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)
Kevin J. McCarthy
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, 2009
------------------
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.
LOGO: NUVEEN INVESTMENTS
Closed-End Funds
Nuveen Investments
Municipal Closed-End Funds
IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R)
Annual Report October 31, 2009
----------------- --------------------- ------------------
NUVEEN INSURED NUVEEN INSURED NUVEEN PREMIER
QUALITY MUNICIPAL MUNICIPAL OPPORTUNITY INSURED MUNICIPAL
FUND, INC. FUND, INC. INCOME FUND, INC.
NQI NIO NIF
----------------- --------------------- ------------------
NUVEEN INSURED NUVEEN INSURED NUVEEN INSURED
PREMIUM INCOME DIVIDEND ADVANTAGE TAX-FREE ADVANTAGE
MUNICIPAL FUND 2 MUNICIPAL FUND MUNICIPAL FUND
NPX NVG NEA
OCTOBER 09
LIFE IS COMPLEX.
Nuveen makes things e-simple.
It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive
an e-mail as soon as your Nuveen Investments Fund information is ready. No more
waiting for delivery by regular mail. Just click on the link within the e-mail
to see the report and save it on your computer if you wish.
Free e-Reports right to your e-mail!
WWW.INVESTORDELIVERY.COM
If you receive your Nuveen Fund dividends and statements from your financial
advisor or brokerage account.
OR
WWW.NUVEEN.COM/ACCOUNTACCESS
If you receive your Nuveen Fund dividends and statements directly from Nuveen.
LOGO: NUVEEN INVESTMENTS
Chairman's
Letter to Shareholders
[PHOTO OF ROBERT P. BREMNER]
DEAR SHAREHOLDER,
The financial markets in which your Fund operates continue to reflect the larger
economic crosscurrents. The illiquidity that infected global credit markets over
the last year continues to recede but there is concern about the impact of a
reduction in official liquidity support programs. The major institutions that
are the linchpin of the international financial system have strengthened their
capital structures, but many still struggle with losses in their various
portfolios. Global trends include increasing trade and concern about the ability
of the U.S. government to address its substantial budgetary deficits.
While the fixed-income and equity markets have recovered from the lows recorded
in the first quarter of 2009, identifying those developments that will define
the future is never easy, and rarely is it more difficult than at present. A
fundamental component of a successful investment program is a commitment to
remain focused on long-term investment goals even during periods of heightened
market uncertainty. Another component is to re-evaluate investment disciplines
and tactics and to confirm their validity following periods of extreme
volatility and market dislocation, such as we have recently experienced. Your
Board carried out an intensive review of investment performance with these
objectives in mind during April and May of 2009 as part of the annual management
contract renewal process. I encourage you to read the description of this
process in the Annual Investment Management Agreement Approval Process section
of this report. Confirming the appropriateness of a long term investment
strategy is as important for our shareholders as it is for our professional
investment managers. For that reason, I again encourage you to remain in
communication with your financial consultant on this subject.
In September 2009, Nuveen completed the refinancing, at par, of all the auction
rate preferred shares issued by its taxable closed-end funds. On October 15,
Nuveen announced the first successful offering of an issue of MuniFund Term
Preferred Shares. This new form of preferred securities joins the Variable Rate
Demand Preferred securities as vehicles for refinancing existing municipal fund
auction rate preferred shares (ARPS). By the beginning of December 2009, six of
the leveraged municipal closed-end funds had redeemed all of their outstanding
ARPS. Nuveen remains committed to resolving the issues connected with
outstanding auction rate preferred shares. Please consult the Nuveen web site
for the most recent information on this issue and all recent developments on
your Nuveen Funds at: www.nuveen.com.
On behalf of the other members of your Fund's Board, we look forward to
continuing to earn your trust in the months and years ahead.
Sincerely,
/s/ Robert P. Bremner
----------------------
Robert P. Bremner
Chairman of the Board
December 21, 2009
Nuveen Investments 1
Fund Merger and Management Consolidation
Effective October 16, 2009, four Nuveen Florida closed-end Funds were
reorganized into three existing Nuveen national closed-end municipal bond Funds
(collectively, the "Reorganizations"). Each Reorganization was approved by the
shareholders of the respective Nuveen Florida and national Funds.
The closed-end Funds within this shareholder report (NIO) and (NEA) have been
merged as follows:
Nuveen Insured Florida Premium Income Municipal Fund (NFL) into Nuveen
Insured Municipal Opportunity Fund, Inc. (NIO)
Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into Nuveen
Insured Tax-Free Advantage Municipal Fund (NEA)
Prior to the Reorganization, each Fund provided current income exempt from
regular federal income tax, and in the case of NWF and NEA the alternative
minimum tax applicable to individuals. The Florida Funds invested primarily in a
portfolio of municipal obligations issued by state and local government
authorities within the state of Florida or certain U.S. territories. NIO and NEA
invest primarily in a portfolio of municipal obligations issued by state and
local government authorities or certain U.S. territories. As the surviving
Funds, the investment objectives and strategies of NIO and NEA remain unchanged,
and the reorganized Funds will pursue their investment objectives and
strategies.
2 Nuveen Investments
Portfolio Manager's Comments
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)
Portfolio manager Paul Brennan discusses U.S. economic and municipal market
conditions, key investment strategies, and the twelve-month performance of these
six insured Funds. With 20 years of investment experience, including twelve
years at Nuveen, Paul assumed portfolio management responsibility for NQI, NIO,
NIF, NPX, NVG and NEA in 2006.
WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE
TWELVE-MONTH REPORTING PERIOD ENDED OCTOBER 31, 2009?
During this reporting period, municipal bond prices generally rose as strong
cash flows into municipal bond funds combined with tighter supply of new
tax-exempt issuance to provide favorable supply and demand conditions. As the
period began, there continued to be considerable downward pressure on the
economy. In an effort to improve overall economic conditions, the Federal
Reserve (Fed) continued to cut interest rates, lowered the fed funds rate, to a
target range of zero to 0.25% in December 2008, the lowest level on record. In
February 2009, the federal government augmented its efforts to boost the economy
by passing a $787 billion stimulus package, which joined the $700 billion
financial industry rescue package it had passed in late 2008. In March 2009, the
Fed announced that, in addition to maintaining the current rate, it would buy
$300 billion in long-term Treasury securities in an effort to support private
credit markets and up to an additional $750 billion in agency mortgage-backed
securities to bolster the credit and housing markets.
In recent months, the measures taken by the Fed and others to ease the economic
recession have produced some incipient signs of improvement. In the third
quarter of 2009, the U.S. economy, as measured by the U.S. gross domestic
product (GDP), posted positive growth (2.8% annualized) for the first time since
the second quarter of 2008. Housing prices also provided a bright spot between
June and September 2009 by recording four consecutive months of positive
returns, the first following three years of decline. At the same time, inflation
remained muted, as the Consumer Price Index (CPI),
CERTAIN STATEMENTS IN THIS REPORT ARE FORWARD-LOOKING STATEMENTS.
DISCUSSIONS OF SPECIFIC INVESTMENTS ARE FOR ILLUSTRATION ONLY AND ARE NOT
INTENDED AS RECOMMENDATIONS OF INDIVIDUAL INVESTMENTS. THE FORWARD-LOOKING
STATEMENTS AND OTHER VIEWS EXPRESSED HEREIN ARE THOSE OF THE PORTFOLIO
MANAGER AS OF THE DATE OF THIS REPORT. ACTUAL FUTURE RESULTS OR
OCCURRENCES MAY DIFFER SIGNIFICANTLY FROM THOSE ANTICIPATED IN ANY
FORWARD-LOOKING STATEMENTS, AND THE VIEWS EXPRESSED HEREIN ARE SUBJECT TO
CHANGE AT ANY TIME, DUE TO NUMEROUS MARKET AND OTHER FACTORS. THE FUNDS
DISCLAIM ANY OBLIGATION TO UPDATE PUBLICLY OR REVISE ANY FORWARD-LOOKING
STATEMENTS OR VIEWS EXPRESSED HEREIN.
Nuveen Investments 3
reflecting a 14% drop in energy prices, fell 0.2% year-over-year as of October
2009. This marked the seventh straight month that consumer prices dropped from
their levels of a year earlier, the longest such decline since 1954-1955. The
core CPI (which excludes food and energy) rose 1.7% over the year, within the
Fed's unofficial objective of 2.0% or lower for this measure. However, the
economy continued to be stressed by weakness in the labor markets. October 2009
marked the 22nd consecutive month of net job losses, with a total of 7.3 million
jobs lost since the recession began in December 2007. This is the biggest
decline since the Great Depression. The national unemployment rate for October
2009 was 10.2%, a 26-year high, up from 6.6% in October 2008.
Municipal market conditions began to show general signs of improvement in
mid-December 2008, and municipal bonds continued to improve throughout most of
2009. This trend was bolstered by the reduced supply of tax-exempt municipal
debt in the marketplace, due in part to the introduction of the Build America
Bond program in April 2009. Build America Bonds are a new class of taxable
municipal debt created as part of the February 2009 economic stimulus package.
These bonds offer municipal issuers a federal subsidy equal to 35% of the
security's interest payments, and therefore provide issuers with an attractive
alternative to traditional tax-exempt debt. As of October 31, 2009, taxable
Build America Bonds issuance totaled $48.5 billion, accounting for almost 20% of
new bonds issued in the municipal market during the period since their
introduction.
Over the twelve months ended October 31, 2009, tax-exempt municipal bond
issuance nationwide totaled $404.5 billion, a drop of approximately 10% compared
with the twelve-month period ended October 31, 2008. As mentioned earlier,
demand for tax-exempt bonds was strong, especially on the part of individual
investors and broker/dealers. The combination of lower tax-exempt supply and
increased demand provided support for municipal bond prices.
WHAT KEY STRATEGIES WERE USED TO MANAGE THESE FUNDS?
During the majority of this twelve-month period, the tax-exempt municipal bond
market was characterized by strong demand, constrained supply and generally
improving valuations. Due largely to the decrease in new tax-exempt supply,
investment activity in these Funds was more limited than usual. While there was
considerable issuance of Build America Bonds over the last half of this period,
these bonds do not represent appropriate investment opportunities for the Funds
because their interest payments are considered taxable income.
4 Nuveen Investments
The already tight supply situation was further compounded for these Funds by the
severe decline in the issuance of insured bonds. During the first ten months of
2009, new insured securities accounted for less than 10% of national issuance,
compared with 20% during the first ten months of 2008 and historical levels of
approximately 50%. The limited liquidity of many insured bonds, which resulted
from concerns about the financial health of municipal bond insurers, also
dampened trading activity.
As noted in prior shareholder reports and press releases, to better position the
Funds for the current environment while maintaining their insured nature, the
Board of Directors/Trustees approved changes to the investment policies of these
six insured Funds. These policy changes also were designed to help increase
portfolio management flexibility. Previously, all of the net assets of NQI, NIO,
NIF and NPX were invested in insured bonds rated AAA, while NVG and NEA have
been able to invest up to 20% of their assets in uninsured investment-grade
quality securities since their inceptions in 2002. The new policies require that
at least 80% of the Funds' net assets must be invested in insured municipal
bonds guaranteed by insurers rated A or better. At the same time, at least 80%
of the Funds' net assets must be invested in municipal bonds rated AA or better
(with or without insurance), deemed to be of comparable quality, or backed by an
escrow or trust containing sufficient U.S. government or government agency
securities. The Funds may also invest up to 20% of their net assets in uninsured
municipal bonds rated A to BBB or deemed to be of comparable quality. As of
October 31, 2009, all proposed policy changes had been approved by each Fund's
shareholders. These changes have helped to bring the Funds' policies more in
line with current market conditions and should facilitate investing going
forward.
During this period, our investment activity continued to focus on finding
relative value by taking a bottom-up approach to discover undervalued sectors
and individual credits with the potential to perform well over the long term.
Generally, we were purchasing bonds in two categories: essential services and,
to a lesser degree, health care. In essential services, we added bonds that
financed water and sewer projects, utilities, schools, and roads, most of which
were rated AA or higher and/or insured. We also purchased bonds in the health
care sector, where supply was more plentiful because hospitals generally do not
qualify for the Build America Bond program and so must continue to issue bonds
in the tax-exempt municipal market. In addition, many hospitals were issuing
fixed rate bonds in order to refinance and retire outstanding debt that had
initially been issued as variable rate debt. Much of this issuance offered the
longer maturities we were looking to add to our portfolio because we believed
that extending duration would be rewarded by the market.
Nuveen Investments 5
Cash for new purchases during this period was generated largely by maturing or
called bonds. In addition, we also sold some pre-refunded holdings in order to
reduce the Funds' exposure to this sector.
All of these Funds continued to use inverse floating rate securities. (1) We
employ inverse floaters as a form of leverage for a variety of reasons,
including duration management, income enhancement and total return enhancements.
During the first part of the period, NVG also invested in additional types of
derivative instruments(2) designed to help extend its duration. These
derivatives were removed by the end of the reporting period.
ASSETS ACQUIRED IN THE REORGANIZATION
As mentioned on page two, on October 16, 2009, following approval by
shareholders, the Nuveen Insured Florida Premium Income Municipal Fund (NFL) was
reorganized into NIO and the Nuveen Insured Florida Tax-Free Advantage Municipal
Fund (NWF) was merged into NEA. In the Reorganizations, NIO and NEA acquired
substantially all of the assets and liabilities of these Funds with which they
were merged in a tax-free transaction in exchange for an equal aggregate value
of newly-issued common shares.
In general, the securities acquired through these Reorganizations matched the
investment parameters and strategies of NIO and NEA and therefore required
little immediate portfolio activity.
HOW DID THE FUNDS PERFORM?
Individual results for these Funds, as well as relevant index and peer group
information, are presented in the accompanying table.
AVERAGE ANNUAL TOTAL RETURNS ON COMMON SHARE NET ASSET VALUE
FOR PERIODS ENDED 10/31/09
1-YEAR 5-YEAR 10-YEAR
----------------------------------------------------------------------------------
NQI 23.65% 2.64% 5.93%
NIO 21.18% 3.10% 6.00%
NIF 20.90% 3.27% 6.01%
NPX 20.15% 2.97% 6.09%
NVG 21.54% 4.18% N/A
NEA 23.05% 4.82% N/A
Standard & Poor's (S&P) Insured Municipal Bond Index(3) 14.43% 3.91% 5.89%
Lipper Insured Municipal Debt Funds Average(4) 24.28% 3.24% 5.98%
----------------------------------------------------------------------------------
For the twelve months ended October 31, 2009, the total returns on common share
net asset value (NAV) for all six of these Nuveen Funds exceeded the returns for
the Standard & Poor's (S&P) Insured Municipal Bond Index. All of the Funds
lagged the Lipper Insured Municipal Debt Funds Average for the same period.
(1) An inverse floating rate security, also known as an inverse floater, is a
financial instrument designed to pay long-term tax-exempt interest at a
rate that varies inversely with a short-term tax-exempt interest rate
index. For the Nuveen Funds, the index typically used is the Securities
Industry and Financial Markets (SIFM) Municipal Swap Index (previously
referred to as the Bond Market Association Index or BMA). Inverse
floaters, including those inverse floating rate securities in which the
Funds invested during this reporting period, are further defined within
the Notes to Financial Statements and Glossary of Terms Used in this
Report sections of this report.
(2) Each Fund may invest in derivative instruments such as forwards, futures,
options and swap transactions. For additional information on the
derivative instruments in which each Fund was invested during and at the
end of the reporting period, see the Portfolio of Investments, Financial
Statements, and Notes to Financial Statements sections of this report.
Past performance is not predictive of future results. Current performance
may be higher or lower than the data shown. Returns do not reflect the
deduction of taxes that shareholders may have to pay on Fund distributions
or upon the sale of Fund shares.
For additional information, see the individual Performance Overview for
your Fund in this report.
(3) The Standard & Poor's (S&P) Insured Municipal Bond Index is an
unleveraged, market value-weighted index designed to measure the
performance of the insured U.S. municipal bond market. This index does not
reflect any initial or ongoing expenses and is not available for direct
investment.
(4) The Lipper Insured Municipal Debt Funds Average is calculated using the
returns of all closed-end funds in this category for each period as
follows: 1-year, 23 funds; 5-year, 21 funds; and 10-year, 16 funds. Fund
and Lipper returns assume reinvestment of dividends. You cannot invest
directly in a Lipper Average.
6 Nuveen Investments
Key management factors that influenced the Funds' returns during this period
included yield curve and duration positioning, credit exposure, and sector
allocation. In addition, leverage was an important positive factor affecting the
Funds' performances over this period. The impact of leverage is discussed in
more detail on page seven.
During this period, yields on tax-exempt bonds generally declined and bond
prices rose, especially at the longer end of the municipal yield curve. As a
result, longer-term bonds generally outperformed credits with shorter
maturities. During this period, the Funds' varying levels of exposure to the
longer part of the yield curve influenced their performances relative to one
another. NQI, which had the longest duration among these Funds, benefited the
most from its duration and yield curve positioning, while NPX, which had more
exposure to the shorter end of the yield curve, was relatively less well
positioned in terms of duration and yield curve.
As mentioned earlier, our duration strategies in NVG included using derivative
positions during the first part of this period to synthetically extend the
duration of this Fund. These derivative positions performed well and made a
positive contribution to NVG's total return performance, while yield curve
positioning played an important role in performance, credit exposure was also a
significant factor. As noted earlier, demand for municipal bonds increased among
both institutional and individual investors during this period. This increase
was driven by a variety of factors, including concerns about potential tax
increases, the need to rebalance portfolio allocations and a growing appetite
for additional risk. At the same time, the supply of new tax-exempt municipal
securities declined. As investors bid up municipal bond prices, lower-rated and
non-rated bonds generally outperformed those rated AAA. In this environment, the
Funds' performances benefited from their allocations of bonds rated A, BBB or
below, and non-rated bonds. As of October 31, 2009, all of the Funds had
exposure to bonds in these ratings categories. In NQI, NIO, NIF and NPX,
exposure to these lower-rated categories was generally the result of rating
downgrades on municipal bond insurers, rather than the result of any buying by
these Funds. NVG and NEA, which have been able to invest up to 20% of their
assets in uninsured investment-grade quality securities since their inceptions
in 2002, held bonds rated BBB and non-rated bonds resulting from purchases as
well as some insurer downgrades.
Holdings that generally contributed positively to the Funds' performance
included industrial development revenue (IDR), housing and health care bonds.
Education, water and sewer, transportation and special tax bonds also
outperformed the general municipal market during this period, and zero coupon
bonds were another segment of the market that performed very strongly.
Nuveen Investments 7
Pre-refunded bonds, which had been one of the top performing segments of the
municipal bond market over the past two years, performed especially poorly
during this period. This underperformance can be attributed primarily to these
bonds' shorter effective maturities and higher credit quality, as they are
usually backed by U.S. Treasury securities.
IMPACT OF THE FUNDS' CAPITAL STRUCTURES AND LEVERAGE STRATEGIES ON PERFORMANCE
One important factor impacting the returns of these Funds relative to the
comparative index was the Funds' use of financial leverage. The Funds use
leverage because their managers believe that, over time, leveraging provides
opportunities for additional income and total returns for common shareholders.
However, use of leverage also can expose common shareholders to additional
risk -- especially when market conditions are unfavorable. For example, as the
prices of securities held by a Fund decline, the negative impact of these
valuation changes on common share net asset value and common shareholder total
return is magnified by the use of leverage. Conversely, leverage may enhance
common share returns during periods when bond prices generally are rising.
Over the early part of this period, leverage hampered the performance of the
Funds using this strategy. However, leverage made a significant positive
contribution to those Funds returns over much of 2009, which can be seen in
their twelve-month performance shown on page six.
RECENT DEVELOPMENTS REGARDING BOND INSURANCE COMPANIES AND FUND POLICY CHANGES
Another factor that had an impact on the performance of these Funds was their
positions in bonds backed by municipal bond insurers that have experienced
downgrades in their credit ratings. At the time this report was prepared, there
were no bond insurers rated AAA by more than one of the major rating agencies
(Moody's Investor Service, Standard & Poor's (S&P) and Fitch) and at least one
rating agency has placed each insurer on "negative credit watch," "credit
outlook/watch developing" "credit outlook/watch negative," "credit watch
evolving," "rating withdrawn" or "regulatory supervision" which may presage one
or more rating reductions for any insurer in the future. By the end of this
period, most insured bonds were being valued according to their fundamentals as
if they were uninsured. On the whole, the holdings of all of these Funds
continued to be well diversified and it is important to note that municipal
bonds historically have had a very low rate of default.
8 Nuveen Investments
RECENT DEVELOPMENTS REGARDING THE FUNDS' LEVERAGED CAPITAL STRUCTURE
As noted in the last several shareholder reports, the auction rate preferred
shares issued by many closed-end funds, including these Nuveen Funds, have been
hampered by a lack of liquidity since February 2008. Since that time, more
auction rate preferred shares have been submitted for sale in their regularly
scheduled auctions than there have been offers to buy. In fact, offers to buy
have been almost completely non-existent since late February 2008. This means
that these auctions have "failed to clear," and that many, or all, of the
auction rate preferred shareholders who wanted to sell their shares in these
auctions were unable to do so. This lack of liquidity in auction rate preferred
shares did not lower the credit quality of these shares, and auction rate
preferred shareholders unable to sell their shares received distributions at the
"maximum rate" applicable to failed auctions, as calculated in accordance with
the pre-established terms of the auction rate preferred shares. In the recent
market, with short-term rates at multi-generational lows, those maximum rates
also have been low.
One continuing implication for common shareholders from the auction failures is
that each Fund's cost of leverage likely has been incrementally higher at times
than it otherwise might have been had the auctions continued to be successful.
As a result, each Fund's common share earnings likely have been incrementally
lower at times than they otherwise might have been.
As noted in past shareholder reports, the Funds' Board of Directors/Trustees
authorized a plan to use tender option bonds (TOBs), also known as floating rate
securities, to refinance a portion of the Funds' outstanding auction rate
preferred shares. The amount of TOBs that a Fund may use varies according to the
composition of each Fund's portfolio. Some Funds have a greater ability to use
TOBs than others. As of October 31, 2009, some Funds have issued Variable Rate
Demand Preferred Shares (VRDP), but these issuances have been limited since it
has been difficult to find liquidity facilities on economically viable terms
given the constrained credit environment. Some Funds also have issued MuniFund
Term Preferred (MTP), a fixed-rate form of preferred stock with a mandatory
redemption period of five years. However, the Funds cannot provide any assurance
on when the remaining outstanding auction rate preferred shares might be
redeemed.
Nuveen Investments 9
As of October 31, 2009, the amount of auction rate preferred securities redeemed
and/or noticed for redemption by the Funds are as shown in the accompanying
table.
AUCTION RATE % OF ORIGINAL
PREFERRED SHARES AUCTION RATE
FUND REDEEMED AND/OR NOTICED FOR REDEMPTION PREFERRED SHARES AND/OR NOTICED FOR REDEMPTION
-------------------------------------------------------------------------------------------------------
NQI $ 72,150,000 22.7%
NIO $ 115,525,000* 14.6%
NIF $ 30,875,000 19.2%
NPX $ 268,900,000 100.0%
NVG $ 141,050,000 60.5%
NEA $ 24,250,000** 14.0%
-------------------------------------------------------------------------------------------------------
* Includes $8,825,000 auction rate preferred shares redeemed by Nuveen
Insured Florida Premium Income Municipal Fund (NFL) prior to the
Reorganization on October 16, 2009.
** Includes $2,250,000 auction rate preferred shares redeemed by Nuveen
Insured Florida Tax-Free Advantage Municipal Fund (NWF) prior to the
Reorganization on October 16, 2009.
As noted in past shareholder reports, all of NPX's redemptions were achieved
through the issuance of Variable Rate Demand Preferred (VRDP) in conjunction
with the proceeds from the creation of TOBs. VRDP is a new instrument designed
to replace the auction rate preferred shares used as leverage in Nuveen
closed-end funds. VRDP is offered only to qualified institutional buyers,
defined pursuant to Rule 144A under the Securities Act of 1933. As of October
31, 2009, NPX has $219 million of VRDP outstanding.
MUNIFUND TERM PREFERRED SHARES (MTP)
During October 2009, NVG successfully completed the issuance of $108 million of
2.95%, Series 2014 MTP. MTP is a new form of closed-end fund preferred shares
designed to partially refinance and replace the auction rate preferred shares
previously issued by the fund as leverage. The net proceeds from this offering
were used to refinance a portion of NVG's outstanding auction rate preferred
shares. The newly-issued MTP shares trade on the New York Stock Exchange (NYSE)
under the symbol "NVG Pr C." MTP is a fixed-rate form of preferred stock with a
mandatory redemption period, in this case, of five years. By issuing MTP, the
Fund seeks to take advantage of the current historically low interest rate
environment to lock in an attractive federally tax-exempt cost of leverage for a
period as long as the term of the MTP. The Fund's managers believe that issuing
MTP may help the Fund mitigate the risk of a significant increase in its cost of
leverage should short-term interest rates rise sharply in the coming years.
As of October 31, 2009, 75 out of the 88 Nuveen closed-end municipal funds that
had issued auction rate preferred shares have redeemed, at par, all or a portion
of these shares. These redemptions bring the total amount of Nuveen's municipal
closed-end funds' auction rate preferred share redemptions to approximately $2.4
billion of the original $11 billion outstanding.
10 Nuveen Investments
Subsequent to the reporting period, NEA filed with the Securities and Exchange
Commission (SEC) a registration statement seeking to register MTP. This
registration statement, declared effective by the SEC, enables the Fund to issue
to the public shares of MTP to refinance all or a portion of NEA's auction rate
preferred shares. The issuance of MTP by NEA is subject to market conditions.
There is no assurance that these MTP shares will be issued.
For up-to-date information, please visit the Nuveen CEF Auction Rate Preferred
Resource Center at:http://www.nuveen.com/ResourceCenter/AuctionRatePreferred.
aspx.
Nuveen Investments 11
Common Share Dividend and Share Price Information
During the twelve-month reporting period ended October 31, 2009, NIF had three
monthly dividend increases and NQI, NIO, NPX, NVG and NEA each had two monthly
dividend increases.
Due to normal portfolio activity, common shareholders of NIO received a net
ordinary income distribution of $0.0010 per share at the end of December 2008.
All of the Funds in this report seek to pay stable dividends at rates that
reflect each Fund's past results and projected future performance. During
certain periods, each Fund may pay dividends at a rate that may be more or less
than the amount of net investment income actually earned by the Fund during the
period. If a Fund has cumulatively earned more than it has paid in dividends, it
holds the excess in reserve as undistributed net investment income (UNII) as
part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in
excess of its earnings, the excess constitutes negative UNII that is likewise
reflected in the Fund's NAV. Each Fund will, over time, pay all of its net
investment income as dividends to shareholders. As of October 31, 2009, all of
the Funds in this report had positive UNII balances for both tax and financial
statement purposes.
COMMON SHARE REPURCHASES AND SHARE PRICE INFORMATION
As of October 31, 2009, the aggregate amount of common shares repurchased by NVG
and NEA are as shown in the accompanying table. Since the inception of the
Funds' repurchase program, NQI, NIO, NIF, and NPX have not repurchased any of
their outstanding common shares.
COMMON SHARES % OF OUTSTANDING
FUND REPURCHASED COMMON SHARES
-------------------------------------------------------------------------------
NVG 10,400 0.0%
NEA 19,300* 0.1%
-------------------------------------------------------------------------------
* Does not include common shares repurchase activity of Nuveen Insured
Florida Tax-Free Advantage Municipal Fund (NWF) prior to Reorganization on
October 16, 2009.
During the twelve-month reporting period, NVG's and NEA's common shares were
repurchased at a weighted average price and a weighted average discount per
common share as shown in the accompanying table.
WEIGHTED AVERAGE WEIGHTED AVERAGE
PRICE PER SHARE DISCOUNT PER SHARE
FUND REPURCHASED REPURCHASED
-------------------------------------------------------------------------------
NVG $ 11.53 16.82%
NEA $ 10.98 18.03%
--------------------------------------------------------------------------------
12 Nuveen Investments
As of October 31, 2009, the Funds' common share prices were trading at (-)
discounts to their common share NAVs as shown in the accompanying table.
10/31/09 TWELVE-MONTH AVERAGE
FUND (-) DISCOUNT (-) DISCOUNT
--------------------------------------------------------------------------------
NQI -2.28% -5.17%
NIO -8.72% -10.01%
NIF -8.90% -9.95%
NPX -8.49% -10.70%
NVG -6.42% -10.23%
NEA -6.52% -9.04%
--------------------------------------------------------------------------------
Nuveen Investments 13
NQI Performance OVERVIEW | Nuveen Insured Quality Municipal Fund, Inc. as of
October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.30
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 13.61
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -2.28%
--------------------------------------------------------------------------------
Market Yield 6.14%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.53%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 521,216
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 16.34
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.67
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/90)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 26.98% 23.65%
--------------------------------------------------------------------------------
5-Year 2.19% 2.64%
--------------------------------------------------------------------------------
10-Year 6.43% 5.93%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 19.1%
--------------------------------------------------------------------------------
Texas 11.1%
--------------------------------------------------------------------------------
Illinois 10.6%
--------------------------------------------------------------------------------
New York 8.8%
--------------------------------------------------------------------------------
Washington 7.7%
--------------------------------------------------------------------------------
Florida 5.5%
--------------------------------------------------------------------------------
Kentucky 4.0%
--------------------------------------------------------------------------------
Ohio 3.0%
--------------------------------------------------------------------------------
Louisiana 2.4%
--------------------------------------------------------------------------------
Arizona 2.3%
--------------------------------------------------------------------------------
Hawaii 2.2%
--------------------------------------------------------------------------------
Colorado 2.1%
--------------------------------------------------------------------------------
Massachusetts 1.8%
--------------------------------------------------------------------------------
Other 19.4%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 20.6%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.6%
--------------------------------------------------------------------------------
Transportation 18.5%
--------------------------------------------------------------------------------
Tax Obligation/General 12.9%
--------------------------------------------------------------------------------
Health Care 9.6%
--------------------------------------------------------------------------------
Utilities 7.4%
--------------------------------------------------------------------------------
Other 12.4%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
NPFG(4) 34.0%
--------------------------------------------------------------------------------
FSA 22.8%
--------------------------------------------------------------------------------
FGIC 20.9%
--------------------------------------------------------------------------------
AMBAC 18.9%
--------------------------------------------------------------------------------
Other 3.4%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 75%
U.S.
Guaranteed* 19%
FHA/GNMA
Guaranteed 6%
* U.S. Guaranteed includes 19% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0615
Dec 0.0615
Jan 0.0615
Feb 0.0615
Mar 0.0615
Apr 0.0615
May 0.0625
Jun 0.0625
Jul 0.0625
Aug 0.0625
Sep 0.068
Oct 0.068
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.05
11.79
10.95
10.13
10.43
9.92
8.78
9.86
9.89
10.37
11.33
11.58
11.4
11.57
12.09
12.04
11.06
11.84
11.44
11.6
11.72
12.1
12.02
11.84
11.93
12.17
12.05
12.08
12.18
12.5
12.53
12.23
12.0299
12.26
12.32
12.46
12.67
12.59
12.8
12.98
12.85
12.55
12.93
12.72
13.1
13.24
13.46
13.54
13.75
13.64
13
13.38
10/31/09 13.3
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments or an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(3) 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.
(4) MBIA's public finance subsidiary.
14 Nuveen Investments
NIO Performance OVERVIEW | Nuveen Insured Municipal Opportunity Fund, Inc. as of
October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 77%
U.S.
Guaranteed* 21%
FHA/FNMA/GNMA
Guaranteed 2%
* U.S. Guaranteed includes 18% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE(4)
[BAR CHART]
Nov $ 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
May 0.0605
Jun 0.0605
Jul 0.0605
Aug 0.0605
Sep 0.0665
Oct 0.0665
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.3
11.32
11.4199
9.46
10.5
9.8999
8.93
10.01
10.51
10.97
11.77
12.01
11.45
11.7
12.03
12
11.24
11.87
11.1
11.64
11.78
11.72
11.78
11.69
11.82
12.09
12.15
12.31
12.4
12.54
12.58
12.4
11.99
12.09
12.3
12.14
12.55
12.42
12.7
12.68
12.69
12.72
12.96
13.22
13.4
13.41
13.55
13.65
13.89
13.64
13
13.22
10/31/09 12.98
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 12.98
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.22
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.72%
--------------------------------------------------------------------------------
Market Yield 6.15%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.54%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 1,358,844
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.04
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.29
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 9/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 23.62% 21.18%
--------------------------------------------------------------------------------
5-Year 1.61% 3.10%
--------------------------------------------------------------------------------
10-Year 6.09% 6.00%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
Florida 17.2%
--------------------------------------------------------------------------------
California 16.7%
--------------------------------------------------------------------------------
Texas 6.9%
--------------------------------------------------------------------------------
New York 4.4%
--------------------------------------------------------------------------------
Colorado 3.8%
--------------------------------------------------------------------------------
Nevada 3.7%
--------------------------------------------------------------------------------
South Carolina 3.5%
--------------------------------------------------------------------------------
Michigan 3.5%
--------------------------------------------------------------------------------
Illinois 3.4%
--------------------------------------------------------------------------------
Alabama 3.3%
--------------------------------------------------------------------------------
Massachusetts 3.1%
--------------------------------------------------------------------------------
Louisiana 2.9%
--------------------------------------------------------------------------------
Washington 2.6%
--------------------------------------------------------------------------------
Ohio 2.4%
--------------------------------------------------------------------------------
Indiana 2.0%
--------------------------------------------------------------------------------
Kentucky 1.9%
--------------------------------------------------------------------------------
Other 18.7%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 24.8%
--------------------------------------------------------------------------------
U.S. Guaranteed 20.9%
--------------------------------------------------------------------------------
Transportation 11.8%
--------------------------------------------------------------------------------
Tax Obligation/General 11.6%
--------------------------------------------------------------------------------
Water and Sewer 10.4%
--------------------------------------------------------------------------------
Utilities 9.0%
--------------------------------------------------------------------------------
Health Care 5.0%
--------------------------------------------------------------------------------
Other 6.5%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
NPFG(5) 31.3%
--------------------------------------------------------------------------------
FGIC 23.6%
--------------------------------------------------------------------------------
FSA 19.4%
--------------------------------------------------------------------------------
AMBAC 17.8%
--------------------------------------------------------------------------------
Other 7.9%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(3) 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.
(4) The Fund paid shareholders a net ordinary income distribution in December
2008 of $0.0010 per share.
(5) MBIA's public finance subsidiary.
Nuveen Investments 15
NIF Performance OVERVIEW | Nuveen Premier Insured Municipal Income Fund, Inc. as
of October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.10
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.38
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.90%
--------------------------------------------------------------------------------
Market Yield 6.05%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.40%
--------------------------------------------------------------------------------
Net Assets Applicable to
Common Shares ($000) $ 279,312
--------------------------------------------------------------------------------
Average Effective Maturity
on Securities (Years) 13.21
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.24
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 12/19/91)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 24.07% 20.90%
--------------------------------------------------------------------------------
5-Year 2.16% 3.27%
--------------------------------------------------------------------------------
10-Year 6.16% 6.01%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 20.2%
--------------------------------------------------------------------------------
Washington 11.2%
--------------------------------------------------------------------------------
Illinois 11.0%
--------------------------------------------------------------------------------
Texas 8.5%
--------------------------------------------------------------------------------
Colorado 6.5%
--------------------------------------------------------------------------------
New York 4.6%
--------------------------------------------------------------------------------
Nevada 2.9%
--------------------------------------------------------------------------------
Oregon 2.7%
--------------------------------------------------------------------------------
Indiana 2.6%
--------------------------------------------------------------------------------
Hawaii 2.5%
--------------------------------------------------------------------------------
Florida 2.4%
--------------------------------------------------------------------------------
Michigan 2.4%
--------------------------------------------------------------------------------
Pennsylvania 2.2%
--------------------------------------------------------------------------------
Georgia 2.2%
--------------------------------------------------------------------------------
Other 18.1%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Tax Obligation/General 24.5%
--------------------------------------------------------------------------------
U.S. Guaranteed 18.9%
--------------------------------------------------------------------------------
Transportation 17.6%
--------------------------------------------------------------------------------
Tax Obligation/Limited 16.2%
--------------------------------------------------------------------------------
Utilities 6.5%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.4%
--------------------------------------------------------------------------------
Water and Sewer 5.3%
--------------------------------------------------------------------------------
Other 5.6%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
FGIC 34.1%
--------------------------------------------------------------------------------
NPFG(4) 30.9%
--------------------------------------------------------------------------------
FSA 19.9%
--------------------------------------------------------------------------------
AMBAC 14.2%
--------------------------------------------------------------------------------
Other 0.9%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 79%
U.S.
Guaranteed* 19%
FHA/GNMA
Guaranteed 2%
* U.S. Guaranteed includes 10% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0555
Dec 0.0555
Jan 0.0555
Feb 0.0555
Mar 0.06
Apr 0.06
May 0.0635
Jun 0.0635
Jul 0.0635
Aug 0.0635
Sep 0.066
Oct 0.066
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.21
11.2
10.98
9.72
10.25
9.96
8.9
10.06
10.54
11.13
12
11.99
11.9
12.28
12.44
12.63
11.38
12.13
11.79
11.83
12.02
12.13
12.4512
12.49
12.41
12.62
12.73
12.81
12.78
12.9
12.76
12.75
12.34
12.56
12.71
12.55
12.96
12.85
13.08
13.18
13.26
13.23
13.37
13.4616
13.51
13.61
13.72
13.79
13.9901
13.71
13.1
13.38
10/31/09 13.1
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(3) 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.
(4) MBIA's public finance subsidiary.
16 Nuveen Investments
NPX Performance OVERVIEW | Nuveen Insured Premium Income Municipal Fund 2 as of
October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 81%
U.S.
Guaranteed* 17%
FHA/GNMA
Guaranteed 1%
AA (Uninsured) 1%
U.S. Guaranteed includes 17% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.0515
Dec 0.0515
Jan 0.0515
Feb 0.0515
Mar 0.0515
Apr 0.0515
May 0.0595
Jun 0.0595
Jul 0.0595
Aug 0.0595
Sep 0.061
Oct 0.061
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 9.68
10.0596
9.71
8.69
9.09
8.27
8.08
8.86
9.15
9.66
10.44
10.44
10.46
10.53
10.95
10.94
10.08
10.61
10.4
10.29
10.44
10.63
10.6206
10.75
10.84
10.99
11.16
11.3
11.39
11.51
11.36
11.42
10.98
11.22
11.34
11.2
11.57
11.41
11.54
11.65
11.83
11.77
11.96
12
12.11
12.25
12.41
12.32
12.54
12.34
11.96
12.05
10/31/09 11.86
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 11.86
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 12.96
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -8.49%
--------------------------------------------------------------------------------
Market Yield 6.17%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.57%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 484,069
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 14.80
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 8.99
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 7/22/93)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 31.78% 20.15%
--------------------------------------------------------------------------------
5-Year 2.11% 2.97%
--------------------------------------------------------------------------------
10-Year 6.32% 6.09%
--------------------------------------------------------------------------------
STATES
(as a % of total investments)
--------------------------------------------------------------------------------
California 14.8%
--------------------------------------------------------------------------------
Texas 12.0%
--------------------------------------------------------------------------------
Pennsylvania 6.9%
--------------------------------------------------------------------------------
Colorado 6.1%
--------------------------------------------------------------------------------
New York 6.1%
--------------------------------------------------------------------------------
Hawaii 5.2%
--------------------------------------------------------------------------------
Washington 4.8%
--------------------------------------------------------------------------------
Wisconsin 4.0%
--------------------------------------------------------------------------------
Louisiana 3.3%
--------------------------------------------------------------------------------
New Jersey 3.0%
--------------------------------------------------------------------------------
Indiana 2.9%
--------------------------------------------------------------------------------
North Dakota 2.5%
--------------------------------------------------------------------------------
Georgia 2.4%
--------------------------------------------------------------------------------
Alabama 2.3%
--------------------------------------------------------------------------------
Oregon 2.1%
--------------------------------------------------------------------------------
Illinois 2.1%
--------------------------------------------------------------------------------
Other 19.5%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a % of total investments)
--------------------------------------------------------------------------------
Utilities 20.7%
--------------------------------------------------------------------------------
U.S. Guaranteed 16.7%
--------------------------------------------------------------------------------
Tax Obligation/Limited 14.8%
--------------------------------------------------------------------------------
Transportation 10.6%
--------------------------------------------------------------------------------
Tax Obligation/General 10.3%
--------------------------------------------------------------------------------
Water and Sewer 9.4%
--------------------------------------------------------------------------------
Education and Civic Organizations 7.6%
--------------------------------------------------------------------------------
Health Care 7.0%
--------------------------------------------------------------------------------
Other 2.9%
--------------------------------------------------------------------------------
INSURERS
(as a % of total Insured investments)
--------------------------------------------------------------------------------
AMBAC 29.9%
--------------------------------------------------------------------------------
NPFG(4) 25.4%
--------------------------------------------------------------------------------
FGIC 21.9%
--------------------------------------------------------------------------------
FSA 19.5%
--------------------------------------------------------------------------------
Other 3.3%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(3) 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.
(4) MBIA's public finance subsidiary.
Nuveen Investments 17
NVG Performance OVERVIEW | Nuveen Insured Dividend Advantage Municipal Fund as
of October 31, 2009
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.85
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.80
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.42%
--------------------------------------------------------------------------------
Market Yield 6.06%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.42%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 441,207
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 12.89
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 10.26
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 3/25/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 28.72% 21.54%
--------------------------------------------------------------------------------
5-Year 4.43% 4.18%
--------------------------------------------------------------------------------
Since Inception 5.08% 6.27%
--------------------------------------------------------------------------------
STATES
(as a% of total municipal bonds)
--------------------------------------------------------------------------------
Texas 15.6%
--------------------------------------------------------------------------------
Washington 10.5%
--------------------------------------------------------------------------------
Indiana 10.5%
--------------------------------------------------------------------------------
California 10.4%
--------------------------------------------------------------------------------
Florida 7.9%
--------------------------------------------------------------------------------
Illinois 7.5%
--------------------------------------------------------------------------------
Tennessee 6.8%
--------------------------------------------------------------------------------
New York 3.9%
--------------------------------------------------------------------------------
Colorado 3.7%
--------------------------------------------------------------------------------
Pennsylvania 3.0%
--------------------------------------------------------------------------------
Alaska 2.6%
--------------------------------------------------------------------------------
Other 17.6%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a% of total investments)
--------------------------------------------------------------------------------
U.S. Guaranteed 24.5%
--------------------------------------------------------------------------------
Tax Obligation/Limited 15.9%
--------------------------------------------------------------------------------
Transportation 15.2%
--------------------------------------------------------------------------------
Tax Obligation/General 12.6%
--------------------------------------------------------------------------------
Utilities 9.1%
--------------------------------------------------------------------------------
Health Care 7.6%
--------------------------------------------------------------------------------
Water and Sewer 6.1%
--------------------------------------------------------------------------------
Other 9.0%
--------------------------------------------------------------------------------
INSURERS
(as a% of total Insured investments)
--------------------------------------------------------------------------------
NPFG(4) 32.8%
--------------------------------------------------------------------------------
FSA 23.6%
--------------------------------------------------------------------------------
AMBAC 21.4%
--------------------------------------------------------------------------------
FGIC 17.2%
--------------------------------------------------------------------------------
Other 5.0%
--------------------------------------------------------------------------------
CREDIT QUALITY (AS A % OF TOTAL MUNICIPAL BONDS)(1,2)
[PIE CHART]
Insured 63%
U.S. Guaranteed* 25%
FHA
Guaranteed 3%
AAA (Uninsured) 3%
AA (Uninsured) 5%
BBB (Uninsured) 1%
* U.S. Guaranteed includes 25% (as a % of total municipal bonds) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.06
Dec 0.06
Jan 0.06
Feb 0.06
Mar 0.06
Apr 0.06
May 0.0645
Jun 0.0645
Jul 0.0645
Aug 0.0645
Sep 0.07
Oct 0.07
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.5
11.62
11.17
9.97
11
9.83
9.45
10.96
10.75
11.6
12.55
12.7
12.13
12.52
12.88
12.63
11.61
12.21
11.72
11.97
12.1
12.4
12.29
12.41
12.395
12.61
12.62
12.84
13.01
13.05
13.07
12.99
12.55
12.89
12.9
12.8
12.98
13.12
13.28
13.42
13.33
13.32
13.59
13.64
13.73
13.95
14.12
14.19
14.39
14.23
13.68
13.89
10/31/09 13.85
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(3) 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.
(4) MBIA's public finance subsidiary.
18 Nuveen Investments
NEA Performance OVERVIEW | Nuveen Insured Tax-Free Advantage Municipal Fund as
of October 31, 2009
CREDIT QUALITY (AS A % OF TOTAL INVESTMENTS)(1,2)
[PIE CHART]
Insured 69%
U.S. Guaranteed* 23%
AAA (Uninsured) 3%
AA (Uninsured) 2%
A (Uninsured) 1%
BBB (Uninsured) 1%
B (Uninsured) 1%
* U.S. Guaranteed includes 19% (as a % of total investments) of Insured
securities.
2008-2009 MONTHLY TAX-FREE DIVIDENDS PER COMMON SHARE
[BAR CHART]
Nov $ 0.059
Dec 0.059
Jan 0.059
Feb 0.059
Mar 0.059
Apr 0.059
May 0.062
Jun 0.062
Jul 0.062
Aug 0.062
Sep 0.065
Oct 0.065
COMMON SHARE PRICE PERFORMANCE -- WEEKLY CLOSING PRICE
[LINE CHART]
11/01/08 $ 11.18
11.6
10.4501
9.94
11.4086
9.57
8.93
10.056
10.4
10.97
12.1
11.76
11.54
11.92
12.37
12.08
11.03
11.84
11.54
11.68
11.58
11.87
12.01
12.2
12.01
12.33
12.56
12.82
12.75
12.66
12.97
12.9
12.42
12.75
12.75
12.73
12.82
12.81
12.79
13.05
13.1
13.04
13.2399
13.3406
13.48
13.57
13.75
14.11
14.45
14.28
13.48
13.5999
10/31/09 13.48
FUND SNAPSHOT
--------------------------------------------------------------------------------
Common Share Price $ 13.48
--------------------------------------------------------------------------------
Common Share Net Asset Value $ 14.42
--------------------------------------------------------------------------------
Premium/(Discount) to NAV -6.52%
--------------------------------------------------------------------------------
Market Yield 5.79%
--------------------------------------------------------------------------------
Taxable-Equivalent Yield(3) 8.04%
--------------------------------------------------------------------------------
Net Assets Applicable to Common Shares ($000) $ 320,587
--------------------------------------------------------------------------------
Average Effective Maturity on Securities (Years) 15.06
--------------------------------------------------------------------------------
Leverage-Adjusted Duration 9.14
--------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
(Inception 11/21/02)
--------------------------------------------------------------------------------
ON SHARE PRICE ON NAV
--------------------------------------------------------------------------------
1-Year 25.41% 23.05%
--------------------------------------------------------------------------------
5-Year 3.46% 4.82%
--------------------------------------------------------------------------------
Since Inception 4.10% 5.63%
--------------------------------------------------------------------------------
STATES
(as a% of total investments)
--------------------------------------------------------------------------------
Florida 15.9%
--------------------------------------------------------------------------------
California 14.7%
--------------------------------------------------------------------------------
Texas 6.9%
--------------------------------------------------------------------------------
New York 6.8%
--------------------------------------------------------------------------------
Michigan 6.7%
--------------------------------------------------------------------------------
Washington 6.4%
--------------------------------------------------------------------------------
Pennsylvania 5.0%
--------------------------------------------------------------------------------
Indiana 4.9%
--------------------------------------------------------------------------------
Alabama 4.9%
--------------------------------------------------------------------------------
South Carolina 3.8%
--------------------------------------------------------------------------------
Wisconsin 3.7%
--------------------------------------------------------------------------------
Colorado 3.3%
--------------------------------------------------------------------------------
Other 17.0%
--------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
(as a% of total investments)
--------------------------------------------------------------------------------
Tax Obligation/Limited 26.9%
--------------------------------------------------------------------------------
U.S. Guaranteed 23.4%
--------------------------------------------------------------------------------
Tax Obligation/General 11.9%
--------------------------------------------------------------------------------
Water and Sewer 8.7%
--------------------------------------------------------------------------------
Health Care 8.2%
--------------------------------------------------------------------------------
Utilities 8.1%
--------------------------------------------------------------------------------
Transportation 7.2%
--------------------------------------------------------------------------------
Education and Civic Organizations 5.0%
--------------------------------------------------------------------------------
Other 0.6%
--------------------------------------------------------------------------------
INSURERS
(as a% of total Insured investments)
--------------------------------------------------------------------------------
NPFG(4) 32.7%
--------------------------------------------------------------------------------
AMBAC 29.8%
--------------------------------------------------------------------------------
FSA 15.7%
--------------------------------------------------------------------------------
FGIC 11.8%
--------------------------------------------------------------------------------
SYNCORA GTY 5.2%
--------------------------------------------------------------------------------
Other 4.8%
--------------------------------------------------------------------------------
(1) The percentages shown in the foregoing chart may reflect the ratings on
certain bonds whose insurer has experienced downgrades as of the end of
the reporting period. Please see the Portfolio Manager's Comments for an
expanded discussion of the affect on the Fund of changes to the ratings of
certain bonds in the portfolio resulting from changes to the ratings of
the underlying insurers both during the period and after period end.
(2) At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(3) 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.
(4) MBIA's public finance subsidiary.
Nuveen Investments 19
NQI | Shareholder Meeting Report
A special meeting of shareholders for NIO and NEA was held in the offices of
Nuveen Investments on May 15, 2009; at this meeting the shareholders were asked
to vote to approve an Agreement and Plan of Reorganization. The meeting was
subsequently adjourned to June 17, 2009, and additionally adjourned to July 24,
2009 and to July 31, 2009.
The annual meeting of shareholders was held on July 28, 2009, in the Lobby
Conference Room, 333 West Wacker Drive, Chicago, IL 60606; at this meeting the
shareholders were asked to vote on the election of Board Members, the
elimination of Fundamental Investment Policies and the approval of new
Fundamental Investment Policies. The meeting for NQI, NIO, NIF, NPX and NVG was
subsequently adjourned to September 1, 2009, and then adjourned to October 13,
2009, for NQI, NIO, NPX and NVG.
NQI
--------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICIES RELATING TO DERIVATIVES
AND SHORT SALES.
For 18,504,664 4,389
Against 1,587,299 669
Abstain 717,345 21
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO INVESTING IN OTHER
INVESTMENT COMPANIES.
For 18,749,972 4,339
Against 1,355,621 719
Abstain 703,715 21
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 18,619,101 4,323
Against 1,484,499 732
Abstain 705,708 24
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY FOR THE
FUND RELATING TO COMMODITIES.
For 18,601,314 4,384
Against 1,436,796 671
Abstain 771,198 24
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO TAX-EXEMPT SECURITIES.
For 18,567,910 4,390
Against 1,468,041 665
Abstain 773,357 24
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING
TO TAX-EXEMPT SECURITIES.
For 18,591,481 4,390
Against 1,443,558 665
Abstain 774,269 24
Broker Non-Votes 5,777,701 515
--------------------------------------------------------------------------------
Total 26,587,009 5,594
================================================================================
20 Nuveen Investments
NQI
--------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS
FOLLOWS:
John P. Amboian
For 25,185,665 --
Withhold 1,242,458 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
Robert P. Bremner
For 25,143,885 --
Withhold 1,284,238 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
Jack B. Evans
For 25,172,939 --
Withhold 1,255,184 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
William C. Hunter
For -- 5,137
Withhold -- 449
--------------------------------------------------------------------------------
Total -- 5,586
================================================================================
David J. Kundert
For 25,141,288 --
Withhold 1,286,835 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
William J. Schneider
For -- 5,149
Withhold -- 437
--------------------------------------------------------------------------------
Total -- 5,586
================================================================================
Judith M. Stockdale
For 25,141,982 --
Withhold 1,286,141 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
Carole E. Stone
For 25,156,371 --
Withhold 1,271,752 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
Terence J. Toth
For 25,148,034 --
Withhold 1,280,089 --
--------------------------------------------------------------------------------
Total 26,428,123 --
================================================================================
Nuveen Investments 21
NIO | Shareholder Meeting Report (continued)
NIO
--------------------------------------------------------------------------------------------------------------
MuniPreferred
shares voting Muni- Muni- Muni-
Common together Preferred - Preferred - Preferred -
shares as a class Series M Series T Series W
--------------------------------------------------------------------------------------------------------------
TO APPROVE AN AGREEMENT AND PLAN
OF REORGANIZATION (THE
"AGREEMENT"), PURSUANT TO WHICH
NUVEEN INSURED FLORIDA PREMIUM
INCOME MUNICIPAL FUND (THE
"ACQUIRED FUND") WOULD (I)
TRANSFER ALL OF ITS ASSETS TO
NUVEEN INSURED MUNICIPAL
OPPORTUNITY FUND, INC. (THE
"ACQUIRING FUND") IN EXCHANGE
SOLELY FOR SHARES OF COMMON
STOCK AND SHARES OF MUNICIPAL
AUCTION RATE CUMULATIVE
PREFERRED STOCK
("MUNIPREFERRED"), SERIES W3 AND
SERIES TH3, OF THE ACQUIRING
FUND AND THE ACQUIRING FUND'S
ASSUMPTION OF ALL THE
LIABILITIES OF THE ACQUIRED
FUND, (II) DISTRIBUTE SUCH
SHARES OF THE ACQUIRING FUND TO
THE COMMON SHAREHOLDERS AND
MUNIPREFERRED, SERIES W AND
SERIES TH, SHAREHOLDERS OF THE
ACQUIRED FUND AND (III) BE
LIQUIDATED, DISSOLVED AND
TERMINATED IN ACCORDANCE WITH
THE ACQUIRED FUND'S DECLARATION
OF TRUST (THE "REORGANIZATION").
For 22,649 3,478 3,451 3,336
Against 856 47 33 82
Abstain 502 5 45 113
--------------------------------------------------------------------------------------------------------------
Total 24,007 3,530 3,529 3,531
==============================================================================================================
TO APPROVE THE ISSUANCE OF
ADDITIONAL COMMON SHARES OF
NUVEEN INSURED MUNICIPAL
OPPORTUNITY FUND, INC. IN
CONNECTION WITH THE
REORGANIZATION.
For 41,906,660
Against 4,455,033
Abstain 1,788,836
--------------------------------------------------------------------------------------------------------------
Total 48,150,529
==============================================================================================================
NIO
--------------------------------------------------------------------------------------------------------------
Muni- Muni- Muni- Muni-
Preferred - Preferred - Preferred - Preferred -
Series W2 Series TH Series TH-2 Series F
--------------------------------------------------------------------------------------------------------------
TO APPROVE AN AGREEMENT AND PLAN
OF REORGANIZATION (THE
"AGREEMENT"), PURSUANT TO WHICH
NUVEEN INSURED FLORIDA PREMIUM
INCOME MUNICIPAL FUND (THE
"ACQUIRED FUND") WOULD (I)
TRANSFER ALL OF ITS ASSETS TO
NUVEEN INSURED MUNICIPAL
OPPORTUNITY FUND, INC. (THE
"ACQUIRING FUND") IN EXCHANGE
SOLELY FOR SHARES OF COMMON
STOCK AND SHARES OF MUNICIPAL
AUCTION RATE CUMULATIVE
PREFERRED STOCK
("MUNIPREFERRED"), SERIES W3 AND
SERIES TH3, OF THE ACQUIRING
FUND AND THE ACQUIRING FUND'S
ASSUMPTION OF ALL THE
LIABILITIES OF THE ACQUIRED
FUND, (II) DISTRIBUTE SUCH
SHARES OF THE ACQUIRING FUND TO
THE COMMON SHAREHOLDERS AND
MUNIPREFERRED, SERIES W AND
SERIES TH, SHAREHOLDERS OF THE
ACQUIRED FUND AND (III) BE
LIQUIDATED, DISSOLVED AND
TERMINATED IN ACCORDANCE WITH
THE ACQUIRED FUND'S DECLARATION
OF TRUST (THE "REORGANIZATION").
For 2,705 3,186 3,204 3,289
Against 62 344 66 222
Abstain 58 -- 262 19
--------------------------------------------------------------------------------------------------------------
Total 2,825 3,530 3,532 3,530
==============================================================================================================
TO APPROVE THE ISSUANCE OF
ADDITIONAL COMMON SHARES OF
NUVEEN INSURED MUNICIPAL
OPPORTUNITY FUND, INC. IN
CONNECTION WITH THE
REORGANIZATION.
For
Against
Abstain
--------------------------------------------------------------------------------------------------------------
Total
==============================================================================================================
22 Nuveen Investments
NIO
--------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE FUND'S
FUNDAMENTAL POLICIES RELATING TO DERIVATIVES
AND SHORT SALES.
For 38,209,748 11,506
Against 3,678,279 1,516
Abstain 1,805,948 352
Broker Non-Votes 10,323,145 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO INVESTING IN OTHER
INVESTMENT COMPANIES.
For 38,499,569 11,508
Against 3,448,741 1,519
Abstain 1,745,666 347
Broker Non-Votes 10,323,144 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO COMMODITIES.
For 38,444,421 11,501
Against 3,509,817 1,518
Abstain 1,739,737 355
Broker Non-Votes 10,323,145 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY FOR THE
FUND RELATING TO COMMODITIES.
For 38,445,415 11,501
Against 3,437,729 1,518
Abstain 1,810,832 355
Broker Non-Votes 10,323,144 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
TO APPROVE THE ELIMINATION OF THE FUNDAMENTAL
POLICY RELATING TO TAX-EXEMPT SECURITIES.
For 38,344,729 11,525
Against 3,544,491 1,497
Abstain 1,804,756 352
Broker Non-Votes 10,323,144 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
TO APPROVE THE NEW FUNDAMENTAL POLICY RELATING TO
TAX-EXEMPT SECURITIES.
For 38,560,166 11,543
Against 3,309,092 1,479
Abstain 1,824,718 352
Broker Non-Votes 10,323,144 2,377
--------------------------------------------------------------------------------
Total 54,017,120 15,751
================================================================================
Nuveen Investments 23
NIO | Shareholder Meeting Report (continued)
NIO
--------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED
AS FOLLOWS:
John P. Amboian
For 50,601,245 --
Withhold 3,044,190 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
Robert P. Bremner
For 50,577,460 --
Withhold 3,067,975 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
Jack B. Evans
For 50,584,642 --
Withhold 3,060,793 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
William C. Hunter
For -- 14,100
Withhold -- 1,580
--------------------------------------------------------------------------------
Total -- 15,680
================================================================================
David J. Kundert
For 50,594,367 --
Withhold 3,051,068 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
William J. Schneider
For -- 14,108
Withhold -- 1,572
--------------------------------------------------------------------------------
Total -- 15,680
================================================================================
Judith M. Stockdale
For 50,589,662 --
Withhold 3,055,773 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
Carole E. Stone
For 50,604,694 --
Withhold 3,040,741 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
Terence J. Toth
For 50,602,844 --
Withhold 3,042,591 --
--------------------------------------------------------------------------------
Total 53,645,435 --
================================================================================
24 Nuveen Investments
NIF |
NPX |
NVG |
NIF NPX NVG
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
TO APPROVE THE ELIMINATION OF THE
FUND'S FUNDAMENTAL POLICIES RELATING
TO DERIVATIVES AND SHORT SALES.
For 9,247,663 3,206 19,634,602 2,090 -- --
Against 844,588 381 2,225,144 -- -- --
Abstain 371,081 35 784,269 -- -- --
Broker Non-Votes 2,686,946 72 4,816,699 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 3,694 27,460,714 2,090 -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
INVESTING IN OTHER INVESTMENT
COMPANIES.
For 9,289,658 3,174 19,813,426 2,090 -- --
Against 792,435 414 2,079,895 -- -- --
Abstain 381,239 34 746,514 -- -- --
Broker Non-Votes 2,686,946 72 4,820,879 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 3,694 27,460,714 2,090 -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
COMMODITIES.
For 8,896,338 3,209 19,057,451 2,090 -- --
Against 1,187,140 378 2,787,725 -- -- --
Abstain 379,854 35 794,659 -- -- --
Broker Non-Votes 2,686,946 72 4,820,879 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 3,694 27,460,714 2,090 -- --
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY FOR THE FUND RELATING TO
COMMODITIES.
For 8,893,904 3,210 19,031,692 2,090 -- --
Against 1,177,200 378 2,796,236 -- -- --
Abstain 392,228 34 811,907 -- -- --
Broker Non-Votes 2,686,946 72 4,820,879 -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 3,694 27,460,714 2,090 -- --
====================================================================================================================================
TO APPROVE THE ELIMINATION OF THE
FUNDAMENTAL POLICY RELATING TO
TAX-EXEMPT SECURITIES.
For -- -- -- -- 14,144,101 5,177
Against -- -- -- -- 1,387,428 292
Abstain -- -- -- -- 743,289 164
Broker Non-Votes -- -- -- -- 3,923,765 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- 20,198,583 5,633
====================================================================================================================================
TO APPROVE THE NEW FUNDAMENTAL
POLICY RELATING TO TAX-EXEMPT
SECURITIES.
For -- -- -- -- 14,184,633 5,191
Against -- -- -- -- 1,360,591 282
Abstain -- -- -- -- 729,594 160
Broker Non-Votes -- -- -- -- 3,923,765 --
------------------------------------------------------------------------------------------------------------------------------------
Total -- -- -- -- 20,198,583 5,633
====================================================================================================================================
Nuveen Investments 25
NIF | Shareholder Meeting Report (continued)
NPX |
NVG |
NIF NPX NVG
------------------------------------------------------------------------------------------------------------------------------------
Common and Common and Common and
MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred MuniPreferred
shares voting shares voting shares voting shares voting shares voting shares voting
together together together together together together
as a class as a class as a class as a class as a class as a class
------------------------------------------------------------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS
REACHED AS FOLLOWS:
John P. Amboian
For 12,591,988 -- -- -- -- --
Withhold 558,290 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- -- -- -- --
====================================================================================================================================
Robert P. Bremner
For 12,574,430 -- 24,777,356 -- 18,685,610 --
Withhold 575,848 -- 1,194,939 -- 1,365,899 --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- 25,972,295 -- 20,051,509 --
====================================================================================================================================
Jack B. Evans
For 12,585,974 -- 24,773,070 -- 18,702,305 --
Withhold 564,304 -- 1,199,225 -- 1,349,204 --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- 25,972,295 -- 20,051,509 --
====================================================================================================================================
William C. Hunter
For -- 3,378 -- 2,090 -- 5,373
Withhold -- 316 -- -- -- 260
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,694 -- 2,090 -- 5,633
====================================================================================================================================
David J. Kundert
For 12,572,423 -- -- -- -- --
Withhold 577,855 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- -- -- -- --
====================================================================================================================================
William J. Schneider
For -- 3,378 -- 2,090 -- 5,373
Withhold -- 316 -- -- -- 260
------------------------------------------------------------------------------------------------------------------------------------
Total -- 3,694 -- 2,090 -- 5,633
====================================================================================================================================
Judith M. Stockdale
For 12,581,120 -- -- -- -- --
Withhold 569,158 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- -- -- -- --
====================================================================================================================================
Carole E. Stone
For 12,572,682 -- -- -- -- --
Withhold 577,596 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- -- -- -- --
====================================================================================================================================
Terence J. Toth
For 12,584,582 -- -- -- -- --
Withhold 565,696 -- -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 13,150,278 -- -- -- -- --
====================================================================================================================================
26 Nuveen Investments
NEA |
NEA
---------------------------------------------------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together MuniPreferred - MuniPreferred -
as a class Common shares as a class Series T Series W
---------------------------------------------------------------------------------------------------------------------------
TO APPROVE AN AGREEMENT AND PLAN OF
REORGANIZATION (THE "AGREEMENT"),
PURSUANT TO WHICH NUVEEN INSURED
FLORIDA TAX-FREE ADVANTAGE MUNICIPAL
FUND (THE "ACQUIRED FUND") WOULD (I)
TRANSFER ALL OF ITS ASSETS TO NUVEEN
INSURED TAX-FREE ADVANTAGE MUNICIPAL
FUND (THE "ACQUIRING FUND") IN
EXCHANGE SOLELY FOR COMMON SHARES
AND MUNICIPAL AUCTION RATE
CUMULATIVE PREFERRED SHARES
("MUNIPREFERRED"), SERIES W2, OF THE
ACQUIRING FUND AND THE ACQUIRING
FUND'S ASSUMPTION OF ALL THE
LIABILITIES OF THE ACQUIRED FUND,
(II) DISTRIBUTE SUCH SHARES OF THE
ACQUIRING FUND TO THE COMMON
SHAREHOLDERS AND MUNIPREFERRED,
SERIES W, SHAREHOLDERS OF THE
ACQUIRED FUND AND (III) BE
LIQUIDATED, DISSOLVED AND TERMINATED
IN ACCORDANCE WITH THE ACQUIRED
FUND'S DECLARATION OF TRUST (THE
"REORGANIZATION").
For 9,569,489 9,564,604 4,885 2,493 2,392
Against 749,211 748,889 322 72 250
Abstain 429,651 429,546 105 91 14
---------------------------------------------------------------------------------------------------------------------------
Total 10,748,351 10,743,039 5,312 2,656 2,656
===========================================================================================================================
TO APPROVE THE ISSUANCE OF
ADDITIONAL COMMON SHARES OF NUVEEN
INSURED TAX-FREE ADVANTAGE MUNICIPAL
FUND IN CONNECTION WITH THE
REORGANIZATION.
For 9,520,781
Against 849,093
Abstain 373,165
---------------------------------------------------------------------------------------------------------------------------
Total 10,743,039
===========================================================================================================================
Nuveen Investments 27
NEA | Shareholder Meeting Report (continued)
NEA
--------------------------------------------------------------------------------
Common and
MuniPreferred MuniPreferred
shares voting shares voting
together together
as a class as a class
--------------------------------------------------------------------------------
APPROVAL OF THE BOARD MEMBERS WAS REACHED AS
FOLLOWS:
John P. Amboian
For -- --
Withhold -- --
--------------------------------------------------------------------------------
Total -- --
================================================================================
Robert P. Bremner
For 16,114,004 --
Withhold 697,141 --
--------------------------------------------------------------------------------
Total 16,811,145 --
================================================================================
Jack B. Evans
For 16,118,969 --
Withhold 692,176 --
--------------------------------------------------------------------------------
Total 16,811,145 --
================================================================================
William C. Hunter
For -- 2,849
Withhold -- 348
--------------------------------------------------------------------------------
Total -- 3,197
================================================================================
David J. Kundert
For -- --
Withhold -- --
--------------------------------------------------------------------------------
Total -- --
================================================================================
William J. Schneider
For -- 2,849
Withhold -- 348
--------------------------------------------------------------------------------
Total -- 3,197
================================================================================
Judith M. Stockdale
For -- --
Withhold -- --
--------------------------------------------------------------------------------
Total -- --
================================================================================
Carole E. Stone
For -- --
Withhold -- --
--------------------------------------------------------------------------------
Total -- --
================================================================================
Terence J. Toth
For -- --
Withhold -- --
--------------------------------------------------------------------------------
Total -- --
================================================================================
28 Nuveen Investments
Report of Independent Registered Public Accounting Firm
THE BOARD OF DIRECTORS/TRUSTEES AND SHAREHOLDERS
NUVEEN INSURED QUALITY MUNICIPAL FUND, INC.
NUVEEN INSURED MUNICIPAL OPPORTUNITY FUND, INC.
NUVEEN PREMIER INSURED MUNICIPAL INCOME FUND, INC.
NUVEEN INSURED PREMIUM INCOME MUNICIPAL FUND 2
NUVEEN INSURED DIVIDEND ADVANTAGE MUNICIPAL FUND
NUVEEN INSURED TAX-FREE ADVANTAGE MUNICIPAL FUND
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Nuveen Insured Quality Municipal Fund, Inc.,
Nuveen Insured Municipal Opportunity Fund, Inc., Nuveen Premier Insured
Municipal Income Fund, Inc., Nuveen Insured Premium Income Municipal Fund 2,
Nuveen Insured Dividend Advantage Municipal Fund, and Nuveen Insured Tax-Free
Advantage Municipal Fund (the "Funds") as of October 31, 2009, and the related
statements of operations and cash flows (Nuveen Insured Quality Municipal Fund,
Inc., Nuveen Insured Premium Income Municipal Fund 2 and Nuveen Insured Premium
Income Municipal Fund 2 only) for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended. 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, 2009, by correspondence with the custodian
and brokers or by other appropriate auditing procedures where replies from
brokers were not received. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Nuveen Insured Quality Municipal Fund, Inc., Nuveen Insured Municipal
Opportunity Fund, Inc., Nuveen Premier Insured Municipal Income Fund, Inc.,
Nuveen Insured Premium Income Municipal Fund 2, Nuveen Insured Dividend
Advantage Municipal Fund, and Nuveen Insured Tax-Free Advantage Municipal Fund
at October 31, 2009, the results of their operations and cash flows (Nuveen
Insured Quality Municipal Fund, Inc., Nuveen Insured Premium Income Municipal
Fund 2 and Nuveen Insured Premium Income Municipal Fund 2 only) for the year
then ended, changes in their net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended in conformity with US generally accepted accounting
principles.
Ernst & young LLP
Chicago, Illinois
December 28, 2009
Nuveen Investments 29
NQI | Nuveen Insured Quality Municipal Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 1.6% (1.0% OF TOTAL INVESTMENTS)
$ 1,135 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/13 at 100.00 AAA $ 1,270,542
Sewerage Revenue Bonds, Series 2002B, 5.250%, 1/01/20
(Pre-refunded 1/01/13) - NPFG Insured
7,000 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 A2 7,016,590
Series 2005A, 5.000%, 6/01/24 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
8,135 Total Alabama 8,287,132
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.6% (2.3% OF TOTAL INVESTMENTS)
2,750 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 2,095,445
Longs, Series 11033, 13.893%, 7/01/31 - FSA Insured (IF)
9,200 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 9,163,016
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
8,755 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 7,283,547
Plaza, Series 2005B, 0.000%, 7/01/39 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
20,705 Total Arizona 18,542,008
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,250 University of Arkansas, Fayetteville, Revenue Bonds, Medical 11/14 at 100.00 Aa3 2,350,373
Sciences Campus, Series 2004B, 5.000%, 11/01/24 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 29.9% (19.1% OF TOTAL INVESTMENTS)
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
4,010 5.000%, 12/01/24 - NPFG Insured (UB) 12/14 at 100.00 AAA 4,248,956
3,965 5.000%, 12/01/26 - MBIA Insured (UB) 12/14 at 100.00 AAA 4,182,123
12,925 California Pollution Control Financing Authority, Revenue 3/10 at 101.00 A1 12,937,408
Refunding Bonds, Southern California Edison Company,
Series 1999A, 5.450%, 9/01/29 - NPFG Insured
13,445 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 A 13,305,710
5.000%, 4/01/27 - AMBAC Insured
7,055 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 AAA 7,730,516
5.000%, 4/01/27 (Pre-refunded 4/01/12) - AMBAC Insured
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 4,778
5.000%, 4/01/31 - AMBAC Insured
3,745 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 4,266,416
5.000%, 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
8,000 California, General Obligation Bonds, Series 2002, 5.000%, 10/12 at 100.00 A 7,571,760
10/01/32 - NPFG Insured
2,340 Cerritos Public Financing Authority, California, Tax 11/17 at 102.00 A- 2,272,678
Allocation Revenue Bonds, Los Cerritos Redevelopment
Projects, Series 2002A, 5.000%, 11/01/24 - AMBAC Insured
5,000 Clovis Unified School District, Fresno County, California, No Opt. Call AA (4) 2,518,900
General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 -
FGIC Insured (ETM)
Foothill/Eastern Transportation Corridor Agency, California,
Toll Road Revenue Refunding Bonds, Series 1999:
22,985 0.000%, 1/15/24 - NPFG Insured 1/10 at 44.52 A 8,949,669
22,000 0.000%, 1/15/31 - NPFG Insured 1/10 at 29.12 A 5,327,300
50,000 0.000%, 1/15/37 - NPFG Insured 1/10 at 20.19 A 8,106,000
5,000 Garden Grove, California, Certificates of Participation, 3/12 at 101.00 A 4,970,050
Financing Project, Series 2002A, 5.125%, 3/01/32 - AMBAC
Insured
8,500 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 7,557,265
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/35 - FGIC Insured
5,795 Kern Community College District, California, General No Opt. Call AAA 2,257,037
Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA
Insured
5,308 Moreno Valley Public Finance Authority, California, GNMA 1/12 at 105.00 Aaa 5,764,170
Collateralized Assisted Living Housing Revenue Bonds, CDC
Assisted Living Project, Series 2000A, 7.500%, 1/20/42
4,940 Ontario Redevelopment Financing Authority, San Bernardino 1/10 at 100.00 A (4) 5,194,262
County, California, Revenue Bonds, Redevelopment Project
1, Series 1993, 5.850%, 8/01/22 - NPFG Insured (ETM)
30 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 2,590 Riverside County Public Financing Authority, California, Tax 10/14 at 100.00 BBB $ 2,419,811
Allocation Bonds, Multiple Projects, Series 2004, 5.000%,
10/01/25 - SYNCORA GTY Insured
2,000 San Diego Redevelopment Agency, California, Subordinate Lien 9/14 at 100.00 A3 2,006,080
Tax Allocation Bonds, Centre City Project, Series 2004A,
5.000%, 9/01/21 - SYNCORA GTY 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 - NPFG Insured (Alternative Minimum Tax) 5/11 at 100.00 A1 7,188,840
12,690 5.250%, 5/01/31 - NPFG Insured (Alternative Minimum Tax) 5/11 at 100.00 A1 12,308,285
San Francisco Bay Area Rapid Transit District, California,
Sales Tax Revenue Bonds, Series 2005A:
2,000 5.000%, 7/01/21 - NPFG Insured 7/15 at 100.00 AA+ 2,099,420
3,655 5.000%, 7/01/22 - NPFG Insured 7/15 at 100.00 AA+ 3,823,459
3,840 5.000%, 7/01/23 - NPFG Insured 7/15 at 100.00 AA+ 4,019,981
8,965 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 7,132,464
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - NPFG Insured
3,500 Saugus Union School District, Los Angeles County, California, No Opt. Call A+ 1,606,080
General Obligation Bonds, Series 2006, 0.000%, 8/01/23 -
FGIC Insured
1,000 Sierra Joint Community College District, Tahoe Truckee, 8/14 at 100.00 A+ 1,007,490
California, General Obligation Bonds, School Facilities
Improvement District 1, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
1,525 Sierra Joint Community College District, Western Nevada, 8/14 at 100.00 A+ 1,536,422
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2005A, 5.000%, 8/01/27 -
FGIC Insured
3,170 Ventura County Community College District, California, 8/15 at 100.00 AA 3,281,838
General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
237,153 Total California 155,595,168
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 3.2% (2.1% OF TOTAL INVESTMENTS)
2,015 Board of Trustees of the University of Northern Colorado, 6/15 at 100.00 AAA 2,110,088
Revenue Bonds, Series 2005, 5.000%, 6/01/22 - FSA Insured
1,000 Denver City and County, Colorado, Airport Revenue Bonds, 11/16 at 100.00 AA- 1,025,020
Series 2006, 5.000%, 11/15/24 - FGIC Insured
5,365 Denver, Colorado, Airport Revenue Refunding Bonds, Series 11/16 at 100.00 A+ 5,531,798
2006A, 5.000%, 11/15/23 - FGIC Insured (UB)
1,085 Denver, Colorado, Airport Revenue Bonds, Trust 2365, 13.595%, 11/16 at 100.00 A+ 1,172,646
11/15/25 - FGIC Insured (IF)
9,780 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,073,067
Bonds, Series 2000B, 0.000%, 9/01/32 - NPFG Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 3,102,900
Series 2004A, 0.000%, 9/01/27 - NPFG Insured
1,250 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 1,304,400
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA
Insured (UB)
500 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 513,450
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
30,995 Total Colorado 16,833,369
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
1,335 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 1,239,401
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
3,920 Washington District of Columbia Convention Center Authority, 10/16 at 100.00 AAA 3,355,598
Dedicated Tax Revenue Bonds, Residual Series 1730,1731,
1736, 11.534%, 10/01/36 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
5,255 Total District of Columbia 4,594,999
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 8.6% (5.5% OF TOTAL INVESTMENTS)
3,450 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 3,569,853
Series 2005, 5.000%, 10/01/24 - NPFG Insured
2,750 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 2,916,403
Public Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
Nuveen Investments 31
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,550 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA $ 2,935,152
Outlay Bonds, Series 2008, Trust 2929, 17.020%, 6/01/38 -
AGC Insured (IF)
20,000 Lee County, Florida, Airport Revenue Bonds, Series 2000A, 10/10 at 101.00 AAA 20,208,400
5.750%, 10/01/25 - FSA Insured (Alternative Minimum Tax)
4,115 Miami-Dade County Housing Finance Authority, Florida, 7/11 at 100.00 AAA 4,149,689
Multifamily Housing Revenue Bonds, Monterey Pointe
Apartments, Series 2001-2A, 5.850%, 7/01/37 - FSA Insured
(Alternative Minimum Tax)
7,000 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 A 6,940,430
International Airport, Series 2002, 5.375%, 10/01/32 -
FGIC Insured (Alternative Minimum Tax)
3,730 Palm Beach County School Board, Florida, Certificates of 8/13 at 100.00 AA- 3,921,498
Participation, Series 2003A, 5.000%, 8/01/16 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
43,595 Total Florida 44,641,425
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620
2004, 5.000%, 11/01/22 - FSA Insured
7,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 7,089,180
2009B, 5.375%, 11/01/39 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
8,000 Total Georgia 8,111,800
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.4% (2.2% OF TOTAL INVESTMENTS)
1,620 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 1,742,099
2003A, 5.000%, 7/15/21 - FSA Insured
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
8,785 6.625%, 7/01/18 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 8,973,263
7,000 6.000%, 7/01/19 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 7,114,730
------------------------------------------------------------------------------------------------------------------------------------
17,405 Total Hawaii 17,830,092
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.5% (10.6% OF TOTAL INVESTMENTS)
9,500 Chicago, Illinois, Second Lien General Airport Revenue 1/10 at 101.00 AA- 9,627,775
Refunding Bonds, O'Hare International Airport, Series
1999, 5.500%, 1/01/15 - AMBAC Insured (Alternative Minimum
Tax)
1,775 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,855,638
O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - NPFG Insured
25,000 Illinois Health Facilities Authority, Revenue Bonds, Iowa 2/10 at 101.00 Aa3 (4) 25,621,000
Health System, Series 2000, 5.875%, 2/15/30 - AMBAC
Insured (ETM)
13,275 Illinois, General Obligation Bonds, Illinois FIRST Program, 5/11 at 100.00 AAA 13,612,185
Series 2001, 5.250%, 5/01/26 - FSA Insured
15,785 Illinois, General Obligation Bonds, Illinois FIRST Program, 4/12 at 100.00 AAA 16,408,823
Series 2002, 5.250%, 4/01/27 - FSA Insured
18,000 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 8,195,580
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 12/15/24 - NPFG Insured
10,000 University of Illinois, Certificates of Participation, 8/11 at 100.00 AA- (4) 10,745,400
Utility Infrastructure Projects, Series 2001B, 5.250%,
8/15/21 (Pre-refunded 8/15/11) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
93,335 Total Illinois 86,066,401
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 2.3% (1.5% OF TOTAL INVESTMENTS)
3,680 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,656,411
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
7,380 Indiana Transportation Finance Authority, Highway Revenue No Opt. Call AA+ 8,510,690
Bonds, Series 1990A, 7.250%, 6/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,060 Total Indiana 12,167,101
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 Wichita, Kansas, Water and Sewerage Utility Revenue Bonds, 10/13 at 100.00 A1 2,053,560
Series 2003, 5.000%, 10/01/21 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
32 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 6.2% (4.0% OF TOTAL INVESTMENTS)
$ 3,015 Kentucky Asset/Liability Commission, General Fund Revenue 5/15 at 100.00 Aa3 $ 3,111,480
Project Notes, First Series 2005, 5.000%, 5/01/25 - NPFG
Insured
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
2,530 6.150%, 10/01/27 - NPFG Insured 10/13 at 101.00 A 2,604,281
12,060 6.150%, 10/01/28 - NPFG Insured 10/13 at 101.00 A 12,403,710
Kentucky Economic Development Finance Authority, Health
System Revenue Bonds, Norton Healthcare Inc., Series 2000C:
3,815 6.150%, 10/01/27 (Pre-refunded 10/01/13) - NPFG Insured 10/13 at 101.00 A (4) 4,446,573
6,125 6.150%, 10/01/28 (Pre-refunded 10/01/13) - NPFG Insured 10/13 at 101.00 A (4) 7,138,994
2,230 Kentucky State Property and Buildings Commission, Revenue 8/15 at 100.00 AAA 2,565,994
Bonds, Project 85, Series 2005, 5.000%, 8/01/23
(Pre-refunded 8/01/15) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
29,775 Total Kentucky 32,271,032
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 3.7% (2.4% OF TOTAL INVESTMENTS)
Louisiana State, Gasoline Tax Revenue Bonds, Series 2006A:
11,325 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 11,130,776
8,940 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 8,382,591
10 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 7,507
Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF)
5 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 3,757
Residuals 660-3, 16.460%, 5/01/41 - FGIC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
20,280 Total Louisiana 19,524,631
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.1% (0.1% OF TOTAL INVESTMENTS)
555 Maine Health and Higher Educational Facilities Authority, 7/11 at 100.00 Aaa 561,810
Revenue Bonds, Series 1999B, 6.000%, 7/01/29 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 1.8% (1.2% OF TOTAL INVESTMENTS)
2,100 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 1,984,583
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - NPFG Insured
7,335 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 A2 7,557,763
Bonds, Baltimore-Washington International Airport
Passenger Facility, Series 2002B, 5.500%, 3/01/18 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,435 Total Maryland 9,542,346
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.9% (1.8% OF TOTAL INVESTMENTS)
5,000 Massachusetts Bay Transportation Authority, Senior Sales Tax 7/12 at 100.00 AAA 5,528,950
Revenue Refunding Bonds, Series 2002A, 5.000%, 7/01/27
(Pre-refunded 7/01/12) - FGIC Insured
3,465 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 3,202,526
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
Massachusetts, Special Obligation Dedicated Tax Revenue
Bonds, Series 2004:
1,250 5.250%, 1/01/21 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,409,837
1,000 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,127,870
1,195 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 1,347,804
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,255,740
------------------------------------------------------------------------------------------------------------------------------------
13,910 Total Massachusetts 14,872,727
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.9% (0.6% OF TOTAL INVESTMENTS)
4,750 Michigan Strategic Fund, Collateralized Limited Obligation 3/10 at 102.00 A 4,660,083
Pollution Control Revenue Refunding Bonds, Detroit Edison
Company, Series 1999A, 5.550%, 9/01/29 - NPFG Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 33
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 2,715 Harrison County Wastewater Management District, Mississippi, No Opt. Call A (4) $ 3,368,120
Revenue Refunding Bonds, Wastewater Treatment Facilities,
Series 1991B, 7.750%, 2/01/14 - FGIC Insured (ETM)
2,545 Harrison County Wastewater Management District, Mississippi, No Opt. Call N/R (4) 3,113,501
Wastewater Treatment Facilities Revenue Refunding Bonds,
Series 1991A, 8.500%, 2/01/13 - FGIC Insured (ETM)
------------------------------------------------------------------------------------------------------------------------------------
5,260 Total Mississippi 6,481,621
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.2% (1.4% OF TOTAL INVESTMENTS)
12,155 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 11,508,232
2007A, 4.500%, 9/01/37 - FGIC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.5% (1.6% OF TOTAL INVESTMENTS)
33,700 Director of Nevada State Department of Business and Industry, 1/10 at 100.00 Caa2 6,908,837
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 Bonds, 6/12 at 100.00 Baa3 (4) 6,300,407
Reno Transportation Rail Access Corridor Project, Series
2002, 5.125%, 6/01/32 (Pre-refunded 6/01/12) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
39,420 Total Nevada 13,209,244
------------------------------------------------------------------------------------------------------------------------------------
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 - NPFG Insured 7/14 at 100.00 A 1,740,375
1,700 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,738,930
2,100 New Jersey Turnpike Authority, Revenue Bonds, Series 2003A, 7/13 at 100.00 A+ 2,231,291
5.000%, 1/01/19 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,500 Total New Jersey 5,710,596
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.2% (0.8% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,345 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AA+ 1,405,095
3,290 5.000%, 6/01/23 - AMBAC Insured 6/14 at 100.00 AA+ 3,423,410
1,330 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AA 1,387,894
5.000%, 4/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
5,965 Total New Mexico 6,216,399
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 13.8% (8.8% OF TOTAL INVESTMENTS)
11,760 Dormitory Authority of the State of New York, New York City, 5/10 at 101.00 AA- (4) 12,222,991
Lease Revenue Bonds, Court Facilities, Series 1999,
5.750%, 5/15/30 (Pre-refunded 5/15/10) - AMBAC Insured
15,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 A+ 15,878,700
School Districts Financing Program, Series 2002D, 5.500%,
10/01/17 - NPFG Insured
4,080 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,440,460
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
2,890 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 2,969,793
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 -
FGIC Insured
3,300 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,982,903
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
7,800 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AA- 7,949,682
Service Contract Refunding Bonds, Series 2002A, 5.000%,
7/01/25 - FGIC Insured
1,740 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,903,699
Unit Fee Revenue Bonds, Series 2005, Trust 2364, 16.993%,
11/15/44 - AMBAC Insured (IF)
10,150 New York State Housing Finance Agency, Mortgage Revenue 11/09 at 100.00 AAA 10,161,673
Refunding Bonds, Housing Project, Series 1996A, 6.125%,
11/01/20 - FSA Insured
4,200 New York State Mortgage Agency, Homeowner Mortgage Revenue 4/10 at 100.00 Aa1 4,202,688
Bonds, Series 82, 5.550%, 10/01/19 - NPFG Insured
(Alternative Minimum Tax)
New York State Urban Development Corporation, Service
Contract Revenue Bonds, Series 2005B:
2,460 5.000%, 3/15/24 - FSA Insured (UB) 3/15 at 100.00 AAA 2,583,394
2,465 5.000%, 3/15/25 - FSA Insured (UB) 3/15 at 100.00 AAA 2,584,010
5,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/13 at 100.00 Aa3 5,087,650
Lien General Purpose Revenue Bonds, Series 2003A, 5.000%,
11/15/32 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
70,845 Total New York 71,967,643
------------------------------------------------------------------------------------------------------------------------------------
34 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 4.6% (3.0% OF TOTAL INVESTMENTS)
$ 7,000 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ $ 7,498,400
Series 2004, 5.250%, 6/01/19 - FGIC Insured
9,195 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 8,319,543
Series 2006, 4.250%, 12/01/32 - AMBAC Insured
5,000 Lorain County, Ohio, Health Facilities Revenue Bonds, 3/10 at 102.00 AA- 5,063,950
Catholic Healthcare Partners, Series 1999A, 5.500%,
9/01/29 - AMBAC Insured
3,065 Oak Hills Local School District, Hamilton County, Ohio, 12/15 at 100.00 AAA 3,266,003
General Obligation Bonds, Series 2005, 5.000%, 12/01/24 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
24,260 Total Ohio 24,147,896
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.3% (1.4% OF TOTAL INVESTMENTS)
3,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 3,087,000
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG
Insured
1,600 Delaware County Authority, Pennsylvania, Revenue Bonds, 8/16 at 100.00 A1 1,646,976
Villanova University, Series 2006, 5.000%, 8/01/24 - AMBAC
Insured
5,400 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,995,486
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
2,000 Pittsburgh Public Parking Authority, Pennsylvania, Parking 12/15 at 100.00 A 2,040,900
Revenue Bonds, Series 2005B, 5.000%, 12/01/23 - FGIC
Insured
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Pennsylvania 11,770,362
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.2% (1.4% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
25,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 3,625,500
Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
5,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call BBB+ 5,322,000
Transportation Authority, Series 2003AA, 5.500%, 7/01/16 -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
32,500 Total Puerto Rico 11,468,800
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,425 Charleston County School District, South Carolina, General 2/14 at 100.00 Aa1 2,557,332
Obligation Bonds, Series 2004A, 5.000%, 2/01/22 - AMBAC
Insured
9,950 South Carolina Transportation Infrastructure Bank, Revenue 10/16 at 100.00 A1 9,449,116
Bonds, Series 2007A, 4.500%, 10/01/34 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
12,375 Total South Carolina 12,006,448
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.3% (0.8% OF TOTAL INVESTMENTS)
Knox County Health, Educational and Housing Facilities Board,
Tennessee, Hospital Revenue Refunding Bonds, Covenant Health,
Series 2002A:
7,500 0.000%, 1/01/24 - FSA Insured 1/13 at 52.75 AAA 3,350,700
5,000 0.000%, 1/01/25 - FSA Insured 1/13 at 49.71 AAA 2,101,300
2,750 0.000%, 1/01/26 - FSA Insured 1/13 at 46.78 AAA 1,085,562
------------------------------------------------------------------------------------------------------------------------------------
15,250 Total Tennessee 6,537,562
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 17.3% (11.1% OF TOTAL INVESTMENTS)
3,135 Corpus Christi, Texas, Utility System Revenue Bonds, Series 7/14 at 100.00 AAA 3,420,693
2004, 5.250%, 7/15/20 - FSA Insured (UB)
3,000 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,181,320
Refunding and Improvement Bonds, Series 2001A, 5.750%,
11/01/13 - FGIC Insured (Alternative Minimum Tax)
3,735 Grand Prairie Independent School District, Dallas County, 2/13 at 100.00 AAA 4,181,594
Texas, General Obligation Bonds, Series 2003, 5.125%,
2/15/31 (Pre-refunded 2/15/13) - FSA Insured
575 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 584,028
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured
70 Harris County Hospital District, Texas, Revenue Refunding No Opt. Call A1 (4) 71,288
Bonds, Series 1990, 7.400%, 2/15/10 - AMBAC Insured (ETM)
4,700 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 4,942,285
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
Nuveen Investments 35
NQI | Nuveen Insured Quality Municipal Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 4,500 Houston, Texas, General Obligation Public Improvement Bonds, 3/11 at 100.00 AAA $ 4,681,260
Series 2001A, 5.000%, 3/01/22 - FSA Insured
17,000 Houston, Texas, Junior Lien Water and Sewerage System Revenue No Opt. Call AAA 20,884,330
Refunding Bonds, Series 2002A, 5.750%, 12/01/32 - FSA
Insured (ETM)
4,685 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 4,717,092
Bonds, Series 2000A, 5.500%, 7/01/19 - FSA Insured
(Alternative Minimum Tax)
19,200 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 N/R 19,459,775
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist
Hospital of Southeast Texas, Series 2001, 5.400%, 8/15/31
- AMBAC Insured
2,000 Laredo Independent School District Public Facilities 8/11 at 100.00 A- 2,015,860
Corporation, Texas, Lease Revenue Bonds, Series 2004A,
5.000%, 8/01/24 - AMBAC Insured
22,045 North Central Texas Health Facilities Development 8/12 at 101.00 Aa3 22,148,390
Corporation, Revenue Bonds, Children's Medical Center of
Dallas, Series 2002, 5.250%, 8/15/32 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
84,645 Total Texas 90,287,915
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 0.7% (0.5% OF TOTAL INVESTMENTS)
3,615 Utah Transit Authority, Sales Tax Revenue Bonds, Tender 6/18 at 100.00 AAA 3,771,674
Option Bond Trust R-11752-1, 12.604%, 6/15/32 - FSA
Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 12.0% (7.7% OF TOTAL INVESTMENTS)
10,730 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA 10,771,203
Consolidated System Revenue Refunding Bonds, Series 2001C,
5.650%, 7/01/32 - NPFG Insured (Alternative Minimum Tax)
(UB)
1,665 King County, Washington, Sewer Revenue Bonds, Tender Option 7/17 at 100.00 AAA 1,776,389
Bond Trust 3090, 13.238%, 1/01/39 - FSA Insured (IF)
15,025 Seattle Housing Authority, Washington, GNMA Collateralized 11/11 at 105.00 AA+ 15,904,863
Mortgage Loan Low Income Housing Assistance Revenue Bonds,
Park Place Project, Series 2000A, 7.000%, 5/20/42
4,495 Seattle Housing Authority, Washington, GNMA Collateralized 9/11 at 102.00 AA+ 4,628,232
Mortgage Loan Low Income Housing Assistance Revenue Bonds,
RHF/Esperanza Apartments Project, Series 2000A, 6.125%,
3/20/42 (Alternative Minimum Tax)
5,000 Seattle, Washington, Municipal Light and Power Revenue Bonds, 12/10 at 100.00 AAA 5,185,650
Series 2000, 5.250%, 12/01/21 - FSA Insured
2,500 Washington State Healthcare Facilities Authority, Revenue 12/09 at 101.00 A (4) 2,535,950
Bonds, Providence Services, Series 1999, 5.375%, 12/01/19
(Pre-refunded 12/01/09) - NPFG Insured
10,000 Washington State, General Obligation Bonds, Series R-2003A, 1/12 at 100.00 AA+ 10,648,900
5.000%, 1/01/19 - NPFG Insured
21,510 Washington State, Motor Vehicle Fuel Tax General Obligation No Opt. Call AA+ 8,958,055
Bonds, Series 2002-03C, 0.000%, 6/01/28 - NPFG Insured (UB)
2,000 Washington, Certificates of Participation, Washington 1/10 at 100.00 AA 2,006,360
Convention and Trade Center, Series 1999, 5.250%, 7/01/14
- NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
72,925 Total Washington 62,415,602
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 2.6% (1.6% OF TOTAL INVESTMENTS)
12,845 West Virginia Water Development Authority, Infrastructure 10/10 at 100.00 AAA 13,454,751
Revenue Bonds, Infrastructure and Jobs Development Council
Program, Series 2000A, 5.500%, 10/01/39 (Pre-refunded
10/01/10) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
36 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 0.6% (0.3% OF TOTAL INVESTMENTS)
$ 1,635 Green Bay, Wisconsin, Water System Revenue Bonds, Series 11/14 at 100.00 Aa3 (4) $ 1,880,102
2004, 5.000%, 11/01/26 (Pre-refunded 11/01/14) - FSA
Insured
1,000 Wisconsin Public Power Incorporated System, Power Supply 7/15 at 100.00 A+ 1,005,320
System Revenue Bonds, Series 2005A, 5.000%, 7/01/30 -
AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,635 Total Wisconsin 2,885,422
------------------------------------------------------------------------------------------------------------------------------------
$ 970,788 Total Investments (cost $822,132,451) - 155.9% 812,346,224
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (11.3)% (59,145,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.6% 13,865,236
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (47.2)% (5) (245,850,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 521,216,460
==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, from more
information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the port- folio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 37
NIO | Nuveen Insured Municipal Opportunity Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 5.1% (3.3% OF TOTAL INVESTMENTS)
$ 10,500 Birmingham Waterworks and Sewerage Board, Alabama, Water and 1/17 at 100.00 AAA $ 9,749,460
Sewerage Revenue Bonds, Series 2007A, 4.500%, 1/01/43 -
AMBAC Insured (UB)
11,175 Hoover Board of Education, Alabama, Capital Outlay Tax 2/11 at 100.00 AA- 11,626,694
Anticipation Warrants, Series 2001, 5.250%, 2/15/22 - NPFG
Insured
2,500 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 2,752,850
Warrants, Series 2002B, 5.125%, 2/01/42 (Pre-refunded
8/01/12) - FGIC Insured
Jefferson County, Alabama, Sewer Revenue Capital Improvement
Warrants, Series 2002D:
425 5.000%, 2/01/38 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 456,981
14,800 5.000%, 2/01/42 (Pre-refunded 8/01/12) - FGIC Insured 8/12 at 100.00 AAA 16,246,996
18,760 Jefferson County, Alabama, Sewer Revenue Capitol Improvement 2/11 at 101.00 AAA 19,690,684
Warrants, Series 2001A, 5.000%, 2/01/41 (Pre-refunded
2/01/11) - FGIC Insured
10,195 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 1/10 at 100.00 Caa3 3,533,179
Series 1997A, 5.375%, 2/01/27 - FGIC Insured
5,240 Jefferson County, Alabama, Sewer Revenue Refunding Warrants, 2/11 at 101.00 AAA 5,556,810
Series 2003B, 5.000%, 2/01/41 (Pre-refunded 2/01/11) -
FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
73,595 Total Alabama 69,613,654
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,425 Alaska Housing Finance Corporation, Collateralized Veterans 12/09 at 100.00 AAA 2,426,940
Mortgage Program Bonds, First Series 1999A-1, 6.150%,
6/01/39
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.0% (1.3% 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 AA- 2,048,760
2,000 5.000%, 9/01/27 - AMBAC Insured 3/15 at 100.00 AA- 2,035,460
1,000 Arizona State University, System Revenue Bonds, Series 2005, 7/15 at 100.00 N/R 1,039,420
5.000%, 7/01/27 - AMBAC Insured
1,000 Maricopa County Union High School District 210, Phoenix, 7/14 at 100.00 AAA 1,142,430
Arizona, General Obligation Bonds, Series 2004A, 5.000%,
7/01/22 (Pre-refunded 7/01/14) - FSA Insured
5,200 Mesa, Arizona, Utility System Revenue Bonds, Reset Option 7/17 at 100.00 AAA 3,962,296
Longs, Series 11032- 11034, 13.893%, 7/01/31 - FSA Insured
(IF)
1,150 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/14 at 100.00 AA+ 1,181,211
Wastewater System Revenue Bonds, Series 2004, 5.000%,
7/01/27 - NPFG Insured
13,490 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 13,949,604
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
NPFG Insured
1,350 Pima County Industrial Development Authority, Arizona, Lease 1/10 at 100.00 Aa3 1,357,520
Obligation Revenue Refunding Bonds, Tucson Electric Power
Company, Series 1988A, 7.250%, 7/15/10 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
27,190 Total Arizona 26,716,701
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,660 Arkansas State University, Student Fee Revenue Bonds, Beebe 9/15 at 100.00 A2 2,686,627
Campus, Series 2006, 5.000%, 9/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 26.1% (16.6% OF TOTAL INVESTMENTS)
5,600 Alameda Corridor Transportation Authority, California, No Opt. Call A- 2,862,832
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
10,000 California Department of Veterans Affairs, Home Purchase 6/12 at 101.00 Aa2 10,189,500
Revenue Bonds, Series 2002A, 5.300%, 12/01/21 - AMBAC
Insured
California Department of Water Resources, Power Supply
Revenue Bonds, Series 2002A:
30,000 5.375%, 5/01/17 (Pre-refunded 5/01/12) - SYNCORA GTY 5/12 at 101.00 Aaa 33,538,200
Insured
20,000 5.375%, 5/01/18 (Pre-refunded 5/01/12) - AMBAC Insured 5/12 at 101.00 Aaa 22,358,800
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
30 5.000%, 12/01/24 (Pre-refunded 12/01/14) - NPFG Insured 12/14 at 100.00 AAA 34,642
25 5.000%, 12/01/27 (Pre-refunded 12/01/14) - NPFG Insured 12/14 at 100.00 AAA 28,869
38 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
California Department of Water Resources, Water System
Revenue Bonds, Central Valley Project, Series 2005AC:
$ 3,670 5.000%, 12/01/24 - NPFG Insured (UB) 12/14 at 100.00 AAA $ 3,888,695
2,795 5.000%, 12/01/27 - MBIA Insured (UB) 12/14 at 100.00 AAA 2,938,803
10,150 California, General Obligation Bonds, Series 2004, 5.000%, 12/14 at 100.00 A 9,697,919
6/01/31 - AMBAC Insured
3,500 Coachella Valley Unified School District, Riverside County, 8/15 at 100.00 A 3,529,330
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 AA- 19,619,400
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 Costa 6/15 at 100.00 AAA 6,071,943
Counties, California, Water System Subordinated Revenue
Bonds, Series 2005A, 5.000%, 6/01/27 - NPFG Insured
10,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 8,838,600
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/38 - FGIC Insured
1,520 Hayward Redevelopment Agency, California, Downtown 3/16 at 100.00 A- 1,338,147
Redevelopment Project Tax Allocation Bonds, Series 2006,
5.000%, 3/01/36 - SYNCORA GTY Insured
5,600 Kern Community College District, California, General No Opt. Call AAA 2,354,968
Obligation Bonds, Series 2006, 0.000%, 11/01/24 - FSA
Insured
5,000 Long Beach Bond Financing Authority, California, Lease 11/11 at 101.00 BBB 4,577,850
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 AA 2,705,229
Series 2006A, 5.000%, 8/01/22 - FGIC Insured (Alternative
Minimum Tax)
20,000 Los Angeles Unified School District, California, General 7/13 at 100.00 AAA 20,626,200
Obligation Bonds, Series 2003A, 5.000%, 7/01/21 - FSA
Insured
3,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 3,132,840
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC
Insured
5,200 Palomar Pomerado Health, California, General Obligation 8/29 at 100.00 AAA 3,267,160
Bonds, Series 2009A, 0.000%, 8/01/38 - AGC Insured
6,205 Port of Oakland, California, Revenue Bonds, Series 2002L, 11/12 at 100.00 A1 5,992,106
5.000%, 11/01/22 - FGIC Insured (Alternative Minimum Tax)
Poway Redevelopment Agency, California, Tax Allocation Bonds,
Paguay Redevelopment Project, Series 2001:
15,000 5.200%, 6/15/30 - AMBAC Insured 12/11 at 101.00 N/R 13,655,850
5,000 5.125%, 6/15/33 - AMBAC Insured 12/11 at 101.00 N/R 4,376,750
2,035 Redding, California, Electric System Revenue Certificates of 6/15 at 100.00 A 1,879,791
Participation, Series 2005, 5.000%, 6/01/30 - FGIC Insured
6,000 Redlands Unified School District, San Bernardino County, 7/13 at 100.00 AAA 6,077,760
California, General Obligation Bonds, Series 2003, 5.000%,
7/01/26 - FSA Insured
2,970 Riverside Community College District, California, General 8/15 at 100.00 AAA 3,135,162
Obligation Bonds, Series 2005, 5.000%, 8/01/22 - FSA
Insured
2,500 Sacramento County Sanitation District Financing Authority, 12/15 at 100.00 AA 2,599,500
California, Revenue Bonds, Series 2005B, 4.750%, 12/01/21
- FGIC Insured
13,710 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 13,384,936
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.250%, 5/01/26 - NPFG
Insured (Alternative Minimum Tax)
3,030 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ 3,057,664
Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36 -
AMBAC Insured
8,470 San Francisco Bay Area Rapid Transit District, California, 7/11 at 100.00 AA+ (4) 9,101,947
Sales Tax Revenue Bonds, Series 2001, 5.125%, 7/01/36
(Pre-refunded 7/01/11) - AMBAC Insured
1,220 San Francisco Bay Area Rapid Transit District, California, 7/15 at 100.00 AA+ 1,276,230
Sales Tax Revenue Bonds, Series 2005A, 5.000%, 7/01/22 -
NPFG Insured
2,105 San Francisco Unified School District, California, General 6/17 at 100.00 AAA 1,707,892
Obligation Bonds, Series 2007A, 3.000%, 6/15/27 - FSA
Insured
66,685 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call AAA 42,987,152
County, California, Senior Lien Toll Road Revenue Bonds,
Series 1993, 0.000%, 1/01/21 (ETM)
Nuveen Investments 39
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds, Series
1997A:
$ 31,615 5.250%, 1/15/30 - NPFG Insured 1/10 at 100.00 A $ 27,201,230
21,500 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 4,217,870
12,525 San Jose Redevelopment Agency, California, Tax Allocation 8/10 at 101.00 A (4) 13,086,872
Bonds, Merged Area Redevelopment Project, Series 2002,
5.000%, 8/01/20 (Pre-refunded 8/01/10) - NPFG Insured
19,595 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 15,589,586
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - NPFG Insured
11,250 Santa Ana Financing Authority, California, Lease Revenue No Opt. Call A 11,927,588
Bonds, Police Administration and Housing Facility, Series
1994A, 6.250%, 7/01/24 - NPFG Insured
6,785 Santa Clara Valley Water District, California, Water Revenue 6/16 at 100.00 AAA 6,490,667
Bonds, Series 2006A, 3.750%, 6/01/25 - FSA Insured
5,000 Walnut Energy Center Authority, California, Electric Revenue 1/14 at 100.00 A+ 4,856,250
Bonds, Turlock Irrigation District, Series 2004A, 5.000%,
1/01/34 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
407,780 Total California 354,202,730
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.8% (3.7% OF TOTAL INVESTMENTS)
1,080 Arkansas River Power Authority, Colorado, Power Revenue Bonds, 10/16 at 100.00 BBB 967,475
Series 2006, 5.250%, 10/01/40 - SYNCORA GTY Insured
1,900 Aspen, Colorado, Sales Tax Revenue Bonds, Parks and Open 11/15 at 100.00 AAA 2,025,951
Space, Series 2005B, 5.250%, 11/01/24 - FSA Insured
1,000 Colorado Department of Transportation, Certificates of 6/14 at 100.00 AA- 1,039,440
Participation, Series 2004, 5.000%, 6/15/25 - NPFG Insured
4,950 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 5,552,762
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY
Insured
1,740 Douglas County School District RE1, Douglas and Elbert 12/14 at 100.00 Aa2 1,810,835
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 A 14,855,137
Bonds, Series 1997B, 0.000%, 9/01/23 - NPFG Insured
30,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 32,789,988
Bonds, Series 2000A, 5.750%, 9/01/35 (Pre-refunded 9/01/10)
- NPFG Insured
11,800 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 74.80 Aaa 8,771,884
Bonds, Series 2000B, 0.000%, 9/01/15 (Pre-refunded 9/01/10)
- NPFG Insured
10,000 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 3,102,900
Series 2004A, 0.000%, 9/01/27 - NPFG Insured
4,520 Jefferson County School District R1, Colorado, General 12/14 at 100.00 AAA 4,716,710
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA
Insured (UB)
2,500 Summit County School District RE-1, Summit, Colorado, General 12/14 at 100.00 Aa3 2,627,675
Obligation Bonds, Series 2004B, 5.000%, 12/01/24 - FGIC
Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
107,285 Total Colorado 79,287,657
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.9% (0.6% OF TOTAL INVESTMENTS)
District of Columbia Water and Sewerage Authority, Subordinate
Lien Public Utility Revenue Bonds, Series 2003:
5,000 5.125%, 10/01/24 - FGIC Insured 10/13 at 100.00 AA- 5,152,600
5,000 5.125%, 10/01/25 - FGIC Insured 10/13 at 100.00 AA- 5,138,100
2,670 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 2,478,801
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
12,670 Total District of Columbia 12,769,501
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 27.0% (17.2% OF TOTAL INVESTMENTS)
1,250 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 A3 1,282,338
5.000%, 9/01/24 - AMBAC Insured
2,000 Brevard County Health Facilities Authority, Florida, Hospital 4/10 at 100.00 A 2,003,180
Revenue Bonds, Holmes Regional Medical Center Project,
Series 1996, 5.625%, 10/01/14 - NPFG Insured
40 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 975 Broward County Housing Finance Authority, Florida, GNMA 12/09 at 100.00 Aaa $ 975,907
Collateralized Multifamily Housing Revenue Refunding Bonds,
Pompano Oaks Apartments, Series 1997, 6.000%, 12/01/27
(Alternative Minimum Tax)
3,820 Broward County School Board, Florida, Certificates of 7/13 at 100.00 A+ 3,987,201
Participation, Series 2003, 5.250%, 7/01/19 - NPFG Insured
2,150 Broward County, Florida, Airport System Revenue Bonds, Series 10/14 at 100.00 A+ 2,218,908
2004L, 5.000%, 10/01/23 - AMBAC Insured
4,500 Broward County, Florida, Water and Sewer Utility Revenue 10/13 at 100.00 AA 4,617,270
Bonds, Series 2003, 5.000%, 10/01/24 - NPFG Insured
Clay County, Florida, Utility System Revenue Bonds, Series
2007:
5,110 5.000%, 11/01/27 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 5,336,015
12,585 5.000%, 11/01/32 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 12,853,816
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Bonds, Saxon Manor Isles Project, Series 1998B:
1,260 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,260,605
1,000 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,000,400
Collier County Housing Finance Authority, Florida, Multifamily
Housing Revenue Refunding Bonds, Saxon Manor Isles Project,
Series 1998A, Subseries 1:
1,040 5.350%, 9/01/18 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,040,499
1,400 5.400%, 9/01/23 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,400,560
1,500 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 1,557,510
Series 2005, 5.000%, 10/01/23 - NPFG Insured
3,000 Collier County, Florida, Gas Tax Revenue Bonds, Series 2005, 6/15 at 100.00 A 3,059,130
5.000%, 6/01/22 - AMBAC Insured
Dade County Housing Finance Authority, Florida, Multifamily
Mortgage Revenue Bonds, Siesta Pointe Apartments Project,
Series 1997A:
1,230 5.650%, 9/01/17 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,231,119
1,890 5.750%, 9/01/29 - FSA Insured (Alternative Minimum Tax) 3/10 at 100.00 AAA 1,890,794
1,100 Dade County, Florida, Seaport Revenue Refunding Bonds, Series 4/10 at 100.00 A 1,104,378
1995, 5.750%, 10/01/15 - NPFG Insured
Davie, Florida, Water and Sewerage Revenue Refunding and
Improvement Bonds, Series 2003:
910 5.250%, 10/01/17 - AMBAC Insured 10/13 at 100.00 N/R 989,479
475 5.250%, 10/01/18 - AMBAC Insured 10/13 at 100.00 N/R 488,514
Deltona, Florida, Utility Systems Water and Sewer Revenue
Bonds, Series 2003:
1,250 5.250%, 10/01/22 - NPFG Insured 10/13 at 100.00 A 1,282,613
1,095 5.000%, 10/01/23 - NPFG Insured 10/13 at 100.00 A 1,123,930
1,225 5.000%, 10/01/24 - NPFG Insured 10/13 at 100.00 A 1,255,588
1,555 DeSoto County, Florida, Capital Improvement Revenue Bonds, 4/12 at 101.00 A 1,609,363
Series 2002, 5.250%, 10/01/20 - NPFG Insured
2,500 Escambia County School Board, Florida, Certificates of 2/15 at 100.00 A 2,514,150
Participation, Series 2004, 5.000%, 2/01/22 - NPFG Insured
2,500 Flagler County School Board, Florida, Certificates of 8/15 at 100.00 AAA 2,527,200
Participation, Master Lease Revenue Program, Series 2005A,
5.000%, 8/01/30 - FSA Insured
1,200 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 1,204,824
Series 2005, 5.000%, 10/01/30 - NPFG Insured
3,945 Florida Governmental Utility Authority, Utility System Revenue 10/13 at 100.00 N/R (4) 4,472,644
Bonds, Citrus Project, Series 2003, 5.000%, 10/01/23
(Pre-refunded 10/01/13) - AMBAC Insured
1,000 Florida Governmental Utility Authority, Utility System Revenue 1/10 at 101.00 N/R 906,790
Bonds, Golden Gate Project, Series 1999, 5.000%, 7/01/29 -
AMBAC Insured
2,030 Florida Housing Finance Corporation, GNMA Collateralized 12/10 at 102.00 Aaa 2,064,084
Housing Revenue Bonds, Cobblestone Apartments, Series
2000K-1, 6.000%, 12/01/33 (Alternative Minimum Tax)
2,475 Florida Housing Finance Corporation, GNMA Collateralized 9/10 at 102.00 A- 2,516,630
Housing Revenue Bonds, Raintree Apartments, Series 2000J-1,
5.950%, 3/01/35 (Alternative Minimum Tax)
3,005 Florida Housing Finance Corporation, Homeowner Mortgage 1/10 at 24.68 Aa1 749,627
Revenue Bonds, Series 2000-4, 0.000%, 7/01/30 - FSA
Insured (Alternative Minimum Tax)
4,750 Florida Housing Finance Corporation, Housing Revenue Bonds, 10/10 at 102.00 Aaa 5,081,075
Augustine Club Apartments, Series 2000D-1, 5.750%, 10/01/30
(Pre-refunded 10/01/10) - NPFG Insured
Nuveen Investments 41
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
Florida Municipal Loan Council, Revenue Bonds, Series 2000B:
$ 3,365 5.375%, 11/01/25 - NPFG Insured 11/10 at 101.00 A $ 3,393,872
3,345 5.375%, 11/01/30 - NPFG Insured 11/10 at 101.00 A 3,362,929
1,000 Florida Municipal Loan Council, Revenue Bonds, Series 2001A, 11/11 at 101.00 A 1,029,130
5.250%, 11/01/18 - NPFG Insured
2,230 Florida Ports Financing Commission, Revenue Bonds, State 4/10 at 101.00 AA+ 2,241,150
Transportation Trust Fund - Intermodal Program, Series
1999, 5.500%, 10/01/23 - FGIC Insured (Alternative Minimum
Tax)
940 Florida State Board of Education, Full Faith and Credit, 6/11 at 101.00 AAA 958,292
Public Education Capital Outlay Bonds, Series 2001C,
5.125%, 6/01/29 - FGIC Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport 10/13 at 100.00 AAA 2,112,680
Facilities Revenue Refunding Bonds, Series 2003A, 5.000%,
10/01/17 - FSA Insured
5,200 Gulf Breeze, Florida, Local Government Loan Program, 12/11 at 101.00 N/R 5,281,848
Remarketed 6-1-2001, Series 1985E, 4.750%, 12/01/20
(Mandatory put 12/01/11) - FGIC Insured
740 Gulf Breeze, Florida, Local Government Loan Program, 1/10 at 100.00 N/R 742,042
Remarketed 6-3-1996, Series 1985B, 5.900%, 12/01/15
(Mandatory put 12/01/10) - FGIC Insured
700 Gulf Breeze, Florida, Local Government Loan Program, 12/09 at 100.00 N/R 700,959
Remarketed 6-3-1996, Series 1985C, 5.900%, 12/01/15 - FGIC
Insured
1,500 Gulf Breeze, Florida, Local Government Loan Program, 12/10 at 101.00 N/R 1,523,430
Remarketed 7-3-2000, Series 1985E, 5.750%, 12/01/20
(Mandatory put 12/01/19) - FGIC Insured
1,915 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/18 at 100.00 AAA 1,920,094
Series 2006, 5.500%, 6/01/38 - FSA Insured
2,500 Hillsborough County Industrial Development Authority, Florida, No Opt. Call A 2,685,100
Industrial Development Revenue Bonds, University Community
Hospital, Series 1994, 6.500%, 8/15/19 - NPFG Insured
1,000 Hillsborough County School Board, Florida, Certificates of 7/15 at 100.00 AA- 1,017,700
Participation, Master Lease Program, Series 2005A, 5.000%,
7/01/26 - NPFG Insured
6,000 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA- 6,049,560
Participation, Series 2003, 5.000%, 7/01/29 - NPFG Insured
2,000 Hillsborough County, Florida, Community Investment Tax Revenue 11/13 at 101.00 AA+ 2,037,800
Bonds, Series 2004, 5.000%, 5/01/23 - AMBAC Insured
1,000 Hillsborough County, Florida, Revenue Refunding Bonds, Tampa 10/15 at 100.00 AA+ 1,039,490
Bay Arena, Series 2005, 5.000%, 10/01/25 - FGIC Insured
2,595 Indian River County School Board, Florida, Certificates of 7/15 at 100.00 A+ 2,680,116
Participation, Series 2005, 5.000%, 7/01/22 - NPFG Insured
Indian Trace Development District, Florida, Water Management
Special Benefit Assessment Bonds, Series 2005:
1,645 5.000%, 5/01/25 - NPFG Insured 5/15 at 102.00 Baa1 1,485,090
1,830 5.000%, 5/01/27 - NPFG Insured 5/15 at 102.00 Baa1 1,611,699
4,425 Jacksonville Economic Development Commission, Florida, 11/12 at 100.00 Aa2 4,495,313
Healthcare Facilities Revenue Bonds, Mayo Clinic, Series
2001C, 5.500%, 11/15/36 - NPFG Insured
1,480 Jacksonville, Florida, Better Jacksonville Sales Tax Revenue 10/13 at 100.00 AA- 1,552,298
Bonds, Series 2003, 5.250%, 10/01/20 - NPFG Insured
3,205 Jacksonville, Florida, GNMA Collateralized Housing Revenue 3/10 at 100.00 AAA 3,207,628
Refunding Bonds, Windermere Manor Apartments, Series 1993A,
5.875%, 3/20/28
1,000 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,095,120
2004A, 5.000%, 10/01/14 - FGIC Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/14 at 100.00 AA- 1,544,385
2007B, 5.000%, 10/01/24 - NPFG Insured
1,450 Jupiter, Florida, Water Revenue Bonds, Series 2003, 5.000%, 10/13 at 100.00 AA+ 1,496,125
10/01/22 - AMBAC Insured
Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B:
1,730 5.000%, 10/01/18 - AMBAC Insured 10/12 at 100.00 N/R 1,835,997
2,000 5.000%, 10/01/19 - AMBAC Insured 10/12 at 100.00 N/R 2,022,640
1,230 Lee County, Florida, Local Option Gas Tax Revenue Bonds, 10/14 at 100.00 A3 1,250,147
Series 2004, 5.000%, 10/01/20 - FGIC Insured
1,505 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 A- 1,568,752
Series 2004B, 5.000%, 10/01/21 - AMBAC Insured
42 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 1,000 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A $ 943,350
Series 2007A, 5.000%, 4/01/32 - NPFG Insured
3,000 Leesburg, Florida, Utility Revenue Bonds, Series 2007, 10/17 at 100.00 A 2,912,010
5.000%, 10/01/37 - NPFG Insured
2,000 Manatee County, Florida, Public Utilities Revenue Bonds, 10/13 at 100.00 Aa3 2,126,820
Series 2003, 5.125%, 10/01/20 - NPFG Insured
Marco Island, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,350 5.250%, 10/01/17 - NPFG Insured 10/13 at 100.00 A 1,503,414
1,000 5.250%, 10/01/18 - NPFG Insured 10/13 at 100.00 A 1,078,560
2,000 5.000%, 10/01/27 - NPFG Insured 10/13 at 100.00 A 2,020,460
1,425 Miami-Dade County Housing Finance Authority, Florida, 6/11 at 100.00 AAA 1,439,735
Multifamily Mortgage Revenue Bonds, Country Club Villas II
Project, Series 2001-1A, 5.750%, 7/01/27 - FSA Insured
(Alternative Minimum Tax)
2,150 Miami-Dade County, Florida, Aviation Revenue Bonds, Miami 10/12 at 100.00 AAA 2,085,414
International Airport, Series 2002A, 5.125%, 10/01/35 -
FSA Insured (Alternative Minimum Tax)
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami
International Airport, Series 2002:
5,615 5.750%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 5,804,787
35,920 5.375%, 10/01/32 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 35,614,321
12,930 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 12/15 at 100.00 A1 12,242,900
Jackson Health System, Series 2005A, 5.000%, 6/01/32 -
NPFG Insured
5,320 Miami-Dade County, Florida, Public Facilities Revenue Bonds, 6/15 at 100.00 A1 5,246,158
Jackson Health System, Series 2005B, 5.000%, 6/01/25 -
NPFG Insured
18,000 Miami-Dade County, Florida, Subordinate Special Obligation 1/10 at 54.33 A 9,068,580
Bonds, Series 1997A, 0.000%, 10/01/21 - NPFG Insured
3,000 Miami-Dade County, Florida, Transit System Sales Surtax 7/18 at 100.00 AAA 3,028,170
Revenue Bonds, Series 2008, 5.000%, 7/01/35 - FSA Insured
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 2,215,060
Bonds, Series 2008B, 5.250%, 10/01/22 - FSA 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 - NPFG Insured 8/15 at 102.00 A 1,338,569
2,145 5.000%, 8/01/29 - NPFG Insured 8/15 at 102.00 A 2,170,955
2,000 Okaloosa County, Florida, Water and Sewer Revenue Bonds, 7/16 at 100.00 AAA 2,022,460
Series 2006, 5.000%, 7/01/36 - FSA Insured
1,000 Orange County School Board, Florida, Certificates of 8/17 at 100.00 AA- 1,018,580
Participation, Series 2007A, 5.000%, 8/01/27 - FGIC Insured
3,180 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 3,370,959
2002B, 5.125%, 1/01/19 - FGIC Insured
2,500 Orange County, Florida, Tourist Development Tax Revenue 10/16 at 100.00 A+ 2,534,925
Bonds, Series 2006, 5.000%, 10/01/31 - SYNCORA GTY Insured
Osceola County, Florida, Transportation Revenue Bonds,
Osceola Parkway, Series 2004:
2,500 5.000%, 4/01/21 - NPFG Insured 4/14 at 100.00 A2 2,557,850
7,820 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 A2 7,962,324
1,750 Palm Bay, Florida, Utility System Revenue Bonds, Palm Bay 10/13 at 100.00 A 1,785,910
Utility Corporation, Series 2003, 5.000%, 10/01/20 - NPFG
Insured
1,065 Palm Beach County Housing Finance Authority, Florida, 7/12 at 100.00 AAA 1,078,025
Multifamily Housing Revenue Bonds, Westlake Apartments
Phase II, Series 2002, 5.150%, 7/01/22 - FSA Insured
(Alternative Minimum Tax)
2,150 Palm Beach County School Board, Florida, Certificates of 8/14 at 100.00 AA- 2,190,786
Participation, Series 2004A, 5.000%, 8/01/24 - FGIC Insured
3,000 Palm Beach County School Board, Florida, Certificates of 8/17 at 100.00 AA- 3,044,070
Participation, Series 2007E, 5.000%, 8/01/27 - NPFG Insured
8,000 Palm Beach County Solid Waste Authority, Florida, Revenue No Opt. Call AA 6,953,600
Bonds, Series 2002B, 0.000%, 10/01/14 - AMBAC Insured
2,825 Palm Beach County, Florida, Administrative Complex Revenue No Opt. Call Aa3 2,908,733
Refunding Bonds, Series 1993, 5.250%, 6/01/11 - FGIC
Insured
Nuveen Investments 43
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 4,000 Palm Beach County, Florida, Revenue Refunding Bonds, Criminal No Opt. Call Aa1 $ 4,102,800
Justice Facilities, Series 1993, 5.375%, 6/01/10 - FGIC
Insured
Palm Coast, Florida, Water Utility System Revenue Bonds,
Series 2003:
1,000 5.250%, 10/01/19 - NPFG Insured 10/13 at 100.00 A 1,040,590
500 5.250%, 10/01/20 - NPFG Insured 10/13 at 100.00 A 517,255
500 5.250%, 10/01/21 - NPFG Insured 10/13 at 100.00 A 515,275
3,000 Pasco County, Florida, Water and Sewer Revenue Bonds, Series 4/16 at 100.00 AAA 3,039,300
2006 Refunding, 5.000%, 10/01/36 - FSA Insured
Plantation, Florida, Non-Ad Valorem Revenue Refunding and
Improvement Bonds, Series 2003:
2,225 5.000%, 8/15/18 - FSA Insured 8/13 at 100.00 Aa3 2,293,664
1,300 5.000%, 8/15/21 - FSA Insured 8/13 at 100.00 Aa3 1,321,294
1,170 Polk County, Florida, Utility System Revenue Bonds, Series 10/14 at 100.00 A+ 1,196,033
2004A, 5.000%, 10/01/24 - FGIC Insured
1,000 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 889,390
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/33 - NPFG Insured
Port St. Lucie, Florida, Stormwater Utility System Revenue
Refunding Bonds, Series 2002:
1,190 5.250%, 5/01/15 - NPFG Insured 5/12 at 100.00 A 1,278,512
1,980 5.250%, 5/01/17 - NPFG Insured 5/12 at 100.00 A 2,127,272
Port St. Lucie, Florida, Utility System Revenue Bonds,
Refunding Series 2009:
3,775 5.250%, 9/01/35 - AGC Insured 9/18 at 100.00 AAA 3,897,839
3,500 5.000%, 9/01/35 - AGC Insured 9/18 at 100.00 AAA 3,569,160
10,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/11 at 34.97 A (4) 3,435,500
2001, 0.000%, 9/01/29 (Pre-refunded 9/01/11) - NPFG Insured
1,830 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/13 at 100.00 A (4) 2,070,865
2003, 5.000%, 9/01/21 (Pre-refunded 9/01/13) - NPFG Insured
1,000 Port St. Lucie, Florida, Utility System Revenue Bonds, Series 9/14 at 100.00 A2 1,026,390
2004, 5.000%, 9/01/21 - NPFG Insured
1,895 Reedy Creek Improvement District, Orange and Osceola 6/15 at 100.00 A 1,920,715
Counties, Florida, General Obligation Bonds, Series 2005B,
5.000%, 6/01/25 - AMBAC Insured
Sebring, Florida, Water and Wastewater Revenue Refunding
Bonds, Series 2002:
1,360 5.250%, 1/01/17 - FGIC Insured 1/13 at 100.00 A 1,471,942
770 5.250%, 1/01/18 - FGIC Insured 1/13 at 100.00 A 814,083
500 5.250%, 1/01/20 - FGIC Insured 1/13 at 100.00 A 523,685
5,715 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AAA 6,831,482
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
NPFG Insured (ETM)
3,530 Seminole County, Florida, Water and Sewer Revenue Refunding No Opt. Call AA 4,032,072
and Improvement Bonds, Series 1992, 6.000%, 10/01/19 -
NPFG Insured
4,260 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,361,175
Participation, Master Lease Program, Series 2004A, 5.000%,
7/01/24 - FSA Insured
St. Lucie County, Florida, Utility System Revenue Refunding
Bonds, Series 1993:
5,000 5.500%, 10/01/15 - FGIC Insured (ETM) No Opt. Call N/R (4) 5,638,500
1,200 5.500%, 10/01/21 - FGIC Insured (ETM) No Opt. Call N/R (4) 1,435,068
St. Petersburg, Florida, Sales Tax Revenue Bonds,
Professional Sports Facility, Series 2003:
1,475 5.125%, 10/01/20 - FSA Insured 10/13 at 100.00 Aa3 1,584,460
1,555 5.125%, 10/01/21 - FSA Insured 10/13 at 100.00 Aa3 1,663,399
1,300 Sunrise, Florida, Utility System Revenue Refunding Bonds, 4/10 at 100.00 N/R 1,304,641
Series 1996, 5.800%, 10/01/11 - AMBAC Insured
2,500 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 2,544,725
2005, 5.000%, 10/01/29 - NPFG Insured
1,245 Tamarac, Florida, Sales Tax Revenue Bonds, Series 2002, 4/12 at 100.00 A+ 1,253,404
5.000%, 4/01/22 - FGIC Insured
400 Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 10/19 at 100.00 AAA 396,304
5.000%, 10/01/39
1,500 Tampa, Florida, Healthcare System Revenue Bonds, Allegany 1/10 at 100.00 A (4) 1,523,430
Health System - St. Joseph's Hospital, Series 1993,
5.125%, 12/01/23 - NPFG Insured (ETM)
10,255 Tampa, Florida, Revenue Bonds, University of Tampa, Series 4/16 at 100.00 N/R 9,010,351
2006, 5.000%, 4/01/35 - CIFG Insured
1,390 Venice, Florida, General Obligation Bonds, Series 2004, 2/14 at 100.00 A+ 1,432,256
5.000%, 2/01/24 - AMBAC Insured
44 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 4,275 Volusia County School Board, Florida, Certificates of 8/15 at 100.00 Aa3 $ 4,370,675
Participation, Series 2005B, 5.000%, 8/01/24 - FSA Insured
2,000 Volusia County, Florida, Gas Tax Revenue Bonds, Series 2004, 10/14 at 100.00 AAA 2,116,920
5.000%, 10/01/21 - FSA Insured
12,000 Volusia County, Florida, School Board Certificates of 8/17 at 100.00 Aa3 12,078,000
Participation, Series 2007, 5.000%, 8/01/32 - FSA Insured
(UB)
1,785 Volusia County, Florida, Tax Revenue Bonds, Tourist 12/14 at 100.00 Aa3 1,833,266
Development, Series 2004, 5.000%, 12/01/24 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
378,570 Total Florida 366,276,704
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 1.6% (1.0% OF TOTAL INVESTMENTS)
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620
2004, 5.000%, 11/01/22 - FSA Insured
10,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 10,127,400
2009B, 5.375%, 11/01/39 - FSA Insured
1,520 College Park Business and Industrial Development Authority, 9/14 at 102.00 AA- 1,613,906
Georgia, Revenue Bonds, Public Safety Project, Series
2004, 5.250%, 9/01/23 - NPFG Insured
Fulton County Development Authority, Georgia, Revenue Bonds,
Georgia Tech Molecular Science Building, Series 2004:
1,695 5.250%, 5/01/19 - NPFG Insured 5/14 at 100.00 Aa3 1,856,381
1,135 5.250%, 5/01/20 - NPFG Insured 5/14 at 100.00 Aa3 1,239,908
4,500 5.000%, 5/01/36 - NPFG Insured 5/14 at 100.00 Aa3 4,552,380
1,250 Glynn-Brunswick Memorial Hospital Authority, Georgia, Revenue 1/10 at 100.00 AA 1,252,013
Bonds, Southeast Georgia Health Systems, Series 1996,
5.250%, 8/01/13 - MBIA Insured
------------------------------------------------------------------------------------------------------------------------------------
21,100 Total Georgia 21,664,608
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.2% (0.1% OF TOTAL INVESTMENTS)
170 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aaa 178,255
Series 1994B-1, 6.750%, 7/01/22
135 Idaho Housing Agency, Single Family Mortgage Senior Bonds, No Opt. Call Aaa 139,956
Series 1994B-2, 6.900%, 7/01/26 (Alternative Minimum Tax)
180 Idaho Housing Agency, Single Family Mortgage Senior Bonds, 1/10 at 100.00 Aaa 181,109
Series 1995B, 6.600%, 7/01/27 (Alternative Minimum Tax)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series
2006:
1,000 5.000%, 7/15/23 - NPFG Insured 7/16 at 100.00 Aa3 1,062,140
1,065 5.000%, 7/15/24 - NPFG Insured 7/16 at 100.00 Aa3 1,126,355
------------------------------------------------------------------------------------------------------------------------------------
2,550 Total Idaho 2,687,815
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 5.3% (3.4% OF TOTAL INVESTMENTS)
1,050 Bedford Park, Illinois, General Obligation Bonds, Series 12/14 at 100.00 AAA 1,129,307
2004A, 5.250%, 12/15/20 - FSA Insured
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Refunding Bonds, O'Hare International Airport,
Series 2001E:
4,615 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,714,223
4,870 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,959,170
7,200 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 7,527,096
O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - NPFG Insured
7,025 De Witt, Ford, Livingston, Logan, Mc Lean and Tazewell 12/17 at 100.00 Aa3 5,568,858
Community College District 540, Illinois, General
Obligation Bonds, Series 2007, 3.000%, 12/01/26 - FSA
Insured
10,000 Illinois Development Finance Authority, Revenue Bonds, 11/09 at 100.50 A 10,010,600
Provena Health, Series 1998A, 5.500%, 5/15/21 - NPFG
Insured
2,095 Illinois Educational Facilities Authority, Revenue Bonds, 12/09 at 100.00 Baa1 2,096,152
Robert Morris College, Series 2000, 5.800%, 6/01/30 - NPFG
Insured
22,510 Illinois, General Obligation Bonds, Illinois FIRST Program, 2/12 at 100.00 AA- 23,215,689
Series 2002, 5.125%, 2/01/27 - FGIC Insured
20,045 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call AAA 4,640,217
Bonds, McCormick Place Expansion Project, Series 2002A,
0.000%, 12/15/35 - NPFG Insured
Nuveen Investments 45
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
Schaumburg, Illinois, General Obligation Bonds, Series 2004B:
$ 4,260 5.000%, 12/01/22 - FGIC Insured 12/14 at 100.00 AA+ $ 4,489,231
2,365 5.000%, 12/01/23 - FGIC Insured 12/14 at 100.00 AA+ 2,482,990
4,000 Southwestern Illinois Development Authority, School Revenue No Opt. Call A+ 1,721,440
Bonds, Triad School District 2, Madison County, Illinois,
Series 2006, 0.000%, 10/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
90,035 Total Illinois 72,554,973
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 3.2% (2.0% OF TOTAL INVESTMENTS)
2,030 Decatur Township-Marion County Multi-School Building 7/13 at 100.00 AA+ (4) 2,275,711
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.000%, 7/15/20 (Pre-refunded 7/15/13) - FGIC Insured
8,000 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 7,948,720
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
20,000 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AA 8,192,600
Series 1999E, 0.000%, 2/01/28 - AMBAC Insured
3,250 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 3,610,620
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - NPFG Insured
1,340 Monroe-Gregg Grade School Building Corporation, Morgan 1/14 at 100.00 AAA 1,514,280
County, Indiana, First Mortgage Bonds, Series 2004,
5.000%, 1/15/25 (Pre-refunded 1/15/14) - FSA Insured
5,000 Noblesville Redevelopment Authority, Indiana, Economic 7/13 at 100.00 AA- 5,080,750
Development Lease Rental Bonds, Exit 10 Project, Series
2003, 5.000%, 1/15/28 - AMBAC Insured
10,000 Purdue University, Indiana, Student Fee Bonds, Series 2002O, 1/12 at 100.00 Aa1 10,363,300
5.000%, 7/01/19 - NPFG Insured
3,705 Whitley County Middle School Building Corporation, Columbia 7/13 at 100.00 Aa3 (4) 4,180,537
City, Indiana, First Mortgage Bonds, Series 2003, 5.000%,
7/15/16 (Pre-refunded 7/15/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
53,325 Total Indiana 43,166,518
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.7% (0.4% OF TOTAL INVESTMENTS)
2,055 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 2,196,487
5.000%, 9/01/23 - FSA Insured
Neosho County Unified School District 413, Kansas, General
Obligation Bonds, Series 2006:
2,145 5.000%, 9/01/27 - FSA Insured 9/14 at 100.00 Aa3 2,264,906
4,835 5.000%, 9/01/29 - FSA Insured 9/14 at 100.00 Aa3 5,079,071
------------------------------------------------------------------------------------------------------------------------------------
9,035 Total Kansas 9,540,464
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 3.0% (1.9% OF TOTAL INVESTMENTS)
3,870 Kenton County School District Finance Corporation, Kentucky, 6/14 at 100.00 Aa3 4,086,488
School Building Revenue Bonds, Series 2004, 5.000%,
6/01/20 - NPFG Insured
Kentucky State Property and Buildings Commission, Revenue
Bonds, Project 93, Refunding Series 2009:
3,860 5.250%, 2/01/20 - AGC Insured 2/19 at 100.00 AAA 4,313,396
10,000 5.250%, 2/01/24 - AGC Insured 2/19 at 100.00 AAA 10,843,800
7,500 Kentucky Turnpike Authority, Economic Development Road 7/16 at 100.00 AA+ 7,928,100
Revenue Bonds, Revitalization Project, Series 2006B,
5.000%, 7/01/25 - AMBAC Insured
12,980 Louisville and Jefferson County Metropolitan Sewer District, 11/11 at 101.00 AA- 13,607,972
Kentucky, Sewer and Drainage System Revenue Bonds, Series
2001A, 5.500%, 5/15/34 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
38,210 Total Kentucky 40,779,756
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 4.5% (2.9% OF TOTAL INVESTMENTS)
5,000 DeSoto Parish, Louisiana, Pollution Control Revenue Refunding 3/10 at 102.00 BBB 5,001,700
Bonds, Cleco Utility Group Inc. Project, Series 1999,
5.875%, 9/01/29 - AMBAC Insured
3,025 Lafayette City and Parish, Louisiana, Utilities Revenue 11/14 at 100.00 A1 3,187,896
Bonds, Series 2004, 5.250%, 11/01/22 - NPFG Insured
4,545 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 4,621,720
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
NPFG Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2005A:
2,400 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA 2,468,160
4,415 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 4,534,514
5,000 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 5,150,150
46 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA (continued)
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
$ 3,300 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA $ 3,243,405
35,725 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 33,497,547
38 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 28,776
Residuals 660-1, 15.601%, 5/01/41 - FGIC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
63,448 Total Louisiana 61,733,868
------------------------------------------------------------------------------------------------------------------------------------
MAINE - 0.2% (0.2% OF TOTAL INVESTMENTS)
3,000 Maine Health and Higher Educational Facilities Authority, 7/13 at 100.00 AAA 3,324,120
Revenue Bonds, Series 2003B, 5.000%, 7/01/28 (Pre-refunded
7/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.3% (0.2% OF TOTAL INVESTMENTS)
5,345 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 4,746,788
Revenue Bonds, Series 2006A, 5.250%, 9/01/28 - SYNCORA GTY
Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 4.6% (2.9% OF TOTAL INVESTMENTS)
22,500 Massachusetts Development Finance Authority, Revenue Bonds, 1/12 at 101.00 N/R (4) 24,804,000
WGBH Educational Foundation, Series 2002A, 5.375%, 1/01/42
(Pre-refunded 1/01/12) - AMBAC Insured
11,000 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 11,883,410
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
(UB)
7,255 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 6,705,434
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
15,000 Massachusetts, Special Obligation Dedicated Tax Revenue Bonds, 1/14 at 100.00 A (4) 16,918,050
Series 2004, 5.250%, 1/01/23 (Pre-refunded 1/01/14) - FGIC
Insured
1,500 University of Massachusetts Building Authority, Senior Lien 11/14 at 100.00 A+ (4) 1,754,504
Project Revenue Bonds, Series 2004-1, 5.375%, 11/01/20
(Pre-refunded 11/01/14) - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
57,255 Total Massachusetts 62,065,398
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 5.4% (3.5% OF TOTAL INVESTMENTS)
5,490 Detroit City School District, Wayne County, Michigan, No Opt. Call AAA 6,095,986
Unlimited Tax School Building and Site Improvement Bonds,
Series 2001A, 6.000%, 5/01/29 - FSA Insured (UB)
6,000 Detroit, Michigan, General Obligation Bonds, Series 2001A-1, 10/11 at 100.00 A 5,585,640
5.375%, 4/01/18 - NPFG Insured
7,420 Detroit, Michigan, Senior Lien Water Supply System Revenue 1/10 at 100.00 A+ 7,419,777
Bonds, Series 1997A, 5.000%, 7/01/27 - NPFG Insured
Detroit, Michigan, Sewerage Disposal System Revenue Bonds,
Series 1999A:
15,825 5.750%, 7/01/26 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 16,124,726
20,000 5.875%, 7/01/27 (Pre-refunded 1/01/10) - FGIC Insured 1/10 at 101.00 Aaa 20,383,000
1,085 Grand Rapids Community College, Kent County, Michigan, General 5/13 at 100.00 AA 1,176,128
Obligation Refunding Bonds, Series 2003, 5.250%, 5/01/20 -
AMBAC Insured
6,850 Wayne County, Michigan, Airport Revenue Bonds, Detroit 12/09 at 100.50 A 6,920,555
Metropolitan Wayne County Airport, Series 1998A, 5.375%,
12/01/15 - NPFG Insured (Alternative Minimum Tax)
10,000 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 10,138,700
Hotel Revenue Bonds, Detroit Metropolitan Wayne County
Airport, Series 2001A, 5.250%, 12/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
72,670 Total Michigan 73,844,512
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,000 City of Minneapolis, Minnesota, Health Care System Revenue 11/18 at 100.00 AAA 5,644,850
Bonds, Fairview Health Services, Series 2008B, 6.500%,
11/15/38 - AGC Insured
4,000 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 4,400,400
Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 -
AGC Insured
13,020 Saint Paul Housing and Redevelopment Authority, Minnesota, 12/11 at 102.00 Aaa 14,821,056
Multifamily Housing Revenue Bonds, Marian Center Project,
Series 2001A, 6.450%, 6/20/43 (Pre-refunded 12/20/11)
------------------------------------------------------------------------------------------------------------------------------------
22,020 Total Minnesota 24,866,306
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.4% (1.5% OF TOTAL INVESTMENTS)
27,125 Lincoln, Nebraska, Electric System Revenue Bonds, Series 9/17 at 100.00 AA 25,681,679
2007A, 4.500%, 9/01/37 - FGIC Insured (UB)
Nuveen Investments 47
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA (continued)
$ 5,000 Municipal Energy Agency of Nebraska, Power Supply System 4/19 at 100.00 AAA $ 5,309,050
Revenue and Refunding Bonds, Series 2009A, 5.375%, 4/01/39
- BHAC Insured
1,000 Nebraska Public Power District, General Revenue Bonds, Series 1/15 at 100.00 AAA 1,032,080
2005A, 5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
33,125 Total Nebraska 32,022,809
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 5.8% (3.7% OF TOTAL INVESTMENTS)
8,475 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ 8,537,207
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
- NPFG Insured
3,630 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ (4) 4,059,320
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - NPFG Insured
7,370 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 7,586,604
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 Caa2 3,075,150
13,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 2,665,130
14,985 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 A 13,903,682
5.375%, 6/01/32 - FGIC Insured
25,300 Reno, Nevada, Capital Improvement Revenue Bonds, Series 2002, 6/12 at 100.00 Baa1 (4) 28,055,422
5.375%, 6/01/32 (Pre-refunded 6/01/12) - FGIC Insured
10,000 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 Baa3 (4) 11,014,700
Reno Transportation Rail Access Corridor Project, Series
2002, 5.125%, 6/01/27 (Pre-refunded 6/01/12) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
97,760 Total Nevada 78,897,215
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 2.0% (1.3% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
2,000 5.125%, 10/01/21 - NPFG Insured 10/14 at 100.00 A1 2,101,060
2,250 5.125%, 10/01/22 - NPFG Insured 10/14 at 100.00 A1 2,353,253
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
3,850 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 3,941,437
3,850 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 3,938,165
New Jersey Turnpike Authority, Revenue Bonds, Series 2003A:
8,250 5.000%, 1/01/19 - FGIC Insured 7/13 at 100.00 A+ 8,765,790
2,000 5.000%, 1/01/23 - FSA Insured (UB) 7/13 at 100.00 AAA 2,076,520
3,320 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,542,141
5.000%, 1/01/21 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
25,520 Total New Jersey 26,718,366
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 1.3% (0.8% OF TOTAL INVESTMENTS)
3,660 San Juan County, New Mexico, Subordinate Gross Receipts Tax 6/15 at 100.00 A+ 3,771,885
Revenue Bonds, Series 2005, 5.000%, 6/15/25 - NPFG Insured
13,600 University of New Mexico, System Improvement Subordinated 6/17 at 100.00 AAA 13,805,224
Lien Revenue Bonds, Series 2007A, 5.000%, 6/01/36 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
17,260 Total New Mexico 17,577,109
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.8% (4.4% OF TOTAL INVESTMENTS)
1,880 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,919,010
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
3,335 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 3,502,284
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
3,820 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,221,215
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
12,500 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 12,845,125
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 -
FGIC Insured
6,900 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 6,236,979
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
48 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK (continued)
Metropolitan Transportation Authority, New York, State
Service Contract Refunding Bonds, Series 2002A:
$ 1,500 5.000%, 7/01/21 - FGIC Insured 7/12 at 100.00 AA- $ 1,540,784
5,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AA- 5,095,950
2,615 New York City Industrial Development Agency, New York, 3/19 at 100.00 AAA 3,115,511
Revenue Bonds, Yankee Stadium Project Pilot, Series 2009A,
7.000%, 3/01/49 - AGC Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AA 5,255,050
Series 2005F-1, 5.000%, 9/01/21 - AMBAC Insured
10,000 New York City, New York, General Obligation Bonds, Fiscal 4/15 at 100.00 AA 10,310,500
Series 2005M, 5.000%, 4/01/26 - FGIC Insured
5,000 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 A+ 5,172,100
Series 2005F, 5.000%, 1/01/26 - AMBAC Insured
14,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 14,353,080
Series 2005G, 5.000%, 1/01/30 - FSA Insured
3,650 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 3,826,222
Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 -
FSA Insured (UB)
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 1,044,380
5,000 5.000%, 3/15/25 - FGIC Insured 3/14 at 100.00 AAA 5,200,250
10,000 Triborough Bridge and Tunnel Authority, New York, Subordinate 11/12 at 100.00 Aa3 10,163,200
Lien General Purpose Revenue Refunding Bonds, Series
2002E, 5.000%, 11/15/32 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
91,200 Total New York 92,801,640
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.2% (0.8% 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 A 2,140,485
2,575 5.000%, 5/01/26 - FGIC Insured 5/14 at 100.00 A 2,632,217
5,000 North Carolina Municipal Power Agency 1, Catawba Electric 1/13 at 100.00 AAA 5,451,400
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 Aa3 3,320,252
3,295 5.000%, 5/01/24 - AMBAC Insured 5/15 at 100.00 Aa3 3,400,440
------------------------------------------------------------------------------------------------------------------------------------
16,190 Total North Carolina 16,944,794
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
Grand Forks, North Dakota, Sales Tax Revenue Bonds, Alerus
Project, Series 2005A:
2,195 5.000%, 12/15/22 - NPFG Insured 12/15 at 100.00 A1 2,303,366
1,355 5.000%, 12/15/23 - NPFG Insured 12/15 at 100.00 A1 1,410,785
3,000 5.000%, 12/15/24 - NPFG Insured 12/15 at 100.00 A1 3,115,320
------------------------------------------------------------------------------------------------------------------------------------
6,550 Total North Dakota 6,829,471
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,650 Cleveland State University, Ohio, General Receipts Bonds, 6/14 at 100.00 A+ 2,693,010
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 2,327,860
Obligation Bonds, Series 2004, 5.250%, 12/01/25
(Pre-refunded 12/01/14) - FSA Insured
2,385 Columbus, Ohio, Tax Increment Financing Bonds, Easton 6/14 at 100.00 BBB+ 2,431,341
Project, Series 2004A, 5.000%, 12/01/22 - AMBAC Insured
2,205 Hamilton City School District, Ohio, General Obligation 6/15 at 100.00 Baa1 2,269,804
Bonds, Series 2005, 5.000%, 12/01/24 - NPFG Insured
19,595 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 17,729,360
Series 2006, 4.250%, 12/01/32 - AMBAC Insured
20,100 Lucas County, Ohio, Hospital Revenue Bonds, ProMedica 11/09 at 101.00 N/R 19,995,480
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 Aa3 (4) 3,410,910
Obligation Bonds, Series 2003, 5.000%, 12/01/28
(Pre-refunded 12/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
51,935 Total Ohio 50,857,765
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 49
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 2.5% (1.6% OF TOTAL INVESTMENTS)
$ 3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA $ 3,605,910
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC
Insured
2,150 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 2,325,935
Family Mortgage Revenue Bonds, Series 1987A, 7.997%,
8/01/18 (Alternative Minimum Tax)
21,000 Oklahoma Municipal Power Authority, Power Supply System 1/17 at 100.00 A 18,325,020
Revenue Bonds, Series 2007, 4.500%, 1/01/47 - FGIC Insured
5,245 Oklahoma State Industries Authority, Revenue Bonds, Oklahoma 2/11 at 100.00 A1 5,290,998
Medical Research Foundation, Series 2001, 5.250%, 2/01/21
- AMBAC Insured
4,880 University of Oklahoma, Student Housing Revenue Bonds, Series 7/14 at 100.00 A1 4,940,414
2004, 5.000%, 7/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
36,775 Total Oklahoma 34,488,277
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 0.3% (0.2% OF TOTAL INVESTMENTS)
2,535 Oregon Department of Administrative Services, Certificates of 5/15 at 100.00 AAA 2,649,810
Participation, Series 2005A, 5.000%, 5/01/25 - FSA Insured
755 Oregon Housing and Community Services Department, Single 1/10 at 100.00 Aa2 755,792
Family Mortgage Revenue Bonds, Series 1995A, 6.450%,
7/01/26 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,290 Total Oregon 3,405,602
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 2.8% (1.8% OF TOTAL INVESTMENTS)
7,925 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 8,272,274
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured (UB)
1,800 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 A+ 1,835,532
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
NPFG Insured
11,740 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 10,860,557
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
2,625 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 2,673,510
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
6,335 Radnor Township School District, Delaware County, 8/15 at 100.00 Aa3 6,620,899
Pennsylvania, General Obligation Bonds, Series 2005B,
5.000%, 2/15/30 - FSA Insured
Reading School District, Berks County, Pennsylvania, General
Obligation Bonds, Series 2005:
3,285 5.000%, 1/15/22 - FSA Insured (UB) 1/16 at 100.00 AAA 3,495,010
3,450 5.000%, 1/15/23 - FSA Insured (UB) 1/16 at 100.00 AAA 3,647,340
------------------------------------------------------------------------------------------------------------------------------------
37,160 Total Pennsylvania 37,405,122
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.9% (0.5% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,877,600
Series 2005RR, 5.000%, 7/01/30 (Pre-refunded 7/01/15) -
SYNCORA GTY Insured
2,000 Puerto Rico Highway and Transportation Authority, Highway 7/13 at 100.00 BBB 2,011,100
Revenue Bonds, Series 2003G, 5.250%, 7/01/19 - FGIC Insured
1,550 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,541,940
8/01/21 - CIFG Insured
36,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 5,220,720
Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
42,050 Total Puerto Rico 11,651,360
------------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND - 1.9% (1.2% OF TOTAL INVESTMENTS)
2,195 Providence Housing Development Corporation, Rhode Island, 1/10 at 100.00 A 2,198,205
FHA-Insured Section 8 Assisted Mortgage Revenue Refunding
Bonds, Barbara Jordan Apartments, Series 1994A, 6.750%,
7/01/25 - NPFG Insured
20,475 Rhode Island Depositors Economic Protection Corporation, 2/11 at 100.00 A (4) 21,650,878
Special Obligation Refunding Bonds, Series 1993B, 5.250%,
8/01/21 (Pre-refunded 2/01/11) - NPFG Insured
1,405 Rhode Island Health & Educational Building Corporation, 9/14 at 100.00 A2 1,466,441
Higher Education Auxiliary Enterprise Revenue Bonds,
Series 2004A, 5.500%, 9/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
24,075 Total Rhode Island 25,315,524
------------------------------------------------------------------------------------------------------------------------------------
50 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.5% (3.5% OF TOTAL INVESTMENTS)
$ 14,650 Anderson County School District 5, South Carolina, General 2/18 at 100.00 AAA $ 15,780,394
Obligation Bonds, Series 2008, Trust 1181, 9.516%, 2/01/38
- FSA Insured (IF)
10,000 Beaufort County, South Carolina, Tax Increment Bonds, New 12/12 at 100.00 A 10,082,000
River Redevelopment Project, Series 2002, 5.000%, 6/01/27
- NPFG Insured
Medical University Hospital Authority, South Carolina,
FHA-Insured Mortgage Revenue Bonds, Series 2004A:
2,000 5.250%, 8/15/22 - NPFG Insured 8/14 at 100.00 A 2,060,220
2,105 5.250%, 8/15/23 - NPFG Insured 8/14 at 100.00 A 2,164,908
3,685 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call N/R 2,998,742
Revenue Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC
Insured (ETM)
7,955 Piedmont Municipal Power Agency, South Carolina, Electric No Opt. Call N/R 6,787,046
Revenue Bonds, Series 1988A, 0.000%, 1/01/13 - AMBAC
Insured
8,000 South Carolina JOBS Economic Development Authority, 11/12 at 100.00 A- 8,214,400
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 A- 9,719,200
Industrial Revenue Bonds, South Carolina Electric and Gas
Company, Series 2002B, 5.450%, 11/01/32 - AMBAC Insured
(Alternative Minimum Tax)
17,500 South Carolina Transportation Infrastructure Bank, Revenue 10/16 at 100.00 A1 16,619,050
Bonds, Series 2007A, 4.500%, 10/01/34 - SYNCORA GTY Insured
------------------------------------------------------------------------------------------------------------------------------------
75,895 Total South Carolina 74,425,960
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 0.5% (0.3% OF TOTAL INVESTMENTS)
6,455 Memphis-Shelby County Airport Authority, Tennessee, Airport 3/11 at 100.00 AAA 6,555,955
Revenue Bonds, Series 2001A, 5.500%, 3/01/18 - FSA Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.8% (6.9% OF TOTAL INVESTMENTS)
22,650 Brazos River Authority, Texas, Revenue Refunding Bonds, 11/09 at 101.00 BBB+ 22,677,180
Houston Industries Inc., Series 1998C, 5.125%, 5/01/19 -
AMBAC Insured
521 Capital Area Housing Finance Corporation, Texas, FNMA Backed 4/12 at 106.00 Aaa 532,206
Single Family Mortgage Revenue Refunding Bonds, Series
2002A-2, 6.300%, 4/01/35 - AMBAC Insured (Alternative
Minimum Tax)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,506,375
Bonds, Series 2000A, 6.125%, 11/01/35 - FGIC Insured
(Alternative Minimum Tax)
25,000 Harris County-Houston Sports Authority, Texas, Junior Lien 11/11 at 100.00 A 22,717,750
Revenue Refunding Bonds, Series 2001B, 5.250%, 11/15/40 -
NPFG Insured
4,671 Houston Housing Finance Corporation, Texas, GNMA 9/11 at 105.00 Aaa 4,812,718
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 AA 4,206,200
5,000 5.250%, 5/15/25 - NPFG Insured 5/14 at 100.00 AA 5,245,700
17,500 Houston, Texas, Hotel Occupancy Tax and Special Revenue 9/11 at 100.00 A- 17,592,925
Bonds, Convention and Entertainment Project, Series 2001B,
5.250%, 9/01/33 - AMBAC Insured
900 Houston, Texas, Subordinate Lien Airport System Revenue 7/10 at 100.00 AAA 901,944
Bonds, Series 2000A, 5.625%, 7/01/30 - FSA Insured
(Alternative Minimum Tax)
23,865 Jefferson County Health Facilities Development Corporation, 8/11 at 100.00 N/R 23,412,997
Texas, FHA-Insured Mortgage Revenue Bonds, Baptist
Hospital of Southeast Texas, Series 2001, 5.500%, 8/15/41
- AMBAC Insured
140 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 A1 (4) 149,205
Improvement Bonds, Series 2001A, 5.000%, 5/15/21
(Pre-refunded 5/15/11) - NPFG Insured
8,065 Lower Colorado River Authority, Texas, Revenue Refunding and 5/11 at 100.00 A1 8,167,909
Improvement Bonds, Series 2001A, 5.000%, 5/15/21 - NPFG
Insured
Port of Houston Authority, Harris County, Texas, General
Obligation Port Improvement Bonds, Series 2001B:
3,205 5.500%, 10/01/18 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,266,119
3,375 5.500%, 10/01/19 - FGIC Insured (Alternative Minimum Tax) 10/11 at 100.00 AAA 3,430,350
7,205 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,434,047
Series 2001, 5.375%, 7/01/15 - FGIC Insured (Alternative
Minimum Tax)
Nuveen Investments 51
NIO | Nuveen Insured Municipal Opportunity Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TEXAS (continued)
$ 7,550 Waco Health Facilities Development Corporation, Texas, 8/16 at 100.00 A $ 7,259,023
Hillcrest Health System Project, FHA Insured Mortgage
Revenue Bonds, Series 2006A, 5.000%, 8/01/31 - NPFG Insured
1,840 Ysleta Independent School District Public Facility 11/09 at 100.00 AA- 1,848,573
Corporation, Texas, Lease Revenue Refunding Bonds, Series
2001, 5.375%, 11/15/24 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
147,987 Total Texas 146,161,221
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.3% (0.8% OF TOTAL INVESTMENTS)
2,000 Clearfield City, Utah, Sales Tax Revenue Bonds, Series 2003, 7/13 at 100.00 AA- (4) 2,250,120
5.000%, 7/01/28 (Pre-refunded 7/01/13) - FGIC Insured
15,000 Utah Transit Authority, Sales Tax Revenue Bonds, Series 6/18 at 100.00 AAA 15,633,900
2008A, 5.000%, 6/15/32 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
17,000 Total Utah 17,884,020
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
1,035 Loudoun County Industrial Development Authority, Virginia, 6/14 at 100.00 AAA 1,142,837
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 AA- 4,972,857
System Revenue Bonds, Series 2001A, 5.500%, 10/01/19 -
NPFG Insured (Alternative Minimum Tax)
10,000 Virginia Housing Development Authority, Commonwealth Mortgage 7/11 at 100.00 AAA 10,085,700
Bonds, Series 2001H-1, 5.375%, 7/01/36 - NPFG Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
15,875 Total Virginia 16,201,394
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 4.0% (2.6% OF TOTAL INVESTMENTS)
2,500 Grant County Public Utility District 2, Washington, Revenue 1/15 at 100.00 Aa2 2,539,650
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 AA+ 3,695,790
General Obligation Bonds, Series 2004, 5.000%, 10/01/24 -
FGIC Insured
5,000 King County, Washington, General Obligation Sewer Bonds, 1/19 at 100.00 AAA 5,854,050
Series 2009, Trust 1W, 13.696%, 1/01/39 - AGC Insured (IF)
10,000 King County, Washington, Sewer Revenue Bonds, Series 2007, 7/17 at 100.00 AAA 10,203,600
5.000%, 1/01/42 - FSA Insured
4,345 King County, Washington, Sewer Revenue Bonds, Tender Option 7/17 at 100.00 AAA 4,635,681
Bond Trust 3090, 13.238%, 1/01/39 - FSA Insured (IF)
3,195 Kitsap County, Washington, Limited Tax General Obligation 7/10 at 100.00 AA- (4) 3,304,589
Bonds, Series 2000, 5.500%, 7/01/25 (Pre-refunded 7/01/10)
- AMBAC Insured
4,250 Snohomish County Public Utility District 1, Washington, No Opt. Call Aaa 5,264,177
Generation System Revenue Bonds, Series 1989, 6.650%,
1/01/16 - FGIC Insured (ETM)
Tacoma, Washington, Solid Waste Utility Revenue Refunding
Bonds, Series 2006:
3,890 5.000%, 12/01/24 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,071,624
4,085 5.000%, 12/01/25 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,255,385
4,290 5.000%, 12/01/26 - SYNCORA GTY Insured 12/16 at 100.00 AA 4,450,360
5,945 Washington State, General Obligation Bonds, Series 2009, 7/16 at 100.00 AAA 6,645,440
Trust 1212, 13.208%, 7/01/31 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
51,000 Total Washington 54,920,346
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 2.2% (1.4% OF TOTAL INVESTMENTS)
15,000 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 14,982,300
Revenue Bonds, Marshfield Clinic, Series 1997, 5.750%,
2/15/27 - NPFG Insured
290 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 310,810
5/01/20 - FGIC Insured
2,600 Wisconsin, General Obligation Bonds, Series 2004-3, 5.250%, 5/14 at 100.00 Aa3 (4) 2,986,048
5/01/20 (Pre-refunded 5/01/14) - FGIC Insured
10,945 Wisconsin, General Obligation Bonds, Series 2004-4, 5.000%, 5/14 at 100.00 AA 11,622,057
5/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
28,835 Total Wisconsin 29,901,215
------------------------------------------------------------------------------------------------------------------------------------
$ 2,276,105 Total Long-Term Investments (cost $2,089,134,409) - 155.7% 2,115,920,805
===============---------------------------------------------------------------------------------------------------------------------
52 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.0% (0.6% OF TOTAL INVESTMENTS)
CALIFORNIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
$ 2,585 Westminster Redevelopment Agency, Orange County, California, 11/19 at 100.00 A-1 $ 2,585,000
Westminster Commercial Redevelopment Project 1, Tax
Allocation Bonds, Variable Rate Demand Obligations, Tender
Option Bond Trust 3009, 0.210%, 11/01/45 - AGC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,400 Colorado Health Facilities Authority, Colorado, Revenue No Opt. Call A-1+ 1,400,000
Bonds, Catholic Health Initiatives, Variable Rate Demand
Obligations, Tender Option Bond Trust 2906Z, 0.230%,
3/01/16 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 0.1% (0.1% OF TOTAL INVESTMENTS)
1,882 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 7/17 at 100.00 A-1 1,882,000
Tax Revenue Bonds, Variable Rate Demand Obligations,
Tender Option Bond Trust 2008-1061, 0.360%, 7/01/34 - FSA
Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.4% (0.2% OF TOTAL INVESTMENTS)
5,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call A-1 5,000,000
WGBH Educational Foundation, Variable Rate Demand
Obligations, Tender Option Bond Trust 1129, 0.190%,
1/01/42 - AGC Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.2% (0.1% OF TOTAL INVESTMENTS)
2,500 Sampson County, North Carolina, Certificates of No Opt. Call A-1 2,500,000
Participation, Series 2006, Variable Rate Demand
Obligations Series 112, 0.310%, 6/01/34 - FSA Insured (5)
------------------------------------------------------------------------------------------------------------------------------------
$ 13,367 Total Short-Term Investments (cost $13,367,000) 13,367,000
===============---------------------------------------------------------------------------------------------------------------------
Total Investments (cost $2,102,501,409) - 156.7% 2,129,287,805
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.9)% (134,833,333)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.9% 39,864,416
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation (675,475,000)
Value - (49.7)% (6)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $1,358,843,888
==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.7%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 53
NIF | Nuveen Premier Insured Municipal Income Fund, Inc.
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 2,200 Auburn, Alabama, General Obligation Warrants, Series 2005, 8/15 at 100.00 AA+ $ 2,267,430
5.000%, 8/01/30 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 3.1% (2.1% OF TOTAL INVESTMENTS)
4,370 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 4,518,886
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/25 -
NPFG Insured
5,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 4,160,450
Plaza, Series 2005B, 0.000%, 7/01/40 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,370 Total Arizona 8,679,336
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 1.5% (1.0% OF TOTAL INVESTMENTS)
4,020 Northwest Community College District, Arkansas, General 5/15 at 100.00 A 4,199,694
Obligation Bonds, Series 2005, 5.000%, 5/15/23 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 30.5% (20.2% OF TOTAL INVESTMENTS)
10,000 ABAG Finance Authority for Non-Profit Corporations, 12/09 at 101.00 N/R (4) 10,149,500
California, Insured Certificates of Participation,
Children's Hospital Medical Center of Northern California,
Series 1999, 6.000%, 12/01/29 (Pre-refunded 12/01/09) -
AMBAC Insured
10 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 11,547
Bonds, Central Valley Project, Series 2005AC, 5.000%,
12/01/26 (Pre-refunded 12/01/14) - NPFG Insured
990 California Department of Water Resources, Water System Revenue 12/14 at 100.00 AAA 1,044,212
Bonds, Central Valley Project, Series 2005AC, 5.000%,
12/01/26 - MBIA Insured (UB)
1,250 California Pollution Control Financing Authority, Remarketed 4/11 at 102.00 A 1,288,913
Revenue Bonds, Pacific Gas and Electric Company, Series
1996A, 5.350%, 12/01/16 - NPFG Insured (Alternative Minimum
Tax)
4,775 Clovis Unified School District, Fresno County, California, No Opt. Call AA (4) 2,405,550
General Obligation Bonds, Series 2001A, 0.000%, 8/01/25 -
FGIC Insured (ETM)
1,005 Folsom Cordova Unified School District, Sacramento County, 10/14 at 100.00 AAA 1,036,758
California, General Obligation Bonds, School Facilities
Improvement District 2, Series 2004B, 5.000%, 10/01/26 -
FSA Insured
1,150 Kern Community College District, California, General No Opt. Call AAA 596,356
Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA
Insured
45 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 46,680
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-I,
7.150%, 12/30/24 (Alternative Minimum Tax)
35 Kern County Housing Authority, California, GNMA Guaranteed No Opt. Call AAA 36,390
Tax-Exempt Mortgage Obligation Bonds, Series 1994A-III,
7.450%, 6/30/25 (Alternative Minimum Tax)
3,925 La Verne-Grand Terrace Housing Finance Agency, California, No Opt. Call AAA 5,137,315
Single Family Residential Mortgage Revenue Bonds, Series
1984A, 10.250%, 7/01/17 (ETM)
5,000 Ontario Redevelopment Financing Authority, San Bernardino No Opt. Call A 5,699,650
County, California, Revenue Refunding Bonds, Redevelopment
Project 1, Series 1995, 7.400%, 8/01/25 - NPFG Insured
8,880 Pomona, California, GNMA/FHLMC Collateralized Single Family No Opt. Call AAA 11,656,865
Mortgage Revenue Refunding Bonds, Series 1990B, 7.500%,
8/01/23 (ETM)
8,795 San Bernardino County, California, GNMA Mortgage-Backed No Opt. Call AAA 10,286,720
Securities Program Single Family Home Mortgage Revenue
Bonds, Series 1988A, 8.300%, 9/01/14 (Alternative Minimum
Tax) (ETM)
8,970 San Bernardino, California, GNMA Mortgage-Backed Securities No Opt. Call AAA 11,674,186
Program Single Family Mortgage Revenue Refunding Bonds,
Series 1990A, 7.500%, 5/01/23 (ETM)
4,300 San Francisco Airports Commission, California, Revenue 5/11 at 100.00 A1 4,311,008
Refunding Bonds, San Francisco International Airport,
Second Series 2001, Issue 27A, 5.125%, 5/01/19 - NPFG
Insured (Alternative Minimum Tax)
29,000 San Joaquin Hills Transportation Corridor Agency, Orange No Opt. Call A 6,147,130
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A, 0.000%, 1/15/31 - NPFG Insured
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 A 2,052,120
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - NPFG Insured
4,475 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 3,560,265
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - NPFG Insured
4,455 San Mateo County Community College District, California, No Opt. Call Aa1 2,585,593
General Obligation Bonds, Series 2006B, 0.000%, 9/01/21 -
NPFG Insured
54 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 1,815 University of California, General Revenue Bonds, Series 2005G, 5/13 at 101.00 Aa1 $ 1,821,951
4.750%, 5/15/31 - NPFG Insured
3,600 Ventura County Community College District, California, General 8/15 at 100.00 AA 3,727,008
Obligation Bonds, Series 2005B, 5.000%, 8/01/28 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
104,475 Total California 85,275,717
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.8% (6.5% OF TOTAL INVESTMENTS)
3,000 Colorado Health Facilities Authority, Colorado, Revenue Bonds, 4/18 at 100.00 AAA 3,130,620
Catholic Health Initiatives, Series 2006C-1, Trust 1090,
14.965%, 10/01/41 - FSA Insured (IF)
2,500 Denver City and County, Colorado, Airport System Revenue 11/12 at 100.00 A+ 2,546,025
Refunding Bonds, Series 2002E, 5.500%, 11/15/18 - FGIC
Insured (Alternative Minimum Tax)
6,000 E-470 Public Highway Authority, Colorado, Senior Revenue 9/10 at 102.00 AAA 6,387,660
Bonds, Series 2000A, 5.750%, 9/01/29 (Pre-refunded 9/01/10)
- NPFG Insured
20,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 4,925,200
Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured
4,405 Garfield, Eagle and Pitkin Counties School District RE-1, 12/14 at 100.00 AAA 4,617,717
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 2,154,869
Obligation Bonds, Series 2004, 5.000%, 12/15/24 - FSA
Insured (UB)
1,390 Teller County School District RE-2, Woodland Park, Colorado, 12/14 at 100.00 AA- 1,469,995
General Obligation Bonds, Series 2004, 5.000%, 12/01/22 -
NPFG Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/12 at 100.00 AA- (4) 1,101,260
Series 2002A, 5.000%, 6/01/19 (Pre-refunded 6/01/12) - FGIC
Insured
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
41,360 Total Colorado 27,360,246
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 617,379
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 3.7% (2.4% OF TOTAL INVESTMENTS)
2,285 Florida Municipal Loan Council, Revenue Bonds, Series 2005A, 2/15 at 100.00 A 2,310,066
5.000%, 2/01/23 - NPFG Insured
1,500 JEA, Florida, Water and Sewerage System Revenue Bonds, Series 10/13 at 100.00 AA- 1,559,550
2004A, 5.000%, 10/01/19 - FGIC Insured
4,240 Reedy Creek Improvement District, Florida, Utility Revenue 10/13 at 100.00 A 4,426,433
Bonds, Series 2003-1, 5.250%, 10/01/17 - NPFG Insured
2,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 2,034,740
2005, 5.000%, 10/01/28 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
10,025 Total Florida 10,330,789
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.3% (2.2% OF TOTAL INVESTMENTS)
2,700 Atlanta, Georgia, Airport General Revenue Bonds, Series 2004G, 1/15 at 100.00 AAA 2,799,279
5.000%, 1/01/25 - FSA Insured
6,500 Medical Center Hospital Authority, Georgia, Revenue 2/10 at 102.00 A 6,391,905
Anticipation Certificates, Columbus Regional Healthcare
System, Inc. Project, Series 1999, 5.500%, 8/01/25 - NPFG
Insured
------------------------------------------------------------------------------------------------------------------------------------
9,200 Total Georgia 9,191,184
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 3.8% (2.5% OF TOTAL INVESTMENTS)
2,250 Hawaii Department of Budget and Finance, Special Purpose 1/10 at 100.00 Baa1 2,255,693
Revenue Bonds, Hawaiian Electric Company Inc., Series
1999D, 6.150%, 1/01/20 - AMBAC Insured (Alternative Minimum
Tax)
8,030 Hawaii Department of Transportation, Airport System Revenue 7/10 at 101.00 A 8,232,998
Refunding Bonds, Series 2000B, 6.500%, 7/01/15 - FGIC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,280 Total Hawaii 10,488,691
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 16.7% (11.0% OF TOTAL INVESTMENTS)
4,000 Bridgeview, Illinois, General Obligation Bonds, Series 2002, 12/12 at 100.00 A 4,086,360
5.000%, 12/01/22 - FGIC Insured
8,200 Chicago Board of Education, Illinois, General Obligation Lease No Opt. Call A1 9,063,050
Certificates, Series 1992A, 6.250%, 1/01/15 - NPFG Insured
Nuveen Investments 55
NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS (continued)
$ 10,000 Chicago, Illinois, General Obligation Refunding Bonds, Series 1/10 at 101.00 AA- $ 10,084,800
2000D, 5.500%, 1/01/35 - FGIC Insured
1,450 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 1,515,874
O'Hare International Airport, Series 2005A, 5.250%,
1/01/24 - NPFG Insured
21,860 Illinois Development Finance Authority, Local Government No Opt. Call Aa3 16,712,844
Program Revenue Bonds, Kane, Cook and DuPage Counties
School District U46 - Elgin, Series 2002, 0.000%, 1/01/17
- FSA Insured
2,500 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 A+ 2,513,400
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
5,010 Metropolitan Pier and Exposition Authority, Illinois, Revenue No Opt. Call A 2,766,923
Refunding Bonds, McCormick Place Expansion Project, Series
1996A, 0.000%, 12/15/21 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
53,020 Total Illinois 46,743,251
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.0% (2.6% OF TOTAL INVESTMENTS)
2,130 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 2,116,347
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
Indiana University, Parking Facility Revenue Bonds, Series
2004:
1,015 5.250%, 11/15/19 - AMBAC Insured 11/14 at 100.00 Aa1 1,120,550
1,060 5.250%, 11/15/20 - AMBAC Insured 11/14 at 100.00 Aa1 1,165,968
1,100 5.250%, 11/15/21 - AMBAC Insured 11/14 at 100.00 Aa1 1,206,623
9,255 Indianapolis Local Public Improvement Bond Bank, Indiana, No Opt. Call AA 4,475,903
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 1,081,240
Corporation, Indiana, First Mortgage Bonds, Series 2003,
5.250%, 1/15/21 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
15,560 Total Indiana 11,166,631
------------------------------------------------------------------------------------------------------------------------------------
IOWA - 1.2% (0.8% OF TOTAL INVESTMENTS)
3,345 Ames, Iowa, Hospital Revenue Refunding Bonds, Mary Greeley 6/13 at 100.00 N/R 3,331,386
Medical Center, Series 2003, 5.000%, 6/15/17 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.4% (0.2% OF TOTAL INVESTMENTS)
985 Neosho County Unified School District 413, Kansas, General 9/14 at 100.00 Aa3 1,028,527
Obligation Bonds, Series 2006, 5.000%, 9/01/31 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.8% (1.9% OF TOTAL INVESTMENTS)
885 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A 899,939
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
NPFG Insured
7,160 Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series 5/16 at 100.00 AAA 7,037,206
2006A, 4.750%, 5/01/39 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
8,045 Total Louisiana 7,937,145
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 2.2% (1.4% OF TOTAL INVESTMENTS)
1,200 Maryland Economic Development Corporation, Student Housing 6/16 at 100.00 Baa2 1,112,196
Revenue Refunding Bonds, University of Maryland College
Park Projects, Series 2006, 5.000%, 6/01/28 - CIFG Insured
5,000 Maryland Transportation Authority, Airport Parking Revenue 3/12 at 101.00 A2 5,000,400
Bonds, Baltimore-Washington International Airport
Passenger Facility, Series 2002B, 5.125%, 3/01/21 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
6,200 Total Maryland 6,112,596
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.3% (1.5% OF TOTAL INVESTMENTS)
4,400 Massachusetts School Building Authority, Dedicated Sales Tax 8/15 at 100.00 AAA 4,753,364
Revenue Bonds, Series 2005A, 5.000%, 8/15/23 - FSA Insured
(UB)
1,725 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 1,594,331
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
6,125 Total Massachusetts 6,347,695
------------------------------------------------------------------------------------------------------------------------------------
56 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 3.7% (2.4% OF TOTAL INVESTMENTS)
$ 6,500 Michigan Higher Education Student Loan Authority, Revenue No Opt. Call AA $ 6,412,835
Bonds, Series 2000 XII-T, 5.300%, 9/01/10 - AMBAC Insured
(Alternative Minimum Tax)
3,810 Michigan Housing Development Authority, GNMA Collateralized 8/12 at 102.00 Aaa 3,843,223
Limited Obligation Multifamily Housing Revenue Bonds,
Cranbrook Apartments, Series 2001A, 5.500%, 2/20/43
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
10,310 Total Michigan 10,256,058
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 1.8% (1.2% OF TOTAL INVESTMENTS)
4,860 Minneapolis-St. Paul Metropolitan Airports Commission, 1/11 at 100.00 AA- 4,992,970
Minnesota, Airport Revenue Bonds, Series 2001B, 5.750%,
1/01/15 - FGIC Insured (Alternative Minimum Tax)
130 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/10 at 100.00 AA+ 130,556
Series 1995D, 5.950%, 2/01/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,990 Total Minnesota 5,123,526
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.7% (0.5% OF TOTAL INVESTMENTS)
2,000 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 A 2,093,620
Bonds, Series 2003, 5.000%, 10/01/21 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 4.4% (2.9% OF TOTAL INVESTMENTS)
2,100 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ 2,115,414
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
- NPFG Insured
900 Clark County, Nevada, General Obligation Bank Bonds, Southern 12/12 at 100.00 AA+ (4) 1,006,443
Nevada Water Authority Loan, Series 2002, 5.000%, 6/01/32
(Pre-refunded 12/01/12) - NPFG Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
160 0.000%, 1/01/28 - AMBAC Insured No Opt. Call Caa2 8,280
2,000 5.375%, 1/01/40 - AMBAC Insured 1/10 at 100.00 Caa2 410,020
7,990 Reno, Nevada, Senior Lien Sales and Room Tax Revenue Bonds, 6/12 at 100.00 Baa3 (4) 8,826,154
Reno Transportation Rail Access Corridor Project, Series
2002, 5.250%, 6/01/41 (Pre-refunded 6/01/12) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
13,150 Total Nevada 12,366,311
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.9% (0.6% OF TOTAL INVESTMENTS)
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,200 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 1,228,500
1,200 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,227,480
------------------------------------------------------------------------------------------------------------------------------------
2,400 Total New Jersey 2,455,980
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 6.9% (4.6% OF TOTAL INVESTMENTS)
1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,020,750
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
2,185 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,842,501
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
5,000 Long Island Power Authority, New York, Electric System 6/16 at 100.00 A 5,138,050
General Revenue Bonds, Series 2006A, 5.000%, 12/01/25 -
FGIC Insured
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 11,300,600
Transportation Revenue Refunding Bonds, Series 2002F,
5.250%, 11/15/27 (Pre-refunded 11/15/12) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
18,185 Total New York 19,301,901
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.2% (1.5% OF TOTAL INVESTMENTS)
3,100 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA 3,000,397
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 Aa3 3,162,698
Revenue Bonds, Series 2005A, 5.000%, 5/01/22 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,150 Total North Carolina 6,163,095
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.5% (1.0% OF TOTAL INVESTMENTS)
4,605 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 4,166,558
Series 2006, 4.250%, 12/01/32 - AMBAC Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 57
NIF | Nuveen Premier Insured Municipal Income Fund, Inc. (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 1.5% (1.0% OF TOTAL INVESTMENTS)
$ 3,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA $ 3,605,910
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC
Insured
455 Oklahoma Housing Finance Agency, GNMA Collateralized Single No Opt. Call AAA 492,232
Family Mortgage Revenue Bonds, Series 1987A, 7.997%,
8/01/18 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
3,955 Total Oklahoma 4,098,142
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 4.2% (2.7% OF TOTAL INVESTMENTS)
Oregon Health Sciences University, Revenue Bonds, Series
2002A:
5,000 5.000%, 7/01/26 - NPFG Insured 1/13 at 100.00 A 4,960,600
7,000 5.000%, 7/01/32 - NPFG Insured 1/13 at 100.00 A 6,635,930
------------------------------------------------------------------------------------------------------------------------------------
12,000 Total Oregon 11,596,530
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 3.3% (2.2% OF TOTAL INVESTMENTS)
1,500 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 1,543,500
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG
Insured
4,000 Commonwealth Financing Authority, Pennsylvania, State 6/16 at 100.00 AAA 4,175,280
Appropriation Lease Bonds, Series 2006A, 5.000%, 6/01/26 -
FSA Insured (UB)
2,680 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 2,479,241
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,230 Total Pennsylvania 9,267,425
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 2.3% (1.5% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
1,000 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 994,800
8/01/21 - CIFG Insured
5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 725,100
Revenue Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
2,000 Puerto Rico, Highway Revenue Bonds, Highway and No Opt. Call A 2,115,080
Transportation Authority, Series 2003AA, 5.500%, 7/01/17 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
10,500 Total Puerto Rico 6,356,280
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 1.9% (1.3% OF TOTAL INVESTMENTS)
3,000 Blount County Public Building Authority, Tennessee, Local 6/15 at 100.00 Aa3 3,116,790
Government Improvement Loans, Oak Ridge General
Obligation, 2005 Series B9A, Variable Rate Demand
Obligations, 5.000%, 6/01/24 - AMBAC Insured
2,055 Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds, 10/14 at 100.00 AAA 2,182,450
Series 2004, 5.000%, 10/01/22 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
5,055 Total Tennessee 5,299,240
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 12.9% (8.5% OF TOTAL INVESTMENTS)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,500,125
Refunding and Improvement Bonds, Series 2001A, 5.500%,
11/01/35 - FGIC Insured (Alternative Minimum Tax)
4,040 Harris County, Texas, Subordinate Lien Unlimited Tax Toll No Opt. Call AAA 5,990,472
Road Revenue Bonds, Tender Options Bond Trust 3028,
13.931%, 8/15/28 - FSA Insured (IF)
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 A+ 4,782,111
4,800 5.250%, 12/15/21 - FGIC Insured 12/13 at 100.00 A+ 5,007,840
7,600 San Antonio, Texas, Airport System Improvement Revenue Bonds, 7/11 at 101.00 A+ 7,803,072
Series 2001, 5.375%, 7/01/16 - FGIC Insured (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
33,505 Total Texas 36,083,620
------------------------------------------------------------------------------------------------------------------------------------
58 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 16.9% (11.2% OF TOTAL INVESTMENTS)
$ 5,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 5,000,800
Consolidated System Revenue Bonds, Series 2001B, 5.600%,
1/01/36 - NPFG Insured (Alternative Minimum Tax) (UB)
King County School District 405, Bellevue, Washington,
General Obligation Bonds, Series 2002:
9,285 5.000%, 12/01/19 - FGIC Insured 12/12 at 100.00 AA+ 10,041,728
12,785 5.000%, 12/01/20 - FGIC Insured 12/12 at 100.00 AA+ 13,765,865
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 Aa1 3,027,883
2,990 5.250%, 12/01/19 - FGIC Insured 6/13 at 100.00 Aa1 3,222,114
4,715 Port of Seattle, Washington, Revenue Bonds, Series 2001B, 10/11 at 100.00 Aa2 4,829,009
5.625%, 4/01/17 - FGIC Insured (Alternative Minimum Tax)
(UB)
895 Port of Seattle, Washington, Special Facility Revenue Bonds, 3/10 at 101.00 A 900,039
Terminal 18, Series 1999C, 6.000%, 9/01/29 - NPFG Insured
(Alternative Minimum Tax)
1,265 Tacoma, Washington, General Obligation Bonds, Series 2002, 12/12 at 100.00 AA 1,370,487
5.000%, 12/01/18 - FGIC Insured
5,000 Washington, General Obligation Bonds, Series 2001C, 5.250%, 1/11 at 100.00 AAA 5,077,000
1/01/26 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
44,690 Total Washington 47,234,925
------------------------------------------------------------------------------------------------------------------------------------
$ 465,600 Total Investments (cost $413,684,963) - 151.4% 422,940,908
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (9.2)% (25,665,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 4.4% 12,160,706
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (46.6)% (5) (130,125,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 279,311,614
==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 30.8%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 59
NPX | Nuveen Insured Premium Income Municipal Fund 2
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 3.5% (2.3% OF TOTAL INVESTMENTS)
$ 3,750 Huntsville Healthcare Authority, Alabama, Revenue Bonds, 6/15 at 100.00 A2 $ 3,758,888
Series 2005A, 5.000%, 6/01/24 - NPFG Insured
Jefferson County, Alabama, General Obligation Warrants,
Series 2004A:
1,395 5.000%, 4/01/22 - NPFG Insured 4/14 at 100.00 A 929,307
1,040 5.000%, 4/01/23 - NPFG Insured 4/14 at 100.00 A 692,567
11,135 Limestone County Water and Sewer Authority, Alabama, Water 3/17 at 100.00 N/R 9,094,734
Revenue Bonds, Series 2007, 4.500%, 12/01/37 - SYNCORA GTY
Insured
2,590 Montgomery Water and Sewerage Board, Alabama, Water and 3/15 at 100.00 AAA 2,705,358
Sewerage Revenue Bonds, Series 2005, 5.000%, 3/01/25 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
19,910 Total Alabama 17,180,854
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.6% (1.7% OF TOTAL INVESTMENTS)
12,365 Phoenix Civic Improvement Corporation, Arizona, Junior Lien 7/15 at 100.00 AAA 12,719,998
Water System Revenue Bonds, Series 2005, 4.750%, 7/01/27 -
NPFG Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
ARKANSAS - 2.6% (1.7% OF TOTAL INVESTMENTS)
5,745 Arkansas Development Finance Authority, State Facility 6/14 at 100.00 AAA 6,105,038
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 - NPFG Insured 11/14 at 100.00 Aa3 2,075,180
2,000 5.000%, 11/01/28 - NPFG Insured 11/14 at 100.00 Aa3 2,068,780
2,480 University of Arkansas, Monticello Campus, Revenue Bonds, 12/13 at 100.00 Aa3 2,518,316
Series 2005, 5.000%, 12/01/35 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
12,225 Total Arkansas 12,767,314
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 23.0% (14.8% OF TOTAL INVESTMENTS)
22,880 Alameda Corridor Transportation Authority, California, Senior No Opt. Call A 5,649,072
Lien Revenue Bonds, Series 1999A, 0.000%, 10/01/32 - NPFG
Insured
20 California Department of Water Resources, Water System 12/14 at 100.00 AAA 23,095
Revenue Bonds, Central Valley Project, Series 2005AC,
5.000%, 12/01/24 (Pre-refunded 12/01/14) - NPFG Insured
1,980 California Department of Water Resources, Water System 12/14 at 100.00 AAA 2,097,987
Revenue Bonds, Central Valley Project, Series 2005AC,
5.000%, 12/01/24 - NPFG Insured
1,300 California Educational Facilities Authority, Revenue Bonds, 10/15 at 100.00 Aa3 1,303,913
Occidental College, Series 2005A, 5.000%, 10/01/33 - NPFG
Insured
31,200 Foothill/Eastern Transportation Corridor Agency, California, 1/10 at 24.23 A 6,181,968
Toll Road Revenue Refunding Bonds, Series 1999, 0.000%,
1/15/34 - NPFG Insured
1,735 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A- 1,637,077
Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 -
AMBAC Insured
7,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 6,223,630
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/35 - FGIC Insured
1,870 Kern Community College District, California, General No Opt. Call AAA 969,726
Obligation Bonds, Series 2006, 0.000%, 11/01/23 - FSA
Insured
6,520 Los Angeles Unified School District, California, General 7/15 at 100.00 AA- 6,840,719
Obligation Bonds, Series 2005E, 5.000%, 7/01/22 - AMBAC
Insured
4,000 Los Angeles Unified School District, California, General 7/16 at 100.00 AA- 4,177,120
Obligation Bonds, Series 2006F, 5.000%, 7/01/24 - FGIC
Insured
15,000 Orange County Sanitation District, California, Certificates 8/13 at 100.00 AAA 17,148,150
of Participation, Series 2003, 5.250%, 2/01/30
(Pre-refunded 8/01/13) - FGIC Insured
1,750 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 1,892,433
Certificates of Participation, Series 2003B, 5.000%,
8/15/34 - NPFG Insured (ETM)
8,250 Orange County Water District, California, Revenue 8/13 at 100.00 AAA 8,306,018
Certificates of Participation, Series 2003B, 5.000%,
8/15/34 - NPFG Insured
1,435 Pasadena Area Community College District, Los Angeles County, 6/13 at 100.00 AA+ (4) 1,619,627
California, General Obligation Bonds, Series 2003A,
5.000%, 6/01/22 (Pre-refunded 6/01/13) - FGIC Insured
60 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
$ 12,265 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 N/R (4) $ 12,568,068
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 (Pre-refunded
12/01/09) - AMBAC Insured
735 Sacramento City Financing Authority, California, Capital 12/09 at 102.00 N/R 748,847
Improvement Revenue Bonds, Solid Waste and Redevelopment
Projects, Series 1999, 5.800%, 12/01/19 - AMBAC Insured
San Diego County, California, Certificates of Participation,
Edgemoor Facility Project and Regional System, Series 2005:
1,675 5.000%, 2/01/24 - AMBAC Insured 2/15 at 100.00 AA+ 1,732,520
720 5.000%, 2/01/25 - AMBAC Insured 2/15 at 100.00 AA+ 742,399
San Joaquin Hills Transportation Corridor Agency, Orange
County, California, Toll Road Revenue Refunding Bonds,
Series 1997A:
3,825 0.000%, 1/15/32 - NPFG Insured No Opt. Call A 750,389
26,900 0.000%, 1/15/34 - NPFG Insured No Opt. Call A 4,519,200
2,000 San Jose Redevelopment Agency, California, Tax Allocation 8/14 at 100.00 A 2,052,120
Bonds, Merged Area Redevelopment Project, Series 2004A,
5.250%, 8/01/19 - NPFG Insured
7,845 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 6,241,404
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - NPFG Insured
5,000 Torrance, California, Certificates of Participation, Series No Opt. Call AA 5,096,150
2005B, 5.000%, 6/01/24 - AMBAC Insured
12,500 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 Aa1 12,675,750
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
178,405 Total California 111,197,382
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 9.5% (6.1% OF TOTAL INVESTMENTS)
1,940 Colorado Educational and Cultural Facilities Authority, 6/13 at 100.00 A 1,950,592
Charter School Revenue Bonds, Adams School District 12 -
Pinnacle School, Series 2003, 5.250%, 6/01/23 - SYNCORA
GTY Insured
3,405 Colorado Educational and Cultural Facilities Authority, 12/13 at 100.00 A 3,425,975
Revenue Bonds, Classical Academy Charter School, Series
2003, 5.250%, 12/01/23 - SYNCORA GTY Insured
16,595 Denver Convention Center Hotel Authority, Colorado, Senior 12/13 at 100.00 N/R (4) 18,615,773
Revenue Bonds, Convention Center Hotel, Series 2003A,
5.000%, 12/01/33 (Pre-refunded 12/01/13) - SYNCORA GTY
Insured
5,725 Denver School District 1, Colorado, General Obligation Bonds, 12/13 at 100.00 AAA 6,303,968
Series 2004, 5.000%, 12/01/18 - FSA Insured
12,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 2,955,120
Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured
1,325 El Paso County, Colorado, Certificates of Participation, 12/12 at 100.00 AA- 1,346,505
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 (UB) 12/14 at 100.00 AAA 2,682,825
5,125 5.000%, 12/15/23 - FSA Insured (UB) 12/14 at 100.00 AAA 5,408,720
2,000 5.000%, 12/15/24 - FSA Insured (UB) 12/14 at 100.00 AAA 2,087,040
1,000 University of Colorado, Enterprise System Revenue Bonds, 6/15 at 100.00 AA- 1,026,900
Series 2005, 5.000%, 6/01/30 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
51,615 Total Colorado 45,803,418
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.2% (0.1% OF TOTAL INVESTMENTS)
1,065 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 988,735
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 0.9% (0.6% OF TOTAL INVESTMENTS)
4,000 Florida State Board of Education, Full Faith and Credit 6/13 at 101.00 AAA 4,242,040
Public Education Capital Outlay Bonds, Series 2003J,
5.000%, 6/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 3.8% (2.4% OF TOTAL INVESTMENTS)
4,000 Cobb County Development Authority, Georgia, Parking Revenue 7/14 at 100.00 A1 4,117,960
Bonds, Kennesaw State University, Series 2004, 5.000%,
7/15/24 - NPFG Insured
1,475 Columbus, Georgia, Water and Sewerage Revenue Bonds, Series 5/14 at 100.00 AA- 1,545,136
2005, 5.000%, 5/01/23 - NPFG Insured
Nuveen Investments 61
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA (continued)
Municipal Electric Authority of Georgia, Combustion Turbine
Revenue Bonds, Series 2003A:
$ 1,775 5.000%, 11/01/21 - NPFG Insured 11/13 at 100.00 A1 $ 1,835,545
2,580 5.000%, 11/01/22 - NPFG Insured 11/13 at 100.00 A1 2,658,200
4,500 South Fulton Municipal Regional Water and Sewerage Authority, 1/13 at 100.00 N/R (4) 5,007,104
Georgia, Water and Sewerage Revenue Bonds, Series 2003,
5.000%, 1/01/33 (Pre-refunded 1/01/13) - NPFG Insured
3,000 Valdosta and Lowndes County Hospital Authority, Georgia, 10/12 at 101.00 A+ 3,043,350
Revenue Certificates, South Georgia Medical Center, Series
2002, 5.200%, 10/01/22 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,330 Total Georgia 18,207,295
------------------------------------------------------------------------------------------------------------------------------------
HAWAII - 8.0% (5.2% OF TOTAL INVESTMENTS)
2,375 Hawaii County, Hawaii, General Obligation Bonds, Series 7/13 at 100.00 AAA 2,571,674
2003A, 5.000%, 7/15/19 - FSA Insured
20,000 Hawaii Department of Budget and Finance, Special Purpose 7/10 at 101.00 Baa1 20,130,800
Revenue Refunding Bonds, Hawaiian Electric Company Inc.,
Series 2000, 5.700%, 7/01/20 - AMBAC Insured (Alternative
Minimum Tax)
Hawaii Department of Transportation, Airport System Revenue
Refunding Bonds, Series 2000B:
6,105 6.100%, 7/01/16 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 6,231,922
9,500 6.625%, 7/01/17 - FGIC Insured (Alternative Minimum Tax) 7/10 at 101.00 A 9,716,600
------------------------------------------------------------------------------------------------------------------------------------
37,980 Total Hawaii 38,650,996
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 0.1% (0.0% OF TOTAL INVESTMENTS)
255 Idaho Housing and Finance Association, Single Family Mortgage 1/10 at 100.00 Aaa 259,133
Bonds, Series 1998E, 5.450%, 7/01/18 - AMBAC Insured
(Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 3.2% (2.1% OF TOTAL INVESTMENTS)
1,015 Chicago Park District, Illinois, Limited Tax General 7/11 at 100.00 AA 1,068,633
Obligation Park Bonds, Series 2001C, 5.500%, 1/01/18 -
FGIC Insured
Illinois Health Facilities Authority, Revenue Bonds, Lutheran
General Health System, Series 1993A:
1,890 6.125%, 4/01/12 - FSA Insured (ETM) No Opt. Call AAA 2,016,252
5,000 6.250%, 4/01/18 - FSA Insured (ETM) No Opt. Call AAA 6,029,050
1,950 Illinois Health Facilities Authority, Revenue Refunding No Opt. Call AA- (4) 2,351,934
Bonds, SSM Healthcare System, Series 1992AA, 6.550%,
6/01/14 - MBIA Insured (ETM)
4,000 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 A+ 4,021,440
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
130 Peoria, Moline and Freeport, Illinois, GNMA Collateralized 4/10 at 101.00 AA+ 132,235
Single Family Mortgage Revenue Bonds, Series 1995A,
7.600%, 4/01/27 (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
13,985 Total Illinois 15,619,544
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 4.5% (2.9% 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 2,210,313
2,215 5.000%, 8/01/24 - FSA Insured 8/14 at 100.00 AAA 2,319,436
10,000 Indiana Finance Authority, Revenue and Refunding Bonds, 12/19 at 100.00 AA 9,766,400
Trinity Health Credit Group, Series 2009A, 5.250%,
12/01/38 (WI/DD, Settling 11/13/09)
3,730 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,706,091
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
3,500 Indianapolis Local Public Improvement Bond Bank, Indiana, 1/19 at 100.00 AAA 3,752,210
Waterworks Project Series 2009A, 5.500%, 1/01/38 - AGC
Insured
------------------------------------------------------------------------------------------------------------------------------------
21,550 Total Indiana 21,754,450
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,250 Kansas Turnpike Authority, Revenue Bonds, Series 2004A-2, 9/14 at 101.00 AAA 1,322,925
5.000%, 9/01/27 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 1.0% (0.7% OF TOTAL INVESTMENTS)
6,010 Kentucky Economic Development Finance Authority, Health No Opt. Call A 1,768,983
System Revenue Bonds, Norton Healthcare Inc., Series
2000B, 0.000%, 10/01/28 - NPFG Insured
3,065 Kentucky Turnpike Authority, Economic Development Road 7/15 at 100.00 AA+ 3,216,564
Revenue Bonds, Revitalization Project, Series 2005B,
5.000%, 7/01/25 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
9,075 Total Kentucky 4,985,547
------------------------------------------------------------------------------------------------------------------------------------
62 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 5.1% (3.3% OF TOTAL INVESTMENTS)
$ 3,940 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A $ 4,006,507
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 -
NPFG Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2005A:
1,010 5.000%, 5/01/25 - FGIC Insured 5/15 at 100.00 AA 1,038,684
2,210 5.000%, 5/01/26 - FGIC Insured 5/15 at 100.00 AA 2,269,825
2,500 5.000%, 5/01/27 - FGIC Insured 5/15 at 100.00 AA 2,575,075
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
1,320 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 1,297,362
14,265 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 13,375,578
------------------------------------------------------------------------------------------------------------------------------------
25,245 Total Louisiana 24,563,031
------------------------------------------------------------------------------------------------------------------------------------
MARYLAND - 0.8% (0.6% OF TOTAL INVESTMENTS)
1,865 Baltimore, Maryland, Senior Lien Convention Center Hotel 9/16 at 100.00 Baa3 1,686,725
Revenue Bonds, Series 2006A, 5.250%, 9/01/26 - SYNCORA GTY
Insured
2,580 Maryland Health and Higher Educational Facilities Authority, 7/16 at 100.00 A 2,438,203
Revenue Bonds, Western Maryland Health, Series 2006A,
4.750%, 7/01/36 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,445 Total Maryland 4,124,928
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 2.8% (1.8% OF TOTAL INVESTMENTS)
3,000 Massachusetts Development Finance Authority, Revenue Bonds, No Opt. Call N/R 3,266,160
WGBH Educational Foundation, Series 2002A, 5.750%, 1/01/42
- AMBAC Insured
290 Massachusetts Port Authority, Special Facilities Revenue 1/11 at 101.00 N/R 195,135
Bonds, Delta Air Lines Inc., Series 2001A, 5.000%, 1/01/27
- AMBAC Insured (Alternative Minimum Tax)
3,335 Massachusetts School Building Authority, Dedicated Sales Tax 8/17 at 100.00 AAA 3,736,567
Revenue Bonds, Tender Option Bond Trust 3091, 13.212%,
8/15/37 - AMBAC Insured (IF)
Massachusetts, Special Obligation Dedicated Tax Revenue
Bonds, Series 2004:
3,650 5.250%, 1/01/22 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 4,116,726
2,000 5.250%, 1/01/24 (Pre-refunded 1/01/14) - FGIC Insured 1/14 at 100.00 A (4) 2,255,740
------------------------------------------------------------------------------------------------------------------------------------
12,275 Total Massachusetts 13,570,328
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.6% (0.4% OF TOTAL INVESTMENTS)
3,170 Michigan Housing Development Authority, Rental Housing 4/10 at 100.00 AA 3,174,501
Revenue Bonds, Series 1997A, 6.000%, 4/01/16 - AMBAC
Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.2% (0.1% OF TOTAL INVESTMENTS)
795 Minnesota Housing Finance Agency, Rental Housing Bonds, 2/10 at 100.00 AA+ 798,403
Series 1995D, 5.950%, 2/01/18 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,000 Jackson County Reorganized School District R-7, Lees Summit, 3/16 at 100.00 Aa2 1,069,180
Missouri, General Obligation Bonds, Series 2006, 5.250%,
3/01/25 - NPFG Insured
450 Missouri Housing Development Commission, Multifamily Housing 12/09 at 100.00 AAA 450,549
Revenue Bonds, Brookstone Village Apartments, Series
1996A, 6.000%, 12/01/16 - FSA Insured (Alternative Minimum
Tax)
750 Missouri Western State College, Auxiliary System Revenue 10/13 at 100.00 A 753,413
Bonds, Series 2003, 5.000%, 10/01/33 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
2,200 Total Missouri 2,273,142
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.9% (1.9% OF TOTAL INVESTMENTS)
1,000 Nebraska Public Power District, General Revenue Bonds, Series 1/15 at 100.00 AAA 1,032,080
2005A, 5.000%, 1/01/25 - FSA Insured
11,520 Nebraska Public Power District, Power Supply System Revenue 1/16 at 100.00 A1 11,662,502
Bonds, Series 2006A, 5.000%, 1/01/41 - FGIC Insured
865 Omaha Public Power District, Nebraska, Separate Electric 2/17 at 100.00 AAA 1,314,791
System Revenue Bonds, Nebraska City 2, Series 2006A, Trust
11673, 19.714%, 2/01/49 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
13,385 Total Nebraska 14,009,373
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 63
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NEVADA - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 5,000 Clark County, Nevada, Industrial Development Revenue Bonds, 7/10 at 102.00 Baa3 $ 4,945,150
Southwest Gas Corporation, Series 2000C, 5.950%, 12/01/38
- AMBAC Insured (Alternative Minimum Tax)
3,280 Clark County, Nevada, Subordinate Lien Airport Revenue Bonds, 7/14 at 100.00 Aa3 3,387,584
Series 2004A-2, 5.125%, 7/01/24 - FGIC Insured
Director of Nevada State Department of Business and Industry,
Revenue Bonds, Las Vegas Monorail Project, First Tier,
Series 2000:
5,055 0.000%, 1/01/27 - AMBAC Insured No Opt. Call Caa2 327,261
5,500 5.625%, 1/01/32 - AMBAC Insured 1/10 at 102.00 Caa2 1,127,555
------------------------------------------------------------------------------------------------------------------------------------
18,835 Total Nevada 9,787,550
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 4.6% (3.0% OF TOTAL INVESTMENTS)
Essex County Improvement Authority, New Jersey, Guaranteed
Revenue Bonds, Project Consolidation, Series 2004:
1,275 5.125%, 10/01/21 - NPFG Insured 10/14 at 100.00 A1 1,339,426
2,250 5.125%, 10/01/22 - NPFG Insured 10/14 at 100.00 A1 2,353,253
1,560 Mount Olive Township Board of Education, Morris County, New 1/15 at 100.00 Aa2 1,637,688
Jersey, General Obligation Bonds, Series 2004, 5.000%,
1/15/22 - NPFG Insured
New Jersey Economic Development Authority, Revenue Bonds,
Motor Vehicle Surcharge, Series 2004A:
1,475 5.000%, 7/01/22 - NPFG Insured 7/14 at 100.00 A 1,510,031
1,475 5.000%, 7/01/23 - NPFG Insured 7/14 at 100.00 A 1,508,778
3,075 New Jersey Transit Corporation, Certificates of Participation No Opt. Call AAA 3,494,369
Refunding, Series 2003, 5.500%, 10/01/15 - FSA Insured
New Jersey Transportation Trust Fund Authority,
Transportation System Bonds, Series 2006C:
25,000 0.000%, 12/15/35 - AMBAC Insured No Opt. Call AA- 4,927,500
10,000 0.000%, 12/15/36 - AMBAC Insured No Opt. Call AA- 1,847,400
3,315 New Jersey Turnpike Authority, Revenue Bonds, Series 2005A, 1/15 at 100.00 AAA 3,490,397
5.000%, 1/01/25 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
49,425 Total New Jersey 22,108,842
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.9% (0.6% OF TOTAL INVESTMENTS)
New Mexico Finance Authority, Public Project Revolving Fund
Revenue Bonds, Series 2004C:
1,415 5.000%, 6/01/22 - AMBAC Insured 6/14 at 100.00 AA+ 1,478,222
1,050 5.000%, 6/01/24 - AMBAC Insured 6/14 at 100.00 AA+ 1,089,197
2,000 New Mexico Finance Authority, Public Project Revolving Fund 6/15 at 100.00 Aa3 2,070,200
Revenue Bonds, Series 2005E, 5.000%, 6/15/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
4,465 Total New Mexico 4,637,619
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 9.4% (6.1% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,143,240
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
1,000 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,050,160
Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/24 -
AMBAC Insured
4,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 3,419,379
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
Long Island Power Authority, New York, Electric System
General Revenue Bonds, Series 2006A:
10,675 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 A 11,062,076
5,000 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 A 5,138,050
2,700 Long Island Power Authority, New York, Electric System 11/16 at 100.00 A 2,440,557
Revenue Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
1,755 Nassau County, New York, General Obligation Improvement 3/10 at 100.00 AAA 1,787,590
Bonds, Series 2000E, 6.000%, 3/01/16 (Pre-refunded
3/01/10) - FSA Insured
5,000 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 5,249,400
Series 2004E, 5.000%, 11/01/21 - FSA Insured
1,540 New York Convention Center Development Corporation, Hotel 11/15 at 100.00 AAA 1,684,883
Unit Fee Revenue Bonds, Series 2005, Trust 2364, 16.993%,
11/15/44 - AMBAC Insured (IF)
8,495 New York State Housing Finance Agency, Mortgage Revenue 11/09 at 100.00 AAA 8,504,769
Refunding Bonds, Housing Project, Series 1996A, 6.125%,
11/01/20 - FSA Insured
3,770 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,937,954
Series 2005G, 5.000%, 1/01/25 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
45,110 Total New York 45,418,058
------------------------------------------------------------------------------------------------------------------------------------
64 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 1.9% (1.2% OF TOTAL INVESTMENTS)
$ 1,250 Appalachian State University, North Carolina, Revenue Bonds, 7/15 at 100.00 A1 $ 1,271,000
Series 2005, 5.000%, 7/15/30 - NPFG Insured
Mooresville, North Carolina, Enterprise System Revenue Bonds,
Series 2004:
2,225 5.000%, 5/01/23 - FGIC Insured 5/14 at 100.00 A 2,294,576
2,335 5.000%, 5/01/24 - FGIC Insured 5/14 at 100.00 A 2,401,267
2,900 Raleigh Durham Airport Authority, North Carolina, Airport 5/15 at 100.00 Aa3 3,029,891
Revenue Bonds, Series 2005A, 5.000%, 5/01/21 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
8,710 Total North Carolina 8,996,734
------------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA - 3.9% (2.5% OF TOTAL INVESTMENTS)
10,715 Fargo, North Dakota, Health System Revenue Bonds, MeritCare 6/10 at 101.00 AAA 10,888,690
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 8,033,680
5.850%, 12/01/25 - AMBAC Insured (Alternative Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
18,715 Total North Dakota 18,922,370
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 1.6% (1.0% OF TOTAL INVESTMENTS)
7,825 Hamilton County, Ohio, Sales Tax Bonds, Subordinate Lien, 12/16 at 100.00 A2 7,079,982
Series 2006, 4.250%, 12/01/32 - AMBAC Insured
700 Shaker Heights, Ohio, General Obligation Bonds, Series 2003, 12/13 at 100.00 AA+ 744,051
5.250%, 12/01/26 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
8,525 Total Ohio 7,824,033
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 1,545,390
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 3.3% (2.1% OF TOTAL INVESTMENTS)
1,520 Portland Housing Authority, Oregon, Multifamily Housing 7/10 at 100.00 Baa1 1,527,266
Revenue Bonds, Lovejoy Station Apartments, Series 2000,
6.000%, 7/01/33 - NPFG Insured (Alternative Minimum Tax)
Portland, Oregon, Airport Way Urban Renewal and Redevelopment
Bonds, Series 2000A:
4,405 5.700%, 6/15/17 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 4,597,631
3,665 5.750%, 6/15/18 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 3,826,407
4,265 5.750%, 6/15/19 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 4,452,831
1,375 5.750%, 6/15/20 (Pre-refunded 6/15/10) - AMBAC Insured 6/10 at 101.00 Aa3 (4) 1,435,555
------------------------------------------------------------------------------------------------------------------------------------
15,230 Total Oregon 15,839,690
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 10.6% (6.9% OF TOTAL INVESTMENTS)
12,620 Allegheny County Hospital Development Authority, 11/10 at 102.00 AAA 13,676,294
Pennsylvania, Insured Revenue Bonds, West Penn Allegheny
Health System, Series 2000A, 6.500%, 11/15/30
(Pre-refunded 11/15/10) - NPFG Insured
2,000 Allegheny County Sanitary Authority, Pennsylvania, Sewerage 12/15 at 100.00 A 2,058,000
Revenue Bonds, Series 2005A, 5.000%, 12/01/23 - NPFG
Insured
4,235 Delaware County Authority, Pennsylvania, Revenue Bonds, 8/16 at 100.00 A1 4,359,340
Villanova University, Series 2006, 5.000%, 8/01/24 - AMBAC
Insured
5,315 Pennsylvania Higher Educational Facilities Authority, Revenue 5/15 at 100.00 A+ 5,419,918
Bonds, Drexel University, Series 2005A, 5.000%, 5/01/28 -
NPFG Insured
4,585 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 4,241,538
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General
Ordinance, Fifth Series 2004A-1:
5,235 5.000%, 9/01/24 - FSA Insured 9/14 at 100.00 AAA 5,393,149
3,000 5.000%, 9/01/25 - FSA Insured 9/14 at 100.00 AAA 3,080,100
2,360 Philadelphia, Pennsylvania, Water and Wastewater Revenue 1/10 at 100.00 AAA 2,433,632
Bonds, Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
3,785 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 3,967,702
Obligation Bonds, Series 2005, 5.000%, 1/15/25 - FSA
Insured (UB)
Nuveen Investments 65
NPX | Nuveen Insured Premium Income Municipal Fund 2 (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA (continued)
$ 1,455 Solebury Township, Pennsylvania, General Obligation Bonds, 6/15 at 100.00 Aa3 $ 1,523,851
Series 2005, 5.000%, 12/15/25 - AMBAC Insured
3,650 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 4,108,659
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/29 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
49,290 Total Pennsylvania 51,331,587
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,500 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 A 2,521,300
Series 2005RR, 5.000%, 7/01/22 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,955 Greenville County School District, South Carolina, 12/16 at 100.00 AAA 2,038,967
Installment Purchase Revenue Bonds, Series 2006, 5.000%,
12/01/28 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 18.5% (12.0% OF TOTAL INVESTMENTS)
Brazos River Authority, Texas, Revenue Refunding Bonds,
Houston Industries Inc., Series 1998C:
10,000 5.125%, 5/01/19 - AMBAC Insured 11/09 at 101.00 BBB+ 10,012,000
9,000 5.125%, 11/01/20 - AMBAC Insured 11/09 at 101.00 BBB+ 8,960,310
Corpus Christi, Texas, Utility System Revenue Bonds, Series
2004:
3,475 5.000%, 7/15/22 - FSA Insured (UB) 7/14 at 100.00 AAA 3,642,043
3,645 5.000%, 7/15/23 - FSA Insured (UB) 7/14 at 100.00 AAA 3,803,630
10,000 Dallas, Texas, Waterworks and Sewer System Revenue Bonds, 10/17 at 100.00 AAA 9,439,300
Series 2007, 4.375%, 10/01/32 - AMBAC Insured (UB)
12,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/09 at 100.00 A+ 12,500,125
Refunding and Improvement Bonds, Series 2001A, 5.500%,
11/01/35 - FGIC Insured (Alternative Minimum Tax)
5,000 Harris County Hospital District, Texas, Revenue Bonds, Series 2/17 at 100.00 A1 4,682,350
2007A, 5.250%, 2/15/42 - NPFG Insured
4,485 Lower Colorado River Authority, Texas, Contract Revenue 5/12 at 100.00 AAA 4,603,628
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 A 10,012,600
Refunding Bonds, Transmission Services Corporation,
Series 2003C, 5.000%, 5/15/33 - AMBAC Insured
4,151 Panhandle Regional Housing Finance Corporation, Texas, GNMA 7/12 at 105.00 Aaa 4,341,904
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 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 7,165,219
1,170 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 1,246,588
6,330 5.750%, 12/01/24 (Pre-refunded 12/01/10) - FSA Insured 12/10 at 101.00 AAA 6,744,362
2,300 Texas State University System, Financing Revenue Refunding 3/12 at 100.00 AAA 2,463,323
Bonds, Series 2002, 5.000%, 3/15/18 - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
88,781 Total Texas 89,617,382
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 2.4% (1.5% OF TOTAL INVESTMENTS)
8,600 Intermountain Power Agency, Utah, Power Supply Revenue 7/13 at 100.00 AAA 9,305,114
Refunding Bonds, Series 2003A, 5.000%, 7/01/18 - FSA
Insured (UB)
2,385 Mountain Regional Water Special Service District, Utah, Water 12/13 at 100.00 A+ 2,199,686
Revenue Bonds, Series 2003, 5.000%, 12/15/33 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
10,985 Total Utah 11,504,800
------------------------------------------------------------------------------------------------------------------------------------
VERMONT - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,320 Vermont Educational and Health Buildings Financing Agency, 12/10 at 101.00 Baa1 1,325,042
Revenue Bonds, Fletcher Allen Health Care Inc., Series
2000A, 6.000%, 12/01/23 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 2.7% (1.7% OF TOTAL INVESTMENTS)
Greater Richmond Convention Center Authority, Virginia, Hotel
Tax Revenue Bonds, Series 2005:
5,880 5.000%, 6/15/20 - NPFG Insured 6/15 at 100.00 A 6,109,614
5,000 5.000%, 6/15/22 - NPFG Insured 6/15 at 100.00 A 5,141,050
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 1,249,372
500 5.250%, 12/15/23 - FSA Insured 6/14 at 100.00 AAA 541,175
------------------------------------------------------------------------------------------------------------------------------------
12,530 Total Virginia 13,041,211
------------------------------------------------------------------------------------------------------------------------------------
66 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 7.5% (4.8% OF TOTAL INVESTMENTS)
$ 10,000 Chelan County Public Utility District 1, Washington, Hydro 7/11 at 101.00 AA $ 10,001,600
Consolidated System Revenue Bonds, Series 2001B, 5.600%,
1/01/36 - NPFG Insured (Alternative Minimum Tax)
1,370 Clark County School District 101, La Center, Washington, 12/12 at 100.00 Aa1 1,442,542
General Obligation Bonds, Series 2002, 5.000%, 12/01/22 -
FSA Insured
5,230 Douglas County Public Utility District 1, Washington, 3/10 at 102.00 AA 5,294,068
Revenue Bonds, Wells Hydroelectric, Series 1999A, 6.125%,
9/01/29 - NPFG Insured (Alternative Minimum Tax)
1,545 Tacoma, Washington, General Obligation Bonds, Series 2004, 12/14 at 100.00 AA 1,654,077
5.000%, 12/01/19 - NPFG Insured
3,950 Washington State Healthcare Facilities Authority, Revenue 11/09 at 100.50 A2 3,933,173
Bonds, Swedish Health Services, Series 1998, 5.125%,
11/15/22 - AMBAC Insured
6,200 Washington State, General Obligation Purpose Bonds, Series 7/12 at 100.00 AA+ 6,684,344
2003A, 5.000%, 7/01/20 - FGIC Insured
10,855 Washington, General Obligation Bonds, Series 2000S-5, No Opt. Call AA+ 7,227,368
0.000%, 1/01/20 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
39,150 Total Washington 36,237,172
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
8,000 Pleasants County, West Virginia, Pollution Control Revenue 11/09 at 100.00 BBB- 8,006,720
Bonds, Monongahela Power Company Pleasants Station
Project, Series 1995C, 6.150%, 5/01/15 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 6.2% (4.0% OF TOTAL INVESTMENTS)
7,000 La Crosse, Wisconsin, Resource Recovery Revenue Refunding No Opt. Call Aaa 7,490,210
Bonds, Northern States Power Company Project, Series
1996, 6.000%, 11/01/21 - NPFG Insured (Alternative
Minimum Tax)
12,750 Milwaukee County, Wisconsin, Airport Revenue Bonds, Series 12/10 at 100.00 A1 12,845,243
2000A, 5.750%, 12/01/25 - FGIC Insured (Alternative
Minimum Tax)
5,615 Wisconsin Health and Educational Facilities Authority, 2/10 at 100.00 A 5,617,920
Revenue Bonds, Sinai Samaritan Medical Center Inc.,
Series 1996, 5.750%, 8/15/16 - NPFG Insured
3,800 Wisconsin State, General Obligation Bonds, Series 2006A, 5/16 at 100.00 AA 3,939,080
4.750%, 5/01/25 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
29,165 Total Wisconsin 29,892,453
------------------------------------------------------------------------------------------------------------------------------------
$ 856,716 Total Investments (cost $748,775,936) - 154.7% 748,810,257
===============---------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (12.0)% (57,980,000)
------------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred Shares, at Liquidation Value (219,000,000)
- (45.2)% (5)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 12,238,481
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 484,068,738
==================================================================================================================
Primarily all of the Fund's net assets are invested in municipal
securities that guarantee the timely payment of principal and interest.
See Notes to Financial Statements, Footnote 1 - Insurance, for more
information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Variable Rate Demand Preferred Shares, at Liquidation Value as a
percentage of Total Investments is 29.2%.
N/R Not rated.
WI/DD Purchased on a when-issued or delayed delivery basis.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 67
NVG | Nuveen Insured Dividend Advantage Municipal Fund
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL BONDS - 148.9% (99.8% OF TOTAL INVESTMENTS)
ALABAMA - 2.0% (1.3% OF TOTAL INVESTMENTS)
$ 5,310 Athens, Alabama, Water and Sewerage Revenue Warrants, Series 5/12 at 101.00 A+ $ 5,394,641
2002, 5.300%, 5/01/32 - NPFG Insured
3,045 Hoover, Alabama, General Obligation Bonds, Series 2003, 3/12 at 101.00 AA+ 3,271,304
5.000%, 3/01/20 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
8,355 Total Alabama 8,665,945
------------------------------------------------------------------------------------------------------------------------------------
ALASKA - 3.8% (2.5% OF TOTAL INVESTMENTS)
15,000 Alaska, International Airport System Revenue Bonds, Series 10/12 at 100.00 Aa3 (4) 16,726,050
2002B, 5.250%, 10/01/27 (Pre-refunded 10/01/12) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 2.3% (1.5% OF TOTAL INVESTMENTS)
5,000 Phoenix, Arizona, Civic Improvement Corporation, Senior Lien 7/12 at 100.00 AA- 4,979,900
Airport Revenue Bonds, Series 2002B, 5.250%, 7/01/32 -
FGIC Insured (Alternative Minimum Tax)
6,000 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 4,989,540
Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Arizona 9,969,440
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 15.5% (10.3% OF TOTAL INVESTMENTS)
2,000 Alameda Corridor Transportation Authority, California, No Opt. Call A- 1,022,440
Subordinate Lien Revenue Bonds, Series 2004A, 0.000%,
10/01/20 - AMBAC Insured
6,160 Alhambra Unified School District, Los Angeles County, No Opt. Call AAA 1,788,063
California, General Obligation Bonds, Capital Appreciation
Series 2009B, 0.000%, 8/01/30 - AGC Insured
California Educational Facilities Authority, Revenue Bonds,
Occidental College, Series 2005A:
1,485 5.000%, 10/01/26 - NPFG Insured 10/15 at 100.00 Aa3 1,525,481
1,565 5.000%, 10/01/27 - NPFG Insured 10/15 at 100.00 Aa3 1,601,950
190 California, General Obligation Bonds, Series 2000, 5.250%, 9/10 at 100.00 A (4) 197,560
9/01/17 (Pre-refunded 9/01/10) - NPFG Insured
8,890 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 8,896,401
1997BH, 5.400%, 12/01/14 (Alternative Minimum Tax)
3,000 California, General Obligation Veterans Welfare Bonds, Series 12/09 at 100.00 AA- 2,943,660
2001BZ, 5.375%, 12/01/24 - NPFG Insured (Alternative
Minimum Tax)
2,425 Fullerton Public Financing Authority, California, Tax 9/15 at 100.00 A- 2,288,133
Allocation Revenue Bonds, Series 2005, 5.000%, 9/01/27 -
AMBAC Insured
Golden State Tobacco Securitization Corporation, California,
Enhanced Tobacco Settlement Asset-Backed Bonds, Series 2007A-1:
1,000 5.750%, 6/01/47 6/17 at 100.00 BBB 738,880
365 5.125%, 6/01/47 6/17 at 100.00 BBB 242,502
18,665 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 16,594,865
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/35 - FGIC Insured
1,990 Kern Community College District, California, General No Opt. Call AAA 775,065
Obligation Bonds, Series 2006, 0.000%, 11/01/25 - FSA
Insured
7,935 Los Angeles, California, Certificates of Participation, 4/12 at 100.00 AA- 7,947,141
Series 2002, 5.300%, 4/01/32 - AMBAC Insured
2,220 Northern California Power Agency, Revenue Refunding Bonds, 7/10 at 100.00 A2 2,221,709
Hydroelectric Project 1, Series 1998A, 5.200%, 7/01/32 -
NPFG Insured
Oceanside Unified School District, San Diego County,
California, General Obligation Bonds, Series 2008A and 2008B:
5,905 0.000%, 8/01/26 - AGC Insured No Opt. Call AAA 2,251,163
2,220 0.000%, 8/01/28 - AGC Insured No Opt. Call AAA 743,389
2,600 Palomar Pomerado Health, California, General Obligation 8/29 at 100.00 AAA 1,633,580
Bonds, Series 2009A, 0.000%, 8/01/38 - AGC Insured
2,320 Sacramento Municipal Utility District, California, Electric 8/11 at 100.00 AAA 2,394,356
Revenue Bonds, Series 2001P, 5.250%, 8/15/18 - FSA Insured
68 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA (continued)
San Francisco Unified School District, California, General
Obligation Bonds, Series 2007A:
$ 1,000 3.000%, 6/15/25 - FSA Insured 6/17 at 100.00 AAA $ 836,940
1,180 3.000%, 6/15/26 - FSA Insured 6/17 at 100.00 AAA 974,326
6,720 San Jose Redevelopment Agency, California, Tax Allocation 8/17 at 100.00 A 5,346,365
Bonds, Merged Area Redevelopment Project, Series 2006C,
4.250%, 8/01/30 - NPFG Insured
4,275 Sequoia Union High School District, San Mateo County, 7/14 at 102.00 Aa2 3,424,361
California, General Obligation Bonds, Series 2006, 3.500%,
7/01/29 - FSA Insured
1,690 Ventura County Community College District, California, 8/15 at 100.00 AA 1,749,623
General Obligation Bonds, Series 2005B, 5.000%, 8/01/28 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
85,800 Total California 68,137,953
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 5.5% (3.7% OF TOTAL INVESTMENTS)
17,300 Adams County, Colorado, FHA-Insured Mortgage Revenue Bonds, 8/15 at 100.00 A 17,436,324
Platte Valley Medical Center, Series 2005, 5.000%, 8/01/24
- NPFG Insured
750 Arkansas River Power Authority, Colorado, Power Revenue 10/16 at 100.00 BBB 697,125
Bonds, Series 2006, 5.250%, 10/01/32 - SYNCORA GTY Insured
17,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 6,107,420
Bonds, Series 2000B, 0.000%, 9/01/25 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
35,050 Total Colorado 24,240,869
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 1.6% (1.1% OF TOTAL INVESTMENTS)
6,805 District of Columbia, Revenue Bonds, Georgetown University, 4/17 at 100.00 A- 6,107,147
Series 2007A, 4.500%, 4/01/42 - AMBAC Insured
935 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 868,045
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,740 Total District of Columbia 6,975,192
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 11.7% (7.8% OF TOTAL INVESTMENTS)
Florida Municipal Loan Council, Revenue Bonds, Series 2003B:
2,305 5.250%, 12/01/17 - NPFG Insured 12/13 at 100.00 A 2,409,878
1,480 5.250%, 12/01/18 - NPFG Insured 12/13 at 100.00 A 1,537,113
11,600 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 11,675,980
Facilities Revenue Bonds, Series 2002B, 5.125%, 10/01/21 -
FSA Insured (Alternative Minimum Tax)
8,155 Lee County, Florida, Solid Waste System Revenue Refunding 10/11 at 100.00 A3 8,536,736
Bonds, Series 2001, 5.625%, 10/01/13 - NPFG Insured
(Alternative Minimum Tax)
Miami-Dade County, Florida, Aviation Revenue Bonds, Miami
International Airport, Series 2002:
7,165 5.625%, 10/01/15 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 7,528,910
5,600 5.750%, 10/01/16 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 5,853,176
10,000 5.125%, 10/01/21 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 10,089,300
2,000 5.250%, 10/01/22 - FGIC Insured (Alternative Minimum Tax) 10/12 at 100.00 A 2,019,560
1,000 South Miami Health Facilities Authority, Florida, Hospital 8/17 at 100.00 AA- 938,750
Revenue, Baptist Health System Obligation Group, Series
2007, 5.000%, 8/15/42 (UB)
1,000 Tallahassee, Florida, Energy System Revenue Bonds, Series 10/15 at 100.00 AA- 1,017,370
2005, 5.000%, 10/01/28 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
50,305 Total Florida 51,606,773
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.2% (1.5% OF TOTAL INVESTMENTS)
6,925 Atlanta and Fulton County Recreation Authority, Georgia, 12/15 at 100.00 A1 7,129,565
Guaranteed Revenue Bonds, Park Improvement, Series 2005A,
5.000%, 12/01/30 - NPFG Insured
1,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/14 at 100.00 AAA 1,022,620
2004, 5.000%, 11/01/22 - FSA Insured
1,695 Georgia Housing and Finance Authority, Single Family Mortgage 12/11 at 100.00 AAA 1,704,848
Bonds, Series 2002B-2, 5.500%, 6/01/32 (Alternative
Minimum Tax)
------------------------------------------------------------------------------------------------------------------------------------
9,620 Total Georgia 9,857,033
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 69
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
IDAHO - 1.0% (0.7% OF TOTAL INVESTMENTS)
Idaho Housing and Finance Association, Grant and Revenue
Anticipation Bonds, Federal Highway Trust Funds, Series
2006:
$ 3,000 5.000%, 7/15/23 - NPFG Insured 7/16 at 100.00 Aa3 $ 3,186,420
1,130 5.000%, 7/15/24 - NPFG Insured 7/16 at 100.00 Aa3 1,195,099
------------------------------------------------------------------------------------------------------------------------------------
4,130 Total Idaho 4,381,519
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 11.1% (7.4% OF TOTAL INVESTMENTS)
10,000 Bolingbrook, Illinois, General Obligation Bonds, Series 2002A, 1/12 at 100.00 A2 (4) 10,946,700
5.375%, 1/01/38 (Pre-refunded 1/01/12) - FGIC Insured
1,305 Chicago, Illinois, General Obligation Bonds, Series 2001A, 1/11 at 101.00 AA 1,346,355
5.500%, 1/01/38 - NPFG Insured
Chicago, Illinois, General Obligation Bonds, Series 2001A:
50 5.500%, 1/01/38 (Pre-refunded 1/01/11) - NPFG Insured 1/11 at 101.00 AA- (4) 53,375
3,645 5.500%, 1/01/38 (Pre-refunded 1/01/11) - NPFG Insured 1/11 at 101.00 AA- (4) 3,889,652
Chicago, Illinois, Second Lien Passenger Facility Charge
Revenue Bonds, O'Hare International Airport, Series 2001C:
4,250 5.500%, 1/01/16 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,350,173
4,485 5.500%, 1/01/17 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,581,428
4,730 5.500%, 1/01/18 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 4,816,606
2,930 5.500%, 1/01/19 - AMBAC Insured (Alternative Minimum Tax) 1/11 at 101.00 A1 2,976,382
3,600 Chicago, Illinois, Third Lien General Airport Revenue Bonds, 1/16 at 100.00 A1 3,763,548
O'Hare International Airport, Series 2005A, 5.250%, 1/01/24
- NPFG Insured
3,000 Chicago, Illinois, Third Lien General Airport Revenue 1/12 at 100.00 A1 3,080,850
Refunding Bonds, O'Hare International Airport, Series
2002A, 5.750%, 1/01/17 - NPFG Insured (Alternative Minimum
Tax)
4,000 Cicero, Cook County, Illinois, General Obligation Corporate 12/12 at 101.00 A 4,008,040
Purpose Bonds, Series 2002, 5.000%, 12/01/21 - NPFG Insured
480 DuPage County Community School District 200, Wheaton, 10/13 at 100.00 Aa3 526,723
Illinois, General Obligation Bonds, Series 2003C, 5.250%,
10/01/22 - FSA Insured
DuPage County Community School District 200, Wheaton,
Illinois, General Obligation Bonds, Series 2003C:
770 5.250%, 10/01/22 (Pre-refunded 10/01/13) - FSA Insured 10/13 at 100.00 Aa3 (4) 874,312
250 5.250%, 10/01/22 (Pre-refunded 10/01/13) - FSA Insured 10/13 at 100.00 Aa3 (4) 283,868
3,500 Illinois Municipal Electric Agency, Power Supply System 2/17 at 100.00 A+ 3,518,760
Revenue Bonds, Series 2007A, 5.000%, 2/01/35 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
46,995 Total Illinois 49,016,772
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 15.6% (10.5% OF TOTAL INVESTMENTS)
3,380 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 A3 3,411,333
Series 2003A, 5.000%, 7/01/20 - AMBAC Insured
Indiana Bond Bank, Special Program Bonds, Hendricks County
Redevelopment District, Series 2002D:
5,075 5.250%, 4/01/26 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AA (4) 5,591,178
7,000 5.250%, 4/01/30 (Pre-refunded 4/01/12) - AMBAC Insured 4/12 at 100.00 AA (4) 7,711,970
10,000 Indiana Health Facility Financing Authority, Hospital Revenue 7/12 at 100.00 A+ 9,728,000
Bonds, Marion General Hospital, Series 2002, 5.250%,
7/01/32 - AMBAC Insured
3,200 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 3,179,488
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
4,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 1/19 at 100.00 AAA 4,288,240
Waterworks Project Series 2009A, 5.500%, 1/01/38 - AGC
Insured
25,000 Indianapolis Local Public Improvement Bond Bank, Indiana, 7/12 at 100.00 AAA 27,774,000
Waterworks Project, Series 2002A, 5.250%, 7/01/33
(Pre-refunded 7/01/12) - NPFG Insured
6,960 Valparaiso Middle School Building Corporation, Indiana, First 1/13 at 100.00 AA+ 7,299,091
Mortgage Refunding Bonds, Series 2002, 5.000%, 7/15/24 -
NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
64,615 Total Indiana 68,983,300
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,415 Kentucky State Property and Buildings Commission, Revenue 2/19 at 100.00 AAA 2,698,666
Bonds, Project 93, Refunding Series 2009, 5.250%, 2/01/20 -
AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
70 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 2.9% (2.0% OF TOTAL INVESTMENTS)
$ 1,325 Louisiana Public Facilities Authority, Revenue Bonds, Baton 7/14 at 100.00 A $ 1,347,366
Rouge General Hospital, Series 2004, 5.250%, 7/01/24 - NPFG
Insured
Louisiana State, Gasoline and Fuels Tax Revenue Bonds, Series
2006A:
770 4.750%, 5/01/39 - FSA Insured (UB) 5/16 at 100.00 AAA 756,795
8,270 4.500%, 5/01/41 - FGIC Insured (UB) 5/16 at 100.00 AA 7,754,366
3 Louisiana State, Gasoline Tax Revenue Bonds, Series 2006, 5/16 at 100.00 AA 2,504
Residuals 660-3, 16.460%, 5/01/41 - FGIC Insured (IF)
3,085 New Orleans, Louisiana, General Obligation Refunding Bonds, 9/12 at 100.00 A 3,125,198
Series 2002, 5.125%, 9/01/21 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
13,453 Total Louisiana 12,986,229
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.6% (0.4% OF TOTAL INVESTMENTS)
2,775 Massachusetts Water Resources Authority, General Revenue 2/17 at 100.00 AAA 2,564,794
Bonds, Series 2007A, 4.500%, 8/01/46 - FSA Insured (UB)
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,500 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 1,497,945
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
------------------------------------------------------------------------------------------------------------------------------------
MINNESOTA - 0.5% (0.3% OF TOTAL INVESTMENTS)
2,000 Northern Municipal Power Agency, Minnesota, Electric System No Opt. Call AAA 2,200,200
Revenue Bonds, Refunding Series 2009A, 5.000%, 1/01/15 -
AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,600 St. Louis County Pattonville School District R3, Missouri, 3/14 at 100.00 AAA 1,785,904
General Obligation Bonds, Series 2004, 5.250%, 3/01/19 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 2.0% (1.3% OF TOTAL INVESTMENTS)
6,360 Lincoln, Nebraska, Electric System Revenue Bonds, Series 2005, 9/15 at 100.00 AA 6,501,574
5.000%, 9/01/32
Municipal Energy Agency of Nebraska, Power Supply System
Revenue Bonds, Series 2003A:
1,000 5.250%, 4/01/20 - FSA Insured 4/13 at 100.00 AAA 1,080,360
1,000 5.250%, 4/01/21 - FSA Insured 4/13 at 100.00 AAA 1,049,130
------------------------------------------------------------------------------------------------------------------------------------
8,360 Total Nebraska 8,631,064
------------------------------------------------------------------------------------------------------------------------------------
NEW JERSEY - 0.5% (0.4% OF TOTAL INVESTMENTS)
2,150 New Jersey Transportation Trust Fund Authority, Transportation No Opt. Call AA- 2,391,983
System Bonds, Series 2006A, 5.250%, 12/15/20
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 5.8% (3.9% OF TOTAL INVESTMENTS)
1,120 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 A 1,143,240
Mortgage Revenue Bonds, Montefiore Hospital, Series 2004,
5.000%, 8/01/23 - FGIC Insured
3,660 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AA- 3,767,641
Mental Health Services Facilities Improvements, Series
2005B, 5.000%, 2/15/23 - AMBAC Insured
3,335 Dormitory Authority of the State of New York, State Personal 2/19 at 100.00 AAA 3,603,628
Income Tax Revenue Bonds, Tender Option Bond Trust 3518,
13.221%, 2/15/39 (IF)
3,130 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 2,639,373
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
2,400 Long Island Power Authority, New York, Electric System Revenue 11/16 at 100.00 A 2,169,384
Bonds, Series 2006F, 4.250%, 5/01/33 - NPFG Insured
480 Metropolitan Transportation Authority, New York, 11/15 at 100.00 A 486,480
Transportation Revenue Bonds, Series 2005B, 5.000%,
11/15/30 - AMBAC Insured
10,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 10,072,600
Transportation Revenue Refunding Bonds, Series 2002A,
5.000%, 11/15/30 - FSA Insured
1,435 New York City Industrial Development Agency, New York, Revenue 3/19 at 100.00 AAA 1,709,659
Bonds, Yankee Stadium Project Pilot, Series 2009A, 7.000%,
3/01/49 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
25,560 Total New York 25,592,005
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 71
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 0.6% (0.4% OF TOTAL INVESTMENTS)
$ 2,125 North Carolina Medical Care Commission, FHA-Insured Mortgage 10/13 at 100.00 AAA $ 2,166,565
Revenue Bonds, Betsy Johnson Regional Hospital Project,
Series 2003, 5.375%, 10/01/24 - FSA Insured
540 Oak Island, North Carolina, Enterprise System Revenue Bonds, 6/19 at 100.00 AAA 580,700
Series 2009A, 6.000%, 6/01/34 - AGC Insured
------------------------------------------------------------------------------------------------------------------------------------
2,665 Total North Carolina 2,747,265
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.6% (0.4% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien, Series
2007A-2:
65 5.125%, 6/01/24 6/17 at 100.00 BBB 57,893
710 5.875%, 6/01/30 6/17 at 100.00 BBB 617,963
685 5.750%, 6/01/34 6/17 at 100.00 BBB 576,051
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,163,244
------------------------------------------------------------------------------------------------------------------------------------
3,030 Total Ohio 2,415,151
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.4% (0.3% OF TOTAL INVESTMENTS)
2,000 Oklahoma Development Finance Authority, Revenue Bonds, Saint 2/17 at 100.00 A 1,916,580
John Health System, Series 2007, 5.000%, 2/15/37
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 1.9% (1.3% OF TOTAL INVESTMENTS)
3,000 Oregon State Department of Transportation, Highway User Tax 5/19 at 100.00 AAA 3,159,270
Revenue Bonds, Series 2009A, 5.000%, 11/15/33
Oregon, General Obligation Veterans Welfare Bonds, Series 82:
3,580 5.375%, 12/01/31 12/11 at 100.00 AA 3,608,926
1,680 5.500%, 12/01/42 12/11 at 100.00 AA 1,697,035
------------------------------------------------------------------------------------------------------------------------------------
8,260 Total Oregon 8,465,231
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 4.4% (3.0% OF TOTAL INVESTMENTS)
4,500 Allegheny County, Pennsylvania, Airport Revenue Refunding No Opt. Call A 4,741,560
Bonds, Pittsburgh International Airport, Series 1997A,
5.750%, 1/01/13 - NPFG Insured (Alternative Minimum Tax)
4,130 Pennsylvania Public School Building Authority, Lease Revenue 12/16 at 100.00 AAA 3,820,621
Bonds, School District of Philadelphia, Series 2006B,
4.500%, 6/01/32 - FSA Insured (UB)
1,050 Pennsylvania Turnpike Commission, Turnpike Revenue Bonds, 6/16 at 100.00 Aa3 1,069,404
Series 2006A, 5.000%, 12/01/26 - AMBAC Insured
6,000 Pennsylvania Turnpike Commission, Turnpike Subordinate Revenue 6/26 at 100.00 AAA 4,369,680
Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured
2,000 Philadelphia Municipal Authority, Pennsylvania, Lease Revenue 11/13 at 100.00 AAA 2,163,640
Bonds, Series 2003B, 5.250%, 11/15/18 - FSA Insured
2,000 Reading School District, Berks County, Pennsylvania, General 1/16 at 100.00 AAA 2,167,980
Obligation Bonds, Series 2005, 5.000%, 1/15/19 - FSA
Insured (UB)
1,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 1,125,660
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/23 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
20,680 Total Pennsylvania 19,458,545
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.4% (0.3% OF TOTAL INVESTMENTS)
1,225 Puerto Rico Municipal Finance Agency, Series 2005C, 5.250%, No Opt. Call BBB- 1,218,630
8/01/21 - CIFG Insured
5,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax Revenue No Opt. Call AA- 725,100
Bonds, Series 2007A, 0.000%, 8/01/42 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
6,225 Total Puerto Rico 1,943,730
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 1.5% (1.0% OF TOTAL INVESTMENTS)
1,950 Greenville County School District, South Carolina, Installment 12/16 at 100.00 AAA 2,033,753
Purchase Revenue Bonds, Series 2006, 5.000%, 12/01/28 - FSA
Insured
Greenville, South Carolina, Tax Increment Revenue Improvement
Bonds, Series 2003:
1,000 5.500%, 4/01/17 - NPFG Insured 4/13 at 100.00 A 1,108,390
2,300 5.000%, 4/01/21 - NPFG Insured 4/13 at 100.00 A 2,404,029
1,000 Scago Educational Facilities Corporation, South Carolina, 10/15 at 100.00 AAA 1,062,670
Installment Purchase Revenue Bonds, Spartanburg County
School District 5, Series 2005, 5.000%, 4/01/21 - FSA
Insured
------------------------------------------------------------------------------------------------------------------------------------
6,250 Total South Carolina 6,608,842
------------------------------------------------------------------------------------------------------------------------------------
72 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
TENNESSEE - 10.1% (6.8% OF TOTAL INVESTMENTS)
Memphis, Tennessee, Sanitary Sewerage System Revenue Bonds,
Series 2004:
$ 1,495 5.000%, 10/01/19 - FSA Insured 10/14 at 100.00 AAA $ 1,622,299
1,455 5.000%, 10/01/20 - FSA Insured 10/14 at 100.00 AAA 1,572,680
1,955 5.000%, 10/01/21 - FSA Insured 10/14 at 100.00 AAA 2,105,105
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AA- (4) 11,190,400
Bonds, Memphis Arena, Series 2002A, 5.125%, 11/01/28
(Pre-refunded 11/01/12) - AMBAC Insured
10,000 Memphis-Shelby County Sports Authority, Tennessee, Revenue 11/12 at 100.00 AA- (4) 11,190,400
Bonds, Memphis Arena, Series 2002B, 5.125%, 11/01/29
(Pre-refunded 11/01/12) - AMBAC Insured
15,195 Tennessee State School Bond Authority, Higher Educational 5/12 at 100.00 AAA 16,780,142
Facilities Second Program Bonds, Series 2002A, 5.250%,
5/01/32 (Pre-refunded 5/01/12) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
40,100 Total Tennessee 44,461,026
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 23.2% (15.5% OF TOTAL INVESTMENTS)
3,500 Dallas-Ft. Worth International Airport, Texas, Joint Revenue 11/11 at 100.00 A+ 3,711,540
Refunding and Improvement Bonds, Series 2001A, 5.750%,
11/01/13 - FGIC Insured (Alternative Minimum Tax)
10,000 Gainesville Hospital District, Texas, Limited Tax General 8/11 at 100.00 A3 (4) 10,789,900
Obligation Bonds, Series 2002, 5.375%, 8/15/32
(Pre-refunded 8/15/11) - NPFG Insured
1,210 Galveston, Texas, General Obligation Bonds, Series 2001, 5/11 at 100.00 A 1,264,256
5.250%, 5/01/21 - AMBAC Insured
Harris County Health Facilities Development Corporation,
Texas, Thermal Utility Revenue Bonds, TECO Project, Series
2003:
2,240 5.000%, 11/15/16 - NPFG Insured 11/13 at 100.00 AA 2,348,013
2,355 5.000%, 11/15/17 - NPFG Insured 11/13 at 100.00 AA 2,445,432
4,080 Harris County, Texas, General Obligation Toll Road Revenue No Opt. Call AAA 5,758,063
Bonds, Series 2009, Trust 3418, 13.636%, 8/15/32 - FSA
Insured (IF)
13,000 Houston Area Water Corporation, Texas, Contract Revenue Bonds, 3/12 at 100.00 N/R (4) 14,167,010
Northeast Water Purification Plant, Series 2002, 5.125%,
3/01/32 (Pre-refunded 3/01/12) - FGIC Insured
1,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 1,051,550
Bonds, Series 2004A, 5.250%, 5/15/24 - FGIC Insured
4,345 San Antonio, Texas, Water System Senior Lien Revenue Refunding 5/12 at 100.00 AAA 4,744,088
Bonds, Series 2002, 5.500%, 5/15/17 - FSA Insured
5,475 Texas Department of Housing and Community Affairs, Residential 7/11 at 100.00 AAA 5,341,082
Mortgage Revenue Bonds, Series 2001A, 5.350%, 7/01/33
(Alternative Minimum Tax)
8,035 Texas Department of Housing and Community Affairs, Single 3/12 at 100.00 AAA 8,086,745
Family Mortgage Bonds, Series 2002B, 5.550%, 9/01/33 - NPFG
Insured (Alternative Minimum Tax)
Texas Public Finance Authority, Revenue Bonds, Texas Southern
University Financing System, Series 2002:
3,520 5.125%, 11/01/20 - NPFG Insured 5/12 at 100.00 Baa1 3,153,955
3,520 5.125%, 11/01/21 - NPFG Insured 5/12 at 100.00 Baa1 3,115,552
Texas Student Housing Authority, Revenue Bonds, Austin
Project, Senior Series 2001A:
9,400 5.375%, 1/01/23 - NPFG Insured 1/12 at 102.00 Baa1 6,352,896
11,665 5.500%, 1/01/33 - NPFG Insured 1/12 at 102.00 Baa1 6,961,322
5,000 Texas Water Development Board, Senior Lien State Revolving 1/10 at 100.00 AAA 5,044,550
Fund Revenue Bonds, Series 1999B, 5.250%, 7/15/17
9,145 Texas, General Obligation Bonds, Veterans Housing Assistance 6/12 at 100.00 AA+ 9,190,816
Program Fund II, Series 2002A-1, 5.250%, 12/01/22
(Alternative Minimum Tax) (UB)
Williamson County, Texas, General Obligation Bonds, Series
2002:
3,000 5.250%, 2/15/22 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 3,291,690
5,000 5.250%, 2/15/25 (Pre-refunded 2/15/12) - FSA Insured 2/12 at 100.00 AAA 5,486,150
------------------------------------------------------------------------------------------------------------------------------------
105,490 Total Texas 102,304,610
------------------------------------------------------------------------------------------------------------------------------------
UTAH - 1.2% (0.8% OF TOTAL INVESTMENTS)
4,865 Utah Transit Authority, Sales Tax Revenue Bonds, Series 2008, 6/18 at 100.00 AAA 5,344,300
Trust 1193, 13.270%, 6/15/36 - FSA Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 15.7% (10.5% OF TOTAL INVESTMENTS)
5,305 Energy Northwest, Washington Public Power, Nine Canyon Wind 7/16 at 100.00 A- 4,991,368
Project Revenue Bonds, Series 2006A, 4.500%, 7/01/30 -
AMBAC Insured
Nuveen Investments 73
NVG | Nuveen Insured Dividend Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON (continued)
$ 6,600 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 AAA $ 7,164,564
Columbia Generating Station - Nuclear Project 2, Series
2002B, 5.350%, 7/01/18 - FSA Insured
7,675 Energy Northwest, Washington, Electric Revenue Refunding Bonds, 7/12 at 100.00 Aaa 8,378,030
Nuclear Project 1, Series 2002A, 5.500%, 7/01/15 - NPFG
Insured
2,500 Port of Seattle, Washington, Revenue Refunding Bonds, Series 11/12 at 100.00 Aa2 2,665,250
2002D, 5.750%, 11/01/15 - FGIC Insured (Alternative Minimum
Tax)
2,200 Snohomish County School District 2, Everett, Washington, 12/13 at 100.00 AAA 2,459,160
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 Aa1 3,601,299
General Obligation Bonds, Yelm Community Schools, Series
2003, 5.250%, 12/01/16 - FSA Insured
10,000 University of Washington, General Revenue Bonds, Refunding 6/17 at 100.00 AA+ 10,234,000
Series 2007, 5.000%, 6/01/37 - AMBAC Insured (UB)
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 A2 2,186,400
4,325 5.125%, 6/01/22 - AMBAC Insured 6/12 at 100.00 A2 4,369,072
15,000 Washington State Healthcare Facilities Authority, Revenue 8/13 at 102.00 N/R 13,700,400
Bonds, Harrison Memorial Hospital, Series 1998, 5.000%,
8/15/28 - AMBAC Insured
3,335 Washington State, General Obligation Bonds, Series 2009, Trust 7/16 at 100.00 AAA 3,727,930
1212, 13.208%, 7/01/31 - FSA Insured (IF)
5,170 Whitman County School District 267, Pullman, Washington, 6/12 at 100.00 Aa1 5,539,964
General Obligation Bonds, Series 2002, 5.000%, 12/01/20 -
FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
67,365 Total Washington 69,017,437
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 3.0% (2.0% OF TOTAL INVESTMENTS)
11,950 Wisconsin, Transportation Revenue Refunding Bonds, Series 7/12 at 100.00 AA+ (4) 13,236,776
2002-1, 5.125%, 7/01/18 (Pre-refunded 7/01/12) - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
$ 677,303 Total Municipal Bonds (cost $638,144,425) 656,829,129
===============---------------------------------------------------------------------------------------------------------------------
74 Nuveen Investments
SHARES DESCRIPTION (1) VALUE
------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.3% (0.2% OF TOTAL INVESTMENTS)
8,134 BlackRock MuniHoldings Fund Inc. $ 119,244
13,600 BlackRock MuniEnhanced Fund Inc. 133,280
7,920 Dreyfus Strategic Municipal Fund 59,400
3,500 DWS Municipal Income Trust 39,725
9,668 Morgan Stanley Quality Municipal Income Trust 114,082
26,280 PIMCO Municipal Income Fund II 266,479
9,500 Van Kampen Advantage Municipal Income Fund II 107,160
28,980 Van Kampen Investment Grade Municipal Trust 392,679
===============---------------------------------------------------------------------------------------------------------------------
Total Investment Companies (cost $1,353,712) 1,232,049
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $639,498,137) - 149.2% 658,061,178
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (6.4)% (28,413,334)
------------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred Shares, at Liquidation Value - (24.5)% (5) (108,000,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.5% 11,509,645
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (20.8)% (5) (91,950,000)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 441,207,489
==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) MuniFund Term Preferred Shares and Auction Rate Preferred Shares, at
Liquidation Value as a percentage of Total Investments are 16.4% and
14.0%, respectively.
N/R Not rated.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
Nuveen Investments 75
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ALABAMA - 7.3% (4.9% OF TOTAL INVESTMENTS)
$ 1,000 Alabama Special Care Facilities Financing Authority, Revenue 11/16 at 100.00 AA $ 1,004,100
Bonds, Ascension Health, Series 2006C-2, 5.000%, 11/15/36
(UB)
5,655 Colbert County-Northwest Health Care Authority, Alabama, 6/13 at 101.00 Baa3 5,326,784
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 A (4) 3,493,142
Series 1998A, 5.400%, 6/01/22 (Pre-refunded 5/14/12) -
NPFG Insured
6,280 Jefferson County, Alabama, Sewer Revenue Capital Improvement 8/12 at 100.00 AAA 6,893,996
Warrants, Series 2002D, 5.000%, 2/01/32 (Pre-refunded
8/01/12) - FGIC Insured
1,750 Montgomery, Alabama, General Obligation Warrants, Series 5/12 at 101.00 AA 1,879,658
2003, 5.000%, 5/01/21 - AMBAC Insured
4,500 Sheffield, Alabama, Electric Revenue Bonds, Series 2003, 7/13 at 100.00 A2 4,715,190
5.500%, 7/01/29 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
22,285 Total Alabama 23,312,870
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA - 4.5% (3.1% OF TOTAL INVESTMENTS)
10,000 Maricopa County Pollution Control Corporation, Arizona, 11/12 at 100.00 Baa2 9,130,900
Revenue Bonds, Arizona Public Service Company - Palo Verde
Project, Series 2002A, 5.050%, 5/01/29 - AMBAC Insured
6,545 Phoenix, Arizona, Civic Improvement Revenue Bonds, Civic No Opt. Call AA 5,442,757
Plaza, Series 2005B, 0.000%, 7/01/37 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
16,545 Total Arizona 14,573,657
------------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA - 20.6% (13.9% OF TOTAL INVESTMENTS)
26,300 California State Public Works Board, Lease Revenue Bonds, 12/12 at 100.00 A- 24,518,701
Department of General Services, Capital East End Project,
Series 2002A, 5.000%, 12/01/27 - AMBAC Insured
250 California State, General Obligation Bonds, Series 2002, 4/12 at 100.00 Baa1 246,905
5.250%, 4/01/30 - SYNCORA GTY Insured
5 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 A 4,778
5.000%, 4/01/31 - AMBAC Insured
7,495 California State, General Obligation Bonds, Series 2004, 4/14 at 100.00 AAA 8,538,529
5.000%, 4/01/31 (Pre-refunded 4/01/14) - AMBAC Insured
2,910 Cathedral City Public Financing Authority, California, Tax 8/12 at 102.00 A 2,785,568
Allocation Bonds, Housing Set-Aside, Series 2002D, 5.000%,
8/01/26 - NPFG Insured
250 Golden State Tobacco Securitization Corporation, California, 6/17 at 100.00 BBB 166,098
Enhanced Tobacco Settlement Asset-Backed Bonds, Series
2007A-1, 5.125%, 6/01/47
8,000 Golden State Tobacco Securitization Corporation, California, 6/15 at 100.00 A- 7,112,720
Tobacco Settlement Asset-Backed Revenue Bonds, Series
2005A, 5.000%, 6/01/35 - FGIC Insured
2,500 Irvine Public Facilities and Infrastructure Authority, 9/13 at 100.00 N/R 2,358,975
California, Assessment Revenue Bonds, Series 2003C,
5.000%, 9/02/23 - AMBAC Insured
4,000 Montara Sanitation District, California, General Obligation 8/11 at 101.00 A+ 4,014,600
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 A- 1,154,442
1,255 5.250%, 6/01/21 - AMBAC Insured 6/13 at 101.00 A- 1,270,273
1,210 Redding Joint Powers Financing Authority, California, Lease 3/13 at 100.00 A 1,215,735
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 A+ 3,763,838
Revenue Bonds, Series 2003R, 5.000%, 8/15/28 - NPFG Insured
1,500 San Diego Community College District, California, General 5/13 at 100.00 AAA 1,533,810
Obligation Bonds, Series 2003A, 5.000%, 5/01/28 - FSA
Insured
1,055 Turlock Irrigation District, California, Certificates of 1/13 at 100.00 A 1,057,374
Participation, Series 2003A, 5.000%, 1/01/28 - NPFG Insured
6,300 University of California, Revenue Bonds, Multi-Purpose 5/13 at 100.00 AA 6,388,578
Projects, Series 2003A, 5.000%, 5/15/33 - AMBAC Insured
(UB)
------------------------------------------------------------------------------------------------------------------------------------
67,910 Total California 66,130,924
------------------------------------------------------------------------------------------------------------------------------------
76 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
COLORADO - 4.9% (3.3% 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 $ 4,489,673
3,750 5.500%, 12/01/28 - FSA Insured 12/13 at 100.00 AAA 3,864,413
1,450 Colorado Educational and Cultural Facilities Authority, 8/14 at 100.00 A 1,455,365
Charter School Revenue Bonds, Peak-to-Peak Charter School,
Series 2004, 5.250%, 8/15/24 - SYNCORA GTY Insured
4,500 Colorado Health Facilities Authority, Colorado, Revenue 4/18 at 100.00 AAA 4,695,930
Bonds, Catholic Health Initiatives, Series 2006C-1, Trust
1090, 14.965%, 10/01/41 - FSA Insured (IF)
3,000 E-470 Public Highway Authority, Colorado, Senior Revenue No Opt. Call A 738,780
Bonds, Series 2000B, 0.000%, 9/01/30 - NPFG Insured
2,900 E-470 Public Highway Authority, Colorado, Toll Revenue Bonds, No Opt. Call A 524,755
Series 2004A, 0.000%, 9/01/34 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
19,900 Total Colorado 15,768,916
------------------------------------------------------------------------------------------------------------------------------------
DISTRICT OF COLUMBIA - 0.6% (0.4% OF TOTAL INVESTMENTS)
7,000 Metropolitan Washington DC Airports Authority, Virginia, No Opt. Call AAA 1,311,170
Dulles Toll Road Revenue Bonds, Series 2009B, 0.000%,
10/01/36 - AGC Insured
665 Washington Convention Center Authority, District of Columbia, 10/16 at 100.00 AAA 617,379
Senior Lien Dedicated Tax Revenue Bonds, Series 2007,
Residuals 1606, 11.582%, 10/01/30 - AMBAC Insured (IF)
------------------------------------------------------------------------------------------------------------------------------------
7,665 Total District of Columbia 1,928,549
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA - 23.6% (15.9% OF TOTAL INVESTMENTS)
1,000 Bay County, Florida, Water System Revenue Bonds, Series 2005, 9/15 at 100.00 A3 1,021,750
5.000%, 9/01/25 - AMBAC Insured
Clay County, Florida, Utility System Revenue Bonds, Series
2007:
1,500 5.000%, 11/01/27 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 1,566,345
3,000 5.000%, 11/01/32 - SYNCORA GTY Insured (UB) 11/17 at 100.00 AAA 3,064,080
400 Collier County, Florida, Capital Improvement Revenue Bonds, 10/14 at 100.00 AA 415,336
Series 2005, 5.000%, 10/01/23 - NPFG Insured
1,000 Escambia County, Florida, Sales Tax Revenue Refunding Bonds, 10/12 at 101.00 A+ 1,108,530
Series 2002, 5.250%, 10/01/17 - AMBAC Insured
1,525 Fernandina Beach, Florida, Utility Acquisition and 9/13 at 100.00 A 1,555,805
Improvement Revenue Bonds, Series 2003, 5.000%, 9/01/23 -
FGIC Insured
500 Flagler County, Florida, Capital Improvement Revenue Bonds, 10/15 at 100.00 A 502,010
Series 2005, 5.000%, 10/01/30 - NPFG Insured
260 Florida Housing Finance Agency, GNMA Collateralized Home No Opt. Call AAA 282,230
Ownership Revenue Refunding Bonds, Series 1987G-1, 8.595%,
11/01/17
2,500 Florida State Board of Education, Public Education Capital 6/18 at 101.00 AAA 2,877,600
Outlay Bonds, Series 2008, Trust 2929, 17.020%, 6/01/38 -
AGC Insured (IF)
2,240 FSU Financial Assistance Inc., Florida, General Revenue No Opt. Call A1 2,448,253
Bonds, Educational and Athletic Facilities Improvements,
Series 2004, 5.000%, 10/01/14 - AMBAC Insured
2,000 Greater Orlando Aviation Authority, Florida, Airport 10/12 at 100.00 AAA 2,020,680
Facilities Revenue Bonds, Series 2002A, 5.125%, 10/01/32 -
FSA Insured
105 Greater Orlando Aviation Authority, Florida, Airport 10/13 at 100.00 AAA 110,916
Facilities Revenue Refunding Bonds, Series 2003A, 5.000%,
10/01/17 - FSA Insured
350 Halifax Hospital Medical Center, Florida, Revenue Bonds, 6/18 at 100.00 AAA 350,931
Series 2006, 5.500%, 6/01/38 - FSA Insured
1,300 Highlands County Health Facilities Authority, Florida, 11/15 at 100.00 A1 1,215,669
Hospital Revenue Bonds, Adventist Health System, Series
2005D, 5.000%, 11/15/35 - NPFG Insured
180 Highlands County Health Facilities Authority, Florida, 11/15 at 100.00 A1 (4) 205,879
Hospital Revenue Bonds, Adventist Health System, Series
2005D, 5.000%, 11/15/35 (Pre-refunded 11/15/15) - NPFG
Insured
3,500 Highlands County Health Facilities Authority, Florida, 11/13 at 100.00 N/R (4) 4,013,030
Hospital Revenue Bonds, Adventist Health System/Sunbelt
Obligated Group, Series 2003D, 5.875%, 11/15/29
(Pre-refunded 11/15/13)
1,500 Hillsborough County School Board, Florida, Certificates of 7/13 at 100.00 AA- 1,512,390
Participation, Series 2003, 5.000%, 7/01/29 - NPFG Insured
2,270 Jacksonville, Florida, Local Government Sales Tax Revenue 10/12 at 100.00 AA+ 2,440,432
Refunding and Improvement Bonds, Series 2002, 5.375%,
10/01/18 - FGIC Insured
Nuveen Investments 77
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
FLORIDA (continued)
$ 2,265 Lakeland, Florida, Utility Tax Revenue Bonds, Series 2003B, 10/12 at 100.00 N/R $ 2,282,010
5.000%, 10/01/20 - AMBAC Insured
1,730 Lee County, Florida, Transportation Facilities Revenue Bonds, 10/14 at 100.00 A- 1,752,490
Series 2004B, 5.000%, 10/01/22 - AMBAC Insured
500 Lee Memorial Health System, Florida, Hospital Revenue Bonds, 4/17 at 100.00 A 471,675
Series 2007A, 5.000%, 4/01/32 - NPFG Insured
3,000 Marco Island, Florida, Water Utility System Revenue Bonds, 10/13 at 100.00 A 3,030,690
Series 2003, 5.000%, 10/01/27 - NPFG Insured
2,000 Miami-Dade County, Florida, Water and Sewer System Revenue 4/10 at 101.00 A+ 2,018,120
Bonds, Series 1999A, 5.000%, 10/01/29 - FGIC Insured
500 Miami-Dade County, Florida, Water and Sewer System Revenue No Opt. Call AAA 553,765
Bonds, Series 2008B, 5.250%, 10/01/22 - FSA Insured
500 North Port, Florida, Utility System Revenue Bonds, Series 10/10 at 101.00 Aa3 (4) 526,235
2000, 5.000%, 10/01/25 (Pre-refunded 10/01/10) - FSA
Insured
2,000 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 2,129,880
2002A, 5.125%, 1/01/17 - FGIC Insured
1,500 Orange County, Florida, Sales Tax Revenue Bonds, Series 1/13 at 100.00 AA 1,511,010
2002B, 5.125%, 1/01/32 - FGIC Insured
3,370 Osceola County School Board, Florida, Certificates of 6/12 at 101.00 A2 (4) 3,724,591
Participation, Series 2002A, 5.125%, 6/01/20 (Pre-refunded
6/01/12) - AMBAC Insured
3,335 Palm Bay, Florida, Local Optional Gas Tax Revenue Bonds, 10/14 at 100.00 AA- 3,583,291
Series 2004, 5.250%, 10/01/20 - NPFG Insured
1,095 Palm Bay, Florida, Utility System Revenue Bonds, Series 2004, 10/14 at 100.00 A 1,176,523
5.250%, 10/01/20 - NPFG Insured
2,670 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,693,015
Participation, Series 2002D, 5.000%, 8/01/28 - FSA Insured
1,950 Palm Beach County School Board, Florida, Certificates of 8/12 at 100.00 AAA 2,167,796
Participation, Series 2002D, 5.250%, 8/01/20 (Pre-refunded
8/01/12) - FSA Insured
Pinellas County Health Facilities Authority, Florida, Revenue
Bonds, Baycare Health System, Series 2003:
2,800 5.750%, 11/15/27 (Pre-refunded 5/15/13) 5/13 at 100.00 Aa3 (4) 3,206,868
3,000 5.500%, 11/15/27 (Pre-refunded 5/15/13) 5/13 at 100.00 Aa3 (4) 3,410,160
1,000 Port Saint Lucie, Florida, Special Assessment Revenue Bonds, 7/17 at 100.00 A 889,390
Southwest Annexation District 1B, Series 2007, 5.000%,
7/01/33 - NPFG Insured
2,115 Port St. Lucie, Florida, Sales Tax Revenue Bonds, Series 9/13 at 100.00 A+ 2,130,989
2003, 5.000%, 9/01/23 - NPFG Insured
1,500 Port St. Lucie, Florida, Stormwater Utility System Revenue 5/12 at 100.00 A 1,507,695
Refunding Bonds, Series 2002, 5.000%, 5/01/23 - NPFG
Insured
225 Port St. Lucie, Florida, Utility System Revenue Bonds, 9/18 at 100.00 AAA 232,322
Refunding Series 2009, 5.250%, 9/01/35 - AGC Insured
1,500 South Miami Health Facilities Authority, Florida, Hospital 2/13 at 100.00 Aaa 1,678,620
Revenue Bonds, Baptist Health Systems of South Florida,
Series 2003, 5.200%, 11/15/28 (Pre-refunded 2/01/13)
1,730 St. John's County, Florida, Sales Tax Revenue Bonds, Series 10/14 at 100.00 A+ 1,783,128
2004A, 5.000%, 10/01/24 - AMBAC Insured
4,000 St. Lucie County School Board, Florida, Certificates of 7/14 at 100.00 AAA 4,095,000
Participation, Master Lease Program, Series 2004A, 5.000%,
7/01/24 - FSA Insured
1,200 Tamarac, Florida, Utility System Revenue Bonds, Series 2009, 10/19 at 100.00 AAA 1,188,912
5.000%, 10/01/39
1,250 Volusia County Educational Facilities Authority, Florida, 10/13 at 100.00 BBB- 1,186,038
Revenue Refunding Bonds, Embry-Riddle Aeronautical
University, Series 2003, 5.200%, 10/15/33 - RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
71,865 Total Florida 75,642,079
------------------------------------------------------------------------------------------------------------------------------------
GEORGIA - 2.0% (1.4% OF TOTAL INVESTMENTS)
3,000 Atlanta, Georgia, Water and Wastewater Revenue Bonds, Series 11/19 at 100.00 AAA 3,038,220
2009B, 5.375%, 11/01/39 - FSA Insured
1,410 DeKalb County, Georgia, Water and Sewer Revenue Bonds, Series 10/16 at 100.00 AAA 1,463,777
2006A, 5.000%, 10/01/35 - FSA Insured
1,825 Metropolitan Atlanta Rapid Transit Authority, Georgia, Sales 1/13 at 100.00 AA+ (4) 2,028,853
Tax Revenue Bonds, Second Indenture Series 2002, 5.000%,
7/01/32 (Pre-refunded 1/01/13) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
6,235 Total Georgia 6,530,850
------------------------------------------------------------------------------------------------------------------------------------
78 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
ILLINOIS - 2.8% (1.9% OF TOTAL INVESTMENTS)
Cook County School District 145, Arbor Park, Illinois, General
Obligation Bonds, Series 2004:
$ 1,635 5.125%, 12/01/20 - FSA Insured 12/14 at 100.00 Aa3 $ 1,729,323
1,465 5.125%, 12/01/23 - FSA Insured 12/14 at 100.00 Aa3 1,529,973
Cook County School District 145, Arbor Park, Illinois, General
Obligation Bonds, Series 2004:
1,650 5.125%, 12/01/20 - FSA Insured (ETM) 12/14 at 100.00 Aa3 (4) 1,782,017
1,475 5.125%, 12/01/23 - FSA Insured (ETM) 12/14 at 100.00 Aa3 (4) 1,572,085
2,500 Illinois Health Facilities Authority, Revenue Bonds, Lake 7/13 at 100.00 A- 2,463,875
Forest Hospital, Series 2003, 5.250%, 7/01/23
------------------------------------------------------------------------------------------------------------------------------------
8,725 Total Illinois 9,077,273
------------------------------------------------------------------------------------------------------------------------------------
INDIANA - 7.3% (4.9% OF TOTAL INVESTMENTS)
2,500 Evansville, Indiana, Sewerage Works Revenue Refunding Bonds, 7/13 at 100.00 A3 2,518,150
Series 2003A, 5.000%, 7/01/23 - AMBAC Insured
2,190 Indiana Bond Bank, Advance Purchase Funding Bonds, Common 8/13 at 100.00 A 2,209,885
School Fund, Series 2003B, 5.000%, 8/01/19 - NPFG Insured
1,860 Indiana Municipal Power Agency, Power Supply Revenue Bonds, 1/17 at 100.00 A+ 1,848,077
Series 2007A, 5.000%, 1/01/42 - NPFG Insured
1,000 Indiana University, Student Fee Revenue Bonds, Series 2003O, 8/13 at 100.00 Aa1 1,055,120
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 (Pre-refunded 7/15/13) - NPFG Insured 7/13 at 100.00 AA (4) 12,434,417
3,000 5.000%, 7/15/20 (Pre-refunded 7/15/13) - NPFG Insured 7/13 at 100.00 AA (4) 3,385,050
------------------------------------------------------------------------------------------------------------------------------------
21,570 Total Indiana 23,450,699
------------------------------------------------------------------------------------------------------------------------------------
KANSAS - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,000 Kansas Development Finance Authority, Board of Regents, 4/13 at 102.00 AA 5,236,450
Revenue Bonds, Scientific Research and Development
Facilities Projects, Series 2003C, 5.000%, 10/01/22 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
KENTUCKY - 0.4% (0.2% OF TOTAL INVESTMENTS)
985 Kentucky State Property and Buildings Commission, Revenue 8/13 at 100.00 Aa3 (4) 1,112,558
Refunding Bonds, Project 77, Series 2003, 5.000%, 8/01/23
(Pre-refunded 8/01/13) - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
LOUISIANA - 1.8% (1.2% OF TOTAL INVESTMENTS)
5,785 New Orleans, Louisiana, General Obligation Refunding Bonds, 12/12 at 100.00 Baa3 5,810,801
Series 2002, 5.300%, 12/01/27 - FGIC Insured
------------------------------------------------------------------------------------------------------------------------------------
MASSACHUSETTS - 0.4% (0.2% OF TOTAL INVESTMENTS)
1,125 Massachusetts Development Finance Authority, Revenue Bonds, 9/13 at 100.00 A1 1,157,839
Middlesex School, Series 2003, 5.125%, 9/01/23
------------------------------------------------------------------------------------------------------------------------------------
MICHIGAN - 9.9% (6.7% OF TOTAL INVESTMENTS)
6,130 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ (4) 6,866,274
Bonds, Series 2003A, 5.000%, 7/01/23 (Pre-refunded 7/01/13)
- NPFG Insured
4,465 Detroit, Michigan, Senior Lien Water Supply System Revenue 7/13 at 100.00 A+ 4,513,892
Refunding Bonds, Series 2003C, 5.000%, 7/01/22 - NPFG
Insured
1,000 Michigan State Hospital Finance Authority, Revenue Bonds, 12/16 at 100.00 AA 998,630
Trinity Health Care Group, Series 2006A, 5.000%, 12/01/31
(UB)
10,800 Michigan Strategic Fund, Limited Obligation Resource Recovery 12/12 at 100.00 Baa1 10,614,780
Revenue Refunding Bonds, Detroit Edison Company, Series
2002D, 5.250%, 12/15/32 - SYNCORA GTY Insured
2,250 Romulus Community Schools, Wayne County, Michigan, General 5/11 at 100.00 AA- 2,310,818
Obligation Refunding Bonds, Series 2001, 5.250%, 5/01/25
6,500 Wayne County, Michigan, Limited Tax General Obligation Airport 12/11 at 101.00 A 6,408,090
Hotel Revenue Bonds, Detroit Metropolitan Wayne County
Airport, Series 2001A, 5.000%, 12/01/30 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
31,145 Total Michigan 31,712,484
------------------------------------------------------------------------------------------------------------------------------------
Nuveen Investments 79
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
MISSOURI - 1.0% (0.7% OF TOTAL INVESTMENTS)
$ 240 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA $ 257,568
General Obligation Bonds, Series 2004, 5.250%, 3/01/24 -
FSA Insured
215 Clay County Public School District 53, Liberty, Missouri, 3/14 at 100.00 AAA 231,746
General Obligation Bonds, Series 2004, 5.250%, 3/01/23 -
FSA Insured
Clay County Public School District 53, Liberty, Missouri,
General Obligation Bonds, Series 2004:
1,110 5.250%, 3/01/23 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,269,618
1,260 5.250%, 3/01/24 (Pre-refunded 3/01/14) - FSA Insured 3/14 at 100.00 AAA 1,441,188
------------------------------------------------------------------------------------------------------------------------------------
2,825 Total Missouri 3,200,120
------------------------------------------------------------------------------------------------------------------------------------
NEBRASKA - 1.6% (1.1% OF TOTAL INVESTMENTS)
5,000 Lincoln, Nebraska, Sanitary Sewerage System Revenue Refunding 6/13 at 100.00 AA+ 5,151,950
Bonds, Series 2003, 5.000%, 6/15/28 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW MEXICO - 0.7% (0.4% OF TOTAL INVESTMENTS)
1,975 New Mexico State University, Revenue Bonds, Series 2004, 4/14 at 100.00 AA 2,136,022
5.000%, 4/01/19 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK - 10.1% (6.8% OF TOTAL INVESTMENTS)
2,020 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 A 1,703,365
Bonds, Series 2006A, 4.500%, 2/15/47 - NPFG Insured
25,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 A 25,146,500
Transportation Revenue Refunding Bonds, Series 2002F,
5.000%, 11/15/31 - NPFG Insured
1,850 New York State Urban Development Corporation, Service 3/15 at 100.00 AAA 1,939,318
Contract Revenue Bonds, Series 2005B, 5.000%, 3/15/25 -
FSA Insured (UB)
3,335 New York State Urban Development Corporation, State Personal 3/17 at 100.00 AAA 3,563,581
Income Tax Revenue Bonds, Tender Option Bond Trust 09-6W,
13.124%, 3/15/37 (IF)
------------------------------------------------------------------------------------------------------------------------------------
32,205 Total New York 32,352,764
------------------------------------------------------------------------------------------------------------------------------------
NORTH CAROLINA - 2.0% (1.4% OF TOTAL INVESTMENTS)
8,700 North Carolina Medical Care Commission, Revenue Bonds, Maria 10/13 at 100.00 BBB- 6,503,597
Parham Medical Center, Series 2003, 5.375%, 10/01/33 -
RAAI Insured
------------------------------------------------------------------------------------------------------------------------------------
OHIO - 0.8% (0.5% OF TOTAL INVESTMENTS)
Buckeye Tobacco Settlement Financing Authority, Ohio, Tobacco
Settlement Asset-Backed Revenue Bonds, Senior Lien,
Series 2007A-2:
65 5.125%, 6/01/24 6/17 at 100.00 BBB 57,893
710 5.875%, 6/01/30 6/17 at 100.00 BBB 617,962
685 5.750%, 6/01/34 6/17 at 100.00 BBB 576,051
1,570 5.875%, 6/01/47 6/17 at 100.00 BBB 1,163,244
------------------------------------------------------------------------------------------------------------------------------------
3,030 Total Ohio 2,415,150
------------------------------------------------------------------------------------------------------------------------------------
OKLAHOMA - 0.3% (0.2% OF TOTAL INVESTMENTS)
1,000 Oklahoma Capitol Improvement Authority, State Facilities 7/15 at 100.00 AA 1,030,260
Revenue Bonds, Series 2005F, 5.000%, 7/01/24 - AMBAC
Insured
------------------------------------------------------------------------------------------------------------------------------------
OREGON - 2.5% (1.7% OF TOTAL INVESTMENTS)
8,350 Oregon Health Sciences University, Revenue Bonds, Series 1/13 at 100.00 A 7,915,714
2002A, 5.000%, 7/01/32 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA - 7.4% (5.0% OF TOTAL INVESTMENTS)
3,000 Lehigh County General Purpose Authority, Pennsylvania, 8/13 at 100.00 AAA 3,430,560
Hospital Revenue Bonds, St. Luke's Hospital of Bethlehem,
Series 2003, 5.375%, 8/15/33 (Pre-refunded 8/15/13)
3,500 Pennsylvania Turnpike Commission, Turnpike Subordinate 6/26 at 100.00 AAA 2,548,980
Revenue Bonds, Series 2009C, 0.000%, 6/01/33 - FSA Insured
2,000 Philadelphia Gas Works, Pennsylvania, Revenue Bonds, General 8/13 at 100.00 AAA 2,000,520
Ordinance, Fourth Series 1998, 5.000%, 8/01/32 - FSA
Insured
925 Philadelphia, Pennsylvania, Water and Wastewater Revenue 1/10 at 100.00 AAA 953,860
Bonds, Series 1997A, 5.125%, 8/01/27 - AMBAC Insured (ETM)
13,000 State Public School Building Authority, Pennsylvania, Lease 6/13 at 100.00 AAA 14,633,580
Revenue Bonds, Philadelphia School District, Series 2003,
5.000%, 6/01/33 (Pre-refunded 6/01/13) - FSA Insured
------------------------------------------------------------------------------------------------------------------------------------
22,425 Total Pennsylvania 23,567,500
------------------------------------------------------------------------------------------------------------------------------------
80 Nuveen Investments
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO - 0.8% (0.5% OF TOTAL INVESTMENTS)
$ 1,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/12 at 101.00 AAA $ 1,120,520
Series 2002II, 5.125%, 7/01/26 (Pre-refunded 7/01/12) -
FSA Insured
10,000 Puerto Rico Sales Tax Financing Corporation, Sales Tax No Opt. Call AA- 1,356,900
Revenue Bonds, Series 2007A, 0.000%, 8/01/43 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
11,000 Total Puerto Rico 2,477,420
------------------------------------------------------------------------------------------------------------------------------------
SOUTH CAROLINA - 5.6% (3.8% OF TOTAL INVESTMENTS)
5,000 Florence County, South Carolina, Hospital Revenue Bonds, 11/14 at 100.00 AAA 5,148,250
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 (UB) 12/13 at 100.00 AA 3,080,640
1,785 5.000%, 12/01/23 (UB) 12/13 at 100.00 AA 1,829,286
8,000 South Carolina Transportation Infrastructure Bank, Revenue 10/12 at 100.00 A1 8,034,160
Bonds, Series 2002A, 5.000%, 10/01/33 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,785 Total South Carolina 18,092,336
------------------------------------------------------------------------------------------------------------------------------------
TEXAS - 10.1% (6.9% OF TOTAL INVESTMENTS)
7,975 Fort Bend Independent School District, Fort Bend County, 8/10 at 100.00 AAA 8,191,601
Texas, General Obligation Bonds, Series 2000, 5.000%,
8/15/25
Grand Prairie Independent School District, Dallas County,
Texas, General Obligation Bonds, Series 2003:
1,660 5.375%, 2/15/26 (Pre-refunded 2/15/13) - FSA Insured 2/13 at 100.00 AAA 1,871,798
12,500 5.125%, 2/15/31 (Pre-refunded 2/15/13) - FSA Insured 2/13 at 100.00 AAA 13,994,625
2,000 Houston, Texas, First Lien Combined Utility System Revenue 5/14 at 100.00 AA 2,098,280
Bonds, Series 2004A, 5.250%, 5/15/25 - NPFG Insured
5,515 Houston, Texas, General Obligation Refunding Bonds, Series 3/12 at 100.00 AA 5,885,387
2002, 5.250%, 3/01/20 - NPFG Insured
465 Katy Independent School District, Harris, Fort Bend and 2/12 at 100.00 AAA 486,209
Waller Counties, Texas, General Obligation Bonds, Series
2002A, 5.125%, 2/15/18
------------------------------------------------------------------------------------------------------------------------------------
30,115 Total Texas 32,527,900
------------------------------------------------------------------------------------------------------------------------------------
VIRGINIA - 0.5% (0.3% OF TOTAL INVESTMENTS)
1,500 Hampton, Virginia, Revenue Bonds, Convention Center Project, 1/13 at 100.00 A1 1,523,580
Series 2002, 5.125%, 1/15/28 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WASHINGTON - 9.5% (6.4% OF TOTAL INVESTMENTS)
4,945 Broadway Office Properties, King County, Washington, Lease 12/12 at 100.00 AAA 5,013,884
Revenue Bonds, Washington Project, Series 2002, 5.000%,
12/01/31 - NPFG Insured
5,250 Chelan County Public Utility District 1, Washington, Hydro 7/12 at 100.00 AA 5,314,208
Consolidated System Revenue Bonds, Series 2002C, 5.125%,
7/01/33 - AMBAC Insured
5,000 King County, Washington, Sewer Revenue Bonds, Series 2006-2, 1/17 at 100.00 AAA 5,547,450
Trust 1200, 13.103%, 1/01/31 - FSA Insured (IF)
2,135 Kitsap County Consolidated Housing Authority, Washington, 7/13 at 100.00 A1 2,176,398
Revenue Bonds, Bremerton Government Center, Series 2003,
5.000%, 7/01/23 - NPFG Insured
1,935 Pierce County School District 343, Dieringer, Washington, 6/13 at 100.00 Aa1 2,137,323
General Obligation Refunding Bonds, Series 2003, 5.250%,
12/01/17 - FGIC Insured
9,670 Washington State, General Obligation Bonds, Series 2003D, 6/13 at 100.00 AA+ 10,124,683
5.000%, 12/01/21 - NPFG Insured
------------------------------------------------------------------------------------------------------------------------------------
28,935 Total Washington 30,313,946
------------------------------------------------------------------------------------------------------------------------------------
WEST VIRGINIA - 1.0% (0.7% OF TOTAL INVESTMENTS)
3,000 West Virginia State Building Commission, Lease Revenue No Opt. Call N/R 3,253,110
Refunding Bonds, Regional Jail and Corrections Facility,
Series 1998A, 5.375%, 7/01/21 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN - 5.5% (3.7% OF TOTAL INVESTMENTS)
1,190 Sun Prairie Area School District, Dane County, Wisconsin, 3/14 at 100.00 Aa3 1,315,747
General Obligation Bonds, Series 2004C, 5.250%, 3/01/24 -
FSA Insured
4,605 Wisconsin Health and Educational Facilities Authority, 9/13 at 100.00 BBB+ (4) 5,312,420
Revenue Bonds, Franciscan Sisters of Christian Charity
Healthcare Ministry, Series 2003A, 5.875%, 9/01/33
(Pre-refunded 9/01/13)
Nuveen Investments 81
NEA | Nuveen Insured Tax-Free Advantage Municipal Fund (continued)
| Portfolio of Investments October 31, 2009
PRINCIPAL OPTIONAL CALL
AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE
------------------------------------------------------------------------------------------------------------------------------------
WISCONSIN (continued)
$ 3,000 Wisconsin Health and Educational Facilities Authority, No Opt. Call A1 $ 3,234,510
Revenue Bonds, Meriter Hospital Inc., Series 1992A,
6.000%, 12/01/22 - FGIC Insured
3,600 Wisconsin Health and Educational Facilities Authority, 8/13 at 100.00 BBB+ 3,027,277
Revenue Bonds, Wheaton Franciscan Services Inc., Series
2003A, 5.125%, 8/15/33
4,750 Wisconsin Health and Educational Facilities Authority, 2/10 at 101.00 A 4,758,265
Revenue Refunding Bonds, Wausau Hospital Inc., Series
1998A, 5.125%, 8/15/20 - AMBAC Insured
------------------------------------------------------------------------------------------------------------------------------------
17,145 Total Wisconsin 17,648,219
------------------------------------------------------------------------------------------------------------------------------------
$ 481,730 Total Long-Term Investments (cost $460,350,970) - 147.1% 471,555,537
===============---------------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS - 1.2% (0.8% OF TOTAL INVESTMENTS)
CALIFORNIA - 1.2% (0.8% OF TOTAL INVESTMENTS)
$ 3,790 Westminster Redevelopment Agency, Orange County, California, 11/19 at 100.00 A-1 3,790,000
Westminster Commercial Redevelopment Project 1, Tax
Allocation Bonds, Variable Rate Demand Obligations, Tender
Option Bond Trust 3009, 0.210%, 11/01/45 - AGC Insured (5)
===============---------------------------------------------------------------------------------------------------------------------
Total Short-Term Investments (cost $3,790,000) 3,790,000
------------------------------------------------------------------------------------------------------------------
Total Investments (cost $464,140,970) - 148.3% 475,345,537
------------------------------------------------------------------------------------------------------------------
Floating Rate Obligations - (4.1)% (13,040,000)
------------------------------------------------------------------------------------------------------------------
Other Assets Less Liabilities - 2.2% 7,031,337
------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred Shares, at Liquidation Value - (46.4)% (148,750,000)
(6)
------------------------------------------------------------------------------------------------------------------
Net Assets Applicable to Common Shares - 100% $ 320,586,874
==================================================================================================================
At least 80% of the Fund's net assets are invested in municipal securities
that guarantee the timely payment of principal and interest. See Notes to
Financial Statements, Footnote 1 - Insurance, for more information.
(1) All percentages shown in the Portfolio of Investments are based on net
assets applicable to Common shares unless otherwise noted.
(2) Optional Call Provisions (not covered by the report of independent
registered public accounting firm): Dates (month and year) and prices of
the earliest optional call or redemption. There may be other call
provisions at varying prices at later dates. Certain mortgage-backed
securities may be subject to periodic principal paydowns.
(3) Ratings (not covered by the report of independent registered public
accounting firm): Using the higher of Standard & Poor's Group ("Standard &
Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings
below BBB by Standard & Poor's or Baa by Moody's are considered to be
below investment grade.
The Portfolio of Investments may reflect the ratings on certain bonds
whose insurer has experienced downgrades as of the end of the reporting
period. Please see the Portfolio Manager's Comments for an expanded
discussion of the affect on the Fund of changes to the ratings of certain
bonds in the portfolio resulting from changes to the ratings of the
underlying insurers both during the period and after period end.
(4) Backed by an escrow or trust containing sufficient U.S. Government or U.S.
Government agency securities which ensure the timely payment of principal
and interest. Such investments are normally considered to be equivalent to
AAA rated securities.
(5) Investment has a maturity of more than one year, but has variable rate and
demand features which qualify it as a short-term investment. The rate
disclosed is that in effect at the end of the reporting period. This rate
changes periodically based on market conditions or a specified market
index.
(6) Auction Rate Preferred Shares, at Liquidation Value as a percentage of
Total Investments is 31.3%.
N/R Not rated.
(ETM) Escrowed to maturity.
(IF) Inverse floating rate investment.
(UB) Underlying bond of an inverse floating rate trust reflected as a financing
transaction. See Notes to Financial Statements, Footnote 1 - Inverse
Floating Rate Securities for more information.
See accompanying notes to financial statements.
82 Nuveen Investments
| Statement of
| Assets & Liabilities October 31, 2009
INSURED INSURED PREMIER
QUALITY OPPORTUNITY INSURED INCOME
(NQI) (NIO) (NIF)
----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $822,132,451, $2,102,501,409 and
$413,684,963, respectively) $ 812,346,224 $ 2,129,287,805 $ 422,940,908
Cash 1,811,377 10,773,888 1,631,451
Cash equivalents (1) -- -- --
Receivables:
Dividends and Interest 11,887,695 32,596,801 6,715,944
Investments sold 2,910,000 5,020,542 5,250,000
Deferred offering costs -- -- --
Other assets 197,750 445,249 102,422
----------------------------------------------------------------------------------------------------------------------------
Total assets 829,153,046 2,178,124,285 436,640,725
----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft -- -- --
Floating rate obligations 59,145,000 134,833,333 25,665,000
Payables:
Investments purchased -- -- --
Auction Rate Preferred shares noticed for redemption, at
liquidation value -- -- --
Auction Rate Preferred share dividends 12,663 26,862 5,848
Common share dividends 2,213,554 6,682,224 1,132,759
Interest -- -- --
Offering costs -- -- --
MuniFund Term Preferred shares, at liquidation value -- -- --
Variable Rate Demand Preferred shares, at liquidation value -- -- --
Accrued expenses:
Management fees 425,289 1,105,358 232,914
Other 290,080 1,157,620 167,590
----------------------------------------------------------------------------------------------------------------------------
Total liabilities 62,086,586 143,805,397 27,204,111
----------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value 245,850,000 675,475,000 130,125,000
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 521,216,460 $ 1,358,843,888 $ 279,311,614
============================================================================================================================
Common shares outstanding 38,306,830 95,589,803 19,419,608
============================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 13.61 $ 14.22 $ 14.38
============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 383,068 $ 955,898 $ 194,196
Paid-in surplus 537,282,110 1,333,678,460 270,100,153
Undistributed (Over-distribution of) net investment income 5,239,968 13,750,540 3,446,640
Accumulated net realized gain (loss) from investments and
derivative transactions (11,902,459) (16,327,406) (3,685,320)
Net unrealized appreciation (depreciation) of investments (9,786,227) 26,786,396 9,255,945
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 521,216,460 $ 1,358,843,888 $ 279,311,614
============================================================================================================================
Authorized shares:
Common 200,000,000 200,000,000 200,000,000
Auction Rate Preferred 1,000,000 1,000,000 1,000,000
Variable Rate Demand Preferred -- -- --
MuniFund Term Preferred -- -- --
============================================================================================================================
(1) Segregated for the payment of Auction Rate Preferred shares noticed for
redemption.
See accompanying notes to financial statements.
Nuveen Investments 83
| Statement of
| Assets & Liabilities (continued) October 31, 2009
INSURED INSURED
INSURED DIVIDEND TAX-FREE
PREMIUM INCOME 2 ADVANTAGE ADVANTAGE
(NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $748,775,936, $639,498,137 and
$464,140,970, respectively) $ 748,810,257 $ 658,061,178 $ 475,345,537
Cash -- 1,196,918 1,565,603
Cash equivalents(1) -- 106,158,035 --
Receivables:
Dividends and Interest 13,334,580 10,006,033 7,489,589
Investments sold 9,679,732 1,439,539 --
Deferred offering costs 2,465,742 1,861,870 --
Other assets 50,057 128,632 139,217
----------------------------------------------------------------------------------------------------------------------------
Total assets 774,340,368 778,852,205 484,539,946
----------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft 1,033,897 -- --
Floating rate obligations 57,980,000 28,413,334 13,040,000
Payables:
Investments purchased 9,639,100 -- --
Auction Rate Preferred shares noticed for redemption, at
liquidation value -- 106,125,000 --
Auction Rate Preferred share dividends -- 8,489 5,941
Common share dividends 2,048,944 2,024,442 1,648,773
Interest -- 106,200 --
Offering costs -- 524,637 --
MuniFund Term Preferred shares, at liquidation value -- 108,000,000 --
Variable Rate Demand Preferred shares, at liquidation value 219,000,000 -- --
Accrued expenses:
Management fees 397,907 277,368 201,939
Other 171,782 215,246 306,419
----------------------------------------------------------------------------------------------------------------------------
Total liabilities 290,271,630 245,694,716 15,203,072
----------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares, at liquidation value -- 91,950,000 148,750,000
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 484,068,738 $ 441,207,489 $ 320,586,874
============================================================================================================================
Common shares outstanding 37,353,512 29,802,900 22,234,602
============================================================================================================================
Net asset value per Common share outstanding (net assets applicable
to Common shares, divided by Common shares outstanding) $ 12.96 $ 14.80 $ 14.42
============================================================================================================================
NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF:
----------------------------------------------------------------------------------------------------------------------------
Common shares, $.01 par value per share $ 373,535 $ 298,029 $ 222,346
Paid-in surplus 500,123,401 424,847,204 316,226,927
Undistributed (Over-distribution of) net investment income 3,094,419 4,426,545 2,920,016
Accumulated net realized gain (loss) from investments and
derivative transactions (19,556,938) (6,927,330) (9,986,982)
Net unrealized appreciation (depreciation) of investments 34,321 18,563,041 11,204,567
----------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares $ 484,068,738 $ 441,207,489 $ 320,586,874
============================================================================================================================
Authorized shares:
Common Unlimited Unlimited Unlimited
Auction Rate Preferred Unlimited Unlimited Unlimited
Variable Rate Demand Preferred Unlimited -- --
MuniFund Term Preferred -- Unlimited --
============================================================================================================================
(1) Segregated for the payment of Auction Rate Preferred shares noticed for
redemption.
See accompanying notes to financial statements.
84 Nuveen Investments
| Statement of
| Operations Year Ended October 31, 2009
INSURED INSURED PREMIER
QUALITY OPPORTUNITY INSURED INCOME
(NQI) (NIO) (NIF)
----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 44,402,226 $ 94,355,354 $ 22,673,906
----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,744,278 10,510,630 2,634,726
Auction fees 525,206 1,191,951 283,733
Dividend disbursing agent fees 50,000 66,632 30,000
Shareholders' servicing agent fees and expenses 64,889 104,730 26,003
Interest expense and amortization of offering costs 536,337 1,188,733 199,284
Liquidity fees -- -- --
Custodian's fees and expenses 134,278 296,671 78,134
Directors'/Trustees' fees and expenses 23,835 74,394 13,053
Professional fees 62,580 124,034 38,934
Shareholders' reports - printing and mailing expenses 128,862 277,333 72,880
Stock exchange listing fees 13,128 28,143 9,215
Investor relations expense 47,369 108,284 25,898
Other expenses 49,031 94,358 36,899
----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 6,379,793 14,065,893 3,448,759
Custodian fee credit (28,225) (62,226) (13,576)
Expense reimbursement -- -- --
----------------------------------------------------------------------------------------------------------------------------
Net expenses 6,351,568 14,003,667 3,435,183
----------------------------------------------------------------------------------------------------------------------------
Net investment income 38,050,658 80,351,687 19,238,723
----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,961,756) 1,491,035 (28,901)
Forward swaps -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 70,606,759 128,404,860 31,808,470
Forward swaps -- -- --
----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 66,645,003 129,895,895 31,779,569
---------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income (2,175,313) (4,883,766) (1,158,067)
----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Auction Rate Preferred shareholders (2,175,313) (4,883,766) (1,158,067)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 102,520,348 $ 205,363,816 $ 49,860,225
============================================================================================================================
See accompanying notes to financial statements.
Nuveen Investments 85
| Statement of
| Operations (continued) October 31, 2009
INSURED INSURED
INSURED DIVIDEND TAX-FREE
PREMIUM INCOME 2 ADVANTAGE ADVANTAGE
(NPX) (NVG) (NEA)
----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME $ 38,844,230 $ 33,764,951 $ 21,058,746
----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees 4,334,948 4,043,119 2,459,768
Auction fees 222,040 428,068 259,205
Dividend disbursing agent fees 17,733 30,000 20,401
Shareholders' servicing agent fees and expenses 37,000 6,415 3,873
Interest expense and amortization of offering costs 2,339,922 324,362 126,796
Liquidity fees 1,694,236 -- --
Custodian's fees and expenses 126,379 115,415 72,386
Directors'/Trustees' fees and expenses 21,291 20,212 16,829
Professional fees 30,854 51,339 34,290
Shareholders' reports - printing and mailing expenses 111,622 99,515 67,165
Stock exchange listing fees 12,805 4,211 2,636
Investor relations expense 42,659 38,905 22,727
Other expenses 24,255 33,391 39,990
----------------------------------------------------------------------------------------------------------------------------
Total expenses before custodian fee credit and expense reimbursement 9,015,744 5,194,952 3,126,066
Custodian fee credit (24,555) (4,691) (13,931)
Expense reimbursement -- (1,096,924) (644,019)
----------------------------------------------------------------------------------------------------------------------------
Net expenses 8,991,189 4,093,337 2,468,116
----------------------------------------------------------------------------------------------------------------------------
Net investment income 29,853,041 29,671,614 18,590,630
----------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments (3,699,493) (5,791,986) (1,232,542)
Forward swaps -- 5,000,000 --
Change in net unrealized appreciation (depreciation) of:
Investments 57,348,025 54,873,147 34,689,209
Forward swaps -- (1,124,391) --
----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 53,648,532 52,956,770 33,456,667
----------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO AUCTION RATE PREFERRED SHAREHOLDERS
From net investment income -- (1,745,832) (1,057,458)
----------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Auction Rate Preferred shareholders -- (1,745,832) (1,057,458)
----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common shares
from operations $ 83,501,573 $ 80,882,552 $ 50,989,839
============================================================================================================================
See accompanying notes to financial statements.
86 Nuveen Investments
| Statement of
| Changes in Net Assets
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
--------------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 38,050,658 $ 37,792,155 $ 80,351,687 $ 78,939,975
Net realized gain (loss) from:
Investments (3,961,756) (4,746,677) 1,491,035 (12,623,776)
Forward swaps -- -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 70,606,759 (115,993,313) 128,404,860 (199,798,296)
Forward swaps -- -- -- --
Distributions to Auction Rate Preferred shareholders:
From net investment income (2,175,313) (11,668,364) (4,883,766) (24,746,755)
From accumulated net realized gains -- -- -- (61,352)
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable
to Common shares from operations 102,520,348 (94,616,199) 205,363,816 (158,290,204)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (28,915,237) (27,878,967) (59,230,779) (56,634,349)
From accumulated net realized gains -- -- -- (154,162)
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (28,915,237) (27,878,967) (59,230,779) (56,788,511)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Issued in the Reorganization(1) -- -- 207,492,882 --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions 148,339 -- -- --
Cost of repurchases -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions 148,339 -- 207,492,882 --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares 73,753,450 (122,495,166) 353,625,919 (215,078,715)
Net assets applicable to Common shares at the beginning of
year 447,463,010 569,958,176 1,005,217,969 1,220,296,684
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 521,216,460 $ 447,463,010 $ 1,358,843,888 $ 1,005,217,969
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 5,239,968 $ (1,704,040) $ 13,750,540 $ (2,109,393)
====================================================================================================================================
(1) Common shares issued in the Reorganization of Nuveen Florida Premium
Income Municipal Fund (NFL).
See accompanying notes to financial statements.
Nuveen Investments 87
| Statement of
| Changes in Net Assets (continued)
PREMIER INSURED INSURED PREMIUM
INCOME (NIF) INCOME 2 (NPX)
--------------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 19,238,723 $ 18,677,152 $ 29,853,041 $ 30,045,285
Net realized gain (loss) from:
Investments (28,901) (2,431,194) (3,699,493) (7,350,763)
Forward swaps -- -- -- 5,200
Change in net unrealized appreciation (depreciation) of:
Investments 31,808,470 (43,684,607) 57,348,025 (79,485,056)
Forward swaps -- -- -- (165,919)
Distributions to Auction Rate Preferred shareholders:
From net investment income (1,158,067) (5,924,805) -- (7,428,415)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations 49,860,225 (33,363,454) 83,501,573 (64,379,668)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (14,137,477) (12,447,970) (24,989,504) (23,084,472)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares
from distributions to Common shareholders (14,137,477) (12,447,970) (24,989,504) (23,084,472))
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Issued in the Reorganization -- -- -- --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- -- --
Cost of repurchases -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares 35,722,748 (45,811,424) 58,512,069 (87,464,140)
Net assets applicable to Common shares at the beginning of
year 243,588,866 289,400,290 425,556,669 513,020,809
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 279,311,614 $ 243,588,866 $ 484,068,738 $ 425,556,669
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 3,446,640 $ (488,406) $ 3,094,419 $ (1,790,058)
====================================================================================================================================
88 Nuveen Investments
INSURED DIVIDEND INSURED TAX-FREE
ADVANTAGE (NVG) ADVANTAGE (NEA)
--------------------------------- ---------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 29,671,614 $ 29,763,002 $ 18,590,630 $ 17,541,421
Net realized gain (loss) from:
Investments (5,791,986) (1,658,018) (1,232,542) 1,751,437
Forward swaps 5,000,000 -- -- --
Change in net unrealized appreciation (depreciation) of:
Investments 54,873,147 (66,810,547) 34,689,209 (44,503,698)
Forward swaps (1,124,391) 1,124,391 -- --
Distributions to Auction Rate Preferred shareholders:
From net investment income (1,745,832) (8,645,473) (1,057,458) (5,024,148)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from operations 80,882,552 (46,226,645) 50,989,839 (30,234,988)
------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO COMMON SHAREHOLDERS
From net investment income (22,593,095) (20,720,244) (13,551,237) (13,115,689)
From accumulated net realized gains -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Decrease in net assets applicable to Common shares from
distributions to Common shareholders (22,593,095) (20,720,244) (13,551,237) (13,115,689)
------------------------------------------------------------------------------------------------------------------------------------
CAPITAL SHARE TRANSACTIONS
Common shares:
Issued in the Reorganization(2) -- -- 54,285,213 --
Net proceeds from shares issued to shareholders due to
reinvestment of distributions -- -- -- 34,771
Cost of repurchases (117,163) -- (212,353) --
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares from capital share transactions (117,163) -- 54,072,860 34,771
------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets applicable to Common
shares 58,172,294 (66,946,889) 91,511,462 (43,315,906)
Net assets applicable to Common shares at the beginning of
year 383,035,195 449,982,084 229,075,412 272,391,318
------------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to Common shares at the end of year $ 441,207,489 $ 383,035,195 $ 320,586,874 $ 229,075,412
====================================================================================================================================
Undistributed (Over-distribution of) net investment income
at the end of year $ 4,426,545 $ (853,988) $ 2,920,016 $ (1,056,455)
====================================================================================================================================
(2) Common shares issued in the Reorganization of Nuveen Insured Florida
Tax-Free Advantage Municipal Fund (NWF).
See accompanying notes to financial statements.
Nuveen Investments 89
| Statement of
| Cash Flows Year ended October 31, 2009
INSURED INSURED INSURED
QUALITY OPPORTUNITY PREMIUM INCOME 2
(NQI) (NIO) (NPX)
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHARES
FROM OPERATIONS $ 102,520,348 $ 205,363,816 $ 83,501,573
Adjustments to reconcile the net increase (decrease) in net assets
applicable to Common shares from operations to net cash
provided by (used in) operating activities:
Purchases of investments (33,494,698) (149,227,193) (51,097,265)
Proceeds from sales and maturities of investments 49,494,596 134,298,263 56,234,011
Proceeds from (Purchases of) short-term investments, net 18,655,000 11,078,000 12,975,000
Assets and liabilities acquired in the Reorganization -- 24,887,519 --
Amortization (Accretion) of premiums and discounts, net (705,789) (5,378,973) (136,678)
(Increase) Decrease in receivable for dividends and interest (174,774) (4,725,598) (310,042)
(Increase) Decrease in receivable for investments sold (2,595,000) (4,460,542) (9,629,700)
(Increase) Decrease in other assets (100,669) (259,619) 25,808
Increase (Decrease) in payable for investments purchased -- (5,214,363) 9,639,100
Increase (Decrease) in payable for Auction Rate Preferred share
dividends (68,137) (114,903) --
Increase (Decrease) in accrued management fees 30,342 262,825 58,264
Increase (Decrease) in accrued other liabilities 8,587 596,823 (92,948)
Net realized (gain) loss from investments 3,961,756 (1,491,035) 3,699,493
Change in net unrealized (appreciation) depreciation of investments (70,606,759) (128,404,860) (57,348,025)
Taxes paid on undistributed capital gains (73) (435) (7,310)
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating activities 66,924,730 77,209,725 47,511,281
------------------------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (Decrease) in floating rate obligations 8,370,000 15,605,000 (23,965,000)
Increase (Decrease) in cash overdraft balance -- -- 1,033,897
Cash distributions paid to Common shareholders (28,540,465) (56,685,394) (24,651,955)
(Increase) Decrease in deferred offering costs -- -- 49,352
Increase (Decrease) in payable for offering costs -- -- (252,314)
Increase (Decrease) in Auction Rate Preferred shares, at liquidation
value (52,575,000) (50,050,000) --
------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities (72,745,465) (91,130,394) (47,786,020)
------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN CASH (5,820,735) (13,920,669) (274,739)
Cash at the beginning of year 7,632,112 24,694,557 274,739
------------------------------------------------------------------------------------------------------------------------------------
Cash at the End of Year $ 1,811,377 $ 10,773,888 $ --
====================================================================================================================================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
During the current fiscal period Insured Opportunity (NIO) acquired all the net
assets of Nuveen Florida Premium Income Municipal Fund (NFL) through a tax-free
Reorganization. See Notes to Financial Statements, Footnote 1 for more
information.
Non-cash financing activities not included herein consist of reinvestments of
Common share distributions of $148,339 for Insured Quality (NQI).
Cash paid for interest (excluding amortization of offering costs, where
applicable) was as follows:
INSURED INSURED INSURED
QUALITY OPPORTUNITY PREMIUM INCOME 2
(NQI) (NIO) (NPX)
------------------------------------------------------------------------------------------------------------------------------------
$ 536,337 $ 1,188,733 $ 2,255,248
====================================================================================================================================
See accompanying notes to financial statements.
90 Nuveen Investments
| Notes to
| Financial Statements
1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES
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) (collectively, the "Funds"). 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 (NYSE) while Common shares of Insured Dividend Advantage (NVG) and
Insured Tax-Free Advantage (NEA) are traded on the NYSE Amex. The Funds are
registered under the Investment Company Act of 1940, as amended, as closed-end,
management investment companies.
During the current fiscal period, the following Nuveen Florida closed-end
municipal funds were reorganized into the following existing Nuveen national
municipal closed-end funds, as follows (collectively, the "Reorganizations")
o Nuveen Insured Florida Premium Income Municipal Fund (NFL) into
Insured Opportunity (NIO);
o Nuveen Insured Florida Tax-Free Advantage Municipal Fund (NWF) into
Insured Tax-Free Advantage (NEA)
Each of these Funds called a special meeting of shareholders, originally
scheduled in each case for May 15, 2009, to vote on the Reorganizations. Those
meetings were subsequently adjourned to and reconvened in June and July, at
which time, shareholders of each of Insured Florida Premium Income (NFL),
Insured Florida Tax-Free Advantage (NWF), Insured Opportunity (NIO) and Insured
Tax-Free Advantage (NEA) approved its respective Reorganization, with more than
80% of participating shares of each fund voting in favor of the Reorganization.
After the close of business on October 16, 2009, Insured Opportunity (NIO) and
Insured Tax-Free Advantage (NEA) acquired all the net assets of Insured Florida
Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF), respectively,
pursuant to the plan of Reorganizations described above. The acquisition was
accomplished by a tax-free exchange of Insured Florida Premium Income (NFL) and
Insured Florida Tax-Free Advantage (NWF) Common shares for Insured Opportunity
(NIO) and Insured Tax-Free Advantage (NEA) Common shares, respectively. On
October 16, 2009, the net assets of Insured Florida Premium Income (NFL) and
Insured Florida Tax-Free Advantage (NWF) were $207,492,882 and $54,285,213,
respectively. Insured Florida Premium Income's (NFL) and Insured Florida
Tax-Free Advantage's net assets applicable to Common shares at that date
included $8,234,921 and $3,171,992 of net unrealized appreciation, respectively.
Each Fund's net unrealized appreciation was combined with that of Insured
Opportunity (NIO) and Insured Tax-Free Advantage (NEA), respectively. The
combined net assets applicable to Common shares of Insured Opportunity (NIO) and
Insured Tax-Free Advantage (NEA) immediately after the acquisitions were
$1,372,440,081 and $323,751,223, respectively. For accounting and performance
reporting purposes, Insured Opportunity (NIO) and Insured Tax-Free Advantage
(NEA) are the survivors. Prior to the Reorganizations, each of Insured Florida
Premium Income (NFL) and Insured Florida Tax-Free Advantage (NWF) established a
reserve for certain costs and expenses associated with the Reorganizations,
including amounts estimated for the advancement of legal costs in connection
with legal proceedings brought by a shareholder of the Funds challenging the
Reorganizations. The amount of such reserve is included as a component of
Insured Opportunity's (NIO) and Insured Tax-Free Advantage's (NEA) "Accrued
other expenses" on the Statement of Assets and Liabilities.
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 portfolio of
municipal obligations issued by state and local government authorities or
certain U.S. territories.
In June 2009, the Financial Accounting Standards Board (FASB) established the
FASB Accounting Standards Codification(TM) (the "Codification") as the single
source of authoritative accounting principles recognized by the FASB in the
preparation of financial statements in conformity with generally accepted
accounting principles (GAAP). The Codification supersedes existing
non-grandfathered, non-SEC accounting and reporting standards. The Codification
did not change GAAP but rather organized it into a hierarchy where all guidance
within the Codification carries an equal level of authority. The Codification
became effective for financial statements issued for interim and annual periods
ending after September 15, 2009. The Codification did not have a material effect
on the Funds' financial statements.
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements in accordance with US
generally accepted accounting principles.
Nuveen Investments 91
| Notes to
| Financial Statements (continued)
Investment Valuation
Exchange-listed securities are generally valued at the last sales price on the
security exchange on which such securities are primarily traded. Securities
traded on a securities exchange for which there are no transactions on a given
day or securities not listed on a securities exchange are valued at the mean of
the closing bid and asked prices. Securities traded on NASDAQ are valued at the
NASDAQ Official Closing Price. 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. Prices of forward swap contracts are also provided
by an independent pricing service approved by each 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 or, in the
absence of a pricing service for a particular investment or derivative
instrument, the Board of Directors/Trustees of the Fund, or its designee, may
establish fair value using a wide variety of market data including yields or
prices of investments of comparable quality, type of issue, coupon, maturity and
rating, market quotes or indications of value from security dealers, evaluations
of anticipated cash flows or collateral, general market conditions and other
information and analysis, including the obligor's credit characteristics
considered relevant. Temporary investments in securities that have variable rate
and demand features qualifying them as short-term investments are valued at
amortized cost, which approximates value.
Investment Transactions
Investment transactions are recorded on a trade date basis. Realized gains and
losses from transactions are determined on the specific identification method.
Investments purchased on a when-issued/delayed delivery basis may have extended
settlement periods. Any investments so purchased are subject to market
fluctuation during this period. The Funds have instructed the custodian to
segregate assets with a current value at least equal to the amount of the
when-issued/delayed delivery purchase commitments. At October 31, 2009, Insured
Premium Income 2 (NPX) had outstanding when issued/delayed delivery purchase
commitments of $9,639,100. There were no such outstanding purchase commitments
in any of the other Funds.
Investment Income
Dividend income is recorded on the ex-dividend date. 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.
Income Taxes
Each Fund is a separate taxpayer for federal income tax purposes. Each Fund
intends to distribute substantially all of its 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. Net realized capital gains and ordinary income
distributions paid by the Funds are subject to federal taxation.
For all open tax years and all major taxing jurisdictions, management of the
Funds has concluded that there are no significant uncertain tax positions that
would require recognition in the financial statements. Open tax years are those
that are open for examination by taxing authorities (i.e., generally the last
four tax year ends and the interim tax period since then). Furthermore,
management of the Funds is also not aware of any tax positions for which it is
reasonably possible that the total amounts of unrecognized tax benefits will
significantly change in the next twelve months.
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 at least 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 US
generally accepted accounting principles.
Auction Rate Preferred Shares
The following Funds have issued and outstanding Auction Rate Preferred shares,
$25,000 stated value per share, as a means of effecting financial leverage. Each
Fund's Auction Rate 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. As of October 31, 2009, the number of
Auction Rate Preferred shares outstanding, by Series and in total, for each Fund
is as follows:
92 Nuveen Investments
PREMIER INSURED INSURED
INSURED INSURED INSURED DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Number of shares:
Series M 2,009 3,372 -- 1,247 --
Series T 2,010 3,372 -- 1,217 2,440
Series W 2,011 3,373 678 -- 2,440
Series W2 -- 2,698 -- -- 1,070**
Series W3 -- 1,510* -- -- --
Series TH 1,794 3,372 2,263 1,214 --
Series TH2 -- 3,374 -- -- --
Series TH3 -- 2,577* -- -- --
Series F 2,010 3,371 2,264 -- --
------------------------------------------------------------------------------------------------------------------------------------
Total 9,834 27,019 5,205 3,678 5,950
====================================================================================================================================
* Preferred shares issued in the Reorganization of Nuveen Florida Premium
Income Municipal Fund (NFL).
** Preferred shares issued in the Reorganization of Nuveen Insured Florida
Tax-Free Advantage Municipal Fund (NWF).
Beginning in February 2008, more shares for sale were submitted in the regularly
scheduled auctions for the Auction Rate Preferred shares issued by the Funds
than there were offers to buy. This meant that these auctions "failed to clear,"
and that many Auction Rate Preferred shareholders who wanted to sell their
shares in these auctions were unable to do so. Auction Rate Preferred
shareholders unable to sell their shares received distributions at the "maximum
rate" applicable to failed auctions as calculated in accordance with the
pre-established terms of the Auction Rate Preferred shares.
These developments have generally not affected the portfolio management or
investment policies of the Funds. However, one continuing implication of these
auction failures for Common shareholders is that the Funds' cost of leverage
likely has been incrementally higher at times than it otherwise might have been
had the auctions continued to be successful. As a result, the Funds' future
Common share earnings may likely haven been incrementally lower than they
otherwise might have been. As of October 31, 2009, the aggregate amount of
outstanding Auction Rate Preferred shares redeemed by 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)
----------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares redeemed,
at liquidation value $ 72,150,000 $ 115,525,000 $ 30,875,000 $ 268,900,000 $ 141,050,000 $ 24,250,000
==================================================================================================================================
Effective May 1, 2009, auction participation fees with respect to auctions that
have failed have been reduced from 25 bps (annualized) to 15 bps (annualized).
All auction participants have signed new agreements incorporating this change.
MuniFund Term Preferred Shares
During the fiscal year ended October 31, 2009, Insured Dividend Advantage (NVG)
issued $108,000,000 of 2.95%, Series 2014 MuniFund Term Preferred shares, with a
$10 liquidation value per share. Dividends, which are included as interest
expense for financial reporting purposes, will be paid monthly at a fixed annual
rate of 2.95%, subject to adjustment in certain circumstances. Proceeds from the
issuance of MuniFund Term Preferred shares, net of offering expenses, were used
to redeem a portion of the Fund's outstanding Auction Rate Preferred shares
totaling $106,125,000.
The Fund is obligated to redeem the MuniFund Term Preferred shares on November
1, 2014, unless earlier redeemed or repurchased by the Fund. MuniFund Term
Preferred shares are subject to optional and mandatory redemption in certain
circumstances. As of November 1, 2010, the MuniFund Term Preferred shares will
be subject to redemption at the option of the Fund, subject to payment of a
premium until November 1, 2011, and at par thereafter. The MuniFund Term
Preferred shares also will be subject to redemption, at the option of the Fund,
at par in the event of certain changes in the credit rating of the MuniFund Term
Preferred shares. The Fund may be obligated to redeem certain of the MuniFund
Term Preferred shares if the Fund fails to maintain certain asset coverage and
leverage ratio requirements and such failures are not cured by the applicable
cure date. The redemption price per share is equal to the sum of the liquidation
value per share plus any accumulated but unpaid dividends. The MuniFund Term
Preferred shares trade on the NYSE under the symbol "NVG Pr C."
During the period October 19, 2009 through October 31, 2009, the Fund had an
average balance of $105,538,462 MuniFund Term Preferred shares outstanding.
For financial reporting purposes only, the liquidation value of MuniFund Term
Preferred shares is recorded as a liability on the Statement of Assets and
Liabilities. Unpaid dividends on the MuniFund Term Preferred shares are
recognized as "Interest payable" on the Statement of Assets and Liabilities.
Nuveen Investments 93
| Notes to
| Financial Statements (continued)
Dividends paid on the MuniFund Term Preferred shares are included as a component
of "Interest expense and amortization of offering costs" on the Statement of
Operations.
Variable Rate Demand Preferred Shares
On August 7, 2008, Insured Premium Income 2 (NPX) issued 2,190 Series 1 Variable
Rate Demand Preferred shares, $100,000 liquidation value per share, in a
privately negotiated offering. Proceeds of this offering along with the proceeds
from the Fund's creation of tender option bonds (TOBs), also known as "floaters"
or floating rate obligations, were used to redeem all of the Fund's outstanding
Auction Rate Preferred shares totaling $268,900,000. The Variable Rate Demand
Preferred shares were offered to institutional buyers as defined pursuant to
Rule 144A under the Securities Act of 1933, have a maturity date of August 1,
2038 and include a liquidity feature that allows the Variable Rate Demand
Preferred shareholders to have their shares purchased by the liquidity provider
in the event that sell orders are not matched with purchase orders in a
remarketing. Dividends on the Variable Rate Demand Preferred shares (which are
treated as interest payments for financial reporting purposes) are set weekly at
a rate established by a remarketing agent; therefore, the liquidation value of
the Variable Rate Demand Preferred shares approximates fair value.
Subject to certain conditions, Variable Rate Demand Preferred shares may be
redeemed, in whole or in part, at any time at the option of the Fund. The Fund
may also redeem certain of the Variable Rate Demand Preferred shares if the Fund
fails to maintain certain asset coverage requirements and such failures are not
cured by the applicable cure date. The redemption price per share is equal to
the sum of the liquidation value per share plus any accumulated but unpaid
dividends.
Insured Premium Income 2 (NPX) had all $219,000,000 of its Variable Rate Demand
Preferred shares outstanding during the fiscal year ended October 31, 2009, with
an annualized interest rate of 0.73%.
For financial reporting purposes only, the liquidation value of Variable Rate
Demand Preferred shares is recorded as a liability on the Statement of Assets
and Liabilities and the dividends paid on the Variable Rate Demand Preferred
shares are included as a component of "Interest expense and amortization of
offering costs" on the Statement of Operations. In addition to interest expense,
the Fund also paid a per annum liquidity fee which is recognized as "Liquidity
fees" on the Statement of Operations.
Insurance
Except to the extent that each of Insured Quality (NQI), Insured Opportunity
(NIO) and Insured Premium Income 2 (NPX) invests in temporary investments, all
of the net assets of each Fund will be invested in municipal securities that are
covered by insurance guaranteeing the timely payment of principal and interest
or backed by an escrow or trust account containing sufficient U.S. Government or
U.S. Government agency securities to ensure timely payment of principal and
interest. Insurers must have a claims paying ability rated "Aaa" by Moody's or
"AAA" by Standard & Poor's. Municipal securities backed by an escrow account or
trust account will not constitute more than 20% of each Fund's net assets.
Under normal circumstances, Premier Insured Income (NIF), Insured Dividend
Advantage (NVG) and Insured Tax-Free Advantage (NEA) invest at least 80% of
their net assets, (as defined in Footnote 7 - Management Fees and Other
Transactions with Affiliates) in municipal securities that are covered by
insurance guaranteeing the timely payment of principal and interest. For
purposes of this 80% test, insurers must have a claims paying ability rated at
least "A" at the time of purchase by at least one independent rating agency. In
addition, each of Premier Insured Income (NIF), Insured Dividend Advantage (NVG)
and Insured Tax-Free Advantage (NEA) invests at least 80% of its net assets in
municipal securities that are rated at least "AA" at the time of purchase (based
on the higher of the rating of the insurer, if any, or the underlying security)
by at least one independent rating agency, or are unrated but judged to be of
similar credit quality by Nuveen Asset Management (the "Adviser"), a wholly
owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), or are backed by an
escrow or trust account containing sufficient U.S. Government or U.S. Government
agency securities or U.S. Treasury-issued State and Local Government Series
(SLGS) securities to ensure timely payment of principal and interest. Inverse
floating rate securities whose underlying bonds are covered by insurance are
included for purposes of the 80% test. Each of Premier Insured Income (NIF),
Insured Dividend Advantage (NVG) and Insured Tax-Free Advantage (NEA) may also
invest up to 20% of its net assets in municipal securities rated below "AA" but
at least "BBB" (based on the higher rating of the insurer, if any, or the
underlying bond) or are 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.
94 Nuveen Investments
Inverse Floating Rate Securities
Each Fund is authorized to invest in inverse floating rate securities. An
inverse floating rate security is created by depositing a municipal bond,
typically with a fixed interest rate, into a special purpose trust created by a
broker-dealer. In turn, this trust (a) issues floating rate certificates, in
face amounts equal to some fraction of the deposited bond's par amount or market
value, that typically pay short-term tax-exempt interest rates to third parties,
and (b) issues to a long-term investor (such as one of the Funds) an inverse
floating rate certificate (sometimes referred to as an "inverse floater") that
represents all remaining or residual interest in the trust. The income received
by the inverse floater holder varies inversely with the short-term rate paid to
the floating rate certificates' holders, and in most circumstances the inverse
floater holder bears substantially all of the underlying bond's downside
investment risk and also benefits disproportionately from any potential
appreciation of the underlying bond's value. The price of an inverse floating
rate security will be more volatile than that of the underlying bond because the
interest rate is dependent on not only the fixed coupon rate of the underlying
bond but also on the short-term interest paid on the floating rate certificates,
and because the inverse floating rate security essentially bears the risk of
loss of the greater face value of the underlying bond.
A Fund may purchase an inverse floating rate security in a secondary market
transaction without first owning the underlying bond (referred to as an
"externally-deposited inverse floater"), or instead by first selling a
fixed-rate bond to a broker-dealer for deposit into the special purpose trust
and receiving in turn the residual interest in the trust (referred to as a
"self-deposited inverse floater"). The inverse floater held by a Fund gives the
Fund the right (a) to cause the holders of the floating rate certificates to
tender their notes at par, and (b) to have the broker transfer the fixed-rate
bond held by the trust to the Fund, thereby collapsing the trust. An investment
in an externally-deposited inverse floater is identified in the Portfolio of
Investments as "(IF) - Inverse floating rate investment." An investment in a
self-deposited inverse floater is accounted for as a financing transaction. In
such instances, a fixed-rate bond deposited into a special purpose trust is
identified in the Portfolio of Investments as "(UB) - Underlying bond of an
inverse floating rate trust reflected as a financing transaction," with the Fund
accounting for the short-term floating rate certificates issued by the trust as
"Floating rate obligations" on the Statement of Assets and Liabilities. In
addition, the Fund reflects in "Investment Income" the entire earnings of the
underlying bond and recognizes the related interest paid to the holders of the
short-term floating rate certificates as "Interest expense and amortization of
offering costs" on the Statement of Operations.
During the fiscal year ended October 31, 2009, each Fund invested in
externally-deposited inverse floaters and/or self-deposited inverse floaters.
Each Fund may also enter into shortfall and forbearance agreements (sometimes
referred to as a "recourse trust" or "credit recovery swap") (such agreements
referred to herein as "Recourse Trusts") with a broker-dealer by which a Fund
agrees to reimburse the broker-dealer, in certain circumstances, for the
difference between the liquidation value of the fixed-rate bond held by the
trust and the liquidation value of the floating rate certificates issued by the
trust plus any shortfalls in interest cash flows. Under these agreements, a
Fund's potential exposure to losses related to or on inverse floaters may
increase beyond the value of a Fund's inverse floater investments as a Fund may
potentially be liable to fulfill all amounts owed to holders of the floating
rate certificates. At period end, any such shortfall is recognized as
"Unrealized depreciation on Recourse Trusts" on the Statement of Assets and
Liabilities.
At October 31, 2009, each Fund's maximum exposure to externally-deposited
Recourse Trusts, 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)
-----------------------------------------------------------------------------------------------------------------------------------
Maximum exposure to Recourse Trusts $ 19,941,650 $ 20,430,000 $ 8,070,000 $ 11,290,000 $ -- $ 6,665,000
===================================================================================================================================
The average floating rate obligations outstanding and average annual interest
rate and fees related to self-deposited inverse floaters during the fiscal year
ended October 31, 2009, were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
-----------------------------------------------------------------------------------------------------------------------------------
Average floating rate obligations
outstanding $ 59,245,479 $ 130,965,566 $ 22,183,301 $ 70,952,082 $ 23,153,142 $ 12,766,726
Average annual interest rate and fees .91% .91% .90% .91% .90% .99%
===================================================================================================================================
Forward Swap Contracts
Each Fund is authorized to enter into forward interest rate swap contracts
consistent with their investment objectives and policies to reduce, increase or
otherwise alter its risk profile or to alter its portfolio characteristics (i.e.
duration, yield curve positioning and credit quality).
Each Fund is subject to interest rate risk in the normal course of pursuing its
investment objectives. Each Fund's use of forward interest rate swap
transactions is intended to help the Fund manage its overall interest rate
sensitivity, either shorter or longer, generally to more closely align the
Fund's interest rate sensitivity with that of the broader municipal market.
Forward interest rate swap transactions involve each Fund's agreement with a
counterparty to pay, in the future, a fixed or variable rate payment in exchange
for the counterparty paying the Fund a variable or fixed rate payment, the
accruals for which would begin at a specified date in the future (the "effective
date"). The amount of the payment obligation is based on the
Nuveen Investments 95
| Notes to
| Financial Statements (continued)
notional amount of the swap contract and the termination date of the swap (which
is akin to a bond's maturity). The value of the Fund's swap commitment would
increase or decrease based primarily on the extent to which long-term interest
rates for bonds having a maturity of the swap's termination date increases or
decreases. Forward interest rate swap contracts are valued daily. The net amount
recorded on these transactions for each counterparty is recognized on the
Statement of Assets and Liabilities as "Unrealized appreciation or depreciation
on forward swaps" with the change during the fiscal period recognized on the
Statement of Operations as "Change in net unrealized appreciation (depreciation)
of forward swaps."
The Funds may terminate a swap contract prior to the effective date, at which
point a realized gain or loss is recognized. When a forward swap is terminated,
it ordinarily does not involve the delivery of securities or other underlying
assets or principal, but rather is settled in cash on a net basis. Net realized
gains and losses during the fiscal period are recognized on the Statement of
Operations as "Net realized gain (loss) from forward swaps." 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. Insured Dividend Advantage (NVG) was the only Fund to invest in
forward interest rate swap transactions during the fiscal year ended October 31,
2009.
The average notional amount of forward swap contracts outstanding during the
fiscal year ended October 31, 2009, was as follows:
INSURED
DIVIDEND
ADVANTAGE
(NVG)
--------------------------------------------------------------------------------
Average notional amount of forward swap contracts outstanding $ 5,050,000*
================================================================================
* The average notional amount is calculated based on the outstanding
notional amount at the beginning of the fiscal year and at the end of each
fiscal quarter within the current fiscal year. The Fund was not invested
in forward swap contracts at the end of the current fiscal year.
Refer to Footnote 3 - Derivative Instruments and Hedging Activities for further
details on swap contract activity.
Market and Counterparty Credit Risk
In the normal course of business each Fund may invest in financial instruments
and enter into financial transactions where risk of potential loss exists due to
changes in the market (market risk) or failure of the other party to the
transaction to perform (counterparty credit risk). The potential loss could
exceed the value of the financial assets recorded on the financial statements.
Financial assets, which potentially expose each Fund to counterparty credit
risk, consist principally of cash due from counterparties on forward, option and
swap transactions. The extent of each Fund's exposure to counterparty credit
risk in respect to these financial assets approximates their carrying value as
recorded on the Statement of Assets and Liabilities. Futures contracts expose a
Fund to minimal counterparty credit risk as they are exchange traded and the
exchange's clearinghouse, which is counterparty to all exchange traded futures,
guarantees the futures contracts against default.
Each Fund helps manage counterparty credit risk by entering into agreements only
with counterparties the Adviser believes have the financial resources to honor
their obligations and by having the Adviser monitor the financial stability of
the counterparties. Additionally, counterparties may be required to pledge
collateral daily (based on the daily valuation of the financial asset) on behalf
of each Fund with a value approximately equal to the amount of any unrealized
gain above a pre-determined threshold. Reciprocally, when each Fund has an
unrealized loss, 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 valuations fluctuate, either
up or down, by at least the predetermined threshold amount.
Zero Coupon Securities
Each Fund is authorized to invest in zero coupon securities. A zero coupon
security does not pay a regular interest coupon to its holders during the life
of the security. Tax-exempt income to the holder of the security comes from
accretion of the difference between the original purchase price of the security
at issuance and the par value of the security at maturity and is effectively
paid at maturity. Such securities are included in the Portfolios of Investments
with a 0.000% coupon rate in their description. The market prices of zero coupon
securities generally are more volatile than the market prices of securities that
pay interest periodically.
Offering Costs
Costs incurred by Insured Premium Income 2 (NPX) in connection with its offering
of the Variable Rate Demand Preferred shares ($2,535,000) were recorded as a
deferred charge which will be amortized over the 30-year life of the shares.
Costs incurred by Insured Dividend Advantage (NVG) in connection with its
offering of the MuniFund Preferred shares ($1,875,000) were recorded as a
deferred charge which will be amortized over the 5-year life of the shares. Each
Fund's amortized deferred charges are included as a component of "Interest
expense and amortization of offering costs" on the Statement of Operations.
96 Nuveen Investments
Custodian Fee Credit
Each Fund has an arrangement with the custodian bank whereby certain custodian
fees and expenses are reduced by net credits earned on each Fund's cash on
deposit with the bank. Such deposit arrangements are an alternative to overnight
investments. Credits for cash balances may be offset by charges for any days on
which a Fund overdraws its account at the custodian bank.
Indemnifications
Under the Funds' organizational documents, their Officers and Directors/Trustees
are indemnified against certain liabilities arising out of the performance of
their duties to the Funds. In addition, in the normal course of business, the
Funds enter into contracts that provide general indemnifications to other
parties. The Funds' maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
Use of Estimates
The preparation of financial statements in conformity with US 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. FAIR VALUE MEASUREMENTS
During the current fiscal period, the Funds adopted authoritative guidance under
GAAP on determining fair value measurements. This guidance defines fair value,
establishes a framework for measuring fair value in GAAP and expands disclosure
about fair value measurements. In determining the value of each Fund's
investments various inputs are used. These inputs are summarized in the three
broad levels listed below:
Level 1 - Quoted prices in active markets for identical securities.
Level 2 - Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, etc.).
Level 3 - Significant unobservable inputs (including management's
assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of
the risk associated with investing in those securities. The following is a
summary of each Fund's fair value measurements as of October 31, 2009:
INSURED QUALITY (NQI) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 812,346,224 $ -- $ 812,346,224
=================================================================================================================================
INSURED OPPORTUNITY (NIO) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 2,115,920,805 $ -- $ 2,115,920,805
Short-Term Investments -- 13,367,000 -- 13,367,000
---------------------------------------------------------------------------------------------------------------------------------
Total $ -- $ 2,129,287,805 $ -- $ 2,129,287,805
=================================================================================================================================
PREMIER INSURED INCOME (NIF) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 422,940,908 $ -- $ 422,940,908
=================================================================================================================================
INSURED PREMIUM INCOME 2 (NPX) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 748,810,257 $ -- $ 748,810,257
=================================================================================================================================
INSURED DIVIDEND ADVANTAGE (NVG) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 656,829,129 $ -- $ 656,829,129
Investment Companies 1,232,049 -- -- 1,232,049
---------------------------------------------------------------------------------------------------------------------------------
Total $ 1,232,049 $ 656,829,129 $ -- $ 658,061,178
=================================================================================================================================
INSURED TAX-FREE ADVANTAGE (NEA) LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
---------------------------------------------------------------------------------------------------------------------------------
Investments:
Municipal Bonds $ -- $ 471,555,537 $ -- $ 471,555,537
Short-Term Investments -- 3,790,000 -- 3,790,000
---------------------------------------------------------------------------------------------------------------------------------
Total $ -- $ 475,345,537 $ -- $ 475,345,537
=================================================================================================================================
Nuveen Investments 97
| Notes to
| Financial Statements (continued)
3. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
During the current fiscal period, the Funds adopted amendments to authoritative
guidance under GAAP on disclosures about derivative instruments and hedging
activities. This guidance is intended to enhance financial statement disclosures
for derivative instruments and hedging activities and enable investors to better
understand: a) how and why a fund uses derivative instruments; b) how derivative
instruments are accounted for; and c) how derivative instruments affect a fund's
financial position, results of operations and cash flows, if any. The Funds
record derivative instruments at fair value with changes in fair value
recognized on the Statement of Operations, when applicable. Even though the
Funds' investments in derivatives may represent economic hedges, under this
guidance they are considered to be non-hedge transactions for financial
reporting purposes. For additional information on the derivative instruments in
which each Fund was invested during and at the end of the reporting period,
refer to the Portfolio of Investments, Financial Statements and Footnote 1 -
General Information and Significant Accounting Policies.
The following tables present the amount of net realized gain (loss) and change
in net unrealized appreciation (depreciation) recognized for the fiscal year
ended October 31, 2009, on derivative instruments, as well as the primary risk
exposure associated with each. Insured Dividend Advantage (NVG) invested in
derivative instruments during the fiscal year ended October 31, 2009. None of
the Funds had derivative contracts outstanding at October 31, 2009.
INSURED
DIVIDEND
ADVANTAGE
NET REALIZED GAIN (LOSS) FROM FORWARD SWAPS (NVG)
--------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ 5,000,000
================================================================================
INSURED
DIVIDEND
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ADVANTAGE
OF FORWARD SWAPS (NVG)
--------------------------------------------------------------------------------
RISK EXPOSURE
Interest Rate $ (1,124,391)
================================================================================
4. FUND SHARES
Common 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
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
---------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued in the Reorganization -- -- 14,451,767* -- -- --
Issued to shareholders due to
reinvestment of distributions 11,552 -- -- -- -- --
Repurchased -- -- -- -- -- --
===========================================================================================================================
Weighted average Common share:
Price per share repurchased -- -- -- -- -- --
Discount per share repurchased -- -- -- -- -- --
===========================================================================================================================
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
10/31/09 10/31/08 10/31/09 10/31/08 10/31/09 10/31/08
------------------------------------------------------------------------------------------------------------------------------------
Common shares:
Issued in the Reorganization -- -- -- -- 3,728,205** --
Issued to shareholders due to
reinvestment of distributions -- -- -- -- -- 2,432
Repurchased -- -- (10,400) -- (19,300) --
------------------------------------------------------------------------------------------------------------------------------------
-- -- (10,400) -- 3,708,905 2,432
====================================================================================================================================
Weighted average Common share:
Price per share repurchased -- -- $ 11.53 -- $ 10.98 --
Discount per share repurchased -- -- 16.82% -- 18.03% --
====================================================================================================================================
* Common shares issued in the Reorganization of Florida Premium Income
(NFL).
** Common shares issued in the Reorganization of Insured Florida Tax-Free
Advantage (NWF).
98 Nuveen Investments
Preferred Shares
Transactions in Auction Rate Preferred shares were as follows:
INSURED QUALITY (NQI) INSURED OPPORTUNITY (NIO)
---------------------------------------------- ----------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
-----------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
issued in the Reorganization:
Series W3 -- $ -- -- $ -- 1,510* $ 37,750,000* -- $ --
Series TH3 -- -- -- -- 2,577* 64,425,000* -- --
------------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- 4,087 102,175,000 -- --
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed/and or noticed
for redemption:
Series M (431) (10,775,000) (160) (4,000,000) (294) (7,350,000) (334) (8,350,000)
Series T (430) (10,750,000) (160) (4,000,000) (294) (7,350,000) (334) (8,350,000)
Series W (429) (10,725,000) (160) (4,000,000) (294) (7,350,000) (333) (8,325,000)
Series W2 -- -- -- -- (236) (5,900,000) (266) (6,650,000)
Series TH (383) (9,575,000) (143) (3,575,000) (295) (7,375,000) (333) (8,325,000)
Series TH2 -- -- -- -- (294) (7,350,000) (332) (8,300,000)
Series F (430) (10,750,000) (160) (4,000,000) (295) (7,375,000) (334) (8,350,000)
------------------------------------------------------------------------------------------------------------------------------------
(2,103) (52,575,000) (783) (19,575,000) (2,002) (50,050,000) (2,266) (56,650,000)
------------------------------------------------------------------------------------------------------------------------------------
Total (2,103) $ (52,575,000) (783) $ (19,575,000) 2,085 $ 52,125,000 (2,266) $ (56,650,000)
====================================================================================================================================
PREMIER INSURED INCOME (NIF) INSURED PREMIUM INCOME 2 (NPX)
---------------------------------------------- ----------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
-----------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed/and or noticed
for redemption:
Series M -- $ -- -- $ -- N/A N/A (2,080) $ (52,000,000)
Series T -- -- -- -- N/A N/A (2,200) (55,000,000)
Series W (130) (3,250,000) (32) (800,000) N/A N/A (2,080) (52,000,000)
Series TH (432) (10,800,000) (105) (2,625,000) N/A N/A (2,200) (55,000,000)
Series F (431) (10,775,000) (105) (2,625,000) N/A N/A (2,196) (54,900,000)
------------------------------------------------------------------------------------------------------------------------------------
Total (993) $ (24,825,000) (242) $ (6,050,000) (10,756) $(268,900,000)
====================================================================================================================================
INSURED DIVIDEND ADVANTAGE (NVG) INSURED TAX-FREE ADVANTAGE (NEA)
---------------------------------------------- ------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
10/31/09 10/31/08 10/31/09 10/31/08
-------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
issued in the Reorganization
Series W2 -- $ -- -- $ -- 1,070** $ 26,750,000** -- $ --
------------------------------------------------------------------------------------------------------------------------------------
Auction Rate Preferred shares
redeemed/and or noticed for
redemption:
Series M (1,832) (45,800,000) (81) (2,025,000) -- -- -- --
Series T (1,783) (44,575,000) (80) (2,000,000) (216) (5,400,000) (224) (5,600,000)
Series W -- -- -- -- (216) (5,400,000) (224) (5,600,000)
Series TH (1,786) (44,650,000) (80) (2,000,000) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
(5,401) (135,025,000) (241) (6,025,000) (432) (10,800,000) (448) (11,200,000)
------------------------------------------------------------------------------------------------------------------------------------
Total (5,401) $(135,025,000) (241) $ (6,025,000) 638 $ 15,950,000 (448) $ (11,200,000)
====================================================================================================================================
* Preferred shares issued in the Reorganization of Insured Florida Premium
Income (NFL). Prior to the Reorganization, Insured Florida Premium Income
(NFL) redeemed 130 and 233 Series W and TH shares, respectively, in the
amounts of $3,250,000 and $5,575,000, respectively.
** Preferred shares issued in the Reorganization of Insured Florida Tax-Free
Advantage (NWF). Prior to the Reorganization, Insured Florida Tax-Free
Advantage (NWF) redeemed 90 Series W shares in the amount of $2,250,000.
N/A - Insured Premium Income 2 (NPX) redeemed all $268,900,000 of its Auctioned
Rate Preferred shares during the fiscal year ended October 31, 2008.
Nuveen Investments 99
| Notes to
| Financial Statements (continued)
Transactions in MuniFund Term Preferred shares were as follows:
INSURED DIVIDEND ADVANTAGE (NVG)
-----------------------------------------------------------
YEAR ENDED YEAR ENDED
10/31/09 10/31/08
-----------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------------------------------------------------------
MuniFund Term Preferred shares issued:
Series 2014 10,800,000 $ 108,000,000 N/A N/A
===============================================================================================================
N/A - The Fund was not authorized to issue MuniFund Term Preferred shares prior
to October 14, 2009.
Transactions in Variable Rate Demand Preferred shares were as follows:
INSURED PREMIUM INCOME 2 (NPX)
-------------------------------------------------------------
YEAR ENDED YEAR ENDED
10/31/09 10/31/08
-------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-----------------------------------------------------------------------------------------------------------------
Variable Rate Demand Preferred shares issued:
Series 1 -- $ -- 2,190 $ 219,000,000
=================================================================================================================
5. INVESTMENT TRANSACTIONS
Purchases and sales (including maturities but excluding short-term investments
and derivative transactions) during the fiscal year ended October 31, 2009, 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 $ 33,494,698 $ 149,227,193 $ 7,827,269 $ 51,097,265 $ 54,939,494 $ 26,001,259
Sales and maturities 49,494,596 134,298,263 27,451,051 56,234,011 54,839,751 23,507,929
=================================================================================================================================
6. INCOME TAX INFORMATION
The following information is presented on an income tax basis. Differences
between amounts for financial statement and federal income tax purposes are
primarily due to timing differences in recognizing taxable market discount,
timing differences in recognizing certain gains and losses on investment
transactions and the treatment of investments in inverse floating rate
securities reflected as financing transactions, if any. To the extent that
differences arise that are permanent in nature, such amounts are reclassified
within the capital accounts on the Statement of Assets and Liabilities presented
in the annual report, based on their federal tax basis treatment; temporary
differences do not require reclassification. Temporary and permanent differences
do not impact the net asset values of the Funds.
At October 31, 2009, 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 $ 766,717,007 $ 1,969,110,378 $ 388,417,286 $694,108,005 $ 617,566,695 $ 452,725,429
====================================================================================================================================
Gross unrealized appreciation and gross unrealized depreciation of investments
at October 31, 2009, 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 $ 30,169,463 $ 89,085,758 $ 19,069,676 $ 25,113,399 $ 36,832,979 $ 21,214,101
Depreciation (43,683,038) (63,734,040) (10,220,324) (28,391,535) (24,752,533) (11,633,338)
------------------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation
(depreciation) of investments $ (13,513,575) $ 25,351,718 $ 8,849,352 $ (3,278,136) $ 12,080,446 $ 9,580,763
====================================================================================================================================
100 Nuveen Investments
The tax components of undistributed net tax-exempt income, net ordinary income
and net long-term capital gains at October 31, 2009, the Funds' tax year end,
were as follows:
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
(NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Undistributed net tax-exempt income * $ 7,130,915 $ 19,121,578 $ 4,578,949 $ 5,048,068 $ 6,280,025 $ 4,510,076
Undistributed net ordinary income ** 746 -- 96 157 -- 54
Undistributed net long-term
capital gains -- -- -- -- 1,311,770 --
====================================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced
for the dividend declared on October 1, 2009, paid on November 2, 2009.
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
The tax character of distributions paid during the Funds' tax years ended
October 31, 2009 and October 31, 2008, 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
2009 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income*** $ 30,908,983 $ 61,377,271 $ 15,125,146 $ 26,240,993 $ 24,084,927 $ 14,021,812
Distributions from net
ordinary income ** -- 118,143 -- -- -- --
Distributions from net long-term
capital gains**** -- -- -- -- -- --
====================================================================================================================================
PREMIER INSURED INSURED INSURED
INSURED INSURED INSURED PREMIUM DIVIDEND TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE ADVANTAGE
2008 (NQI) (NIO) (NIF) (NPX) (NVG) (NEA)
------------------------------------------------------------------------------------------------------------------------------------
Distributions from net tax-exempt
income $ 39,541,469 $ 81,436,577 $ 18,358,222 $ 32,147,770 $ 29,301,122 $ 18,112,355
Distributions from net ordinary
income ** -- 4,243 -- 290,759 -- 49,701
Distributions from net long-term
capital gains -- 211,271 -- -- -- --
====================================================================================================================================
** Net ordinary income consists of taxable market discount income and net
short-term capital gains, if any.
*** The Funds hereby designate these amounts paid during the fiscal year ended
October 31, 2009, as Exempt Interest Dividends.
**** The Funds designated as a long-term capital gain dividend, pursuant to the
Internal Revenue Code Section 852(b)(3), the amount necessary to reduce
earnings and profits of the Funds related to net capital gain to zero for
the tax year ended October 31, 2009.
At October 31, 2009, the Funds' tax year end, the following Funds had unused
capital loss carryforwards available for federal income tax purposes to be
applied against future capital gains, if any. If not applied, the carryforwards
will expire as follows:
PREMIER INSURED INSURED
INSURED INSURED INSURED PREMIUM TAX-FREE
QUALITY OPPORTUNITY INCOME INCOME 2 ADVANTAGE
(NQI) (NIO)* (NIF) (NPX) (NEA)*
----------------------------------------------------------------------------------------------------------------------
Expiration:
October 31, 2010 $ -- $ -- $ -- $ -- $ 772,428
October 31, 2011 -- -- -- -- 97,429
October 31, 2012 -- -- -- -- 236,625
October 31, 2013 -- -- -- -- 4,418,633
October 31, 2014 731,585 -- -- -- --
October 31, 2015 -- 1,075,228 52,137 -- 174,026
October 31, 2016 3,901,375 7,511,676 2,437,248 6,922,132 1,917,479
October 31, 2017 217,917 -- -- 456,587 --
----------------------------------------------------------------------------------------------------------------------
Total $ 4,850,877 $ 8,586,904 $ 2,489,385 $ 7,378,719 $ 7,616,620
======================================================================================================================
* A portion of Insured Opportunity's (NIO) and Insured Tax-Free Advantage's
(NEA) capital loss carryforward is subject to an annual limitation under
the Internal Revenue Code and related regulations.
Nuveen Investments 101
| Notes to
| Financial Statements (continued)
7. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Each Fund's management fee is separated into two components - a complex-level
component, based on the aggregate amount of all fund assets managed by the
Adviser, and a specific fund-level component, based only on the amount of assets
within each individual Fund. This pricing structure enables Nuveen fund
shareholders to benefit from growth in the assets within each individual fund as
well as from growth in the amount of complex-wide assets managed by the Adviser.
The annual fund-level fee, payable monthly, for each Fund is based upon the
average daily net assets of each Fund as follows:
INSURED QUALITY (NQI)
INSURED OPPORTUNITY (NIO)
PREMIER INSURED INCOME (NIF)
INSURED PREMIUM INCOME 2 (NPX)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For the next $3 billion .3875
For net assets over $5 billion .3750
================================================================================
INSURED DIVIDEND ADVANTAGE (NVG)
INSURED TAX-FREE ADVANTAGE (NEA)
AVERAGE DAILY NET ASSETS (1) FUND-LEVEL FEE RATE
--------------------------------------------------------------------------------
For the first $125 million .4500%
For the next $125 million .4375
For the next $250 million .4250
For the next $500 million .4125
For the next $1 billion .4000
For net assets over $2 billion .3750
================================================================================
The annual complex-level fee, payable monthly, which is additive to the
fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the
aggregate amount of total fund net assets managed as stated in the following
table. As of October 31, 2009, the complex-level fee rate was .1907%.
The complex-level fee schedule is as follows:
EFFECTIVE RATE AT
COMPLEX-LEVEL NET ASSET BREAKPOINT LEVEL (1) BREAKPOINT LEVEL
--------------------------------------------------------------------------------
$55 billion .2000%
$56 billion .1996
$57 billion .1989
$60 billion .1961
$63 billion .1931
$66 billion .1900
$71 billion .1851
$76 billion .1806
$80 billion .1773
$91 billion .1691
$125 billion .1599
$200 billion .1505
$250 billion .1469
$300 billion .1445
================================================================================
(1) The complex-level fee component of the management fee for the funds is
calculated based upon the aggregate daily managed net assets of all Nuveen
funds, with such daily managed net assets defined separately for each fund
in its management agreement, but excluding assets attributable to
investments in other Nuveen funds. For the complex-level and fund-level
fee components, daily managed net assets include assets managed by the
Adviser that are attributable to financial leverage. For these purposes,
financial leverage includes the funds use of preferred stock and
borrowings and investments in the residual interest certificates (also
called inverse floating rate securities) in tender option bond (TOB)
trusts, including the portion of assets held by the TOB trust that has
been effectively financed by the trust's issuance of floating rate
securities, subject to an agreement by the Adviser to limit the amount of
such assets for determining managed net assets in certain circumstances.
102 Nuveen Investments
The management fee compensates the Adviser for overall investment advisory and
administrative services and general office facilities. The Funds pay no
compensation directly to those of its Directors/Trustees who are affiliated with
the Adviser or to its Officers, all of whom receive remuneration for their
services to the Funds from the Adviser or its affiliates. The Board of
Directors/Trustees has adopted a deferred compensation plan for independent
Directors/Trustees that enables Directors/Trustees to elect to defer receipt of
all or a portion of the annual compensation they are entitled to receive from
certain Nuveen advised funds. Under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of select Nuveen advised
funds.
For the first ten years of Insured Dividend Advantage's (NVG) operations, the
Adviser has agreed to reimburse the Fund, as a percentage of average daily net
assets, 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, 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.
8. NEW ACCOUNTING STANDARDS
Accounting for Transfers of Financial Assets
During June 2009, the FASB issued changes to the authoritative guidance under
GAAP on accounting for transfers of financial assets. The objective of this
guidance is to improve the relevance, representational faithfulness, and
comparability of the information that a reporting entity provides in its
financial statements about a transfer of financial assets; the effects of a
transfer on its financial position, financial performance, and cash flows; and a
transferor's continuing involvement, if any, in transferred financial assets.
This guidance is effective as of the beginning of each reporting entity's first
annual reporting period that begins after November 15, 2009, for interim periods
within that first annual reporting period and for interim and annual reporting
periods thereafter. Earlier application is prohibited. The recognition and
measurement provisions of this guidance must be applied to transfers occurring
on or after the effective date. Additionally, the disclosure provisions of this
guidance should be applied to transfers that occurred both before and after the
effective date of this guidance. At this time, management is evaluating the
implications of this guidance and the impact it will have on the financial
statement amounts and disclosures, if any.
9. SUBSEQUENT EVENTS
Distributions to Common Shareholders
The Funds declared Common share dividend distributions from their tax-exempt net
investment income which were paid on December 1, 2009, to shareholders of record
on November 15, 2009, 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 $ .0680 $ .0665 $ .0660 $ .0610 $ .0700 $ .0650
====================================================================================================================================
Nuveen Investments 103
| Notes to
| Financial Statements (continued)
Distributions to MuniFund Term Preferred Shareholders
Insured Dividend Advantage (NVG) declared its initial dividend distribution of
$0.34417 which was paid on December 1, 2009, to shareholders of record on
November 15, 2009.
MuniFund Term Preferred Shares
Subsequent to the reporting period, Insured Tax-Free Advantage (NEA) filed with
the Securities and Exchange Commission (SEC) a registration statement seeking to
register MuniFund Term Preferred shares. This registration statement declared
effective by the SEC, enables the Fund to issue to the public shares of MuniFund
Term Preferred to refinance all or a portion of Insured Tax-Free Advantage's
(NEA) auction rate preferred shares. The issuance of MuniFund Term Preferred
shares by Insured Tax-Free Advantage (NEA) is subject to market conditions.
There is no assurance that MuniFund Term Preferred shares will be issued.
Evaluation Date
In May 2009, the FASB issued changes to authoritative guidance under GAAP for
subsequent events. This guidance requires an entity to recognize in the
financial statements the effects of all subsequent events that provide
additional evidence about conditions that existed at the date of the balance
sheet. This guidance is intended to establish general standards of accounting
and for disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. This guidance
requires the disclosure of the date through which an entity has evaluated
subsequent events and the basis for that date - that is, whether that date
represents the date the financial statements were issued or were available to be
issued. This guidance is effective for interim and annual periods ending after
June 15, 2009. The Funds have performed an evaluation of subsequent events
through December 28, 2009, which is the date the financial statements were
issued.
104 Nuveen Investments
| Financial
| Highlights
Nuveen Investments 105
| Financial
| Highlights
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 11.68 $ .99 $ 1.76 $ (.06) $ -- $ 2.69
2008 14.88 .99 (3.16) (.30) -- (2.47)
2007 15.40 .99 (.49) (.29) -- .21
2006 15.31 .99 .24 (.25) (.01) .97
2005 15.85 1.03 (.39) (.16) -- .48
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 12.39 .96 1.66 (.06) -- 2.56
2008 15.04 .97 (2.62) (.30) --*** (1.95)
2007 15.57 .98 (.45) (.30) (.01) .22
2006 15.46 .98 .34 (.24) (.03) 1.05
2005 16.06 1.01 (.50) (.16) -- .35
====================================================================================================================================
LESS DISTRIBUTIONS
--------------------------------------------------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
------------------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (.76) $ -- $ (.76) $ 13.61 $ 13.30
2008 (.73) -- (.73) 11.68 11.15
2007 (.73) -- (.73) 14.88 13.61
2006 (.80) (.08) (.88) 15.40 14.83
2005 (.97) (.05) (1.02) 15.31 15.31
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.73) -- (.73) 14.22 12.98
2008 (.70) --*** (.70) 12.39 11.15
2007 (.73) (.02) (.75) 15.04 13.56
2006 (.80) (.14) (.94) 15.57 14.75
2005 (.92) (.03) (.95) 15.46 14.52
==================================================================================================================
AUCTION RATE 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:
2009 $ 245,850 $ 25,000 $ 78,001
2008 298,425 25,000 62,485
2007 318,000 25,000 69,808
2006 318,000 25,000 71,378
2005 318,000 25,000 71,052
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------
Year Ended 10/31:
2009 675,475 25,000 75,292
2008 623,350 25,000 65,315
2007 680,000 25,000 69,864
2006 680,000 25,000 71,440
2005 680,000 25,000 71,126
==============================================================================
106 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------------------- ---------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
------------------------------------------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 26.98% 23.65% $ 521,216 1.32% 1.21% 7.86%
2008 (13.35) (17.24) 447,463 1.49 1.23 7.03
2007 (3.48) 1.38 569,958 1.52 1.18 6.53
2006 2.76 6.53**** 589,928 1.20 1.20 6.49
2005 2.11 3.09 585,777 1.19 1.19 6.58
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 23.62 21.18 1,358,844 1.29 1.18 7.36
2008 (13.17) (13.45) 1,005,218 1.43 1.19 6.76
2007 (3.18) 1.49 1,220,297 1.41 1.16 6.39
2006 8.26 7.05**** 1,263,172 1.17 1.17 6.38
2005 (3.72) 2.21 1,254,638 1.16 1.16 6.35
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
--------------------------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------
INSURED QUALITY (NQI)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.32% 1.21% 7.86% 4%
2008 1.49 1.23 7.03 7
2007 1.52 1.18 6.53 5
2006 1.20 1.20 6.49 13
2005 1.19 1.19 6.58 21
INSURED OPPORTUNITY (NIO)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.29 1.18 7.36 8
2008 1.43 1.19 6.76 9
2007 1.41 1.16 6.39 5
2006 1.17 1.17 6.38 13
2005 1.16 1.16 6.35 25
================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in calculation. Total returns are not annualized.
** After expense reimbursement from Adviser, where applicable. Expense ratios
do not reflect the reduction of custodian fee credits earned on the Fund's
net cash on deposit with the custodian bank, where applicable.
*** Rounds to less than $.01 per share.
**** During the fiscal year ended October 31, 2006, Insured Quality (NQI) and
Insured Opportunity (NIO) received payments from the Adviser of $27,762
and $42,338, respectively, to offset losses realized on the disposal of
investments purchased in violation of each Fund's investment restrictions.
This reimbursement did not have an impact on the Funds' Total Return on
Common Share Net Asset Value.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares.
(a) The expense ratios in the above table reflect, among other things, the
interest expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Inverse
Floating Rate Securities.
See accompanying notes to financial statements.
Nuveen Investments 107
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME
(NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 12.54 $ .99 $ 1.64 $ (.06) $ -- $ 2.57
2008 14.90 .96 (2.37) (.31) -- (1.72)
2007 15.40 .97 (.47) (.29) -- .21
2006 15.33 .98 .25 (.25) (.02) .96
2005 16.00 1.01 (.49) (.16) (.01) .35
INSURED PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 11.39 .80 1.44 -- -- 2.24
2008 13.73 .80 (2.32) (.20) -- (1.72)
2007 14.16 .86 (.39) (.26) -- .21
2006 13.93 .86 .28 (.23) -- .91
2005 14.45 .89 (.44) (.14) -- .31
====================================================================================================================================
LESS DISTRIBUTIONS
---------------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME
(NIF)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (.73) $ -- $ (.73) $ 14.38 $ 13.10
2008 (.64) -- (.64) 12.54 11.19
2007 (.71) -- (.71) 14.90 13.25
2006 (.79) (.10) (.89) 15.40 14.60
2005 (.93) (.09) (1.02) 15.33 14.40
INSURED PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.67) -- (.67) 12.96 11.86
2008 (.62) -- (.62) 11.39 9.56
2007 (.64) -- (.64) 13.73 12.18
2006 (.68) -- (.68) 14.16 13.03
2005 (.83) -- (.83) 13.93 12.83
==================================================================================================================
AUCTION RATE PREFERRED SHARES VARIABLE RATE DEMAND PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------------------------- ---------------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET ASSET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE COVERAGE OUTSTANDING VALUE COVERAGE
(000) PER SHARE PER SHARE (000) PER SHARE PER SHARE
------------------------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME
(NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 130,125 $ 25,000 $ 78,662 $ -- $ -- $ --
2008 154,950 25,000 64,301 -- -- --
2007 161,000 25,000 69,938 -- -- --
2006 161,000 25,000 71,429 -- -- --
2005 161,000 25,000 71,215 -- -- --
INSURED PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 -- -- -- 219,000 100,000 321,036
2008 -- -- -- 219,000 100,000 294,318
2007 268,900 25,000 72,696 -- -- --
2006 268,900 25,000 74,180 -- -- --
2005 268,900 25,000 73,392 -- -- --
====================================================================================================================================
108 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------------------- ---------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
------------------------------------------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME
(NIF)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 24.07% 20.90% $ 279,312 1.30% 1.23% 7.25%
2008 (11.12) (11.92) 243,589 1.42 1.25 6.72
2007 (4.66) 1.40 289,400 1.38 1.21 6.41
2006 7.68 6.46 299,001 1.22 1.22 6.44
2005 (1.66) 2.16 297,624 1.20 1.20 6.39
INSURED PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 31.78 20.15 484,069 1.98 1.47 6.56
2008 (17.17) (12.98) 425,557 2.13 1.25 6.12
2007 (1.77) 1.55 513,021 1.76 1.16 6.19
2006 7.11 6.75 528,984 1.16 1.16 6.14
2005 (3.32) 2.14 520,508 1.16 1.16 6.20
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
----------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------
PREMIER INSURED INCOME
(NIF)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.30% 1.23% 7.25% 2%
2008 1.42 1.25 6.72 6
2007 1.38 1.21 6.41 9
2006 1.22 1.22 6.44 8
2005 1.20 1.20 6.39 20
INSURED PREMIUM INCOME 2
(NPX)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 1.98 1.47 6.56 7
2008 2.13 1.25 6.12 8
2007 1.76 1.16 6.19 5
2006 1.16 1.16 6.14 15
2005 1.16 1.16 6.20 23
================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in calculation. Total returns are not annualized.
** After expense reimbursement from Adviser, where applicable. Expense ratios
do not reflect the reduction of custodian fee credits earned on the Fund's
net cash on deposit with the custodian bank, where applicable.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or Variable Rate Demand Preferred shares, where applicable.
(a) The expense ratios in the above table reflect, among other things,
payments to Variable Rate Demand Preferred shareholders and the interest
expense deemed to have been paid by the Fund on the floating rate
certificates issued by the special purpose trusts for the self-deposited
inverse floaters held by the Fund, as described in Footnote 1 - Variable
Rate Demand Preferred Shares and Inverse Floating Rate Securities,
respectively.
See accompanying notes to financial statements.
Nuveen Investments 109
| Financial
| Highlights (continued)
Selected data for a Common share outstanding throughout each period:
INVESTMENT OPERATIONS
---------------------------------------------------------------------------------------
DISTRIBUTIONS DISTRIBUTIONS
FROM NET FROM
BEGINNING INVESTMENT CAPITAL
COMMON NET INCOME TO GAINS TO
SHARE NET REALIZED/ AUCTION RATE AUCTION RATE
NET ASSET INVESTMENT UNREALIZED PREFERRED PREFERRED
VALUE INCOME GAIN (LOSS) SHAREHOLDERS+ SHAREHOLDERS+ TOTAL
------------------------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE
(NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 12.85 $ 1.00 $ 1.77 $ (.06) $ -- $ 2.71
2008 15.09 1.00 (2.25) (.29) -- (1.54)
2007 15.50 1.00 (.38) (.28) -- .34
2006 15.23 1.01 .33 (.25) -- 1.09
2005 15.78 1.00 (.38) (.15) (.01) .46
INSURED TAX-FREE ADVANTAGE
(NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 12.37 .98 1.86 (.06) -- 2.78
2008 14.71 .95 (2.31) (.27) -- (1.63)
2007 14.93 .97 (.21) (.27) -- .49
2006 14.56 .97 .38 (.24) -- 1.11
2005 14.75 .97 (.19) (.15) -- .63
====================================================================================================================================
LESS DISTRIBUTIONS
----------------------------------------------------
NET
INVESTMENT CAPITAL ENDING
INCOME TO GAINS TO COMMON
COMMON COMMON SHARE ENDING
SHARE- SHARE- NET ASSET MARKET
HOLDERS HOLDERS TOTAL VALUE VALUE
------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE
(NVG)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ (.76) $ -- $ (.76) $ 14.80 $ 13.85
2008 (.70) -- (.70) 12.85 11.42
2007 (.75) -- (.75) 15.09 13.71
2006 (.82) -- (.82) 15.50 14.89
2005 (.89) (.12) (1.01) 15.23 14.17
INSURED TAX-FREE ADVANTAGE
(NEA)
------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 (.73) -- (.73) 14.42 13.48
2008 (.71) -- (.71) 12.37 11.40
2007 (.71) -- (.71) 14.71 14.30
2006 (.74) -- (.74) 14.93 14.35
2005 (.81) (.01) (.82) 14.56 13.41
==================================================================================================================
AUCTION RATE PREFERRED SHARES MUNIFUND TERM PREFERRED SHARES
AT END OF PERIOD AT END OF PERIOD
------------------------------- ---------------------------------------------------
AGGREGATE LIQUIDATION AGGREGATE LIQUIDATION
AMOUNT AND MARKET AMOUNT AND MARKET ASSET
OUTSTANDING VALUE OUTSTANDING VALUE COVERAGE
(000) PER SHARE (000) PER SHARE PER SHARE
----------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE
(NVG)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 $ 91,950 $ 25,000 $ 108,000 $ 10*** --****
2008 226,975 25,000 -- -- $ 67,189
2007 233,000 25,000 -- -- 73,281
2006 233,000 25,000 -- -- 74,575
2005 233,000 25,000 -- -- 73,714
INSURED TAX-FREE ADVANTAGE
(NEA)
----------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 148,750 25,000 -- -- 78,880
2008 132,800 25,000 -- -- 68,124
2007 144,000 25,000 -- -- 72,290
2006 144,000 25,000 -- -- 73,005
2005 144,000 25,000 -- -- 71,808
======================================================================================================================
110 Nuveen Investments
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
TOTAL RETURNS BEFORE REIMBURSEMENT
------------------------------- ---------------------------------------------------
BASED ENDING
ON NET
BASED COMMON ASSETS
ON SHARE NET APPLICABLE EXPENSES EXPENSES NET
MARKET ASSET TO COMMON INCLUDING EXCLUDING INVESTMENT
VALUE* VALUE* SHARES (000) INTEREST++(a) INTEREST++ INCOME++
------------------------------------------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE
(NVG)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 28.72% 21.54% $ 441,207 1.25% 1.17% 6.86%
2008 (12.11) (10.64) 383,035 1.32 1.17 6.48
2007 (3.12) 2.25 449,982 1.31 1.14 6.15
2006 11.09 7.39 462,037 1.15 1.15 6.15
2005 2.00 2.93 454,018 1.15 1.15 5.96
INSURED TAX-FREE ADVANTAGE
(NEA)
------------------------------------------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 25.41 23.05 320,587 1.24 1.19 7.14
2008 (15.97) (11.56) 229,075 1.26 1.19 6.27
2007 4.59 3.35 272,391 1.19 1.17 6.04
2006 12.82 7.82 276,506 1.19 1.19 6.12
2005 (4.68) 4.33 269,614 1.19 1.19 6.06
====================================================================================================================================
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------
RATIOS TO AVERAGE NET ASSETS
APPLICABLE TO COMMON SHARES
AFTER REIMBURSEMENT**
----------------------------------------------------
EXPENSES EXPENSES NET PORTFOLIO
INCLUDING EXCLUDING INVESTMENT TURNOVER
INTEREST++(a) INTEREST++ INCOME++ RATE
------------------------------------------------------------------------------------------------
INSURED DIVIDEND ADVANTAGE
(NVG)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 .98% .91% 7.12% 9%
2008 .98 .83 6.82 7
2007 .90 .73 6.56 12
2006 .70 .70 6.60 15
2005 .70 .70 6.42 2
INSURED TAX-FREE ADVANTAGE
(NEA)
------------------------------------------------------------------------------------------------
Year Ended 10/31:
2009 .99 .94 7.39 6
2008 .87 .81 6.66 8
2007 .70 .68 6.53 6
2006 .69 .69 6.61 --
2005 .70 .70 6.55 1
================================================================================================
* Total Return Based on Market Value is the combination of changes in the
market price per share and the effect of reinvested dividend income and
reinvested capital gains distributions, if any, at the average price paid
per share at the time of reinvestment. The last dividend declared in the
period, which is typically paid on the first business day of the following
month, is assumed to be reinvested at the ending market price. The actual
reinvestment for the last dividend declared in the period may take place
over several days, and in some instances may not be based on the market
price, so the actual reinvestment price may be different from the price
used in the calculation. Total returns are not annualized.
Total Return Based on Common Share Net Asset Value is the combination of
changes in Common share net asset value, reinvested dividend income at net
asset value and reinvested capital gains distributions at net asset value,
if any. The last dividend declared in the period, which is typically paid
on the first business day of the following month, is assumed to be
reinvested at the ending net asset value. The actual reinvest price for
the last dividend declared in the period may often be based on the Fund's
market price (and not its net asset value), and therefore may be different
from the price used in calculation. Total returns are not annualized.
** After expense reimbursement from Adviser, where applicable. Expense ratios
do not reflect the reduction of custodian fee credits earned on the Fund's
net cash on deposit with the custodian bank, where applicable.
*** For the period October 19, 2009 through October 31, 2009, the average
market value was $10.03.
**** Asset coverage per $1 of liquidation preference for Auction Rate Preferred
shares and MuniFund Term Preferred shares equaled $3.21. On a per share
basis, asset coverage is $80,165 and $32 for Auction Rate Preferred shares
and MuniFund Term Preferred shares, respectively.
+ The amounts shown are based on Common share equivalents.
++ Ratios do not reflect the effect of dividend payments to Auction Rate
Preferred shareholders; Net Investment Income ratios reflect income earned
and expenses incurred on assets attributable to Auction Rate Preferred
shares and/or MuniFund Term Preferred shares, where applicable.
(a) The expense ratios in the above table reflect, among other things,
payments to MuniFund Term Preferred shareholders and the interest expense
deemed to have been paid by the Fund on the floating rate certificates
issued by the special purpose trusts for the self-deposited inverse
floaters held by the Fund, as described in Footnote 1 - MuniFund Term
Preferred Shares and Inverse Floating Rate Securities, respectively.
See accompanying notes to financial statements.
Nuveen Investments 111
Board Members & Officers
The management of the Funds, including general supervision of the duties
performed for the Funds by the Adviser, is the responsibility of the Board
Members of the Funds. The number of board members of the Fund is currently set
at nine. None of the board members who are not "interested" persons of the Funds
(referred to herein as "independent board members") 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 PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o ROBERT P. BREMNER Private Investor and Management Consultant;
8/22/40 Chairman of Treasurer and Director, Humanities Council
333 W. Wacker Drive the Board 1997 198 of Washington D.C.
Chicago, IL 60606 and Board Member
o JACK B. EVANS President, The Hall-Perrine Foundation, a
10/22/48 private philanthropic corporation (since
333 W. Wacker Drive Board Member 1999 198 1996); Director and Chairman, United Fire
Chicago, IL 60606 Group, a publicly held company; President
Pro Tem of the Board of Regents for the
State of Iowa University System; Director,
Gazette Companies; Life Trustee of Coe
College and the 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.
o WILLIAM C. HUNTER Dean, Tippie College of Business,
3/6/48 University of Iowa (since 2006); Director
333 W. Wacker Drive Board Member 2004 198 (since 2004) of Xerox Corporation; Director
Chicago, IL 60606 (since 2005), Beta Gamma Sigma
International Honor Society; formerly, Dean
and Distinguished Professor of Finance,
School of Business at the University of
Connecticut (2003-2006); previously, Senior
Vice President and Director of Research at
the Federal Reserve Bank of Chicago
(1995-2003); Director, SS&C Technologies,
Inc. (May 2005-October 2005); formerly,
Director (1997-2007), Credit Research
Center at Georgetown University.
o DAVID J. KUNDERT Director, Northwestern Mutual Wealth
10/28/42 Management Company; retired (since 2004) as
333 W. Wacker Drive Board Member 2005 198 Chairman, JPMorgan Fleming Asset
Chicago, IL 60606 Management, President and CEO, Banc One
Investment Advisors Corporation, and
President, One Group Mutual Funds; prior
thereto, Executive Vice President, Banc One
Corporation and Chairman and CEO, Banc One
Investment Management Group; Member, Board
of Regents, Luther College; member of the
Wisconsin Bar Association; member of Board
of Directors, Friends of Boerner Botanical
Gardens; member of Investment Committee,
Greater Milwaukee Foundation.
o WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners Ltd.,
9/24/44 a real estate investment company; formerly,
333 W. Wacker Drive Board Member 1997 198 Senior Partner and Chief Operating Officer
Chicago, IL 60606 (retired, 2004) of Miller-Valentine Group;
member, University of Dayton Business
School Advisory Council; member, Dayton
Philharmonic Orchestra Association;
formerly, member, Business Advisory
Council, Cleveland Federal Reserve Bank;
formerly, Director, Dayton Development
Coalition.
112 Nuveen Investments
NUMBER PRINCIPAL
YEAR FIRST OF PORTFOLIOS OCCUPATION(S)
NAME, ELECTED OR IN FUND COMPLEX INCLUDING OTHER
BIRTHDATE POSITION(S) HELD APPOINTED OVERSEEN BY DIRECTORSHIPS
& ADDRESS WITH THE FUNDS AND TERM(1) BOARD MEMBER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS:
o JUDITH M. STOCKDALE Executive Director, Gaylord and Dorothy
12/29/47 Donnelley Foundation (since 1994); prior
333 W. Wacker Drive Board Member 1997 198 thereto, Executive Director, Great Lakes
Chicago, IL 60606 Protection Fund (from 1990 to 1994).
o CAROLE E. STONE Director, Chicago Board Options Exchange
6/28/47 (since 2006); Director, C2 Options
333 W. Wacker Drive Board Member 2007 198 Exchange, Incorporated (since 2009);
Chicago, IL 60606 Commissioner, New York State Commission on
Public Authority Reform (since 2005);
formerly, Chair, New York Racing
Association Oversight Board (2005-2007).
o TERENCE J. TOTH Director, Legal & General Investment
9/29/59 Management America, Inc. (since 2008);
333 W. Wacker Drive Board Member 2008 198 Managing Partner, Musso Capital Management
Chicago, IL 60606 (since 2008); formerly, CEO and President,
Northern Trust Investments (2004-2007);
Executive Vice President, Quantitative
Management & Securities Lending
(2004-2007); prior thereto, various
positions with Northern Trust Company
(since 1994); Member: Goodman Theatre Board
(since 2004), Chicago Fellowship Boards
(since 2005), University of Illinois
Leadership Council Board (since 2007) and
Catalyst Schools of Chicago Board (since
2008); formerly, Member: Northern Trust
Mutual Funds Board (2005-2007), Northern
Trust Investments Board (2004-2007),
Northern Trust Japan Board (2004-2007),
Northern Trust Securities Inc. Board
(2003-2007) and Northern Trust Hong Kong
Board (1997-2004).
INTERESTED BOARD MEMBER:
o JOHN P. AMBOIAN(2) Chief Executive Officer (since July 2007)
6/14/61 and Director (since 1999) of Nuveen
333 W. Wacker Drive Board Member 2008 198 Investments, Inc.; Chief Executive Officer
Chicago, IL 60606 (since 2007) of Nuveen Asset Management,
Nuveen Investments Advisors, Inc. formerly,
President (1999-2004) of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
Nuveen Investments 113
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o GIFFORD R. ZIMMERMAN Managing Director (since 2002), Assistant
9/9/56 Chief Secretary and Associate General Counsel of
333 W. Wacker Drive Administrative 1988 198 Nuveen Investments, LLC; Managing Director,
Chicago, IL 60606 Officer Associate General Counsel and Assistant
Secretary, of Nuveen Asset Management
(since 2002) and of Symphony Asset
Management LLC, (since 2003); Vice
President and Assistant Secretary of NWQ
Investment Management Company, LLC. (since
2002), Nuveen Investments Advisers Inc.
(since 2002), Tradewinds Global Investors,
LLC, and Santa Barbara Asset Management,
LLC (since 2006), Nuveen HydePark Group LLC
and Nuveen Investment Solutions, Inc.
(since 2007); Managing Director (since
2004) and Assistant Secretary (since 1994)
of Nuveen Investments, Inc.; formerly,
Managing Director (2002-2004), General
Counsel (1998-2004) and Assistant Secretary
of Nuveen Advisory Corp. and Nuveen
Institutional Advisory Corp.(3); Chartered
Financial Analyst.
o WILLIAM ADAMS IV Executive Vice President of Nuveen
6/9/55 Investments, Inc.; Executive Vice
333 W. Wacker Drive Vice President 2007 123 President, U.S. Structured Products of
Chicago, IL 60606 Nuveen Investments, LLC, (since 1999),
prior thereto, Managing Director of
Structured Investments.
o MARK J.P. ANSON President and Executive Director of Nuveen
6/10/59 Investments, Inc. (since 2007); President
333 W. Wacker Drive Vice President 2009 198 of Nuveen Investments Institutional
Chicago, IL 60606 Services Group LLC (since 2007);
previously, Chief Executive Officer of the
British Telecom Pension Scheme (2006-2007)
and Chief Investment Officer of Calpers
(1999-2006); PhD, Chartered Financial
Analyst, Chartered Alternative Investment
Analyst, Certified Public Accountant,
Certified Management Accountant and
Certified Internal Auditor.
o CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004),
1/11/62 previously, Vice President (1993-2004) of
333 W. Wacker Drive Vice President 2007 123 Nuveen Investments, LLC.
Chicago, IL 60606
o NIZIDA ARRIAGA Vice President (since 2007) of Nuveen
6/1/68 Investments, LLC; previously, Portfolio
333 W. Wacker Drive Vice President 2009 198 Manager, Allstate Investments, LLC
Chicago, IL 60606 (1996-2006); Chartered Financial Analyst.
o MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen
2/3/66 Vice President Investments, LLC.; Vice President of Nuveen
333 W. Wacker Drive and Assistant 2000 198 Asset Management (since 2005).
Chicago, IL 60606 Secretary
o MARGO L. COOK Executive Vice President (since Oct 2008)
4/11/64 of Nuveen Investments, Inc.; previously,
333 W. Wacker Drive Vice President 2009 198 Head of Institutional Asset Management
Chicago, IL 60606 (2007-2008) of Bear Stearns Asset
Management; Head of Institutional Asset Mgt
(1986-2007) of Bank of NY Mellon; Chartered
Financial Analyst.
o LORNA C. FERGUSON Managing Director (since 2004) of Nuveen
10/24/45 Investments, LLC; Managing Director (since
333 W. Wacker Drive Vice President 1998 198 2005) of Nuveen Asset Management; Managing
Chicago, IL 60606 Director (2004-2005), of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
114 Nuveen Investments
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o STEPHEN D. FOY Vice President (since 1993) and Funds
5/31/54 Vice President Controller (since 1998) of Nuveen
333 W. Wacker Drive and Controller 1998 198 Investments, LLC; Vice President (since
Chicago, IL 60606 2005) of Nuveen Asset Management; Certified
Public Accountant.
o SCOTT S. GRACE Managing Director, Corporate Finance &
8/20/70 Vice President Development, Treasurer (since September
333 West Wacker Drive and Treasurer 2009 198 2009) of Nuveen Investments, LLC, formerly,
Chicago, IL 60606 Treasurer (2006-2009), Senior Vice
President (2008-2009), previously, Vice
President (2006-2008) of Janus Capital
Group, Inc.; formerly. Senior Associate in
Morgan Stanley's Global Financial Services
Group (2000-2003); Chartered Accountant
Designation.
o WILLIAM T. HUFFMAN Chief Operating Officer, Municipal Fixed
5/7/69 Income (since 2008) of Nuveen Asset
333 W. Wacker Drive Vice President 2009 134 Management; previously, Chairman, President
Chicago, IL 60606 and Chief Executive Officer (2002 - 2007)
of Northern Trust Global Advisors, Inc. and
Chief Executive Officer (2007) of Northern
Trust Global Investments Limited; Certified
Public Accountant.
o WALTER M. KELLY Senior Vice President (since 2008), Vice
2/24/70 Chief Compliance President (2006-2008) formerly, Assistant
333 W. Wacker Drive Officer and 2003 198 Vice President and Assistant General
Chicago, IL 60606 Vice President Counsel (2003-2006) of Nuveen Investments,
LLC; Vice President (since 2006) and
Assistant Secretary (since 2008) of Nuveen
Asset Management.
o DAVID J. LAMB Senior Vice President (since 2009),
3/22/63 formerly, Vice President (2000-2009) of
333 W. Wacker Drive Vice President 2000 198 Nuveen Investments, LLC; Vice President
Chicago, IL 60606 (since 2005) of Nuveen Asset Management;
Certified Public Accountant.
o TINA M. LAZAR Senior Vice President (since 2009),
8/27/61 formerly, Vice President of Nuveen
333 W. Wacker Drive Vice President 2002 198 Investments, LLC (1999-2009); Vice
Chicago, IL 60606 President of Nuveen Asset Management (since
2005).
o LARRY W. MARTIN Vice President, Assistant Secretary and
7/27/51 Vice President Assistant General Counsel of Nuveen
333 W. Wacker Drive and Assistant 1988 198 Investments, LLC; Vice President (since
Chicago, IL 60606 Secretary 2005) and Assistant Secretary of Nuveen
Investments, Inc.; Vice President (since
2005) and Assistant Secretary (since 1997)
of Nuveen Asset Management; Vice President
and Assistant Secretary of Nuveen
Investments Advisers Inc. (since 2002); NWQ
Investment Management Company, LLC (since
2002), Symphony Asset Management LLC (since
2003), Tradewinds Global Investors, LLC,
Santa Barbara Asset Management LLC (since
2006) and of Nuveen HydePark Group, LLC and
Nuveen Investment Solutions, Inc. (since
2007); formerly, Vice President and
Assistant Secretary of Nuveen Advisory
Corp. and Nuveen Institutional Advisory
Corp.(3)
o KEVIN J. MCCARTHY Managing Director (since 2008), formerly,
3/26/66 Vice President Vice President (2007-2008), Nuveen
333 W. Wacker Drive and Secretary 2007 198 Investments, LLC; Managing Director (since
Chicago, IL 60606 2008), formerly, Vice President, and
Assistant Secretary, Nuveen Asset
Management, and Nuveen Investments
Holdings, Inc.; Vice President (since 2007)
and Assistant Secretary, Nuveen Investment
Advisers Inc., Nuveen Investment
Institutional Services Group LLC, NWQ
Investment Management Company, LLC,
Tradewinds Global Investors LLC, NWQ
Holdings, LLC, Symphony Asset Management
LLC, Santa Barbara Asset Management LLC,
Nuveen HydePark Group, LLC and Nuveen
Investment Solutions, Inc. (since 2007);
prior thereto, Partner, Bell, Boyd & Lloyd
LLP (1997- 2007).
Nuveen Investments 115
Board Members & Officers (continued)
NUMBER
OF PORTFOLIOS
NAME, YEAR FIRST IN FUND COMPLEX PRINCIPAL
BIRTHDATE POSITION(S) HELD ELECTED OR OVERSEEN OCCUPATION(S)
AND ADDRESS WITH THE FUNDS APPOINTED(4) BY OFFICER DURING PAST 5 YEARS
------------------------------------------------------------------------------------------------------------------------------------
OFFICERS OF THE FUNDS:
o JOHN V. MILLER Chief Investment Officer and Managing
4/10/67 Director (since 2007), formerly, Vice
333 W. Wacker Drive Vice President 2007 134 President (2002-2007) of Nuveen Asset
Chicago, IL 60606 Management and Managing Director (since
2007), formerly Vice President (2002-2007)
Nuveen Investments, LLC; Chartered
Financial Analyst.
o GREGORY MINO Vice President of Nuveen Investments, LLC
1/4/71 (since 2008); previously, Director
333 W. Wacker Drive Vice President 2009 198 (2004-2007) and Executive Director
Chicago, IL 60606 (2007-2008) of UBS Global Asset Management;
previously, Vice President (2000-2003) and
Director (2003-2004) of Merrill Lynch
Investment Managers; Chartered Financial
Analyst.
o CHRISTOPHER M. ROHRBACHER Vice President, Nuveen Investments, LLC
8/1/71 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 198 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Associate, Skadden,
Arps, Slate Meagher & Flom LLP (2002-2008).
o JAMES F. RUANE Vice President, Nuveen Investments, LLC
7/3/62 Vice President (since 2007); prior thereto, Partner,
333 W. Wacker Drive and Assistant 2007 198 Deloitte & Touche USA LLP (2005-2007),
Chicago, IL 60606 Secretary formerly, senior tax manager (2002-2005);
Certified Public Accountant.
o MARK L. WINGET Vice President, Nuveen Investments, LLC
12/21/68 Vice President (since 2008); Vice President and Assistant
333 W. Wacker Drive and Assistant 2008 198 Secretary, Nuveen Asset Management (since
Chicago, IL 60606 Secretary 2008); prior thereto, Counsel, Vedder Price
P.C. (1997-2007).
(1) For Insured Premium Income 2 (NPX), Insured Dividend Advantage (NVG) and
Insured Tax-Free Advantage (NEA), Board Members serve three year terms,
except for two board members who are elected by the holders of Preferred
Shares. The Board of Trustees for NAD, NXZ and NZF is divided into three
classes, Class I, Class II, and Class III, with each being elected to
serve until the third succeeding annual shareholders' meeting subsequent
to its election or thereafter in each case when its respective successors
are duly elected or appointed, except two board members are elected by the
holders of Preferred Shares to serve until the next annual shareholders'
meeting subsequent to its election or thereafter in each case when its
respective successors are duly elected or appointed. For Insured Quality
(NQI), Insured Opportunity (NIO) and Premier Insured Income (NIF), the
Board Members serve a one year term to serve until the next annual meeting
or until their successors shall have been duly elected and qualified. The
first year elected or appointed represents the year in which the board
member was first elected or appointed to any fund in the Nuveen Complex.
(2) Mr. Amboian is an interested trustee because of his position with Nuveen
Investments, Inc. and certain of its subsidiaries, which are affiliates of
the Nuveen Funds.
(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.
116 Nuveen Investments
Annual Investment Management Agreement Approval Process
The Investment Company Act of 1940, as amended (the "1940 Act"), provides, in
substance, that each investment advisory agreement between a fund and its
investment adviser will continue in effect from year to year only if its
continuance is approved at least annually by the fund's board members, including
by a vote of a majority of the board members who are not parties to the advisory
agreement or "interested persons" of any parties (the "Independent Board
Members"), cast in person at a meeting called for the purpose of considering
such approval. In connection with such approvals, the fund's board members must
request and evaluate, and the investment adviser is required to furnish, such
information as may be reasonably necessary to evaluate the terms of the advisory
agreement. Accordingly, at a meeting held on May 27-29, 2009 (the "May
Meeting"), the Boards of Trustees or Directors (as the case may be) (each, a
"Board" and each Trustee or Director, a "Board Member") of the Funds, including
a majority of the Independent Board Members, considered and approved the
continuation of the advisory agreements (each an "Advisory Agreement") between
each Fund and Nuveen Asset Management ("NAM") for an additional one-year period.
In preparation for their considerations at the May Meeting, the Board also held
a separate meeting on April 21-22, 2009 (the "April Meeting"). Accordingly, the
factors considered and determinations made regarding the renewals by the
Independent Board Members include those made at the April Meeting.
In addition, in evaluating the Advisory Agreements, the Independent Board
Members reviewed a broad range of information relating to the Funds and NAM,
including absolute performance, fee and expense information for the Funds as
well as comparative performance, fee and expense information for a comparable
peer group of funds, the performance information of recognized and/or customized
benchmarks (as applicable) of the Funds, the profitability of Nuveen for its
advisory activities (which includes its wholly owned subsidiaries other than
Winslow Capital Management, Inc. ("Winslow Capital"), which was recently
acquired in December 2008), and other information regarding the organization,
personnel, and services provided by NAM. The Independent Board Members also met
quarterly as well as at other times as the need arose during the year and took
into account the information provided at such meetings and the knowledge gained
therefrom. Prior to approving the renewal of the Advisory Agreements, the
Independent Board Members reviewed the foregoing information with their
independent legal counsel and with management, reviewed materials from
independent legal counsel describing applicable law and their duties in
reviewing advisory contracts, and met with independent legal counsel in private
sessions without management present. The Independent Board Members considered
the legal advice provided by independent legal counsel and relied upon their
knowledge of NAM, its services and the Funds resulting from their meetings and
other interactions throughout the year and their own business judgment in
determining the factors to be considered in evaluating
Nuveen Investments 117
Annual Investment Management Agreement Approval Process (continued)
the Advisory Agreements. Each Board Member may have accorded different weight to
the various factors in reaching his or her conclusions with respect to a Fund's
Advisory Agreement. The Independent Board Members did not identify any single
factor as all-important or controlling. The Independent Board Members'
considerations were instead based on a comprehensive consideration of all the
information presented. The principal factors considered by the Board and its
conclusions are described below.
A. NATURE, EXTENT AND QUALITY OF SERVICES
In considering renewal of the Advisory Agreements, the Independent Board Members
considered the nature, extent and quality of NAM's services, including advisory
services and administrative services. The Independent Board Members reviewed
materials outlining, among other things, NAM's organization and business; the
types of services that NAM or its affiliates provide and are expected to provide
to the Funds; the performance record of the applicable Fund (as described in
further detail below); and any initiatives Nuveen had taken for the applicable
fund product line.
In reviewing the services provided and the initiatives undertaken during the
past year, the Independent Board Members recognized the severe market turmoil
experienced in the capital markets during recent periods, including sustained
periods of high volatility, credit disruption and government intervention. The
Independent Board Members considered NAM's efforts, expertise and other actions
taken to address matters as they arose that impacted the Funds. The Independent
Board Members recognized the role of the Investment Services group which, among
other things, monitors the various positions throughout the Nuveen fund complex
to identify and address any systematic risks. In addition, the Capital Markets
Committee of NAM provides a multi-departmental venue for developing new policies
to mitigate any risks. The Independent Board Members further recognized NAM's
continuous review of the Nuveen funds' investment strategies and mandates in
seeking to continue to refine and improve the investment process for the funds,
particularly in light of market conditions. With respect to closed-end funds
that issued auction rate preferred shares ("ARPs") or that otherwise utilize
leverage, the Independent Board Members noted, in particular, NAM's efforts in
refi-nancing the preferred shares of such funds frozen by the collapse of the
auction rate market and managing leverage during a period of rapid market
declines, particularly for the non-equity funds. Such efforts included
negotiating and maintaining the availability of bank loan facilities and other
sources of credit used for investment purposes or to satisfy liquidity needs,
liquidating portfolio securities during difficult times to meet leverage ratios,
and seeking alternative forms of debt and other leverage that may over time
reduce financing costs associated with ARPs and enable the funds that have
issued ARPs to restore liquidity to ARPs holders. The Independent Board Members
also noted Nuveen's continued commitment and efforts to keep investors and
financial advisers informed as to its progress with the ARPs through, among
other things, conference calls, emails, press releases, information posted on
its website, and telephone calls and in-person meetings with financial advisers.
In addition to the foregoing, the Independent Board Members also noted the
additional services that NAM or its affiliates provide to closed-end funds,
including, in particular, Nuveen's continued commitment to supporting the
secondary market for the common shares of its closed-end funds
118 Nuveen Investments
through a variety of programs designed to raise investor and analyst awareness
and understanding of closed-end funds. These efforts include maintaining an
investor relations program to provide timely information and education to
financial advisers and investors; providing advertising and marketing for the
closed-end funds; maintaining websites; and providing educational seminars.
As part of their review, the Independent Board Members also evaluated the
background, experience and track record of NAM's investment personnel. In this
regard, the Independent Board Members considered any changes in the personnel,
and the impact on the level of services provided to the Funds, if any. The
Independent Board Members also reviewed information regarding portfolio manager
compensation arrangements to evaluate NAM's ability to attract and retain high
quality investment personnel, preserve stability, and reward performance but not
provide an incentive for taking undue risks.
In addition to advisory services, the Independent Board Members considered the
quality of administrative services provided by NAM and its affiliates including
product management, fund administration, oversight of service providers,
shareholder services, administration of Board relations, regulatory and
portfolio compliance and legal support. Given the importance of compliance, the
Independent Board Members considered NAM's compliance program, including the
report of the chief compliance officer regarding the Funds' compliance policies
and procedures.
Based on their review, the Independent Board Members found that, overall, the
nature, extent and quality of services provided (and expected to be provided) to
the respective Funds under the Advisory Agreements were satisfactory.
B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM
The Board considered the investment performance of each Fund, including the
Fund's historic performance as well as its performance compared to funds with
similar investment objectives (the "Performance Peer Group") based on data
provided by an independent provider of mutual fund data as well as recognized
and/or customized benchmarks (as applicable). The Independent Board Members
reviewed performance information including, among other things, total return
information compared with the Fund's Performance Peer Group and recognized
and/or customized benchmarks (as applicable) for the quarter-, one-, three- and
five-year periods (as applicable) ending December 31, 2008 and for the same
periods (as applicable) ending March 31, 2009. The Independent Board Members
also reviewed performance information of the Nuveen municipal funds managed by
NAM in the aggregate ranked by peer group and the performance of such funds, in
the aggregate, relative to their benchmark. This information supplemented the
Fund performance information provided to the Board at each of its quarterly
meetings.
In comparing a fund's performance with that of its Performance Peer Group, the
Independent Board Members took into account that the closest Performance Peer
Group in certain instances may not adequately reflect the respective fund's
investment objectives and strategies thereby hindering a meaningful comparison
of the fund's performance with that of the Performance Peer Group. The
Independent Board Members further considered the performance of the Funds in the
context of the volatile
Nuveen Investments 119
Annual Investment Management Agreement Approval Process (continued)
market conditions during the past year, and their impact on various asset
classes and the portfolio management of the Funds.
Based on their review and factoring in the severity of market turmoil in 2008,
the Independent Board Members determined that each Fund's investment performance
over time had been satisfactory.
C. FEES, EXPENSES AND PROFITABILITY
1. Fees and Expenses
The Board evaluated the management fees and expenses of each Fund reviewing,
among other things, such Fund's gross management fees, net management fees and
total expense ratios (before and after expense reimbursements and/or waivers) in
absolute terms as well as compared to the fee and expenses of a comparable
universe of unaffiliated funds based on data provided by an independent fund
data provider (the "Peer Universe") and in certain cases, to a more focused
subset of funds in the Peer Universe (the "Peer Group").
The Independent Board Members further reviewed data regarding the construction
of the applicable Peer Universe and Peer Group. In reviewing the comparisons of
fee and expense information, the Independent Board Members took into account
that in certain instances various factors such as the asset level of a fund
relative to peers, the size and particular composition of the Peer Universe or
Peer Group, the investment objectives of the peers, expense anomalies, changes
in the funds comprising the Peer Universe or Peer Group from year to year,
levels of reimbursement and the timing of information used may impact the
comparative data, thereby limiting the ability to make a meaningful comparison.
In addition, the Independent Board Members considered, among other things, the
differences in the use and type of leverage compared to the peers. In reviewing
the fee schedule for a Fund, the Independent Board Members also considered the
fund-level and complex-wide breakpoint schedules (described in further detail
below) and any fee waivers and reimbursements provided by Nuveen (applicable, in
particular, for certain closed-end funds launched since 1999).
Based on their review of the fee and expense information provided, the
Independent Board Members determined that each Fund's management fees and net
total expense ratio were reasonable in light of the nature, extent and quality
of services provided to the Fund.
2. Comparisons with the Fees of Other Clients
The Independent Board Members further reviewed information regarding the nature
of services and fee rates offered by NAM to other clients. Such other clients
include NAM's municipal separately managed accounts. In evaluating the
comparisons of fees, the Independent Board Members noted that the fee rates
charged to the Funds and other clients vary, among other things, because of the
different services involved and the additional regulatory and compliance
requirements associated with registered investment companies, such as the Funds.
Accordingly, the Independent Board Members considered the differences in the
product types, including, but not limited to, the services provided, the
structure and operations, product distribution and
120 Nuveen Investments
costs thereof, portfolio investment policies, investor profiles, account sizes
and regulatory requirements. The Independent Board Members noted, in particular,
that the range of services provided to the Funds (as discussed above) is much
more extensive than that provided to separately managed accounts. Given the
inherent differences in the products, particularly the extensive services
provided to the Funds, the Independent Board Members believe such facts justify
the different levels of fees.
3. Profitability of Nuveen
In conjunction with its review of fees, the Independent Board Members also
considered the profitability of Nuveen for its advisory activities (which
incorporated Nuveen's wholly-owned affiliated sub-advisers other than Winslow
Capital) and its financial condition. The Independent Board Members reviewed the
revenues and expenses of Nuveen's advisory activities for the last two years,
the allocation methodology used in preparing the profitability data and an
analysis of the key drivers behind the changes in revenues and expenses that
impacted profitability in 2008. In addition, the Independent Board Members
reviewed information regarding the financial results of Nuveen for 2008 based on
its Form 8-K filed on March 31, 2009. The Independent Board Members noted this
information supplemented the profitability information requested and received
during the year to help keep them apprised of developments affecting
profitability (such as changes in fee waivers and expense reimbursement
commitments). In this regard, the Independent Board Members noted that they had
also appointed an Independent Board Member as a point person to review and keep
them apprised of changes to the profitability analysis and/or methodologies
during the year. The Independent Board Members also considered Nuveen's revenues
for advisory activities, expenses, and profit margin compared to that of various
unaffiliated management firms with similar amounts of assets under management
and relatively comparable asset composition prepared by Nuveen.
In reviewing profitability, the Independent Board Members recognized the
subjective nature of determining profitability which may be affected by numerous
factors including the allocation of expenses. Further, the Independent Board
Members recognized the difficulties in making comparisons as the profitability
of other advisers generally is not publicly available and the profitability
information that is available for certain advisers or management firms may not
be representative of the industry and may be affected by, among other things,
the adviser's particular business mix, capital costs, types of funds managed and
expense allocations. Notwithstanding the foregoing, the Independent Board
Members reviewed Nuveen's methodology and assumptions for allocating expenses
across product lines to determine profitability. In reviewing profitability, the
Independent Board Members recognized Nuveen's investment in its fund business.
Based on their review, the Independent Board Members concluded that Nuveen's
level of profitability for its advisory activities was reasonable in light of
the services provided.
Nuveen Investments 121
Annual Investment Management Agreement Approval Process (continued)
In evaluating the reasonableness of the compensation, the Independent Board
Members also considered other amounts paid to NAM by the Funds as well as any
indirect benefits (such as soft dollar arrangements, if any) NAM and its
affiliates receive, or are expected to receive, that are directly attributable
to the management of the Funds, if any. See Section E below for additional
information on indirect benefits NAM may receive as a result of its relationship
with the Funds. Based on their review of the overall fee arrangements of each
Fund, the Independent Board Members 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
With respect to economies of scale, the Independent Board Members have
recognized the potential benefits resulting from the costs of a fund being
spread over a larger asset base, although economies of scale are difficult to
measure and predict with precision, particularly on a fund-by-fund basis. One
method to help ensure the shareholders share in these benefits is to include
breakpoints in the advisory fee schedule. Generally, management fees for funds
in the Nuveen complex are comprised of a fund-level component and a
complex-level component, subject to certain exceptions. Accordingly, the
Independent Board Members reviewed and considered the applicable fund-level
breakpoints in the advisory fee schedules that reduce advisory fees as asset
levels increase. In this regard, the Independent Board Members noted that
although closed-end funds may from time-to-time make additional share offerings,
the growth of their assets will occur primarily through the appreciation of such
funds' investment portfolio. While economies of scale result when costs can be
spread over a larger asset base, the Independent Board Members also recognized
that the asset levels generally declined in 2008 due to, among other things, the
market downturn. Accordingly, for funds with a reduction in assets under
management, advisory fee levels may have increased as breakpoints in the fee
schedule were no longer surpassed.
In addition to fund-level advisory fee breakpoints, the Board also considered
the Funds' complex-wide fee arrangement. Pursuant to the complex-wide fee
arrangement, the fees of the funds in the Nuveen complex generally are reduced
as the assets in the fund complex reach certain levels. The complex-wide fee
arrangement seeks to provide the benefits of economies of scale to fund
shareholders when total fund complex assets increase, even if assets of a
particular fund are unchanged or have decreased. The approach reflects the
notion that some of Nuveen's costs are attributable to services provided to all
its funds in the complex and therefore all funds benefit if these costs are
spread over a larger asset base. Generally, the complex-wide pricing reduces
Nuveen's revenue because total complex fund assets have consistently grown in
prior years. As noted, however, total fund assets declined in 2008 resulting in
a smaller downward adjustment of revenues due to complex-wide pricing compared
to the prior year.
Based on their review, the Independent Board Members concluded that the
breakpoint schedules and complex-wide fee arrangement were acceptable and
reflect economies of scale to be shared with shareholders when assets under
management increase.
122 Nuveen Investments
E. INDIRECT BENEFITS
In evaluating fees, the Independent Board Members received and considered
information regarding potential "fall out" or ancillary benefits NAM or its
affiliates may receive as a result of its relationship with each Fund. In this
regard, the Independent Board Members considered revenues received by affiliates
of NAM for serving as agent at Nuveen's trading desk.
In addition to the above, the Independent Board Members considered whether NAM
received any benefits from soft dollar arrangements whereby a portion of the
commissions paid by a Fund for brokerage may be used to acquire research that
may be useful to NAM in managing the assets of the Funds and other clients. The
Independent Board Members noted that NAM does not currently have any soft dollar
arrangements; however, to the extent certain bona fide agency transactions that
occur on markets that traditionally trade on a principal basis and riskless
principal transactions are considered as generating "commissions," NAM intends
to comply with the applicable safe harbor provisions.
Based on their review, the Independent Board Members concluded that any indirect
benefits received by NAM as a result of its relationship with the Funds were
reasonable and within acceptable parameters.
F. OTHER CONSIDERATIONS
The Independent Board Members did not identify any single factor discussed
previously as all-important or controlling. The Board Members, including the
Independent Board Members, unanimously concluded that the terms of the Advisory
Agreements are fair and reasonable, that NAM's fees are reasonable in light of
the services provided to each Fund and that the Advisory Agreements be renewed.
Nuveen Investments 123
Reinvest Automatically Easily and Conveniently
NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR
REINVESTMENT ACCOUNT.
NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN
Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or
capital gains distributions in additional Fund shares.
By choosing to reinvest, you'll be able to invest money regularly and
automatically, and watch your investment grow through the power of tax-free
compounding. Just like dividends or distributions in cash, there may be times
when income or capital gains taxes may be payable on dividends or distributions
that are reinvested.
It is important to note that an automatic reinvestment plan does not ensure a
profit, nor does it protect you against loss in a declining market.
EASY AND CONVENIENT
To make recordkeeping easy and convenient, each month you'll receive a statement
showing your total dividends and distributions, the date of investment, the
shares acquired and the price per share, and the total number of shares you own.
HOW SHARES ARE PURCHASED
The shares you acquire by reinvesting will either be purchased on the open
market or newly issued by the Fund. If the shares are trading at or above net
asset value at the time of valuation, the Fund will issue new shares at the
greater of the net asset value or 95% of the then-current market price. If the
shares are trading at less than net asset value, shares for your account will be
purchased on the open market. If the Plan Agent begins purchasing Fund shares on
the open market while shares are trading below net asset value, but the Fund's
shares subsequently trade at or above their net asset value before the Plan
Agent is able to complete its purchases, the Plan Agent may cease open-market
purchases and may invest the uninvested portion of the distribution in
newly-issued Fund shares at a price equal to the greater of the shares' net
asset value or 95% of the shares' market value on the last business day
immediately prior to the purchase date. Dividends and distributions received to
purchase shares in the open market will normally be invested shortly after the
dividend payment date. No interest will be paid on dividends and distributions
awaiting reinvestment. Because the market price of the shares may increase
before purchases are completed, the average purchase price
124 Nuveen Investments
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.
Nuveen Investments 125
Glossary of Terms Used in this Report
o AUCTION RATE BOND: An auction rate bond is a security whose interest
payments are adjusted periodically through an auction process, which
process typically also serves as a means for buying and selling the bond.
Auctions that fail to attract enough buyers for all the shares offered for
sale are deemed to have "failed," with current holders receiving a
formula-based interest rate until the next scheduled auction.
o AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an
investment's performance over a particular, usually multi-year time
period. It expresses the return that would have been necessary each year
to equal the investment's actual cumulative performance (including change
in NAV or market price and reinvested dividends and capital gains
distributions, if any) over the time period being considered.
o AVERAGE EFFECTIVE MATURITY: The average of the number of years to maturity
of the bonds in a Fund's portfolio, computed by weighting each bond's time
to maturity (the date the security comes due) by the market value of the
security. This figure does not account for the likelihood of prepayments
or the exercise of call provisions unless an escrow account has been
established to redeem the bond before maturity. The market value weighting
for an investment in an inverse floating rate security is the value of the
portfolio's residual interest in the inverse floating rate trust, and does
not include the value of the floating rate securities issued by the trust.
o 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.
o INVERSE FLOATERS: Inverse floating rate securities, also known as inverse
floaters, are created by depositing a municipal bond, typically with a
fixed interest rate, into a special purpose trust created by a
broker-dealer. This trust, in turn, (a) issues floating rate certificates
typically paying short-term tax-exempt interest rates to third parties in
amounts equal to some fraction of the deposited bond's par amount or
market value, and (b) issues an inverse floating rate certificate
(sometimes referred to as an "inverse floater") to an investor (such as a
Fund) interested in gaining investment exposure to a long-term municipal
bond. The income received by the holder of the inverse floater varies
inversely with the short-term rate paid to the floating rate certificates'
holders, and in most circumstances the holder of the inverse floater bears
substantially all of the underlying bond's downside investment risk. The
holder of the inverse floater typically also benefits disproportionately
from any potential appreciation of the underlying bond's value. Hence, an
inverse floater essentially represents an investment in the underlying
bond on a leveraged basis.
126 Nuveen Investments
o LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period
over which a bond's principal and interest will be paid, and consequently
is a measure of the sensitivity of a bond's or bond Fund's value to
changes when market interest rates change. Generally, the longer a bond's
or Fund's duration, the more the price of the bond or Fund will change as
interest rates change. Leverage-adjusted duration takes into account the
leveraging process for a Fund and therefore is longer than the duration of
the Fund's portfolio of bonds.
o MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An
investment's current annualized dividend divided by its current market
price.
o NET ASSET VALUE (NAV): A Fund's NAV per common share is calculated by
subtracting the liabilities of the Fund (including any Preferred shares
issued in order to leverage the Fund) from its total assets and then
dividing the remainder by the number of common shares outstanding. Fund
NAVs are calculated at the end of each business day.
o PRE-REFUNDING: Pre-refunding, also known as advanced refundings or
refinancings, is a procedure used by state and local governments to
refinance municipal bonds to lower interest expenses. The issuer sells new
bonds with a lower yield and uses the proceeds to buy U.S. Treasury
securities, the interest from which is used to make payments on the
higher-yielding bonds. Because of this collateral, pre-refunding generally
raises a bond's credit rating and thus its value.
o TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable
investment to equal, on an after-tax basis, the yield of a municipal bond
investment.
o ZERO COUPON BOND: A zero coupon bond does not pay a regular interest
coupon to its holders during the life of the bond. Tax-exempt income to
the holder of the bond comes from accretion of the difference between the
original purchase price of the bond at issuance and the par value of the
bond at maturity and is effectively paid at maturity. The market prices of
zero coupon bonds generally are more volatile than the market prices of
bonds that pay interest periodically.
Nuveen Investments 127
Notes
128 Nuveen Investments
Other Useful Information
BOARD OF
DIRECTORS/TRUSTEES
John P. Amboian
Robert P. Bremner
Jack B. Evans
William C. Hunter
David J. Kundert
William J. Schneider
Judith M. Stockdale
Carole E. Stone
Terence J. Toth
FUND MANAGER
Nuveen Asset Management
333 West Wacker Drive
Chicago, IL 60606
CUSTODIAN
State Street Bank & Trust
Company
Boston, MA
TRANSFER AGENT AND
SHAREHOLDER SERVICES
State Street Bank & Trust
Company
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
QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION
You may obtain (i) each Fund's quarterly portfolio of investments, (ii)
information regarding how the Funds voted proxies relating to portfolio
securities held during the twelve-month period ended June 30, 2009, and (iii) a
description of the policies and procedures that the Funds used to determine how
to vote proxies relating to portfolio securities 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 (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 100 F Street NE, Washington, D.C. 20549.
CEO CERTIFICATION DISCLOSURE
Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange
(NYSE) the annual CEO certification as required by Section 303A.12(a) of the
NYSE Listed Company Manual.
Each Fund has filed with the SEC the certification of its Chief Executive
Officer and Chief Financial Officer required by Section 302 of the
Sarbanes-Oxley Act.
COMMON AND PREFERRED SHARE INFORMATION
Each Fund intends to repurchase and/or redeem shares of its own common or
preferred stock in the future at such times and in such amounts as is deemed
advisable. During the period covered by this report, the Funds repurchased
and/or redeemed/noticed for redemption shares of their common and/or preferred
stock as shown in the accompanying table.
PREFERRED SHARES
COMMON SHARES REDEEMED AND/OR
REPURCHASED NOTICED FOR REDEMPTION
NQI -- 2,103
NIO -- 2,002
NIF -- 993
NPX -- --
NVG 10,400 5,401
NEA 19,300 432
Any future repurchases and/or redemptions will be reported to shareholders in
the next annual or semi-annual report.
Nuveen Investments 129
Nuveen Investments:
Serving Investors for Generations
Since 1898, financial advisors and their clients have relied on Nuveen
Investments to provide dependable investment solutions. For the past century,
Nuveen Investments has adhered to the belief that the best approach to investing
is to apply conservative risk-management principles to help minimize volatility.
Building on this tradition, we today offer a range of high quality equity and
fixed-income solutions that are integral to a well-diversified core portfolio.
Our clients have come to appreciate this diversity, as well as our continued
adherence to proven, long-term investing principles.
WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS.
Nuveen Investments is a global investment management firm that seeks to help
secure the long-term goals of institutions and high net worth investors as well
as the consultants and financial advisors who serve them. Nuveen Investments
markets its growing range of specialized investment solutions under the
high-quality brands of HydePark, NWQ, Nuveen, Santa Barbara, Symphony,
Tradewinds and Winslow Capital. In total, the Company managed $141 billion of
assets on September 30, 2009.
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.
Learn more about Nuveen Funds at: WWW.NUVEEN.COM/CEF
o Share prices
o Fund details
o Daily financial news
o Investor education
o Interactive planning tools
Distributed by
Nuveen Investments, LLC
333 West Wacker Drive
Chicago, IL 60606 It's not what you earn,
www.nuveen.com it's what you keep.(R)
EAN-D-1009D
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/CEF/Info/Shareholder.
(To view the code, 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 ("Board") 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, 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 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 (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4)
-------------------------------------------------------------------------------------------------------------------------------
October 31, 2009 $ 20,669 $ 0 $ 0 $ 850
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 19,883 $ 0 $ 0 $ 850
-------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0% 0%
pursuant to
pre-approval
exception
-------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for
the audit of the Fund's annual financial statements and services provided
in connection with statutory and regulatory filings or engagements.
(2) "Audit Related Fees" are the aggregate fees billed for assurance and
related services reasonably related to the performance of the audit or
review of financial statements and are not reported under "Audit Fees."
(3) "Tax Fees" are the aggregate fees billed for professional services for tax
advice, tax compliance, and tax planning.
(4) "All Other Fees" are the aggregate fees billed for products and services
for agreed upon procedures engagements performed for leveraged funds.
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 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, 2009 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
October 31, 2008 $ 0 $ 0 $ 0
------------------------------------------------------------------------------------------------------------------------------------
Percentage approved 0% 0% 0%
pursuant to
pre-approval
exception
------------------------------------------------------------------------------------------------------------------------------------
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. 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 pre-approval 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, 2009 $ 850 $ 0 $ 0 $ 850
October 31, 2008 $ 850 $ 0 $ 0 $ 850
"Non-Audit Fees billed to Fund" for both fiscal year ends represent "Tax Fees"
and "All Other Fees" billed to Fund in their respective amounts from the
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 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, Jack B. Evans, Terence J. Toth, William J. Schneider and
David J. Kundert.
ITEM 6. SCHEDULE OF INVESTMENTS.
a) See Portfolio of Investments in Item 1.
b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
The registrant invests its assets primarily in municipal bonds and cash
management securities. On rare occasions the registrant may acquire, directly or
through a special purpose vehicle, equity securities of a municipal bond issuer
whose bonds the registrant already owns when such bonds have deteriorated or are
expected shortly to deteriorate significantly in credit quality. The purpose of
acquiring equity securities generally will be to acquire control of the
municipal bond issuer and to seek to prevent the credit deterioration or
facilitate the liquidation or other workout of the distressed issuer's credit
problem. In the course of exercising control of a distressed municipal issuer,
NAM may pursue the registrant's interests in a variety of ways, which may entail
negotiating and executing consents, agreements and other arrangements, and
otherwise influencing the management of the issuer. NAM does not consider such
activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but
nevertheless provides reports to the registrant's Board on its control
activities on a quarterly basis.
In the rare event that a municipal issuer were to issue a proxy or that the
registrant were to receive a proxy issued by a cash management security, NAM
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 registrant's Board or its representative. A member of NAM's legal department
would oversee the administration of the voting, and ensure that records were
maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on
Form N-PX, and the results provided to the registrant's Board and made available
to shareholders as required by applicable rules.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
THE PORTFOLIO MANAGER
The following individual has primary responsibility for the day-to-day
implementation of the registrant's investment strategies:
NAME FUND
PAUL BRENNAN Nuveen Insured Tax-Free Advantage Municipal Fund
Other Accounts Managed. In addition to managing the registrant, the portfolio
manager is also primarily responsible for the day-to-day portfolio management of
the following accounts:
TYPE OF ACCOUNT NUMBER OF
PORTFOLIO MANAGER MANAGED ACCOUNTS ASSETS
--------------------------------------------------------------------------------
Paul Brennan Registered Investment Company 13 $13.6 billion
Other Pooled Investment Vehicles 0 $0
Other Accounts 1 $1.06 million
* Assets are as of October 31, 2009. None of the assets in these accounts are
subject to an advisory fee based on performance.
Compensation. Each portfolio manager's compensation consists of three basic
elements--base salary, cash bonus and long-term incentive compensation. The
compensation strategy is to annually compare overall compensation, including
these three elements, to the market in order to create a compensation structure
that is competitive and consistent with similar financial services companies. As
discussed below, several factors are considered in determining each portfolio
manager's total compensation. In any year these factors may include, among
others, the effectiveness of the investment strategies recommended by the
portfolio manager's investment team, the investment performance of the accounts
managed by the portfolio manager, and the overall performance of Nuveen
Investments, Inc. (the parent company of NAM). Although investment performance
is a factor in determining the portfolio manager's compensation, it is not
necessarily a decisive factor. The portfolio manager's performance is evaluated
in part by comparing manager's performance against a specified investment
benchmark. This fund-specific benchmark is a customized subset (limited to bonds
in each Fund's specific state and with certain maturity parameters) of the
S&P/Investortools Municipal Bond index, an index comprised of bonds held by
managed municipal bond fund customers of Standard & Poor's Securities Pricing,
Inc. that are priced daily and whose fund holdings aggregate at least $2
million. As of October 31, 2009, the S&P/Investortools Municipal Bond index was
comprised of 54,552 securities with an aggregate current market value of $1,178
billion.
Base salary. Each portfolio manager is paid a base salary that is set at a level
determined by NAM in accordance with its overall compensation strategy discussed
above. NAM is not under any current contractual obligation to increase a
portfolio manager's base salary.
Cash bonus. Each portfolio manager is also eligible to receive an annual cash
bonus. The level of this bonus is based upon evaluations and determinations made
by each portfolio manager's supervisors, along with reviews submitted by his
peers. These reviews and evaluations often take into account a number of
factors, including the effectiveness of the investment strategies recommended to
the NAM's investment team, the performance of the accounts for which he serves
as portfolio manager relative to any benchmarks established for those accounts,
his effectiveness in communicating investment performance to stockholders and
their representatives, and his contribution to the NAM's investment process and
to the execution of investment strategies. The cash bonus component is also
impacted by the overall performance of Nuveen Investments, Inc. in achieving its
business objectives.
Long-term incentive compensation. In connection with the acquisition of Nuveen
Investments, Inc., by a group of investors led by Madison Dearborn Partners in
November 2007, certain employees, including portfolio managers, received profit
interests in Nuveen's parent. These profit interests entitle the holders to
participate in the appreciation in the value of Nuveen beyond the issue date and
vest over five to seven years, or earlier in the case of a liquidity event. In
addition, in July 2009, Nuveen Investments created and funded a trust, as part
of a newly-established incentive program, which purchased shares of certain
Nuveen Mutual Funds and awarded such shares, subject to vesting, to certain
employees, including portfolio managers.
Material Conflicts of Interest. Each portfolio manager's simultaneous management
of the registrant and the other accounts noted above may present actual or
apparent conflicts of interest with respect to the allocation and aggregation of
securities orders placed on behalf of the registrant and the other account. NAM,
however, believes that such potential conflicts are mitigated by the fact that
the NAM has adopted several policies that address potential conflicts of
interest, including best execution and trade allocation policies that are
designed to ensure (1) that portfolio management is seeking the best price for
portfolio securities under the circumstances, (2) fair and equitable allocation
of investment opportunities among accounts over time and (3) compliance with
applicable regulatory requirements. All accounts are to be treated in a
non-preferential manner, such that allocations are not based upon account
performance, fee structure or preference of the portfolio manager, although the
allocation procedures may provide allocation preferences to funds with special
characteristics (such as favoring state funds versus national funds for
allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct
that sets forth policies regarding conflicts of interest.
Beneficial Ownership of Securities. As of October 31, 2009, the portfolio
manager beneficially owned the following dollar range of equity securities
issued by the registrant and other Nuveen Funds managed by NAM's municipal
investment team.
DOLLAR RANGE OF
EQUITY SECURITIES
DOLLAR RANGE OF BENEFICIALLY OWNED
EQUITY IN THE REMAINDER OF
SECURITIES NUVEEN FUNDS MANAGED
BENEFICIALLY BY NAM'S MUNICIPAL
NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM
--------------------------------------------------------------------------------------------------------------------
Paul Brennan Nuveen Insured Tax-Free Advantage Municipal Fund $0 $100,001-$500,000
PORTFOLIO MANAGER BIO:
Paul Brennan, CFA, CPA, became a portfolio manager of Flagship Financial Inc. in
1994, and subsequently became an Assistant Vice President of NAM upon the
acquisition of Flagship Resources Inc. by Nuveen in 1997. He became Vice
President of NAM in 2002. He currently manages investments for 14
Nuveen-sponsored investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Period* (a) (b) (c) (d)*
TOTAL NUMBER OF AVERAGE TOTAL NUMBER OF SHARES MAXIMUM NUMBER (OR
SHARES (OR PRICE (OR UNITS) PURCHASED AS APPROXIMATE DOLLAR VALUE) OF
UNITS) PAID PER PART OF PUBLICLY SHARES (OR UNITS) THAT MAY YET
PURCHASED SHARE (OR ANNOUNCED PLANS OR BE PURCHASED UNDER THE PLANS OR
UNIT) PROGRAMS PROGRAMS
NOVEMBER 1-30, 2008 0 0 1,855,000
DECEMBER 1-31, 2008 0 0 1,855,000
JANUARY 1-31, 2009 0 0 1,855,000
FEBRUARY 1-28, 2009 19,300 $10.98 19,300 1,835,700
MARCH 1-31, 2009 0 0 1,835,700
APRIL 1-30, 2009 0 0 1,835,700
MAY 1-31, 2009 0 0 1,835,700
JUNE 1-30, 2009 0 0 1,835,700
JULY 1-31, 2009 0 0 1,835,700
AUGUST 1-31, 2009 0 0 1,835,700
SEPTEMBER 1-30, 2009 0 0 1,835,700
OCTOBER 1-31, 2009 0 0 1,850,000
TOTAL 19,300
* The registrant's repurchase program, which authorized the repurchase of
1,855,000 shares, was announced August 7, 2008. On October 3, 2009, the
program was reauthorized for a maximum repurchase amount of 1,850,000
shares. Any repurchases made by the registrant pursuant to the program were
made through open-market transactions.
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/CEF/Info/
Shareholder and there were no amendments during the period covered by this
report. (To view the code, 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
-----------------------------------------------------------
By (Signature and Title) /s/ Kevin J. McCarthy
----------------------------------------------
Kevin J. McCarthy
Vice President and Secretary
Date: January 8, 2010
-------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Gifford R. Zimmerman
----------------------------------------------
Gifford R. Zimmerman
Chief Administrative Officer
(principal executive officer)
Date: January 8, 2010
-------------------------------------------------------------------
By (Signature and Title) /s/ Stephen D. Foy
----------------------------------------------
Stephen D. Foy
Vice President and Controller
(principal financial officer)
Date: January 8, 2010
-------------------------------------------------------------------