
---------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- --
Shares issued to shareholders
due to reinvestment
of distributions 109,785 156,328 77,090 -- 39,908 57,779
---------------------------------------------------------------------------------------------------------
109,785 156,328 77,090 -- 39,908 57,779
=========================================================================================================
Preferred shares sold -- -- -- -- -- --
=========================================================================================================
56
INSURED INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA)
------------------------ ------------------------ ----------------------------
FOR THE
PERIOD
11/21/02
(COMMENCEMENT
SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS OF OPERATIONS)
ENDED ENDED ENDED ENDED ENDED THROUGH
4/30/04 10/31/03 4/30/04 10/31/03 4/30/04 10/31/03
--------------------------------------------------------------------------------------------------------------
Common shares:
Shares sold -- -- -- -- -- 18,500,000
Shares issued to shareholders
due to reinvestment
of distributions 60,649 38,904 -- -- 5,076 847
--------------------------------------------------------------------------------------------------------------
60,649 38,904 -- -- 5,076 18,500,847
==============================================================================================================
Preferred shares sold -- -- -- -- -- 5,760
==============================================================================================================
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the six months ended April 30, 2004, 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 $25,141,236 $38,127,341 $39,480,318 $41,021,620 $64,598,683 $43,866,344
Sales and maturities 21,455,570 29,915,339 37,551,214 33,933,606 65,663,581 36,937,115
==========================================================================================================
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, 2004, 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 $847,332,616 $1,800,220,461 $428,691,714 $739,261,701 $655,788,523 $405,859,296
===============================================================================================================
57
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
Gross unrealized appreciation and gross unrealized depreciation of investments
at April 30, 2004, 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 $45,593,883 $114,660,871 $25,267,254 $39,948,290 $23,824,223 $4,683,848
Depreciation (1,339,133) (3,527,841) (1,186,641) (2,620,960) (2,623,967) (523,424)
-------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $44,254,750 $111,133,030 $24,080,613 $37,327,330 $21,200,256 $4,160,424
===================================================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2003, the Funds' last fiscal year end, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------
Undistributed net
tax-exempt income $10,441,828 $22,381,199 $4,603,021 $8,407,682 $4,542,562 $1,252,401
Undistributed net
ordinary income * 264,316 78,388 -- 66,600 2,266,382 104,003
Undistributed net long-term
capital gains 1,878,637 2,503,130 398,819 -- 758 --
==============================================================================================================
* 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 fiscal year ended October 31,
2003, the Funds' last fiscal year end, was designated for purposes of the
dividends paid deduction as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
--------------------------------------------------------------------------------------------------------------
Distributions from net
tax-exempt income $40,502,631 $84,020,174 $20,270,539 $34,382,914 $29,729,306 $13,903,084
Distributions from net
ordinary income * 538,152 410,238 22,665 -- 3,522,076 --
Distributions from net
long-term
capital gains 4,406,720 11,032,247 740,863 -- -- --
==============================================================================================================
* Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
At October 31, 2003, the Funds' last fiscal year end, Insured Premium Income 2
(NPX) had an unused capital loss carryforward of $16,777,857 available for
federal income tax purposes to be applied against future capital gains, if any.
If not applied $1,449,876 and $15,327,981 of the carryforward will expire in
2004 and 2008, respectively.
58
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
================================================================================
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 or its affiliates.
As approved by the Board of Directors/Trustees, a complex-wide fee schedule for
all Funds managed by the Advisor and its affiliates will go into effect on
August 1, 2004. This complex-wide fee schedule is expected to marginally
decrease the rate at which management fees are to be paid by the Funds. Under no
circumstances will the complex-wide fee schedule result in an increase in the
rate at which management fees would be paid by the Funds if the complex-wide fee
schedule were not implemented.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any
portion of its fees and expenses beyond March 31, 2012.
59
Notes to
FINANCIAL STATEMENTS (Unaudited) (continued)
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.
6. INVESTMENT COMPOSITION
At April 30, 2004, 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% 6% 9% 2%
Healthcare 16 10 15 11 5 14
Housing/Multifamily 7 3 4 7 -- --
Housing/Single Family 1 5 1 1 4 --
Tax Obligation/General 13 8 17 11 25 27
Tax Obligation/Limited 11 13 13 16 17 30
Transportation 21 20 17 12 18 7
U.S. Guaranteed 13 19 19 10 4 2
Utilities 13 14 7 18 6 11
Water and Sewer 5 5 3 8 12 7
Other -- -- 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), 91% for Insured Dividend
Advantage (NVG) and 88% for Insured Tax-Free Advantage (NEA)). Such insurance or
escrow, however, does not guarantee the market value of the municipal securities
or the value of any of the Funds' shares.
For additional information regarding each investment security, refer to the
Portfolio of Investments of each Fund.
60
7. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on June 1, 2004, to shareholders of record on
May 15, 2004, 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 $.0730 $.0775 $.0775
=======================================================================================================
Swap Transactions
On June 7, 2004 and June 9, 2004, Insured Tax-Free Advantage (NEA) entered into
forward starting swap transactions in the notional amounts of 10,000,000 and
30,000,000, respectively, for the purpose of hedging the Fund's portfolio
duration. The swap transactions will be marked to market daily with the
corresponding unrealized gain or loss reflected in the Fund's NAV.
61
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:
2004(c) $15.72 $ .54 $ (.34) $(.03) $ -- $ .17 $ (.51) $(.05) $ (.56)
2003 15.87 1.10 (.05) (.07) (.01) .97 (1.00) (.12) (1.12)
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)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 15.89 .53 (.38) (.03) -- .12 (.49) (.03) (.52)
2003 15.83 1.06 .17 (.07) (.01) 1.15 (.97) (.12) (1.09)
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)
PREMIER INSURED
INCOME (NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 15.69 .52 (.31) (.03) -- .18 (.49) (.02) (.51)
2003 15.59 1.05 .13 (.07) -- 1.11 (.98) (.03) (1.01)
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)
INSURED PREMIUM
INCOME 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 14.24 .47 (.31) (.03) -- .13 (.44) -- (.44)
2003 14.17 .96 .03 (.06) -- .93 (.86) -- (.86)
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)
INSURED DIVIDEND
ADVANTAGE (NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 15.41 .51 (.20) (.03) -- .28 (.47) (.07) (.54)
2003 15.35 1.03 .15 (.07) (.01) 1.10 (.93) (.11) (1.04)
2002(a) 14.33 .55 1.10 (.05) -- 1.60 (.47) -- (.47)
INSURED TAX-FREE
ADVANTAGE (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 14.54 .49 (.16) (.04) -- .29 (.47) (.01) (.48)
2003(b) 14.33 .82 .42 (.05) -- 1.19 (.78) -- (.78)
====================================================================================================================================
Total Returns
---------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
==========================================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) $ -- $15.33 $14.7100 (7.14)% 1.01%
2003 -- 15.72 16.3900 12.92 6.27
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)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) -- 15.49 14.1800 (6.34) .66
2003 -- 15.89 15.6400 10.22 7.51
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)
PREMIER INSURED
INCOME (NIF)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) -- 15.36 14.2300 (5.29) 1.06
2003 -- 15.69 15.5100 7.84 7.28
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)
INSURED PREMIUM
INCOME 2 (NPX)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) -- 13.93 12.7300 (7.07) .83
2003 -- 14.24 14.1200 8.84 6.70
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)
INSURED DIVIDEND
ADVANTAGE (NVG)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) -- 15.15 13.7200 (4.02) 1.72
2003 -- 15.41 14.8100 6.10 7.37
2002(a) (.11) 15.35 14.9600 2.84 10.44
INSURED TAX-FREE
ADVANTAGE (NEA)
------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) .01 14.36 13.5100 (5.75) 1.92
2003(b) (.20) 14.54 14.7900 3.87 6.98
==========================================================================================
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:
2004(c) $ 585,089 1.19%* 6.82%* 1.18%* 6.83%* 2%
2003 598,102 1.20 6.93 1.20 6.94 14
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
INSURED OPPORTUNITY (NIO)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 1,256,856 1.16* 6.54* 1.16* 6.54* 2
2003 1,288,087 1.17 6.67 1.16 6.68 21
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
PREMIER INSURED
INCOME (NIF)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 298,244 1.20* 6.50* 1.20* 6.51* 8
2003 303,912 1.22 6.66 1.21 6.68 25
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
INSURED PREMIUM
INCOME 2 (NPX)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 520,455 1.16* 6.47* 1.15* 6.47* 4
2003 530,975 1.17 6.68 1.16 6.69 31
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
INSURED DIVIDEND
ADVANTAGE (NVG)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 451,533 1.15* 6.05* .70* 6.50* 9
2003 459,368 1.17 6.22 .72 6.67 25
2002(a) 457,432 1.10* 5.71* .61* 6.20* 22
INSURED TAX-FREE
ADVANTAGE (NEA)
----------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2004(c) 265,882 1.19* 6.11* .70* 6.59* 9
2003(b) 269,112 1.12* 5.52* .65* 6.00* 72
============================================================================================================================
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:
2004(c) $318,000 $25,000 $70,998
2003 318,000 25,000 72,021
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
INSURED OPPORTUNITY (NIO)
-----------------------------------------------------------------------
Year Ended 10/31:
2004(c) 680,000 25,000 71,208
2003 680,000 25,000 72,356
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
PREMIER INSURED
INCOME (NIF)
-----------------------------------------------------------------------
Year Ended 10/31:
2004(c) 161,000 25,000 71,311
2003 161,000 25,000 72,191
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
INSURED PREMIUM
INCOME 2 (NPX)
-----------------------------------------------------------------------
Year Ended 10/31:
2004(c) 268,900 25,000 73,387
2003 268,900 25,000 74,365
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
INSURED DIVIDEND
ADVANTAGE (NVG)
-----------------------------------------------------------------------
Year Ended 10/31:
2004(c) 233,000 25,000 73,448
2003 233,000 25,000 74,288
2002(a) 233,000 25,000 74,081
INSURED TAX-FREE
ADVANTAGE (NEA)
-----------------------------------------------------------------------
Year Ended 10/31:
2004(c) 144,000 25,000 71,160
2003(b) 144,000 25,000 71,721
=======================================================================
* 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 at net asset value,
reinvested capital gains distributions at net asset value, 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 21, 2002 (commencement of operations) through
October 31, 2003.
(c) For the six months ended April 30, 2004.
See accompanying notes to financial statements.
62-63 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.
64
Fund
INFORMATION
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
Anne E. Impellizzeri*
William L. Kissick*
Thomas E. Leafstrand*
Peter R. Sawers*
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Sheila W. Wellington*
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
Chapman and Cutler LLP
Chicago, IL
INDEPENDENT AUDITORS
Ernst & Young LLP
Chicago, IL
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling Nuveen Investments at (800) 257-8787; and (ii)
on the Commission's website at http://www.sec.gov.
POLICY CHANGE
On February 25, 2004, the Board approved policies that would allow NVG and NEA
at the discretion of the Adviser, to engage in certain types of derivative
transactions for the purpose of hedging interest rate risk. There is no
guarantee that the Adviser will cause a Fund to enter into such transactions. If
a Fund were to engage in hedging, there is no guarantee that such hedging will
be successful.
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.
----------
*Director/Trustee will be retiring on June 30, 2004.
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 purchased during the six-months ended April 30, 2004. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
65
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 $100 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-0404D
ITEM 2. CODE OF ETHICS.
Not applicable to this filing.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to this filing.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to this filing.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to this filing.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable at this time.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to this filing.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable at this time.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
In the event of a vacancy on the Board, the nominating and governance committee
receives suggestions from various sources, including shareholders, as to
suitable candidates. Suggestions should be sent in writing to Lorna Ferguson,
Vice President for Board Relations, Nuveen Investments, 333 West Wacker Drive,
Chicago, IL 60606. The nominating and governance committee sets appropriate
standards and requirements for nominations for new directors and reserves the
right to interview all candidates and to make the final selection of any new
directors.
ITEM 10. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of this report that includes the disclosure
required by this paragraph, based on their evaluation of the controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (the "Exchange Act")(17 CFR
240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal half-year (the registrant's second fiscal half-year in the case
of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
ITEM 11. EXHIBITS.
File the exhibits listed below as part of this Form.
(a)(1) 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 to
this filing.
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT
attached hereto.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons: Not applicable
at this time.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act,
provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR
270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR
240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished
pursuant to this paragraph will not be deemed "filed" for purposes of Section 18
of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of
that section. Such certification will not be deemed to be incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange Act,
except to the extent that the registrant specifically incorporates it by
reference. Ex-99.906 CERT attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Nuveen Insured Dividend Advantage Municipal Fund
-----------------------------------------------------------
By (Signature and Title)* /s/ Jessica R. Droeger
----------------------------------------------
Jessica R. Droeger
Vice President and Secretary
Date: July 8, 2004
-------------------------------------------------------------------
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, 2004
-------------------------------------------------------------------
By (Signature and Title)* /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(Principal Financial Officer)
Date: July 8, 2004
-------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.