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 811-21213
---------------------
Nuveen Insured Tax-Free Advantage Municipal Fund
------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Jessica R. Droeger
Nuveen Investments
333 West Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (312) 917-7700
-------------------
Date of fiscal year end: October 31
------------------
Date of reporting period: October 31, 2005
------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
ANNUAL REPORT October 31, 2005
Nuveen Investments
Municipal Exchange-Traded
Closed-End Funds
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
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DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S
WHAT YOU KEEP.(R)
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Photo: Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
Chairman's
LETTER TO SHAREHOLDERS
Once again, I am pleased to report that over the 12-month period covered by this
report your Fund continued to provide you with attractive monthly tax-free
income. For more details about the management strategy and performance of your
Fund, please see the Portfolio Manager's Comments and Performance Overview
sections of this report.
Given recent reports of a strengthening economy, some market commentators are
speculating about whether longer-term interest rates will soon begin to rise
substantially, mirroring the rise that has taken place in shorter-term rates. If
longer-term rates do begin to rise significantly, some have suggested that this
would be a signal to begin selling your holdings of fixed-income investments.
"IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL
INVESTMENT RISK OVER THE LONG TERM."
Nobody knows what the market will do in the future or what investments will turn
out to be tomorrow's best performers. But from our experience, we do know that a
well-balanced portfolio, structured and carefully monitored with the help of a
trusted investment professional, can be an important component in helping you
achieve your long-term financial goals. In fact, a well-diversified portfolio
may actually help to reduce your overall investment risk over the long term.
That is one reason why we believe that a municipal bond investment like your
Fund can be an important building block in a comprehensive investment program
designed to perform well in a variety of market conditions.
As an added convenience for you, I urge you to 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 - see the inside front cover of this
report for instructions.
Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of
Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a
substantial portion of its stake in Nuveen. More recently, St. Paul sold the
balance of its shares to Nuveen Investments or to others. Please be assured that
these transactions only affect Nuveen's corporate structure, and they do not
have any impact on the investment objectives or management of your Fund.
At Nuveen Investments, our mission continues to be to assist you and your
financial advisor by offering investment services and products that can help you
to secure your financial objectives. We are grateful that you have chosen us as
a partner as you pursue your financial goals, and we look forward to continuing
to earn your trust in the months and years ahead.
Sincerely,
/s/ Timothy R. Schwertfeger
Timothy R. Schwertfeger
Chairman of the Board
December 15, 2005
Nuveen Investments National Insured Municipal Exchange-Traded
Closed-End Funds
NQI, NIO, NIF, NPX, NVG, NEA
Portfolio Manager's
COMMENTS
Portfolio manager Dan Solender discusses the economic and municipal market
environments, key investment strategies and the annual performance of these six
insured Funds. With 13 years of investment experience, including 9 at Nuveen,
Dan has managed these Funds since May 2004.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH
REPORTING PERIOD ENDED OCTOBER 31, 2005?
Between November 1, 2004, and October 31, 2005, the Federal Reserve implemented
eight 0.25% increases in the closely-watched fed funds rate. These increases,
which were aimed at controlling the pace of inflation, raised this short-term
target rate to 3.75% from 1.75%. (On November 1, 2005, and December 13, 2005,
the fed funds rate was increased by 0.25% to reach 4.25%.) Over this same
12-month period, shorter-term municipal market rates also rose.
Longer-term yields declined throughout much of this period before rising toward
the end of the fiscal year. The yield on the benchmark 10-year U.S. Treasury
note ended October 2005 at 4.56%, compared with 4.03% one year earlier.
Longer-term yields in the municipal market followed a similar pattern, with the
yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of
longer-term municipal market rates, ending the reporting period at 5.21%, an
increase of 24 basis points from October 31, 2004. Together, the steady rise in
shorter-term rates and the much more modest increase in longer rates over this
period produced an overall flattening of the yield curve, which generally led to
better relative performance for bonds with longer effective maturities and
poorer returns for bonds with shorter maturities or short call dates.
The economy continued to improve over the 12-month period. After expanding at an
annualized rate of 3.3% in the fourth quarter of 2004, the U.S. gross domestic
product (GDP) grew by annualized rates of 3.8% in the first quarter of 2005,
3.3% in the second quarter and 3.8% in the third quarter. The overall employment
picture showed some improvement, with national unemployment at 5.0% in October
2005, down from 5.5% in October 2004. However, the 4.3% year-over-year increase
in the Consumer Price Index as of October 2005 raised some inflation concerns.
Over the 12 months ended October 2005, municipal bond new issue supply
nationwide remained strong, as $363.4 billion in new securities came to market.
A major factor
4
behind this strong supply was the flattening yield curve, which made advance
refundings more economically attractive for many issuers. (Advance refundings,
also known as pre-refundings or refinancings, occur when an issuer sells new
bonds and uses the proceeds to fund the principal and interest payments of
older, previously issued bonds that carry a higher coupon rate. This process
usually results in lower total borrowing costs for bond issuers.) Between
January and October 2005, pre-refunding volume was nearly 50% higher than during
the same period in 2004, as issuers sought to take advantage of the current
interest rate environment.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS DURING THE 12 MONTHS ENDED
OCTOBER 31, 2005?
As short-term interest rates rose during this reporting period and the yield
curve flattened, we believed that positioning the Funds strategically on the
yield curve became increasingly important. As part of this effort, we took
proceeds from called, matured, or sold holdings and reinvested them primarily in
bonds that mature in 15 to 20 years. Among the bonds we sold were those with
shorter durations1, including pre-refunded bonds and bonds priced to short call
dates. These securities tended to underperform longer duration bonds in the
interest rate environment of the past 12 months. The longer maturities of the
bonds we added to the Funds' portfolios enabled us to maintain the Funds'
durations within our desired range and generally made positive contributions to
their performance during this period. Selling shorter duration bonds and
reinvesting further out on the yield curve also helped to improve the Funds'
overall call protection.
Overall, the increased municipal supply during this period, especially in the
insured sector, provided additional opportunities to find the types of bonds we
were seeking. While our main focus was on the 15 - 20 year part of the yield
curve, we also kept an opportunistic eye on all types of issuance that we
believed could add value to the Funds' portfolios, including bonds with slightly
longer maturities (20 to 25 years). Another area of emphasis for these Funds was
purchasing credits from states like California and New York, where state income
taxes are relatively higher. This generally results in greater demand for
municipal bonds in these states, providing a measure of support for bond prices
and additional liquidity for the Funds' portfolio activity. We also focused on
bonds where we believed the underlying credit offered higher quality, finding
value in the general obligation, limited tax obligation, and water and sewer
sectors.
1 Duration is a measure of a bond's price sensitivity as interest rates
change, with longer duration bonds displaying more sensitivity to these
changes than bonds with shorter durations.
5
In NVG and NEA, we used forward interest rate swaps, a type of derivative
financial instrument, as part of our duration management strategies. As
discussed in our last shareholder report, we began using these swaps in late
2004 in an effort to reduce some of the interest rate risk in these two Funds.
These hedges were not an attempt to profit from correctly predicting the timing
and direction of interest rate movements. Instead, our sole objective was to
reduce the durations of these Funds without having a negative impact on their
income streams or common share dividends over the short term. We believe the
hedging strategy was effective in achieving the intended goal of helping to
reduce NVG's net asset value (NAV) volatility, and in June 2005 we removed the
hedge from this Fund. The hedge on NEA was reduced, but not eliminated, as of
October 31, 2005. During this reporting period, the hedges had a negative impact
on the performance of NEA and, to a lesser extent, NVG. This was due to the
decline of long-term interest rates over much of the period, which resulted in a
decline in the value of the hedges as the value of the Funds' portfolios rose.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as for comparative indexes and
averages, are presented in the accompanying table.
TOTAL RETURNS ON NET ASSET VALUE*
For periods ended 10/31/05
1-YEAR 5-YEAR 10-YEAR
--------------------------------------------------------------------------------
NQI 3.09% 7.74% 6.39%
--------------------------------------------------------------------------------
NIO 2.21% 7.54% 6.36%
--------------------------------------------------------------------------------
NIF 2.16% 7.35% 6.17%
--------------------------------------------------------------------------------
NPX 2.14% 7.43% 6.52%
--------------------------------------------------------------------------------
NVG 2.93% NA NA
--------------------------------------------------------------------------------
NEA 4.33% NA NA
--------------------------------------------------------------------------------
Lehman Brothers
Insured Municipal
Bond Index2 2.43% 6.26% 6.01%
--------------------------------------------------------------------------------
Lipper Insured
Municipal Debt
Funds Average3 2.93% 6.64% 5.72%
--------------------------------------------------------------------------------
*Annualized
Past performance is not predictive of future results. Current performance may be
higher or lower than the data shown. Returns do not reflect the deduction of
taxes that shareholders may have to pay on Fund distributions or upon the sale
of Fund shares.
For additional information, see the individual Performance Overview for your
Fund in this report.
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 Brothers index do not reflect any expenses.
3 The Lipper Insured 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: 1 year, 26 funds; 5 years, 21 funds; and 10
years, 18 funds. Fund and Lipper returns assume reinvestment of dividends.
6
For the 12 months ended October 31, 2005, the total returns on NAV for NQI, NVG
and NEA exceeded the return on the Lehman Brothers Insured Municipal Bond Index,
while NIO, NIF and NPX trailed this measure. NQI and NEA also outperformed the
average return for their Lipper insured peer group, while NVG matched this
return and NIO, NIF and NPX underperformed the Lipper peer group average for the
period.
One of the factors affecting the 12-month performance of these Funds relative to
that of the unleveraged Lehman Brothers index was the Funds' use of financial
leverage. Leveraging can provide opportunities for enhanced income for common
shareholders when short-term interest rates remain below the yields of the bonds
purchased for the Funds' portfolios. This continued to be the case during these
12 months. At the same time, leveraging can add volatility to a Fund's NAV and
share price, and can act to constrain overall Fund performance during periods
when interest rates rise. This was evident during this reporting period.
Essentially, the positive impact of leverage on net income during the 12-month
period was roughly offset by the negative impact that leverage had on the Fund's
NAVs.
As noted earlier, the municipal market yield curve flattened over the course of
this reporting period, as short-term interest rates rose dramatically and
longer-term interest rates rose more modestly. As a result, longer maturity
bonds generally performed better than securities with shorter maturities.
Heavier exposure to the longer end of the yield curve helped the returns of NQI,
NVG and NEA, while the performances of NIO, NIF, and NPX were hurt by their
relatively greater exposure to the shorter end of the curve, including bonds
with maturities of five years or less and bonds pre-refunded to short call dates
(i.e., less than 10 years). One of our main objectives throughout this period
was to reduce the Funds' exposures to these shorter bonds and reinvest in bonds
in the 15-to 20-year part of the yield curve.
Another factor for the relative performance of these Funds when compared with
the Lehman Brothers index was their relatively light weightings in zero coupon
bonds. These bonds do not make periodic interest payments and typically have
very long durations and maturities. Zero coupon bonds in the Lehman Brothers
Insured Municipal Bond Index outperformed the general market by 130 basis points
over the 12 months ended October 31, 2005. Zero coupon bonds helped the return
of NQI relative to the performance of the other Funds. NIF and NPX held very few
zero coupon bonds.
7
NEA, which can invest up to 20% of its assets in uninsured investment-grade
quality securities, benefited from its allocations of lower-quality credits
during this period, as these bonds generally outperformed higher-rated credits.
This was largely the result of the interest rate environment during this time,
as investor demand for the higher yields typically associated with lower-quality
bonds supported the value of these bonds. As of October 31, 2005, NEA held 1% of
its portfolio in bonds rated BBB and 4% in bonds in bonds rated A. Among the
lower-rated credits making contributions to NEA's total return were several
hospital holdings, as the healthcare sector ranked second in terms of
performance among the Lehman municipal revenue sectors for the period. NVG,
which also can invest in uninsured securities, did not hold any bonds rated
below AA as of the end of this period.
In addition to yield curve positioning, credit exposure, and specific holdings,
another important factor in the Funds' performances during this period was
advance refundings. Refinancings rose sharply during this period, and the Funds'
performances benefited from the amount of their portfolios that became advance
refunded and the timing of these events. Generally, newly refunded bonds receive
a higher credit rating, which usually translates to a higher price.
While newly pre-refunded bonds tended to enhance the Funds' performances, the
Funds' holdings of older, previously pre-refunded bonds tended to underperform
the general municipal market during this period, primarily because of the
shorter effective maturities of these bonds. This was especially true in NIO and
NIF. As the Funds' holdings became advance refunded, we sold selected issues to
keep our allocations of pre-refunded credits at desired levels. The four older
Funds (NQI, NIO, NIF and NPX) also experienced some calls affecting their
holdings of higher-yielding housing bonds, which impacted the Funds' total
returns over this period.
HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF
OCTOBER 31, 2005?
As of October 31, 2005, NQI, NIO, NIF and NPX were 100% invested in insured
and/or U.S. guaranteed securities. NVG and NEA, which can invest up to 20% of
their assets
8
in uninsured investment-grade quality securities, had allocated 94% and 89% of
their portfolios, respectively, to insured bonds.
As of October 31, 2005, potential call exposure for the period from November
2005 through the end of 2007 ranged from 3% in NEA and NVG to 4% in NIF, 8% in
NPX and in NQI and 13% in NIO. The number of actual bond calls in all of these
Funds depends largely on future market interest rates.
9
Dividend and Share Price
INFORMATION
All of the Funds in this report use leverage to enhance opportunities for
additional income for common shareholders. The extent of this benefit is tied in
part to the short-term rates these Funds pay their MuniPreferred, shareholders.
During periods of low short-term rates, leveraged Funds generally pay lower
dividends to their MuniPreferred shareholders, which can leave more earnings to
support common share dividends. However, when short-term interest rates rise, as
they did during this reporting period, the Funds' borrowing costs also rise.
While leveraging still provided benefits for common shareholders, the extent of
these benefits was reduced. This resulted in two monthly dividend reductions in
NVG, three in NQI, NIO, NIF and NPX, and four in NEA over the 12-month period
ended October 31, 2005.
In addition, due to normal portfolio activity, common shareholders of the
following Funds received capital gains and net ordinary income distributions at
the end of December 2004 as follows:
LONG-TERM CAPITAL GAINS ORDINARY INCOME
(PER SHARE) (PER SHARE)
--------------------------------------------------------------------------------
NQI $0.0472 $0.0104
--------------------------------------------------------------------------------
NIO $0.0325 --
--------------------------------------------------------------------------------
NIF $0.0469 $0.0384
--------------------------------------------------------------------------------
NVG $0.1099 $0.0100
--------------------------------------------------------------------------------
NEA $0.0097 --
--------------------------------------------------------------------------------
The relatively large distributions from several of these Funds represented an
important part of the Funds' total returns for this period. For the most part,
these distributions were generated by bond calls or by sales of appreciated
securities. This had a slight negative impact on the Funds' earning power per
common share and was a minor factor in the per share dividend reductions noted
above.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
invest-
10
ment income as dividends to shareholders. As of October 31, 2005, all of the
Funds in this report except NEA had positive UNII balances for both financial
statement and tax purposes. NEA had a negative UNII balance for financial
statement purposes and a positive UNII balance for tax purposes.
At the end of the reporting period, the Funds' were trading at premiums or
discounts to their NAVs as shown in the accompanying chart:
10/31 12-MONTH AVERAGE
DISCOUNT PREMIUM/DISCOUNT
--------------------------------------------------------------------------------
NQI 0.00% +0.13%
--------------------------------------------------------------------------------
NIO -6.08% -3.66%
--------------------------------------------------------------------------------
NIF -6.07% -2.76%
--------------------------------------------------------------------------------
NVG -6.96% -7.11%
--------------------------------------------------------------------------------
NEA -7.90% -4.65%
--------------------------------------------------------------------------------
11
Nuveen Insured Quality Municipal Fund, Inc.
NQI
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 88%
U.S. Guaranteed 12%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0845
Dec 0.0845
Jan 0.0845
Feb 0.0845
Mar 0.0815
Apr 0.0815
May 0.0815
Jun 0.0775
Jul 0.0775
Aug 0.0775
Sep 0.074
Oct 0.074
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 16.08
16.07
16.1
16.07
15.64
15.27
15.36
15.34
15.47
15.57
15.69
15.78
15.78
15.82
15.66
15.73
15.7
15.73
15.8
15.62
15.6
15.56
15.4
15.48
15.51
15.55
15.67
15.76
15.8
15.68
15.64
15.73
15.59
15.54
15.64
15.7
15.62
15.58
15.54
15.47
15.5
15.51
15.57
15.54
15.62
15.62
15.66
15.64
15.66
15.74
15.72
15.69
15.57
15.63
15.54
15.54
15.6
15.58
15.58
15.64
15.77
15.86
16
15.98
16.1
16.13
16.28
16.34
16.35
16.3
16.34
16.22
16.32
16.29
16.21
16.16
16.13
15.96
16.16
16.36
16.32
16.3
16.23
16.27
16.3
16.32
16.35
16.3
16
15.88
15.74
15.6
15.55
15.38
15.36
15.35
15.22
15.02
14.62
14.76
14.5
14.61
14.64
14.8
14.87
14.8
14.88
14.9
14.94
14.87
14.86
14.86
14.99
15
14.96
15.06
15.19
15.09
15.09
15.1
15.36
15.17
15.33
15.54
15.59
15.59
15.42
15.51
15.5
15.61
15.42
15.4
15.62
15.52
15.64
15.65
15.65
15.63
15.77
15.76
15.77
15.72
15.8
15.75
15.84
15.9
15.96
16.01
16.02
16.1
16.02
15.91
15.99
15.99
15.96
15.76
15.76
15.93
15.94
15.91
15.9
16.01
16.05
16.14
16.22
16.16
16.09
16.08
16.07
16.03
16.1
16.19
16.2
16.21
16.34
16.4
16.42
16.47
16.36
16.17
16.07
16.08
15.94
15.96
15.79
15.8
15.88
15.85
15.91
15.91
15.73
15.75
15.79
15.74
15.62
15.57
15.45
15.57
15.53
15.55
15.57
15.63
15.63
15.64
15.67
15.68
15.7
15.66
15.59
15.6
15.6
15.7
15.83
15.85
15.93
15.9
15.91
15.9
15.89
15.73
15.66
15.68
15.6
15.56
15.58
15.61
15.62
15.55
15.5
15.55
15.38
15.45
15.59
15.58
15.6
15.63
15.6
15.65
15.59
15.54
15.59
15.59
15.39
15.34
15.43
15.19
15.3
15.38
15.42
15.44
15.42
15.24
15.46
15.3
10/31/05 15.31
FUND SNAPSHOT
------------------------------------
Common Share Price $15.31
------------------------------------
Common Share
Net Asset Value $15.31
------------------------------------
Premium/(Discount) to NAV 0.00%
------------------------------------
Market Yield 5.80%
------------------------------------
Taxable-Equivalent Yield1 8.06%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $585,777
------------------------------------
Average Effective Maturity
on Securities (Years) 20.22
------------------------------------
Leverage-Adjusted Duration 8.29
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/90)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.11% 3.09%
------------------------------------
5-Year 9.03% 7.74%
------------------------------------
10-Year 7.00% 6.39%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 18.2%
------------------------------------
Texas 14.9%
------------------------------------
New York 10.1%
------------------------------------
Illinois 9.7%
------------------------------------
Washington 7.2%
------------------------------------
Florida 5.7%
------------------------------------
Nevada 4.6%
------------------------------------
Hawaii 4.0%
------------------------------------
Kentucky 3.8%
------------------------------------
Ohio 1.8%
------------------------------------
Pennsylvania 1.7%
------------------------------------
Other 18.3%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Transportation 21.5%
------------------------------------
Tax Obligation/Limited 14.6%
------------------------------------
Tax Obligation/General 13.3%
------------------------------------
Healthcare 12.5%
------------------------------------
U.S. Guaranteed 12.4%
------------------------------------
Utilities 8.4%
------------------------------------
Housing/Multifamily 7.0%
------------------------------------
Water and Sewer 6.6%
------------------------------------
Other 3.7%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0576 per share.
12
Nuveen Insured Municipal Opportunity Fund, Inc.
NIO
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 79%
U.S. Guaranteed 21%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.081
Dec 0.081
Jan 0.081
Feb 0.081
Mar 0.078
Apr 0.078
May 0.078
Jun 0.074
Jul 0.074
Aug 0.074
Sep 0.071
Oct 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 16.08
16.07
16.1
16.07
15.64
15.27
15.36
15.34
15.47
15.57
15.69
15.78
15.78
15.82
15.66
15.73
15.7
15.73
15.8
15.62
15.6
15.56
15.4
15.48
15.51
15.55
15.67
15.76
15.8
15.68
15.64
15.73
15.59
15.54
15.64
15.7
15.62
15.58
15.54
15.47
15.5
15.51
15.57
15.54
15.62
15.62
15.66
15.64
15.66
15.74
15.72
15.69
15.57
15.63
15.54
15.54
15.6
15.58
15.58
15.64
15.77
15.86
16
15.98
16.1
16.13
16.28
16.34
16.35
16.3
16.34
16.22
16.32
16.29
16.21
16.16
16.13
15.96
16.16
16.36
16.32
16.3
16.23
16.27
16.3
16.32
16.35
16.3
16
15.88
15.74
15.6
15.55
15.38
15.36
15.35
15.22
15.02
14.62
14.76
14.5
14.61
14.64
14.8
14.87
14.8
14.88
14.9
14.94
14.87
14.86
14.86
14.99
15
14.96
15.06
15.19
15.09
15.09
15.1
15.36
15.17
15.33
15.54
15.59
15.59
15.42
15.51
15.5
15.61
15.42
15.4
15.62
15.52
15.64
15.65
15.65
15.63
15.77
15.76
15.77
15.72
15.8
15.75
15.84
15.9
15.96
16.01
16.02
16.1
16.02
15.91
15.99
15.99
15.96
15.76
15.76
15.93
15.94
15.91
15.9
16.01
16.05
16.14
16.22
16.16
16.09
16.08
16.07
16.03
16.1
16.19
16.2
16.21
16.34
16.4
16.42
16.47
16.36
16.17
16.07
16.08
15.94
15.96
15.79
15.8
15.88
15.85
15.91
15.91
15.73
15.75
15.79
15.74
15.62
15.57
15.45
15.57
15.53
15.55
15.57
15.63
15.63
15.64
15.67
15.68
15.7
15.66
15.59
15.6
15.6
15.7
15.83
15.85
15.93
15.9
15.91
15.9
15.89
15.73
15.66
15.68
15.6
15.56
15.58
15.61
15.62
15.55
15.5
15.55
15.38
15.45
15.59
15.58
15.6
15.63
15.6
15.65
15.59
15.54
15.59
15.59
15.39
15.34
15.43
15.19
15.3
15.38
15.42
15.44
15.42
15.24
15.46
15.3
10/31/05 15.31
FUND SNAPSHOT
------------------------------------
Common Share Price $14.52
------------------------------------
Common Share
Net Asset Value $15.46
------------------------------------
Premium/(Discount) to NAV -6.08%
------------------------------------
Market Yield 5.87%
------------------------------------
Taxable-Equivalent Yield1 8.15%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $1,254,638
------------------------------------
Average Effective Maturity
on Securities (Years) 18.56
------------------------------------
Leverage-Adjusted Duration 8.31
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -3.72% 2.21%
------------------------------------
5-Year 8.86% 7.54%
------------------------------------
10-Year 6.37% 6.36%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 18.6%
------------------------------------
Texas 10.9%
------------------------------------
Alabama 8.2%
------------------------------------
Nevada 5.4%
------------------------------------
Michigan 5.2%
------------------------------------
Colorado 5.0%
------------------------------------
Florida 4.9%
------------------------------------
New York 4.7%
------------------------------------
Illinois 3.6%
------------------------------------
Massachusetts 3.0%
------------------------------------
Wisconsin 2.7%
------------------------------------
South Carolina 2.6%
------------------------------------
Hawaii 2.1%
------------------------------------
Indiana 2.0%
------------------------------------
Ohio 1.9%
------------------------------------
Other 19.2%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
U.S. Guaranteed 20.9%
------------------------------------
Tax Obligation/Limited 19.0%
------------------------------------
Transportation 16.6%
------------------------------------
Tax Obligation/General 11.4%
------------------------------------
Healthcare 8.2%
------------------------------------
Utilities 7.1%
------------------------------------
Water and Sewer 6.5%
------------------------------------
Education and Civic
Organizations 5.5%
------------------------------------
Other 4.8%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0325 per share.
13
Nuveen Premier Insured Municipal Income Fund, Inc.
NIF
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 84%
U.S. Guaranteed 16%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.071
Oct 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 15.76
15.88
15.83
16.01
15.4
15.06
15.18
15.1
15.45
15.3
15.37
15.31
15.4
15.51
15.25
15.35
15.3
15.45
15.48
15.25
15.18
15.38
15.22
15.25
15.13
15.13
15.25
15.21
15.3
15.19
15.15
15.15
14.99
15.1
14.84
14.83
14.79
14.62
14.67
14.66
14.71
14.82
14.94
14.91
15.05
15.06
15.21
15.19
15.12
15.24
15.25
15.2
15.19
15.24
15.23
15.35
15.63
15.72
15.76
15.55
15.52
15.54
15.6
15.65
15.79
15.81
16
16.1
15.95
15.93
15.88
15.7
15.69
15.78
15.73
15.64
15.59
15.46
15.75
15.94
15.91
15.86
16
15.94
15.85
15.92
16
16.01
15.8
15.65
15.5
15.22
15.29
15.12
15.18
15.07
14.87
14.76
14.59
14.66
14.6
14.46
14.5
14.65
14.84
14.71
14.9
14.83
14.8
14.71
14.73
14.85
14.89
15.05
15.08
15.14
15.12
14.95
14.85
14.95
14.92
14.94
14.98
15.06
15.08
15.08
15.13
15.22
15.22
15.3
15.2
15.29
15.35
15.31
15.41
15.26
15.3
15.42
15.41
15.35
15.34
15.42
15.43
15.56
15.56
15.65
15.58
15.6
15.55
15.49
15.51
15.5
15.54
15.53
15.48
15.42
15.4
15.4
15.58
15.53
15.5
15.56
15.6
15.65
15.69
15.69
15.62
15.7
15.69
15.74
15.81
15.86
15.85
15.92
16
16
16.03
16
15.81
15.6
15.47
15.54
15.45
15.45
15.53
15.6
15.65
15.67
15.62
15.62
15.7
15.77
15.75
15.7
15.57
15.37
15.4
15.48
15.49
15.36
15.34
15.33
15.24
15.33
15.24
15.26
15.28
15.37
15.34
15.25
15.38
15.37
15.44
15.5
15.5
15.58
15.58
15.45
15.48
15.54
15.53
15.5
15.34
15.38
15.33
15.31
15.37
15.19
15.07
15.15
15.11
15.14
15.14
15.26
15.24
15.25
15.32
15.27
15.14
15.14
15.15
14.96
14.71
14.64
14.5
14.41
14.39
14.42
14.46
14.57
14.67
14.39
14.46
14.41
10/31/05 14.4
FUND SNAPSHOT
------------------------------------
Common Share Price $14.40
------------------------------------
Common Share
Net Asset Value $15.33
------------------------------------
Premium/(Discount) to NAV -6.07%
------------------------------------
Market Yield 5.92%
------------------------------------
Taxable-Equivalent Yield1 8.22%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $297,624
------------------------------------
Average Effective Maturity
on Securities (Years) 16.78
------------------------------------
Leverage-Adjusted Duration 9.15
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -1.66% 2.16%
------------------------------------
5-Year 7.89% 7.35%
------------------------------------
10-Year 6.37% 6.17%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 18.8%
------------------------------------
Washington 12.4%
------------------------------------
Illinois 9.8%
------------------------------------
Texas 6.9%
------------------------------------
Nevada 5.5%
------------------------------------
New York 4.8%
------------------------------------
Colorado 4.7%
------------------------------------
Georgia 4.1%
------------------------------------
Oregon 3.9%
------------------------------------
Indiana 3.2%
------------------------------------
Florida 3.2%
------------------------------------
Hawaii 2.5%
------------------------------------
Tennessee 2.4%
------------------------------------
Other 17.8%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 21.4%
------------------------------------
Transportation 19.1%
------------------------------------
Tax Obligation/Limited 16.1%
------------------------------------
U.S. Guaranteed 15.8%
------------------------------------
Healthcare 10.7%
------------------------------------
Utilities 5.7%
------------------------------------
Water and Sewer 5.2%
------------------------------------
Other 6.0%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.0853 per share.
14
Nuveen Insured Premium Income Municipal Fund 2
NPX
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 91%
U.S. Guaranteed 9%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE
Nov 0.0815
Dec 0.0815
Jan 0.0815
Feb 0.0815
Mar 0.0785
Apr 0.0785
May 0.0785
Jun 0.0745
Jul 0.0745
Aug 0.0745
Sep 0.071
Oct 0.071
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 14.16
14.15
14.13
14.05
13.75
13.55
13.58
13.46
13.51
13.55
13.6
13.66
13.74
13.74
13.66
13.69
13.65
13.71
13.69
13.6
13.48
13.43
13.26
13.41
13.48
13.56
13.55
13.61
13.6
13.48
13.46
13.59
13.48
13.43
13.35
13.25
13.23
13.22
13.17
13.2
13.16
13.18
13.2
13.21
13.25
13.42
13.41
13.53
13.45
13.4
13.3
13.26
13.23
13.14
13.24
13.27
13.3
13.27
13.24
13.27
13.23
13.29
13.37
13.41
13.56
13.64
13.7
13.75
13.75
13.76
13.9
13.79
13.64
13.71
13.68
13.62
13.51
13.43
13.56
13.79
13.84
13.89
13.87
13.85
13.88
13.89
13.87
13.9
13.7
13.8
13.69
13.48
13.43
13.35
13.46
13.38
13.3
13.26
12.99
12.9
12.81
12.64
12.71
12.98
13.08
13.15
13.19
13.25
13.17
13.06
13.06
13.15
13.08
13.09
13.15
13.15
13.19
13.09
13.07
13.06
13.13
13.13
13.19
13.33
13.37
13.37
13.38
13.35
13.41
13.43
13.35
13.34
13.5
13.43
13.46
13.48
13.56
13.64
13.54
13.51
13.47
13.5
13.54
13.49
13.48
13.46
13.58
13.61
13.65
13.61
13.66
13.68
13.73
13.72
13.74
13.59
13.65
13.56
13.56
13.55
13.47
13.52
13.5
13.55
13.56
13.67
13.68
13.7
13.64
13.6
13.63
13.71
13.75
13.75
13.78
13.81
13.69
13.69
13.66
13.59
13.63
13.7
13.57
13.58
13.67
13.67
13.69
13.69
13.68
13.68
13.68
13.71
13.9
13.84
13.76
13.7
13.56
13.63
13.59
13.6
13.57
13.62
13.59
13.54
13.56
13.6
13.61
13.62
13.61
13.62
13.63
13.67
13.69
13.78
13.82
13.8
13.81
13.89
13.87
13.86
13.79
13.65
13.51
13.47
13.43
13.32
13.29
13.24
13.17
13.05
12.94
13.07
13.1
13.15
13.14
13.1
13.2
13.21
13.13
13.13
13.17
12.9
12.74
12.74
12.75
12.68
12.74
12.75
12.86
12.89
12.87
12.7
12.75
12.75
10/31/05 12.83
FUND SNAPSHOT
------------------------------------
Common Share Price $12.83
------------------------------------
Common Share
Net Asset Value $13.93
------------------------------------
Premium/(Discount) to NAV -7.90%
------------------------------------
Market Yield 5.94%
------------------------------------
Taxable-Equivalent Yield1 8.25%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $520,508
------------------------------------
Average Effective Maturity
on Securities (Years) 18.03
------------------------------------
Leverage-Adjusted Duration 8.45
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/22/93)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -3.32% 2.14%
------------------------------------
5-Year 9.04% 7.43%
------------------------------------
10-Year 7.45% 6.52%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 14.0%
------------------------------------
Texas 10.0%
------------------------------------
Pennsylvania 8.1%
------------------------------------
New York 7.8%
------------------------------------
Colorado 7.4%
------------------------------------
Washington 5.7%
------------------------------------
Hawaii 5.3%
------------------------------------
Wisconsin 4.4%
------------------------------------
Massachusetts 3.8%
------------------------------------
Nevada 2.8%
------------------------------------
North Dakota 2.6%
------------------------------------
Georgia 2.5%
------------------------------------
Oregon 2.4%
------------------------------------
Utah 2.2%
------------------------------------
Illinois 2.2%
------------------------------------
Other 18.8%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Utilities 17.6%
------------------------------------
Tax Obligation/Limited 16.1%
------------------------------------
Tax Obligation/General 12.7%
------------------------------------
Water and Sewer 11.7%
------------------------------------
Transportation 10.9%
------------------------------------
Healthcare 10.6%
------------------------------------
U.S. Guaranteed 8.8%
------------------------------------
Education and Civic
Organizations 7.0%
------------------------------------
Other 4.6%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
15
Nuveen Insured Dividend Advantage Municipal Fund
NVG
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 94%
AAA (Uninsured) 2%
AA (Uninsured) 4%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0775
Dec 0.0775
Jan 0.0775
Feb 0.0775
Mar 0.0745
Apr 0.0745
May 0.0745
Jun 0.0705
Jul 0.0705
Aug 0.0705
Sep 0.0705
Oct 0.0705
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 14.94
14.96
14.96
15.04
14.59
14.34
14.46
14.45
14.48
14.68
14.79
14.74
14.71
14.63
14.53
14.62
14.61
14.62
14.65
14.5
14.46
14.55
14.39
14.47
14.44
14.42
14.41
14.36
14.5
14.29
14.18
14.21
14.19
14.13
14.15
14.02
14.03
13.98
13.89
13.94
13.95
14.01
14.1
14.11
14.17
14.32
14.49
14.62
14.64
14.56
14.51
14.44
14.43
14.47
14.45
14.4
14.46
14.44
14.42
14.45
14.45
14.6
14.65
14.69
14.77
14.88
14.82
14.81
14.8
14.88
14.9
14.82
14.81
14.85
14.85
14.81
14.7
14.56
14.56
14.67
14.76
14.72
14.7
14.7
14.67
14.7
14.74
14.68
14.54
14.53
14.35
14.18
14.14
14.02
14.06
14
13.94
13.88
13.63
13.6
13.57
13.52
13.62
13.89
14
14.01
14.05
14.15
14.1
13.93
13.92
13.97
13.99
13.92
13.99
14.07
14.16
14.1
14.05
14.12
14.08
14.11
14.18
14.22
14.3
14.3
14.36
14.37
14.38
14.38
14.31
14.34
14.35
14.26
14.32
14.38
14.38
14.43
14.45
14.47
14.39
14.45
14.5
14.5
14.44
14.53
14.66
14.82
14.84
14.9
14.91
14.9
14.85
14.75
14.63
14.45
14.45
14.47
14.62
14.72
14.69
14.73
14.78
14.72
14.7
14.73
14.72
14.79
14.75
14.77
14.79
14.85
14.84
14.9
14.9
14.94
14.83
14.84
14.85
14.76
14.82
14.82
14.74
14.71
14.7
14.79
14.87
14.94
14.91
14.91
14.88
14.79
14.83
14.88
14.82
14.82
14.86
14.8
14.78
14.74
14.7
14.74
14.73
14.69
14.68
14.64
14.67
14.66
14.7
14.68
14.7
14.73
14.72
14.73
14.86
14.81
14.85
14.88
14.92
14.95
14.89
14.87
14.68
14.55
14.58
14.46
14.55
14.46
14.47
14.49
14.43
14.55
14.45
14.46
14.52
14.5
14.5
14.43
14.5
14.5
14.54
14.37
14.18
14.14
14.1
14.07
13.96
14.11
14.24
14.29
14.24
14.18
14.19
14.12
10/31/05 14.17
FUND SNAPSHOT
------------------------------------
Common Share Price $14.17
------------------------------------
Common Share
Net Asset Value $15.23
------------------------------------
Premium/(Discount) to NAV -6.96%
------------------------------------
Market Yield 5.97%
------------------------------------
Taxable-Equivalent Yield1 8.29%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $454,018
------------------------------------
Average Effective Maturity
on Securities (Years) 17.52
------------------------------------
Leverage-Adjusted Duration 8.17
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year 2.00% 2.93%
------------------------------------
Since
Inception 5.13% 8.27%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
Texas 18.4%
------------------------------------
Indiana 11.4%
------------------------------------
Florida 10.9%
------------------------------------
Washington 9.4%
------------------------------------
Illinois 9.4%
------------------------------------
California 7.7%
------------------------------------
Tennessee 6.2%
------------------------------------
Pennsylvania 3.3%
------------------------------------
Alabama 2.9%
------------------------------------
Nevada 2.9%
------------------------------------
Other 17.5%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 23.0%
------------------------------------
Tax Obligation/Limited 17.0%
------------------------------------
Transportation 15.2%
------------------------------------
Water and Sewer 13.0%
------------------------------------
U.S. Guaranteed 9.1%
------------------------------------
Education and Civic
Organizations 8.0%
------------------------------------
Utilities 6.1%
------------------------------------
Healthcare 5.9%
------------------------------------
Other 2.7%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
2 The Fund also paid shareholders capital gains and net ordinary income
distributions in December 2004 of $0.1199 per share.
16
Nuveen Insured Tax-Free Advantage Municipal Fund
NEA
Performance
OVERVIEW As of October 31, 2005
Pie Chart:
CREDIT QUALITY
(as a % of total investments)
Insured 89%
AAA (Uninsured) 4%
AA (Uninsured) 2%
A (Uninsured) 4%
BBB (Uninsured) 1%
Bar Chart:
2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2
Nov 0.0745
Dec 0.0715
Jan 0.0715
Feb 0.0715
Mar 0.0685
Apr 0.0685
May 0.0685
Jun 0.065
Jul 0.065
Aug 0.065
Sep 0.062
Oct 0.062
Line Chart:
SHARE PRICE PERFORMANCE
Weekly Closing Price
Past performance is not predictive of future results.
11/1/04 15
15
14.99
15
14.96
14.79
14.74
14.4
14.33
14.45
14.32
14.37
14.37
14.41
14.44
14.39
14.4
14.36
14.33
14.24
14.1
14.06
13.61
13.68
13.7
13.56
13.69
13.65
13.66
13.65
13.65
13.62
13.53
13.49
13.51
13.52
13.51
13.42
13.31
13.27
13.35
13.41
13.58
13.55
13.54
13.66
13.67
13.75
13.96
13.96
13.94
13.94
13.84
13.87
14.03
14.05
14.02
13.98
13.81
13.93
14.21
14.23
14.29
14.45
14.51
14.3
14.63
14.7
14.74
14.31
14.25
14.19
14.26
14.51
14.43
14.45
14.35
14.2
14.3
14.33
14.38
14.34
14.44
14.44
14.45
14.53
14.51
14.4
14.4
14.52
14.37
14.45
14.31
14.17
14.17
14.2
14.03
14
13.54
13.44
13.22
13.19
13.25
13.45
13.53
13.48
13.63
13.64
13.66
13.68
13.71
13.86
13.79
13.8
13.75
13.73
13.77
13.72
13.73
13.74
13.84
14.15
14.11
14.2
14.12
14.12
14.07
14.08
14.1
13.9
13.82
13.87
14.09
14.04
14.1
14.25
14.27
14.24
14.25
14.26
14.26
14.5
14.44
14.33
14.3
14.11
14.25
14.4
14.49
14.38
14.47
14.47
14.47
14.44
14.33
14.26
14.22
14.17
14.33
14.51
14.35
14.5
14.49
14.49
14.46
14.49
14.51
14.62
14.5
14.57
14.47
14.5
14.47
14.48
14.5
14.5
14.5
14.5
14.43
14.44
14.45
14.41
14.34
14.53
14.46
14.61
14.66
14.83
14.73
14.73
14.75
14.7
14.67
14.51
14.55
14.65
14.55
14.59
14.4
14.42
14.35
14.34
14.34
14.4
14.4
14.36
14.44
14.46
14.39
14.43
14.47
14.47
14.58
14.64
14.57
14.6
14.55
14.43
14.4
14.52
14.52
14.38
14.27
14.31
14.21
14.11
14.04
13.79
13.87
13.9
13.68
13.7
13.78
13.88
13.93
13.92
13.88
13.91
13.91
13.87
14.04
14.12
13.79
13.92
13.78
13.47
13.51
13.5
13.59
13.52
13.5
13.23
13.34
13.41
10/31/05 13.41
FUND SNAPSHOT
------------------------------------
Common Share Price $13.41
------------------------------------
Common Share
Net Asset Value $14.56
------------------------------------
Premium/(Discount) to NAV -7.90%
------------------------------------
Market Yield 5.55%
------------------------------------
Taxable-Equivalent Yield1 7.71%
------------------------------------
Net Assets Applicable to
Common Shares ($000) $269,614
------------------------------------
Average Effective Maturity
on Securities (Years) 21.09
------------------------------------
Leverage-Adjusted Duration 7.06
------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
------------------------------------
ON SHARE PRICE ON NAV
------------------------------------
1-Year -4.68% 4.33%
------------------------------------
Since
Inception 2.11% 6.57%
------------------------------------
STATES
(as a % of total investments)
------------------------------------
California 19.3%
------------------------------------
Texas 8.7%
------------------------------------
Michigan 7.7%
------------------------------------
New York 6.3%
------------------------------------
Washington 6.1%
------------------------------------
Indiana 5.9%
------------------------------------
Pennsylvania 5.8%
------------------------------------
Alabama 5.6%
------------------------------------
South Carolina 4.9%
------------------------------------
Wisconsin 4.5%
------------------------------------
Massachusetts 3.4%
------------------------------------
Colorado 2.6%
------------------------------------
Other 19.2%
------------------------------------
SECTORS
(as a % of total investments)
------------------------------------
Tax Obligation/General 30.3%
------------------------------------
Tax Obligation/Limited 23.5%
------------------------------------
Healthcare 14.6%
------------------------------------
Utilities 9.6%
------------------------------------
Transportation 7.1%
------------------------------------
Water and Sewer 6.6%
------------------------------------
U.S. Guaranteed 5.5%
------------------------------------
Other 2.8%
------------------------------------
1 Taxable equivalent yield represents the yield that must be earned on a
fully taxable investment, in order to equal the yield of the Fund on an
after-tax basis. It is based on a federal income tax rate of 28%. When
comparing this Fund to investments that generate qualified dividend income,
the taxable equivalent yield is lower.
2 The Fund also paid shareholders a capital gains distribution in December
2004 of $0.0097 per share.
17
Shareholder
MEETING REPORT
The Annual Shareholder Meeting was held on July 26, 2005 at The Northern Trust
Bank, 50 S. LaSalle St., Chicago, Illinois.
NQI NIO NIF
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT
MANAGEMENT AGREEMENT WAS REACHED
AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
====================================================================================================================================
For 33,099,534 72,957,358 17,661,591
Against 211,373 671,979 106,231
Abstain 310,476 833,358 186,921
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 74,462,695 17,954,743
====================================================================================================================================
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting voting shares
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner
For 33,357,665 -- 73,786,920 -- 17,819,619 --
Withhold 263,718 -- 675,775 -- 135,124 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
Lawrence H. Brown
For 33,354,763 -- 73,816,191 -- 17,818,003 --
Withhold 266,620 -- 646,504 -- 136,740 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
Jack B. Evans
For 33,355,407 -- 73,806,630 -- 17,815,370 --
Withhold 265,976 -- 656,065 -- 139,373 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
William C. Hunter
For 33,358,340 -- 73,785,299 -- 17,818,419 --
Withhold 263,043 -- 677,396 -- 136,324 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
David J. Kundert
For 33,357,993 -- 73,818,900 -- 17,826,286 --
Withhold 263,390 -- 643,795 -- 128,457 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
William J. Schneider
For -- 11,831 -- 26,039 -- 6,344
Withhold -- 17 -- 179 -- 27
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,848 -- 26,218 -- 6,371
====================================================================================================================================
18
NQI NIO NIF
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting voting shares
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Timothy R. Schwertfeger
For -- 11,831 -- 26,039 -- 6,344
Withhold -- 17 -- 179 -- 27
------------------------------------------------------------------------------------------------------------------------------------
Total -- 11,848 -- 26,218 -- 6,371
====================================================================================================================================
Judith M. Stockdale
For 33,288,630 -- 73,807,654 -- 17,818,090 --
Withhold 332,753 -- 655,041 -- 136,653 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
Eugene S. Sunshine
For 33,357,100 -- 73,801,462 -- 17,820,919 --
Withhold 264,283 -- 661,233 -- 133,824 --
------------------------------------------------------------------------------------------------------------------------------------
Total 33,621,383 -- 74,462,695 -- 17,954,743 --
====================================================================================================================================
NPX NVG NEA
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE NEW INVESTMENT
MANAGEMENT AGREEMENT WAS REACHED
AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting
together together together
as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
For 34,476,589 28,404,299 17,841,489
Against 220,728 156,837 89,312
Abstain 423,410 287,476 223,917
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 28,848,612 18,154,718
====================================================================================================================================
19
Shareholder
MEETING REPORT (continued)
NPX NVG NEA
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting voting shares
together together together together together together
as a class as a class as a class as a class as a class as a class
====================================================================================================================================
Robert P. Bremner
For 34,798,026 -- 28,655,621 -- 17,818,563 --
Withhold 322,701 -- 192,991 -- 336,155 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
Lawrence H. Brown
For 34,801,250 -- 28,655,258 -- 17,818,038 --
Withhold 319,477 -- 193,354 -- 336,680 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
Jack B. Evans
For 34,803,398 -- 28,656,380 -- 17,820,379 --
Withhold 317,329 -- 192,232 -- 334,339 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
William C. Hunter
For 34,807,109 -- 28,656,947 -- 17,819,629 --
Withhold 313,618 -- 191,665 -- 335,089 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
David J. Kundert
For 34,805,787 -- 28,656,125 -- 17,822,165 --
Withhold 314,940 -- 192,487 -- 332,553 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
William J. Schneider
For -- 10,080 -- 9,132 -- 5,636
Withhold -- 76 -- 31 -- 12
------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,156 -- 9,163 -- 5,648
====================================================================================================================================
Timothy R. Schwertfeger
For -- 10,081 -- 9,132 -- 5,636
Withhold -- 75 -- 31 -- 12
------------------------------------------------------------------------------------------------------------------------------------
Total -- 10,156 -- 9,163 -- 5,648
====================================================================================================================================
Judith M. Stockdale
For 34,806,671 -- 28,651,440 -- 17,822,526 --
Withhold 314,056 -- 197,172 -- 332,192 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
Eugene S. Sunshine
For 34,800,554 -- 28,660,808 -- 17,819,314 --
Withhold 320,173 -- 187,804 -- 335,404 --
------------------------------------------------------------------------------------------------------------------------------------
Total 35,120,727 -- 28,848,612 -- 18,154,718 --
====================================================================================================================================
20
Report of
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc.,
Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured
Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2,
Nuveen Insured Dividend Advantage Municipal Fund and Nuveen Insured Tax-Free
Advantage Municipal Fund as of October 31, 2005, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein. These financial statements and financial
highlights are the responsibility of the Funds' management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. We were
not engaged to perform an audit of the Funds' internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Funds' internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights, assessing the accounting principles used
and significant estimates made by management, and evaluating the overall
financial statement presentation. Our procedures included confirmation of
securities owned as of October 31, 2005, by correspondence with the custodian
and brokers or other appropriate auditing procedures where replies from brokers
were not received. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal
Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc.,
Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend
Advantage Municipal Fund and Nuveen Insured Tax-Free Advantage Municipal Fund at
October 31, 2005, and the results of their operations for the year then ended,
changes in their net assets for each of the two years in the period then ended,
and their financial highlights for each of the periods indicated therein in
conformity with U.S. generally accepted accounting principles.
/s/ Ernst & Young LLP
Chicago, Illinois
December 14, 2005
21
Nuveen Insured Quality Municipal Fund, Inc. (NQI)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, 1/13 at 100.00 AAA $ 1,216,005
Water and Sewerage Revenue Bonds, Series 2002B,
5.250%, 1/01/20 - MBIA Insured
7,500 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA 7,735,950
Series 2005A, 5.000%, 6/01/24 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.6% (1.1% OF TOTAL INVESTMENTS)
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 9,462,292
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aaa 4,445,882
Sciences Campus, Series 2004B, 5.000%, 11/01/24 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 27.5% (18.2% OF TOTAL INVESTMENTS)
1,500 Acalanes Union High School District, Contra Costa County, 8/15 at 100.00 AAA 1,570,020
California, General Obligation Bonds, Series 2005,
5.000%, 8/01/24 - FGIC Insured
7,620 Alameda County, California, Certificates of Participation, 9/06 at 102.00 AAA 7,948,727
Alameda County Public Facilities Corporation, Series 1991,
6.000%, 9/01/21 (Pre-refunded to 9/01/06) - MBIA Insured
California Educational Facilities Authority, Revenue Bonds,
Occidental College, Series 2005A:
1,275 5.250%, 10/01/23 - MBIA Insured 10/15 at 100.00 Aaa 1,377,791
1,415 5.000%, 10/01/25 - MBIA Insured 10/15 at 100.00 Aaa 1,478,533
13,175 California Pollution Control Financing Authority, Revenue 9/09 at 101.00 AAA 14,071,559
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - MBIA Insured
8,000 California, General Obligation Bonds, Series 2002, 10/12 at 100.00 AAA 8,200,800
5.000%, 10/01/32 - MBIA Insured
20,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 21,093,885
5.000%, 4/01/27 - AMBAC Insured
3,750 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 3,862,800
5.000%, 4/01/31 - AMBAC Insured
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
4,045 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 4,223,425
4,000 5.000%, 12/01/26 - MBIA Insured 12/14 at 100.00 AAA 4,164,280
2,340 Cerritos Public Financing Authority, California, Tax Allocation 11/17 at 102.00 AAA 2,459,317
Revenue Bonds, Los Cerritos Redevelopment Projects,
Series 2002A, 5.000%, 11/01/24 - AMBAC Insured
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Revenue Refunding Bonds, Series 1999:
22,985 0.000%, 1/15/24 - MBIA Insured 1/10 at 44.52 AAA 8,472,271
22,000 0.000%, 1/15/31 - MBIA Insured 1/10 at 29.11 AAA 5,210,920
50,000 0.000%, 1/15/37 - MBIA Insured 1/10 at 20.19 AAA 8,314,500
5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 AAA 5,173,750
Financing Project, Series 2002A, 5.125%, 3/01/32 -
AMBAC Insured
3,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 3,584,210
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
5,000 Inland Empire Solid Waste Financing Authority, California, 8/06 at 102.00 AAA 5,201,350
Revenue Bonds, Landfill Improvement Financing Project,
Series 1996B, 6.000%, 8/01/16 (Alternative Minimum Tax)
(Pre-refunded to 8/01/06) - FSA Insured
5,453 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,933,573
Collateralized Assisted Living Housing Revenue Bonds,
CDC Assisted Living Project, Series 2000A, 7.500%, 1/20/42
5,860 Ontario Redevelopment Financing Authority, San Bernardino 2/06 at 100.00 AAA 6,099,850
County, California, Revenue Bonds, Redevelopment Project 1,
Series 1993, 5.850%, 8/01/22 - MBIA Insured
22
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 3,615 Pasadena Unified School District, Los Angeles County, 5/13 at 100.00 AAA $ 3,937,133
California, General Obligation Bonds, Series 2003D,
5.000%, 5/01/24 (Pre-refunded to 5/01/13) - MBIA Insured
2,590 Riverside County Public Financing Authority, California, 10/14 at 100.00 AAA 2,658,298
Tax Allocation Bonds, Multiple Projects, Series 2004,
5.000%, 10/01/25 - XLCA Insured
2,000 San Diego Redevelopment Agency, California, Subordinate 9/14 at 100.00 AAA 2,068,420
Lien Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/21 - XLCA Insured
San Francisco Airports Commission, California, Revenue Refunding
Bonds, San Francisco International Airport, Second Series 2001,
Issue 27A:
7,200 5.125%, 5/01/21 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 7,386,768
12,690 5.250%, 5/01/31 (Alternative Minimum Tax) - MBIA Insured 5/11 at 100.00 AAA 12,984,662
San Francisco Bay Area Rapid Transit District, California, Sales
Tax Revenue Bonds, Series 2005A:
3,485 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 3,671,866
3,655 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 3,842,099
3,840 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 4,027,315
1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 AAA 1,037,600
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
1,575 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 AAA 1,631,905
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 2.0% (1.3% OF TOTAL INVESTMENTS)
3,750 Denver City and County, Colorado, Airport System Revenue 11/06 at 101.00 AAA 3,860,662
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,305,313
Obligation Bonds, Series 2004, 5.000%, 12/15/24 -
FSA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780
Series 2005, 5.000%, 6/01/30 - FGIC Insured
Board of Trustees of the University of Northern Colorado,
Revenue Bonds, Series 2005:
1,925 5.000%, 6/01/21 - FSA Insured 6/15 at 100.00 AAA 2,029,085
2,015 5.000%, 6/01/22 - FSA Insured 6/15 at 100.00 AAA 2,117,483
1,200 Widefield Water and Sanitation District, El Paso County, 12/14 at 100.00 AAA 1,251,108
Colorado, Water and Sewerage Revenue Refunding and
Improvement Bonds, Series 2004, 5.000%, 12/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 Connecticut, General Obligation Bonds, Series 2004D, 12/14 at 100.00 AAA 2,109,680
5.000%, 12/01/22 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.4% (0.9% OF TOTAL INVESTMENTS)
8,000 Washington Convention Center Authority, District of Columbia, 10/08 at 101.00 AAA 8,316,560
Senior Lien Dedicated Tax Revenue Bonds, Series 1998,
5.000%, 10/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 8.6% (5.7% OF TOTAL INVESTMENTS)
1,000 Florida State Board of Education, Full Faith and Credit Public 6/12 at 101.00 AAA 1,035,490
Education Capital Outlay Bonds, Series 2002F,
5.000%, 6/01/25 - MBIA Insured
3,250 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 3,404,603
Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
2,000 Florida Board of Education, Lottery Revenue Bonds, 7/15 at 101.00 AAA 2,112,520
Series 2005A, 5.000%, 7/01/22 - AMBAC Insured
1,180 Florida Municipal Loan Council, Revenue Bonds, Series 2003A, No Opt. Call AAA 1,285,527
5.250%, 5/01/13 - MBIA Insured
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 21,512,600
5.750%, 10/01/25 (Alternative Minimum Tax) - FSA Insured
4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,276,596
Multifamily Housing Revenue Bonds, Monterey Pointe
Apartments, Series 2001-2A, 5.850%, 7/01/37 (Alternative
Minimum Tax) - FSA Insured
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 7,262,990
International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
1,000 Ocala, Florida, Utility System Revenue Bonds, Series 2005B, 10/15 at 100.00 Aaa 1,074,750
5.250%, 10/01/25 - FGIC Insured
23
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 3,780 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AAA $ 4,014,020
Participation, Series 2003A, 5.000%, 8/01/16 -
AMBAC Insured
4,070 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aaa 4,233,818
Participation, Series 2005B, 5.000%, 8/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,045,330
Series 2004, 5.000%, 11/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 6.1% (4.0% OF TOTAL INVESTMENTS)
1,620 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 1,694,698
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 9,784,645
7,000 6.000%, 7/01/19 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 7,603,820
16,180 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 16,547,610
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.7% (9.7% OF TOTAL INVESTMENTS)
9,500 Chicago, Illinois, Second Lien General Airport Revenue 1/10 at 101.00 AAA 10,123,770
Refunding Bonds, O'Hare International Airport, Series 1999,
5.500%, 1/01/15 (Alternative Minimum Tax) - AMBAC Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 AAA 27,348,000
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 16,680,957
Series 2002, 5.250%, 4/01/27 - FSA Insured
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,973,132
Series 2001, 5.250%, 5/01/26 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 7,159,320
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 12/15/24 - MBIA Insured
10,000 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 10,843,900
Infrastructure Projects, Series 2001B, 5.250%, 8/15/21
(Pre-refunded to 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.6% (1.1% OF TOTAL INVESTMENTS)
7,790 Indiana Transportation Finance Authority, Highway Revenue No Opt. Call AAA 9,457,294
Bonds, Series 1990A, 7.250%, 6/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 AAA 3,141,810
Series 2003, 5.000%, 10/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 5.7% (3.8% OF TOTAL INVESTMENTS)
3,015 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 AAA 3,134,032
Project Notes, First Series 2005, 5.000%, 5/01/25 -
MBIA Insured
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
6,345 6.150%, 10/01/27 - MBIA Insured 10/13 at 101.00 AAA 7,253,287
18,185 6.150%, 10/01/28 - MBIA Insured 10/13 at 101.00 AAA 20,764,360
2,230 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 2,337,709
Bonds, Project 85, Series 2005, 5.000%, 8/01/23 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.7% (0.5% OF TOTAL INVESTMENTS)
4,045 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 4,171,042
Obligation Bonds, Series 1986, 5.950%, 11/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 1.5% (1.0% OF TOTAL INVESTMENTS)
8,000 Maine Health and Higher Educational Facilities Authority, 7/09 at 101.00 AAA 8,712,240
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 -
MBIA Insured
24
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.4% (0.9% OF TOTAL INVESTMENTS)
$ 7,535 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA $ 8,031,783
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.500%, 3/01/18 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 1.9% (1.3% OF TOTAL INVESTMENTS)
5,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 5,373,050
Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded to 7/01/12) - FGIC Insured
Massachusetts, Special Obligation Dedicated Tax Revenue
Bonds, Series 2004:
1,250 5.250%, 1/01/21 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,356,513
1,000 5.250%, 1/01/22 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,085,210
1,195 5.250%, 1/01/23 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 1,296,826
2,000 5.250%, 1/01/24 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,170,420
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.8% (0.6% OF TOTAL INVESTMENTS)
4,750 Michigan Strategic Fund, Collateralized Limited Obligation 9/09 at 102.00 AAA 4,974,295
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.0% (0.0% OF TOTAL INVESTMENTS)
127 St. Louis Park, Minnesota, GNMA Mortgage-Backed 4/06 at 100.00 Aaa 127,080
Securities Program Single Family Residential Mortgage
Revenue Bonds, Series 1991A, 7.250%, 4/20/23
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.4% (1.0% OF TOTAL INVESTMENTS)
2,545 Harrison County Wastewater Management District, No Opt. Call AAA 3,231,030
Mississippi, Wastewater Treatment Facilities Revenue
Refunding Bonds, Series 1991A, 8.500%, 2/01/13 -
FGIC Insured
2,715 Harrison County Wastewater Management District, No Opt. Call AAA 3,368,473
Mississippi, Revenue Refunding Bonds, Wastewater
Treatment Facilities, Series 1991B, 7.750%, 2/01/14 -
FGIC Insured
1,865 Mississippi Home Corporation, GNMA Collateralized Single 6/06 at 105.00 Aaa 1,885,440
Family Mortgage Revenue Bonds, Series 1996C,
7.600%, 6/01/29 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Camdenton Reorganized School District R3, Camden County, No Opt. Call AAA 1,615,080
Missouri, General Obligation Bonds, Series 2005,
5.250%, 3/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 7.0% (4.6% OF TOTAL INVESTMENTS)
33,700 Director of Nevada State Department of Business and 1/10 at 100.00 AAA 34,826,254
Industry, Revenue Bonds, Las Vegas Monorail Project,
First Tier, Series 2000, 5.375%, 1/01/40 - AMBAC Insured
5,720 Reno, Nevada, Senior Lien Sales and Room Tax Revenue 6/12 at 100.00 AAA 5,885,422
Bonds, Reno Transportation Rail Access Corridor Project,
Series 2002, 5.125%, 6/01/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1% (0.7% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,700 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,784,609
1,700 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,780,852
2,500 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 AAA 2,628,950
5.000%, 1/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.1% (0.7% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving
Fund Revenue Bonds, Series 2004C:
1,420 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,485,987
3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AAA 3,435,714
1,530 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 1,596,677
5.000%, 4/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 15.3% (10.1% OF TOTAL INVESTMENTS)
8,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 8,314,560
Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 -
FGIC Insured
11,760 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AAA 13,016,674
Lease Revenue Bonds, Court Facilities, Series 1999,
5.750%, 5/15/30 (Pre-refunded to 5/15/10) - AMBAC Insured
25
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
$ 1,100 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA $ 1,144,275
Mental Health Services Facilities Improvements,
Series 2005A, 5.000%, 2/15/24 - AMBAC Insured
3,000 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 3,127,710
Mental Health Services Facilities Improvements,
Series 2005D, 5.000%, 2/15/23 - FGIC Insured
10,875 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 11,253,559
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
4,200 New York State Mortgage Agency, Homeowner Mortgage 10/09 at 100.00 AAA 4,348,806
Revenue Bonds, Series 82, 5.550%, 10/01/19 (Alternative
Minimum Tax) - MBIA Insured
15,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 16,494,600
School Districts Financing Program, Series 2002D,
5.500%, 10/01/17 - MBIA Insured
10,120 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 10,573,072
Series 2005G, 5.000%, 1/01/26 - FSA Insured
1,950 New York State Thruway Authority, Highway and Bridge 10/15 at 100.00 AAA 2,056,782
Trust Fund Bonds, Second Generation, Series 2005B,
5.000%, 4/01/21 - AMBAC Insured
New York State Thruway Authority, State Personal Income
Tax Revenue Bonds, Series 2005A:
3,500 5.000%, 3/15/19 - FSA Insured 3/15 at 100.00 AAA 3,710,735
6,595 5.000%, 3/15/25 - FSA Insured 3/15 at 100.00 AAA 6,877,860
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
1,630 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,707,246
1,675 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,751,849
5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/13 at 100.00 AAA 5,148,300
Lien General Purpose Revenue Bonds, Series 2003A,
5.000%, 11/15/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.7% (1.8% OF TOTAL INVESTMENTS)
7,000 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 7,532,700
Series 2004, 5.250%, 6/01/19 - FGIC Insured
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, Catholic 9/09 at 102.00 AAA 5,363,800
Healthcare Partners, Series 1999A, 5.500%, 9/01/29 -
AMBAC Insured
3,065 Oak Hills Local School District, Hamilton County, Ohio, 12/15 at 100.00 AAA 3,207,001
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.6% (1.7% OF TOTAL INVESTMENTS)
7,000 Allegheny County, Pennsylvania, Airport Revenue Refunding 1/08 at 101.00 AAA 7,235,900
Bonds, Pittsburgh International Airport, Series 1997A,
5.250%, 1/01/16 (Alternative Minimum Tax) - MBIA Insured
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 3,138,990
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
2,500 Cumberland Valley School District, Cumberland County, 11/15 at 100.00 Aaa 2,644,550
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/20 - FSA Insured
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 AAA 2,082,740
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.4% (0.9% OF TOTAL INVESTMENTS)
5,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 5,615,700
Transportation Authority, Series 2003AA, 5.500%, 7/01/16 -
FGIC Insured
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.5% (0.4% OF TOTAL INVESTMENTS)
3,000 Charleston County School District, South Carolina, General 2/14 at 100.00 AAA 3,141,180
Obligation Bonds, Series 2004A, 5.000%, 2/01/22 -
AMBAC Insured
26
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.4% (0.9% OF TOTAL INVESTMENTS)
Knox County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A:
$ 7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA $ 2,732,700
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 1,712,450
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 884,290
Tennessee State School Bond Authority, Higher Educational
Facilities Second Program Bonds, Series 2005A:
1,400 5.000%, 5/01/24 - MBIA Insured 5/15 at 100.00 AAA 1,462,986
1,250 5.000%, 5/01/26 - MBIA Insured 5/15 at 100.00 AAA 1,304,275
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 22.6% (14.9% OF TOTAL INVESTMENTS)
8,000 Abilene Health Facilities Development Corporation, Texas, 3/06 at 102.00 AAA 8,176,480
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 5,424,810
Bonds, Series 1997, 5.125%, 11/15/20 - FSA Insured
3,135 Corpus Christi, Texas, Utility System Revenue Bonds, 7/14 at 100.00 AAA 3,357,397
Series 2004, 5.250%, 7/15/20 - FSA Insured
3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,257,130
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 3,855,006
Texas, General Obligation Bonds, Series 2003,
5.125%, 2/15/31 - FSA Insured
Harris County Hospital District, Texas, Revenue Refunding
Bonds, Series 1990:
1,165 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 1,236,962
2,235 7.400%, 2/15/10 - AMBAC Insured No Opt. Call AAA 2,429,467
4,500 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 4,661,910
Series 2001A, 5.000%, 3/01/22 - FSA Insured
4,685 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,941,410
Bonds, Series 2000A, 5.500%, 7/01/19 (Alternative Minimum
Tax) - FSA Insured
5,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 5,316,200
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
17,000 Houston, Texas, Junior Lien Water and Sewerage System No Opt. Call AAA 20,032,630
Revenue Refunding Bonds, Series 2002A, 5.750%, 12/01/32 -
FSA Insured
19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 19,843,392
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 6,355,680
General Obligation Bonds, Series 2001, 5.375%, 8/01/31 -
AMBAC Insured
2,000 Laredo Independent School District Public Facilities 8/11 at 100.00 AAA 2,046,480
Corporation, Texas, Lease Revenue Bonds, Series 2004A,
5.000%, 8/01/24 - AMBAC Insured
22,045 North Central Texas Health Facilities Development Corporation, 8/12 at 101.00 AAA 22,919,966
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 18,633,344
Collateralized Mortgage Loan Multifamily Housing Revenue
Bonds, Bardin Green Apartments Project, Series 2001,
6.600%, 9/20/42
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,215 Salt Lake City, Utah, Hospital Revenue Refunding Bonds, 11/05 at 100.00 AAA 3,357,039
IHC Hospitals Inc., Series 1988A, 8.000%, 5/15/07
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,575 Spotsylvania County, Virginia, Water and Sewerage System 6/15 at 100.00 AAA 2,699,785
Revenue Bonds, Series 2005, 5.000%, 6/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 11.0% (7.2% OF TOTAL INVESTMENTS)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 11,435,498
Consolidated System Revenue Refunding Bonds,
Series 2001C, 5.650%, 7/01/32 (Alternative Minimum Tax) -
MBIA Insured
27
Nuveen Insured Quality Municipal Fund, Inc. (NQI) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 4,640 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AAA $ 5,028,878
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 16,889,753
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 5,304,100
Bonds, Series 2000, 5.250%, 12/01/21 - FSA Insured
10,000 Washington, General Obligation Refunding Bonds, 1/12 at 100.00 AAA 10,455,000
Series R-2003A, 5.000%, 1/01/19 - MBIA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 AAA 2,658,825
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19 -
MBIA Insured
11,750 Washington Public Power Supply System, Revenue Refunding 7/08 at 102.00 AAA 12,381,210
Bonds, Nuclear Project 1, Series 1998A, 5.125%, 7/01/17 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.4% (1.6% OF TOTAL INVESTMENTS)
12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,788,722
Revenue Bonds, Infrastructure and Jobs Development
Council Program, Series 2000A, 5.500%, 10/01/39 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.7% (0.3% OF TOTAL INVESTMENTS)
2,180 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 2,264,015
Series 2004, 5.000%, 11/01/26 - FSA Insured
1,675 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 AAA 1,724,731
System Revenue Bonds, Series 2005A, 5.000%, 7/01/30
(WI, settling 11/02/05) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 930,394 Total Long-Term Investments (cost $843,130,570) - 151.5% 887,216,397
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 16,560,816
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.3)% (318,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 585,777,213
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): 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.
28
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 12.4% (8.2% OF TOTAL INVESTMENTS)
$ 3,815 Alabama Housing Finance Authority, GNMA Collateralized 7/06 at 102.00 Aaa $ 3,881,915
Multifamily Housing Revenue Refunding Bonds, Royal Hills
Apartments, Series 1995F, 6.500%, 7/20/30
11,000 Birmingham Special Care Facilities Financing Authority, 11/05 at 102.00 AAA 11,240,240
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 1995B, 5.875%, 11/15/20 - MBIA Insured
Birmingham Special Care Facilities Financing Authority,
Alabama, Revenue Bonds, Baptist Health System Inc.,
Series 1996A:
7,465 5.875%, 11/15/19 - MBIA Insured 11/06 at 102.00 AAA 7,783,905
1,750 5.875%, 11/15/26 - MBIA Insured 11/06 at 102.00 AAA 1,825,495
11,175 Hoover Board of Education, Alabama, Capital Outlay Tax 2/11 at 100.00 AAA 11,839,689
Anticipation Warrants, Series 2001, 5.250%, 2/15/22 -
MBIA Insured
3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA 3,867,975
Series 2005A, 5.000%, 6/01/24 - MBIA Insured
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 11,438,809
9,790 5.000%, 2/01/33 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 10,373,386
29,860 5.750%, 2/01/38 (Pre-refunded to 2/01/09) - FGIC Insured 2/09 at 101.00 AAA 32,323,450
18,760 Jefferson County, Alabama, Sewer Revenue Capitol 2/11 at 101.00 AAA 20,112,221
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 2002D:
425 5.000%, 2/01/38 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 454,882
14,800 5.000%, 2/01/42 (Pre-refunded to 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 15,904,376
10,195 Jefferson County, Alabama, Sewer Revenue Refunding 2/07 at 100.00 AAA 10,416,945
Warrants, Series 1997A, 5.375%, 2/01/27 - FGIC Insured
5,240 Jefferson County, Alabama, Sewer Revenue Refunding 2/11 at 101.00 AAA 5,635,934
Warrants, Series 2003B, 5.000%, 2/01/41 (Pre-refunded
to 2/01/11) - FGIC Insured
2,500 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 2,705,025
Improvement Warrants, Series 2002B, 5.125%, 2/01/42
(Pre-refunded to 8/01/12) - FGIC Insured
6,000 University of Alabama, Tuscaloosa, General Revenue Bonds, 7/14 at 100.00 AAA 6,215,160
Series 2004A, 5.000%, 7/01/29 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 2.4% (1.6% OF TOTAL INVESTMENTS)
11,245 Alaska Housing Finance Corporation, General Mortgage 6/09 at 100.00 AAA 11,598,768
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 11,717,277
Bonds, Series 1995A, 5.875%, 12/01/30 (Pre-refunded to
12/01/05) - MBIA Insured
3,190 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 3,324,171
Mortgage Program Bonds, First Series 1999A-1,
6.150%, 6/01/39
3,000 Alaska Student Loan Corporation, Student Loan Revenue Bonds, 7/08 at 100.00 AAA 3,080,040
Series 1998A, 5.250%, 7/01/14 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.4% (1.6% OF TOTAL INVESTMENTS)
Arizona State University, Certificates of Participation, Resh
Infrastructure Projects, Series 2005A:
2,000 5.000%, 9/01/25 - AMBAC Insured 3/15 at 100.00 AAA 2,083,920
2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AAA 2,080,820
1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 AAA 1,041,570
5.000%, 7/01/27 - AMBAC Insured
1,000 Maricopa County Union High School District 210, Phoenix, 7/14 at 100.00 AAA 1,049,030
Arizona, General Obligation Bonds, Series 2004A,
5.000%, 7/01/22 - FSA Insured
29
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA (continued)
$ 3,200 Mesa, Arizona, Street and Highway User Tax Revenue Bonds, 7/15 at 100.00 AAA $ 3,350,944
Series 2005, 5.000%, 7/01/24 - FSA Insured
1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AAA 1,196,265
Wastewater System Revenue Bonds, Series 2004,
5.000%, 7/01/27 - MBIA Insured
13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 13,714,204
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
MBIA Insured
5,695 Pima County Industrial Development Authority, Arizona, Lease 1/06 at 101.00 AAA 5,828,035
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 28.3% (18.6% OF TOTAL INVESTMENTS)
California Rural Home Mortgage Finance Authority, GNMA
Mortgage-Backed Securities Program Single Family Mortgage
Revenue Bonds, Series 1996A:
70 7.550%, 11/01/26 (Alternative Minimum Tax) No Opt. Call AAA 71,381
60 7.750%, 5/01/27 (Alternative Minimum Tax) No Opt. Call AAA 61,228
4,500 California, General Obligation Bonds, Series 1998, 10/08 at 101.00 AAA 4,700,655
5.000%, 10/01/19 - FGIC Insured
10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 AAA 10,467,600
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 -
AMBAC Insured
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
3,700 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 3,863,207
2,820 5.000%, 12/01/27 - MBIA Insured 12/14 at 100.00 AAA 2,929,416
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 32,409,600
35,000 5.375%, 5/01/18 - AMBAC Insured 5/12 at 101.00 AAA 37,815,400
3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 AAA 3,652,110
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/26 - FGIC Insured
20,000 Cucamonga County Water District, San Bernardino County, 9/11 at 101.00 AAA 20,555,400
California, Certificates of Participation, Water Shares
Purchase, Series 2000, 5.125%, 9/01/35 - FGIC Insured
5,750 East Bay Municipal Utility District, Alameda and Contra 6/15 at 100.00 AAA 5,996,618
Costa Counties, California, Water System Subordinated
Revenue Bonds, Series 2005A, 5.000%, 6/01/27 -
MBIA Insured
3,190 El Camino Community College District, California, General 8/15 at 100.00 AAA 3,393,554
Obligation Bonds, Series 2005, 5.000%, 8/01/18 - FSA Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 10,217,300
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/38 - FGIC Insured
5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 AAA 5,230,700
Revenue Refunding Bonds, Long Beach Aquarium of the
South Pacific, Series 2001, 5.250%, 11/01/30 -
AMBAC Insured
2,740 Los Angeles Harbors Department, California, Revenue Bonds, 8/16 at 102.00 AAA 2,837,160
Series 2006A, 5.000%, 8/01/22 (Alternative Minimum
Tax) (WI, settling 5/04/06) - FGIC Insured
20,000 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 20,934,200
Obligation Bonds, Series 2003A, 5.000%, 7/01/21 -
FSA Insured
12,500 Orange County, California, Recovery Certificates of 7/06 at 102.00 AAA 12,993,125
Participation, Series 1996A, 6.000%, 7/01/26 (Pre-refunded
to 7/01/06) - MBIA Insured
6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 AAA 6,353,982
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 15,611,700
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 AAA 5,149,950
6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,213,960
California, General Obligation Bonds, Series 2003,
5.000%, 7/01/26 - FSA Insured
2,285 Rio Hondo Community College District, California, General 8/15 at 100.00 AAA 2,415,816
Obligation Bonds, Series 2005A, 5.000%, 8/01/20 (WI,
settling 11/03/05) - FGIC Insured
30
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,500 Sacramento County Sanitation Financing Authority, 12/15 at 100.00 AAA $ 2,575,700
California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21 -
FGIC Insured
6,500 Salinas, California, GNMA Collateralized Housing Facility 1/06 at 101.00 AAA 6,572,150
Revenue Refunding Bonds, Villa Serra Project, Series 1994A,
6.600%, 7/20/30
13,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 AAA 14,101,832
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 11,829,245
Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 -
AMBAC Insured
San Francisco Bay Area Rapid Transit District, California, Sales
Tax Revenue Bonds, Series 2005A:
1,165 5.000%, 7/01/21 - MBIA Insured 7/15 at 100.00 AAA 1,227,467
1,220 5.000%, 7/01/22 - MBIA Insured 7/15 at 100.00 AAA 1,282,452
1,280 5.000%, 7/01/23 - MBIA Insured 7/15 at 100.00 AAA 1,342,438
66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 32,865,702
County, California, Senior Lien Toll Road Revenue Bonds,
Series 1993, 0.000%, 1/01/21
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
31,615 5.250%, 1/15/30 - MBIA Insured 1/07 at 102.00 AAA 32,854,940
21,500 0.000%, 1/15/32 - MBIA Insured No Opt. Call AAA 5,750,820
12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 AAA 13,028,756
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/20 - MBIA Insured
11,000 Santa Ana Financing Authority, California, Lease Revenue No Opt. Call AAA 13,318,800
Bonds, Police Administration and Housing Facility,
Series 1994A, 6.250%, 7/01/24 - MBIA Insured
5,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 AAA 5,122,600
Bonds, Turlock Irrigation District, Series 2004A,
5.000%, 1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.7% (5.0% OF TOTAL INVESTMENTS)
1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open 11/15 at 100.00 AAA 2,044,666
Space, Series 2005B, 5.250%, 11/01/24 - FSA Insured
1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AAA 1,037,170
Participation, Series 2004, 5.000%, 6/15/25 - MBIA Insured
10,000 Denver City and County, Colorado, Airport System Revenue 11/11 at 100.00 AAA 10,689,600
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 10,856,183
Bonds, Series 1996D, 5.500%, 11/15/25 - MBIA Insured
4,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 AAA 5,060,434
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/33 - XLCA Insured
1,740 Douglas County School District RE1, Douglas and Elbert 12/14 at 100.00 Aaa 1,805,076
Counties, Colorado, General Obligation Bonds, Series 2005B,
5.000%, 12/15/28 - FSA Insured
35,995 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call AAA 14,997,677
Bonds, Series 1997B, 0.000%, 9/01/23 - MBIA Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 34,008,744
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 7,332,756
Bonds, Series 2000B, 0.000%, 9/01/15 (Pre-refunded to
9/01/10) - MBIA Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call AAA 3,316,100
Series 2004A, 0.000%, 9/01/27 - MBIA Insured
1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,305,313
Obligation Bonds, Series 2004, 5.000%, 12/15/24 -
FSA Insured
2,500 Summit County School District RE-1, Summit, Colorado, 12/14 at 100.00 Aaa 2,616,000
General Obligation Bonds, Series 2004B,
5.000%, 12/01/24 - FGIC Insured
1,250 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,294,725
Series 2005, 5.000%, 6/01/30 - FGIC Insured
31
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 4,000 Connecticut, General Obligation Bonds, Series 2004D, 12/14 at 100.00 AAA $ 4,203,960
5.000%, 12/01/24 - MBIA Insured
2,100 Connecticut Health and Educational Facilities Authority, 11/15 at 100.00 AAA 2,235,156
Revenue Bonds, Connecticut State University System,
Series 2005G, 5.000%, 11/01/19 - FSA Insured
3,335 Greater New Haven Water Pollution Control Authority, 11/15 at 100.00 AAA 3,491,778
Connecticut, Regional Wastewater System Revenue Bonds,
Series 2005A, 5.000%, 11/15/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.0% (0.6% OF TOTAL INVESTMENTS)
1,915 District of Columbia Housing Finance Agency, GNMA 12/05 at 100.00 AAA 1,916,417
Collateralized Single Family Mortgage Revenue Bonds,
Series 1990B, 7.100%, 12/01/24 (Alternative Minimum Tax)
District of Columbia Water and Sewerage Authority, Subordinate
Lien Public Utility Revenue Bonds, Series 2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AAA 5,233,150
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AAA 5,219,900
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 7.5% (4.9% OF TOTAL INVESTMENTS)
3,445 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AAA 3,597,269
Series 2005, 5.000%, 10/01/24 - MBIA Insured
10,355 Florida Board of Education, Lottery Revenue Bonds, 7/15 at 101.00 AAA 10,937,572
Series 2005A, 5.000%, 7/01/22 - AMBAC Insured
6,020 Board of Regents, Florida State University, Housing Facility 5/15 at 101.00 AAA 6,267,121
Revenue Bonds, Series 2005A, 5.000%, 5/01/27 -
MBIA Insured
1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AAA 1,037,590
Participation, Master Lease Program, Series 2005A,
5.000%, 7/01/26 - MBIA Insured
Indian Trace Development District, Florida, Water Management
Special Benefit Assessment Bonds, Series 2005:
645 5.000%, 5/01/25 - MBIA Insured 5/15 at 102.00 Aaa 676,366
1,830 5.000%, 5/01/27 - MBIA Insured 5/15 at 102.00 Aaa 1,910,612
4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 AAA 4,761,433
Healthcare Facilities Revenue Bonds, Mayo Clinic,
Series 2001C, 5.500%, 11/15/36 - MBIA Insured
1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 AAA 1,581,725
Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
2,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 AAA 2,070,620
Series 2003, 5.000%, 10/01/27 - MBIA Insured
35,920 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 37,269,514
International Airport, Series 2002, 5.375%, 10/01/32
(Alternative Minimum Tax) - FGIC Insured
2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,190,377
International Airport, Series 2002A, 5.125%, 10/01/35
(Alternative Minimum Tax) - FSA Insured
5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 AAA 5,504,072
Jackson Health System, Series 2005B, 5.000%, 6/01/25 -
MBIA Insured
Northern Palm Beach County Improvement District, Florida,
Revenue Bonds, Water Control and Improvement Development Unit
9B, Series 2005:
1,290 5.000%, 8/01/23 - MBIA Insured 8/15 at 102.00 AAA 1,359,725
2,145 5.000%, 8/01/29 - MBIA Insured 8/15 at 102.00 AAA 2,234,940
Ocala, Florida, Utility System Revenue Bonds, Series 2005B:
1,025 5.250%, 10/01/24 - FGIC Insured 10/15 at 100.00 Aaa 1,103,331
2,590 5.000%, 10/01/27 - FGIC Insured 10/15 at 100.00 Aaa 2,689,430
2,320 Osceola County, Florida, Transportation Revenue Bonds, 4/14 at 100.00 Aaa 2,422,753
Osceola Parkway, Series 2004, 5.000%, 4/01/23 -
MBIA Insured
Plantation, Florida, Non-Ad Valorem Revenue Refunding and
Improvement Bonds, Series 2003:
2,010 5.000%, 8/15/16 - FSA Insured 8/13 at 100.00 Aaa 2,134,962
2,110 5.000%, 8/15/17 - FSA Insured 8/13 at 100.00 Aaa 2,236,262
2,225 5.000%, 8/15/18 -FSA Insured 8/13 at 100.00 Aaa 2,350,690
32
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6% (0.3% OF TOTAL INVESTMENTS)
$ 1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA $ 1,045,330
Series 2004, 5.000%, 11/01/22 - FSA Insured
1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AAA 1,652,848
Georgia, Revenue Bonds, Public Safety Project, Series 2004,
5.250%, 9/01/23 - MBIA Insured
Fulton County Development Authority, Georgia, Revenue Bonds,
Georgia Tech Molecular Science Building, Series 2004:
1,695 5.250%, 5/01/19 - MBIA Insured 5/14 at 100.00 AAA 1,825,515
1,135 5.250%, 5/01/20 - MBIA Insured 5/14 at 100.00 AAA 1,221,555
Glynn-Brunswick Memorial Hospital Authority, Georgia,
Revenue Bonds, Southeast Georgia Health Systems,
Series 1996:
640 5.250%, 8/01/13 (Pre-refunded to 8/01/06) - MBIA Insured 8/06 at 102.00 AAA 662,950
1,250 5.250%, 8/01/13 - MBIA Insured 8/06 at 102.00 AAA 1,292,700
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.2% (2.1% OF TOTAL INVESTMENTS)
Hawaii, General Obligation Bonds, Series 2005DF:
10,000 5.000%, 7/01/24 (DD, settling 11/03/05) - AMBAC Insured 7/15 at 100.00 AAA 10,455,700
5,000 5.000%, 7/01/25 - AMBAC Insured 7/15 at 100.00 AAA 5,219,850
24,250 Hawaii Department of Budget and Finance, Special Purpose 5/06 at 101.00 AAA 24,800,960
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1996A, 6.200%, 5/01/26 (Alternative Minimum Tax) -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
730 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 744,739
Series 1994B-1, 6.750%, 7/01/22
660 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aa1 674,348
Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
695 Idaho Housing Agency, Single Family Mortgage Senior Bonds, 1/06 at 101.00 Aaa 702,610
Series 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.4% (3.6% OF TOTAL INVESTMENTS)
1,050 Bedford Park, Illinois, General Obligation Bonds, Series 2004A, 12/14 at 100.00 AAA 1,133,192
5.250%, 12/15/20 - FSA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Refunding Bonds, O'Hare International Airport,
Series 2001E:
4,615 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,896,838
4,870 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,150,025
2,635 Eastern Illinois University, Auxiliary Facilities System Revenue 4/06 at 82.25 AAA 2,136,774
Bonds, Series 1989, 0.000%, 10/01/09 - MBIA Insured
10,000 Illinois Development Finance Authority, Revenue Bonds, 5/08 at 101.00 AAA 10,508,400
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 2,188,186
Robert Morris College, Series 2000, 5.800%, 6/01/30 -
MBIA Insured
7,000 Illinois Health Facilities Authority, Revenue Bonds, Hospital 6/08 at 101.00 Aaa 7,195,090
Sisters Services Inc. Obligated Group, Series 1998A,
5.000%, 6/01/18 - MBIA Insured
4,500 Illinois Health Facilities Authority, Revenue Bonds, Alexian 1/09 at 101.00 AAA 4,755,375
Brothers Health System, Series 1999, 5.000%, 1/01/19
(Pre-refunded to 1/01/09) - FSA Insured
22,410 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AAA 23,224,604
Series 2002, 5.125%, 2/01/27 - FGIC Insured
Schaumburg, Illinois, General Obligation Bonds, Series 2004B:
4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AAA 4,447,909
2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AAA 2,463,928
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.1% (2.0% OF TOTAL INVESTMENTS)
2,350 Cloverdale Multi-School Building Corporation, Putnam and 7/15 at 100.00 AAA 2,440,475
Owen Counties, Indiana, First Mortgage Bonds, Series 2005,
5.000%, 7/15/24 - MBIA Insured
2,030 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AAA 2,126,303
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/20 - FGIC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,404,668
Waterworks Project, Series 2002A, 5.250%, 7/01/33 -
MBIA Insured
33
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
$ 20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA $ 6,559,000
Series 1999E, 0.000%, 2/01/28 - AMBAC Insured
1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,382,210
County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 1/15/25 - FSA Insured
Noblesville Redevelopment Authority, Indiana, Economic
Development Lease Rental Bonds, Exit 10 Project, Series 2003:
3,110 5.000%, 1/15/21 - AMBAC Insured 7/13 at 100.00 AAA 3,227,527
5,000 5.000%, 1/15/28 - AMBAC Insured 7/13 at 100.00 AAA 5,133,100
10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 AAA 10,467,700
5.000%, 7/01/19 - MBIA Insured
3,705 Whitley County Middle School Building Corporation, 7/13 at 100.00 AAA 3,928,226
Columbia City, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/16 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,055 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 1,113,109
Obligation Bonds, Series 2004, 5.000%, 9/01/20 - FSA Insured
2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 2,166,813
5.000%, 9/01/23 - FSA Insured
5,000 University of Kansas Hospital Authority, Health Facilities 9/09 at 100.00 AAA 5,320,200
Revenue Bonds, KU Health System, Series 1999A,
5.650%, 9/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.8% (1.2% OF TOTAL INVESTMENTS)
3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aaa 4,066,828
School Building Revenue Bonds, Series 2004,
5.000%, 6/01/20 - MBIA Insured
3,770 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,941,799
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/24 - AMBAC Insured
12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AAA 14,058,508
Kentucky, Sewer and Drainage System Revenue Bonds,
Series 2001A, 5.500%, 5/15/34 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.4% (1.6% OF TOTAL INVESTMENTS)
5,000 De Soto Parish, Louisiana, Pollution Control Revenue Refunding 9/09 at 102.00 AAA 5,471,950
Bonds, Cleco Utility Group Inc. Project, Series 1999,
5.875%, 9/01/29 - AMBAC Insured
3,025 Lafayette City and Parish, Louisiana, Utilities Revenue Bonds, 11/14 at 100.00 AAA 3,204,020
Series 2004, 5.250%, 11/01/22 - MBIA Insured
1,640 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 AAA 1,714,194
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
MBIA Insured
Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 2,476,008
4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 4,554,823
5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 5,154,450
6,895 Orleans Levee District, Louisiana, Levee District General 12/05 at 103.00 AAA 7,109,848
Obligation Bonds, Series 1986, 5.950%, 11/01/15 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.2% (0.2% OF TOTAL INVESTMENTS)
3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,081,480
Revenue Bonds, Series 2003B, 5.000%, 7/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.6% (3.0% OF TOTAL INVESTMENTS)
22,500 Massachusetts Development Finance Authority, Revenue 1/12 at 101.00 AAA 23,869,125
Bonds, WGBH Educational Foundation, Series 2002A,
5.375%, 1/01/42 - AMBAC Insured
1,105 Massachusetts Housing Finance Agency, Housing Revenue 12/05 at 102.00 AAA 1,130,006
Refunding Bonds, Series 1995A, 6.100%, 12/01/16
(Pre-refunded to 12/01/05) - MBIA Insured
11,000 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 11,533,060
Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 -
FSA Insured
15,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 16,278,150
Bonds, Series 2004, 5.250%, 1/01/23 (Pre-refunded
to 1/01/14) - FGIC Insured
34
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS (continued)
University of Massachusetts Building Authority, Senior Lien
Project Revenue Bonds, Series 2004-1:
$ 1,500 5.375%, 11/01/20 - AMBAC Insured 11/14 at 100.00 AAA $ 1,632,720
2,500 5.375%, 11/01/21 - AMBAC Insured 11/14 at 100.00 AAA 2,719,250
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 7.9% (5.2% OF TOTAL INVESTMENTS)
6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 AAA 6,491,340
5.375%, 4/01/18 - MBIA Insured
5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,654,264
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 17,359,550
20,000 5.875%, 7/01/27 (Pre-refunded to 1/01/10) - FGIC Insured 1/10 at 101.00 AAA 22,015,200
Detroit, Michigan, Senior Lien Water Supply System Revenue
Bonds, Series 1997A:
1,280 5.000%, 7/01/27 (Pre-refunded to 7/01/07) - MBIA Insured 7/07 at 101.00 AAA 1,330,778
7,420 5.000%, 7/01/27 - MBIA Insured 7/07 at 101.00 AAA 7,630,580
8,000 Gaylord Community Schools, Otsego and Antrim Counties, 5/07 at 37.75 AAA 2,875,600
Michigan, School Building and Site Refunding Bonds,
Series 1992, 0.000%, 5/01/21 (Pre-refunded to 5/01/07) -
MBIA Insured
1,875 Grand Ledge Public Schools, Eaton, Clinton and Ionia Counties, 5/15 at 100.00 AAA 1,962,319
Michigan, General Obligation Bonds, Series 2005,
5.000%, 5/01/23 - FGIC 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 1,130,094
1,085 5.250%, 5/01/20 - AMBAC Insured 5/13 at 100.00 AAA 1,165,594
Michigan State Building Authority, Revenue Bonds, Facilities
Program, Series 2005II:
1,600 5.000%, 10/15/21 - AMBAC Insured 10/15 at 100.00 AAA 1,686,592
1,355 5.000%, 10/15/22 - AMBAC Insured 10/15 at 100.00 AAA 1,423,848
27,000 Okemos Public School District, Ingham County, Michigan, 5/06 at 34.54 AAA 9,187,290
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 10,680,300
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 7,192,226
Metropolitan Wayne County Airport, Series 1998A,
5.375%, 12/01/15 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.1% (0.7% OF TOTAL INVESTMENTS)
13,020 St. Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 13,858,358
GNMA Collateralized Multifamily Housing Revenue Bonds,
Marian Center Project, Series 2001A, 6.450%, 6/20/43
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
Nebraska Public Power District, General Revenue Bonds,
Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,045,180
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,044,420
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.2% (5.4% OF TOTAL INVESTMENTS)
12,105 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 12,368,768
Southern Nevada Water Authority Loan, Series 2002,
5.000%, 6/01/32 - MBIA Insured
7,370 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 AAA 7,712,189
Bonds, Series 2004A-2, 5.125%, 7/01/25 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier, Series
2000:
15,000 5.625%, 1/01/34 - AMBAC Insured 1/10 at 102.00 AAA 16,264,950
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 AAA 13,434,460
315 Nevada Housing Division, Single Family Mortgage Bonds, 4/06 at 100.00 Aa2 317,347
Senior Series 1994B-1, 6.700%, 10/01/17
240 Nevada Housing Division, Single Family Mortgage Bonds, 4/06 at 100.00 Aa2 240,583
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 42,538,140
Series 2002, 5.375%, 6/01/32 - FGIC Insured
35
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 AAA $ 10,357,500
Reno Transportation Rail Access Corridor Project,
Series 2002, 5.125%, 6/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.3% (1.5% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa 2,123,340
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,385,338
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
3,850 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 4,041,615
3,850 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 4,033,106
2,120 New Jersey Educational Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 2,233,356
Ramapo College, Series 2004E, 5.000%, 7/01/21 -
FGIC Insured
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A:
8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 AAA 8,675,535
2,000 5.000%, 1/01/23 - FSA Insured 7/13 at 100.00 AAA 2,082,540
2,795 Rutgers State University, New Jersey, Revenue Bonds, 5/14 at 100.00 AAA 2,936,120
Series 2004E, 5.000%, 5/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.3% (0.2% OF TOTAL INVESTMENTS)
3,660 San Juan County, New Mexico, Subordinate Gross Receipts 6/15 at 100.00 AAA 3,794,212
Tax Revenue Bonds, Series 2005, 5.000%, 6/15/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.1% (4.7% OF TOTAL INVESTMENTS)
8,685 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 9,171,186
General 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 2,616,425
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 5,196,600
10,525 New York City, New York, General Obligation Bonds, 4/15 at 100.00 AAA 10,937,264
Fiscal Series 2005M, 5.000%, 4/01/26 - FGIC Insured
5,000 New York City, New York, General Obligation Bonds, 9/15 at 100.00 AAA 5,243,200
Fiscal Series 2006F-1, 5.000%, 9/01/21 - AMBAC Insured
1,500 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,562,145
Water and Sewerage System Revenue Bonds,
Fiscal Series 2005C, 5.000%, 6/15/25 - MBIA Insured
1,000 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 1,042,570
Bonds, Mental Health Services Facilities Improvements,
Series 2005D, 5.000%, 2/15/23 - FGIC Insured
1,880 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,959,750
Mortgage Revenue Bonds, Montefiore Hospital,
Series 2004, 5.000%, 8/01/23 - FGIC Insured
5,000 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 5,214,400
Series 2005F, 5.000%, 1/01/26 - AMBAC Insured
3,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,031,110
Series 2005G, 4.750%, 1/01/29 - FSA Insured
New York State Thruway Authority, Highway and Bridge Trust
Fund Bonds, Second Generation, Series 2005B:
3,770 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 3,976,445
7,000 5.000%, 4/01/22 - AMBAC Insured 10/15 at 100.00 AAA 7,360,220
3,500 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 3,710,735
Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/19 -
FSA Insured
New York State Urban Development Corporation, State
Personal Income Tax Revenue Bonds, Series 2004A-1:
1,000 5.000%, 3/15/23 - FGIC Insured 3/14 at 100.00 AAA 1,041,230
5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,195,500
36
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
$ 4,825 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA $ 5,053,657
1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,741,390
15,000 Triborough Bridge and Tunnel Authority, New York, 11/12 at 100.00 AAA 15,397,800
Subordinate Lien General Purpose Revenue Refunding
Bonds, Series 2002E, 5.000%, 11/15/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.4% (0.9% OF TOTAL INVESTMENTS)
Mooresville, North Carolina, Enterprise System Revenue
Bonds, Series 2004:
2,115 5.000%, 5/01/22 - FGIC Insured 5/14 at 100.00 AAA 2,214,109
2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 AAA 2,678,953
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,353,650
Revenue Bonds, Series 2003A, 5.250%, 1/01/16 - FSA Insured
Raleigh Durham Airport Authority, North Carolina, Airport
Revenue Bonds, Series 2005A:
3,205 5.000%, 5/01/23 - AMBAC Insured 5/15 at 100.00 Aaa 3,349,193
3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aaa 3,435,466
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.8% (0.6% OF TOTAL INVESTMENTS)
Grand Forks, North Dakota, Sales Tax Revenue Bonds,
Alerus Project, Series 2005A:
2,195 5.000%, 12/15/22 - MBIA Insured 12/15 at 100.00 Aaa 2,309,799
1,355 5.000%, 12/15/23 - MBIA Insured 12/15 at 100.00 Aaa 1,422,465
3,000 5.000%, 12/15/24 - MBIA Insured 12/15 at 100.00 Aaa 3,141,870
3,600 North Dakota Water Commission, Water Development and 8/15 at 100.00 AAA 3,759,336
Management Program Bonds, Series 2005B, 5.000%, 8/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 2.8% (1.9% OF TOTAL INVESTMENTS)
2,650 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 AAA 2,831,949
Series 2004, 5.250%, 6/01/24 - FGIC Insured
2,000 Columbus City School District, Franklin County, Ohio, General 12/14 at 100.00 AAA 2,143,880
Obligation Bonds, Series 2004, 5.250%, 12/01/25 -
FSA Insured
2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 AAA 2,476,775
Project, Series 2004A, 5.000%, 12/01/22 - AMBAC Insured
2,205 Hamilton City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 Aaa 2,308,348
Series 2005, 5.000%, 12/01/24 - MBIA Insured
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 AAA 21,040,077
Healthcare Obligated Group, Series 1999, 5.375%, 11/15/39 -
AMBAC Insured
3,000 Ross Local School District, Butler County, Ohio, General 12/13 at 100.00 Aaa 3,101,610
Obligation Bonds, Series 2003, 5.000%, 12/01/28 -
FSA Insured
1,530 Tallmadge City School District, Ohio, General Obligation 6/15 at 100.00 AAA 1,587,146
Bonds, Series 2005, 5.000%, 12/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
2,515 Oklahoma State University, Athletic Facilities Revenue Bonds, 8/14 at 100.00 AAA 2,593,191
Series 2004, 5.000%, 8/01/34 - AMBAC Insured
5,575 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 6,017,265
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 5,534,576
Oklahoma Medical Research Foundation, Series 2001,
5.250%, 2/01/21 - AMBAC Insured
4,880 University of Oklahoma, Student Housing Revenue Bonds, 7/14 at 100.00 Aaa 5,112,093
Series 2004, 5.000%, 7/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.8% (0.5% OF TOTAL INVESTMENTS)
Oregon Department of Administrative Services, Certificates
of Participation, Series 2005A:
2,535 5.000%, 5/01/25 - FSA Insured 5/15 at 100.00 AAA 2,635,082
2,115 5.000%, 5/01/30 - FSA Insured 5/15 at 100.00 AAA 2,178,704
37
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
OREGON (continued)
$ 3,470 Oregon Department of Administrative Services, Certificates 11/15 at 100.00 AAA $ 3,693,329
of Participation, Series 2005B, 5.000%, 11/01/18 -
FGIC Insured
1,470 Oregon Housing and Community Services Department, 1/06 at 102.00 Aa2 1,500,797
Single Family Mortgage Revenue Bonds, Series 1995A,
6.450%, 7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,000 Cumberland Valley School District, Cumberland County, 11/15 at 100.00 Aaa 1,057,820
Pennsylvania, General Obligation Bonds, Series 2005,
5.000%, 11/15/20 - FSA Insured
1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 1,869,660
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
MBIA Insured
6,335 Radnor Township School District, Delaware County, 8/15 at 100.00 Aaa 6,560,273
Pennsylvania, General Obligation Bonds, Series 2005B,
5.000%, 2/15/30 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.2% OF TOTAL INVESTMENTS)
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/13 at 100.00 AAA 2,166,300
Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,595,975
Series 2005RR, 5.000%, 7/01/30 - XLCA Insured
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 2.1% (1.4% OF TOTAL INVESTMENTS)
2,195 Providence Housing Development Corporation, Rhode Island, 1/06 at 101.00 AAA 2,219,847
FHA-Insured Section 8 Assisted Mortgage Revenue Refunding
Bonds, Barbara Jordan Apartments, Series 1994A,
6.750%, 7/01/25 - MBIA Insured
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 AAA 22,095,187
Special Obligation Refunding Bonds, Series 1993B,
5.250%, 8/01/21 (Pre-refunded to 2/01/11) - MBIA Insured
1,405 Rhode Island Health and Educational Building Corporation, 9/14 at 100.00 Aaa 1,536,325
Higher Education Auxiliary Enterprise Revenue Bonds,
Series 2004A, 5.500%, 9/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 3.9% (2.6% OF TOTAL INVESTMENTS)
10,000 Beaufort County, South Carolina, Tax Increment Bonds, 12/12 at 100.00 AAA 10,309,200
New River Redevelopment Project, Series 2002,
5.000%, 6/01/27 - MBIA Insured
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
2,000 5.250%, 8/15/22 - MBIA Insured 8/14 at 100.00 AAA 2,122,660
2,105 5.250%, 8/15/23 - MBIA Insured 8/14 at 100.00 AAA 2,229,384
Piedmont Municipal Power Agency, South Carolina,
Electric Revenue Bonds, Series 1988A:
9,190 0.000%, 1/01/13 (Pre-refunded to 7/01/09) - AMBAC Insured 7/09 at 76.63 AAA 6,167,869
4,855 0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 3,454,672
0.000%, 1/01/13 - AMBAC Insured No Opt. Call AAA 5,664,040
8,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 8,462,000
Industrial Revenue Bonds, South Carolina Electric and
Gas Company, Series 2002A, 5.200%, 11/01/27 -
AMBAC Insured
10,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 AAA 10,472,700
Industrial Revenue Bonds, South Carolina Electric and
Gas Company, Series 2002B, 5.450%, 11/01/32
(Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS)
6,455 Memphis-Shelby County Airport Authority, Tennessee, 3/11 at 100.00 AAA 6,847,077
Airport Revenue Bonds, Series 2001A, 5.500%, 3/01/18
(Alternative Minimum Tax) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 16.6% (10.9% OF TOTAL INVESTMENTS)
Austin, Texas, Tax and Revenue Solid Waste Certificates of
Obligation, Series 2002:
2,150 5.375%, 9/01/18 (Pre-refunded to 9/01/12) - MBIA Insured 9/12 at 100.00 AAA 2,358,507
2,250 5.375%, 9/01/19 (Pre-refunded to 9/01/12) - MBIA Insured 9/12 at 100.00 AAA 2,468,205
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 5/08 at 102.00 AAA 23,624,856
Houston Industries Inc., Series 1998C, 5.125%, 5/01/19
(Optional put 5/01/08) - AMBAC Insured
805 Capital Area Housing Finance Corporation, Texas, 4/12 at 106.00 AAA 818,415
FNMA Backed Single Family Mortgage Revenue Refunding
Bonds, Series 2002A-2, 6.300%, 4/01/35 (Alternative
Minimum Tax) - AMBAC Insured
38
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA $ 13,489,625
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 25,801,250
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 4,223,880
39,000 0.000%, 8/15/19 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 50.26 AAA 17,086,290
7,280 0.000%, 8/15/20 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 46.91 AAA 2,977,447
5,085 0.000%, 8/15/21 (Pre-refunded to 8/15/09) - AMBAC Insured 8/09 at 43.80 AAA 1,941,402
6,570 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA 7,131,669
Series 2001A, 5.375%, 3/01/19 (Pre-refunded to 3/01/11) -
FSA Insured
4,170 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,451,934
Bonds, Series 2000B, 5.500%, 7/01/30 - FSA Insured
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 AAA 18,143,825
Bonds, Convention and Entertainment Project, Series 2001B,
5.250%, 9/01/33 - AMBAC Insured
4,671 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 4,893,153
Collateralized Mortgage Multifamily Housing Revenue Bonds,
RRG Apartments Project, Series 2001, 6.350%, 3/20/42
Houston, Texas, First Lien Combined Utility System Revenue
Bonds, Series 2004A:
4,000 5.250%, 5/15/24 - FGIC Insured 5/14 at 100.00 AAA 4,252,960
5,000 5.250%, 5/15/25 - MBIA Insured 5/14 at 100.00 AAA 5,308,850
23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 AAA 24,913,151
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist
Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41 -
AMBAC Insured
8,205 Lower Colorado River Authority, Texas, Revenue Refunding 5/11 at 100.00 AAA 8,537,795
and Improvement Bonds, Series 2001A, 5.000%, 5/15/21 -
MBIA Insured
Port of Houston Authority, 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 3,382,172
3,375 5.500%, 10/01/19 (Alternative Minimum Tax) - FGIC Insured 10/11 at 100.00 AAA 3,561,030
7,205 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 7,651,494
Bonds, Series 2001, 5.375%, 7/01/15 (Alternative
Minimum Tax) - FGIC Insured
Tarrant County Health Facilities Development Corporation, Texas,
Revenue Bonds, Texas Health Resources System, Series 1997A:
2,900 5.250%, 2/15/22 - MBIA Insured 2/08 at 102.00 AAA 3,018,407
6,820 5.000%, 2/15/26 - MBIA Insured 2/08 at 101.00 AAA 6,914,048
7,410 Texas Department of Housing and Community Affairs, 9/06 at 102.00 AAA 7,657,865
Single 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 2/14 at 100.00 AAA 1,990,449
of Obligation, Series 2004, 5.000%, 2/01/21 - MBIA Insured
1,840 Ysleta Independent School District Public Facility Corporation, 11/09 at 100.00 AAA 1,939,783
Texas, Lease Revenue Refunding Bonds, Series 2001,
5.375%, 11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AAA 2,062,160
5.000%, 7/01/28 - FGIC Insured
1,810 Utah Housing Finance Agency, FHA-Insured Section 8 Assisted 1/06 at 100.00 AA 1,812,878
Multifamily Housing Revenue Bonds, Series 1992A,
7.400%, 7/01/24
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.6% (1.7% OF TOTAL INVESTMENTS)
8,000 Greater Richmond Convention Center Authority, Virginia, 6/15 at 100.00 AAA 8,255,520
Hotel Tax Revenue Bonds, Series 2005, 5.000%, 6/15/30 -
MBIA Insured
1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,110,948
Lease Revenue Bonds, Public Safety Facilities, Series 2003A,
5.250%, 12/15/20 - FSA Insured
4,840 Metropolitan Washington D.C. Airports Authority, Airport 10/11 at 101.00 AAA 5,137,370
System Revenue Bonds, Series 2001A, 5.500%, 10/01/19
(Alternative Minimum Tax) - MBIA Insured
39
Nuveen Insured Municipal Opportunity Fund, Inc. (NIO) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA (continued)
$ 4,265 Metropolitan Washington D.C. Airports Authority, Airport 10/14 at 100.00 AAA $ 4,456,712
System Revenue Bonds, Series 2004A, 5.000%, 10/01/20 -
MBIA Insured
3,000 Upper Occoquan Sewerage Authority, Virginia, Regional Sewer 7/15 at 100.00 AAA 3,170,580
Revenue Bonds, Series 2005, 5.000%, 7/01/21 - FSA Insured
10,000 Virginia Housing Development Authority, Commonwealth 7/11 at 100.00 AAA 10,236,800
Mortgage Bonds, Series 2001H-1, 5.375%, 7/01/36 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 1.2% (0.8% OF TOTAL INVESTMENTS)
2,500 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 AAA 2,574,900
Bonds, Wanapum Hydroelectric Development, Series 2005A,
5.000%, 1/01/29 - FGIC Insured
3,500 King County School District 401, Highline, Washington, 12/14 at 100.00 AAA 3,633,140
General Obligation Bonds, Series 2004, 5.000%, 10/01/24 -
FGIC Insured
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AAA 3,469,896
Bonds, Series 2000, 5.500%, 7/01/25 (Pre-refunded
to 7/01/10) - AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, 1/06 at 100.00 AAA 5,016,403
Generation System Revenue Bonds, Series 1989,
6.650%, 1/01/16 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
10,000 Harrison County Commission, West Virginia, Solid Waste 11/05 at 100.00 AAA 10,157,600
Disposal Revenue Bonds, West Penn Power Company -
Harrison Station, Series 1993B, 6.300%, 5/01/23
(Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 4.1% (2.7% OF TOTAL INVESTMENTS)
1,675 Wisconsin Public Power Incorporated System, Power 7/15 at 100.00 AAA 1,724,731
Supply System Revenue Bonds, Series 2005A,
5.000%, 7/01/30 (WI, settling 11/02/05) - AMBAC Insured
680 Wisconsin Housing and Economic Development Authority, 1/06 at 100.00 AAA 681,149
Housing Revenue Bonds, Series 1992A,
6.850%, 11/01/12 - MBIA Insured
2,890 Wisconsin, General Obligation Bonds, Series 2004-3, 5/14 at 100.00 AAA 3,103,971
5.250%, 5/01/20 - FGIC Insured
10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5/14 at 100.00 AAA 11,489,623
5.000%, 5/01/20 - MBIA Insured
15,000 Wisconsin Health and Educational Facilities Authority, 2/07 at 102.00 AAA 15,664,650
Revenue Bonds, Marshfield Clinic, Series 1997,
5.750%, 2/15/27 - MBIA Insured
18,000 Wisconsin Health and Educational Facilities Authority, 8/07 at 102.00 AAA 18,826,380
Revenue Bonds, Aurora Healthcare Inc., Series 1997,
5.250%, 8/15/17 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 1,982,596 Total Long-Term Investments (cost $1,810,645,575) - 152.4% 1,911,596,344
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.8% 23,041,563
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.2)% (680,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,254,637,907
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's or Moody's rating.
(DD) Security purchased on a delayed delivery basis.
(WI) Security purchased on a when-issued basis.
See accompanying notes to financial statements.
40
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
$ 3,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 8/15 at 100.00 AAA $ 3,298,176
5.000%, 8/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.1% (1.4% OF TOTAL INVESTMENTS)
6,185 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 6,287,795
Water System Revenue Bonds, Series 2005,
4.750%, 7/01/25 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.4% (0.9% OF TOTAL INVESTMENTS)
4,020 Northwest Community College District, Arkansas, General 5/15 at 100.00 AAA 4,214,166
Obligation Bonds, Series 2005, 5.000%, 5/15/23 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 28.7% (18.8% OF TOTAL INVESTMENTS)
ABAG Finance Authority for Non-Profit Corporations, California,
Insured Certificates of Participation, Children's Hospital
Medical Center of Northern California, Series 1999:
6,750 5.875%, 12/01/19 - AMBAC Insured 12/09 at 101.00 AAA 7,414,740
6.000%, 12/01/29 - AMBAC Insured 12/09 at 101.00 AAA 10,993,900
1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 AAA 1,329,688
Revenue Bonds, Pacific Gas and Electric Company,
Series 1996A, 5.350%, 12/01/16 (Alternative Minimum Tax) -
MBIA Insured
1,000 California Department of Water Resources, Water System 12/14 at 100.00 AAA 1,041,070
Revenue Bonds, Central Valley Project, Series 2005AC,
5.000%, 12/01/26 - MBIA Insured
1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,045,652
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/26 -
FSA Insured
85 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 85,453
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I,
7.150%, 12/30/24 (Alternative Minimum Tax)
115 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 115,630
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III,
7.450%, 6/30/25 (Alternative Minimum Tax)
4,975 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 6,796,745
Single Family Residential Mortgage Revenue Bonds,
Series 1984A, 10.250%, 7/01/17
1,690 Los Angeles Community College District, Los Angeles County, 8/15 at 100.00 AAA 1,768,889
California, General Obligation Bonds, Series 2005A,
5.000%, 8/01/24 - FSA Insured
5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call AAA 6,720,350
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - MBIA Insured
8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,609,268
Mortgage Revenue Refunding Bonds, Series 1990B,
7.500%, 8/01/23
10,305 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 13,112,082
Program Single Family Mortgage Revenue Refunding Bonds,
Series 1990A, 7.500%, 5/01/23
13,755 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 16,502,974
Securities Program Single Family Home 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 4,428,613
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.125%, 5/01/19 (Alternative
Minimum Tax) - MBIA Insured
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,157,640
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 7.1% (4.7% OF TOTAL INVESTMENTS)
1,500 Adams and Arapahoe Counties Joint School District 28J, 12/13 at 100.00 AAA 1,592,640
Aurora, Colorado, General Obligation Bonds, Series 2003A,
5.125%, 12/01/21 - FSA Insured
2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 AAA 2,654,450
Refunding Bonds, Series 2002E, 5.500%, 11/15/18 (Alternative
Minimum Tax) - FGIC Insured
41
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO (continued)
$ 6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA $ 6,625,080
Bonds, Series 2000A, 5.750%, 9/01/29 - MBIA Insured
4,405 Garfield, Eagle and Pitkin Counties School District RE-1, 12/14 at 100.00 AAA 4,599,921
Roaring Fork, Colorado, General Obligation Bonds,
Series 2005A, 5.000%, 12/15/24 - FSA Insured
2,065 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 2,156,376
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA Insured
1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AAA 1,457,679
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 -
MBIA Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/12 at 100.00 AAA 1,049,790
Series 2002A, 5.000%, 6/01/19 - FGIC Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 4.8% (3.2% OF TOTAL INVESTMENTS)
2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 AAA 2,383,689
5.000%, 2/01/23 - MBIA Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, 10/13 at 100.00 AAA 1,580,580
Series 2004A, 5.000%, 10/01/19 - FGIC Insured
4,145 Miami, Florida, General Obligation Bonds, Series 2002, 1/12 at 100.00 AAA 4,312,997
5.000%, 1/01/22 - MBIA Insured
4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 AAA 4,584,500
Bonds, Series 2003-1, 5.250%, 10/01/17 - MBIA Insured
1,415 Taylor County, Florida, Sales Tax Revenue Bonds, Series 2005, 10/15 at 100.00 AAA 1,475,067
5.000%, 10/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 6.3% (4.1% OF TOTAL INVESTMENTS)
2,950 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 3,058,501
5.000%, 1/01/25 - FSA Insured
8,000 Fulton-DeKalb Hospital Authority, Georgia, Revenue Refunding 1/14 at 100.00 AAA 8,623,920
Certificates, Series 2003, 5.250%, 1/01/16 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue 8/09 at 102.00 AAA 7,004,790
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 5.500%, 8/01/25 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.8% (2.5% OF TOTAL INVESTMENTS)
8,030 Hawaii Department of Transportation, Airport System 7/10 at 101.00 AAA 8,915,950
Revenue 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 2,420,257
Revenue Bonds, Hawaiian Electric Company Inc.,
Series 1999D, 6.150%, 1/01/20 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.9% (9.8% OF TOTAL INVESTMENTS)
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 4,168,520
5.000%, 12/01/22 - FGIC Insured
10,000 Chicago, Illinois, General Obligation Refunding Bonds, 1/10 at 101.00 AAA 10,696,400
Series 2000D, 5.500%, 1/01/35 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call AAA 9,339,636
Certificates, Series 1992A, 6.250%, 1/01/15 - MBIA Insured
23,110 Illinois Development Finance Authority, Local Government No Opt. Call Aaa 13,937,641
Program Revenue Bonds, Kane, Cook and DuPage Counties
School District U46 - Elgin, Series 2002, 0.000%, 1/01/17 -
FSA Insured
5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 2,339,319
Refunding Bonds, McCormick Place Expansion Project,
Series 1996A, 0.000%, 12/15/21 - MBIA Insured
3,225 Regional Transportation Authority, Cook, DuPage, Kane, Lake, No Opt. Call AAA 3,813,982
McHenry and Will Counties, Illinois, General Obligation Bonds,
Series 1992A, 9.000%, 6/01/09 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.9% (3.2% OF TOTAL INVESTMENTS)
4,725 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AAA 4,993,664
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/17 - FGIC Insured
42
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
Indiana University, Parking Facility Revenue Bonds, Series 2004:
$ 1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 AAA $ 1,090,110
1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 AAA 1,137,613
1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 AAA 1,178,837
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AAA 3,590,385
Series 1999E, 0.000%, 2/01/25 - AMBAC Insured
1,000 Metropolitan School District Steuben County K-5 Building 7/14 at 102.00 AAA 1,077,640
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.250%, 1/15/21 - FSA Insured
1,490 North Lawrence Community Schools Building Corporation, 1/14 at 100.00 AAA 1,557,706
Marion County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 7/15/19 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary 6/13 at 100.00 Aaa 3,495,659
Greeley Medical Center, Series 2003, 5.000%, 6/15/17 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,245 Kansas Development Finance Authority, Board of Regents, 4/15 at 100.00 AAA 1,303,503
Revenue Bonds, Kansas State University Housing System,
Series 2005A, 5.000%, 4/01/23 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.7% (1.1% OF TOTAL INVESTMENTS)
5,000 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 AAA 5,174,100
Bonds, Baltimore-Washington International Airport Passenger
Facility, Series 2002B, 5.125%, 3/01/21 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.4% (1.6% OF TOTAL INVESTMENTS)
1,280 Massachusetts Health and Educational Facilities Authority, 8/15 at 100.00 AAA 1,338,394
Revenue Bonds, Lahey Clinic Medical Center, Series 2005C,
5.000%, 8/15/21 - FGIC Insured
4,400 Massachusetts School Building Authority, Dedicated Sales 8/15 at 100.00 AAA 4,613,224
Tax Revenue Bonds, Series 2005A, 5.000%, 8/15/23 -
FSA Insured
1,000 Massachusetts, Special Obligation Dedicated Tax Revenue 1/14 at 100.00 AAA 1,085,210
Bonds, Series 2004, 5.250%, 1/01/21 (Pre-refunded to
1/01/14) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.6% (2.4% OF TOTAL INVESTMENTS)
6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AAA 6,843,135
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 (Alternative
Minimum Tax) - AMBAC Insured
3,810 Michigan Housing Development Authority, GNMA 8/12 at 102.00 Aaa 3,942,626
Collateralized Limited Obligation Multifamily Housing
Revenue Bonds, Cranbrook Apartments, Series 2001A,
5.500%, 2/20/43 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AAA 5,219,154
Minnesota, Airport Revenue Bonds, Series 2001B,
5.750%, 1/01/15 (Alternative Minimum Tax) - FGIC Insured
175 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/06 at 101.00 AAA 177,373
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 3.6% (2.3% OF TOTAL INVESTMENTS)
7,495 Jefferson County Industrial Development Authority, Missouri, 8/07 at 100.00 AAA 8,481,042
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 2,096,860
Bonds, Series 2003, 5.000%, 10/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 8.4% (5.5% OF TOTAL INVESTMENTS)
3,000 Clark County, Nevada, General Obligation Bank Bonds, 12/12 at 100.00 AAA 3,065,370
Southern Nevada Water Authority Loan, Series 2002,
5.000%, 6/01/32 - MBIA Insured
8,000 Clark County, Nevada, Subordinate Lien Airport Revenue 7/11 at 100.00 AAA 8,613,600
Bonds, Series 2001B, 5.125%, 7/01/21 (Pre-refunded
to 7/01/11) - FGIC Insured
7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue 6/12 at 100.00 AAA 8,307,123
Bonds, Reno Transportation Rail Access Corridor Project,
Series 2002, 5.250%, 6/01/41 - AMBAC Insured
43
Nuveen Premier Insured Municipal Income Fund, Inc. (NIF) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA (continued)
$ 5,050 Washoe County, Nevada, Gas and Water Facilities Remarketed 1/06 at 100.50 AAA $ 5,136,254
Revenue Refunding Bonds, Sierra Pacific Power Company,
Series 1987, 6.300%, 12/01/14 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 1.1% (0.7% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,200 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,259,724
1,200 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,257,072
800 Rutgers State University, New Jersey, Certificates of 1/14 at 100.00 AAA 831,752
Participation, Lower Georges Street University Redevelopment
Associates LLC, Series 2004, 5.000%, 1/01/24 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 7.3% (4.8% OF TOTAL INVESTMENTS)
10,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 10,676,600
Revenue Refunding Bonds, Series 2002F, 5.250%, 11/15/27 -
MBIA Insured
1,000 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,041,430
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/25 - MBIA Insured
1,510 Dormitory Authority of the State of New York, Revenue 2/15 at 100.00 AAA 1,573,103
Bonds, Mental Health Services Facilities Improvements,
Series 2005B, 5.000%, 2/15/24 - AMBAC Insured
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,042,420
Mortgage Revenue Bonds, Montefiore Hospital,
Series 2004, 5.000%, 8/01/23 - FGIC Insured
5,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 5,955,189
Series 2005G, 5.000%, 1/01/26 - FSA Insured
1,450 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA 1,529,402
Fund Bonds, Second Generation, Series 2005B,
5.000%, 4/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.2% (1.4% OF TOTAL INVESTMENTS)
3,100 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA 3,211,011
Mortgage Revenue Bonds, Betsy Johnson Regional Hospital
Project, Series 2003, 5.125%, 10/01/32 - FSA Insured
3,050 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,194,478
Revenue Bonds, Series 2005A, 5.000%, 5/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,500 Tallmadge City School District, Ohio, General Obligation Bonds, 6/15 at 100.00 AAA 1,556,025
Series 2005, 5.000%, 12/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,180 Oklahoma Housing Finance Agency, GNMA Collateralized No Opt. Call AAA 1,273,609
Single Family Mortgage Revenue Bonds, Series 1987A,
7.997%, 8/01/18 (Alternative Minimum Tax)
3,000 Tulsa Industrial Authority, Oklahoma, GNMA Collateralized 11/05 at 103.00 Aaa 3,106,860
Multifamily Housing Revenue Bonds, Country Club of
Woodland Hills Project, Series 1995, 6.250%, 11/01/27
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 5.9% (3.9% OF TOTAL INVESTMENTS)
Oregon Health Sciences University, Revenue Bonds, Series 2002A:
5,000 5.000%, 7/01/26 - MBIA Insured 1/13 at 100.00 AAA 5,177,750
7,000 5.000%, 7/01/32 - MBIA Insured 1/13 at 100.00 AAA 7,201,180
4,905 Oregon Health, Housing, Educational and Cultural Facilities 3/12 at 105.00 Aaa 5,289,307
Authority, GNMA Mortgage-Backed Securities Program
Assisted Living Project Revenue Bonds, Necanicum Village
LLC, Series 2001A, 6.850%, 6/20/42
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 1,569,495
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 1.6% (1.1% OF TOTAL INVESTMENTS)
2,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call AAA 2,252,520
Transportation Authority, Series 2003AA, 5.500%, 7/01/17 -
MBIA Insured
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
44
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 3.6% (2.4% OF TOTAL INVESTMENTS)
$ 3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aaa $ 3,135,810
Government Public Improvement Lease Bonds, Oak Ridge,
Series 2005B-9-A, 5.000%, 6/01/24 - AMBAC Insured
2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue 10/14 at 100.00 AAA 2,156,661
Bonds, Series 2004, 5.000%, 10/01/22 - FSA Insured
5,000 Metropolitan Government of Nashville-Davidson County Health 11/09 at 101.00 AAA 5,515,350
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 - 10.5% (6.9% OF TOTAL INVESTMENTS)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,078,125
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
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 4,911,301
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 AAA 5,164,128
7,600 San Antonio, Texas, Airport System Improvement Revenue 7/11 at 101.00 AAA 8,037,152
Bonds, Series 2001, 5.375%, 7/01/16 (Alternative
Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 19.0% (12.4% OF TOTAL INVESTMENTS)
5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA 5,302,700
Consolidated System Revenue Bonds, Series 2001B,
5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured
1,570 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aaa 1,687,954
General Obligation Bonds, Series 2002, 5.250%, 12/01/18 -
FSA Insured
King County School District 405, Bellevue, Washington,
General Obligation Bonds, Series 2002:
12,060 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AAA 12,641,654
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AAA 13,381,676
Pierce County School District 343, Dieringer, Washington,
General Obligation Refunding Bonds,
Series 2003:
2,755 5.250%, 12/01/18 - FGIC Insured 6/13 at 100.00 Aaa 2,954,049
2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aaa 3,206,027
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 AAA 5,064,853
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 968,148
Terminal 18, Series 1999C, 6.000%, 9/01/29 (Alternative
Minimum Tax) - MBIA Insured
1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 12/12 at 100.00 AAA 1,329,173
5.000%, 12/01/18 - FGIC Insured
4,200 Tacoma, Washington, Solid Waste Utility Revenue Refunding 12/11 at 100.00 AAA 4,466,155
Bonds, Series 2001, 5.250%, 12/01/20 - AMBAC Insured
5,000 Washington, General Obligation Bonds, Series 2001C, 1/11 at 100.00 AAA 5,267,400
5.250%, 1/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 435,380 Total Long-Term Investments (cost $427,505,598) - 151.9% 452,188,446
=============-----------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,500 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ 1,500,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2000, 2.730%, 7/01/30 - FSA Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 1,500 Total Short-Term Investments (cost $1,500,000) 1,500,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $429,005,598) - 152.4% 453,688,446
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.7% 4,935,191
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (54.1)% (161,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 297,623,637
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's or Moody's rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
45
Nuveen Insured Premium Income Municipal Fund 2 (NPX)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 2.5% (1.7% OF TOTAL INVESTMENTS)
$ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 AAA $ 3,867,975
Series 2005A, 5.000%, 6/01/24 - MBIA Insured
Jefferson County, Alabama, General Obligation Warrants,
Series 2004A:
1,500 5.000%, 4/01/21 - MBIA Insured 4/14 at 100.00 AAA 1,571,820
1,395 5.000%, 4/01/22 - MBIA Insured 4/14 at 100.00 AAA 1,457,789
1,040 5.000%, 4/01/23 - MBIA Insured 4/14 at 100.00 AAA 1,084,574
Montgomery Water and Sewerage Board, Alabama, Water
and Sewerage Revenue Bonds, Series 2005:
2,220 5.000%, 3/01/24 - FSA Insured 3/15 at 100.00 AAA 2,318,324
2,590 5.000%, 3/01/25 - FSA Insured 3/15 at 100.00 AAA 2,700,697
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.4% (1.6% OF TOTAL INVESTMENTS)
12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 12,522,159
Water System Revenue Bonds, Series 2005,
4.750%, 7/01/27 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS)
7,745 Arkansas Development Finance Authority, State Facility 6/14 at 100.00 AAA 8,242,461
Revenue Bonds, Donaghey Plaza Project, Series 2004,
5.250%, 6/01/25 - FSA Insured
University of Arkansas, Fayetteville, Revenue Bonds,
Medical Sciences Campus, Series 2004B:
2,000 5.000%, 11/01/27 - MBIA Insured 11/14 at 100.00 Aaa 2,083,100
2,000 5.000%, 11/01/28 - MBIA Insured 11/14 at 100.00 Aaa 2,072,580
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 21.0% (14.0% OF TOTAL INVESTMENTS)
1,800 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aaa 1,864,728
Occidental College, Series 2005A, 5.000%, 10/01/33 -
MBIA Insured
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
2,000 5.000%, 12/01/24 - MBIA Insured 12/14 at 100.00 AAA 2,088,220
2,215 5.000%, 12/01/25 - MBIA Insured 12/14 at 100.00 AAA 2,307,653
31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 AAA 6,191,016
Toll Road Revenue Refunding Bonds, Series 1999,
0.000%, 1/15/34 - MBIA Insured
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 AAA 7,168,420
Tobacco Settlement Asset-Backed Revenue Bonds,
Series 2005A, 5.000%, 6/01/35 - FGIC Insured
6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 6,853,759
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 -
AMBAC Insured
15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 15,733,200
of Participation, Series 2003, 5.250%, 2/01/30 - FGIC Insured
10,000 Orange County Water District, California, Revenue Certificates 8/13 at 100.00 AAA 10,227,800
of Participation, Series 2003B, 5.000%, 8/15/34 - MBIA Insured
1,000 Orange County Water District, California, Revenue Certificates 2/15 at 100.00 AAA 1,037,170
of Participation, Series 2005B, 5.000%, 8/15/24 - MBIA Insured
1,435 Pasadena Area Community College District, Los Angeles 6/13 at 100.00 AAA 1,499,561
County, California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/22 - FGIC Insured
1,940 Riverside, California, Certificates of Participation, Series 2003, 9/13 at 100.00 AAA 2,023,498
5.000%, 9/01/20 - AMBAC Insured
Sacramento City Financing Authority, California, Capital
Improvement Revenue Bonds, Solid Waste and
Redevelopment Projects, Series 1999:
9,220 5.800%, 12/01/19 (Pre-refunded to 12/01/09) - AMBAC Insured 12/09 at 102.00 AAA 10,263,151
3,780 5.800%, 12/01/19 - AMBAC Insured 12/09 at 102.00 AAA 4,189,676
46
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 14,170 San Diego Unified School District, San Diego County, 7/15 at 100.00 AAA $ 14,725,181
California, General Obligation Bonds, Series 2005G,
5.000%, 7/01/29 - FSA Insured
San Diego County, California, Certificates of Participation,
Edgemoor Facility Project and Regional System, Series 2005:
1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AAA 1,737,042
720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AAA 745,013
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 AAA 2,157,640
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - MBIA Insured
5,000 Torrance, California, Certificates of Participation, Series 2005B, No Opt. Call AAA 5,181,600
5.000%, 6/01/24 - AMBAC Insured
12,500 University of California, Revenue Bonds, Multi-Purpose Projects, 5/13 at 100.00 AAA 12,827,250
Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 11.1% (7.4% OF TOTAL INVESTMENTS)
1,690 Adams 12 Five Star Schools, Adams County, Colorado, 12/15 at 100.00 AAA 1,771,323
General Obligation Bonds, Series 2005, 5.000%, 12/15/24 -
FSA Insured
1,940 Colorado Educational and Cultural Facilities Authority, Charter 6/13 at 100.00 AAA 2,045,924
School Revenue Bonds, Adams School District 12 -
Pinnacle School, Series 2003, 5.250%, 6/01/23 - XLCA Insured
3,405 Colorado Educational and Cultural Facilities Authority, Charter 12/13 at 100.00 AAA 3,601,128
School Revenue Bonds, Classical Academy, Series 2003,
5.250%, 12/01/23 - XLCA Insured
3,500 Colorado Health Facilities Authority, Revenue Bonds, Poudre 12/09 at 101.00 Aaa 3,837,575
Valley Healthcare Inc., Series 1999A, 5.750%, 12/01/23
(Pre-refunded to 12/01/09) - FSA Insured
6,100 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,450,628
Series 2004, 5.000%, 12/01/18 - FSA Insured
Denver Convention Center Hotel Authority, Colorado, Senior
Revenue Bonds, Convention Center Hotel, Series 2003A:
9,670 5.000%, 12/01/19 - XLCA Insured 12/13 at 100.00 AAA 10,064,053
17,145 5.000%, 12/01/33 - XLCA Insured 12/13 at 100.00 AAA 17,527,505
1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AAA 1,365,161
Detention Facility Project, Series 2002B, 5.000%, 12/01/27 -
AMBAC Insured
Jefferson County School District R1, Colorado, General
Obligation Bonds, Series 2004:
2,500 5.000%, 12/15/22 - FSA Insured 12/14 at 100.00 AAA 2,622,125
5,125 5.000%, 12/15/23 - FSA Insured 12/14 at 100.00 AAA 5,363,569
2,000 5.000%, 12/15/24 - FSA Insured 12/14 at 100.00 AAA 2,088,500
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AAA 1,035,780
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,140 District of Columbia Housing Finance Agency, GNMA 12/05 at 100.00 AAA 3,140,471
Collateralized Single Family Mortgage Revenue Bonds,
Series 1990C-4, 6.350%, 12/01/24 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.8% (0.5% OF TOTAL INVESTMENTS)
4,000 Florida State Board of Education, Full Faith and Credit Public 6/13 at 101.00 AAA 4,190,280
Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.8% (2.5% OF TOTAL INVESTMENTS)
4,000 Cobb County Development Authority, Georgia, Parking Revenue 7/14 at 100.00 Aaa 4,173,240
Bonds, Kennesaw State University, Series 2004,
5.000%, 7/15/24 - MBIA Insured
2,925 Columbus, Georgia, Water and Sewerage Revenue Bonds, 5/14 at 100.00 AAA 3,059,960
Series 2005, 5.000%, 5/01/23 - MBIA Insured
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
1,775 5.000%, 11/01/21 - MBIA Insured 11/13 at 100.00 AAA 1,852,248
2,580 5.000%, 11/01/22 - MBIA Insured 11/13 at 100.00 AAA 2,685,212
47
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (continued)
$ 4,500 South Fulton Municipal Regional Water and Sewerage 1/13 at 100.00 Aaa $ 4,618,215
Authority, Georgia, Water and Sewerage 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 3,165,840
Revenue Certificates, South Georgia Medical Center,
Series 2002, 5.200%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 7.9% (5.3% OF TOTAL INVESTMENTS)
2,375 Hawaii County, Hawaii, General Obligation Bonds, 7/13 at 100.00 AAA 2,497,241
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 6,683,937
9,500 6.625%, 7/01/17 (Alternative Minimum Tax) - FGIC Insured 7/10 at 101.00 AAA 10,581,005
20,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 AAA 21,480,000
Revenue Refunding Bonds, Hawaiian Electric Company Inc.,
Series 2000, 5.700%, 7/01/20 (Alternative Minimum Tax) -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.1% OF TOTAL INVESTMENTS)
715 Idaho Housing and Finance Association, Single Family Mortgage 1/08 at 101.50 AAA 726,326
Bonds, Series 1998E, 5.450%, 7/01/18 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.3% (2.2% OF TOTAL INVESTMENTS)
4,115 Chicago Park District, Illinois, Limited Tax General Obligation 7/11 at 100.00 AAA 4,462,923
Park Bonds, Series 2001C, 5.500%, 1/01/18 - FGIC Insured
1,950 Illinois Health Facilities Authority, Revenue Refunding Bonds, No Opt. Call AAA 2,290,041
SSM Healthcare System, Series 1992AA, 6.550%, 6/01/14 -
MBIA Insured
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
3,625 6.125%, 4/01/12 - FSA Insured No Opt. Call AAA 3,926,673
5,000 6.250%, 4/01/18 - FSA Insured No Opt. Call AAA 5,840,850
400 Peoria, Moline and Freeport, Illinois, GNMA Collateralized 4/06 at 105.00 AAA 406,064
Single Family Mortgage Revenue Bonds, Series 1995A,
7.600%, 4/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 1.2% (0.8% OF TOTAL INVESTMENTS)
Hamilton County Public Building Corporation, Indiana, First
Mortgage Bonds, Series 2004:
2,105 5.000%, 8/01/23 - FSA Insured 8/14 at 100.00 AAA 2,184,148
2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,293,411
1,625 Hammond Multi-School Building Corporation, Lake County, 7/13 at 100.00 AAA 1,687,498
Indiana, First Mortgage Revenue Bonds, Series 2003B,
5.000%, 1/15/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.8% (0.5% OF TOTAL INVESTMENTS)
2,300 Butler County Unified School District 394, Kansas, General 9/14 at 100.00 AAA 2,421,486
Obligation Bonds, Series 2004, 5.000%, 9/01/21 - FSA Insured
1,500 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 1,571,475
5.000%, 9/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.1% (0.8% OF TOTAL INVESTMENTS)
7,000 Kentucky Economic Development Finance Authority, Health No Opt. Call AAA 2,227,190
System Revenue Bonds, Norton Healthcare Inc.,
Series 2000B, 0.000%, 10/01/28 - MBIA Insured
3,575 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AAA 3,732,193
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,640 Louisiana Public Facilities Authority, Revenue Bonds, 7/14 at 100.00 AAA 1,714,194
Baton Rouge General Hospital, Series 2004,
5.250%, 7/01/24 - MBIA Insured
Louisiana, Gasoline and Fuels Tax Revenue Bonds, Series 2005A:
1,200 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AAA 1,238,004
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AAA 2,279,991
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AAA 2,577,225
48
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.7% (3.8% OF TOTAL INVESTMENTS)
$ 4,910 Massachusetts, General Obligation Bonds, Consolidated Loan, No Opt. Call AAA $ 5,464,192
Series 2002C, 5.500%, 11/01/15 - MBIA Insured
3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call AAA 3,571,860
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 2,674,334
Revenue Bonds, Simmons College, Series 2003F,
5.000%, 10/01/33 - FGIC Insured
180 Massachusetts Housing Finance Agency, Single Family Housing 6/07 at 102.00 AAA 185,996
Revenue Bonds, Series 53, 6.150%, 12/01/29 (Alternative
Minimum Tax) - MBIA Insured
10,925 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,481,083
Revenue Bonds, Series 2005A, 5.000%, 8/15/22 - FSA Insured
Massachusetts, Special Obligation Dedicated Tax Revenue
Bonds, Series 2004:
3,650 5.250%, 1/01/22 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 3,961,017
2,000 5.250%, 1/01/24 (Pre-refunded to 1/01/14) - FGIC Insured 1/14 at 100.00 AAA 2,170,420
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 2.0% (1.3% OF TOTAL INVESTMENTS)
10,000 Michigan Housing Development Authority, Rental Housing 4/07 at 102.00 AAA 10,487,300
Revenue Bonds, Series 1997A, 6.000%, 4/01/16 (Alternative
Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,050 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/06 at 101.00 AAA 1,064,238
Series 1995D, 5.950%, 2/01/18 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.5% OF TOTAL INVESTMENTS)
1,000 Hazelwood Industrial Development Authority, Missouri, 9/06 at 102.00 AAA 1,030,990
GNMA Collateralized Project Multifamily Housing Revenue
Refunding Bonds, Lakes Apartments Project, Series 1996,
6.000%, 9/20/16
1,000 Kansas City Municipal Assistance Corporation, Missouri, 1/06 at 101.00 AAA 1,015,480
Leasehold Revenue Bonds, Capital Improvements,
Series 1996B, 5.750%, 1/15/14 - AMBAC Insured
1,030 Missouri Housing Development Commission, Multifamily 12/06 at 102.00 AAA 1,062,023
Housing Revenue Bonds, Brookstone Village Apartments,
Series 1996A, 6.000%, 12/01/16 (Alternative Minimum
Tax) - FSA Insured
750 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 AAA 771,442
Bonds, Series 2003, 5.000%, 10/01/33 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.4% (0.3% OF TOTAL INVESTMENTS)
Nebraska Public Power District, General Revenue Bonds,
Series 2005A:
1,000 5.000%, 1/01/24 - FSA Insured 1/15 at 100.00 AAA 1,045,180
1,000 5.000%, 1/01/25 - FSA Insured 1/15 at 100.00 AAA 1,044,420
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.2% (2.8% OF TOTAL INVESTMENTS)
3,280 Clark County, Nevada, Subordinate Lien Airport Revenue 7/14 at 100.00 AAA 3,437,079
Bonds, Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured
5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 12/05 at 100.00 AAA 5,200,300
Nevada Power Company, 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 5,476,400
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 1,714,900
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 AAA 5,963,815
49
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 3.1% (2.1% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
$ 2,000 5.125%, 10/01/21 - MBIA Insured 10/14 at 100.00 Aaa $ 2,123,340
2,250 5.125%, 10/01/22 - MBIA Insured 10/14 at 100.00 Aaa 2,385,338
1,560 Mount Olive Township Board of Education, Morris County, 1/15 at 100.00 Aaa 1,640,371
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 1/15/22 - MBIA Insured
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,475 5.000%, 7/01/22 - MBIA Insured 7/14 at 100.00 AAA 1,548,411
1,475 5.000%, 7/01/23 - MBIA Insured 7/14 at 100.00 AAA 1,545,151
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,414,849
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
3,315 New Jersey Turnpike Authority, Revenue Bonds, 1/15 at 100.00 AAA 3,477,534
Series 2005A, 5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,000 New Mexico Finance Authority, Public Project Revolving 6/15 at 100.00 Aaa 2,084,440
Fund Revenue Bonds, Series 2005E, 5.000%, 6/15/25 -
MBIA Insured
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AAA 1,480,755
1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AAA 1,094,216
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 11.7% (7.8% OF TOTAL INVESTMENTS)
1,755 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,930,044
Bonds, Series 2000E, 6.000%, 3/01/16 (Pre-refunded to
3/01/10) - FSA Insured
7,500 Nassau Health Care Corporation, New York, County Guaranteed 8/09 at 102.00 AAA 8,276,775
Revenue Bonds, Series 1999, 5.750%, 8/01/29 (Pre-refunded
to 8/01/09) - FSA Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 5,226,650
Series 2004E, 5.000%, 11/01/21 - FSA Insured
1,250 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 1,301,788
Water and Sewerage System Revenue Bonds, Fiscal
Series 2005C, 5.000%, 6/15/25 - MBIA Insured
1,785 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,856,846
Mental Health Services Facilities Improvements,
Series 2005A, 5.000%, 2/15/24 - AMBAC Insured
1,230 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,279,508
Mental Health Services Facilities Improvements,
Series 2005D, 5.000%, 8/15/24 - FGIC Insured
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,510
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
Dormitory Authority of the State of New York, Insured Revenue
Bonds, New Island Hospital, Series 1999B:
3,400 5.750%, 7/01/19 - MBIA Insured 7/09 at 101.00 AAA 3,664,656
5,750 6.000%, 7/01/24 - MBIA Insured 7/09 at 101.00 AAA 6,282,623
9,095 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 9,411,597
Refunding Bonds, Housing Project, Series 1996A,
6.125%, 11/01/20 - FSA Insured
New York State Thruway Authority, General Revenue Bonds,
Series 2005G:
3,770 5.000%, 1/01/25 - FSA Insured 7/15 at 100.00 AAA 3,935,767
5,980 5.000%, 1/01/26 - FSA Insured 7/15 at 100.00 AAA 6,247,725
5,000 New York State Thruway Authority, Highway and Bridge Trust 10/15 at 100.00 AAA 5,273,800
Fund Bonds, Second Generation, Series 2005B,
5.000%, 4/01/21 - AMBAC Insured
New York City Sales Tax Asset Receivable Corporation, New York,
Dedicated Revenue Bonds, Local Government Assistance
Corporation, Series 2004A:
3,225 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 3,377,833
1,665 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,741,390
50
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.7% (1.2% OF TOTAL INVESTMENTS)
$ 1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 Aaa $ 1,295,150
Series 2005, 5.000%, 7/15/30 - MBIA Insured
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 AAA 2,324,435
2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 AAA 2,434,308
2,900 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aaa 3,046,566
Revenue Bonds, Series 2005A, 5.000%, 5/01/21 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.8% (2.6% OF TOTAL INVESTMENTS)
10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 11,551,842
Obligated Group, Series 2000A, 5.600%, 6/01/21 - FSA Insured
8,000 North Dakota, Student Loan Trust Revenue Bonds, Series 2000B, 12/10 at 100.00 AAA 8,353,280
5.850%, 12/01/25 (Alternative Minimum Tax) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.5% (0.4% OF TOTAL INVESTMENTS)
1,930 Marysville Exempted Village School District, Ohio, Certificates 6/15 at 100.00 AAA 2,070,350
of Participation, School Facilities Project, Series 2005,
5.250%, 12/01/22 - MBIA Insured
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AAA 746,305
5.250%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.1% (0.7% OF TOTAL INVESTMENTS)
Oklahoma City Airport Trust, Oklahoma, Junior Lien Tax Exempt
Bonds, Twenty Seventh Series 2000A:
1,320 5.125%, 7/01/20 - FSA Insured 7/10 at 100.00 AAA 1,362,029
4,040 5.250%, 7/01/21 - FSA Insured 7/10 at 100.00 AAA 4,255,453
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.6% (2.4% OF TOTAL INVESTMENTS)
2,110 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,173,553
Participation, Series 2005A, 5.000%, 5/01/30 - FSA Insured
Portland, Oregon, Airport Way Urban Renewal and Redevelopment
Bonds, Series 2000A:
4,405 5.700%, 6/15/17 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,858,363
3,665 5.750%, 6/15/18 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,049,972
4,265 5.750%, 6/15/19 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 4,712,996
1,375 5.750%, 6/15/20 (Pre-refunded to 6/15/10) - AMBAC Insured 6/10 at 101.00 Aaa 1,519,430
1,520 Portland Housing Authority, Oregon, Multifamily Housing Revenue 7/10 at 100.00 Aaa 1,574,462
Bonds, Lovejoy Station Apartments, Series 2000,
6.000%, 7/01/33 (Alternative Minimum Tax) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 12.1% (8.1% OF TOTAL INVESTMENTS)
12,620 Allegheny County Hospital Development Authority, Pennsylvania, 11/10 at 102.00 AAA 14,268,929
Insured Revenue Bonds, West Penn Allegheny Health System,
Series 2000A, 6.500%, 11/15/30 - MBIA Insured
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 AAA 2,092,660
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 -
MBIA Insured
9,485 Berks County Municipal Authority, Pennsylvania, Hospital 11/09 at 102.00 AAA 10,561,263
Revenue Bonds, Reading Hospital and Medical Center,
Series 1999, 6.000%, 11/01/19 (Pre-refunded to 11/01/09) -
FSA Insured
5,780 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 AAA 6,003,686
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
MBIA Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,398,698
3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,089,400
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 1997A:
2,360 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 2,446,824
10,370 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 10,808,444
2,500 Seneca Valley School District, Butler County, Pennsylvania, 7/14 at 100.00 Aaa 2,639,975
General Obligation Bonds, Series 2004, 5.125%, 1/01/23 -
FGIC Insured
51
Nuveen Insured Premium Income Municipal Fund 2 (NPX) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,705 Solebury Township, Pennsylvania, General Obligation Bonds, 6/15 at 100.00 Aaa $ 1,779,696
Series 2005, 5.000%, 12/15/25 - AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 3,750,667
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/29 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.2% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,652,325
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.0% (0.7% OF TOTAL INVESTMENTS)
5,000 South Carolina Public Service Authority, Revenue Bonds, 1/14 at 100.00 AAA 5,243,850
Santee Cooper Electric System, Series 2004A,
5.000%, 1/01/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 14.9% (10.0% OF TOTAL INVESTMENTS)
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries Inc., Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 5/08 at 102.00 AAA 10,430,400
9,000 5.125%, 11/01/20 (Optional put 11/01/08) - AMBAC Insured 11/08 at 102.00 AAA 9,425,610
Corpus Christi, Texas, Utility System Revenue Bonds, Series 2004:
3,475 5.000%, 7/15/22 - FSA Insured 7/14 at 100.00 AAA 3,617,823
3,645 5.000%, 7/15/23 - FSA Insured 7/14 at 100.00 AAA 3,786,827
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 AAA 13,078,125
Refunding and Improvement Bonds, Series 2001A,
5.500%, 11/01/35 (Alternative Minimum Tax) - FGIC Insured
4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA 4,670,006
Refunding Bonds, Transmission Services Corporation,
Series 2003B, 5.000%, 5/15/21 - FSA Insured
10,000 Lower Colorado River Authority, Texas, Contract Revenue 5/13 at 100.00 AAA 10,223,400
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 4,477,310
GNMA Collateralized Multifamily Housing Mortgage
Revenue Bonds, 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 7,350,291
7,500 5.750%, 12/01/24 - FSA Insured 12/10 at 101.00 AAA 8,203,575
2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,403,799
Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 3.3% (2.2% OF TOTAL INVESTMENTS)
8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,082,288
Refunding Bonds, Series 2003A, 5.000%, 7/01/18 - FSA Insured
2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 AAA 2,449,729
Revenue Bonds, Series 2003, 5.000%, 12/15/33 - MBIA Insured
5,525 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2002A, 12/12 at 100.00 AAA 5,735,779
5.000%, 6/15/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 AAA 1,459,564
Revenue Bonds, Fletcher Allen Health Care Inc.,
Series 2000A, 6.000%, 12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.8% (0.5% OF TOTAL INVESTMENTS)
Loudoun County Industrial Development Authority, Virginia, Lease
Revenue Bonds, Public Safety Facilities, Series 2003A:
1,150 5.250%, 12/15/22 - FSA Insured 6/14 at 100.00 AAA 1,230,098
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 534,450
2,250 Virginia Housing Development Authority, Multifamily Housing 1/08 at 102.00 AAA 2,345,423
Bonds, Series 1997B, 6.050%, 5/01/17 (Alternative
Minimum Tax) - MBIA Insured
52
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 8.5% (5.7% OF TOTAL INVESTMENTS)
$ 10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AAA $ 10,605,400
Consolidated System Revenue Bonds, Series 2001B,
5.600%, 1/01/36 (Alternative Minimum Tax) - MBIA Insured
1,370 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aaa 1,426,280
General Obligation Bonds, Series 2002, 5.000%, 12/01/22 -
FSA Insured
5,230 Douglas County Public Utility District 1, Washington, 9/09 at 102.00 AAA 5,733,440
Revenue Bonds, Wells Hydroelectric, Series 1999A,
6.125%, 9/01/29 (Alternative Minimum Tax) - MBIA Insured
5,000 Seattle, Washington, Municipal Light and Power Revenue 8/14 at 100.00 AAA 5,195,350
Bonds, Series 2004, 5.000%, 8/01/23 - FSA Insured
Tacoma, Washington, General Obligation Bonds, Series 2004:
1,545 5.000%, 12/01/19 - MBIA Insured 12/14 at 100.00 AAA 1,622,590
1,620 5.000%, 12/01/20 - MBIA Insured 12/14 at 100.00 AAA 1,696,399
1,695 5.000%, 12/01/21 - MBIA Insured 12/14 at 100.00 AAA 1,772,343
10,855 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AAA 5,582,180
0.000%, 1/01/20 - FGIC Insured
6,200 Washington, General Obligation Various Purpose Bonds, 7/12 at 100.00 AAA 6,482,906
Series 2003A, 5.000%, 7/01/20 - FGIC Insured
3,950 Washington State Healthcare Facilities Authority, Revenue 11/08 at 101.00 Aaa 4,091,170
Bonds, Swedish Health Services, Series 1998,
5.125%, 11/15/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
8,000 Pleasants County, West Virginia, Pollution Control Revenue 11/05 at 102.00 AAA 8,146,560
Bonds, Monongahela Power Company Pleasants Station
Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.6% (4.4% OF TOTAL INVESTMENTS)
1,000 Green Bay, Wisconsin, Water System Revenue Bonds, 11/14 at 100.00 Aaa 1,048,360
Series 2004, 5.000%, 11/01/21 - FSA Insured
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call AAA 8,149,120
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 13,636,630
Series 2000A, 5.750%, 12/01/25 (Alternative Minimum
Tax) - FGIC Insured
6,250 Wisconsin Health and Educational Facilities Authority, Revenue 8/06 at 102.00 AAA 6,491,000
Bonds, Sinai Samaritan Medical Center Inc., Series 1996,
5.750%, 8/15/16 - MBIA Insured
5,000 Wisconsin Health and Educational Facilities Authority, Revenue 2/06 at 102.00 AAA 5,112,100
Bonds, Mercy Health System Corporation, Series 1995,
6.125%, 8/15/13 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 775,706 Total Long-Term Investments (cost $751,836,352) - 149.7% 779,176,291
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.0% 10,231,227
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.7)% (268,900,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 520,507,518
====================================================================================================================
All of the bonds in the Portfolio of Investments are either
covered by Original Issue Insurance, Secondary Market
Insurance or Portfolio Insurance, or are backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities, any of which ensure the timely
payment of principal and interest.
(1) All percentages shown in the Portfolio of Investments are
based on net assets applicable to Common shares unless
otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemeption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's or Moody's rating.
See accompanying notes to financial statements.
53
Nuveen Insured Dividend Advantage Municipal Fund (NVG)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 4.3% (2.9% OF TOTAL INVESTMENTS)
$ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, 5/12 at 101.00 AAA $ 5,587,872
Series 2002, 5.300%, 5/01/32 - MBIA Insured
3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 3/12 at 101.00 AAA 3,191,921
5.000%, 3/01/20 - MBIA Insured
10,000 Jefferson County, Alabama, Sewer Revenue Capital 2/09 at 101.00 AAA 10,710,400
Improvement Warrants, Series 1999A, 5.375%, 2/01/36
(Pre-refunded to 2/01/09) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.5% (2.3% OF TOTAL INVESTMENTS)
15,000 Alaska, International Airport System Revenue Bonds, 10/12 at 100.00 AAA 15,739,050
Series 2002B, 5.250%, 10/01/27 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 1.1% (0.8% OF TOTAL INVESTMENTS)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AAA 5,142,550
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32
(Alternative Minimum Tax) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 11.5% (7.7% OF TOTAL INVESTMENTS)
California Educational Facilities Authority, Revenue Bonds,
Occidental College, Series 2005A:
1,485 5.000%, 10/01/26 - MBIA Insured 10/15 at 100.00 Aaa 1,550,459
1,565 5.000%, 10/01/27 - MBIA Insured 10/15 at 100.00 Aaa 1,630,167
8,890 California, General Obligation Veterans Welfare Bonds, 12/08 at 101.00 AA- 9,158,300
Series 1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,200 California, Various Purpose General Obligation Bonds, 9/10 at 100.00 AAA 3,422,624
Series 2000, 5.250%, 9/01/17 - MBIA Insured
10,000 California, General Obligation Refunding Bonds, Series 2002, No Opt. Call AAA 10,337,900
5.000%, 2/01/23 - MBIA Insured
3,000 California, General Obligation Veterans Welfare Bonds, 6/07 at 101.00 AAA 3,037,320
Series 2001BZ, 5.375%, 12/01/24 (Alternative Minimum
Tax) - MBIA Insured
7,935 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AAA 8,302,152
Series 2002, 5.300%, 4/01/32 - AMBAC Insured
1,000 Los Angeles Convention and Exhibition Center Authority, 12/05 at 100.00 AAA 1,005,040
California, Certificates of Participation, Series 1985,
9.000%, 12/01/20 (Pre-refunded to 12/01/05)
3,425 Los Angeles Unified School District, California, General 7/15 at 100.00 AAA 3,575,597
Obligation Bonds, Series 2005A-1, 5.000%, 7/01/25 -
FGIC Insured
7,500 Northern California Power Agency, Revenue Refunding Bonds, 7/08 at 101.00 AAA 7,862,925
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 2,503,837
Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,580 Gunnison Watershed School District RE1J, Gunnison and No Opt. Call Aaa 1,704,141
Saguache 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 1,166,843
1,170 5.000%, 12/01/14 - XLCA Insured 12/13 at 100.00 AAA 1,240,797
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 16.2% (10.9% OF TOTAL INVESTMENTS)
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - MBIA Insured 12/13 at 100.00 AAA 2,482,439
1,480 5.250%, 12/01/18 - MBIA Insured 12/13 at 100.00 AAA 1,591,829
11,600 Greater Orlando Aviation Authority, Florida, Airport Facilities 10/12 at 100.00 AAA 11,938,836
Revenue Bonds, Series 2002B, 5.125%, 10/01/21 (Alternative
Minimum Tax) - FSA Insured
6,000 JEA, Florida, Water and Sewerage System Revenue Bonds, 4/07 at 100.00 AAA 6,161,580
Series 2002A, 5.500%, 10/01/41 - MBIA Insured
54
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 Aaa $ 8,700,733
Bonds, Series 2001, 5.625%, 10/01/13 (Alternative
Minimum Tax) - MBIA Insured
15,000 Miami-Dade County School Board, Florida, Certificates of No Opt. Call AAA 15,653,550
Participation, Series 2003A, 5.000%, 8/01/27 (Mandatory
put 8/01/08) - MBIA Insured
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami
International Airport, Series 2002:
7,165 5.625%, 10/01/15 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 7,725,733
5,600 5.750%, 10/01/16 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 6,093,360
10,000 5.125%, 10/01/21 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 10,304,000
2,000 5.250%, 10/01/22 (Alternative Minimum Tax) - FGIC Insured 10/12 at 100.00 AAA 2,076,800
1,000 Orange County, Florida, Sales Tax Revenue Bonds, 1/13 at 100.00 AAA 1,036,230
Series 2002B, 5.000%, 1/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.6% (0.3% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, 11/14 at 100.00 AAA 1,045,330
Series 2004, 5.000%, 11/01/22 - FSA Insured
1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,743,833
Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 14.1% (9.4% OF TOTAL INVESTMENTS)
10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 AAA 10,574,100
5.375%, 1/01/38 - FGIC Insured
Chicago, Illinois, General Obligation Bonds, Series 2001A:
50 5.500%, 1/01/38 (Pre-refunded to 1/01/11) - MBIA Insured 1/11 at 101.00 AAA 54,918
4,950 5.500%, 1/01/38 - MBIA Insured 1/11 at 101.00 AAA 5,327,537
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 4,516,475
4,485 5.500%, 1/01/17 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 4,758,899
4,730 5.500%, 1/01/18 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 5,001,975
2,930 5.500%, 1/01/19 (Alternative Minimum Tax) - AMBAC Insured 1/11 at 101.00 AAA 3,088,308
3,000 Chicago, Illinois, Third Lien General Airport Revenue Refunding 1/12 at 100.00 AAA 3,230,730
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 13,365,849
Series 1996, 5.500%, 1/01/23 (Pre-refunded to 1/01/07) -
MBIA Insured
4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 AAA 4,186,560
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 1,604,775
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 5,343,750
Series 2002, 5.250%, 4/01/23 - FSA Insured
2,700 University of Illinois, Certificates of Participation, Utility 8/11 at 100.00 AAA 2,892,888
Infrastructure Projects, Series 2001A, 5.000%, 8/15/20
(Pre-refunded to 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 17.0% (11.4% OF TOTAL INVESTMENTS)
3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 AAA 3,539,671
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 2,671,750
7,075 5.250%, 4/01/26 - AMBAC Insured 4/12 at 100.00 AAA 7,522,777
7,000 5.250%, 4/01/30 - AMBAC Insured 4/12 at 100.00 AAA 7,364,770
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 AAA 10,360,200
Bonds, Marion General Hospital, Series 2002,
5.250%, 7/01/32 - AMBAC Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 26,189,750
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 (Pre-refunded to 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 2,795,900
3,810 5.750%, 7/15/20 (Pre-refunded to 7/15/12) - FGIC Insured 7/12 at 100.00 AAA 4,260,952
55
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
INDIANA (continued)
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 $ 444,835
430 5.250%, 7/15/19 - FGIC Insured 7/12 at 100.00 AAA 456,097
1,675 5.400%, 7/15/23 - FGIC Insured 7/12 at 100.00 AAA 1,796,856
6,960 Valparaiso Middle School Building Corporation, Indiana, 1/13 at 100.00 AAA 7,206,314
First Mortgage Refunding Bonds, Series 2002,
5.000%, 7/15/24 - MBIA Insured
2,490 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 AAA 2,621,497
City, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 1/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, 9/12 at 100.00 AAA 3,187,607
Series 2002, 5.125%, 9/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 3.5% (2.4% OF TOTAL INVESTMENTS)
5,000 Massachusetts, General Obligation Bonds, Consolidated Loan, 8/14 at 100.00 AAA 5,352,450
Series 2004B, 5.000%, 8/01/22 (Pre-refunded to 8/01/14) -
AMBAC Insured
10,000 Massachusetts, Special Obligation Refunding Notes, Federal No Opt. Call Aaa 10,692,900
Highway Grant Anticipation Note Program, Series 2003A,
5.000%, 12/15/13 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 1.5% (1.0% OF TOTAL INVESTMENTS)
6,200 Detroit, Michigan, Sewerage Disposal System Revenue Bonds, 1/10 at 101.00 AAA 6,801,214
Series 1999A, 5.750%, 7/01/26 (Pre-refunded to
1/01/10) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 2.5% (1.6% OF TOTAL INVESTMENTS)
1,600 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,721,088
General Obligation Bonds, Series 2004, 5.250%, 3/01/19 -
FSA Insured
8,735 St. Louis, Missouri, Airport Revenue Bonds, Airport 7/11 at 100.00 AAA 9,460,442
Development Program, Series 2001A, 5.250%, 7/01/31
(Pre-refunded to 7/01/11) - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 0.5% (0.3% OF TOTAL INVESTMENTS)
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 1,072,210
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,072,210
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.3% (2.9% OF TOTAL INVESTMENTS)
9,810 Clark County School District, Nevada, General Obligation 6/12 at 100.00 AAA 10,255,080
Bonds, Series 2002C, 5.000%, 6/15/21 - MBIA Insured
8,750 Truckee Meadows Water Authority, Nevada, Water Revenue 7/11 at 100.00 AAA 9,158,188
Bonds, Series 2001A, 5.250%, 7/01/34 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,345 Bernards Township School District, Somerset County, 1/14 at 100.00 AAA 2,509,408
New Jersey, General Obligation Bonds, Series 2004,
5.000%, 1/01/15 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 2.9% (1.9% OF TOTAL INVESTMENTS)
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,295,600
Transportation Revenue Refunding Bonds, Series 2002A,
5.000%, 11/15/30 - FSA Insured
1,500 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 1,559,400
Transportation Revenue Bonds, Series 2005B,
5.000%, 11/15/30 - AMBAC Insured
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,167,510
Mortgage Revenue Bonds, Montefiore Hospital,
Series 2004, 5.000%, 8/01/23 - FGIC Insured
56
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 2,435 North Carolina Medical Care Commission, FHA-Insured 10/13 at 100.00 AAA $ 2,642,998
Mortgage Revenue Bonds, Betsy Johnson Regional
Hospital Project, Series 2003, 5.375%, 10/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.4% (2.3% OF TOTAL INVESTMENTS)
4,725 Clackamas County School District 62, Oregon City, Oregon, 6/14 at 100.00 AAA 5,065,436
General Obligation Bonds, Series 2004, 5.000%, 6/15/15 -
FSA Insured
Oregon, General Obligation Veterans Welfare Bonds, Series 82:
5,900 5.375%, 12/01/31 12/11 at 100.00 AA- 6,025,434
2,750 5.500%, 12/01/42 12/11 at 100.00 AA- 2,808,355
1,615 Oregon Department of Administrative Services, State Lottery 4/14 at 100.00 AAA 1,716,939
Revenue Bonds, Series 2004A, 5.000%, 4/01/17 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 5.0% (3.3% OF TOTAL INVESTMENTS)
4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call AAA 4,839,570
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 5,291,950
Bonds, University of Pennsylvania, Series 1998,
5.500%, 7/15/38 (Pre-refunded to 7/15/08) - MBIA Insured
1,000 Pennsylvania Higher Educational Facilities Authority, Revenue 11/13 at 100.00 AA 1,054,730
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 3,317,795
1,000 5.250%, 2/15/15 - XLCA Insured 2/13 at 100.00 AAA 1,067,870
Philadelphia Municipal Authority, Pennsylvania, Lease Revenue
Bonds, Series 2003B:
3,540 5.250%, 11/15/16 - FSA Insured 11/13 at 100.00 AAA 3,770,171
2,000 5.250%, 11/15/18 - FSA Insured 11/13 at 100.00 AAA 2,120,280
1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,039,600
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/23 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.8% (0.5% OF TOTAL INVESTMENTS)
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 1,098,780
2,300 5.000%, 4/01/21 - MBIA Insured 4/13 at 100.00 AAA 2,403,615
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 9.2% (6.2% OF TOTAL INVESTMENTS)
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,390,000
Bonds, Memphis Arena, Series 2002A, 5.125%, 11/01/28 -
AMBAC Insured
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AAA 10,377,200
Bonds, Memphis Arena, Series 2002B, 5.125%, 11/01/29 -
AMBAC Insured
Memphis, Tennessee, Sanitary Sewerage System Revenue
Bonds, Series 2004:
1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA 1,580,290
1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,533,585
1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,057,618
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 15,950,647
Facilities Second Program Bonds, Series 2002A,
5.250%, 5/01/32 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 27.4% (18.4% OF TOTAL INVESTMENTS)
3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 AAA 3,799,985
Refunding and Improvement Bonds, Series 2001A,
5.750%, 11/01/13 (Alternative Minimum Tax) - FGIC Insured
10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 AAA 10,381,000
Obligation Bonds, Series 2002, 5.375%, 8/15/32 -
MBIA Insured
3,645 Galveston, Texas, General Obligation Refunding Bonds, No Opt. Call AAA 3,851,198
Series 2001A, 5.250%, 5/01/21 - AMBAC Insured
57
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
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 $ 2,347,139
2,355 5.000%, 11/15/17 - MBIA Insured 11/13 at 100.00 AAA 2,459,491
13,000 Houston Area Water Corporation, Texas, Contract Revenue 3/12 at 100.00 AAA 13,363,220
Bonds, Northeast Water Purification Plant, Series 2002,
5.125%, 3/01/32 - FGIC Insured
2,500 Houston Higher Education Finance Corporation, Texas, Revenue 11/09 at 101.00 AAA 2,646,650
Bonds, Rice University, Series 1999A, 5.375%, 11/15/29
1,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 1,063,240
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,345 San Antonio, Texas, Water System Senior Lien Revenue 5/12 at 100.00 AAA 4,733,617
Refunding Bonds, Series 2002, 5.500%, 5/15/17 -
FSA Insured
9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 Aa1 9,486,840
Program Fund II, Series 2002A-1, 5.250%, 12/01/22
(Alternative Minimum Tax)
6,110 Texas Department of Housing and Community Affairs, 7/11 at 100.00 AAA 6,356,294
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 3,726,730
3,520 5.125%, 11/01/21 - MBIA Insured 5/12 at 100.00 Aaa 3,715,430
8,635 Texas Department of Housing and Community Affairs, Single 3/12 at 100.00 AAA 8,875,744
Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33
(Alternative Minimum Tax) - MBIA Insured
Texas Student Housing Authority, Revenue Bonds, Austin
Project, Senior Series 2001A:
9,400 5.375%, 1/01/23 - MBIA Insured 1/12 at 102.00 Aaa 10,017,204
11,665 5.500%, 1/01/33 - MBIA Insured 1/12 at 102.00 Aaa 12,556,673
5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA 5,286,000
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 3,708,705
3,000 5.250%, 2/15/22 - FSA Insured 2/12 at 100.00 AAA 3,193,110
7,340 5.250%, 2/15/23 - FSA Insured 2/12 at 100.00 AAA 7,804,989
5,000 5.250%, 2/15/25 - FSA Insured 2/12 at 100.00 AAA 5,312,200
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 14.1% (9.4% OF TOTAL INVESTMENTS)
7,675 Energy Northwest, Washington, Electric Revenue Refunding 7/12 at 100.00 AAA 8,354,084
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 7,067,478
Bonds, Columbia Generating Station - Nuclear Project 2,
Series 2002B, 5.350%, 7/01/18 - FSA Insured
2,200 King County School District 414, Lake Washington, Washington, 12/14 at 100.00 AAA 2,337,676
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 2,722,650
Series 2002D, 5.750%, 11/01/15 (Alternative Minimum Tax) -
FGIC Insured
2,200 Snohomish County School District 2, Everett, Washington, 12/13 at 100.00 AAA 2,330,328
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 3,501,143
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 2,182,340
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 Aaa 4,550,073
15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 AAA 15,377,250
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 10,206,600
Bonds, Children's Hospital and Regional Medical Center,
Series 2001, 5.125%, 10/01/31 - AMBAC Insured
58
Nuveen Insured Dividend Advantage Municipal Fund (NVG) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 5,170 Whitman County School District 267, Pullman, Washington, 6/12 at 100.00 Aaa $ 5,410,405
General Obligation Bonds, Series 2002, 5.000%, 12/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.2% (2.2% OF TOTAL INVESTMENTS)
1,890 Wisconsin Housing and Economic Development Authority, 3/12 at 100.00 AA 1,939,480
Home Ownership Revenue Bonds, Series 2002E,
5.250%, 9/01/22 (Alternative Minimum Tax)
11,950 Wisconsin, Transportation Revenue Refunding Bonds, 7/12 at 100.00 AAA 12,706,192
Series 2002-1, 5.125%, 7/01/18 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 644,405 Total Long-Term Investments (cost $646,146,379) - 149.4% 678,431,609
=============-----------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 1.9% 8,586,151
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (51.3)% (233,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 454,017,760
====================================================================================================================
At least 80% of the Fund's net assets (including net assets
attributable to Preferred Shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred Shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, 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 unless
otherwise noted.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's or Moody's rating.
See accompanying notes to financial statements.
59
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA)
Portfolio of
INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 8.4% (5.6% OF TOTAL INVESTMENTS)
$ 5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 $ 5,763,972
Revenue Bonds, Helen Keller Hospital, Series 2003,
5.750%, 6/01/27
3,100 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 5/12 at 102.00 AAA 3,340,312
Series 1998A, 5.400%, 6/01/22 - MBIA Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital 8/12 at 100.00 AAA 6,748,614
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 1,829,310
Series 2003, 5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 7/13 at 100.00 Aaa 4,910,850
5.500%, 7/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.8% (2.5% OF TOTAL INVESTMENTS)
10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 AAA 10,268,500
Revenue Bonds, Arizona Public Service Company - Palo Verde
Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 29.2% (19.3% OF TOTAL INVESTMENTS)
13,500 California, General Obligation Refunding Bonds, Series 2002, 4/12 at 100.00 AAA 14,115,735
5.250%, 4/01/30 - XLCA Insured
7,500 California, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 7,725,600
5.000%, 4/01/31 - AMBAC Insured
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 AAA 27,000,895
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
2,910 Cathedral City Public Financing Authority, California, 8/12 at 102.00 AAA 3,008,765
Tax Allocation Bonds, Housing Set-Aside, Series 2002D,
5.000%, 8/01/26 - MBIA Insured
2,500 Irvine Public Facilities and Infrastructure Authority, California, 3/06 at 103.00 AAA 2,555,925
Assessment Revenue Bonds, Series 2003C,
5.000%, 9/02/23 - AMBAC Insured
4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 AAA 4,133,320
Bonds, Series 2003, 5.000%, 8/01/28 - FGIC Insured
Plumas County, California, Certificates of Participation,
Capital Improvement Program, Series 2003A:
1,130 5.250%, 6/01/19 - AMBAC Insured 6/13 at 101.00 AAA 1,214,196
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 AAA 1,342,097
1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 AAA 1,245,973
Revenue Bonds, Capital Improvement Projects, Series 2003A,
5.000%, 3/01/23 - AMBAC Insured
3,750 Sacramento Municipal Utility District, California, Electric 8/13 at 100.00 AAA 3,875,550
Revenue Bonds, Series 2003R, 5.000%, 8/15/28 -
MBIA Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,548,735
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 3,055,110
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 1,082,715
Participation, Series 2003A, 5.000%, 1/01/28 - MBIA Insured
6,300 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AAA 6,464,934
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.8% (2.6% OF TOTAL INVESTMENTS)
Bowles Metropolitan District, Colorado, General Obligation
Bonds, Series 2003:
4,300 5.500%, 12/01/23 - FSA Insured 12/13 at 100.00 AAA 4,735,332
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 4,107,975
1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 AAA 1,530,823
Charter School Revenue Bonds, Peak-to-Peak Charter
School, Series 2004, 5.250%, 8/15/24 - XLCA Insured
60
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 3,000 Pinellas County Health Facilities Authority, Florida, Revenue 5/13 at 100.00 A1 $ 3,132,420
Bonds, Baycare Health System, Series 2003, 5.500%, 11/15/27
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.5% (1.0% OF TOTAL INVESTMENTS)
3,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AAA 3,925,483
Tax Revenue Bonds, Second Indenture Series 2002,
5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.8% (2.5% OF TOTAL INVESTMENTS)
905 Cook County School District 100, Berwyn South, Illinois, 12/13 at 100.00 Aaa 991,934
General Obligation Refunding Bonds, Series 2003B,
5.250%, 12/01/21 (Pre-refunded to 12/01/13) - FSA Insured
Cook County School District 145, Arbor Park, Illinois, General
Obligation Bonds, Series 2004:
3,285 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aaa 3,483,841
2,940 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aaa 3,099,877
2,500 Illinois Health Facilities Authority, Revenue Bonds, 7/13 at 100.00 A- 2,567,250
Lake Forest Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 8.8% (5.9% OF TOTAL INVESTMENTS)
2,500 Evansville, Indiana, Sewerage Works Revenue Refunding
Bonds, Series 2003A, 5.000%, 7/01/23 - AMBAC Insured 7/13 at 100.00 AAA 2,599,875
2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, 8/13 at 100.00 AAA 2,286,316
Common School Fund, 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 1,042,310
5.000%, 8/01/22 - FGIC Insured
IPS Multi-School Building Corporation, Indiana, First Mortgage
Revenue Bonds, Series 2003:
11,020 5.000%, 7/15/19 - MBIA Insured 7/13 at 100.00 AAA 11,572,322
6,000 5.000%, 7/15/20 - MBIA Insured 7/13 at 100.00 AAA 6,284,640
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 2.4% (1.6% OF TOTAL INVESTMENTS)
6,250 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AAA 6,565,250
Revenue Bonds, Scientific Research and Development
Facilities Projects, Series 2003C, 5.000%, 10/01/22 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.5% (0.3% OF TOTAL INVESTMENTS)
Kentucky State Property and Buildings Commission, Revenue
Refunding Bonds, Project 77, Series 2003:
340 5.000%, 8/01/23 (Pre-refunded to 8/01/13) - MBIA Insured 8/13 at 100.00 AAA 366,013
985 5.000%, 8/01/23 (Pre-refunded to 8/01/13) - MBIA Insured 8/13 at 100.00 AAA 1,060,362
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.2% (1.5% OF TOTAL INVESTMENTS)
5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 AAA 6,040,350
Series 2002, 5.300%, 12/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 5.1% (3.4% OF TOTAL INVESTMENTS)
9,000 Massachusetts Bay Transportation Authority, Senior Sales 7/12 at 100.00 AAA 9,671,490
Tax Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded to 7/01/12) - FGIC Insured
1,125 Massachusetts Development Finance Authority, Revenue 9/13 at 100.00 A1 1,171,665
Bonds, Middlesex School, Series 2003, 5.125%, 9/01/23
3,000 Massachusetts Turnpike Authority, Metropolitan Highway 1/07 at 102.00 AAA 3,035,250
System Revenue Bonds, Senior Series 1997A,
5.000%, 1/01/37 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 11.6% (7.7% OF TOTAL INVESTMENTS)
6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 6,386,663
Bonds, Series 2003A, 5.000%, 7/01/23 - MBIA Insured
4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 AAA 4,661,103
Refunding Bonds, Series 2003C, 5.000%, 7/01/22 -
MBIA Insured
61
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN (continued)
$ 10,800 Michigan Strategic Fund, Limited Obligation Resource 12/12 at 100.00 AAA $ 11,221,632
Recovery Revenue Refunding Bonds, Detroit Edison Company,
Series 2002D, 5.250%, 12/15/32 - XLCA Insured
2,250 Romulus Community Schools, Wayne County, Michigan, 5/11 at 100.00 AA 2,383,065
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 6,673,225
Airport Hotel Revenue Bonds, Detroit Metropolitan Wayne
County Airport, Series 2001A, 5.000%, 12/01/30 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.1% (0.7% OF TOTAL INVESTMENTS)
Clay County Public School District 53, Liberty, Missouri,
General Obligation Bonds, Series 2004:
1,325 5.250%, 3/01/23 - FSA Insured 3/14 at 100.00 AAA 1,417,565
1,500 5.250%, 3/01/24 - FSA Insured 3/14 at 100.00 AAA 1,601,535
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.9% (1.3% OF TOTAL INVESTMENTS)
5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue 6/13 at 100.00 AAA 5,164,450
Refunding Bonds, Series 2003, 5.000%, 6/15/28 -
MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 0.9% (0.6% OF TOTAL INVESTMENTS)
2,315 Clark County, Nevada, Subordinate Lien Airport Revenue 7/11 at 100.00 AAA 2,501,381
Bonds, Series 2001B, 5.200%, 7/01/31 (Pre-refunded
to 7/01/11) - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
1,975 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AAA 2,080,959
5.000%, 4/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.5% (6.3% OF TOTAL INVESTMENTS)
25,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 25,693,250
Transportation Revenue Refunding Bonds, Series 2002F,
5.000%, 11/15/31 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 3.3% (2.2% OF TOTAL INVESTMENTS)
8,700 North Carolina Medical Care Commission, Revenue Bonds, 10/13 at 100.00 AA 9,014,331
Maria Parham Medical Center, Series 2003,
5.375%, 10/01/33 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.6% (2.4% OF TOTAL INVESTMENTS)
9,350 Oregon Health Sciences University, Revenue Bonds, 1/13 at 100.00 AAA 9,618,719
Series 2002A, 5.000%, 7/01/32 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 8.8% (5.8% OF TOTAL INVESTMENTS)
3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 BBB 3,071,610
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, 8/13 at 100.00 AAA 2,050,860
General Ordinance, Fourth Series 1998, 5.000%, 8/01/32 -
FSA Insured
Philadelphia, Pennsylvania, Water and Wastewater Revenue
Bonds, Series 1997A:
925 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 959,031
4,075 5.125%, 8/01/27 - AMBAC Insured 8/07 at 102.00 AAA 4,247,291
13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 13,333,450
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 7.4% (4.9% OF TOTAL INVESTMENTS)
5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,324,500
McLeod Regional Medical Center, Series 2004A,
5.250%, 11/01/23 - FSA Insured
Greenville County School District, South Carolina, Installment
Purchase Revenue Bonds, Series 2003:
3,000 5.000%, 12/01/22 12/13 at 100.00 AA- 3,092,400
1,785 5.000%, 12/01/23 12/13 at 100.00 AA- 1,836,319
62
PRINCIPAL OPTIONAL CALL MARKET
AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA (continued)
$ 1,365 Myrtle Beach, South Carolina, Water and Sewerage System 3/13 at 100.00 AAA $ 1,478,677
Revenue Refunding Bonds, Series 2003,
5.375%, 3/01/19 - FGIC Insured
8,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 Aaa 8,194,560
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 13.2% (8.7% OF TOTAL INVESTMENTS)
7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,224,937
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 12,901,625
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 5,881,141
Series 2002, 5.250%, 3/01/20 - MBIA Insured
2,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AAA 2,123,540
Bonds, Series 2004A, 5.250%, 5/15/25 - MBIA Insured
5,850 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 6,154,902
Waller Counties, Texas, General Obligation Bonds,
Series 2002A, 5.125%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
1,500 Hampton, Virginia, Revenue Bonds, Convention Center 1/13 at 100.00 AAA 1,556,115
Project, Series 2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.2% (6.1% OF TOTAL INVESTMENTS)
4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,049,735
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 5,391,225
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 2,205,540
Revenue Bonds, Bremerton Government Center,
Series 2003, 5.000%, 7/01/23 - MBIA Insured
1,935 Pierce County School District 343, Dieringer, Washington, 6/13 at 100.00 Aaa 2,077,416
General Obligation Refunding Bonds, Series 2003,
5.250%, 12/01/17 - FGIC Insured
9,670 Washington, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AAA 10,097,414
5.000%, 12/01/21 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call AAA 3,319,440
Refunding Bonds, Regional Jail and Corrections Facility,
Series 1998A, 5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.7% (4.5% OF TOTAL INVESTMENTS)
1,190 Sun Prairie Area School District, Dane County, Wisconsin, 3/14 at 100.00 Aaa 1,264,554
General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 -
FSA Insured
4,750 Wisconsin Health and Educational Facilities Authority, Revenue 8/08 at 102.00 AAA 4,941,425
Refunding Bonds, Wausau Hospital Inc., Series 1998A,
5.125%, 8/15/20 - AMBAC Insured
3,000 Wisconsin Health and Educational Facilities Authority, Revenue No Opt. Call AAA 3,417,060
Bonds, Meriter Hospital Inc., Series 1992A, 6.000%, 12/01/22 -
FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, Revenue 8/13 at 100.00 A 3,636,576
Bonds, Wheaton Franciscan Services Inc., Series 2003A,
5.125%, 8/15/33
4,605 Wisconsin Health and Educational Facilities Authority, Revenue 9/13 at 100.00 A- 4,867,761
Bonds, Franciscan Sisters of Christian Charity Healthcare
Ministry, Series 2003A, 5.875%, 9/01/33
------------------------------------------------------------------------------------------------------------------------------------
$ 389,225 Total Long-Term Investments (cost $390,134,775) - 150.5% 405,618,868
=============-----------------------------------------------------------------------------------------------------------------------
63
Nuveen Insured Tax-Free Advantage Municipal Fund (NEA) (continued)
Portfolio of INVESTMENTS October 31, 2005
PRINCIPAL MARKET
AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 0.1% (0.1% OF TOTAL INVESTMENTS)
$ 400 Idaho Health Facilities Authority, Revenue Bonds, St. Luke's A-1+ $ 400,000
Regional Medical Center, Variable Rate Demand Obligations,
Series 2005, 2.730%, 7/01/35 - FSA Insured +
------------------------------------------------------------------------------------------------------------------------------------
$ 400 Total Short-Term Investments (cost $400,000) 400,000
=============-----------------------------------------------------------------------------------------------------------------------
Total Investments (cost $390,534,775) - 150.6% 406,018,868
--------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.8% 7,595,053
--------------------------------------------------------------------------------------------------------------------
Preferred Shares, at Liquidation Value - (53.4)% (144,000,000)
--------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 269,613,921
====================================================================================================================
FORWARD SWAPS OUTSTANDING AT OCTOBER 31, 2005:
FIXED RATE FLOATING RATE FLOATING
PAID BY FIXED RATE RECEIVED BY RATE
NOTIONAL THE FUND PAYMENT THE FUND PAYMENT EFFECTIVE TERMINATION UNREALIZED
COUNTERPARTY AMOUNT (ANNUALIZED) FREQUENCY BASED ON FREQUENCY DATE (2) DATE APPRECIATION
------------------------------------------------------------------------------------------------------------------------------------
Citigroup $13,500,000 4.652% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 $1,012,217
Citigroup 3,000,000 4.699% Semi-annually 3-month USD-LIBOR Quarterly 2/27/06 2/27/26 207,830
JPMorgan 9,000,000 5.075% Semi-annually 3-month USD-LIBOR Quarterly 2/22/06 2/22/26 209,960
------------------------------------------------------------------------------------------------------------------------------------
$1,430,007
------------------------------------------------------------------------------------------------------------------------------------
USD-LIBOR (United States Dollar-London Inter-Bank Offered Rates)
At least 80% of the Fund's net assets (including net assets
attributable to Preferred Shares) are invested in municipal
securities that are either covered by Original Issue
Insurance, Secondary Market Insurance or Portfolio Insurance
which ensures the timely payment of principal and interest.
Up to 20% of the Fund's net assets (including net assets
attributable to Preferred Shares) may be invested in
municipal securities that are (i) either backed by an escrow
or trust containing sufficient U.S. Government or U.S.
Government agency securities (also ensuring the timely
payment of principal and interest), or (ii) rated, at the
time of investment, within the four highest grades (Baa or
BBB or better by Moody's, 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 unless
otherwise noted.
(2) Effective date represents the date on which both the Fund
and counterparty commence interest payment accruals on each
forward swap contract.
* Optional Call Provisions (not covered by the report of
independent registered public accounting firm): Dates (month
and year) and prices of the earliest optional call or
redemption. There may be other call provisions at varying
prices at later dates. Certain mortgage-backed securities
may be subject to periodic principal paydowns.
** Ratings (not covered by the report of independent registered
public accounting firm): Using the higher of Standard &
Poor's or Moody's rating.
+ Security has a maturity of more than one year, but has
variable rate and demand features which qualify it as a
short-term investment. The rate disclosed is that in effect
at the end of the reporting period. This rate changes
periodically based on market conditions or a specified
market index.
See accompanying notes to financial statements.
64
Statement of
ASSETS AND LIABILITIES October 31, 2005
INSURED INSURED INSURED
INSURED INSURED PREMIER PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at market value
(cost $843,130,570, $1,810,645,575,
$429,005,598, $751,836,352,
$646,146,379, $390,534,775,
respectively) $887,216,397 $1,911,596,344 $453,688,446 $779,176,291 $678,431,609 $406,018,868
Cash -- -- 43,108 -- -- 55,407
Receivables:
Interest 12,323,427 29,676,912 7,615,176 13,434,906 9,860,582 6,340,142
Investments sold 16,173,470 36,230,617 35,000 -- 1,195,000 --
Unrealized appreciation
on swaps -- -- -- -- -- 1,430,007
Other assets 71,131 118,809 40,826 52,610 32,879 13,923
------------------------------------------------------------------------------------------------------------------------------------
Total assets 915,784,425 1,977,622,682 461,422,556 792,663,807 689,520,070 413,858,347
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 435,925 9,766,399 -- 2,464,035 2,097,169 --
Payable for investments
purchased 10,786,598 31,575,829 2,410,584 -- -- --
Accrued expenses:
Management fees 474,434 995,243 245,114 415,535 186,924 108,148
Other 211,424 446,093 112,271 298,625 133,592 83,414
Preferred share
dividends payable 98,831 201,211 30,950 78,094 84,625 52,864
------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,007,212 42,984,775 2,798,919 3,256,289 2,502,310 244,426
------------------------------------------------------------------------------------------------------------------------------------
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 $585,777,213 $1,254,637,907 $297,623,637 $520,507,518 $454,017,760 $269,613,921
====================================================================================================================================
Common shares outstanding 38,268,278 81,138,036 19,419,608 37,353,512 29,807,822 18,515,282
====================================================================================================================================
Net asset value per Common share
outstanding (net assets
applicable to Common
shares, divided by
Common shares outstanding) $ 15.31 $ 15.46 $ 15.33 $ 13.93 $ 15.23 $ 14.56
====================================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
------------------------------------------------------------------------------------------------------------------------------------
Common shares, $.01
par value
per share $ 382,683 $ 811,380 $ 194,196 $ 373,535 $ 298,078 $ 185,153
Paid-in surplus 534,120,690 1,128,874,275 269,467,179 491,941,518 423,484,088 261,528,621
Undistributed
(Over-distribution of)
net investment income 3,658,654 10,377,919 1,063,304 2,128,188 1,649,541 (198,057)
Accumulated net
realized gain (loss)
from investments and
forward swaps 3,529,359 13,623,564 2,216,110 (1,275,662) (3,699,177) (8,815,896)
Net unrealized appreciation
of investments and
forward swaps 44,085,827 100,950,769 24,682,848 27,339,939 32,285,230 16,914,100
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to
Common shares $585,777,213 $1,254,637,907 $297,623,637 $520,507,518 $454,017,760 $269,613,921
====================================================================================================================================
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.
65
Statement of
OPERATIONS Year Ended October 31, 2005
INSURED INSURED INSURED
INSURED INSURED PREMIER PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INSURED INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 46,546,126 $ 96,849,869 $ 23,231,766 $ 39,330,732 $ 33,083,910 $19,913,246
------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 5,645,119 11,881,859 2,924,904 4,960,083 4,325,015 2,627,330
Preferred shares -
auction fees 795,000 1,700,000 402,500 672,250 582,500 360,000
Preferred shares -
dividend disbursing
agent fees 50,000 70,000 30,000 50,000 30,000 20,000
Shareholders' servicing
agent fees
and expenses 98,112 159,471 40,299 57,420 9,147 5,638
Custodian's fees and
expenses 216,695 429,401 105,753 184,884 155,165 99,707
Directors'/Trustees'
fees and expenses 15,605 35,708 8,179 13,731 11,790 7,106
Professional fees 40,127 78,359 20,498 28,217 33,041 23,823
Shareholders' reports -
printing and
mailing expenses 76,990 168,004 41,953 68,317 61,290 39,015
Stock exchange listing fees 17,428 31,814 10,619 14,713 2,538 1,576
Investor relations expense 121,593 262,400 62,486 103,865 93,510 53,990
Portfolio insurance expense 12,933 33,449 -- -- -- --
Other expenses 51,217 100,360 27,561 42,532 40,659 30,157
------------------------------------------------------------------------------------------------------------------------------------
Total expenses before
custodian fee credit
and expense reimbursement 7,140,819 14,950,825 3,674,752 6,196,012 5,344,655 3,268,342
Custodian fee credit (13,020) (18,842) (9,861) (12,895) (5,885) (4,026)
Expense reimbursement -- -- -- -- (2,094,766) (1,339,983)
------------------------------------------------------------------------------------------------------------------------------------
Net expenses 7,127,799 14,931,983 3,664,891 6,183,117 3,244,004 1,924,333
------------------------------------------------------------------------------------------------------------------------------------
Net investment income 39,418,327 81,917,886 19,566,875 33,147,615 29,839,906 17,988,913
------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss)
from investments 3,528,017 14,031,164 2,211,037 10,740,879 (174,429) 299,519
Net realized gain
(loss) from
forward swaps -- -- -- -- (3,525,412) (9,115,854)
Change in net
unrealized appreciation
(depreciation) of
investments (18,408,001) (53,551,554) (12,070,538) (26,834,953) (10,512,717) (2,445,575)
Change in net unrealized
appreciation (depreciation)
of forward swaps -- -- -- -- 2,750,245 7,736,635
------------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain (loss) (14,879,984) (39,520,390) (9,859,501) (16,094,074) (11,462,313) (3,525,275)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO PREFERRED SHAREHOLDERS
From net investment
income (6,065,197) (13,081,165) (3,104,665) (5,295,715) (4,486,974) (2,741,233)
From accumulated
net realized gains
from investments (159,181) (217,348) (127,563) -- (278,326) (14,037)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets
applicable to
Common shares
from distributions
to Preferred
shareholders (6,224,378) (13,298,513) (3,232,228) (5,295,715) (4,765,300) (2,755,270)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
applicable to
Common shares
from operations $ 18,313,965 $ 29,098,983 $ 6,475,146 $ 11,757,826 $ 13,612,293 $11,708,368
====================================================================================================================================
See accompanying notes to financial statements.
66
Statement of
CHANGES IN NET ASSETS
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
------------------------------ --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 39,418,327 $ 41,214,190 $ 81,917,886 $ 84,808,402
Net realized gain (loss) from investments 3,528,017 2,202,219 14,031,164 2,845,723
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments (18,408,001) 5,112,646 (53,551,554) 13,606,844
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (6,065,197) (2,891,716) (13,081,165) (6,198,825)
From accumulated net realized gains from investments (159,181) (114,034) (217,348) (149,437)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 18,313,965 45,523,305 29,098,983 94,912,707
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (36,927,040) (38,923,489) (74,809,273) (78,914,962)
From accumulated net realized gains from investments (2,090,966) (1,766,378) (2,636,993) (2,358,124)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (39,018,006) (40,689,867) (77,446,266) (81,273,086)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 1,453,639 2,092,259 -- 1,258,836
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 1,453,639 2,092,259 -- 1,258,836
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (19,250,402) 6,925,697 (48,347,283) 14,898,457
Net assets applicable to Common shares at the beginning of year 605,027,615 598,101,918 1,302,985,190 1,288,086,733
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $585,777,213 $605,027,615 $1,254,637,907 $1,302,985,190
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 3,658,654 $ 7,235,743 $ 10,377,919 $ 16,469,788
====================================================================================================================================
See accompanying notes to financial statements.
67
Statement of
CHANGES IN NET ASSETS (continued)
PREMIER INSURED INSURED PREMIUM
INCOME (NIF) INCOME 2 (NPX)
------------------------------ --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 19,566,875 $ 19,991,132 $ 33,147,615 $ 34,776,494
Net realized gain (loss) from investments 2,211,037 1,804,462 10,740,879 4,743,922
Net realized gain (loss) from forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation)
of investments (12,070,538) 5,140,974 (26,834,953) 3,531,341
Change in net unrealized appreciation (depreciation)
of forward swaps -- -- -- --
Distributions to Preferred Shareholders:
From net investment income (3,104,665) (1,461,536) (5,295,715) (2,517,974)
From accumulated net realized gains from investments (127,563) (26,521) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 6,475,146 25,448,511 11,757,826 40,533,783
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (17,999,191) (18,972,928) (30,947,388) (32,708,575)
From accumulated net realized gains from investments (1,655,759) (373,855) -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (19,654,950) (19,346,783) (30,947,388) (32,708,575)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- --
Net proceeds from shares issued to shareholders
due to reinvestment of distributions 136,954 653,067 -- 897,328
Preferred shares offering costs -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 136,954 653,067 -- 897,328
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to
Common shares (13,042,850) 6,754,795 (19,189,562) 8,722,536
Net assets applicable to Common shares at the beginning
of year 310,666,487 303,911,692 539,697,080 530,974,544
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $297,623,637 $310,666,487 $520,507,518 $539,697,080
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 1,063,304 $ 2,607,073 $ 2,128,188 $ 5,255,974
====================================================================================================================================
See accompanying notes to financial statements.
68
INSURED DIVIDEND INSURED TAX-FREE
ADVANTAGE (NVG) ADVANTAGE (NEA)
------------------------------ --------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 29,839,906 $ 30,289,838 $ 17,988,913 $ 18,267,196
Net realized gain (loss) from investments (174,429) 3,840,906 299,519 192,046
Net realized gain (loss) from forward swaps (3,525,412) -- (9,115,854) --
Change in net unrealized appreciation (depreciation)
of investments (10,512,717) 11,761,364 (2,445,575) 10,225,971
Change in net unrealized appreciation (depreciation)
of forward swaps 2,750,245 (2,750,245) 7,736,635 (6,306,628)
Distributions to Preferred Shareholders:
From net investment income (4,486,974) (2,131,112) (2,741,233) (1,362,594)
From accumulated net realized gains from investments (278,326) (140,030) (14,037) (7,435)
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets applicable
to Common shares from operations 13,612,293 40,870,721 11,708,368 21,008,556
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (26,409,732) (27,722,483) (15,062,183) (17,104,309)
From accumulated net realized gains from investments (3,573,972) (2,127,005) (179,616) (98,078)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (29,983,704) (29,849,488) (15,241,799) (17,202,387)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Net proceeds from sale of shares -- -- -- 114,799
Net proceeds from shares issued to shareholders
due to reinvestment of distributions -- -- 35,393 78,604
Preferred shares offering costs -- (108) -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- (108) 35,393 193,403
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares (16,371,411) 11,021,125 (3,498,038) 3,999,572
Net assets applicable to Common shares at the beginning of year 470,389,171 459,368,046 273,111,959 269,112,387
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $454,017,760 $470,389,171 $269,613,921 $273,111,959
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 1,649,541 $ 2,707,005 $ (198,057) $ (383,115)
====================================================================================================================================
See accompanying notes to financial statements.
69
Notes to
FINANCIAL STATEMENTS
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
The funds (the "Funds") covered in this report and their corresponding Common
share stock exchange symbols are Nuveen Insured Quality Municipal Fund, Inc.
(NQI), Nuveen Insured Municipal Opportunity Fund, Inc. (NIO), Nuveen Premier
Insured Municipal Income Fund, Inc. (NIF), Nuveen Insured Premium Income
Municipal Fund 2 (NPX), Nuveen Insured Dividend Advantage Municipal Fund (NVG)
and Nuveen Insured Tax-Free Advantage Municipal Fund (NEA). Common shares of
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) are traded on the New York Stock Exchange
while Common shares of Insured Dividend Advantage (NVG) and Insured Tax-Free
Advantage (NEA) are traded on the American Stock Exchange. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
diversified management investment companies.
Each Fund seeks to provide current income exempt from regular federal income
tax, and in the case of Insured Tax-Free Advantage (NEA) the alternative minimum
tax applicable to individuals, by investing primarily in a diversified portfolio
of municipal obligations issued by state and local government authorities or
certain U.S. territories.
Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous
Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were
merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of
Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the
Adviser to all funds previously advised by either NAC or NIAC.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with U.S.
generally accepted accounting principles.
Investment Valuation
The prices of municipal bonds in each Fund's investment portfolio are provided
by a pricing service approved by the Fund's Board of Directors/Trustees. When
market price quotes are not readily available (which is usually the case for
municipal securities), the pricing service 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. Prices of derivative investments are also provided by an independent
pricing service approved by each Fund's Board of Directors/Trustees. If the
pricing service is unable to supply a price for a municipal bond or derivative
investment, each Fund may use a market price or fair market value quote provided
by a major broker/dealer in such investments. If it is determined that the
market price or fair market value for an investment are unavailable or
inappropriate, the Board of Directors/Trustees of the Funds, or its designee,
may establish a fair value for the investment. Temporary investments in
securities that have variable rate and demand features qualifying them as
short-term investments are valued at amortized cost, which approximates market
value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued and/or delayed delivery basis may have
extended settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued and delayed delivery purchase commitments. At October 31, 2005,
Insured Quality (NQI) and Insured Opportunity (NIO) had outstanding when-issued
and/or delayed delivery purchase commitments of $1,737,277 and $17,739,870,
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.
Investment income also includes paydown gains and losses, if any.
Federal Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all net investment income and net capital
gains to shareholders and to otherwise comply with the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. Therefore, no federal income tax provision is required. Furthermore,
each Fund intends to satisfy conditions which will enable interest from
municipal securities, which is exempt from regular federal 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. All monthly tax-exempt income dividends paid during
the fiscal year ended October 31, 2005, have been designated Exempt Interest
Dividends. Net realized capital gains and ordinary income distributions paid by
the Funds are subject to federal taxation.
70
Dividends and Distributions to Common Shareholders
Dividends from tax-exempt net investment income are declared monthly. Net
realized capital gains and/or market discount from investment transactions, if
any, are distributed to shareholders not less frequently than annually.
Furthermore, capital gains are distributed only to the extent they exceed
available capital loss carryforwards.
Distributions to Common shareholders of tax-exempt net investment income, net
realized capital gains and/or market discount, if any, are recorded on the
ex-dividend date. The amount and timing of distributions are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles.
Preferred Shares
The Funds have issued and outstanding Preferred shares, $25,000 stated value per
share, as a means of effecting financial leverage. Each Fund's Preferred shares
are issued in more than one Series. The dividend rate paid by the Funds on each
Series is determined every seven days, pursuant to a dutch auction process
overseen by the auction agent, and is payable at the end of each rate period.
The number of Preferred shares outstanding, by Series and in total, for each
Fund is as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
---------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,600 4,000 -- 2,080 3,160 --
Series T 2,600 4,000 -- 2,200 3,080 2,880
Series W 2,600 4,000 840 2,080 -- 2,880
Series W2 -- 3,200 -- -- -- --
Series TH 2,320 4,000 2,800 2,200 3,080 --
Series TH2 -- 4,000 -- -- -- --
Series F 2,600 4,000 2,800 2,196 -- --
---------------------------------------------------------------------------------------------------------
Total 12,720 27,200 6,440 10,756 9,320 5,760
=========================================================================================================
Insurance
Insured Quality (NQI), Insured Opportunity (NIO), Premier Insured Income (NIF)
and Insured Premium Income 2 (NPX) invest only in municipal securities which are
either covered by insurance or are backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities, both
of which ensure the timely payment of principal and interest.
Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at
least 80% of their net assets (including net assets attributable to Preferred
shares) in municipal securities that are covered by insurance. Each Fund may
also invest up to 20% of its net assets (including net assets attributable to
Preferred shares) in municipal securities which are either (i) backed by an
escrow or trust containing sufficient U.S. Government or U.S. Government agency
securities, or (ii) rated, at the time of investment, within the four highest
grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to
be of comparable quality by the Adviser.
Each insured municipal security is covered by Original Issue Insurance,
Secondary Market Insurance or Portfolio Insurance. Such insurance does not
guarantee the market value of the municipal securities or the value of the
Funds' Common shares. Original Issue Insurance and Secondary Market Insurance
remain in effect as long as the municipal securities covered thereby remain
outstanding and the insurer remains in business, regardless of whether the Funds
ultimately dispose of such municipal securities. Consequently, the market value
of the municipal securities covered by Original Issue Insurance or Secondary
Market Insurance may reflect value attributable to the insurance. Portfolio
Insurance, in contrast, is effective only while the municipal securities are
held by the Funds. Accordingly, neither the prices used in determining the
market value of the underlying municipal securities nor the Common share net
asset value of the Funds include value, if any, attributable to the Portfolio
Insurance. Each policy of the Portfolio Insurance does, however, give the Funds
the right to obtain permanent insurance with respect to the municipal security
covered by the Portfolio Insurance policy at the time of its sale.
Forward Swap Transactions
The Funds are authorized to invest in certain derivative financial instruments.
The Funds' use of forward interest rate swap transactions is intended to
mitigate the negative impact that an increase in long-term interest rates could
have on Common share net asset value. Forward interest rate swap transactions
involve each Fund's agreement with the counterparty to pay, in the future, a
fixed rate payment in exchange for the counterparty paying the Fund a variable
rate payment, the accruals for which would begin at a specified date in the
future (the "effective date"). The amount of the payment obligation is based on
the notional amount of the forward swap contract, and would increase or decrease
in value based primarily on the extent to which long-term interest rates for
bonds having a maturity of the swaps' termination date were to increase or
decrease. The Funds may close out a contract prior to the effective date, at
which point a realized gain or loss would be recognized. When a forward swap is
terminated, it ordinarily does not involve the delivery of securities or other
underlying assets or principal, but rather is settled in cash on a net basis.
Each Fund intends, but is not obligated to, terminate its forward swaps before
the effective date. Accordingly, the risk of loss with respect to the swap
counterparty on such transactions is limited to the credit risk associated with
a counterparty failing to honor its commitment to pay any realized gain to the
Fund upon termination. To minimize such credit risk, all counterparties are
required to pledge collateral daily (based on the daily valuation of each swap)
on behalf of each Fund with a value approximately equal to the amount of any
unreal-
71
Notes to
FINANCIAL STATEMENTS (continued)
ized gain above a pre-determined threshold. Reciprocally, when any of the Funds
have an unrealized loss on a swap contract, the Funds have instructed the
custodian to pledge assets of the Funds as collateral with a value approximately
equal to the amount of the unrealized loss above a pre-determined threshold.
Collateral pledges are monitored and subsequently adjusted if and when the swap
valuations fluctuate, either up or down, by at least the predetermined threshold
amount.
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.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of increases and
decreases in net assets applicable to Common shares from operations during the
reporting period. Actual results may differ from those estimates.
2. FUND SHARES
Transactions in Common shares were as follows:
INSURED INSURED PREMIER INSURED
QUALITY (NQI) OPPORTUNITY (NIO) INCOME (NIF)
--------------------- ---------------------- ---------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions 91,214 126,022 -- 77,090 8,559 39,908
---------------------------------------------------------------------------------------------------------
INSURED INSURED INSURED
PREMIUM INCOME 2 (NPX) DIVIDEND ADVANTAGE (NVG) TAX-FREE ADVANTAGE (NEA)
---------------------- ------------------------ ------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
10/31/05 10/31/04 10/31/05 10/31/04 10/31/05 10/31/04
---------------------------------------------------------------------------------------------------------
Common shares issued to
shareholders due to
reinvestment of
distributions -- 60,649 -- -- 2,359 5,076
---------------------------------------------------------------------------------------------------------
3. SECURITIES TRANSACTIONS
Purchases and sales (including maturities) of investments in long-term municipal
securities during the fiscal year ended October 31, 2005, 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 $191,466,550 $496,148,321 $91,416,503 $180,005,264 $10,703,714 $ 3,420,373
Sales and maturities 203,567,064 503,034,491 93,223,619 191,066,577 16,261,930 11,823,209
============================================================================================================
72
4. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to the treatment of paydown gains and losses, timing differences
in recognizing taxable market discount and timing differences in recognizing
certain gains and losses on investment transactions.
At October 31, 2005, the cost of investments was as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------
Cost of investments $842,742,486 $1,809,312,315 $428,952,715 $751,804,861 $648,449,352 $394,544,285
================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2005, 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 $46,801,120 $105,492,670 $25,489,469 $30,833,872 $34,457,057 $ 15,510,717
Depreciation (2,327,209) (3,208,641) (753,738) (3,462,442) (4,474,800) (4,036,134)
----------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
of investments $44,473,911 $102,284,029 $24,735,731 $27,371,430 $29,982,257 $ 11,474,583
================================================================================================================
The tax components of undistributed net investment income and net realized gains
at October 31, 2005, 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 * $6,201,252 $14,970,304 $2,420,156 $4,545,989 $3,696,503 $976,133
Undistributed net
ordinary income ** -- 36,367 -- -- -- --
Undistributed net
long-term capital gains 3,529,359 13,623,564 2,216,110 -- -- --
================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 3, 2005, paid on November 1, 2005.
** 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 years ended October
31, 2005 and October 31, 2004, 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
2005 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------
Distributions from
net tax-exempt
income $43,231,354 $88,622,431 $21,307,834 $36,572,931 $31,059,072 $18,006,667
Distributions from
net ordinary income ** 425,383 -- 801,863 -- 320,955 --
Distributions from
net long-term
capital gains 1,943,044 2,854,341 981,459 -- 3,528,645 193,086
================================================================================================================
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
2004 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------
Distributions from
net tax-exempt
income $41,497,482 $84,945,305 $20,407,082 $35,184,856 $29,829,269 $18,503,309
Distributions from
net ordinary income ** 264,316 78,388 -- -- 2,266,382 105,523
Distributions from
net long-term
capital gains 1,880,412 2,507,561 400,376 -- 1,939 --
================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
73
Notes to
FINANCIAL STATEMENTS (continued)
At October 31, 2005, the following Funds had unused capital loss carryforwards
available for federal income tax purposes to be applied against future capital
gains, if any. If not applied the carryforwards will expire as follows;
INSURED INSURED INSURED
PREMIUM DIVIDEND TAX-FREE
INCOME 2 ADVANTAGE ADVANTAGE
(NPX) (NVG) (NEA)
--------------------------------------------------------------------------------
Expiration year:
2008 $1,274,854 $ -- $ --
2009 -- -- --
2010 -- -- --
2011 -- -- --
2012 -- -- --
2013 -- 1,257,089 4,779,762
--------------------------------------------------------------------------------
Total $1,274,854 $1,257,089 $4,779,762
================================================================================
5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets (including net assets attributable to Preferred shares)
of each Fund as follows:
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
AVERAGE DAILY NET ASSETS PREMIER INSURED INCOME (NIF)
(INCLUDING NET ASSETS INSURED PREMIUM INCOME 2 (NPX)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
AVERAGE DAILY NET ASSETS INSURED DIVIDEND ADVANTAGE (NVG)
(INCLUDING NET ASSETS INSURED TAX-FREE ADVANTAGE (NEA)
ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
74
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund assets managed as stated in the table below. As
of October 31, 2005, the complex-level fee rate was .1905%.
COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $55 billion .2000%
For the next $1 billion .1800
For the next $1 billion .1600
For the next $3 billion .1425
For the next $3 billion .1325
For the next $3 billion .1250
For the next $5 billion .1200
For the next $5 billion .1175
For the next $15 billion .1150
For Managed Assets over $91 billion(2) .1400
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate Managed Assets ("Managed Assets" means
the average daily net assets of each fund including assets attributable to
all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds
in the U.S.
(2) With respect to the complex-wide Managed Assets over $91 billion, the fee
rate or rates that will apply to such assets will be determined at a later
date. In the unlikely event that complex-wide Managed Assets reach $91
billion prior to a determination of the complex-level fee rate or rates to
be applied to Managed Assets in excess of $91 billion, the complex-level
fee rate for such complex-wide Managed Assets shall be .1400% until such
time as a different rate or rates is determined.
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to their 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. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
MARCH 31, MARCH 31,
--------------------------------------------------------------------------------
2002* .30% 2008 .25%
2003 .30 2009 .20
2004 .30 2010 .15
2005 .30 2011 .10
2006 .30 2012 .05
2007 .30
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Dividend Advantage (NVG) for any
portion of its fees and expenses beyond March 31, 2012.
For the first eight years of Insured Tax-Free Advantage's (NEA) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets (including net assets attributable to Preferred shares), for fees and
expenses in the amounts and for the time periods set forth below:
YEAR ENDING YEAR ENDING
NOVEMBER 30, NOVEMBER 30,
--------------------------------------------------------------------------------
2002* .32% 2007 .32%
2003 .32 2008 .24
2004 .32 2009 .16
2005 .32 2010 .08
2006 .32
================================================================================
* From the commencement of operations.
The Adviser has not agreed to reimburse Insured Tax-Free Advantage (NEA) for any
portion of its fees and expenses beyond November 30, 2010.
75
Notes to
FINANCIAL STATEMENTS (continued)
6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER
In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul
Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a
substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million
of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an
additional $400 million of its Nuveen shares on a "forward" basis with payment
for and settlement of these shares delayed for several months, and (D) entered
into agreements with two unaffiliated investment banking firms to sell an amount
equal to most or all of its remaining Nuveen shares for current payment but for
future settlement. Transactions (C) and (D) above were settled in late July,
which effectively reduced St. Paul Travelers' controlling stake in Nuveen and
was deemed an "assignment" (as defined in the 1940 Act) of the investment
management agreements between the Funds and the Adviser, which resulted in the
automatic termination of each agreement under the 1940 Act. In anticipation of
such deemed assignment, the Board of Directors/Trustees had approved new ongoing
investment management agreements for each Fund and the submission of those
agreements for approval by each respective Fund's shareholders, which
shareholder approval was received prior to the settlement of transactions (C)
and (D). The new ongoing management agreements took effect upon such settlement.
7. SUBSEQUENT EVENT - DISTRIBUTIONS TO COMMON SHAREHOLDERS
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2005, to shareholders of record
on November 15, 2005, 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 $.0740 $.0710 $.0710 $.0635 $.0705 $.0620
=========================================================================================================
76
Financial
HIGHLIGHTS
77
Financial
HIGHLIGHTS
Selected data for a Common share outstanding throughout each
period:
Investment Operations Less Distributions
--------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 $15.85 $1.03 $ (.39) $(.16) $ -- $ .48 $ (.97) $(.05) $(1.02)
2004 15.72 1.08 .20 (.08) -- 1.20 (1.02) (.05) (1.07)
2003 15.87 1.10 (.05) (.07) (.01) .97 (1.00) (.12) (1.12)
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)
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 16.06 1.01 (.50) (.16) -- .35 (.92) (.03) (.95)
2004 15.89 1.05 .20 (.08) -- 1.17 (.97) (.03) (1.00)
2003 15.83 1.06 .17 (.07) (.01) 1.15 (.97) (.12) (1.09)
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)
PREMIER INSURED INCOME (NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 16.00 1.01 (.49) (.16) (.01) .35 (.93) (.09) (1.02)
2004 15.69 1.03 .36 (.08) -- 1.31 (.98) (.02) (1.00)
2003 15.59 1.05 .13 (.07) -- 1.11 (.98) (.03) (1.01)
2002 15.55 1.14 (.05) (.11) -- .98 (.94) -- (.94)
2001 14.66 1.18 .85 (.26) -- 1.77 (.88) -- (.88)
====================================================================================================================================
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:
2005 $ -- $15.31 $15.31 2.11% 3.09%
2004 -- 15.85 16.00 4.37 7.90
2003 -- 15.72 16.39 12.92 6.27
2002 -- 15.87 15.55 10.82 6.83
2001 -- 15.78 14.92 15.53 14.94
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.46 14.52 (3.72) 2.21
2004 -- 16.06 16.05 9.47 7.64
2003 -- 15.89 15.64 10.22 7.51
2002 -- 15.83 15.21 9.80 7.01
2001 -- 15.72 14.74 19.84 13.61
PREMIER INSURED INCOME (NIF)
---------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.33 14.40 (1.66) 2.16
2004 -- 16.00 15.64 7.55 8.62
2003 -- 15.69 15.51 7.84 7.28
2002 -- 15.59 15.33 6.84 6.57
2001 -- 15.55 15.25 19.97 12.40
=========================================================================================================
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:
2005 $ 585,777 1.19% 6.58% 1.19% 6.58% 21%
2004 605,028 1.19 6.88 1.19 6.88 8
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
INSURED OPPORTUNITY (NIO)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 1,254,638 1.16 6.35 1.16 6.35 25
2004 1,302,985 1.16 6.59 1.16 6.59 8
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
PREMIER INSURED INCOME (NIF)
---------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 297,624 1.20 6.39 1.20 6.40 20
2004 310,666 1.21 6.53 1.20 6.53 13
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
=================================================================================================================================
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:
2005 $318,000 $25,000 $71,052
2004 318,000 25,000 72,565
2003 318,000 25,000 72,021
2002 318,000 25,000 72,287
2001 318,000 25,000 71,934
INSURED OPPORTUNITY (NIO)
-----------------------------------------------------------------------------
Year Ended 10/31:
2005 680,000 25,000 71,126
2004 680,000 25,000 72,904
2003 680,000 25,000 72,356
2002 680,000 25,000 72,182
2001 680,000 25,000 71,862
PREMIER INSURED INCOME (NIF)
-----------------------------------------------------------------------------
Year Ended 10/31:
2005 161,000 25,000 71,215
2004 161,000 25,000 73,240
2003 161,000 25,000 72,191
2002 161,000 25,000 71,758
2001 161,000 25,000 71,530
==============================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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.
See accompanying notes to financial statements.
78-79 SPREAD
Financial HIGHLIGHTS (continued)
Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions
--------------------------------------------------------------- ----------------------------------
Distributions Distributions
from Net from Net
Beginning Investment Capital Investment Capital
Common Net Income to Gains to Income to Gains to
Share Net Realized/ Preferred Preferred Common Common
Net Asset Investment Unrealized Share- Share- Share- Share-
Value Income Gain (Loss) holders+ holders+ Total holders holders Total
====================================================================================================================================
INSURED PREMIUM
INCOME 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 $14.45 $ .89 $ (.44) $(.14) $ -- $ .31 $ (.83) $ -- $ (.83)
2004 14.24 .93 .23 (.07) -- 1.09 (.88) -- (.88)
2003 14.17 .96 .03 (.06) -- .93 (.86) -- (.86)
2002 13.94 .99 .16 (.10) -- 1.05 (.82) -- (.82)
2001 13.05 1.01 .86 (.23) -- 1.64 (.75) -- (.75)
INSURED DIVIDEND
ADVANTAGE (NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 15.78 1.00 (.38) (.15) (.01) .46 (.89) (.12) (1.01)
2004 15.41 1.02 .42 (.07) -- 1.37 (.93) (.07) (1.00)
2003 15.35 1.03 .15 (.07) (.01) 1.10 (.93) (.11) (1.04)
2002(a) 14.33 .55 1.10 (.05) -- 1.60 (.47) -- (.47)
INSURED TAX-FREE
ADVANTAGE (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 14.75 .97 (.19) (.15) -- .63 (.81) (.01) (.82)
2004 14.54 .99 .21 (.07) -- 1.13 (.92) (.01) (.93)
2003(b) 14.33 .82 .42 (.05) -- 1.19 (.78) -- (.78)
====================================================================================================================================
Total Returns
---------------------
Offering Based
Costs and Ending on
Preferred Common Based Common
Share Share Ending on Share Net
Underwriting Net Asset Market Market Asset
Discounts Value Value Value** Value**
=================================================================================================
INSURED PREMIUM
INCOME 2 (NPX)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 $ -- $13.93 $12.83 (3.32)% 2.14%
2004 -- 14.45 14.11 6.42 7.89
2003 -- 14.24 14.12 8.84 6.70
2002 -- 14.17 13.77 6.32 7.83
2001 -- 13.94 13.75 29.46 12.85
INSURED DIVIDEND
ADVANTAGE (NVG)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 15.23 14.17 2.00 2.93
2004 -- 15.78 14.89 7.61 9.19
2003 -- 15.41 14.81 6.10 7.37
2002(a) (.11) 15.35 14.96 2.84 10.44
INSURED TAX-FREE
ADVANTAGE (NEA)
-------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 -- 14.56 13.41 (4.68) 4.33
2004 .01 14.75 14.91 7.41 8.07
2003(b) (.20) 14.54 14.79 3.87 6.98
=================================================================================================
Ratios/Supplemental Data
-------------------------------------------------------------------------------------------------
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 PREMIUM
INCOME 2 (NPX)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 $520,508 1.16% 6.20% 1.16% 6.20% 23%
2004 539,697 1.16 6.52 1.16 6.53 14
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
INSURED DIVIDEND
ADVANTAGE (NVG)
------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2005 454,018 1.15 5.96 .70 6.42 2
2004 470,389 1.15 6.09 .70 6.54 11
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:
2005 269,614 1.19 6.06 .70 6.55 1
2004 273,112 1.20 6.24 .71 6.73 13
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 PREMIUM
INCOME 2 (NPX)
--------------------------------------------------------------------------
Year Ended 10/31:
2005 $268,900 $25,000 $73,392
2004 268,900 25,000 75,176
2003 268,900 25,000 74,365
2002 268,900 25,000 74,070
2001 268,900 25,000 73,280
INSURED DIVIDEND
ADVANTAGE (NVG)
--------------------------------------------------------------------------
Year Ended 10/31:
2005 233,000 25,000 73,714
2004 233,000 25,000 75,471
2003 233,000 25,000 74,288
2002(a) 233,000 25,000 74,081
INSURED TAX-FREE
ADVANTAGE (NEA)
--------------------------------------------------------------------------
Year Ended 10/31:
2005 144,000 25,000 71,808
2004 144,000 25,000 72,415
2003(b) 144,000 25,000 71,721
==========================================================================
* Annualized.
** Total Investment Return on Market Value is the combination of changes in
the market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. Total Return on Common Share Net
Asset Value is the combination of changes in Common share net asset value,
reinvested dividend income at net asset value and reinvested capital gains
distributions at net asset value, if any. 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.
See accompanying notes to financial statements.
80-81 SPREAD
Board Members
AND OFFICERS
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
has ever been a director or employee of, or consultant to, Nuveen or its
affiliates. The names and business addresses of the board members and officers
of the Funds, their principal occupations and other affiliations during the past
five years, the number of portfolios each oversees and other directorships they
hold are set forth below.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 156
3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and
333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996)
Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director
(since 1997) of Nuveen Asset Management; Chairman and
Director of Rittenhouse Asset Management, Inc. (since 1999);
Chairman of Nuveen Investments Advisers Inc. (since 2002).
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS:
------------------------------------------------------------------------------------------------------------------------------------
Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 156
8/22/40
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 156
7/29/34 Northern Trust Company; Director (since 2002) Community
333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United
Chicago, IL 60606 Way of the North Shore.
------------------------------------------------------------------------------------------------------------------------------------
Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 156
10/22/48 corporation (since 1996); Director and Vice Chairman, United
333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member,
Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee
of Coe College; Director, Iowa College Foundation; formerly,
Director, Alliant Energy; formerly, Director, Federal Reserve
Bank of Chicago; formerly, President and Chief Operating Officer,
SCI Financial Group, Inc., a regional financial services firm.
------------------------------------------------------------------------------------------------------------------------------------
William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 156
3/6/48 Business at the University of Connecticut (since 2002);
333 W. Wacker Drive previously, Senior Vice President and Director of Research
Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director
(since 1997), Credit Research Center at Georgetown University;
Director (since 2004) of Xerox Corporation.
------------------------------------------------------------------------------------------------------------------------------------
David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 154
10/28/42 Management, President and CEO, Banc One Investment
333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual
Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One Investment
Management Group; Board of Regents, Luther College;
currently a member of the American and Wisconsin Bar
Associations.
82
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER
------------------------------------------------------------------------------------------------------------------------------------
BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 156
9/24/44 investment company; formerly, Senior Partner and Chief
333 W. Wacker Drive Operating Officer (retired, December 2004), of Miller-Valentine
Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty, a
construction company; Board Member, Chair of the Finance Committee
and member of the Audit Committee of Premier Health Partners, the
not-for-profit company of Miami Valley Hospital; Vice President,
Dayton Philharmonic Orchestra Association; Board Member, Regional
Leaders Forum, which promotes cooperation on economic development
issues; Director, Dayton Development Coalition; formerly, Member,
Community Advisory Board, National City Bank, Dayton, Ohio and
Business Advisory Council, Cleveland Federal Reserve Bank.
------------------------------------------------------------------------------------------------------------------------------------
Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 156
12/29/47 Foundation (since 1994); prior thereto, Executive Director,
333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994).
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 156
1/22/50 Northwestern University (since 1997); Director (since 2003),
333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003),
Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider
of home and community-based services; Chairman (since
1997), Board of Directors, Rubicon, a pure captive insurance
company owned by Northwestern University; Director (since
1997), Evanston Chamber of Commerce and Evanston
Inventure, a business development organization.
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUND:
------------------------------------------------------------------------------------------------------------------------------------
Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 156
9/9/56 Administrative Associate General Counsel, formerly, Vice President and
333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC;
Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004)
and Assistant Secretary, formerly, Vice President of Nuveen
Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Managing Director (since 2002) and Assistant Secretary and
Associate General Counsel, formerly, Vice President (since
1997), of Nuveen Asset Management; Managing Director
(since 2004) and Assistant Secretary (since 1994) of Nuveen
Investments, Inc.; Assistant Secretary of NWQ Investment
Management Company, LLC. (since 2002); Vice President and
Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Managing Director, Associate General Counsel
and Assistant Secretary of Rittenhouse Asset Management,
Inc. (since 2003); Chartered Financial Analyst.
83
Board Members
AND OFFICERS (CONTINUED)
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 156
9/22/63 (since 2002); formerly, Assistant Vice President (since 2000)
333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst.
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 156
2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC.
333 W. Wacker Drive Secretary
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 156
11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments,
333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen
Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3);
Vice President and Treasurer of Nuveen Asset Management
(since 2002) and of Nuveen Investments Advisers Inc. (since
2002); Assistant Treasurer of NWQ Investment Management
Company, LLC. (since 2002); Vice President and Treasurer of
Nuveen Rittenhouse Asset Management, Inc. (since 2003);
Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 156
8/24/61 Investments, LLC (since January 2005); formerly, Director,
333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004),
Chicago, IL 60606 Director, Business Development and Transformation, Deutsche
Trust Bank Japan (2002-2003); previously, Senior Vice President, Head
of Investment Operations and Systems, Scudder Investments Japan,
(2000-2002), Senior Vice President, Head of Plan Administration and
Participant Services, Scudder Investments (1995-2002).
------------------------------------------------------------------------------------------------------------------------------------
Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 156
9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant
333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC;
Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004)
formerly, Assistant Vice President of Nuveen Advisory Corp.
and Nuveen Institutional Advisory Corp.(3); Vice President and
Assistant Secretary (since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 156
10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly,
333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and
Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director
(since 2005) of Nuveen Asset Management.
------------------------------------------------------------------------------------------------------------------------------------
William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 156
3/2/64 Nuveen Investments; Managing Director (1997-2004) of
333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory
Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management
(since 2001); Vice President of Nuveen Investments Advisers
Inc. (since 2002); Chartered Financial Analyst.
------------------------------------------------------------------------------------------------------------------------------------
Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 156
5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and
333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.;
Chicago, IL 60606 Certified Public Accountant.
84
NUMBER OF
PORTFOLIOS IN
POSITION(S) YEAR FIRST FUND COMPLEX
NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY
AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS (CONTINUED):
------------------------------------------------------------------------------------------------------------------------------------
James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 156
4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc.,
333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management,
Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance
(2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory
Corp.(3); formerly, Senior Attorney (1994-2004), The Northern
Trust Company.
------------------------------------------------------------------------------------------------------------------------------------
David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 156
3/22/63 LLC; Certified Public Accountant.
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 156
8/27/61
333 W. Wacker Drive
Chicago, IL 60606
------------------------------------------------------------------------------------------------------------------------------------
Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 156
7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and
333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen
Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005)
and Assistant Secretary of Nuveen Investments, Inc.; Vice
President (since 2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President (since 2000),
Assistant Secretary and Assistant General Counsel (since
1998) of Rittenhouse Asset Management, Inc.; Vice President
and Assistant Secretary of Nuveen Investments Advisers Inc.
(since 2002); Assistant Secretary of NWQ Investment
Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the
Investment Company Act of 1940, because he is an officer and board member
of the Adviser.
(2) Board members serve an indefinite term until his/her successor is elected.
The year first elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were
reorganized into Nuveen Asset Management, effective January 1, 2005.
(4) Officers serve one year terms through July of each year. The year first
elected or appointed represents the year in which the Officer was first
elected or appointed to any fund in the Nuveen Complex.
85
ANNUAL INVESTMENT
MANAGEMENT AGREEMENT
APPROVAL PROCESS
At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds,
including the independent Trustees, unanimously approved the Investment
Management Agreement between each Fund and NAM.
THE APPROVAL PROCESS
To assist the Board in its evaluation of an advisory contract with NAM, the
independent Trustees received a report in adequate time in advance of their
meeting which outlined, among other things, the services provided by NAM; the
organization of NAM, including the responsibilities of various departments and
key personnel; the Fund's past performance as well as the Fund's performance
compared to funds of similar investment objectives compiled by an independent
third party (a "Peer Group"); the profitability of NAM and certain industry
profitability analyses for advisers to unaffiliated investment companies; the
expenses of NAM in providing the various services; the management fees of NAM,
including comparisons of such fees with the management fees of comparable funds
in its Peer Group as well as comparisons of NAM's management fees with the fees
NAM assesses to other types of investment products or accounts, if any; the soft
dollar practices of NAM; and the expenses of each Fund, including comparisons of
the Fund's expense ratios (after any fee waivers) with the expense ratios of its
Peer Group. This information supplements that received by the Board throughout
the year regarding Fund performance, expense ratios, portfolio composition,
trade execution and sales activity.
In addition to the foregoing materials, independent legal counsel to the
independent Trustees provided, in advance of the meeting, a legal memorandum
outlining, among other things, the duties of the Trustees under the 1940 Act as
well as the general principles of relevant state law in reviewing and approving
advisory contracts; the requirements of the 1940 Act in such matters; an
adviser's fiduciary duty with respect to advisory agreements and compensation;
the standards used by courts in determining whether investment company boards of
directors have fulfilled their duties and factors to be considered by the board
in voting on advisory agreements.
At the Board meeting, NAM made a presentation to and responded to questions from
the Board. After the presentations and after reviewing the written materials,
the independent Trustees met privately with their legal counsel to review the
Board's duties in reviewing advisory contracts and consider the renewal of the
advisory contracts. It is with this background that the Trustees considered each
Investment Management Agreement with NAM. The independent Trustees, in
consultation with independent counsel, reviewed the factors set out in judicial
decisions and SEC directives relating to the renewal of advisory contracts. As
outlined in more detail below, the Trustees considered all factors they believed
relevant with respect to each Fund, including the following: (a) the nature,
extent and quality of the services to be provided by NAM; (b) the investment
performance of the Fund and NAM; (c) the costs of the services to be provided
and profits to be realized by NAM and its affiliates from the relationship with
the Fund; (d) the extent to which economies of scale would be realized as the
Fund grows; and (e) whether fee levels reflect these economies of scale for the
benefit of Fund investors.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In evaluating the nature, extent and quality of NAM's services, the Trustees
reviewed information concerning the types of services that NAM or its affiliates
provide and are expected to provide to the Nuveen Funds; narrative and
statistical information concerning the Fund's performance record and how such
performance compares to the Fund's Peer Group; information describing NAM's
organization and its various departments, the experience and responsibilities of
key personnel, and available resources. In the discussion of key personnel, the
Trustees received materials regarding the changes or additions in personnel of
NAM. The Trustees further noted the willingness of the personnel of NAM to
engage in open, candid discussions with the Board. The Trustees further
considered the quality of NAM's investment process in making portfolio
management decisions, including any refinements or improvements to the portfolio
management processes, enhancements to technology and systems that are available
to portfolio managers, and any additions of new personnel which may strengthen
or expand the research and investment capabilities of NAM. In their review of
the advisory contracts for the fixed income funds, such as the Funds, the
Trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed
Income-Large Asset Class, for 2004. Given the Trustees' experience with the
Funds, other Nuveen funds and NAM, the Trustees noted that they were familiar
with and continue to have a good understanding of the organization, operations
and personnel of NAM.
In addition to advisory services, the independent Trustees considered the
quality of the administrative or non-advisory services provided. In this regard,
NAM provides the Funds with such administrative and other services (exclusive
of, and in addition to, any such services provided by others for the Funds) and
officers and other personnel as are necessary for the operations of the
respective Fund. In addition to investment management services, NAM and its
affiliates provide each Fund with a wide range of services, including: preparing
shareholder reports; providing daily accounting; providing quarterly financial
statements; overseeing and coordinating the activities of other service
providers; administering and organizing Board meetings and preparing the Board
materials for such meet-
86
ings; providing legal support (such as helping to prepare registration
statements, amendments thereto and proxy statements and responding to regulatory
inquiries); and performing other Fund administrative tasks necessary for the
operation of the respective Fund (such as tax reporting and fulfilling
regulatory filing requirements). In addition, in evaluating the administrative
services, the Trustees considered, in particular, NAM's policies and procedures
for assuring compliance with applicable laws and regulations in light of the new
SEC regulations governing compliance. The Trustees noted NAM's focus on
compliance and its compliance systems. In their review, the Trustees considered,
among other things, the additions of experienced personnel to NAM's compliance
group and modifications and other enhancements to NAM's computer systems. In
addition to the foregoing, the Trustees also noted that NAM outsources certain
services that cannot be replicated without significant costs or at the same
level of expertise. Such outsourcing has been a beneficial and efficient use of
resources by keeping expenses low while obtaining quality services.
In addition to the above, in reviewing the variety of additional services that
NAM or its affiliates must provide to closed-end funds, such as the Funds, the
independent Trustees determined that Nuveen's commitment to supporting the
secondary market for the common shares of its closed-end funds is particularly
noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor
numerous forums for analysts and specialists regarding the various Nuveen
closed-end funds, its creation of a new senior position dedicated to providing
secondary market support services and enhancing communications with investors
and analysts, and its advertising and media relations efforts designed to raise
investor and analyst awareness of the closed-end funds.
With respect to services provided to municipal funds, including the Funds, the
Trustees also noted, among other things, the enhancements NAM implemented to its
municipal portfolio management processes (e.g., the increased use of benchmarks
to guide and assess the performance of its portfolio managers); the
implementation of a risk management program; and the various initiatives being
undertaken to enhance or modify NAM's computer systems as necessary to support
the innovations of the municipal investment team (such as, the ability to assess
certain historical data in order to create customized benchmarks, perform
attribution analysis and facilitate the use of derivatives as hedging
instruments). With respect to certain of the Nuveen funds with a less seasoned
portfolio, the Trustees also noted the hedging program implemented for such
funds and the team responsible for developing, implementing and monitoring the
hedging procedures. The hedging program was designed to help maintain the
applicable fund's duration with certain benchmarks.
Based on their review, the Trustees concluded that, overall, they were satisfied
with the nature, extent and quality of services provided (and expected to be
provided) to the Funds under the Investment Management Agreements.
B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER
As previously noted, the Board received a myriad of performance information
regarding each Fund and its Peer Group. Among other things, the Board received
materials reflecting a Fund's historic performance and the Fund's performance
compared to its Peer Group. In evaluating the performance information, in
certain limited instances, the Trustees noted that the closest Peer Group for a
Fund still would not adequately reflect such Fund's investment objectives and
strategies, thereby limiting the usefulness of the comparisons of such Fund's
performance with that of the Peer Group.
As noted above, the performance data included, among other things, the
respective Fund's performance relative to its peers. More specifically, a Fund's
one-, three- and five-year total returns (as applicable) for the periods ending
December 31, 2004 were evaluated relative to the unaffiliated funds in its
respective Peer Group (including the returns of individual peers as well as the
Peer Group average) as well as additional performance information with respect
to all funds in the Peer Group. Based on their review, the Trustees determined
that the respective Fund's absolute and relative investment performance over
time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. FEES AND EXPENSES
In evaluating the management fees and expenses that a Fund is expected to
bear, the Trustees considered the respective Fund's current management fee
structure and the Fund's expected expense ratios in absolute terms as well as
compared with the fees and expense ratios of the unaffiliated funds in its
Peer Group. The Trustees reviewed the financial information of NAM, including
its respective revenues, expenses and profitability. In reviewing fees, the
Trustees, among other things, reviewed comparisons of the Fund's gross
management fees (fees after fund-level and complex-wide level breakpoints but
before reimbursement and fee waivers), net management fees (after breakpoints
and reimbursements and fee waivers) and total expense ratios (before and
after waivers) with those of the unaffiliated funds in the Peer Group and
peer averages. In this regard, the Trustees noted that the relative ranking
of the Nuveen funds on fees and expenses was aided by the significant level
of fee reductions provided by the fund-level and complex-wide breakpoint
schedules, and the fee waivers and reimbursements provided by Nuveen for
certain funds launched since 1999. The complex-wide breakpoint schedule was
instituted in 2004 and is described in further detail below in Section D
entitled "Economies of Scale and Whether Fee Levels Reflect these Economies
of Scale." In their review of the fee and expense information provided,
including, in particular, the expense ratios of the unaffiliated funds in the
respective Peer Group, the Trustees determined that each Fund's net total
expense ratio was within an acceptable range compared to such peers.
2. COMPARISONS WITH THE FEES OF OTHER CLIENTS
The Trustees further compared the fees of NAM to the fees NAM assessed for
other types of clients investing in municipal funds (such as municipal
managed accounts). With respect to such separately managed accounts, the
advisory fees for such accounts are generally lower than those charged to the
comparable Funds. The Trustees noted, however, the additional services that
are provided and the costs incurred by Nuveen in managing and operating
registered investment companies, such as the Funds, compared to individually
managed separate accounts. For instance, as described above, NAM and its
affiliates provide numerous services to the Funds including, but not limited
to, preparing shareholder reports; providing daily accounting; preparing
quarterly
87
ANNUAL INVESTMENT MANAGEMENT
AGREEMENT APPROVAL PROCESS (continued)
financial statements; overseeing and coordinating the activities of other
service providers; administering and organizing Board meetings and preparing
the Board materials for such meetings; providing legal support; and
administering all other aspects of the Fund's operations. Further, the
Trustees noted the increased compliance requirements for funds in light of
new SEC regulations and other legislation. These services are generally not
required to the same extent, if at all, for separate accounts. In addition to
the differences in services, the Trustees also considered, among other
things, the differences in product distribution, investment policies,
investor profiles and account sizes. Accordingly, the Trustees believe that
the nature and number of services provided to operate a Fund merit the higher
fees than those to separate managed accounts.
3. PROFITABILITY OF NAM
In conjunction with its review of fees, the Trustees also considered NAM's
profitability. The Trustees reviewed NAM's revenues, expenses and
profitability margins (on both a pre-tax and after-tax basis). In reviewing
profitability, the Trustees recognized that one of the most difficult issues
in determining profitability is establishing a method of allocating expenses.
Accordingly, the Trustees reviewed NAM's assumptions and methodology of
allocating expenses. In this regard, the methods of allocation used appeared
reasonable but the Board noted the inherent limitations in allocating costs
among various advisory products. The Trustees also recognized that individual
fund or product line profitability of other advisers is generally not
publicly available. Further, profitability may be affected by numerous
factors including the types of funds managed, expense allocations, business
mix, etc. and therefore comparability of profitability is somewhat limited.
Nevertheless, to the extent available, the Trustees considered NAM's profit
margin compared to the profitability of various publicly-traded investment
management companies and/or investment management companies that publicly
disclose some or all of their financial results compiled by three independent
third-party service providers. The Trustees also reviewed the revenues,
expenses and profit margins of various unaffiliated advisory firms with
similar amounts of assets under management for the last year prepared by NAM.
Based on their review, the Trustees were satisfied that NAM's level of
profitability from its relationship with each Fund was reasonable in light of
the services provided.
In evaluating the reasonableness of the compensation, the Trustees also
considered any other revenues paid to NAM as well as any indirect benefits
(such as soft dollar arrangements, if any) NAM and its affiliates are
expected to receive that are directly attributable to their management of the
Funds, if any. See Section E below for additional information. Based on their
review of the overall fee arrangements of the applicable Fund, the Trustees
determined that the advisory fees and expenses of the respective Fund were
reasonable.
D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE
In reviewing the compensation, the Trustees have long understood the benefits of
economies of scale as the assets of a fund grow and have sought to ensure that
shareholders share in these benefits. One method for shareholders to share in
economies of scale is to include breakpoints in the advisory fee schedules that
reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed
the schedules of advisory fees for each Fund, including fund-level breakpoints
thereto. In addition, after lengthy negotiations with management, the Board in
May, 2004 approved a complex-wide fee arrangement pursuant to which fees of the
funds in the Nuveen complex, including the Funds, are reduced as the assets in
the fund complex reach certain levels. The complex-wide fee arrangement was
introduced on August 1, 2004 and the Trustees reviewed data regarding the
reductions of fees for the Nuveen funds for the period of August 1, 2004 to
December 31, 2004. In evaluating the complex-wide fee arrangement, the Trustees
considered, among other things, the historic and expected fee savings to
shareholders as assets grow, the amount of fee reductions at various asset
levels, and that the arrangement would extend to all funds in the Nuveen
complex. The Trustees also considered the impact, if any, the complex-wide fee
arrangement may have on the level of services provided. Based on their review,
the Trustees concluded that the breakpoint schedule and complex-wide fee
arrangement currently were acceptable and desirable in providing benefits from
economies of scale to shareholders.
E. INDIRECT BENEFITS
In evaluating fees, the Trustees also considered any indirect benefits or
profits NAM or its affiliates may receive as a result of its relationship with
each Fund. In this regard, the Trustees considered any benefits from soft dollar
arrangements. The Trustees noted that although NAM manages a large amount of
assets, it has very little, if any, brokerage to allocate. This is due to the
fact that NAM typically manages the portfolios of the municipal funds in the
Nuveen complex and municipal bonds generally trade on a principal basis.
Accordingly, NAM does not currently have any soft dollar arrangements and does
not pay excess brokerage commissions (or spreads on principal transactions) in
order to receive research services. In addition to soft dollar arrangements, the
Trustees also con-
88
sidered any other revenues, if any, received by NAM or its affiliates. In this
regard, the Trustees considered revenues received by Nuveen for serving as agent
for broker-dealers at its preferred trading desk and for acting as co-manager in
the initial public offering of new closed-end exchange-traded funds.
F. OTHER CONSIDERATIONS
Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers
Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its
intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM.
Pursuant to a series of transactions, St. Paul had begun to reduce its interest
in Nuveen which will ultimately result in a change of control of Nuveen and
therefore NAM. As mandated by the 1940 Act, such a change in control would
result in an assignment of the Investment Management Agreements with NAM and the
automatic termination of such agreements. Accordingly, the Board also considered
the approval of a New Investment Management Agreement with each Fund in light
of, and which would take effect upon, the anticipated change of control. More
specifically, the Board considered for each Fund a New Investment Management
Agreement on substantially identical terms to the existing Investment Management
Agreement, to take effect after the change of control has occurred and the
contract has been approved by Fund shareholders. In its review, the Board
considered whether the various transactions necessary to divest St. Paul's
interest will have an impact on the various factors they considered in approving
NAM, such as the scope and quality of services to be provided following the
change of control. In reviewing the St. Paul transactions, the Board considered,
among other things, the impact, if any, on the operations and organizational
structure of NAM; the possible benefits and costs of the transactions to the
respective Fund; the potential implications of any arrangements used by Nuveen
to finance certain of the transactions; the ability of NAM to perform its duties
after the transactions; whether a fee structure or expense ratio would change;
any changes to the current practices of the respective Fund; any changes to the
terms of the advisory agreement; and any anticipated changes to the respective
operations of NAM. Based on its review, the Board determined that St. Paul's
divestiture would not affect the nature and quality of services provided by NAM,
the terms of the respective Investment Management Agreement, including the fees
thereunder, and would not materially affect the organization or operations of
NAM. Accordingly, the Board determined that their analysis of the various
factors regarding their approval of NAM would continue to apply after the change
of control.
G. APPROVAL
The Trustees did not identify any single factor discussed previously as
all-important or controlling. The Trustees, including a majority of independent
Trustees, concluded that the terms of the Investment Management Agreements were
fair and reasonable, that NAM's fees are reasonable in light of the services
provided to each Fund, that the renewal of the NAM Investment Management
Agreements should be approved and that the new, post-change of control NAM
Investment Managements Agreement be approved and recommended to shareholders.
89
Reinvest Automatically
EASILY AND CONVENIENTLY
Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET
UP YOUR REINVESTMENT ACCOUNT.
NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS
DIVIDEND REINVESTMENT PLAN
Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest
dividends and/or capital gains distributions in additional fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
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
the shares may increase before purchases are completed, the average purchase
price per share may exceed the market price at the time of valuation, resulting
in the acquisition of fewer shares than if the dividend or distribution had been
paid in shares issued by the Fund. A pro rata portion of any applicable
brokerage commissions on open market purchases will be paid by Plan
participants. These commissions usually will be lower than those charged on
individual transactions.
FLEXIBLE
You may change your distribution option or withdraw from the Plan at any time,
should your needs or situation change. Should you withdraw, you can receive a
certificate for all whole shares credited to your reinvestment account and cash
payment for fractional shares, or cash payment for all reinvestment account
shares, less brokerage commissions and a $2.50 service fee.
You can reinvest whether your shares are registered in your name, or in the name
of a brokerage firm, bank, or other nominee. Ask your investment advisor if his
or her firm will participate on your behalf. Participants whose shares are
registered in the name of one firm may not be able to transfer the shares to
another firm and continue to participate in the Plan.
The Fund reserves the right to amend or terminate the Plan at any time. Although
the Fund reserves the right to amend the Plan to include a service charge
payable by the participants, there is no direct service charge to participants
in the Plan at this time.
CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS
For more information on the Nuveen Automatic Reinvestment Plan or to enroll in
or withdraw from the Plan, speak with your financial advisor or call us at (800)
257-8787.
90
Other Useful
INFORMATION
In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers")
sold the majority of its controlling equity interest in Nuveen Investments, Inc.
("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset
Management ("NAM"), which is each Fund's investment manager. This sale was
deemed to be an "assignment" of the investment management agreement between each
Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and
the Fund's sub-adviser. As required by law, the shareholders of each Fund were
asked to approve a new investment management agreement and, if applicable, a new
subadvisory agreement that reflected this change in ownership. The shareholders
of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005.
There were no changes to the investment objectives or management of any Fund as
a result of these actions.
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
Each Fund's (i) quarterly portfolio of investments, (ii) information regarding
how the Funds voted proxies relating to portfolio securities held during the
12-month period ended June 30, 2005, and (iii) a description of the policies and
procedures that the Funds used to determine how to vote proxies relating to
portfolio securities are available without charge, upon request, by calling
Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at
www.nuveen.com.
You may also obtain this and other Fund information directly from the Securities
and Exchange Commission ("SEC"). The SEC may charge a copying fee for this
information. Visit the SEC on-line at http://www.sec.gov or in person at the
SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090
for room hours and operation. You may also request Fund information by sending
an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public
References Section at 450 Fifth Street NW, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
the annual CEO certification as required by Section 303A.12(a) of the NYSE
Listed Company Manual.
Each Fund has filed with the Securities and Exchange Commission the
certification of its Chief Executive Officer and Chief Financial Officer
required by Section 302 of the Sarbanes-Oxley Act.
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 that would have been necessary each year to equal the
investment's actual cumulative performance (including change in NAV or market
price and reinvested dividends and capital gains distributions, if any) over the
time period being considered.
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 the expected period over
which a bond's principal and interest will be paid, and consequently is a
measure of the sensitivity of a bond's or bond Fund's value to changes when
market interest rates change. Generally, the longer a bond's or Fund's duration,
the more the price of the bond or Fund will change as interest rates change.
Leverage-adjusted duration takes into account the leveraging process for a Fund
and therefore is longer than the duration of the Fund's portfolio of bonds.
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 common share NAV per share is calculated by
subtracting the liabilities of the Fund (including any MuniPreferred shares
issued in order to leverage the Fund) from its total assets and then dividing
the remainder by the number of shares outstanding. Fund NAVs are calculated at
the end of each business day.
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.
BOARD OF DIRECTORS/TRUSTEES
Robert P. Bremner
Lawrence H. Brown
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Timothy R. Schwertfeger
Judith M. Stockdale
Eugene S. Sunshine
FUND MANAGER
Nuveen Asset Management
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 REGISTERED PUBLIC ACCOUNTING FIRM
Ernst & Young LLP
Chicago, IL
Each Fund intends to repurchase shares of its own common or preferred stock in
the future at such times and in such amounts as is deemed advisable. No shares
were repurchased during the period covered by this report. Any future
repurchases will be reported to shareholders in the next annual or semiannual
report.
91
Nuveen Investments:
SERVING Investors
For GENERATIONS
Photo of: 2 women looking at a photo album.
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.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Managing more than $131 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 fixed-income 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.
FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS.
To learn more about the products and services Nuveen Investments offers, talk to
your financial advisor, or call us at (800) 257-8787. Please read the
information provided carefully before you invest.
Be sure to obtain a prospectus, where applicable. Investors should consider the
investment objective and policies, risk considerations, charges and expenses of
the Fund carefully before investing. The prospectus contains this and other
information relevant to an investment in the Fund. For a prospectus, please
contact your securities representative or Nuveen Investments, 333 W. Wacker Dr.,
Chicago, IL 60606. Please read the prospectus carefully before you invest or
send money.
o Share prices
o Fund details
Learn more o Daily financial news
about Nuveen Funds at o Investor education
WWW.NUVEEN.COM/ETF o Interactive planning tools
Logo: NUVEEN Investments
EAN-D-1005D
ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions. There were no amendments to or waivers
from the Code during the period covered by this report. The registrant has
posted the code of ethics on its website at www.nuveen.com/etf. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then click on Code of Conduct.)
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Directors or Trustees determined that the registrant
has at least one "audit committee financial expert" (as defined in Item 3 of
Form N-CSR) serving on its Audit Committee. The registrant's audit committee
financial expert is Jack B. Evans, Chairman of the Audit Committee, who is
"independent" for purposes of Item 3 of Form N-CSR.
Mr. Evans was formerly President and Chief Operating Officer of SCI Financial
Group, Inc., a full service registered broker-dealer and registered investment
adviser ("SCI"). As part of his role as President and Chief Operating Officer,
Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and
actively supervised the CFO's preparation of financial statements and other
filings with various regulatory authorities. In such capacity, Mr. Evans was
actively involved in the preparation of SCI's financial statements and the
resolution of issues raised in connection therewith. Mr. Evans has also served
on the audit committee of various reporting companies. At such companies, Mr.
Evans was involved in the oversight of audits, audit plans, and the preparation
of financial statements. Mr. Evans also formerly chaired the audit committee of
the Federal Reserve Bank of Chicago.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Nuveen Insured Tax-Free Advantage Municipal Fund
The following tables show the amount of fees that Ernst & Young LLP, the Fund's
auditor, billed to the Fund during the Fund's last two full fiscal years. For
engagements with Ernst & Young LLP entered into on or after May 6, 2003, the
Audit Committee approved in advance all audit services and non-audit services
that Ernst & Young LLP provided to the Fund, except for those non-audit services
that were subject to the pre-approval exception under Rule 2-01 of Regulation
S-X (the "pre-approval exception"). The pre-approval exception for services
provided directly to the Fund waives the pre-approval requirement for services
other than audit, review or attest services if: (A) the aggregate amount of all
such services provided constitutes no more than 5% of the total amount of
revenues paid by the Fund to its accountant during the fiscal year in which the
services are provided; (B) the Fund did not recognize the services as non-audit
services at the time of the engagement; and (C) the services are promptly
brought to the Audit Committee's attention, and the Committee (or its delegate)
approves the services before the audit is completed.
The Audit Committee has delegated certain pre-approval responsibilities to its
Chairman (or, in his absence, any other member of the Audit Committee).
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES
FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2005 $ 15,435 $ 0 $ 947 $ 2,750
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 14,746 $ 0 $ 2,704 $ 2,550
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon
procedures required by the rating agencies to rate fund preferred shares. The
above "Tax Fees" were billed for professional services for tax advice, tax
compliance, and tax planning.
SERVICES THAT THE FUND'S AUDITOR BILLED TO THE
ADVISER AND AFFILIATED FUND SERVICE PROVIDERS
The following tables show the amount of fees billed by Ernst & Young LLP to
Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling,
controlled by or under common control with NAM ("Control Affiliate") that
provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for
engagements directly related to the Fund's operations and financial reporting,
during the Fund's last two full fiscal years.
The tables also show the percentage of fees subject to the pre-approval
exception. The pre-approval exception for services provided to the Adviser and
any Affiliated Fund Service Provider (other than audit, review or attest
services) waives the pre-approval requirement if: (A) the aggregate amount of
all such services provided constitutes no more than 5% of the total amount of
revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund
Service Providers during the fiscal year in which the services are provided that
would have to be pre-approved by the Audit Committee; (B) the Fund did not
recognize the services as non-audit services at the time of the engagement; and
(C) the services are promptly brought to the Audit Committee's attention, and
the Committee (or its delegate) approves the services before the Fund's audit is
completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES
BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER
AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND
SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS
---------------------------------------------------------------------------------------------------------------------
October 31, 2005 $ 0 $ 282,575 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
October 31, 2004 $ 0 $ 0 $ 0
---------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
---------------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax
return preparation.
NON-AUDIT SERVICES
The following table shows the amount of fees that Ernst & Young LLP billed
during the Fund's last two full fiscal years for non-audit services. For
engagements entered into on or after May 6, 2003, the Audit Committee is
required to pre-approve non-audit services that Ernst & Young LLP provides to
the Adviser and any Affiliated Fund Services Provider, if the engagement related
directly to the Fund's operations and financial reporting (except for those
subject to the de minimis exception described above). The Audit Committee
requested and received information from Ernst & Young LLP about any non-audit
services that Ernst & Young LLP rendered during the Fund's last fiscal year to
the Adviser and any Affiliated Fund Service Provider. The Committee considered
this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES
BILLED TO ADVISER AND
AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES
PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND
RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE
TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER
BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2005 $ 3,697 $ 282,575 $ 0 $ 286,272
October 31, 2004 $ 5,254 $ 0 $ 0 $ 5,254
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed
to Adviser in the amount of $282,575 from previous table.
Audit Committee Pre-Approval Policies and Procedures. Generally, the audit
committee must approve (i) all non-audit services to be performed for the Fund
by the Fund's independent accountants and (ii) all audit and non-audit services
to be performed by the Fund's independent accountants for the Affiliated Fund
Service Providers with respect to operations and financial reporting of the
Fund. Regarding tax and research projects conducted by the independent
accountants for the Fund and Affiliated Fund Service Providers (with respect to
operations and financial reports of the Fund) such engagements will be (i)
pre-approved by the audit committee if they are expected to be for amounts
greater than $10,000; (ii) reported to the audit committee chairman for his
verbal approval prior to engagement if they are expected to be for amounts under
$10,000 but greater than $5,000; and (iii) reported to the audit committee at
the next audit committee meeting if they are expected to be for an amount under
$5,000.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
The registrant's Board of Directors or Trustees has a separately designated
audit committee established in accordance with Section 3(a)(58)(A) of the
Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The
members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B.
Evans, William J. Schneider and Eugene S. Sunshine.
ITEM 6. SCHEDULE OF INVESTMENTS.
See Portfolio of Investments in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
In the rare event that a municipal issuer held by the Fund were to issue a proxy
or that the Fund were to receive a proxy issued by a cash management security,
the Adviser would either engage an independent third party to determine how the
proxy should be voted or vote the proxy with the consent, or based on the
instructions, of the Fund's Board of Directors or Trustees or its
representative. In the case of a conflict of interest, the proxy would be
submitted to the applicable Fund's Board to determine how the proxy should be
voted. A member of the Adviser's legal department would oversee the
administration of the voting, and ensure that records were maintained in
accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17
CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the
results were provided to the Board of Directors or Trustees and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board implemented after the registrant
last provided disclosure in response to this Item.
ITEM 11. 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 second fiscal quarter
of the period covered by this report that has materially affected, or
is reasonably likely to materially affect, the registrant's internal
control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(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
because the code is posted on registrant's website at www.nuveen.com/etf and
there were no amendments during the period covered by this report. (To view the
code, click on the Investor Resources drop down menu box, click on Fund
Governance and then Code of Conduct.)
(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.
(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 Tax-Free Advantage Municipal Fund
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By (Signature and Title)* /s/ Jessica R. Droeger
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Jessica R. Droeger
Vice President and Secretary
Date: January 6, 2006
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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
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Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: January 6, 2006
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By (Signature and Title)* /s/ Stephen D. Foy
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Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 6, 2006
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* Print the name and title of each signing officer under his or her signature.