N-CSR 1 file001.txt NUVEEN INSURED NEW YORK DIVIDEND ADV MUNI FUND 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 811-09473 --------------------- Nuveen Insured New York Dividend Advantage Municipal Fund ------------------------------------------------------------------------------ (Exact name of registrant as specified in charter) Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip code) Jessica R. Droeger Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------ (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: September 30 ------------------ Date of reporting period: September 30, 2005 ------------------ Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL REPORT September 30, 2005 Nuveen Investments Municipal Exchange-Traded Closed-End Funds NUVEEN NEW YORK INVESTMENT QUALITY MUNICIPAL FUND, INC. NQN NUVEEN NEW YORK SELECT QUALITY MUNICIPAL FUND, INC. NVN NUVEEN NEW YORK QUALITY INCOME MUNICIPAL FUND, INC. NUN NUVEEN INSURED NEW YORK PREMIUM INCOME MUNICIPAL FUND, INC. NNF NUVEEN INSURED NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND NKO NUVEEN INSURED NEW YORK TAX-FREE ADVANTAGE MUNICIPAL FUND NRK Photo of: Man, woman and child at the beach. Photo of: A child. DEPENDABLE, TAX-FREE INCOME BECAUSE IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) Logo: NUVEEN Investments Photo of: Woman Photo of: Man and child Photo of: Woman NOW YOU CAN RECEIVE YOUR NUVEEN FUND REPORTS FASTER. NO MORE WAITING. SIGN UP TODAY TO RECEIVE NUVEEN FUND INFORMATION BY E-MAIL. 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. ---------------------------- DELIVERY DIRECT TO YOUR E-MAIL INBOX ---------------------------- IT'S FAST, EASY & FREE: WWW.INVESTORDELIVERY.COM if you get your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR WWW.NUVEEN.COM/ACCOUNTACCESS if you get your Nuveen Fund dividends and statements directly from Nuveen. (Be sure to have the address sheet that accompanied this report handy. You'll need it to complete the enrollment process.) Logo: NUVEEN Investments Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board Chairman's LETTER TO SHAREHOLDERS Once again, I am pleased to report that over the 12-month period covered by this report your Fund continued to provide you with tax-free monthly income, as well as with an attractive total return. For more details about the management strategy and performance of your Fund, please see the Portfolio Manager's Comments and Performance Overview sections of this report. Given the rebounding strength of the economy, some market commentators are speculating about whether longer-term interest rates will soon begin to rise substantially, mirroring the rise that has taken place in shorter-term rates. If longer-term rates do begin to rise significantly, some have suggested that this would be a signal to begin adjusting your holdings of fixed-income investments. "IN FACT, A WELL-DIVERSIFIED PORTFOLIO MAY ACTUALLY HELP TO REDUCE YOUR OVERALL INVESTMENT RISK OVER THE LONG TERM." Nobody knows what the market will do in the future or what investments will turn out to be tomorrow's best performers. But from our experience, we do know that a well-balanced portfolio, structured and carefully monitored with the help of a trusted investment professional, can be an important component in helping you achieve your long-term financial goals. In fact, a well-diversified portfolio may actually help to reduce your overall investment risk over the long term. That is one reason why we believe that a municipal bond investment like your Fund can be an important building block in a comprehensive investment program designed to perform well in a variety of market conditions. As an added convenience for you, I urge you to consider receiving future Fund reports and other Fund information by e-mail and the Internet. Not only will you be able to receive the information faster, but this also may help lower your Fund's expenses. Sign up is quick and easy - see the inside front cover of this report for instructions. Earlier in 2005, The St. Paul Travelers Companies, Inc., which owned 79% of Nuveen Investments, Inc. (the parent of your Fund's investment adviser), sold a substantial portion of its stake in Nuveen. More recently, St. Paul sold the balance of its shares to Nuveen Investments or to others. Please be assured that these transactions only affect Nuveen's corporate structure, and they do not have any impact on the investment objectives or management of your Fund. At Nuveen Investments, our mission continues to be to assist you and your financial advisor by offering investment services and products that can help you to secure your financial objectives. We are grateful that you have chosen us as a partner as you pursue your financial goals, and we look forward to continuing to earn your trust in the months and years ahead. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board November 15, 2005 Nuveen New York Municipal Exchange-Traded Closed-End Funds NQN, NVN, NUN, NNF, NKO, NRK Portfolio Manager's COMMENTS Portfolio manager Paul Brennan discusses the economic and municipal market environments, key investment strategies and the performance of these six New York Funds. Paul has 14 years of investment experience, including 8 years with Nuveen. He has managed NQN, NVN, NUN and NNF since 1999 and NKO and NRK since their inceptions in 2002. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE 12-MONTH PERIOD ENDED SEPTEMBER 30, 2005? Between October 1, 2004, and September 30, 2005, the Federal Reserve implemented eight separate 0.25% increases in the closely-followed fed funds rate. These actions, which were aimed at controlling economic growth as well as the pace of inflation, raised this short-term target from 1.75% to 3.75%, its highest point since August 2001. Most shorter-term municipal market rates also rose over this period. By comparison, longer-term interest rates rose at a much more modest pace. The yield on the benchmark 10-year U.S. Treasury note ended September 2005 at 4.33%, compared with 4.12% one year earlier. Longer-term yields in the municipal market followed a similar pattern. The yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, ended the reporting period at 5.04%, just two basis points higher than it was on September 30, 2004. Together, the dramatic rise in shorter-term rates and the modest increase in longer-term rates produced an overall flattening of the yield curve, which generally helped the relative performance of bonds with longer effective maturities while hindering the total return of bonds with shorter maturities or short call dates. (The yield curve is said to flatten when shorter- term interest rates more closely approach the usually higher levels of longer-term interest rates.) Despite the Fed's rate hikes and a tremendous surge in energy prices, the general economic expansion managed to maintain a fairly solid footing over this reporting period. As one measure, the U.S. gross domestic product (GDP) grew by 3.3% annualized in the fourth quarter of 2004 and by annualized rates of 3.8% and 3.3% in the first and second quarters of 2005, respectively. (Third quarter GDP growth was not available at the time this report was prepared.) 4 The volatility of the energy sector during this period was reflected in the 1.2% jump in the Consumer Price Index (CPI) during September 2005, the largest monthly increase in 23 years. As of September 2005, the year-over-year increase in the CPI was 4.7%, the fastest annual pace since 1991. The employment picture remained relatively positive, with national unemployment standing at 5.1% in September 2005, down from 5.4% in September 2004. Over the 12 months ended September 2005, municipal bond supply nationwide remained strong as $402.4 billion in new securities came to market. During the first nine months of 2005, municipal issuance totaled $309.5 billion in 10,400 issues, up 15% from the same period in 2004, putting 2005's new supply on track to exceed 2003's record $382.7 billion. A major factor behind the increase in supply was the flatter yield curve, which made advance refundings more economically attractive. During January-September 2005, refundings were 55% higher than during the same period in 2004, as issuers sought to take advantage of the current interest rate environment. (Advance refundings, also called pre-refundings, occur when an issuer sells new bonds and uses the proceeds to fund principal and interest payments of older, existing bonds. This process often results in lower borrowing costs for bond issuers.) HOW ABOUT ECONOMIC AND MARKET CONDITIONS IN NEW YORK? During this 12-month period, New York continued its economic recovery, led by growth in financial services, healthcare, education and tourism. Although more diversified than 10 years ago, the state's economy still remains highly dependent on the financial services sector, which makes it more susceptible to economic cycles. On the positive side, tourism has largely returned to pre-September 11, 2001, levels. However, manufacturing employment continued to decline, especially in upstate New York. As of September 2005, unemployment in New York stood at 5.2%, down from 5.6% in September 2004. As of September 2005, New York State general obligation (GO) bonds were rated A1 with a positive outlook by Moody's, AA with a stable outlook by Standard and Poor's, and AA- with a stable outlook by Fitch. In November 2004, Moody's upgraded its rating to A1 from A2, citing improvement in the state's economic outlook. That rating was reconfirmed in 5 February 2005, as was S&P's AA rating. In April 2005, Moody's also upgraded the rating on New York City GO debt to A1 from A2, and in May 2005, S&P followed suit, raising the city's rating to A+ from A. These represented the highest ratings ever given New York City by these two credit agencies, which cited the city's ability to make difficult budgetary and fiscal policy decisions in recovering from one of the most serious fiscal crises in decades. For the 12 months ended September 2005, municipal bond issuance in New York totaled $45.6 billion, an increase of 24% from the previous 12 months. During the first nine months of 2005, state issuers offered $32.1 billion in new issuance, up 30% from January-September 2004. For both time periods, New York ranked second only to California in terms of municipal issuance. According to Moody's, New York State has more outstanding tax-supported debt than any other state in the union. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THE 12 MONTHS ENDED SEPTEMBER 30, 2005? One of our priorities during this reporting period was duration management. Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds being more sensitive to changes and thereby presenting greater interest rate risk. Duration management became increasingly important in 2005, as the flattening of the yield curve resulted in a dramatic rise in advance refundings. Advance refunding of bonds held by the Funds generally had an immediate, positive impact on their performances, as well as a shortening effect on the Funds' durations. In order to maintain these durations within our preferred strategic range, we sold some of our holdings with shorter durations, including short-dated pre-refunded bonds, bonds that were currently callable, and bonds priced to short calls, all of which tended to underperform in the interest rate environment of the past 12 months. 6 The proceeds from the sales of these holdings were then reinvested primarily in bonds in the intermediate part of the yield curve, that is, bonds that mature in 10 to 20 years. The longer durations of these bonds enabled us to counteract some of the duration shortening caused by advance refundings and also contributed favorably to the Funds' performances during this period. In addition, selling shorter duration bonds and reinvesting in bonds further out on the yield curve with better call protection helped to improve the Funds' overall call protection profile. Overall, the ample new issue supply in New York during this period provided a number of opportunities for us to find the types of bonds we were seeking, and we actively took advantage of this situation. While our main focus was on the intermediate part of the yield curve, we also kept an opportunistic eye toward longer-term bonds with maturities between 20 and 30 years that we believed could add value to the Funds' portfolios. In general, much of the new issue supply was highly rated and/or insured, and we participated in some of the largest issues of the period, including the $2.8 billion New York State Thruway Authority offering in August 2005 and several insured New York City issues. We also added insured credits issued by Sales Tax Asset Receivable Corporation (STAR Corp.) in October 2004. The proceeds from this $2.5 billion issue are being used to refinance New York City Municipal Assistance Corporation (MAC) bonds, which were originally issued in the 1970s as part of the city's bailout plan. The bonds we purchased have maturity dates ranging from 2024 to 2032. In NKO and NRK, which can invest up to 20% of their assets in uninsured investment-grade quality securities, we also emphasized maintaining the Funds' exposure to these lower quality, but still investment-grade-rated credits. While these bonds generally performed very well during this period, they also proved popular with investors and we did not find many appealing opportunities to add to our positions among these types of securities. In NRK, we also used forward settle interest rate swaps, a type of derivative financial instrument, as part of our duration management strategy. As discussed in our last shareholder report, we began using these swaps in late 2004 in an effort to reduce some of 7 NRK's interest rate risk. These hedges were not an attempt to profit from correctly predicting the timing and direction of interest rate movements. Instead, our sole objective was to reduce the duration of this Fund without having a negative impact on its income stream or common share dividends over the short term. We believe the hedging strategy was effective in achieving the intended goal of helping to reduce NRK's net asset value (NAV) volatility, and in June 2005, we removed the hedge from this Fund. However, during the period that the hedge was in place, it had a negative impact on NRK's performance, which affected the Fund's total return for the entire reporting period. The negative impact was caused by the decline of long-term interest rates during much of this period, which resulted in a decline in the value of the hedge as the value of the Fund's portfolio rose. The Fund was nevertheless a strong performer for the entire period. HOW DID THE FUNDS PERFORM? Individual results for these Funds, as well as for comparative indexes and peer group averages, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 9/30/05 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NQN 3.90% 8.88% 6.77% -------------------------------------------------------------------------------- NVN 4.64% 8.70% 6.73% -------------------------------------------------------------------------------- NUN 4.56% 8.30% 6.73% -------------------------------------------------------------------------------- NNF 4.50% 8.24% 7.24% -------------------------------------------------------------------------------- NKO 6.23% NA NA -------------------------------------------------------------------------------- NRK 7.05% NA NA -------------------------------------------------------------------------------- Lehman Brothers NY Insured Tax-Exempt Bond Index1 3.88% 6.73% 6.25% -------------------------------------------------------------------------------- Lipper NY Insured Municipal Debt Funds Average2 5.84% 7.80% 6.49% -------------------------------------------------------------------------------- * Annualized Past performance is not predictive of future results. Current performance may be higher or lower than the data shown. Returns do not reflect the deduction of taxes that shareholders may have to pay on Fund distributions or upon the sale of Fund shares. For additional information, see the individual Performance Overview for your Fund in this report. 1 The Lehman Brothers New York Insured Tax-Exempt Bond Index is an unleveraged, unmanaged index comprising a broad range of insured New York municipal bonds. Results for the Lehman index do not reflect any expenses. 2 The Lipper New York Insured Municipal Debt Funds category average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 1 year, 12 funds; 5 years, 7 funds; and 10 years, 6 funds. Fund and Lipper returns assume reinvestment of dividends. 8 For the 12 months ended September 30, 2005, the total returns on NAV for all six of the Funds in this report exceeded the return on the Lehman Brothers New York Insured Tax-Exempt Bond Index. NKO and NRK also outperformed the average return for the Lipper New York Insured Municipal Debt Fund peer group for this period, while the returns of the other four Funds trailed this measure. One of the primary factors benefiting the 12-month performance of these Funds relative to that of the unleveraged Lehman Brothers New York Insured index was the Funds' use of financial leverage. While leveraging can add volatility to a Fund's NAV and share price, especially during periods when interest rates rise, this strategy can also provide opportunities for additional income and total return for common shareholders when short-term interest rates remain relatively low and long-term rates stay relatively steady, as they did during this reporting period. As noted earlier, the municipal market yield curve flattened over the course of this reporting period as short-term interest rates rose dramatically and longer-term interest rates finished the 12 months about where they began it. As a result, relatively heavier exposure to longer durations and the longer end of the yield curve helped the performances of NKO and NRK. The performances of the other four Funds, and especially NQN, were hurt by their relatively greater exposure to shorter duration bonds that impacted negatively by the yield curve flattening. In addition, NKO and NRK also benefited from their allocations of lower investment-grade-quality bonds during this period, as these bonds generally outperformed the higher credit quality sectors. This was largely the result of the interest rate environment over these 12 months, as investor demand for the higher yields typically associated with lower-rated bonds drove up the prices of these bonds. As one example, the returns of NKO and NRK were helped by the Funds' holdings of bonds issued by New York and Puerto Rico and backed by the 1998 master tobacco settlement agreement. These lower-rated tobacco bonds made significant contributions to these Funds' returns as the litigation environment improved and supply/demand dynamics drove tobacco bond prices 9 higher. Unenhanced BBB rated tobacco holdings accounted for 4% of NKO's portfolio and 3% of NRK's as of September 30, 2005. Lower-rated investment-grade hospital bonds also made positive contributions to the total returns of these two Funds during this period, with the healthcare sector ranked second by Lehman in terms of performance among all municipal revenue sectors for the period. In addition to leverage, yield curve positioning and credit exposure, another factor affecting the Funds' performances during this period was advance refundings. As mentioned earlier, refinancings rose sharply during this period, and the Funds' often were able to benefit if they were holding bonds that were advanced refunded. NRK, for example, saw the pre-refunding of a BBB- rated holding for a Yonkers Inc. industrial development issue result in a corresponding increase in price. More generally, the amount and timing of an advance refunding of a holding within a portfolio had a great deal of impact on whether this event ultimately helped or hurt the Fund's overall performance over the period. Usually, a bond that was advance refunded tended to benefit from an immediate price increase as its credit quality was upgraded (because the bond is now backed by U.S. Government securities). However, that same bond - now priced as a high quality issue to a shorter final maturity - might then have underperformed lower quality issues and issues with longer final maturities over the balance of the reporting period. Therefore, the size of the holding, the credit quality boost caused by the pre-refunding and the amount of time remaining before the end of the reporting period all had an impact on the overall performance of a pre-refunded bond. As noted, this phenomenon explains a great deal of the performance differences among these six Funds over this period. 10 HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF SEPTEMBER 30, 2005? We continued to believe that maintaining strong credit quality was an important requirement. As of September 30, 2005, NQN, NVN, NUN and NNF continued to be 100% invested in insured and/or U.S. guaranteed securities, while NKO and NRK had allocated 84% and 85% of their portfolios, respectively, to insured bonds. At the end of September 2005, potential call exposure for the period from October 2005 through the end of 2007 ranged from 1% in NKO and NRK to 7% in NNF, 8% in NVN, 10% in NQN and 13% in NUN. The number of actual bond calls in all of these Funds depends largely on future market interest rates. 11 Dividend and Share Price INFORMATION All of the Funds in this report use leverage to enhance opportunities for additional income for common shareholders. The extent of this benefit is tied in part to the short-term rates these leveraged Funds pay their MuniPreferred(R) shareholders. During periods of low short-term rates, leveraged Funds generally pay lower dividends to their MuniPreferred shareholders, which can leave more earnings to support common share dividends. However, when short-term interest rates rise, as they did during this reporting period, the Funds' borrowing costs also rise. While leveraging still provided benefits for common shareholders over this 12-month period, the extent of these benefits was reduced when compared with some past periods. In addition, relatively low interest rates at the longer end of the yield curve during much of this period had an impact on the earnings of newer Funds such as NKO and NRK, which have had fewer opportunities to build reserves. These factors resulted in two monthly dividend reductions in NKO, three in NQN, NVN, NUN and NNF, and four in NRK over the 12-month period ended September 30, 2005. In addition, due to normal portfolio activity, common shareholders of the following Funds received capital gains and net ordinary income distributions at the end of December 2004 as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NQN $0.2745 $ -- -------------------------------------------------------------------------------- NVN $0.1280 $ -- -------------------------------------------------------------------------------- NUN $0.0900 $0.0009 -------------------------------------------------------------------------------- NNF $0.1836 $ -- -------------------------------------------------------------------------------- NKO $0.1158 $0.0005 -------------------------------------------------------------------------------- The relatively large distributions from several of these Funds represented an important part of their total return for this period. For the most part, this distribution was generated by bond calls or by sales of appreciated securities. This had a slight negative impact on the Funds' earning power per share and was a minor factor in the dividend reductions noted above. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumula- 12 tively 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 September 30, 2005, all of the Funds in this report except NRK had positive UNII balances for both financial statement and tax purposes. NRK had a positive UNII balance for tax purposes, but a negative UNII balance for financial statement purposes. As of September 30, 2005, the Funds' share prices were trading at discounts to their NAVs as shown in the accompanying chart: 9/30/05 12-MONTH AVERAGE DISCOUNT DISCOUNT -------------------------------------------------------------------------------- NQN -5.86% -4.50% -------------------------------------------------------------------------------- NVN -7.12% -5.53% -------------------------------------------------------------------------------- NUN -7.10% -6.75% -------------------------------------------------------------------------------- NNF -5.83% -4.96% -------------------------------------------------------------------------------- NKO -6.32% -6.27% -------------------------------------------------------------------------------- NRK -6.53% -7.80% -------------------------------------------------------------------------------- 13 Nuveen New York Investment Quality Municipal Fund, Inc. NQN Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 88% U.S. Guaranteed 12% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0815 Nov 0.0815 Dec 0.0815 Jan 0.0815 Feb 0.0815 Mar 0.0785 Apr 0.0785 May 0.0785 Jun 0.0745 Jul 0.0745 Aug 0.0745 Sep 0.0695 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 15.48 15.5 15.58 15.61 15.53 15.62 15.67 15.67 15.65 15.64 15.63 15.69 15.63 15.68 15.89 15.93 15.97 15.94 16 15.88 15.87 15.99 15.99 16.02 15.99 15.76 15.55 15.48 15.46 15.61 15.87 15.75 15.76 15.66 15.66 15.52 15.62 15.72 15.7 15.7 15.8 15.73 15.73 15.75 15.8 15.75 15.73 15.75 15.84 15.92 15.57 15.51 15.48 15.38 15.27 15.18 15.19 15.15 15.18 15.2 15.18 15.24 15.35 15.49 15.42 15.41 15.49 15.47 15.56 15.35 15.25 15.12 15.03 15.08 15.03 15.01 15.06 15 14.99 14.95 14.96 15 15.07 15.1 15.139 15.15 15.19 15.35 15.39 15.41 15.41 15.4 15.27 15.3 15.24 15.2 15.04 15.01 15.03 15.1 15.19 15.21 15.2 15.29 15.27 15.3 15.41 15.44 15.4 15.23 15.22 15.11 15.3 15.19 15.17 15.16 15.12 15.1 15.11 14.92 14.75 14.68 14.67 14.69 14.77 14.85 14.78 14.81 14.83 14.83 14.81 14.73 14.82 14.75 14.75 14.72 14.91 15.02 15.03 15.03 14.97 14.97 15.07 15.12 15.12 15.22 15.22 15.27 15.3 15.39 15.33 15.33 15.32 15.32 15.21 15.26 15.28 15.28 15.25 15.29 15.284 15.3 15.37 15.49 15.5 15.38 15.44 15.55 15.53 15.61 15.66 15.69 15.67 15.58 15.48 15.45 15.37 15.37 15.31 15.34 15.44 15.43 15.38 15.39 15.42 15.5 15.46 15.38 15.43 15.53 15.48 15.47 15.58 15.55 15.58 15.56 15.65 15.62 15.57 15.62 15.54 15.6 15.58 15.46 15.48 15.51 15.46 15.44 15.62 15.65 15.65 15.6 15.57 15.55 15.51 15.45 15.64 15.51 15.61 15.55 15.51 15.56 15.64 15.6 15.67 15.63 15.57 15.59 15.58 15.6 15.68 15.7 15.7 15.66 15.7 15.77 15.69 15.7 15.7 15.56 15.61 15.57 15.54 15.43 15.29 15.24 15.2 15.21 15.14 14.94 14.95 14.92 14.92 14.93 9/30/05 14.94 FUND SNAPSHOT ------------------------------------ Common Share Price $14.94 ------------------------------------ Common Share Net Asset Value $15.87 ------------------------------------ Premium/(Discount) to NAV -5.86% ------------------------------------ Market Yield 5.58% ------------------------------------ Taxable-Equivalent Yield1 8.33% ------------------------------------ Net Assets Applicable to Common Shares ($000) $281,203 ------------------------------------ Average Effective Maturity on Securities (Years) 16.12 ------------------------------------ Leverage-Adjusted Duration 8.32 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/90) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 4.08% 3.90% ------------------------------------ 5-Year 8.89% 8.88% ------------------------------------ 10-Year 5.89% 6.77% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 29.3% ------------------------------------ Healthcare 15.9% ------------------------------------ U.S. Guaranteed 11.7% ------------------------------------ Transportation 11.4% ------------------------------------ Tax Obligation/General 11.3% ------------------------------------ Utilities 6.7% ------------------------------------ Education and Civic Organizations 6.4% ------------------------------------ Other 7.3% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.2745 per share. 14 Nuveen New York Select Quality Municipal Fund, Inc. NVN Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 89% U.S. Guaranteed 11% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0795 Nov 0.0795 Dec 0.0795 Jan 0.0795 Feb 0.0795 Mar 0.0765 Apr 0.0765 May 0.0765 Jun 0.0725 Jul 0.0725 Aug 0.0725 Sep 0.0695 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 14.97 15 15.11 15.2 15.2 15.43 15.5 15.64 15.43 15.44 15.39 15.38 15.36 15.44 15.55 15.5 15.44 15.46 15.45 15.44 15.45 15.56 15.5 15.54 15.53 15.23 15.01 15.03 15.16 15.27 15.3 15.25 15.12 15.21 15.18 15 15.09 15.15 15.15 15.13 14.86 14.87 14.81 14.75 14.95 14.91 14.86 14.95 14.979 15.03 14.97 14.85 14.82 14.76 14.77 14.79 14.86 14.8 14.76 14.83 14.8 14.88 15.1 15.42 15.32 15 15.01 15.03 15.17 15.16 15.26 15.36 15.3 15.12 15.01 15.06 15.05 15.05 15.05 15.07 15.071 15.11 15.15 15.2 15.3 15.38 15.3 15.27 15.31 15.36 15.36 15.37 15.36 15.38 15.4 15.39 15.39 15.33 15.38 15.34 15.34 15.36 15.36 15.37 15.34 15.4 15.4 15.33 15.28 15.12 15.18 15.08 14.96 15.1 15.1 15.09 14.98 14.93 14.69 14.61 14.61 14.42 14.39 14.43 14.49 14.52 14.46 14.54 14.54 14.51 14.51 14.54 14.59 14.47 14.47 14.48 14.53 14.58 14.59 14.53 14.56 14.51 14.64 14.7 14.7 14.8 14.8 14.87 14.99 15.1 15.15 14.99 15.05 15.13 15.11 15.1 15.08 15.11 15.11 15.15 15.16 15.15 15.18 15.32 15.31 15.35 15.27 15.32 15.44 15.41 15.45 15.39 15.42 15.39 15.35 15.28 15.16 15.2 15.23 15.239 15.15 15.2 15.18 15.45 15.49 15.48 15.5 15.5 15.5 15.47 15.48 15.53 15.55 15.55 15.57 15.55 15.69 15.59 15.57 15.34 15.32 15.3 15.18 15.19 15.3 15.19 15.32 15.39 15.5 15.55 15.55 15.49 15.5 15.55 15.42 15.4 15.39 15.34 15.42 15.45 15.38 15.43 15.56 15.55 15.62 15.54 15.46 15.6 15.56 15.52 15.65 15.73 15.58 15.6 15.601 15.76 15.6 15.5 15.43 15.44 15.42 15.27 15.22 15.15 15.08 15.02 15.07 15.049 15.03 14.84 14.89 14.6 14.71 14.71 9/30/05 14.74 FUND SNAPSHOT ------------------------------------ Common Share Price $14.74 ------------------------------------ Common Share Net Asset Value $15.87 ------------------------------------ Premium/(Discount) to NAV -7.12% ------------------------------------ Market Yield 5.66% ------------------------------------ Taxable-Equivalent Yield1 8.45% ------------------------------------ Net Assets Applicable to Common Shares ($000) $371,935 ------------------------------------ Average Effective Maturity on Securities (Years) 16.97 ------------------------------------ Leverage-Adjusted Duration 8.66 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/22/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 4.93% 4.64% ------------------------------------ 5-Year 8.37% 8.70% ------------------------------------ 10-Year 6.13% 6.73% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.1% ------------------------------------ Tax Obligation/General 13.7% ------------------------------------ Healthcare 12.7% ------------------------------------ U.S. Guaranteed 11.4% ------------------------------------ Utilities 9.4% ------------------------------------ Education and Civic Organizations 8.1% ------------------------------------ Transportation 8.0% ------------------------------------ Other 9.6% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.1280 per share. 15 Nuveen New York Quality Income Municipal Fund, Inc. NUN Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 87% U.S. Guaranteed 13% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0765 Nov 0.0765 Dec 0.0765 Jan 0.0765 Feb 0.0765 Mar 0.0735 Apr 0.0735 May 0.0735 Jun 0.0695 Jul 0.0695 Aug 0.0695 Sep 0.0665 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 14.62 14.66 14.64 14.75 14.72 14.88 15 14.99 14.87 14.84 14.86 14.83 14.96 14.97 14.96 14.96 14.98 15.03 15.13 15.12 15.06 15.12 15.21 15.09 15.24 15.08 14.85 14.85 14.85 14.82 14.88 14.95 14.98 14.93 14.9 14.83 14.93 14.97 14.94 14.84 14.7 14.52 14.54 14.41 14.52 14.56 14.5 14.56 14.57 14.65 14.56 14.49 14.49 14.37 14.27 14.28 14.27 14.1 14.13 14.16 14.22 14.22 14.36 14.44 14.5 14.29 14.3 14.4 14.44 14.46 14.48 14.41 14.52 14.55 14.52 14.58 14.62 14.6 14.68 14.85 14.8 14.9 14.87 14.95 15.01 14.9 14.94 14.93 14.95 15.1 15.14 15.12 15.17 15.2 15.13 15.12 15.05 15.03 14.96 15 14.99 15.09 15.1 15.18 15.17 15.16 15.17 15.07 15.03 14.89 14.71 14.62 14.72 14.62 14.66 14.55 14.64 14.44 14.49 14.21 14.19 14.05 14.02 14.13 14.24 14.3 14.29 14.28 14.32 14.32 14.29 14.35 14.37 14.31 14.3 14.24 14.38 14.67 14.56 14.45 14.47 14.43 14.6 14.69 14.69 14.77 14.77 14.85 14.85 14.95 14.89 14.75 14.7 14.89 14.68 14.89 14.87 14.84 14.82 14.83 14.91 14.8 14.86 14.87 14.91 14.86 14.83 14.94 14.98 14.95 15.03 15.05 15.09 14.99 15.02 14.81 14.69 14.7 14.68 14.72 14.77 14.8 14.84 14.92 14.98 15 14.99 14.96 14.94 14.92 15.01 15.08 15.12 15.13 15.13 15.18 15.17 15.13 15.09 15.08 15.06 15.01 14.96 14.84 14.94 14.78 14.8 14.8 15 14.98 14.98 14.9 15 14.9 14.86 14.74 14.71 14.61 14.71 14.62 14.66 14.66 14.72 14.71 14.67 14.65 14.68 14.71 14.7 14.71 14.78 14.8 14.83 14.84 14.832 14.92 14.93 14.85 14.87 14.85 14.87 14.8 14.72 14.65 14.59 14.59 14.58 14.56 14.48 14.5 14.54 14.42 14.51 14.53 9/30/05 14.53 FUND SNAPSHOT ------------------------------------ Common Share Price $14.53 ------------------------------------ Common Share Net Asset Value $15.64 ------------------------------------ Premium/(Discount) to NAV -7.10% ------------------------------------ Market Yield 5.49% ------------------------------------ Taxable-Equivalent Yield1 8.19% ------------------------------------ Net Assets Applicable to Common Shares ($000) $376,697 ------------------------------------ Average Effective Maturity on Securities (Years) 16.02 ------------------------------------ Leverage-Adjusted Duration 8.73 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/91) ------------------------------------ 1-Year 5.52% 4.56% ------------------------------------ 5-Year 8.55% 8.30% ------------------------------------ 10-Year 6.60% 6.73% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.4% ------------------------------------ Education and Civic Organizations 15.1% ------------------------------------ U.S. Guaranteed 13.4% ------------------------------------ Tax Obligation/General 11.3% ------------------------------------ Healthcare 10.0% ------------------------------------ Transportation 8.5% ------------------------------------ Utilities 7.7% ------------------------------------ Other 6.6% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.0909 per share. 16 Nuveen Insured New York Premium Income Municipal Fund, Inc. NNF Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 91% U.S. Guaranteed 9% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.077 Nov 0.077 Dec 0.077 Jan 0.077 Feb 0.077 Mar 0.074 Apr 0.074 May 0.074 Jun 0.07 Jul 0.07 Aug 0.07 Sep 0.0665 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 15.34 15.4 15.4 15.49 15.35 15.48 15.69 15.69 15.65 15.8 15.7 15.62 15.581 15.63 15.61 15.59 15.6 15.6 15.58 15.53 15.49 15.5 15.44 15.55 15.6 15.42 15.03 15.08 15.12 15.13 15.18 15.2 15.24 15.25 15.3 15.191 15.31 15.34 15.37 15.4 15.26 15.25 15.26 15.14 15.12 15.24 15.16 15.23 15.18 15.25 15.05 15.07 15.15 15 14.85 14.87 14.82 14.79 14.71 14.82 14.66 14.8 15.05 15.15 15.26 15.26 15.35 15.45 15.59 15.18 14.81 14.71 14.61 14.59 14.55 14.63 14.63 14.68 14.71 14.7 14.72 14.76 14.73 14.84 14.86 14.94 14.98 15.09 15.07 15.09 15.2 15.22 15.17 15.13 15.13 15.11 14.92 14.99 14.84 15 15.02 14.98 15.01 15.14 15.13 15.14 15.21 15.16 15.19 15.12 15 14.85 15.02 15.01 15 14.8 14.86 14.71 14.58 14.4 14.37 14.11 14.14 14.19 14.289 14.29 14.35 14.48 14.49 14.559 14.5 14.55 14.6 14.77 14.67 14.71 14.8 14.95 14.97 14.88 14.82 14.86 14.95 14.91 14.86 14.8 14.8 14.92 14.95 14.96 14.91 14.96 14.95 14.98 14.84 14.78 14.8 14.87 14.88 15 15.01 14.991 15.11 15.05 15.14 15.09 15.18 15.23 15.24 15.35 15.32 15.4 15.58 15.5 15.39 15.44 15.51 15.5 15.52 15.62 15.63 15.6 15.71 15.68 15.75 15.8 15.78 15.58 15.58 15.6 15.55 15.57 15.45 15.4 15.38 15.32 15.45 15.44 15.33 15.44 15.29 15.25 15.55 15.52 15.43 15.46 15.46 15.37 15.36 15.41 15.41 15.466 15.4 15.53 15.45 15.45 15.35 15.43 15.59 15.54 15.66 15.49 15.54 15.49 15.51 15.48 15.49 15.6 15.54 15.55 15.6 15.56 15.7 15.6 15.74 15.72 15.72 15.68 15.73 15.65 15.74 15.73 15.52 15.45 15.28 15.24 15.21 15.2 15.06 14.99 14.92 14.92 14.9 14.86 9/30/05 14.86 FUND SNAPSHOT ------------------------------------ Common Share Price $14.86 ------------------------------------ Common Share Net Asset Value $15.78 ------------------------------------ Premium/(Discount) to NAV -5.83% ------------------------------------ Market Yield 5.37% ------------------------------------ Taxable-Equivalent Yield1 8.01% ------------------------------------ Net Assets Applicable to Common Shares ($000) $131,420 ------------------------------------ Average Effective Maturity on Securities (Years) 16.26 ------------------------------------ Leverage-Adjusted Duration 8.50 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 4.64% 4.50% ------------------------------------ 5-Year 8.54% 8.24% ------------------------------------ 10-Year 7.41% 7.24% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 29.0% ------------------------------------ Healthcare 14.0% ------------------------------------ Education and Civic Organizations 13.9% ------------------------------------ Tax Obligation/General 10.3% ------------------------------------ U.S. Guaranteed 9.4% ------------------------------------ Transportation 7.6% ------------------------------------ Water and Sewer 6.9% ------------------------------------ Utilities 5.7% ------------------------------------ Other 3.2% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders a capital gains distribution in December 2004 of $0.1836 per share. 17 Nuveen Insured New York Dividend Advantage Municipal Fund NKO Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 84% AAA (uninsured) 6% AA (uninsured) 4% BBB (uninsured) 6% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0745 Nov 0.0745 Dec 0.0745 Jan 0.0745 Feb 0.0745 Mar 0.0715 Apr 0.0715 May 0.0715 Jun 0.068 Jul 0.068 Aug 0.068 Sep 0.068 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 14.27 14.3 14.3 14.39 14.37 14.65 14.46 14.52 14.7 14.89 14.85 14.86 14.83 14.86 14.85 14.84 14.87 14.95 15.05 14.85 14.94 14.96 15.02 15.04 15.04 14.91 14.7 14.84 14.85 14.82 15.11 14.89 14.99 14.99 14.95 14.85 14.9 14.71 14.69 14.69 14.35 14.31 14.24 14.14 14.26 14.34 14.38 14.45 14.4 14.57 14.24 14 14.18 13.98 13.95 13.87 13.84 13.86 13.85 13.87 13.85 13.85 13.86 13.85 14.06 14.12 14.1 14.09 14.18 14.32 14.38 14.45 14.4 14.34 14.38 14.39 14.55 14.49 14.49 14.7 14.7 14.84 14.89 15.07 15.09 15.05 15 15.14 15.08 15.07 15.08 15.08 14.98 15 14.75 14.8 14.85 14.65 14.84 14.85 14.89 14.99 15.05 15.12 15 14.87 14.85 14.71 14.8 14.65 14.61 14.57 14.65 14.6 14.56 14.58 14.49 14.39 14.07 13.75 13.79 13.7 13.75 13.96 14.1 14.24 14.29 14.29 14.21 14.25 14.2 14.1 14.17 14.09 14.17 14.12 14.33 14.22 14.6 14.45 14.56 14.59 14.55 14.7 14.7 14.7 14.7 14.7 14.67 14.67 14.75 14.66 14.67 14.75 14.69 14.716 14.76 14.82 15.07 14.84 14.9 14.8 14.84 14.84 14.72 14.85 14.83 14.84 14.97 15 15.04 14.98 14.97 14.97 14.84 14.74 14.72 14.67 14.77 14.78 14.91 15.06 15.01 15.1 15.04 15.14 14.96 14.89 15.02 14.97 14.93 14.96 14.85 14.93 14.86 14.85 15.2 15.27 15.21 15.2 15.02 14.97 15.12 15.04 15.15 15.18 15.14 15.15 15.46 15.42 15.42 15.5 15.49 15.48 15.42 15.45 15.3 15.09 15.11 14.93 14.98 15.41 15.45 15.31 15.3 15.3 15.22 15.25 15.29 15.22 15.17 15.3 15.4 15.35 15.38 15.47 15.43 15.49 15.46 15.37 15.35 15.32 15.46 15.32 15.3 15.14 15.21 15.12 15.01 14.94 14.93 14.72 14.6 14.62 9/30/05 14.68 FUND SNAPSHOT ------------------------------------ Common Share Price $14.68 ------------------------------------ Common Share Net Asset Value $15.67 ------------------------------------ Premium/(Discount) to NAV -6.32% ------------------------------------ Market Yield 5.56% ------------------------------------ Taxable-Equivalent Yield1 8.30% ------------------------------------ Net Assets Applicable to Common Shares ($000) $124,669 ------------------------------------ Average Effective Maturity on Securities (Years) 17.47 ------------------------------------ Leverage-Adjusted Duration 8.34 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 9.28% 6.23% ------------------------------------ Since Inception 5.97% 9.05% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 22.8% ------------------------------------ Healthcare 16.4% ------------------------------------ Utilities 11.5% ------------------------------------ Tax Obligation/General 10.9% ------------------------------------ Education and Civic Organizations 9.8% ------------------------------------ U.S. Guaranteed 9.1% ------------------------------------ Transportation 8.5% ------------------------------------ Housing/Multifamily 3.8% ------------------------------------ Other 7.2% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 2 The Fund also paid shareholders capital gains and net ordinary income distributions in December 2004 of $0.1158 per share. 18 Nuveen Insured New York Tax-Free Advantage Municipal Fund NRK Performance OVERVIEW As of September 30, 2005 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 85% AAA (uninsured) 2% AA (uninsured) 7% A (uninsured) 1% BBB (uninsured) 5% Bar Chart: 2004-2005 MONTHLY TAX-FREE DIVIDENDS PER SHARE Oct 0.0695 Nov 0.0695 Dec 0.0665 Jan 0.0665 Feb 0.0665 Mar 0.0635 Apr 0.0635 May 0.0635 Jun 0.0605 Jul 0.0605 Aug 0.0605 Sep 0.0585 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/1/04 13.7 13.7 13.66 13.45 13.57 13.7 13.9 13.87 13.87 13.9 13.91 13.83 13.78 13.85 13.77 13.78 13.85 13.95 13.9 14.05 14.08 14.11 14.3 14.45 14.45 14.35 14.3 14.19 14.48 14.4 14.26 14.26 14.38 14.36 14.5 14.44 14.37 14.25 14.18 14.17 14.07 13.88 13.57 13.46 13.58 13.65 13.48 13.61 13.55 13.78 13.5 13.37 13.52 13.34 13.32 13.25 13.18 13.16 13.14 13.06 13 13.04 13.08 13.12 13.17 13.31 13.29 13.31 13.42 13.45 13.49 13.47 13.45 13.43 13.59 13.55 13.56 13.77 13.79 13.65 13.65 13.68 13.65 13.76 13.69 13.71 13.7 13.77 13.87 13.9 13.86 13.84 13.8 14.06 13.97 14.17 13.9 13.74 13.64 13.64 13.58 13.76 13.785 13.87 13.95 14.17 14.22 14.04 13.96 13.72 13.64 13.52 13.6 13.6 13.89 14.05 14 13.91 13.8 13.78 13.62 13.33 13.31 13.54 13.41 13.4 13.4 13.31 13.3 13.27 13.16 13 13.12 13.16 13.1 13.25 13.26 13.33 13.34 13.18 13.27 13.23 13.19 13.21 13.24 13.37 13.37 13.41 13.48 13.36 13.42 13.42 13.36 13.39 13.38 13.4 13.44 13.51 13.77 13.72 13.72 13.77 13.82 13.78 13.66 13.78 13.61 13.8 13.85 13.98 14.05 14.12 14.17 13.97 13.88 13.87 13.95 13.83 13.72 13.85 13.86 13.9 13.98 13.97 13.98 13.97 13.94 13.95 13.95 13.98 14.08 14.08 13.97 13.97 13.97 14.01 14.15 14.15 14.2 14.15 14.39 14.15 14.33 14.61 14.7 14.9 14.8 14.55 14.5 14.4 14.4 14.17 14.17 14.15 14.02 13.96 13.65 13.53 13.72 13.64 13.81 13.81 13.84 13.89 13.93 13.9 13.89 13.88 13.98 14 14 14 14.06 14.03 14.13 14.16 14.11 14.12 14.19 14.14 14.13 14.09 14.13 14.13 14 13.82 13.8 13.69 13.73 13.77 14.15 14.07 13.99 13.99 9/30/05 14.02 FUND SNAPSHOT ------------------------------------ Common Share Price $14.02 ------------------------------------ Common Share Net Asset Value $15.00 ------------------------------------ Premium/(Discount) to NAV -6.53% ------------------------------------ Market Yield 5.01% ------------------------------------ Taxable-Equivalent Yield1 7.48% ------------------------------------ Net Assets Applicable to Common Shares ($000) $52,682 ------------------------------------ Average Effective Maturity on Securities (Years) 15.94 ------------------------------------ Leverage-Adjusted Duration 8.58 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 8.65% 7.05% ------------------------------------ Since Inception 3.36% 7.32% ------------------------------------ SECTORS (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.4% ------------------------------------ U.S. Guaranteed 15.7% ------------------------------------ Education and Civic Organizations 14.9% ------------------------------------ Healthcare 14.5% ------------------------------------ Utilities 10.8% ------------------------------------ Tax Obligation/General 5.6% ------------------------------------ Transportation 5.4% ------------------------------------ Other 5.7% ------------------------------------ 1 Taxable-equivalent yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 33%. When comparing this fund to investments that generate qualified dividend income, the taxable-equivalent yield is lower. 19 Shareholder MEETING REPORT The Special Shareholder Meeting was held at The Northern Trust Bank, 50 S. LaSalle St., Chicago, IL on July 26, 2005.
NQN NVN NUN ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred shares MuniPreferred shares MuniPreferred shares voting together voting together voting together as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 15,768,345 21,005,913 21,604,787 Against 136,472 287,469 216,483 Abstain 237,074 399,090 486,655 ------------------------------------------------------------------------------------------------------------------------------------ Total 16,141,891 21,692,472 22,307,925 ====================================================================================================================================
20
NNF NKO NRK ------------------------------------------------------------------------------------------------------------------------------------ APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENT WAS REACHED AS FOLLOWS: Common and Common and Common and MuniPreferred shares MuniPreferred shares MuniPreferred shares voting together voting together voting together as a class as a class as a class ------------------------------------------------------------------------------------------------------------------------------------ For 7,556,791 7,583,964 3,256,891 Against 75,740 63,883 14,387 Abstain 135,870 95,008 55,135 ------------------------------------------------------------------------------------------------------------------------------------ Total 7,768,401 7,742,855 3,326,413 ====================================================================================================================================
21 Report of INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE BOARDS OF DIRECTORS, TRUSTEES AND SHAREHOLDERS NUVEEN NEW YORK INVESTMENT QUALITY MUNICIPAL FUND, INC. NUVEEN NEW YORK SELECT QUALITY MUNICIPAL FUND, INC. NUVEEN NEW YORK QUALITY INCOME MUNICIPAL FUND, INC. NUVEEN INSURED NEW YORK PREMIUM INCOME MUNICIPAL FUND, INC. NUVEEN INSURED NEW YORK DIVIDEND ADVANTAGE MUNICIPAL FUND NUVEEN INSURED NEW YORK TAX-FREE ADVANTAGE MUNICIPAL FUND We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Nuveen New York Investment Quality Municipal Fund, Inc., Nuveen New York Select Quality Municipal Fund, Inc., Nuveen New York Quality Income Municipal Fund, Inc., Nuveen Insured New York Premium Income Municipal Fund, Inc., Nuveen Insured New York Dividend Advantage Municipal Fund and Nuveen Insured New York Tax-Free Advantage Municipal Fund as of September 30, 2005, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2005, by correspondence with the custodian and brokers or other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen New York Investment Quality Municipal Fund, Inc., Nuveen New York Select Quality Municipal Fund, Inc., Nuveen New York Quality Income Municipal Fund, Inc., Nuveen Insured New York Premium Income Municipal Fund, Inc., Nuveen Insured New York Dividend Advantage Municipal Fund and Nuveen Insured New York Tax-Free Advantage Municipal Fund at September 30, 2005, and the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended, and their financial highlights for the periods indicated therein, in conformity with U.S. generally accepted accounting principles. /s/Ernst & Young LLP Chicago, Illinois November 11, 2005 22 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 9.5% (6.4% OF TOTAL INVESTMENTS) $ 1,250 New York City Industrial Development Agency, New York, Civic No Opt. Call AAA $ 1,365,200 Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 3,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 3,303,330 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 6,500 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 6,819,475 Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 - MBIA Insured 3,500 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 3,698,205 Bonds, Culinary Institute of America, Series 1999, 5.000%, 7/01/22 - MBIA Insured 4,500 Dormitory Authority of the State of New York, State and 7/15 at 100.00 AAA 4,839,480 Local Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 1,150 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 Aaa 1,217,735 Canisius College, Series 2005, 5.000%, 7/01/21 - MBIA Insured 1,765 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,022,584 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured 1,200 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,328,916 Bonds, Cooper Union, Series 1999, 6.250%, 7/01/29 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,142,600 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/18 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 23.7% (15.9% OF TOTAL INVESTMENTS) 2,000 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA 2,101,380 Health System Revenue Bonds, Series 1999A, 5.125%, 2/15/14 - AMBAC Insured New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: 3,150 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 3,418,034 2,100 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 2,278,689 3,135 Dormitory Authority of the State of New York, Secured 2/08 at 101.50 AAA 3,280,056 Hospital Insured Revenue Bonds, Southside Hospital, Series 1998, 5.000%, 2/15/25 - MBIA Insured 7,080 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 7,158,376 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 3,280 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 AAA 3,456,070 North Shore Health System Obligated Group, Series 1998, 5.000%, 11/01/23 - MBIA Insured 2,535 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,665,147 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/28 - FGIC Insured 675 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 707,656 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 (WI, settling 10/20/05) - MBIA Insured 2,575 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,703,158 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 4,105 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,495,591 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 6,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 6,343,740 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds, Montefiore Medical Center, Series 1999: 825 5.250%, 8/01/19 - AMBAC Insured 8/09 at 101.00 AAA 859,048 4,000 5.500%, 8/01/38 - AMBAC Insured 8/09 at 101.00 AAA 4,310,680 23 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA $ 8,657,280 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 1,500 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 1,625,445 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 3,000 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 3,256,650 Bonds, New Island Hospital, Series 1999A, 5.750%, 7/01/19 - AMBAC Insured 8,525 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,158,749 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.9% (2.6% OF TOTAL INVESTMENTS) 5,740 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 6,063,966 Capital Fund Program Revenue Bonds, Series 2005A, 5.000%, 7/01/25 - FGIC Insured New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: 1,745 6.100%, 11/01/15 - FSA Insured 5/06 at 102.00 AAA 1,816,091 2,720 6.125%, 11/01/20 - FSA Insured 5/06 at 102.00 AAA 2,823,523 145 New York State Housing Finance Agency, FHA-Insured 2/06 at 101.00 AAA 146,663 Multifamily Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.0% OF TOTAL INVESTMENTS) 3,000 Castle Rest Residential Healthcare Facility, Syracuse, 8/07 at 102.00 AAA 3,038,280 New York, FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 (Optional put 8/01/07) 1,185 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 1,260,840 Mortgage Revenue Bonds, St. John's Meadows Project, Series 1997A, 5.750%, 8/01/37 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 16.9% (11.3% OF TOTAL INVESTMENTS) Erie County, New York, General Obligation Bonds, Series 2003A: 1,000 5.250%, 3/15/15 - FGIC Insured 3/13 at 100.00 Aaa 1,098,900 1,200 5.250%, 3/15/16 - FGIC Insured 3/13 at 100.00 Aaa 1,312,884 1,300 5.250%, 3/15/17 - FGIC Insured 3/13 at 100.00 Aaa 1,421,407 1,400 5.250%, 3/15/18 - FGIC Insured 3/13 at 100.00 Aaa 1,527,890 635 Erie County, New York, General Obligation Bonds, No Opt. Call Aaa 701,599 Series 2004B, 5.250%, 4/01/13 - MBIA Insured 2,000 Hempstead Town, New York, General Obligation Bonds, 1/11 at 101.00 Aaa 2,185,480 Series 2001A, 5.250%, 1/15/14 - MBIA Insured 700 Jericho Union Free School District, Nassau County, New York, 8/09 at 101.00 Aaa 764,372 General Obligation Bonds, Series 2000, 5.600%, 8/01/18 - MBIA Insured 1,000 Monroe County, New York, General Obligation Public 3/12 at 100.00 AAA 1,073,650 Improvement Bonds, Series 2002, 5.000%, 3/01/16 - FGIC Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 5,374,600 Series 2004I, 5.000%, 8/01/17 - MBIA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 1,400 5.000%, 11/01/13 - FSA Insured No Opt. Call AAA 1,525,636 2,600 5.000%, 11/01/14 - FSA Insured No Opt. Call AAA 2,842,346 New York City, New York, General Obligation Bonds, Fiscal Series 2005O: 3,000 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 3,242,190 3,000 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 3,227,220 1,200 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,292,172 Series 2005P, 5.000%, 8/01/18 - MBIA Insured 4,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 4,269,000 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured 1,165 Nassau County, North Hempstead, New York, General 3/08 at 101.00 Aaa 1,213,406 Obligation Refunding Bonds, Series 1998B, 4.750%, 3/01/18 - FGIC Insured 24 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) Oneida County, New York, General Obligation Public Improvement Bonds, Series 2000: $ 500 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA $ 543,395 500 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 543,395 Pavilion Central School District, Genesee County, New York, General Obligation Bonds, Series 2005: 1,650 5.000%, 6/15/16 - FSA Insured 6/15 at 100.00 AAA 1,797,510 1,815 5.000%, 6/15/18 - FSA Insured 6/15 at 100.00 AAA 1,957,459 1,145 Three Village Central School District, Brookhaven and No Opt. Call Aaa 1,260,874 Smithtown, Suffolk County, New York, General Obligation Bonds, Series 2005, 5.000%, 6/01/18 - FGIC Insured 1,620 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 1,768,538 New York, General Obligation Bonds, Series 2005, 5.000%, 10/01/16 - FSA Insured 6,110 Yonkers, New York, General Obligation Bonds, 8/15 at 100.00 AAA 6,605,093 Series 2005A, 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 43.7% (29.3% OF TOTAL INVESTMENTS) 1,275 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue 9/15 at 100.00 AAA 1,361,815 State Aid Secured Bonds, Series 2005A, 5.000%, 9/01/20 - MBIA Insured Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District, Series 2003: 1,000 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA 1,117,580 1,200 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,341,096 1,290 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,468,717 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 2,760 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 3,055,154 Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 4,500 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 5,277,915 1,250 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 1,383,675 2,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 2,209,480 2,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,118,420 4,095 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,257,531 6,000 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 6,491,640 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 2,115 5.000%, 11/15/18 - AMBAC Insured No Opt. Call AAA 2,271,764 1,305 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,351,641 1,305 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,347,112 4,820 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 5,330,342 and Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 - AMBAC Insured 2,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 2,171,800 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/20 - AMBAC Insured 3,910 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 4,139,165 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 1,660 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,807,209 Future Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 2,000 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,125,180 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 1,500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 1,576,155 Bonds, Wayne-Finger Lakes Board of Cooperative Education Services, Series 2004, 5.000%, 8/15/23 - FSA Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue 8/11 at 100.00 AAA 1,075,120 Bonds, Nassau County Board of Cooperative Educational Services, Series 2001A, 5.250%, 8/15/21 - FSA Insured 2,250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 2,374,898 Program Insured Revenue Bonds, St. Anne Institute, Issue 2, Series 1998E, 5.000%, 7/01/18 - AMBAC Insured 25 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 75 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA $ 77,059 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 - MBIA Insured Dormitory Authority of the State of New York, Department of Health Revenue Bonds, Series 2005A: 1,575 5.250%, 7/01/24 - CIFG Insured 7/15 at 100.00 AAA 1,705,457 500 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 526,185 Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D: 1,145 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 1,245,291 2,100 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 2,289,903 100 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 AAA 109,782 Revenue Bonds, Mental Health Services Facilities, Series 2001B, 5.500%, 8/15/19 - MBIA Insured 75 Dormitory Authority of the State of New York, Improvement No Opt. Call AAA 83,111 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.875%, 2/15/16 - FSA Insured 40 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 42,213 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 2,410 Dormitory Authority of the State of New York, Revenue 7/14 at 100.00 AAA 2,563,469 Bonds, Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 1,340 Dormitory Authority of the State of New York, Insured 7/09 at 101.00 AAA 1,466,014 Revenue Bonds, 853 Schools Program - Anderson School, Series 1999E, Issue 2, 5.750%, 7/01/19 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Insured 7/09 at 101.00 AAA 2,188,080 Revenue Bonds, Special Act School District Program, Series 1999, 5.750%, 7/01/19 - MBIA Insured 2,265 New York State Environmental Facilities Corporation, Special 4/07 at 100.00 AAA 2,326,902 Obligation Revenue Refunding Bonds, Riverbank State Park, Series 1996, 5.125%, 4/01/22 - AMBAC Insured 1,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 1,817,235 Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured 3,000 New York State Local Government Assistance Corporation, No Opt. Call AAA 3,328,530 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 4,600 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 4,992,886 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 7,350 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA 8,453,529 Trust Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,750 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,856,295 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/21 - MBIA Insured 1,550 New York State Thruway Authority, State Personal Income 9/14 at 100.00 AAA 1,639,978 Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC Insured 980 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 1,027,177 Certificates of Participation, High School Facility, Series 2005, 5.000%, 6/15/28 - FSA Insured 2,000 Puerto Rico Municipal Finance Agency, Series 1999A, 8/09 at 101.00 AAA 2,176,000 5.500%, 8/01/19 - FSA Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 1,500 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,594,695 2,200 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,337,192 1,600 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,696,064 5,370 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 5,675,821 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,578,525 1,435 Suffolk County Industrial Development Agency, New York, 10/10 at 102.00 Aaa 1,630,634 Revenue Bonds, Hampton Bays Public Library, Series 1999A, 6.000%, 10/01/19 - MBIA Insured New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 6,300 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 6,860,952 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,085,580 4,500 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,878,945 26 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 17.0% (11.4% OF TOTAL INVESTMENTS) $ 2,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA $ 2,224,240 Transportation Revenue Refunding Bonds, Series 2002A, 5.500%, 11/15/19 - AMBAC Insured 5,320 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 5,593,820 Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/35 - MBIA Insured 2,800 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,944,872 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured 3,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 3,884,741 Series 2005G, 5.000%, 1/01/32 - FSA Insured 2,300 Niagara Frontier Airport Authority, New York, Airport 4/09 at 101.00 AAA 2,454,652 Revenue Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 5,025 Port Authority of New York and New Jersey, Special Project 12/07 at 100.00 AAA 5,264,642 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/25 (Alternative Minimum Tax) - MBIA Insured Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: 2,080 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 2,251,662 2,625 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 2,783,156 Puerto Rico Ports Authority, Revenue Bonds, Series 1991D: 5,250 7.000%, 7/01/14 (Alternative Minimum Tax) - FGIC Insured 1/06 at 100.00 AAA 5,297,775 11,500 6.000%, 7/01/21 (Alternative Minimum Tax) - FGIC Insured 1/06 at 100.00 AAA 11,581,650 Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E: 780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 902,616 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,500,376 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 17.4% (11.7% OF TOTAL INVESTMENTS) 3,655 Buffalo Municipal Water Finance Authority, New York, 7/09 at 101.00 AAA 4,060,851 Water System Revenue Bonds, Series 1999, 6.000%, 7/01/29 (Pre-refunded to 7/01/09) - FSA Insured 2,210 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA 2,321,605 Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 - AMBAC Insured Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1998A: 5,090 5.000%, 4/01/23 (Pre-refunded to 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 5,614,372 7,600 4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 8,212,560 1,000 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 1,099,980 Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 5,030 New York City Trust for Cultural Resources, New York, 7/19 at 100.00 AAA 5,457,852 Revenue Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded to 7/01/19) - AMBAC Insured 1,010 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 1,221,433 Facilities Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 - BIGI Insured 80 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA 82,366 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 (Pre-refunded to 2/15/06) - MBIA Insured 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 74,003 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded to 2/15/07) - MBIA Insured 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,094,340 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded to 3/15/13) - FGIC Insured 5,915 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,542,345 State University Educational Facilities, Series 2002A, 5.125%, 5/15/20 (Pre-refunded to 5/15/12) - FGIC Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B: 1,290 5.375%, 4/01/17 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 1,433,938 1,300 5.375%, 4/01/18 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 1,445,054 2,000 5.000%, 4/01/20 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,179,800 3,500 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 3,865,260 Fund Bonds, Series 2002A, 5.250%, 4/01/17 (Pre-refunded to 4/01/12) - FSA Insured 27 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** (continued) $ 2,225 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA $ 2,471,463 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/22 (Pre-refunded to 4/01/13) - MBIA Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,096,010 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20 (Pre-refunded to 4/01/14) - MBIA Insured 650 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 731,192 Revenue Bonds, Series 2000B, 5.875%, 7/01/35 (Pre-refunded to 7/01/10) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 10.0% (6.7% OF TOTAL INVESTMENTS) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 6,000 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 6,310,260 3,000 5.750%, 12/01/24 - FSA Insured 6/08 at 101.00 AAA 3,216,060 1,000 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 1,054,870 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 2,500 5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA 2,595,150 2,500 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,683,625 2,620 Long Island Power Authority, New York, Electric System 9/13 at 100.00 AAA 2,829,469 General Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured 2,275 New York State Energy Research and Development Authority, 11/05 at 100.50 AAA 2,320,068 Adjustable Rate Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989B, 6.750%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured 2,250 New York State Energy Research and Development Authority, 1/06 at 101.00 AAA 2,276,573 Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989C, 5.600%, 6/01/25 (Alternative Minimum Tax) - MBIA Insured 2,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 2,167,740 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured 2,565 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 2,707,691 Series 2005RR, 5.000%, 7/01/35 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.5% (3.7% OF TOTAL INVESTMENTS) 5,030 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 5,321,086 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 1,045,530 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,126,340 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 4,750 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 5,124,348 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,859,612 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 390,525 Total Long-Term Investments (cost $399,126,154) - 149.1% 419,145,614 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 6,057,109 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.2)% (144,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 281,202,723 ====================================================================================================================
All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 28 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.2% (8.1% OF TOTAL INVESTMENTS) Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Project, Series 2000A: $ 1,315 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA $ 1,460,373 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 680,077 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA 555,275 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Lakeside Cottage Project, Series 2000B, 5.625%, 8/01/20 - AMBAC Insured 1,000 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 1,053,560 Revenue Refunding Bonds, Hofstra University, Series 1998, 5.000%, 7/01/23 - MBIA Insured 1,365 New York City Industrial Development Agency, New York, No Opt. Call AAA 1,490,798 Civic Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 7,250 New York City Industrial Development Agency, New York, 1/09 at 101.00 AAA 7,470,763 Civic Facility Revenue Bonds, Horace Mann School, Series 1998, 5.000%, 7/01/28 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,202,220 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 1,870 Dormitory Authority of the State of New York, Insured Revenue 1/06 at 100.00 AAA 1,876,620 Bonds, Fordham University, Series 1990, 7.200%, 7/01/15 - AMBAC Insured 4,500 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,721,175 Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,291,880 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, University of Rochester, Series 2000A: 1,990 0.000%, 7/01/17 - MBIA Insured 7/10 at 101.00 AAA 1,686,923 2,235 0.000%, 7/01/18 - MBIA Insured 7/10 at 101.00 AAA 1,890,184 2,495 0.000%, 7/01/19 - MBIA Insured 7/10 at 101.00 AAA 2,105,156 1,870 0.000%, 7/01/21 - MBIA Insured 7/10 at 101.00 AAA 1,574,147 Dormitory Authority of the State of New York, Revenue Bonds, Canisius College, Series 2000: 1,000 5.100%, 7/01/20 - MBIA Insured 7/11 at 101.00 AAA 1,071,760 2,875 5.250%, 7/01/30 - MBIA Insured 7/11 at 101.00 AAA 3,077,084 Dormitory Authority of the State of New York, Insured Revenue Bonds, New York University, Series 2001-2: 1,350 5.500%, 7/01/18 - AMBAC Insured 7/11 at 100.00 AAA 1,483,974 800 5.500%, 7/01/20 - AMBAC Insured 7/11 at 100.00 AAA 876,992 600 5.500%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 657,744 2,500 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 2,939,525 Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 2,125 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,271,838 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 1,710 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 1,832,590 Bonds, Fordham University, Series 2002, 5.000%, 7/01/18 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 19.0% (12.7% OF TOTAL INVESTMENTS) New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: 2,800 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 3,038,252 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,325,801 29 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) Dormitory Authority of the State of New York, Revenue Bonds, St. Vincent's Hospital and Medical Center, Series 1991: $ 1,490 7.375%, 8/01/11 2/06 at 100.00 AAA $ 1,517,818 4,150 7.400%, 8/01/30 2/06 at 100.00 AAA 4,216,151 5,995 Dormitory Authority of the State of New York, FHA-Insured 2/06 at 104.00 AAA 6,244,512 Mortgage Hospital Revenue Bonds, Millard Fillmore Hospitals, Series 1997, 5.375%, 2/01/32 - AMBAC Insured 6,500 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 6,907,290 Mortgage Revenue Refunding Bonds, United Health Services, Series 1997, 5.375%, 8/01/27 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 3,033,210 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 740 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 775,801 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 (WI, settling 10/20/05) - MBIA Insured 2,655 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,787,139 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 4,110 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,501,067 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured Dormitory Authority of the State of New York, Revenue Bonds, Memorial Sloan-Kettering Cancer Center, Series 2003-1: 2,500 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 2,643,225 3,210 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,386,036 5,730 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 6,175,049 Mortgage Hospital Revenue Bonds, Montefiore Medical Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured 6,430 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 6,962,983 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA Insured 12,020 Dormitory Authority of the State of New York, Revenue 7/11 at 101.00 AAA 12,913,567 Bonds, Winthrop South Nassau University Health System Obligated Group, Series 2001A, 5.250%, 7/01/26 - AMBAC Insured 2,025 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 2,142,653 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.9% (3.3% OF TOTAL INVESTMENTS) 5,445 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 5,752,316 Capital Fund Program Revenue Bonds, Series 2005A, 5.000%, 7/01/25 - FGIC Insured 7,505 New York City Housing Development Corporation, New York, 10/05 at 105.00 AAA 7,893,461 Multifamily Housing Revenue Bonds, Pass-Through Certificates, Series 1991C, 6.500%, 2/20/19 - AMBAC Insured New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: 870 6.100%, 11/01/15 - FSA Insured 5/06 at 102.00 AAA 905,444 3,625 6.125%, 11/01/20 - FSA Insured 5/06 at 102.00 AAA 3,762,968 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.3% (1.5% OF TOTAL INVESTMENTS) 2,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 2,201,480 Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 - MBIA Insured 6,000 Dormitory Authority of the State of New York, FHA-Insured 8/11 at 101.00 AAA 6,279,840 Nursing Home Mortgage Revenue Bonds, Norwegian Christian Home and Health Center, Series 2001, 5.200%, 8/01/36 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 20.6% (13.7% OF TOTAL INVESTMENTS) Erie County, New York, General Obligation Bonds, Series 1999A: 700 5.500%, 10/01/17 - FGIC Insured 10/09 at 101.00 AAA 764,134 700 5.250%, 10/01/19 - FGIC Insured 10/09 at 101.00 AAA 756,798 Erie County, New York, General Obligation Bonds, Series 2003A: 1,410 5.250%, 3/15/15 - FGIC Insured 3/13 at 100.00 Aaa 1,549,449 1,500 5.250%, 3/15/16 - FGIC Insured 3/13 at 100.00 Aaa 1,641,105 1,510 5.250%, 3/15/17 - FGIC Insured 3/13 at 100.00 Aaa 1,651,019 1,635 5.250%, 3/15/18 - FGIC Insured 3/13 at 100.00 Aaa 1,784,357 30 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 745 Erie County, New York, General Obligation Bonds, No Opt. Call Aaa $ 823,136 Series 2004B, 5.250%, 4/01/13 - MBIA Insured 45 New York City, New York, General Obligation Bonds, Fiscal 2/06 at 100.00 AAA 45,125 Series 1992C, 6.250%, 8/01/10 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 1998H: 4,150 5.125%, 8/01/25 - MBIA Insured 8/08 at 101.00 AAA 4,365,676 5,440 5.375%, 8/01/27 - MBIA Insured 8/08 at 101.00 AAA 5,769,718 5,000 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 5,157,600 Series 1999I, 5.000%, 4/15/29 - MBIA Insured 3,000 New York City, New York, General Obligation Bonds, Fiscal 8/10 at 101.00 AAA 3,207,780 Series 2001D, 5.000%, 8/01/16 - FGIC Insured 6,250 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 6,718,250 Series 2004I, 5.000%, 8/01/17 - MBIA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 1,660 5.000%, 11/01/13 - FSA Insured No Opt. Call AAA 1,808,968 3,070 5.000%, 11/01/14 - FSA Insured No Opt. Call AAA 3,356,155 New York City, New York, General Obligation Bonds, Fiscal Series 2005O: 3,250 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 3,512,372 3,250 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 3,496,155 1,550 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,669,056 Series 2005P, 5.000%, 8/01/18 - MBIA Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 5,336,250 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured 2,330 Nassau County, North Hempstead, New York, General 3/08 at 101.00 Aaa 2,426,812 Obligation Refunding Bonds, Series 1998B, 4.750%, 3/01/18 - FGIC Insured Oneida County, New York, General Obligation Public Improvement Bonds, Series 2000: 100 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 108,679 100 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 108,679 Putnam Valley Central School District, Putnam and Westchester Counties, New York, General Obligation Bonds, Series 1999: 525 5.875%, 6/15/17 - FSA Insured 6/10 at 100.00 Aaa 580,220 525 5.875%, 6/15/18 - FSA Insured 6/10 at 100.00 Aaa 580,220 525 5.875%, 6/15/20 - FSA Insured 6/10 at 100.00 Aaa 581,327 525 5.875%, 6/15/21 - FSA Insured 6/10 at 100.00 Aaa 581,327 525 5.875%, 6/15/22 - FSA Insured 6/10 at 100.00 Aaa 581,327 525 5.875%, 6/15/23 - FSA Insured 6/10 at 100.00 Aaa 581,327 525 5.875%, 6/15/24 - FSA Insured 6/10 at 100.00 Aaa 581,327 525 5.875%, 6/15/26 - FSA Insured 6/10 at 100.00 Aaa 578,324 525 5.875%, 6/15/28 - FSA Insured 6/10 at 100.00 Aaa 578,324 Rensselaer County, New York, General Obligation Bonds, Series 1991: 960 6.700%, 2/15/16 - AMBAC Insured No Opt. Call AAA 1,187,040 960 6.700%, 2/15/17 - AMBAC Insured No Opt. Call AAA 1,196,467 960 6.700%, 2/15/18 - AMBAC Insured No Opt. Call AAA 1,208,314 960 6.700%, 2/15/19 - AMBAC Insured No Opt. Call AAA 1,217,808 960 6.700%, 2/15/20 - AMBAC Insured No Opt. Call AAA 1,227,446 747 6.700%, 2/15/21 - AMBAC Insured No Opt. Call AAA 961,568 Rochester, New York, General Obligation Bonds, Series 1999: 735 5.250%, 10/01/20 - MBIA Insured No Opt. Call AAA 832,108 735 5.250%, 10/01/21 - MBIA Insured No Opt. Call AAA 833,012 730 5.250%, 10/01/22 - MBIA Insured No Opt. Call AAA 828,689 730 5.250%, 10/01/23 - MBIA Insured No Opt. Call AAA 828,630 730 5.250%, 10/01/24 - MBIA Insured No Opt. Call AAA 829,141 730 5.250%, 10/01/25 - MBIA Insured No Opt. Call AAA 831,426 725 5.250%, 10/01/26 - MBIA Insured No Opt. Call AAA 826,703 2,190 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,347,198 5.000%, 8/01/19 - MBIA Insured 31 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 40.6% (27.1% OF TOTAL INVESTMENTS) Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District, Series 2003: $ 1,230 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA $ 1,374,623 1,225 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,369,036 1,700 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,935,518 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 5,091,924 Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 2,000 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 2,345,740 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,320,820 5,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 5,523,700 2,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,118,420 4,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,158,760 7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 8,114,550 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 4,000 5.000%, 11/15/18 - AMBAC Insured No Opt. Call AAA 4,296,480 1,560 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,615,754 1,560 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,610,341 50 New York City Transitional Finance Authority, New York, 8/07 at 101.00 AAA 51,771 Future Tax Secured Bonds, Fiscal Series 1998A, 5.000%, 8/15/27 - MBIA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2002B: 2,820 5.250%, 5/01/16 - MBIA Insured 11/11 at 101.00 AAA 3,092,609 1,000 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 1,096,620 7,500 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 8,144,250 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 3,500 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,705,135 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 3,060 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,331,361 Future Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 2,000 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 2,125,180 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D: 1,210 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 1,315,984 2,240 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 2,442,563 35 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 36,936 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,839,885 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured Dormitory Authority of the State of New York, Improvement Revenue Bonds, Mental Health Services Facilities, Series 1996B: 80 5.375%, 2/15/26 - FSA Insured 2/06 at 102.00 AAA 82,196 45 5.375%, 2/15/26 - MBIA Insured 2/06 at 102.00 AAA 46,235 7,145 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 7,816,916 Bonds, Special Act School District Program, Series 1999, 5.750%, 7/01/19 - MBIA Insured 2,000 New York State Environmental Facilities Corporation, Special 4/07 at 100.00 AAA 2,054,660 Obligation Revenue Refunding Bonds, Riverbank State Park, Series 1996, 5.125%, 4/01/22 - AMBAC Insured 7,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 8,047,755 Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured 32 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA $ 4,160,662 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured New York State Municipal Bond Bank Agency, Buffalo, Special Program Revenue Bonds, Series 2001A: 875 5.125%, 5/15/19 - AMBAC Insured 5/11 at 100.00 AAA 941,675 920 5.125%, 5/15/20 - AMBAC Insured 5/11 at 100.00 AAA 982,137 965 5.250%, 5/15/21 - AMBAC Insured 5/11 at 100.00 AAA 1,036,738 1,015 5.250%, 5/15/22 - AMBAC Insured 5/11 at 100.00 AAA 1,087,268 7,925 Dormitory Authority of the State of New York, Revenue 10/12 at 100.00 AAA 8,601,874 Bonds, School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 8,455 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 9,724,434 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,059,270 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/22 - MBIA Insured 3,700 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 3,957,335 Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/20 - FSA Insured 4,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 4,627,080 Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 - FSA Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 1,500 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,594,695 3,640 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,866,990 1,960 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,077,678 3,170 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,350,531 New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 9,400 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 10,236,976 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,085,580 2,500 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 2,710,525 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.0% (8.0% OF TOTAL INVESTMENTS) Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002A: 6,000 5.500%, 11/15/18 - AMBAC Insured 11/12 at 100.00 AAA 6,672,720 2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,145,640 Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002E: 1,335 5.500%, 11/15/21 - MBIA Insured 11/12 at 100.00 AAA 1,481,596 4,575 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 4,856,271 5,980 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 6,287,791 Revenue Bonds, Series 2005B, 5.000%, 11/15/35 - MBIA Insured 2,100 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,208,654 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured 4,600 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 4,829,678 Series 2005G, 5.000%, 1/01/32 - FSA Insured 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,668,100 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 7,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,385,490 Revenue Bonds, One Hundred Twentieth Series 2000, 5.750%, 10/15/26 (Alternative Minimum Tax) - MBIA Insured Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E: 1,570 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 1,816,804 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 4,131,056 33 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 17.1% (11.4% OF TOTAL INVESTMENTS) Longwood Central School District, Suffolk County, New York, Series 2000: $ 1,000 5.750%, 6/15/19 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa $ 1,134,710 1,000 5.750%, 6/15/20 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,134,710 4,695 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 5,169,618 Facilities Revenue Bonds, Series 1998A, 5.250%, 7/01/28 (Pre-refunded to 7/01/11) - FGIC Insured 11,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 11,886,600 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A: 4,000 5.000%, 4/01/17 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,399,920 3,250 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA 3,574,935 560 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 600,583 Series 1998H, 5.375%, 8/01/27 (Pre-refunded to 8/01/08) - MBIA Insured 10 New York City Transitional Finance Authority, New York, 8/07 at 101.00 AAA 10,465 Future Tax Secured Bonds, Fiscal Series 1998A, 5.000%, 8/15/27 (Pre-refunded to 8/15/07) - MBIA Insured 1,075 New York City Trust for Cultural Resources, New York, Revenue 7/19 at 100.00 AAA 1,166,440 Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded to 7/01/19) - AMBAC Insured 2,095 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 2,333,998 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/18 (Pre-refunded to 7/01/11) - FGIC Insured 505 Dormitory Authority of the State of New York, Suffolk County, 10/05 at 110.29 Baa1*** 705,975 Lease Revenue Bonds, Judicial Facilities, Series 1991A, 9.500%, 4/15/14 50 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA 51,478 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 (Pre-refunded to 2/15/06) - MBIA Insured 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 74,003 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded to 2/15/07) - MBIA Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,641,510 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded to 3/15/13) - FGIC Insured 5,795 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,367,082 State University Educational Facilities, Series 2002A, 5.000%, 5/15/18 (Pre-refunded to 5/15/12) - FGIC Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B: 1,835 5.375%, 4/01/17 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,039,749 2,100 5.375%, 4/01/18 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 2,334,318 5,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 5,521,800 Fund Bonds, Series 2002A, 5.250%, 4/01/19 (Pre-refunded to 4/01/12) - FSA Insured 2,375 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 2,638,079 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/22 (Pre-refunded to 4/01/13) - MBIA Insured 2,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 2,192,020 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20 (Pre-refunded to 4/01/14) - MBIA Insured New York State Urban Development Corporation, Service Contract Revenue Bonds, Correctional Facilities, Series 2000C: 6,000 5.125%, 1/01/23 (Pre-refunded to 1/01/11) - FSA Insured 1/11 at 100.00 AAA 6,534,420 2,000 5.250%, 1/01/30 (Pre-refunded to 1/01/11) - FSA Insured 1/11 at 100.00 AAA 2,190,100 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 14.0% (9.4% OF TOTAL INVESTMENTS) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 8,300 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 8,729,193 4,000 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 4,219,480 34 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A: $ 4,000 0.000%, 6/01/24 - FSA Insured No Opt. Call AAA $ 1,747,240 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,655,440 15,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 5,883,000 3,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 1,115,010 4,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 1,583,775 3,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 1,001,340 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 3,000 5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA 3,114,180 3,125 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 3,354,531 10,025 New York State Energy Research and Development Authority, 11/05 at 100.50 AAA 10,223,595 Adjustable Rate Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989B, 6.750%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured 6,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 6,503,220 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 (Alternative Minimum Tax) - MBIA Insured 2,875 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 3,034,936 Series 2005RR, 5.000%, 7/01/35 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 7.1% (4.8% OF TOTAL INVESTMENTS) 5,795 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,130,357 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 5,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 5,315,850 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 10,500 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA 11,327,505 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Fiscal Series 2000B: 1,245 6.100%, 6/15/31 - MBIA Insured 6/10 at 101.00 AAA 1,394,711 1,225 6.000%, 6/15/33 - MBIA Insured 6/10 at 101.00 AAA 1,369,305 2,230 Upper Mohawk Valley Regional Water Finance Authority, No Opt. Call Aaa 1,030,419 New York, Water System Revenue Bonds, Series 2000, 0.000%, 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 541,187 Total Long-Term Investments (cost $522,871,276) - 149.8% 557,199,837 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 7,734,952 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.9)% (193,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 371,934,789 ====================================================================================================================
All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 35 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 22.7% (15.1% OF TOTAL INVESTMENTS) Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Project, Series 2000A: $ 1,065 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA $ 1,182,736 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 680,077 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA 555,275 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Lakeside Cottage Project, Series 2000B, 5.625%, 8/01/20 - AMBAC Insured 6,415 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 6,758,587 Revenue Refunding Bonds, Hofstra University, Series 1998, 5.000%, 7/01/23 - MBIA Insured 7,250 New York City Trust for Cultural Resources, New York, Revenue 1/07 at 102.00 AAA 7,603,148 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 14,500 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 15,139,450 Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/27 - MBIA Insured 1,385 New York City Industrial Development Agency, New York, No Opt. Call AAA 1,512,642 Civic Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 4,775 New York City Industrial Development Agency, New York, 6/07 at 102.00 AAA 5,002,624 Civic Facility Revenue Bonds, Trinity Episcopal School, Series 1997, 5.250%, 6/15/27 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,202,220 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 1,915 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,229,347 Resolution Consolidated Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/18 - FSA Insured 6,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 6,841,620 Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/13 - MBIA Insured 4,625 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 4,815,550 Bonds, Barnard College, Series 1996, 5.250%, 7/01/26 - AMBAC Insured 8,500 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AAA 8,930,355 Bonds, Ithaca College, Series 1997, 5.250%, 7/01/26 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 2,101,300 Resolution Consolidated Revenue Bonds, City University System, Series 1998-1, 5.000%, 7/01/26 - FGIC Insured 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,291,880 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, University of Rochester, Series 2000A: 1,990 0.000%, 7/01/17 - MBIA Insured 7/10 at 101.00 AAA 1,686,923 2,230 0.000%, 7/01/18 - MBIA Insured 7/10 at 101.00 AAA 1,885,956 2,495 0.000%, 7/01/19 - MBIA Insured 7/10 at 101.00 AAA 2,105,156 1,870 0.000%, 7/01/21 - MBIA Insured 7/10 at 101.00 AAA 1,574,147 4,000 Dormitory Authority of the State of New York, State University No Opt. Call AAA 4,636,600 Educational Facilities Revenue Bonds, 1989 Resolution, Series 2000C, 5.750%, 5/15/16 - FSA Insured 1,000 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 1,175,810 Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 2,750 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,854,803 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/26 - AMBAC Insured 1,650 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 1,764,329 Bonds, Fordham University, Series 2002, 5.000%, 7/01/19 - FGIC Insured 36 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 15.0% (10.0% OF TOTAL INVESTMENTS) New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: $ 2,800 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA $ 3,038,252 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,325,801 3,995 Dormitory Authority of the State of New York, FHA-Insured 2/06 at 104.00 AAA 4,161,272 Mortgage Hospital Revenue Bonds, Millard Fillmore Hospitals, Series 1997, 5.375%, 2/01/32 - AMBAC Insured 7,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 7,077,490 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 750 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 786,285 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 (WI, settling 10/20/05) - MBIA Insured 2,700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,834,379 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 4,105 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,495,591 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured Dormitory Authority of the State of New York, Revenue Bonds, Memorial Sloan-Kettering Cancer Center, Series 2003-1: 2,500 5.000%, 7/01/21 - MBIA Insured 7/13 at 100.00 AAA 2,643,225 3,300 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,480,972 9,000 Dormitory Authority of the State of New York, Hospital 7/09 at 101.00 AAA 9,746,010 Revenue Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA Insured 9,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,522,900 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured 3,350 New York State Medical Care Facilities Finance Agency, 2/06 at 101.00 AAA 3,434,152 FHA-Insured Mortgage Revenue Bonds, Montefiore Medical Center, Series 1995A, 5.750%, 2/15/25 - AMBAC Insured 1,915 New York State Medical Care Facilities Finance Agency, 11/05 at 102.00 AAA 1,960,864 Secured Mortgage Revenue Bonds, Brookdale Family Care Centers Inc., Series 1995A, 6.375%, 11/15/19 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.8% (2.4% OF TOTAL INVESTMENTS) 5,515 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 5,826,267 Capital Fund Program Revenue Bonds, Series 2005A, 5.000%, 7/01/25 - FGIC Insured 6,241 New York City Housing Development Corporation, New York, 10/05 at 105.00 AAA 6,564,729 Multifamily Housing Revenue Bonds, Pass-Through Certificates, Series 1991C, 6.500%, 2/20/19 - AMBAC Insured 1,540 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 1,598,612 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured 235 New York State Housing Finance Agency, FHA-Insured 2/06 at 101.00 AAA 237,695 Multifamily Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.2% (0.8% OF TOTAL INVESTMENTS) 4,450 Castle Rest Residential Healthcare Facility, Syracuse, 8/07 at 102.00 AAA 4,506,782 New York, FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 (Optional put 8/01/07) ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.0% (11.3% OF TOTAL INVESTMENTS) Erie County, New York, General Obligation Bonds, Series 2003A: 1,500 5.250%, 3/15/15 - FGIC Insured 3/13 at 100.00 Aaa 1,648,350 1,500 5.250%, 3/15/16 - FGIC Insured 3/13 at 100.00 Aaa 1,641,105 1,600 5.250%, 3/15/17 - FGIC Insured 3/13 at 100.00 Aaa 1,749,424 1,700 5.250%, 3/15/18 - FGIC Insured 3/13 at 100.00 Aaa 1,855,295 805 Erie County, New York, General Obligation Bonds, No Opt. Call Aaa 889,428 Series 2004B, 5.250%, 4/01/13 - MBIA Insured Monroe County, New York, General Obligation Public Improvement Bonds, Series 2002: 2,250 5.000%, 3/01/15 - FGIC Insured 3/12 at 100.00 AAA 2,421,045 1,000 5.000%, 3/01/17 - FGIC Insured 3/12 at 100.00 AAA 1,071,520 New York City, New York, General Obligation Bonds, Fiscal Series 2001D: 2,095 5.250%, 8/01/15 - FSA Insured 8/10 at 101.00 AAA 2,273,934 5,360 5.250%, 8/01/15 - MBIA Insured 8/10 at 101.00 AAA 5,817,798 5,000 5.000%, 8/01/16 - FGIC Insured 8/10 at 101.00 AAA 5,346,300 37 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 5,000 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA $ 5,331,950 Series 2002C, 5.125%, 3/15/25 - FSA Insured 6,250 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 6,718,250 Series 2004I, 5.000%, 8/01/17 - MBIA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 1,690 5.000%, 11/01/13 - FSA Insured No Opt. Call AAA 1,841,661 3,120 5.000%, 11/01/14 - FSA Insured No Opt. Call AAA 3,410,815 New York City, New York, General Obligation Bonds, Fiscal Series 2005O: 3,350 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 3,620,445 3,350 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 3,603,729 1,600 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 1,722,896 Series 2005P, 5.000%, 8/01/18 - MBIA Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 5,336,250 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured Peru Central School District, Clinton County, New York, General Obligation Refunding Bonds, Series 2002B: 1,845 4.000%, 6/15/18 - FGIC Insured 6/12 at 100.00 AAA 1,824,078 1,915 4.000%, 6/15/19 - FGIC Insured 6/12 at 100.00 AAA 1,884,111 Putnam Valley Central School District, Putnam and Westchester Counties, New York, General Obligation Bonds, Series 1999: 525 5.875%, 6/15/19 - FSA Insured 6/10 at 100.00 Aaa 580,220 525 5.875%, 6/15/25 - FSA Insured 6/10 at 100.00 Aaa 578,324 525 5.875%, 6/15/27 - FSA Insured 6/10 at 100.00 Aaa 578,324 2,305 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,460,818 5.000%, 8/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 41.2% (27.4% OF TOTAL INVESTMENTS) Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District, Series 2003: 1,200 5.750%, 5/01/20 - FSA Insured 5/12 at 100.00 AAA 1,341,096 1,000 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,117,580 1,710 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,946,903 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 5,091,924 Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 2,000 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 2,345,740 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,320,820 6,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 6,628,440 3,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 3,177,630 8,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 8,317,520 7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 8,114,550 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 1,555 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,610,576 1,555 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,605,180 75 New York City Transitional Finance Authority, New York, Future 8/07 at 101.00 AAA 77,657 Tax Secured Bonds, Fiscal Series 1998A, 5.000%, 8/15/27 - MBIA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2002B: 10,170 5.250%, 5/01/12 - MBIA Insured 11/11 at 101.00 AAA 11,165,846 2,420 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 2,653,820 1,000 5.000%, 5/01/30 - MBIA Insured 11/11 at 101.00 AAA 1,041,400 6,000 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 6,515,400 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 38 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 3,500 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA $ 3,705,135 Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 1,995 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 2,171,917 Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 1,845 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 1,960,479 Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured Dormitory Authority of the State of New York, Lease Revenue Bonds, Madison-Oneida Board of Cooperative Educational Services, Series 2002: 1,045 5.250%, 8/15/20 - FSA Insured 8/12 at 100.00 AAA 1,133,240 1,100 5.250%, 8/15/21 - FSA Insured 8/12 at 100.00 AAA 1,192,884 1,135 5.250%, 8/15/22 - FSA Insured 8/12 at 100.00 AAA 1,230,839 3,340 Dormitory Authority of the State of New York, 853 Schools 7/09 at 101.00 AAA 3,621,161 Program Insured Revenue Bonds, Harmony Heights School, Issue 1, Series 1999C, 5.500%, 7/01/18 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D: 1,230 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 1,337,736 2,275 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 2,480,728 40 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA 41,072 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.125%, 8/15/21 - MBIA Insured 370 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 393,839 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 - FSA Insured 40 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 42,213 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,839,885 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,160,662 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 7,900 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,574,739 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 8,455 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 9,724,434 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,059,270 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/22 - MBIA Insured 3,765 New York State Thruway Authority, State Personal Income Tax 3/15 at 100.00 AAA 4,026,856 Revenue Bonds, Series 2005A, 5.000%, 3/15/20 - FSA Insured 3,190 New York State Urban Development Corporation, Revenue No Opt. Call AAA 3,623,170 Refunding Bonds, State Facilities, Series 1995, 5.600%, 4/01/15 - MBIA Insured Puerto Rico Highway and Transportation Authority, Highway Revenue Refunding Bonds, Series 2002E: 3,000 5.500%, 7/01/14 - FSA Insured No Opt. Call AAA 3,411,240 6,000 5.500%, 7/01/18 - FSA Insured No Opt. Call AAA 6,940,620 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 1,500 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 1,594,695 2,720 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,889,619 1,990 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,109,480 3,470 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,667,616 New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 12,400 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 13,504,096 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,084,210 39 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.8% (8.5% OF TOTAL INVESTMENTS) Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002A: $ 3,815 5.500%, 11/15/19 - AMBAC Insured 11/12 at 100.00 AAA $ 4,242,738 4,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 4,291,280 Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002E: 2,665 5.500%, 11/15/21 - MBIA Insured 11/12 at 100.00 AAA 2,957,644 8,500 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 9,022,580 6,075 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 6,387,680 Revenue Bonds, Series 2005B, 5.000%, 11/15/35 - MBIA Insured 2,125 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,234,948 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured 4,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 4,934,671 Series 2005G, 5.000%, 1/01/32 - FSA Insured 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,668,100 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 5,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 5,371,050 Purpose Revenue Bonds, Series 2002A, 5.250%, 1/01/20 - FGIC Insured Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E: 1,570 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 1,816,804 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 20.2% (13.4% OF TOTAL INVESTMENTS) Longwood Central School District, Suffolk County, New York, Series 2000: 910 5.750%, 6/15/19 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,032,586 1,410 5.750%, 6/15/20 (Pre-refunded to 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,599,941 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds, Series 1998B: 10,000 4.875%, 7/01/18 - FGIC Insured 7/08 at 101.00 AAA 10,375,200 4,500 4.750%, 7/01/26 - FGIC Insured 7/08 at 101.00 AAA 4,561,785 3,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 3,241,800 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1999A: 4,000 5.000%, 4/01/17 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,399,920 1,000 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 10/14 at 100.00 AAA 1,099,980 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,231,880 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.750%, 6/15/27 (Pre-refunded to 6/15/11) - MBIA Insured 15 New York City Transitional Finance Authority, New York, 8/07 at 101.00 AAA 15,697 Future Tax Secured Bonds, Fiscal Series 1998A, 5.000%, 8/15/27 (Pre-refunded to 8/15/07) - MBIA Insured 1,410 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 1,570,853 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/20 (Pre-refunded to 7/01/11) - FGIC Insured 2,945 Dormitory Authority of the State of New York, Judicial No Opt. Call AAA 3,561,506 Facilities Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 40 Dormitory Authority of the State of New York, Improvement 2/06 at 102.00 AAA 41,146 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.125%, 8/15/21 (Pre-refunded to 2/15/06) - MBIA Insured 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 74,003 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded to 2/15/07) - MBIA Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,641,510 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded to 3/15/13) - FGIC Insured 8,100 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 8,959,086 State University Educational Facilities, Series 2002A, 5.125%, 5/15/19 (Pre-refunded to 5/15/12) - FGIC Insured 40 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** (continued) New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B: $ 3,125 5.375%, 4/01/17 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA $ 3,473,688 3,000 5.375%, 4/01/18 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 3,334,740 4,930 New York State Thruway Authority, Highway and Bridge Trust 10/11 at 100.00 AAA 5,442,572 Fund Bonds, Series 2001B, 5.250%, 4/01/17 (Pre-refunded to 10/01/11) - MBIA Insured 6,965 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 7,691,867 Fund Bonds, Series 2002A, 5.250%, 4/01/20 (Pre-refunded to 4/01/12) - FSA Insured 2,400 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 2,665,848 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/22 (Pre-refunded to 4/01/13) - MBIA Insured 2,200 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 2,411,222 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20 (Pre-refunded to 4/01/14) - MBIA Insured 6,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 6,570,300 Contract Revenue Bonds, Correctional Facilities, Series 2000C, 5.250%, 1/01/30 (Pre-refunded to 1/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.6% (7.7% OF TOTAL INVESTMENTS) 1,650 Islip Resource Recovery Agency, New York, Revenue Bonds, No Opt. Call AAA 1,956,999 Series 1994B, 7.250%, 7/01/11 (Alternative Minimum Tax) - AMBAC Insured Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 7,000 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 7,361,970 3,200 5.750%, 12/01/24 - FSA Insured 6/08 at 101.00 AAA 3,430,464 1,500 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 1,582,305 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2000A: 4,000 0.000%, 6/01/24 - FSA Insured No Opt. Call AAA 1,747,240 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,655,440 5,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 1,961,000 7,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 2,601,690 10,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 3,695,475 7,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 2,336,460 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 2,500 5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA 2,595,150 2,500 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,683,625 5,465 New York State Energy Research and Development Authority, 11/05 at 100.50 AAA 5,587,963 Adjustable Rate Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989A, 6.750%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured 1,250 New York State Energy Research and Development Authority, 1/06 at 101.00 AAA 1,264,763 Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989C, 5.600%, 6/01/25 (Alternative Minimum Tax) - MBIA Insured 2,940 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 3,103,552 Series 2005RR, 5.000%, 7/01/35 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.1% (3.4% OF TOTAL INVESTMENTS) 6,395 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,765,079 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 2,091,060 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 4,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 4,252,680 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 41 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 3,250 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA $ 3,506,133 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured New York City Municipal Water Finance Authority, New York, Water and Sewerage System Revenue Bonds, Fiscal Series 2000B: 830 6.100%, 6/15/31 - MBIA Insured 6/10 at 101.00 AAA 929,808 1,360 6.000%, 6/15/33 - MBIA Insured 6/10 at 101.00 AAA 1,520,203 ------------------------------------------------------------------------------------------------------------------------------------ $ 552,856 Total Long-Term Investments (cost $535,650,940) - 150.6% 567,256,540 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.7% 6,440,891 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.3)% (197,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 376,697,431 ====================================================================================================================
All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. (WI) Security purchased on a when-issued basis. See accompanying notes to financial statements. 42 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.4% (13.9% OF TOTAL INVESTMENTS) Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Project, Series 2000A: $ 250 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA $ 277,638 250 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 278,720 1,250 New York City Trust for Cultural Resources, New York, Revenue 1/07 at 102.00 AAA 1,310,888 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 4,000 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 4,187,600 Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/22 - MBIA Insured 500 New York City Industrial Development Agency, New York, No Opt. Call AAA 546,080 Civic Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,101,110 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 1,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,144,430 State University Educational Facilities, Series 1993A, 5.500%, 5/15/19 - AMBAC Insured 2,200 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,561,130 Resolution Consolidated Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/18 - FSA Insured 5,000 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 5,245,750 Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 - AMBAC Insured 1,935 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 2,080,976 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 700 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 802,158 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured 3,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 2,689,991 University of Rochester, Series 2000A, 0.000%, 7/01/24 - MBIA Insured Dormitory Authority of the State of New York, General Revenue Bonds, New York University, Series 2001-1: 1,500 5.500%, 7/01/24 - AMBAC Insured No Opt. Call AAA 1,748,025 500 5.500%, 7/01/40 - AMBAC Insured No Opt. Call AAA 587,905 810 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 857,612 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/20 - AMBAC Insured 1,270 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 1,364,958 State University Educational Facilities, Series 2002A, 5.000%, 5/15/16 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 20.5% (14.0% OF TOTAL INVESTMENTS) 1,000 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 1,098,660 Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 - FSA Insured New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: 1,625 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,763,271 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,085,090 3,000 Dormitory Authority of the State of New York, FHA-Insured 2/06 at 102.00 AAA 3,065,700 Mortgage Hospital Revenue Bonds, Ellis Hospital, Series 1995, 5.600%, 8/01/25 - MBIA Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 1/08 at 102.00 AAA 1,590,630 Vassar Brothers Hospital, Series 1997, 5.250%, 7/01/17 - FSA Insured 2,910 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 2,942,214 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 43 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 200 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA $ 209,676 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 (WI, settling 10/20/05) - MBIA Insured 1,205 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,264,973 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 2,460 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,694,069 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 2,740 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 2,896,975 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 3,246,480 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 3,450 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 3,650,445 Winthrop South Nassau University Health System Obligated Group, Series 2001A, 5.250%, 7/01/31 - AMBAC Insured 1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 1,469,818 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.3% (2.3% OF TOTAL INVESTMENTS) 2,165 New York City Housing Development Corporation, New York, 7/15 at 100.00 AAA 2,287,193 Capital Fund Program Revenue Bonds, Series 2005A, 5.000%, 7/01/25 - FGIC Insured 2,035 New York State Housing Finance Agency, Mortgage Revenue 5/06 at 102.00 AAA 2,112,452 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (0.9% OF TOTAL INVESTMENTS) 1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,100,740 Bonds, WSNCHS East Inc., Series 2000B, 6.000%, 8/01/24 - MBIA Insured 850 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 102.00 AAA 891,965 Bonds, NYSARC Inc., Series 2001A, 5.000%, 7/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.6% (9.9% OF TOTAL INVESTMENTS) Erie County, New York, General Obligation Bonds, Series 2003A: 500 5.250%, 3/15/15 - FGIC Insured 3/13 at 100.00 Aaa 549,450 500 5.250%, 3/15/16 - FGIC Insured 3/13 at 100.00 Aaa 547,035 600 5.250%, 3/15/17 - FGIC Insured 3/13 at 100.00 Aaa 656,034 600 5.250%, 3/15/18 - FGIC Insured 3/13 at 100.00 Aaa 654,810 315 Erie County, New York, General Obligation Bonds, No Opt. Call Aaa 348,037 Series 2004B, 5.250%, 4/01/13 - MBIA Insured 210 Nassau County, New York, General Obligation Improvement No Opt. Call AAA 238,875 Bonds, Series 1993H, 5.500%, 6/15/16 - MBIA Insured 2,000 New York City, New York, General Obligation Bonds, Fiscal 2/08 at 101.00 AAA 2,106,580 Series 1998F, 5.250%, 8/01/16 - FGIC Insured 2,500 New York City, New York, General Obligation Bonds, Fiscal 8/14 at 100.00 AAA 2,687,300 Series 2004I, 5.000%, 8/01/17 - MBIA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 650 5.000%, 11/01/13 - FSA Insured No Opt. Call AAA 708,331 1,180 5.000%, 11/01/14 - FSA Insured No Opt. Call AAA 1,289,988 New York City, New York, General Obligation Bonds, Fiscal Series 2005O: 1,000 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 1,080,730 1,000 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 1,075,740 550 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 592,246 Series 2005P, 5.000%, 8/01/18 - MBIA Insured 2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,134,500 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured 1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 1,249,330 Public Improvement Bonds, Series 1994, 7.500%, 3/01/13 - MBIA Insured 44 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 1,000 Red Hook Central School District, Dutchess County, New York, 6/12 at 100.00 Aaa $ 1,083,670 General Obligation Refunding Bonds, Series 2002, 5.125%, 6/15/18 - FSA Insured 500 West Islip Union Free School District, Suffolk County, 10/15 at 100.00 Aaa 545,845 New York, General Obligation Bonds, Series 2005, 5.000%, 10/01/16 - FSA Insured 1,525 Yonkers, New York, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 1,648,571 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 42.7% (29.0% OF TOTAL INVESTMENTS) 750 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 841,673 Facility Revenue Bonds, Buffalo City School District, Series 2003, 5.750%, 5/01/19 - FSA Insured 500 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 569,270 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 1,350 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 1,494,369 Service Contract Bonds, Series 2002B, 5.500%, 7/01/18 - MBIA Insured Metropolitan Transportation Authority, New York, State Service Contract Refunding Bonds, Series 2002A: 1,500 5.750%, 7/01/18 - FSA Insured No Opt. Call AAA 1,759,305 1,500 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 1,657,110 2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,079,380 2,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,704,850 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 1,000 5.000%, 11/15/18 - AMBAC Insured No Opt. Call AAA 1,074,120 580 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 600,729 580 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 598,717 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003C: 1,000 5.250%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 1,085,900 2,345 5.250%, 8/01/21 - AMBAC Insured 8/12 at 100.00 AAA 2,546,436 1,500 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,587,915 Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,088,680 Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 1,062,590 Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 525,385 Bonds, Wayne-Finger Lakes Board of Cooperative Education Services, Series 2004, 5.000%, 8/15/23 - FSA Insured 690 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AAA 747,153 of Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 - CIFG Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D: 495 5.000%, 2/15/14 - FGIC Insured No Opt. Call AAA 538,357 910 5.000%, 8/15/14 - FGIC Insured No Opt. Call AAA 992,291 145 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 154,342 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 - FSA Insured 1,210 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,287,053 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 1,500 New York State Local Government Assistance Corporation, No Opt. Call AAA 1,664,265 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured Dormitory Authority of the State of New York, Revenue Bonds, School Districts Financing Program, Series 2002D: 4,300 5.250%, 10/01/23 - MBIA Insured 10/12 at 100.00 AAA 4,667,263 875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00 AAA 910,893 2,960 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 3,404,414 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 45 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA $ 1,057,070 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/23 - MBIA Insured 750 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 793,538 Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC Insured 1,260 New York State Thruway Authority, State Personal Income Tax 3/15 at 100.00 AAA 1,347,633 Revenue Bonds, Series 2005A, 5.000%, 3/15/20 - FSA Insured 1,900 New York State Urban Development Corporation, Revenue No Opt. Call AAA 2,098,873 Bonds, Correctional Facilities, Series 1994A, 5.250%, 1/01/14 - FSA Insured 345 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 361,608 Certificates of Participation, High School Facility, Series 2005, 5.000%, 6/15/28 - FSA Insured 1,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 1,156,770 Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 - FSA Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 500 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 531,565 920 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 977,371 680 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 720,827 3,840 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 4,058,688 1,500 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,603,275 Agreement Revenue Bonds, John P. Colahan Court Complex, Series 1999, 5.000%, 4/15/16 - AMBAC Insured New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 1,500 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 1,633,560 3,800 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,119,998 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.2% (7.6% OF TOTAL INVESTMENTS) Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002A: 500 5.500%, 11/15/19 - AMBAC Insured 11/12 at 100.00 AAA 556,060 1,850 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 1,963,738 2,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 2,122,960 Transportation Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/25 - MBIA Insured 2,040 Metropolitan Transportation Authority, New York, 11/15 at 100.00 AAA 2,144,999 Transportation Revenue Bonds, Series 2005B, 5.000%, 11/15/35 - MBIA Insured 1,250 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 1,314,675 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured 1,500 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,574,895 Series 2005G, 5.000%, 1/01/32 - FSA Insured 500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 533,620 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 1,000 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 1,060,250 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/28 - XLCA Insured Triborough Bridge and Tunnel Authority, New York, Subordinate Lien General Purpose Revenue Refunding Bonds, Series 2002E: 780 5.500%, 11/15/20 - MBIA Insured No Opt. Call AAA 902,616 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,500,376 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 13.8% (9.4% OF TOTAL INVESTMENTS) 500 Longwood Central School District, Suffolk County, New York, 6/11 at 101.00 Aaa 567,355 Series 2000, 5.750%, 6/15/20 (Pre-refunded to 6/15/11) - FGIC Insured 1,500 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 1,620,900 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded to 10/01/15) - FGIC Insured 500 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 549,990 Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded to 10/01/14) - FSA Insured 46 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** (continued) $ 2,000 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA $ 2,188,680 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded to 3/15/13) - FGIC Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002B: 545 5.375%, 4/01/17 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 605,811 600 5.375%, 4/01/18 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 666,948 1,000 5.000%, 4/01/20 (Pre-refunded to 4/01/12) - AMBAC Insured 4/12 at 100.00 AAA 1,089,900 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002A: 1,500 5.250%, 4/01/17 (Pre-refunded to 4/01/12) - FSA Insured 4/12 at 100.00 AAA 1,656,540 1,000 5.250%, 4/01/18 (Pre-refunded to 4/01/12) - FSA Insured 4/12 at 100.00 AAA 1,104,360 1,250 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,388,463 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/23 (Pre-refunded to 4/01/13) - MBIA Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,096,010 Fund Bonds, Second General, Series 2004, 5.000%, 4/01/20 (Pre-refunded to 4/01/14) - MBIA Insured 2,000 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 2,253,700 Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded to 3/15/13) - FGIC Insured 2,115 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,413,511 Water Treatment Plant Bonds, Series 1994, 8.500%, 11/01/08 (Alternative Minimum Tax) - MBIA Insured 810 Puerto Rico Highway and Transportation Authority, Highway 7/10 at 101.00 AAA 911,177 Revenue Bonds, Series 2000B, 5.875%, 7/01/35 (Pre-refunded to 7/01/10) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.4% (5.7% OF TOTAL INVESTMENTS) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 5,050 5.125%, 12/01/22 - FSA Insured 6/08 at 101.00 AAA 5,311,136 1,000 5.250%, 12/01/26 - MBIA Insured 6/08 at 101.00 AAA 1,054,870 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 500 5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA 519,030 625 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 670,906 2,280 New York State Energy Research and Development Authority, 11/05 at 100.50 AAA 2,331,300 Adjustable Rate Gas Facilities Revenue Bonds, Brooklyn Union Gas Company, Series 1989A, 6.750%, 2/01/24 (Alternative Minimum Tax) - MBIA Insured 1,065 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/15 at 100.00 AAA 1,124,246 Series 2005RR, 5.000%, 7/01/35 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 10.1% (6.9% OF TOTAL INVESTMENTS) 1,830 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AAA 1,956,618 Revenue Bonds, Series 2001, 5.250%, 8/01/36 - MBIA Insured 1,940 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 2,052,268 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 2,091,060 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 1,170 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,272,445 Water and Sewerage System Revenue Bonds, Fiscal Series 2001A, 5.500%, 6/15/33 - MBIA Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 1,063,170 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,859,615 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 47 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 1,800 New York City Municipal Water Finance Authority, New York, 6/09 at 101.00 AAA $ 1,941,858 Water and Sewerage System Revenue Bonds, Fiscal Series 2000A, 5.500%, 6/15/32 - FGIC Insured 1,000 Suffolk County Water Authority, New York, Water System No Opt. Call AAA 1,093,635 Revenue Refunding Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 179,195 Total Long-Term Investments (cost $183,419,497) - 146.5% 192,585,321 =============----------------------------------------------------------------------------------------------------------------------- SHORT-TERM INVESTMENTS - 0.6% (0.4% OF TOTAL INVESTMENTS) 750 Puerto Rico Government Development Bank, Adjustable A-1 750,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 2.610%, 12/01/15 - MBIA Insured + ------------------------------------------------------------------------------------------------------------------------------------ $ 750 Total Short-Term Investments (cost $750,000) 750,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $184,169,497) - 147.1% 193,335,321 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 3,085,138 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (49.5)% (65,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 131,420,459 ====================================================================================================================
All of the bonds in the portfolio are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. (WI) Security purchased on a when-issued basis. + 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. See accompanying notes to financial statements. 48 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 5.2% (3.5% OF TOTAL INVESTMENTS) $ 880 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 911,654 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 2,890 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB 2,964,938 Pass-Through Bonds, Series 2001, 5.250%, 6/01/25 1,000 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 1,057,980 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 1,475 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 BBB 1,548,942 Series 2002-1, 5.500%, 7/15/24 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.3% (9.8% OF TOTAL INVESTMENTS) 25 New York City Trust for Cultural Resources, New York, Revenue 4/07 at 101.00 AAA 26,173 Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/22 - MBIA Insured 4,000 New York City Trust for Cultural Resources, New York, Revenue 7/12 at 100.00 AAA 4,192,560 Bonds, Museum of Modern Art, Series 2001D, 5.125%, 7/01/31 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,101,110 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 4,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 4,399,000 Bonds, Mount Sinai School of Medicine, Series 1994A, 5.150%, 7/01/24 - MBIA Insured 3,250 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 3,888,723 New York University, Series 1998A, 6.000%, 7/01/18 - MBIA Insured 1,280 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 1,342,912 Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 - MBIA Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 572,970 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured 2,000 Dormitory Authority of the State of New York, Second 7/10 at 101.00 AAA 2,252,360 General Resolution Consolidated Revenue Refunding Bonds, City University System, Series 2000A, 6.125%, 7/01/13 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 23.9% (16.4% OF TOTAL INVESTMENTS) 690 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 758,075 Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 - FSA Insured New York City Health and Hospitals Corporation, New York, Health System Revenue Bonds, Series 2003A: 1,500 5.250%, 2/15/21 - AMBAC Insured 2/13 at 100.00 AAA 1,627,635 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,085,090 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 2,022,140 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,051,340 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/28 - FGIC Insured 1,635 Dormitory Authority of the State of New York, Revenue 8/14 at 100.00 AAA 1,790,570 Bonds, New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 1,725 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 1,823,825 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 633,432 South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 9,800 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 10,648,778 Mortgage Revenue Bonds, New York Hospital Medical Center of Queens, Series 1999, 5.600%, 2/15/39 - AMBAC Insured 49 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE (continued) $ 170 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA $ 183,967 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 2,050 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 2,221,442 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 2,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 2,643,850 Revenue Bonds, Bronx Lebanon Hospital, Series 1998E, 5.200%, 2/15/15 - MBIA Insured 1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 1,469,818 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured Suffolk County Industrial Development Agency, New York, Revenue Bonds, Huntington Hospital, Series 2002C: 725 6.000%, 11/01/22 11/12 at 100.00 Baa1 779,179 1,045 5.875%, 11/01/32 11/12 at 100.00 Baa1 1,102,130 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.6% (3.8% OF TOTAL INVESTMENTS) New York City Housing Development Corporation, New York, Multifamily Housing Revenue Bonds, Series 2002A: 2,725 5.375%, 11/01/23 (Alternative Minimum Tax) 5/12 at 100.00 AA 2,829,585 1,375 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 1,422,850 Dormitory Authority of the State of New York, GNMA Collateralized Revenue Bonds, Willow Towers Inc., Series 2002: 1,000 5.250%, 2/01/22 8/12 at 101.00 AAA 1,070,840 1,500 5.400%, 2/01/34 8/12 at 101.00 AAA 1,608,600 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.5% (9.9% OF TOTAL INVESTMENTS) Buffalo, New York, General Obligation Bonds, Series 2002B: 1,490 5.375%, 11/15/18 - MBIA Insured 11/12 at 100.00 AAA 1,645,482 2,375 5.375%, 11/15/20 - MBIA Insured 11/12 at 100.00 AAA 2,601,813 1,240 Canandaigua City School District, Ontario County, New York, 4/12 at 101.00 Aaa 1,369,220 General Obligation Refunding Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured 3,000 New York City, New York, General Obligation Bonds, 3/11 at 101.00 AAA 3,259,860 Fiscal Series 2001H, 5.250%, 3/15/16 - FGIC Insured 3,250 New York City, New York, General Obligation Bonds, 3/12 at 100.00 AAA 3,465,768 Fiscal Series 2002C, 5.125%, 3/15/25 - FSA Insured 525 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 571,106 Fiscal Series 2006C, 5.000%, 8/01/16 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2005O: 1,150 5.000%, 6/01/17 - FSA Insured 6/15 at 100.00 AAA 1,242,839 1,150 5.000%, 6/01/18 - FSA Insured 6/15 at 100.00 AAA 1,237,101 525 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 565,325 Fiscal Series 2005P, 5.000%, 8/01/18 - MBIA Insured 2,000 New York City, New York, General Obligation Bonds, 9/15 at 100.00 AAA 2,134,500 Fiscal Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 33.3% (22.8% OF TOTAL INVESTMENTS) 400 Erie County Industrial Development Agency, New York, 5/12 at 100.00 AAA 447,032 School Facility Revenue Bonds, Buffalo City School District, Series 2003, 5.750%, 5/01/20 - FSA Insured 4,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 4,236,840 Service Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 2,290 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,477,643 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 1,000 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 1,074,120 Tax Secured Revenue Bonds, Series 2003A, 5.000%, 11/15/18 - AMBAC Insured 50 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 5,000 New York City Transitional Finance Authority, New York, Future 11/11 at 101.00 AAA $ 5,483,350 Tax Secured Bonds, Fiscal Series 2002B, 5.250%, 5/01/16 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 1,085,900 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 531,295 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 265,645 Program Insured Revenue Bonds, Vanderheyden Hall Inc., Issue 2, Series 1998F, 5.250%, 7/01/18 - AMBAC Insured 220 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 234,276 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 - FSA Insured 1,000 New York State Local Government Assistance Corporation, 10/08 at 101.00 AAA 1,060,680 Revenue Bonds, Series 1998A, 5.000%, 4/01/15 - FGIC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,256,230 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 2,625 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 3,019,118 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,200 New York State Thruway Authority, State Personal Income 3/15 at 100.00 AAA 1,283,460 Tax Revenue Bonds, Series 2005A, 5.000%, 3/15/20 - FSA Insured 8,600 New York State Urban Development Corporation, Revenue No Opt. Call AAA 10,057,012 Refunding Bonds, State Facilities, Series 1995, 5.700%, 4/01/20 - FSA Insured New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 500 5.000%, 10/15/24 - MBIA Insured 10/14 at 100.00 AAA 531,565 1,400 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 1,487,304 1,040 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,102,442 New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 1,900 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,069,176 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,084,210 750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 818,715 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.5% (8.5% OF TOTAL INVESTMENTS) Metropolitan Transportation Authority, New York, Transportation Revenue Refunding Bonds, Series 2002A: 2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,145,640 4,000 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 4,245,920 1,250 Metropolitan Transportation Authority, New York, Transportation 11/15 at 100.00 AAA 1,314,338 Revenue Bonds, Series 2005B, 5.000%, 11/15/35 - MBIA Insured 1,000 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,049,930 Series 2005G, 5.000%, 1/01/32 - FSA Insured 85 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 90,715 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 (Alternative Minimum Tax) - MBIA Insured 4,000 Port Authority of New York and New Jersey, Consolidated 8/08 at 101.00 AAA 4,184,320 Revenue Bonds, One Hundred Twenty-Fourth Series 2001, 5.000%, 8/01/11 (Alternative Minimum Tax) - FGIC Insured Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: 500 5.000%, 12/01/19 - FSA Insured 6/15 at 101.00 AAA 541,265 1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,060,250 780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 902,616 Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/20 - MBIA Insured 51 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 13.3% (9.1% OF TOTAL INVESTMENTS) $ 180 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA $ 217,681 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (DD, settling 10/06/05) 935 New York State Housing Finance Agency, Construction Fund No Opt. Call AAA 1,088,088 Bonds, State University, Series 1986A, 8.000%, 5/01/11 4,750 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 5,218,920 State University Educational Facilities, Series 2002A, 5.000%, 5/15/27 (Pre-refunded to 5/15/12) - FGIC Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 1,110,770 Fund Bonds, Second General, Series 2003A, 5.250%, 4/01/23 (Pre-refunded to 4/01/13) - MBIA Insured 3,000 New York State Urban Development Corporation, State 3/12 at 100.00 AA*** 3,290,280 Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded to 3/15/12) New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1: 1,000 5.500%, 3/15/20 (Pre-refunded to 3/15/13) - FGIC Insured 3/13 at 100.00 AAA 1,126,850 1,500 5.500%, 3/15/21 (Pre-refunded to 3/15/13) - FGIC Insured 3/13 at 100.00 AAA 1,690,275 2,575 Puerto Rico Infrastructure Financing Authority, Special 10/10 at 101.00 AAA 2,816,844 Obligation Bonds, Series 2000A, 5.500%, 10/01/40 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 16.8% (11.5% OF TOTAL INVESTMENTS) 1,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 1,051,710 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2001A: 5,000 5.000%, 9/01/27 - FSA Insured 9/11 at 100.00 AAA 5,190,300 2,715 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,914,417 5,000 New York State Energy Research and Development Authority, 11/08 at 102.00 AAA 5,313,550 Pollution Control Revenue Refunding Bonds, Niagara Mohawk Power Corporation, Series 1998A, 5.150%, 11/01/25 - AMBAC Insured 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 5,373,050 Series 2000HH, 5.250%, 7/01/29 - FSA Insured 1,090 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 1,127,136 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.4% (3.7% OF TOTAL INVESTMENTS) 2,665 Albany Municipal Water Finance Authority, New York, 6/08 at 100.00 AAA 2,803,260 Second Resolution Revenue Bonds, Series 2003A, 5.250%, 12/01/18 - MBIA Insured 2,170 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AA+ 2,359,029 Water and Sewerage System Revenue Bonds, Fiscal Series 2001A, 5.500%, 6/15/33 1,500 Niagara Falls Public Water Authority, New York, Water 7/15 at 100.00 AAA 1,580,022 and Sewerage Revenue Bonds, Series 2005, 5.000%, 7/15/28 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 166,815 Total Long-Term Investments (cost $170,869,417) - 144.8% 180,538,671 =============----------------------------------------------------------------------------------------------------------------------- 52 PRINCIPAL MARKET AMOUNT (000) DESCRIPTION(1) RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 1.4% (1.0% OF TOTAL INVESTMENTS) $ 1,750 Puerto Rico Government Development Bank, Adjustable A-1 $ 1,750,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 2.610%, 12/01/15 - MBIA Insured + ------------------------------------------------------------------------------------------------------------------------------------ $ 1,750 Total Short-Term Investments (cost $1,750,000) 1,750,000 =============----------------------------------------------------------------------------------------------------------------------- Total Investments (cost $172,619,417) - 146.2% 182,288,671 -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.7% 3,380,320 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (48.9)% (61,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 124,668,991 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. Such securities are normally considered to be equivalent to AAA rated securities. (DD) Portion of security purchased on a delayed delivery basis. + 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. See accompanying notes to financial statements. 53 Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK) Portfolio of INVESTMENTS September 30, 2005
PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 4.6% (3.1% OF TOTAL INVESTMENTS) $ 360 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB $ 372,949 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 1,500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB 1,586,970 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 450 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 BBB 477,301 Series 1999-1, 6.250%, 7/15/34 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 22.2% (14.9% OF TOTAL INVESTMENTS) 1,000 New York City Trust for Cultural Resources, New York, Revenue 1/07 at 102.00 AAA 1,048,710 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,101,110 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 395 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 416,847 Bonds, State University Dormitory Facilities, Series 1999B, 5.125%, 7/01/28 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Insured No Opt. Call AAA 2,199,500 Revenue Bonds, Mount Sinai School of Medicine, Series 1994A, 5.150%, 7/01/24 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Second 7/10 at 101.00 AAA 1,126,180 General Resolution Consolidated Revenue Refunding Bonds, City University System, Series 2000A, 6.125%, 7/01/13 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Insured Revenue 9/12 at 100.00 AA 2,069,040 Bonds, Long Island University, Series 2003A, 5.000%, 9/01/32 - RAAI Insured 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AA 1,033,340 Mount St. Mary College, Series 2003, 5.000%, 7/01/32 - RAAI Insured 2,500 Dormitory Authority of the State of New York, Revenue 7/12 at 100.00 Aaa 2,707,775 Bonds, Rochester Institute of Technology, Series 2002A, 5.250%, 7/01/22 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ HEALTHCARE - 21.6% (14.5% OF TOTAL INVESTMENTS) 500 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 549,330 Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 - FSA Insured 2,640 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 2,864,638 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured 500 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 525,670 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/28 - FGIC Insured 830 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 908,975 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 25 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 26,432 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 750 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 791,790 South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 500 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 525,375 North Shore Long Island Jewish Group, Series 2003, 5.375%, 5/01/23 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 100.00 AAA 2,082,700 Mortgage Hospital Revenue Bonds, Lutheran Medical Center, Series 2003, 5.000%, 8/01/31 - MBIA Insured 3,000 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 3,116,760 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.000%, 2/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% (1.7% OF TOTAL INVESTMENTS) 1,185 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,259,951 Nursing Home Mortgage Revenue Bonds, Shorefront Jewish Geriatric Center Inc., Series 2002, 5.200%, 2/01/32 54 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 8.3% (5.6% OF TOTAL INVESTMENTS) $ 2,400 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA $ 2,524,728 Series 1998H, 5.125%, 8/01/25 - MBIA Insured 225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 244,760 Series 2006C, 5.000%, 8/01/16 - FSA Insured 1,500 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 1,600,875 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 40.9% (27.4% OF TOTAL INVESTMENTS) 2,695 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue No Opt. Call AAA 2,985,710 State Aid Secured Bonds, Series 2004A, 5.250%, 8/15/12 - MBIA Insured 1,000 Metropolitan Transportation Authority, New York, State 7/12 at 100.00 AAA 1,059,210 Service Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB 586,622 Revenue Bonds, Series 2003, 5.500%, 1/01/34 3,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 3,281,280 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/18 - AMBAC Insured 2,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 2,117,220 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 145 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 154,409 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 - FSA Insured 1,290 New York State Environmental Facilities Corporation, State 1/13 at 100.00 AAA 1,360,473 Personal Income Tax Revenue Bonds, Series 2002A, 5.000%, 1/01/23 - FGIC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,256,230 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 950 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 1,092,633 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 100 New York State Urban Development Corporation, Revenue 1/08 at 102.00 AAA 104,870 Refunding Bonds, Correctional Capital Facilities, Series 1998, 5.000%, 1/01/20 - MBIA Insured 2,000 New York State Urban Development Corporation, Service No Opt. Call AA- 2,172,800 Contract Revenue Bonds, Correctional and Youth Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 610 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 648,040 555 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 588,322 1,200 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 1,306,848 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1, 5.250%, 6/01/20 - AMBAC Insured 750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 818,715 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.1% (5.4% OF TOTAL INVESTMENTS) 1,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 1,061,480 Transportation Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/25 - FGIC Insured 3,030 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 3,213,103 Revenue Bonds, One Hundred Twenty-Eighth Series 2002, 5.000%, 11/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** - 23.5% (15.7% OF TOTAL INVESTMENTS) 100 Erie County Water Authority, New York, Water Revenue 12/09 at 100.00 AAA 117,691 Bonds, Series 1990B, 6.750%, 12/01/14 - AMBAC Insured 195 New York, General Obligation Bonds, Series 1998B, 3/08 at 101.00 AAA 205,836 5.000%, 3/01/17 (Pre-refunded to 3/01/08) - AMBAC Insured 990 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 1,069,467 Bonds, State University Dormitory Facilities, Series 1999B, 5.125%, 7/01/28 (Pre-refunded to 7/01/09) - MBIA Insured 2,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 2,735,850 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded to 3/15/13) - FGIC Insured 55 Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK) (continued) Portfolio of INVESTMENTS September 30, 2005 PRINCIPAL OPTIONAL CALL MARKET AMOUNT (000) DESCRIPTION(1) PROVISIONS* RATINGS** VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED *** (continued) $ 3,500 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA $ 3,814,650 Fund Bonds, Series 2002B, 5.000%, 4/01/20 (Pre-refunded to 4/01/12) - AMBAC Insured New York State Urban Development Corporation, State Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1: 1,000 5.500%, 3/15/20 (Pre-refunded to 3/15/13) - FGIC Insured 3/13 at 100.00 AAA 1,126,850 1,000 5.500%, 3/15/21 (Pre-refunded to 3/15/13) - FGIC Insured 3/13 at 100.00 AAA 1,126,850 1,975 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 2,162,427 Purpose Revenue Bonds, Series 2002A, 5.125%, 1/01/31 (Pre-refunded to 1/01/12) - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 16.1% (10.8% OF TOTAL INVESTMENTS) 4,000 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 4,206,840 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 - FSA Insured 2,000 New York State Power Authority, General Revenue Bonds, 11/12 at 100.00 Aa2 2,134,340 Series 2002A, 5.000%, 11/15/20 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 2,149,220 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.3% (0.9% OF TOTAL INVESTMENTS) 640 Niagara Falls Public Water Authority, New York, Water and 7/15 at 100.00 AAA 674,145 Sewerage Revenue Bonds, Series 2005, 5.000%, 7/15/28 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 73,045 Total Long-Term Investments (cost $75,178,561) - 149.0% 78,493,837 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.3% 1,188,490 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.3)% (27,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 52,682,327 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. * Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. ** Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. *** Securities are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensures the timely payment of principal and interest. See accompanying notes to financial statements. 56 Statement of ASSETS AND LIABILITIES September 30, 2005
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME (NQN) (NVN) (NUN) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $399,126,154, $522,871,276 and $535,650,940, respectively) $419,145,614 $557,199,837 $567,256,540 Cash 1,273,349 1,432,025 13,138 Receivables: Interest 5,760,369 7,348,152 7,562,004 Investments sold 60,000 135,000 60,000 Other assets 36,241 44,589 54,226 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 426,275,573 566,159,603 574,945,908 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased 710,924 779,383 789,915 Accrued expenses: Management fees 220,130 290,730 295,141 Other 105,293 129,281 130,919 Preferred share dividends payable 36,503 25,420 32,502 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 1,072,850 1,224,814 1,248,477 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 144,000,000 193,000,000 197,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $281,202,723 $371,934,789 $376,697,431 ==================================================================================================================================== Common shares outstanding 17,720,933 23,435,202 24,083,739 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.87 $ 15.87 $ 15.64 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 177,209 $ 234,352 $ 240,837 Paid-in surplus 248,922,800 327,923,797 335,102,933 Undistributed (Over-distribution of) net investment income 1,076,914 1,962,665 2,027,816 Accumulated net realized gain (loss) from investments and forward swaps 11,006,340 7,485,414 7,720,245 Net unrealized appreciation of investments 20,019,460 34,328,561 31,605,600 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $281,202,723 $371,934,789 $376,697,431 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 Preferred 1,000,000 1,000,000 1,000,000 ====================================================================================================================================
See accompanying notes to financial statements. 57 Statement of ASSETS AND LIABILITIES September 30, 2005 (continued)
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at market value (cost $184,169,497, $172,619,417 and $75,178,561, respectively) $193,335,321 $182,288,671 $78,493,837 Cash 814,417 1,079,738 308,517 Receivables: Interest 2,636,034 2,382,633 920,873 Investments sold -- 60,000 -- Other assets 17,071 7,111 3,444 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 196,802,843 185,818,153 79,726,671 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Payable for investments purchased 210,644 61,473 -- Accrued expenses: Management fees 103,291 51,533 26,078 Other 54,593 31,642 16,267 Preferred share dividends payable 13,856 4,514 1,999 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 382,384 149,162 44,344 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 65,000,000 61,000,000 27,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $131,420,459 $124,668,991 $52,682,327 ==================================================================================================================================== Common shares outstanding 8,329,215 7,957,934 3,512,848 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 15.78 $ 15.67 $ 15.00 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 83,292 $ 79,579 $ 35,128 Paid-in surplus 118,406,693 112,920,342 49,501,696 Undistributed (Over-distribution of) net investment income 602,243 279,899 (109,502) Accumulated net realized gain (loss) from investments and forward swaps 3,162,407 1,719,917 (60,271) Net unrealized appreciation of investments 9,165,824 9,669,254 3,315,276 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $131,420,459 $124,668,991 $52,682,327 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 58 Statement of OPERATIONS Year Ended September 30, 2005
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME (NQN) (NVN) (NUN) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 20,193,034 $27,147,203 $26,857,086 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,695,595 3,548,641 3,601,413 Preferred shares - auction fees 360,000 482,500 492,500 Preferred shares - dividend disbursing agent fees 30,000 30,000 40,000 Shareholders' servicing agent fees and expenses 40,148 42,922 40,897 Custodian's fees and expenses 116,851 139,058 131,644 Directors'/Trustees' fees and expenses 7,799 10,191 10,502 Professional fees 24,819 30,191 30,028 Shareholders' reports - printing and mailing expenses 30,226 33,284 40,735 Stock exchange listing fees 10,569 10,550 10,513 Investor relations expense 53,329 74,619 76,373 Portfolio insurance expense -- 17,346 -- Other expenses 31,878 38,385 52,416 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,401,214 4,457,687 4,527,021 Custodian fee credit (31,972) (25,471) (17,022) Expense reimbursement -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,369,242 4,432,216 4,509,999 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 16,823,792 22,714,987 22,347,087 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain from investments 11,280,637 7,520,987 7,715,858 Net realized gain (loss) from forward swaps -- -- -- Change in net unrealized appreciation (depreciation) of investments (14,661,338) (9,640,550) (9,585,443) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (3,380,701) (2,119,563) (1,869,585) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,241,432) (3,192,789) (3,322,753) From accumulated net realized gains from investments (207,408) (165,437) (134,345) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (2,448,840) (3,358,226) (3,457,098) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 10,994,251 $17,237,198 $17,020,404 ====================================================================================================================================
See accompanying notes to financial statements. 59 Statement of OPERATIONS Year Ended September 30, 2005 (continued)
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $ 9,195,424 $ 8,686,065 $3,558,078 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,261,538 1,187,373 510,297 Preferred shares - auction fees 162,500 152,500 67,500 Preferred shares - dividend disbursing agent fees 20,000 10,000 10,000 Shareholders' servicing agent fees and expenses 15,511 1,994 879 Custodian's fees and expenses 52,461 47,152 21,467 Directors'/Trustees' fees and expenses 3,589 3,444 1,436 Professional fees 16,018 15,985 11,824 Shareholders' reports - printing and mailing expenses 13,550 16,015 9,405 Stock exchange listing fees 10,534 677 299 Investor relations expense 26,910 25,147 10,089 Portfolio insurance expense -- -- -- Other expenses 19,360 17,361 11,234 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,601,971 1,477,648 654,430 Custodian fee credit (6,291) (12,956) (5,810) Expense reimbursement -- (558,841) (249,544) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,595,680 905,851 399,076 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,599,744 7,780,214 3,159,002 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain from investments 3,350,095 1,654,938 194,563 Net realized gain (loss) from forward swaps -- -- (164,162) Change in net unrealized appreciation (depreciation) of investments (4,007,124) (804,193) 748,362 Change in net unrealized appreciation (depreciation) of forward swaps -- -- 71,962 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (657,029) 850,745 850,725 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (977,190) (1,006,110) (443,675) From accumulated net realized gains from investments (91,205) (58,911) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,068,395) (1,065,021) (443,675) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations $ 5,874,320 $ 7,565,938 $3,566,052 ====================================================================================================================================
See accompanying notes to financial statements. 60 Statement of CHANGES IN NET ASSETS
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY (NQN) SELECT QUALITY (NVN) QUALITY INCOME (NUN) ----------------------------- ------------------------------ ----------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 9/30/05 9/30/04 9/30/05 9/30/04 9/30/05 9/30/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 16,823,792 $ 18,125,685 $ 22,714,987 $ 23,637,267 $ 22,347,087 $ 23,595,365 Net realized gain (loss) from investments 11,280,637 4,736,769 7,520,987 2,941,892 7,715,858 2,239,339 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (14,661,338) (2,838,817) (9,640,550) 1,637,824 (9,585,443) (195,181) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (2,241,432) (870,812) (3,192,789) (1,360,284) (3,322,753) (1,396,624) From accumulated net realized gains from investments (207,408) (486,403) (165,437) (466,684) (134,345) (373,896) ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 10,994,251 18,666,422 17,237,198 26,390,015 17,020,404 23,869,003 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (16,586,798) (17,494,722) (21,419,779) (22,362,742) (21,167,079) (22,127,646) From accumulated net realized gains from investments (4,864,391) (7,179,886) (2,999,710) (6,416,699) (2,167,643) (6,168,948) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (21,451,189) (24,674,608) (24,419,489) (28,779,441) (23,334,722) (28,296,594) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 355,427 -- 232,115 -- -- Preferred shares offering costs -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 355,427 -- 232,115 -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (10,456,938) (5,652,759) (7,182,291) (2,157,311) (6,314,318) (4,427,591) Net assets applicable to Common shares at the beginning of year 291,659,661 297,312,420 379,117,080 381,274,391 383,011,749 387,439,340 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $281,202,723 $291,659,661 $371,934,789 $379,117,080 $376,697,431 $383,011,749 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 1,076,914 $ 3,114,014 $ 1,962,665 $ 4,047,545 $ 2,027,816 $ 4,186,397 ====================================================================================================================================
See accompanying notes to financial statements. 61 Statement of CHANGES IN NET ASSETS (continued)
INSURED NEW YORK INSURED NEW YORK INSURED NEW YORK PREMIUM INCOME (NNF) DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK) ---------------------------- ----------------------------- ---------------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 9/30/05 9/30/04 9/30/05 9/30/04 9/30/05 9/30/04 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,599,744 $ 8,129,299 $ 7,780,214 $ 7,795,395 $ 3,159,002 $ 3,232,605 Net realized gain (loss) from investments 3,350,095 1,514,151 1,654,938 910,091 194,563 (11,945) Net realized gain (loss) from forward swaps -- -- -- -- (164,162) -- Change in net unrealized appreciation (depreciation) of investments (4,007,124) (902,484) (804,193) 1,836,211 748,362 1,272,870 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- 71,962 (71,962) Distributions to Preferred Shareholders: From net investment income (977,190) (476,973) (1,006,110) (473,203) (443,675) (229,692) From accumulated net realized gains from investments (91,205) -- (58,911) (75,265) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase in net assets applicable to Common shares from operations 5,874,320 8,263,993 7,565,938 9,993,229 3,566,052 4,191,876 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (7,358,861) (7,693,168) (6,835,866) (7,114,393) (2,701,380) (3,045,010) From accumulated net realized gains from investments (1,528,887) -- (921,520) (918,355) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (8,887,748) (7,693,168) (7,757,386) (8,032,748) (2,701,380) (3,045,010) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Net proceeds from Common shares issued to shareholders due to reinvestment of distributions -- 128,469 -- -- -- 25,784 Preferred shares offering costs -- -- -- (1,429) -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- 128,469 -- (1,429) -- 25,784 ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,013,428) 699,294 (191,448) 1,959,052 864,672 1,172,650 Net assets applicable to Common shares at the beginning of year 134,433,887 133,734,593 124,860,439 122,901,387 51,817,655 50,645,005 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $131,420,459 $134,433,887 $124,668,991 $124,860,439 $52,682,327 $51,817,655 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 602,243 $ 1,340,997 $ 279,899 $ 471,252 $ (109,502) $ (123,449) ====================================================================================================================================
See accompanying notes to financial statements. 62 Notes to FINANCIAL STATEMENTS 1. GENERAL INFORMATION AND SIGNIFICANT ACCOUNTING POLICIES The New York funds (the "Funds") covered in this report and their corresponding Common share stock exchange symbols are Nuveen New York Investment Quality Municipal Fund, Inc. (NQN), Nuveen New York Select Quality Municipal Fund, Inc. (NVN), Nuveen New York Quality Income Municipal Fund, Inc. (NUN), Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF), Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) and Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK). All of the Funds' Common shares trade on the New York Stock Exchange, with the exception of Insured New York Dividend Advantage's (NKO) Common shares and Insured New York Tax-Free Advantage's (NRK) Common shares, which trade on the American Stock Exchange. The Funds are registered under the Investment Company Act of 1940, as amended, as closed-end management investment companies. Each Fund seeks to provide current income exempt from both regular federal and New York state income taxes, and in the case of Insured New York Tax-Free Advantage (NRK) the alternative minimum tax applicable to individuals, by investing primarily in a diversified portfolio of municipal obligations issued by state and local government authorities within the state of New York or certain U.S. territories. Effective January 1, 2005, Nuveen Advisory Corp. ("NAC"), the Funds' previous Adviser, and its affiliate, Nuveen Institutional Advisory Corp. ("NIAC"), were merged into Nuveen Asset Management ("NAM"), each wholly owned subsidiaries of Nuveen Investments, Inc. ("Nuveen"). As a result of the merger, NAM is now the Adviser to all funds previously advised by either NAC or NIAC. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements in accordance with U.S. generally accepted accounting principles. Investment Valuation The prices of municipal bonds in each Fund's investment portfolio are provided by a pricing service approved by the Fund's Board of Directors/Trustees. When market price quotes are not readily available (which is usually the case for municipal securities), the pricing service establishes fair market value based on yields or prices of municipal bonds of comparable quality, type of issue, coupon, maturity and rating, indications of value from securities dealers, evaluations of anticipated cash flows or collateral and general market conditions. Prices of derivative investments are also provided by an independent pricing service approved by each Fund's Board of Directors/Trustees. If the pricing service is unable to supply a price for a municipal bond or derivative investment, each Fund may use a market price or fair market value quote provided by a major broker/dealer in such investments. If it is determined that the market price or fair market value for an investment are unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term securities are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued or delayed delivery basis may have extended settlement periods. Any investments so purchased are subject to market fluctuation during this period. The Funds have instructed the custodian to segregate assets with a current value at least equal to the amount of the when-issued and delayed delivery purchase commitments. At September 30, 2005, New York Investment Quality (NQN), New York Select Quality (NVN), New York Quality Income (NUN), Insured New York Premium Income (NNF) and Insured New York Dividend Advantage (NKO) had outstanding when-issued or delayed delivery purchase commitments of $710,924, $779,383, $789,915, $210,644, and $61,473, respectively. There were no such outstanding purchase commitments in Insured New York Tax-Free Advantage (NRK). Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. Income Taxes Each Fund is a separate taxpayer for federal income tax purposes. Each Fund intends to distribute substantially all net investment income and net capital gains to shareholders and to otherwise comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. Therefore, no federal income tax provision is required. Furthermore, each Fund intends to satisfy conditions which will enable interest from municipal securities, which is exempt from regular federal and New York state income taxes, and in the case of Insured New York Tax-Free Advantage (NRK) the alternative minimum tax applicable to individuals, to retain such tax-exempt status when distributed to shareholders of the Funds. All monthly tax-exempt income dividends paid during the fiscal year ended September 30, 2005, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 63 Notes to FINANCIAL STATEMENTS (continued) Dividends and Distributions to Common Shareholders Dividends from tax-exempt net investment income are declared monthly. Net realized capital gains and/or market discount from investment transactions, if any, are distributed to shareholders not less frequently than annually. Furthermore, capital gains are distributed only to the extent they exceed available capital loss carryforwards. Distributions to Common shareholders of tax-exempt net investment income, net realized capital gains and/or market discount, if any, are recorded on the ex-dividend date. The amount and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. Preferred Shares The Funds have issued and outstanding Preferred shares, $25,000 stated value per share, as a means of effecting financial leverage. Each Fund's Preferred shares are issued in one or more Series. The dividend rate paid on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Number of shares: Series M 960 -- 2,200 1,320 -- -- Series T 2,400 1,720 -- 1,280 -- -- Series W -- 2,400 2,200 -- -- -- Series TH -- 3,600 2,400 -- 2,440 1,080 Series F 2,400 -- 1,080 -- -- -- --------------------------------------------------------------------------------------------------------------------- Total 5,760 7,720 7,880 2,600 2,440 1,080 =====================================================================================================================
Insurance New York Investment Quality (NQN), New York Select Quality (NVN), New York Quality Income (NUN) and Insured New York Premium Income (NNF) invest only in municipal securities which are either covered by insurance or are backed by an escrow or trust account containing sufficient U.S. Government or U.S. Government agency securities, both of which ensure the timely payment of principal and interest. Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) invest at least 80% of their net assets (including net assets attributable to Preferred shares) in municipal securities that are covered by insurance. Each Fund may also invest up to 20% of its net assets (including net assets applicable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Funds' Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. 64 Forward Swap Transactions The Funds may invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to mitigate the negative impact that an increase in long-term interest rates could have on Common share net asset value. Forward interest rate swap transactions involve each Fund's agreement with the counterparty to pay, in the future, a fixed rate payment in exchange for the counterparty paying the Fund a variable rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract, and would increase or decrease in value based primarily on the extent to which long-term interest rates for bonds having a maturity of the swaps' termination date were to increase or decrease. The Funds may close out a contract prior to the effective date, at which point a realized gain or loss would be recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. Each Fund intends, but is not obligated to, terminate its forward swaps before the effective date. Accordingly, the risk of loss with respect to the swap counterparty on such transactions is limited to the credit risk associated with a counterparty failing to honor its commitment to pay any realized gain to the Fund upon termination. To minimize such credit risk, all counterparties are required to pledge collateral daily (based on the daily valuation of each swap) on behalf of each Fund with a value approximately equal to the amount of any unrealized gain above a pre-determined threshold. Reciprocally, when any of the Funds have an unrealized loss on a swap contract, the Funds have instructed the custodian to pledge assets of the Funds as collateral with a value approximately equal to the amount of the unrealized loss above a pre-determined threshold. Collateral pledges are monitored and subsequently adjusted if and when the swap valuations fluctuate, either up or down, by at least the predetermined threshold amount. At September 30, 2005, the Funds did not have any forward swap contracts outstanding. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets applicable to Common shares from operations during the reporting period. Actual results may differ from those estimates. 2. FUND SHARES Transactions in Common shares were as follows:
NEW YORK INVESTMENT NEW YORK SELECT QUALITY (NQN) QUALITY (NVN) ---------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 9/30/05 9/30/04 9/30/05 9/30/04 ---------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- 21,444 -- 14,240 ========================================================================================================== NEW YORK QUALITY INSURED NEW YORK INCOME (NUN) PREMIUM INCOME (NNF) ---------------------- ----------------------- YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 9/30/05 9/30/04 9/30/05 9/30/04 ---------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- 7,902 ========================================================================================================== INSURED NEW YORK INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) TAX-FREE ADVANTAGE (NRK) ----------------------- ------------------------ YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED 9/30/05 9/30/04 9/30/05 9/30/04 ---------------------------------------------------------------------------------------------------------- Common shares issued to shareholders due to reinvestment of distributions -- -- -- 1,725 ==========================================================================================================
65 Notes to FINANCIAL STATEMENTS (continued) 3. SECURITIES TRANSACTIONS Purchases and sales (including maturities) of investments in long-term municipal securities during the fiscal year ended September 30, 2005, were as follows:
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Purchases $126,341,728 $ 96,551,914 $96,730,000 $43,942,102 $21,388,636 $5,606,861 Sales and maturities 133,029,799 101,879,866 94,774,430 47,064,532 24,635,787 5,400,738 =====================================================================================================================
4. INCOME TAX INFORMATION The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the treatment of paydown gains and losses, timing differences in recognizing taxable market discount and timing differences in recognizing certain gains and losses on investment transactions. At September 30, 2005, the cost of investments was as follows: NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME (NQN) (NVN) (NUN) -------------------------------------------------------------------------------- Cost of investments $398,887,566 $522,739,110 $535,492,571 ================================================================================ INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) -------------------------------------------------------------------------------- Cost of investments $184,108,444 $172,575,989 $75,342,591 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2005, were as follows: NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME (NQN) (NVN) (NUN) -------------------------------------------------------------------------------- Gross unrealized: Appreciation $21,203,666 $35,309,579 $32,634,702 Depreciation (945,618) (848,852) (870,733) -------------------------------------------------------------------------------- Net unrealized appreciation of investments $20,258,048 $34,460,727 $31,763,969 ================================================================================ INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) -------------------------------------------------------------------------------- Gross unrealized: Appreciation $9,607,193 $9,961,594 $3,376,419 Depreciation (380,316) (248,912) (225,173) -------------------------------------------------------------------------------- Net unrealized appreciation of investments $9,226,877 $9,712,682 $3,151,246 ================================================================================ 66 The tax components of undistributed net investment income and net realized gains at September 30, 2005, were as follows:
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Undistributed net tax-exempt income * $ 2,106,435 $3,484,665 $3,462,953 $1,108,940 $ 782,123 $97,865 Undistributed net ordinary income ** -- -- 31,355 -- 4,227 15,427 Undistributed net long-term capital gains 11,006,407 7,485,414 7,729,456 3,162,408 1,715,690 88,465 =====================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on September 1, 2005, paid on October 31, 2005. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the fiscal years ended September 30, 2005 and September 30, 2004, was designated for purposes of the dividends paid deduction as follows:
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE 2005 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $19,017,826 $24,849,577 $24,701,084 $8,413,676 $7,899,143 $3,186,364 Distributions from net ordinary income ** -- -- 22,888 -- 3,793 -- Distributions from net long-term capital gains 5,071,799 3,165,147 2,301,988 1,620,092 976,638 -- ===================================================================================================================== INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE 2004 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $18,166,188 $23,680,573 $23,478,537 $8,168,680 $7,583,654 $3,284,113 Distributions from net ordinary income ** 184,151 13,244 19,927 -- 408,937 -- Distributions from net long-term capital gains 7,666,289 6,883,383 6,542,844 -- 584,683 -- =====================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 5. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (including net assets attributable to Preferred shares) of each Fund as follows: NEW YORK INVESTMENT QUALITY (NQN) NEW YORK SELECT QUALITY (NVN) AVERAGE DAILY NET ASSETS NEW YORK QUALITY INCOME (NUN) (INCLUDING NET ASSETS INSURED NEW YORK PREMIUM INCOME (NNF) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For the next $3 billion .3875 For net assets over $5 billion .3750 ================================================================================ 67 Notes to FINANCIAL STATEMENTS (continued) AVERAGE DAILY NET ASSETS INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) (INCLUDING NET ASSETS INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ATTRIBUTABLE TO PREFERRED SHARES) FUND-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $125 million .4500% For the next $125 million .4375 For the next $250 million .4250 For the next $500 million .4125 For the next $1 billion .4000 For net assets over $2 billion .3750 ================================================================================ The annual complex-level fee, payable monthly, which is additive to the fund-level fee, for all Nuveen sponsored funds in the U.S., is based on the aggregate amount of total fund assets managed as stated in the table below. As of September 30, 2005, the complex-level fee rate was .1898%. COMPLEX-LEVEL ASSETS(1) COMPLEX-LEVEL FEE RATE -------------------------------------------------------------------------------- For the first $55 billion .2000% For the next $1 billion .1800 For the next $1 billion .1600 For the next $3 billion .1425 For the next $3 billion .1325 For the next $3 billion .1250 For the next $5 billion .1200 For the next $5 billion .1175 For the next $15 billion .1150 For Managed Assets over $91 billion (2) .1400 ================================================================================ (1) The complex-level fee component of the management fee for the funds is calculated based upon the aggregate Managed Assets ("Managed Assets" means the average daily net assets of each fund including assets attributable to all types of leverage used by the Nuveen funds) of Nuveen-sponsored funds in the U.S. (2) With respect to the complex-wide Managed Assets over $91 billion, the fee rate or rates that will apply to such assets will be determined at a later date. In the unlikely event that complex-wide Managed Assets reach $91 billion prior to a determination of the complex-level fee rate or rates to be applied to Managed Assets in excess of $91 billion, the complex-level fee rate for such complex-wide Managed Assets shall be .1400% until such time as a different rate or rates is determined. The management fee compensates the Adviser for overall investment advisory and administrative services and general office facilities. The Funds pay no compensation directly to those of its Directors/Trustees who are affiliated with the Adviser or to their officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. 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 New York Dividend Advantage's (NKO) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING MARCH 31, MARCH 31, -------------------------------------------------------------------------------- 2002* .30% 2008 .25% 2003 .30 2009 .20 2004 .30 2010 .15 2005 .30 2011 .10 2006 .30 2012 .05 2007 .30 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured New York Dividend Advantage (NKO) for any portion of its fees and expenses beyond March 31, 2012. 68 For the first eight years of Insured New York Tax-Free Advantage's (NRK) operations, the Adviser has agreed to reimburse the Fund, as a percentage of average daily net assets (including net assets attributable to Preferred shares), for fees and expenses in the amounts and for the time periods set forth below: YEAR ENDING YEAR ENDING NOVEMBER 30, NOVEMBER 30, -------------------------------------------------------------------------------- 2002* .32% 2007 .32% 2003 .32 2008 .24 2004 .32 2009 .16 2005 .32 2010 .08 2006 .32 ================================================================================ * From the commencement of operations. The Adviser has not agreed to reimburse Insured New York Tax-Free Advantage (NRK) for any portion of its fees and expenses beyond November 30, 2010. 6. ANNOUNCEMENT REGARDING PARENT COMPANY OF ADVISER In early April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers"), which owned 79% of Nuveen, (A) completed a public offering of a substantial portion of its equity stake in Nuveen, (B) sold Nuveen $200 million of its Nuveen shares, (C) entered into an agreement with Nuveen to sell an additional $400 million of its Nuveen shares on a "forward" basis with payment for and settlement of these shares delayed for several months, and (D) entered into agreements with two unaffiliated investment banking firms to sell an amount equal to most or all of its remaining Nuveen shares for current payment but for future settlement. Transactions (C) and (D) above were settled in late July, which effectively reduced St. Paul Travelers' controlling stake in Nuveen and was deemed an "assignment" (as defined in the 1940 Act) of the investment management agreements between the Funds and the Adviser, which resulted in the automatic termination of each agreement under the 1940 Act. In anticipation of such deemed assignment, the Board of Directors/Trustees had approved new ongoing investment management agreements for each Fund and the submission of those agreements for approval by each respective Fund's shareholders, which shareholder approval was received prior to the settlement of transactions (C) and (D). The new ongoing management agreements took effect upon such settlement. 7. SUBSEQUENT EVENT -- DISTRIBUTIONS TO COMMON SHAREHOLDERS The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on November 1, 2005, to shareholders of record on October 15, 2005, as follows:
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY PREMIUM DIVIDEND TAX-FREE QUALITY QUALITY INCOME INCOME ADVANTAGE ADVANTAGE (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) --------------------------------------------------------------------------------------------------------------------- Dividend per share $.0695 $.0695 $.0665 $.0665 $.0680 $.0585 ===================================================================================================================== 69 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each period: Investment Operations Less Distributions --------------------------------------------------------------- ----------------------------------- Distributions Distributions from Net from From Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== NEW YORK INVESTMENT QUALITY (NQN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 $16.46 $ .95 $ (.19) $(.13) $(.01) $ .62 $(.94) $(.27) $(1.21) 2004 16.80 1.02 .12 (.05) (.03) 1.06 (.99) (.41) (1.40) 2003 16.92 1.07 (.07) (.07) (.01) .92 (.95) (.09) (1.04) 2002 15.67 1.09 1.20 (.10) (.01) 2.18 (.88) (.05) (.93) 2001 14.50 1.12 1.14 (.25) -- 2.01 (.84) -- (.84) NEW YORK SELECT QUALITY (NVN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 16.18 .97 (.09) (.14) (.01) .73 (.91) (.13) (1.04) 2004 16.28 1.01 .19 (.06) (.02) 1.12 (.95) (.27) (1.22) 2003 16.48 1.05 (.09) (.07) (.01) .88 (.94) (.14) (1.08) 2002 15.41 1.09 1.13 (.09) (.04) 2.09 (.89) (.13) (1.02) 2001 14.57 1.15 .81 (.25) -- 1.71 (.87) -- (.87) NEW YORK QUALITY INCOME (NUN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 15.90 .93 (.07) (.14) (.01) .71 (.88) (.09) (.97) 2004 16.09 .98 .09 (.06) (.02) .99 (.92) (.26) (1.18) 2003 16.37 1.01 (.11) (.06) (.02) .82 (.91) (.19) (1.10) 2002 15.20 1.07 1.10 (.11) -- 2.06 (.88) (.01) (.89) 2001 14.44 1.14 .72 (.25) -- 1.61 (.85) -- (.85) ==================================================================================================================================== Total Returns --------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ============================================================================================ NEW YORK INVESTMENT QUALITY (NQN) -------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 $ -- $15.87 $14.94 4.08% 3.90% 2004 -- 16.46 15.52 10.21 6.61 2003 -- 16.80 15.38 3.63 5.68 2002 -- 16.92 15.86 14.54 14.52 2001 -- 15.67 14.72 12.44 14.12 NEW YORK SELECT QUALITY (NVN) -------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 -- 15.87 14.74 4.93 4.64 2004 -- 16.18 15.04 6.96 7.27 2003 -- 16.28 15.22 4.57 5.63 2002 -- 16.48 15.62 15.35 14.27 2001 -- 15.41 14.50 10.43 11.99 NEW YORK QUALITY INCOME (NUN) -------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 -- 15.64 14.53 5.52 4.56 2004 -- 15.90 14.70 6.77 6.41 2003 -- 16.09 14.89 4.37 5.32 2002 -- 16.37 15.35 13.79 14.14 2001 -- 15.20 14.33 12.63 11.39 ============================================================================================ Ratios/Supplemental Data ---------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate ======================================================================================================================= NEW YORK INVESTMENT QUALITY (NQN) ----------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 $281,203 1.19% 5.88% 1.18% 5.89% 30% 2004 291,660 1.18 6.26 1.18 6.26 11 2003 297,312 1.19 6.42 1.18 6.42 19 2002 299,475 1.22 6.90 1.21 6.92 9 2001 277,380 1.27 7.29 1.24 7.31 21 NEW YORK SELECT QUALITY (NVN) ----------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 371,935 1.18 6.03 1.18 6.04 17 2004 379,117 1.19 6.31 1.19 6.32 8 2003 381,274 1.19 6.49 1.18 6.50 16 2002 386,011 1.23 7.06 1.22 7.07 15 2001 360,809 1.28 7.59 1.26 7.61 31 NEW YORK QUALITY INCOME (NUN) ----------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 376,697 1.19 5.86 1.18 5.86 17 2004 383,012 1.19 6.21 1.19 6.21 10 2003 387,439 1.20 6.31 1.19 6.32 14 2002 394,330 1.24 7.02 1.23 7.03 32 2001 365,974 1.26 7.62 1.24 7.63 13 ======================================================================================================================= Preferred Shares at End of Period ----------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share =================================================================== NEW YORK INVESTMENT QUALITY (NQN) ------------------------------------------------------------------- Year Ended 9/30: 2005 $144,000 $25,000 $73,820 2004 144,000 25,000 75,635 2003 144,000 25,000 76,617 2002 144,000 25,000 76,992 2001 144,000 25,000 73,156 NEW YORK SELECT QUALITY (NVN) ------------------------------------------------------------------- Year Ended 9/30: 2005 193,000 25,000 73,178 2004 193,000 25,000 74,108 2003 193,000 25,000 74,388 2002 193,000 25,000 75,001 2001 193,000 25,000 71,737 NEW YORK QUALITY INCOME (NUN) ------------------------------------------------------------------- Year Ended 9/30: 2005 197,000 25,000 72,804 2004 197,000 25,000 73,606 2003 197,000 25,000 74,167 2002 197,000 25,000 75,042 2001 197,000 25,000 71,443 ===================================================================
* Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. See accompanying notes to financial statements. 70-71 SPREAD Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- ----------------------------------- Distributions Distributions from Net from From Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ==================================================================================================================================== INSURED NEW YORK PREMIUM INCOME (NNF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 $16.14 $ .91 $ (.08) $(.12) $(.01) $ .70 $(.88) $(.18) $(1.06) 2004 16.07 .97 .08 (.06) -- .99 (.92) -- (.92) 2003 16.17 1.02 (.13) (.07) -- .82 (.92) -- (.92) 2002 15.26 1.06 .83 (.10) -- 1.79 (.88) -- (.88) 2001 14.24 1.08 .99 (.24) -- 1.83 (.81) -- (.81) INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 15.69 .98 .12 (.13) (.01) .96 (.86) (.12) (.98) 2004 15.44 .98 .35 (.06) (.01) 1.26 (.89) (.12) (1.01) 2003 15.82 1.00 (.32) (.08) (.01) .59 (.89) (.08) (.97) 2002(a) 14.33 .41 1.62 (.04) -- 1.99 (.37) -- (.37) INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2005 14.75 .90 .25 (.13) -- 1.02 (.77) -- (.77) 2004 14.42 .92 .35 (.07) -- 1.20 (.87) -- (.87) 2003(b) 14.33 .68 .34 (.05) -- .97 (.65) -- (.65) ==================================================================================================================================== Total Returns --------------------- Based Offering on Costs and Ending Common Preferred Common Based Share Share Share Ending on Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================================== INSURED NEW YORK PREMIUM INCOME (NNF) -------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 $ -- $15.78 $14.86 4.64% 4.50% 2004 -- 16.14 15.23 7.14 6.40 2003 -- 16.07 15.10 .56 5.26 2002 -- 16.17 15.94 15.88 12.21 2001 -- 15.26 14.57 15.32 13.11 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) -------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 -- 15.67 14.68 9.28 6.23 2004 -- 15.69 14.35 7.55 8.48 2003 -- 15.44 14.30 (.77) 4.01 2002(a) (.13) 15.82 15.39 5.16 13.18 INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) -------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 -- 15.00 14.02 8.65 7.05 2004 -- 14.75 13.64 5.83 8.58 2003(b) (.23) 14.42 13.71 (4.40) 5.29 ================================================================================================== Ratios/Supplemental Data ---------------------------------------------------------------------------------------------- Before Credit/Reimbursement After Credit/Reimbursement** ----------------------------- ------------------------------ Ratio of Net Ratio of Net Ratio of Investment Ratio of Investment Ending Expenses Income to Expenses Income to Net to Average Average to Average Average Assets Net Assets Net Assets Net Assets Net Assets Applicable Applicable Applicable Applicable Applicable Portfolio to Common to Common to Common to Common to Common Turnover Shares (000) Shares++ Shares++ Shares++ Shares++ Rate =============================================================================================================================== INSURED NEW YORK PREMIUM INCOME (NNF) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 $131,420 1.20% 5.71% 1.20% 5.71% 22% 2004 134,434 1.21 6.11 1.20 6.11 16 2003 133,735 1.21 6.38 1.21 6.38 21 2002 134,574 1.25 6.92 1.24 6.92 17 2001 126,648 1.29 7.24 1.28 7.25 8 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 124,669 1.18 5.75 .72 6.21 12 2004 124,860 1.20 5.91 .74 6.37 9 2003 122,901 1.20 6.07 .74 6.53 15 2002(a) 125,893 1.15* 5.07* .65* 5.57* 29 INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2005 52,682 1.25 5.53 .76 6.01 7 2004 51,818 1.26 5.85 .76 6.35 16 2003(b) 50,645 1.19* 5.10* .70* 5.59* 5 =============================================================================================================================== Preferred Shares at End of Period ----------------------------------------- Aggregate Liquidation Amount and Market Asset Outstanding Value Coverage (000) Per Share Per Share ======================================================================== INSURED NEW YORK PREMIUM INCOME (NNF) ------------------------------------------------------------------------ Year Ended 9/30: 2005 $65,000 $25,000 $75,546 2004 65,000 25,000 76,705 2003 65,000 25,000 76,436 2002 65,000 25,000 76,759 2001 65,000 25,000 73,711 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------ Year Ended 9/30: 2005 61,000 25,000 76,094 2004 61,000 25,000 76,172 2003 61,000 25,000 75,369 2002(a) 61,000 25,000 76,596 INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ------------------------------------------------------------------------ Year Ended 9/30: 2005 27,000 25,000 73,780 2004 27,000 25,000 72,979 2003(b) 27,000 25,000 71,894 ========================================================================
* Annualized. ** Total Investment Return on Market Value is the combination of changes in the market price per share and the effect of reinvested dividend income and reinvested capital gains distributions, if any, at the average price paid per share at the time of reinvestment. Total Return on Common Share Net Asset Value is the combination of changes in Common Share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) For the period March 25, 2002 (commencement of operations) through September 30, 2002. (b) For the period November 21, 2002 (commencement of operations) through September 30, 2003. See accompanying notes to financial statements. 72-73 SPREAD Board Members AND OFFICERS The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at nine. None of the board members who are not "interested" persons of the Funds has ever been a director or employee of, or consultant to, Nuveen or its affiliates. The names and business addresses of the board members and officers of the Funds, their principal occupations and other affiliations during the past five years, the number of portfolios each oversees and other directorships they hold are set forth below.
NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Timothy R. Schwertfeger(1) Chairman of 1994 Chairman (since 1996) and Director of Nuveen Investments, 155 3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and 333 W. Wacker Drive and Trustee Nuveen Institutional Advisory Corp.(3); Director (since 1996) Chicago, IL 60606 of Institutional Capital Corporation; Chairman and Director (since 1997) of Nuveen Asset Management; Chairman and Director of Rittenhouse Asset Management, Inc. (since 1999); Chairman of Nuveen Investments Advisers Inc. (since 2002). BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: ------------------------------------------------------------------------------------------------------------------------------------ Robert P. Bremner Board member 1997 Private Investor and Management Consultant. 155 8/22/40 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 155 7/29/34 Northern Trust Company; Director (since 2002) Community 333 W. Wacker Drive Advisory Board for Highland Park and Highwood, United Chicago, IL 60606 Way of the North Shore. ------------------------------------------------------------------------------------------------------------------------------------ Jack B. Evans Board member 1999 President, The Hall-Perrine Foundation, a private philanthropic 155 10/22/48 corporation (since 1996); Director and Vice Chairman, United 333 W. Wacker Drive Fire Group, a publicly held company; Adjunct Faculty Member, Chicago, IL 60606 University of Iowa; Director, Gazette Companies; Life Trustee of Coe College; Director, Iowa College Foundation; formerly, Director, Alliant Energy; formerly, Director, Federal Reserve Bank of Chicago; formerly, President and Chief Operating Officer, SCI Financial Group, Inc., a regional financial services firm. ------------------------------------------------------------------------------------------------------------------------------------ William C. Hunter Board member 2004 Dean and Distinguished Professor of Finance, School of 155 3/6/48 Business at the University of Connecticut (since 2002); 333 W. Wacker Drive previously, Senior Vice President and Director of Research Chicago, IL 60606 at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation. ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 153 10/28/42 Management, President and CEO, Banc One Investment 333 W. Wacker Drive Advisors Corporation, and President, One Group Mutual Chicago, IL 60606 Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Board of Regents, Luther College; currently a member of the American and Wisconsin Bar Associations. 74 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Chairman, formerly, Senior Partner and Chief Operating 155 9/24/44 Officer (retired, December 2004), Miller-Valentine Partners 333 W. Wacker Drive Ltd., a real estate investment company; formerly, Vice Chicago, IL 60606 President, Miller-Valentine Realty, a construction company; Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director and Immediate Past Chair, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 155 12/29/47 Foundation (since 1994); prior thereto, Executive Director, 333 W. Wacker Drive Great Lakes Protection Fund (from 1990 to 1994). Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Eugene S. Sunshine Board member 2005 Senior Vice President for Business and Finance, 155 1/22/50 Northwestern University (since 1997); Director (since 2003), 333 W. Wacker Drive Chicago Board Options Exchange; Director (since 2003), Chicago, IL 60606 National Mentor Holdings, a privately-held, national provider of home and community-based services; Chairman (since 1997), Board of Directors, Rubicon, a pure captive insurance company owned by Northwestern University; Director (since 1997), Evanston Chamber of Commerce and Evanston Inventure, a business development organization. NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUND: ------------------------------------------------------------------------------------------------------------------------------------ Gifford R. Zimmerman Chief 1988 Managing Director (since 2002), Assistant Secretary and 155 9/9/56 Administrative Associate General Counsel, formerly, Vice President and 333 W. Wacker Drive Officer Assistant General Counsel, of Nuveen Investments, LLC; Chicago, IL 60606 Managing Director (2002-2004), General Counsel (1998-2004) and Assistant Secretary, formerly, Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Managing Director (since 2002) and Assistant Secretary and Associate General Counsel, formerly, Vice President (since 1997), of Nuveen Asset Management; Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc.; Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002); Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. 75 Board Members AND OFFICERS (CONTINUED) NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ Julia L. Antonatos Vice President 2004 Managing Director (since 2005), formerly Vice President 155 9/22/63 (since 2002); formerly, Assistant Vice President (since 2000) 333 W. Wacker Drive of Nuveen Investments, LLC; Chartered Financial Analyst. Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Michael T. Atkinson Vice President 2000 Vice President (since 2002), formerly, Assistant Vice 155 2/3/66 and Assistant President (since 2000) of Nuveen Investments, LLC. 333 W. Wacker Drive Secretary Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Peter H. D'Arrigo Vice President 1999 Vice President of Nuveen Investments, LLC (since 1999); Vice 155 11/28/67 and Treasurer President and Treasurer (since 1999) of Nuveen Investments, 333 W. Wacker Drive Inc.; Vice President and Treasurer (1999-2004) of Nuveen Chicago, IL 60606 Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Vice President and Treasurer of Nuveen Asset Management (since 2002) and of Nuveen Investments Advisers Inc. (since 2002); Assistant Treasurer of NWQ Investment Management Company, LLC. (since 2002); Vice President and Treasurer of Nuveen Rittenhouse Asset Management, Inc. (since 2003); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 155 9/24/64 and Secretary Assistant General Counsel (since 1998) formerly, Assistant 333 W. Wacker Drive Vice President (since 1998) of Nuveen Investments, LLC; Chicago, IL 60606 Vice President (2002-2004) and Assistant Secretary (1998-2004) formerly, Assistant Vice President of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Vice President and Assistant Secretary (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ Lorna C. Ferguson Vice President 1998 Managing Director (since 2004), formerly, Vice President of 155 10/24/45 Nuveen Investments, LLC, Managing Director (2004) formerly, 333 W. Wacker Drive Vice President (1998-2004) of Nuveen Advisory Corp. and Chicago, IL 60606 Nuveen Institutional Advisory Corp.(3); Managing Director (since 2005) of Nuveen Asset Management. ------------------------------------------------------------------------------------------------------------------------------------ William M. Fitzgerald Vice President 1995 Managing Director (since 2002), formerly, Vice President of 155 3/2/64 Nuveen Investments; Managing Director (1997-2004) of 333 W. Wacker Drive Nuveen Advisory Corp. and Nuveen Institutional Advisory Chicago, IL 60606 Corp.(3); Managing Director of Nuveen Asset Management (since 2001); Vice President of Nuveen Investments Advisers Inc. (since 2002); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 155 5/31/54 and Controller of Nuveen Investments, LLC; formerly, Vice President and 333 W. Wacker Drive Funds Controller (1998-2004) of Nuveen Investments, Inc.; Chicago, IL 60606 Certified Public Accountant. ------------------------------------------------------------------------------------------------------------------------------------ James D. Grassi Vice President 2004 Vice President and Deputy Director of Compliance (since 2004) 155 4/13/56 and Chief of Nuveen Investments, LLC, Nuveen Investments Advisers Inc., 333 W. Wacker Drive Compliance Nuveen Asset Management and Rittenhouse Asset Management, Chicago, IL 60606 Officer Inc.; previously, Vice President and Deputy Director of Compliance (2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); formerly, Senior Attorney (1994-2004), The Northern Trust Company. 76 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR PRINCIPAL OCCUPATION(S) OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(4) DURING PAST 5 YEARS OFFICER ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 155 3/22/63 LLC; Certified Public Accountant. 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Tina M. Lazar Vice President 2002 Vice President of Nuveen Investments, LLC (since 1999). 155 8/27/61 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 155 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; Vice President and 333 W. Wacker Drive Secretary Assistant Secretary of Nuveen Advisory Corp. and Nuveen Chicago, IL 60606 Institutional Advisory Corp.(3); Vice President (since 2005) and Assistant Secretary of Nuveen Investments, Inc.; Vice President (since 2005) and Assistant Secretary (since 1997) of Nuveen Asset Management; Vice President (since 2000), Assistant Secretary and Assistant General Counsel (since 1998) of Rittenhouse Asset Management, Inc.; Vice President and Assistant Secretary of Nuveen Investments Advisers Inc. (since 2002); Assistant Secretary of NWQ Investment Management Company, LLC (since 2002).
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, because he is an officer and board member of the Adviser. (2) Board members serve an indefinite term until his/her successor is elected. The year first elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 77 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS At a meeting held on May 10-12, 2005, the Board of Trustees of the Funds, including the independent Trustees, unanimously approved the Investment Management Agreement between each Fund and NAM. THE APPROVAL PROCESS To assist the Board in its evaluation of an advisory contract with NAM, the independent Trustees received a report in adequate time in advance of their meeting which outlined, among other things, the services provided by NAM; the organization of NAM, including the responsibilities of various departments and key personnel; the Fund's past performance as well as the Fund's performance compared to funds of similar investment objectives compiled by an independent third party (a "Peer Group") and if available, with recognized or, in certain cases, customized benchmarks; the profitability of NAM and certain industry profitability analyses for advisers to unaffiliated investment companies; the expenses of NAM in providing the various services; the management fees of NAM, including comparisons of such fees with the management fees of comparable funds in its Peer Group as well as comparisons of NAM's management fees with the fees NAM assesses to other types of investment products or accounts, if any; the soft dollar practices of NAM; and the expenses of each Fund, including comparisons of the Fund's expense ratios (after any fee waivers) with the expense ratios of its Peer Group. This information supplements that received by the Board throughout the year regarding Fund performance, expense ratios, portfolio composition, trade execution and sales activity. In addition to the foregoing materials, independent legal counsel to the independent Trustees provided, in advance of the meeting, a legal memorandum outlining, among other things, the duties of the Trustees under the 1940 Act as well as the general principles of relevant state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; an adviser's fiduciary duty with respect to advisory agreements and compensation; the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and factors to be considered by the board in voting on advisory agreements. At the Board meeting, NAM made a presentation to and responded to questions from the Board. After the presentations and after reviewing the written materials, the independent Trustees met privately with their legal counsel to review the Board's duties in reviewing advisory contracts and consider the renewal of the advisory contracts. It is with this background that the Trustees considered each Investment Management Agreement with NAM. The independent Trustees, in consultation with independent counsel, reviewed the factors set out in judicial decisions and SEC directives relating to the renewal of advisory contracts. As outlined in more detail below, the Trustees considered all factors they believed relevant with respect to each Fund, including the following: (a) the nature, extent and quality of the services to be provided by NAM; (b) the investment performance of the Fund and NAM; (c) the costs of the services to be provided and profits to be realized by NAM and its affiliates from the relationship with the Fund; (d) the extent to which economies of scale would be realized as the Fund grows; and (e) whether fee levels reflect these economies of scale for the benefit of Fund investors. A. NATURE, EXTENT AND QUALITY OF SERVICES In evaluating the nature, extent and quality of NAM's services, the Trustees reviewed information concerning the types of services that NAM or its affiliates provide and are expected to provide to the Nuveen Funds; narrative and statistical information concerning the Fund's performance record and how such performance compares to the Fund's Peer Group and, if available, recognized benchmarks or, in certain cases, customized benchmarks (as described in further detail in Section B below); information describing NAM's organization and its various departments, the experience and responsibilities of key personnel, and available resources. In the discussion of key personnel, the Trustees received materials regarding the changes or additions in personnel of NAM. The Trustees further noted the willingness of the personnel of NAM to engage in open, candid discussions with the Board. The Trustees further considered the quality of NAM's investment process in making portfolio management decisions, including any refinements or improvements to the portfolio management processes, enhancements to technology and systems that are available to portfolio managers, and any additions of new personnel which may strengthen or expand the research and investment capabilities of NAM. In their review of advisory contracts for the fixed income funds, such as the Funds, the Trustees also noted that Nuveen won the Lipper Award for Best Fund Family: Fixed Income-Large Asset Class, for 2004. Given the Trustees' experience with the Funds, other Nuveen funds and NAM, the Trustees noted that they were familiar with and continue to have a good understanding of the organization, operations and personnel of NAM. In addition to advisory services, the independent Trustees considered the quality of the administrative or non-advisory services provided. In this regard, NAM provides the Funds with such administrative and other services (exclusive of, and in addition to, any such services provided by others for the Funds) and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, NAM and its affiliates provide each Fund with a wide range of services, including: 78 preparing shareholder reports; providing daily accounting; providing quarterly financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal support (such as helping to prepare registration statements, amendments thereto and proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). In addition, in evaluating the administrative services, the Trustees considered, in particular, NAM's policies and procedures for assuring compliance with applicable laws and regulations in light of the new SEC regulations governing compliance. The Trustees noted NAM's focus on compliance and its compliance systems. In their review, the Trustees considered, among other things, the additions of experienced personnel to NAM's compliance group and modifications and other enhancements to NAM's computer systems. In addition to the foregoing, the Trustees also noted that NAM outsources certain services that cannot be replicated without significant costs or at the same level of expertise. Such outsourcing has been a beneficial and efficient use of resources by keeping expenses low while obtaining quality services. In addition to the above, in reviewing the variety of additional services that NAM or its affiliates must provide to closed-end funds, such as the Funds, the independent Trustees determined that Nuveen's commitment to supporting the secondary market for the common shares of its closed-end funds is particularly noteworthy. In this regard, the Trustees noted Nuveen's efforts to sponsor numerous forums for analysts and specialists regarding the various Nuveen closed-end funds, its creation of a new senior position dedicated to providing secondary market support services and enhancing communications with investors and analysts, and its advertising and media relations efforts designed to raise investor and analyst awareness of the closed-end funds. With respect to services provided to municipal funds, such as the Funds, the Trustees also noted, among other things, the enhancements NAM implemented to its municipal portfolio management processes (e.g., the increased use of benchmarks to guide and assess the performance of its portfolio managers); the implementation of a risk management program; and the various initiatives being undertaken to enhance or modify NAM's computer systems as necessary to support the innovations of the municipal investment team (such as, the ability to assess certain historical data in order to create customized benchmarks, perform attribution analysis and facilitate the use of derivatives as hedging instruments). With respect to certain of the Nuveen funds with a less seasoned portfolio, the Trustees also noted the hedging program implemented for such funds and the team responsible for developing, implementing and monitoring the hedging procedures. The hedging program was designed to help maintain the applicable fund's duration within certain benchmarks. Based on their review, the Trustees found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the Funds under the Investment Management Agreements were of a high level and were quite satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUND AND ADVISER As previously noted, the Board received a myriad of performance information regarding each Fund and its Peer Group, if available. Among other things, the Board received materials reflecting a Fund's historic performance, the Fund's performance compared to its Peer Group and, if available, its performance compared to recognized and, in certain cases, customized benchmarks. Further, in evaluating the performance information, in certain limited instances, the Trustees noted that the closest Peer Group for a Fund still would not adequately reflect such Fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Peer Group. For state municipal funds, such as the Funds, the performance data included, among other things, the respective Fund's performance relative to its peers. More specifically, a Fund's one-, three- and five-year total returns (as available) for the periods ending December 31, 2004 were evaluated relative to the unaffiliated funds in its respective Peer Group (including the returns of individual peers as well as the Peer Group average) as well as additional performance information with respect to all the funds in the Peer Group, subject to the following. Certain state municipal Nuveen funds do not have a corresponding Peer Group in which case their performance is measured against a state-specific municipal index compiled by an independent third party. Such indices measure bond performance rather than fund performance. The closed-end funds that utilize such indices are from Connecticut, Georgia, Maryland, Missouri, North Carolina, Texas and Virginia. Based on their review, the Trustees determined that each Fund's absolute and relative investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES In evaluating the management fees and expenses that a Fund is expected to bear, the Trustees considered the Fund's current management fee structure and the Fund's expected expense ratios in absolute terms as well as compared with the fees and expense ratios of the unaffiliated funds in its Peer Group. The Trustees reviewed the financial information of NAM, including its respective revenues, expenses and profitability. In reviewing fees, the Trustees, among other things, reviewed comparisons of the Fund's gross management fees (fees after fund-level and complex-wide level breakpoints but before reimbursements and fee waivers), net management fees (after breakpoints and reimbursements and fee waivers) and total expense ratios (before and after waivers) with those of the unaffiliated funds in the Peer Group and peer averages. In this regard, the Trustees noted that the relative ranking of the Nuveen funds on fees and expenses was aided by the significant level of fee reductions provided by the fund-level and complex-wide breakpoint schedules, and the fee waivers and reimbursements provided by Nuveen for certain funds launched since 1999. The complex-wide breakpoint schedule was instituted in 2004 and is described in further detail below in Section D entitled "Economies of Scale and Whether Fee Levels Reflect these Economies of Scale." In their review of the fee and expense information provided, including, in particular, the expense ratios of the unaffiliated funds in the respective Peer Group, the Trustees determined that each Fund's net total expense ratio was within an acceptable range compared to such peers. 79 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS The Trustees further compared the fees of NAM to the fees NAM assessed for other types of clients investing in municipal funds (such as municipal managed accounts). With respect to such separately managed accounts, the advisory fees for such accounts are generally lower than those charged to the comparable Fund. The Trustees noted, however, the additional services that are provided and the costs incurred by Nuveen in managing and operating registered investment companies, such as the Funds, compared to individually managed separate accounts. For instance, as described above, NAM and its affiliates provide numerous services to the Funds including, but not limited to, preparing shareholder reports; providing daily accounting; preparing quarterly financial statements; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal support; and administering all other aspects of the Fund's operations. Further, the Trustees noted the increased compliance requirements for funds in light of new SEC regulations and other legislation. These services are generally not required to the same extent, if at all, for separate accounts. In addition to the differences in services, the Trustees also considered, among other things, the differences in product distribution, investment policies, investor profiles and account sizes. Accordingly, the Trustees believe that the nature and number of services provided to operate a Fund merit the higher fees than those to separate managed accounts. 3. PROFITABILITY OF ADVISER In conjunction with its review of fees, the Trustees also considered NAM's profitability. The Trustees reviewed NAM's revenues, expenses and profitability margins (on both a pre-tax and after-tax basis). In reviewing profitability, the Trustees recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. Accordingly, the Trustees reviewed NAM's assumptions and methodology of allocating expenses. In this regard, the methods of allocation used appeared reasonable but the Board noted the inherent limitations in allocating costs among various advisory products. The Trustees also recognized that individual fund or product line profitability of other advisers is generally not publicly available. Further, profitability may be affected by numerous factors including the types of funds managed, expense allocations, business mix, etc. and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Trustees considered NAM's profit margin compared to the profitability of various publicly-traded investment management companies and/or investment management companies that publicly disclose some or all of their financial results compiled by three independent third-party service providers. The Trustees also reviewed the revenues, expenses and profit margins of various unaffiliated advisory firms with similar amounts of assets under management for the last year prepared by NAM. Based on their review, the Trustees were satisfied that NAM's level of profitability from its relationship with each Fund was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to NAM as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates are expected to receive that are directly attributable to their management of the Funds, if any. See Section E below for additional information. Based on their review of the overall fee arrangements of the applicable Fund, the Trustees determined that the advisory fees and expenses of the respective Fund were reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE In reviewing the compensation, the Trustees have long understood the benefits of economies of scale as the assets of a fund grow and have sought to ensure that shareholders share in these benefits. One method for shareholders to share in economies of scale is to include breakpoints in the advisory fee schedules that reduce fees as fund assets grow. Accordingly, the Trustees received and reviewed the schedules of advisory fees for each Fund, including fund-level breakpoints thereto. In addition, after lengthy negotiations with management, the Board in May 2004 approved a complex-wide fee arrangement pursuant to which fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. The complex-wide fee arrangement was introduced on August 1, 2004 and the Trustees reviewed data regarding the reductions of fees for the Funds for the period of August 1, 2004 to December 31, 2004. In evaluating the complex-wide fee arrangement, the Trustees considered, among other things, the historic and expected fee savings to shareholders as assets grow, the amount of fee reductions at various asset levels, and that the arrangement would extend to all Funds in the Nuveen complex. The Trustees also considered the impact, if any, the complex-wide fee arrangement may have on the level of services provided. Based on their review, the Trustees concluded that the breakpoint schedule and complex-wide fee arrangement currently was acceptable and desirable in providing benefits from economies of scale to shareholders. 80 E. INDIRECT BENEFITS In evaluating fees, the Trustees also considered any indirect benefits or profits NAM or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Trustees considered any benefits from soft dollar arrangements. The Trustees noted that although NAM manages a large amount of assets, it has very little, if any, brokerage to allocate. This is due to the fact that NAM typically manages the portfolios of the municipal funds in the Nuveen complex and municipal bonds generally trade on a principal basis. Accordingly, NAM does not currently have any soft dollar arrangements and does not pay excess brokerage commissions (or spreads on principal transactions) in order to receive research services. In addition to soft dollar arrangements, the Trustees also considered any other revenues, if any, received by NAM or its affiliates. With respect to Funds with outstanding preferred shares and new Funds, the Trustees considered revenues received by Nuveen for serving as agent for broker-dealers at its preferred trading desk and for acting as co-manager in the initial public offering of new closed-end exchange-traded funds. F. OTHER CONSIDERATIONS Nuveen, until recently, was a majority-owned subsidiary of St. Paul Travelers Companies, Inc. ("St. Paul"). As noted, St. Paul earlier this year announced its intention to divest its equity stake in Nuveen. Nuveen is the parent of NAM. Pursuant to a series of transactions, St. Paul had begun to reduce its interest in Nuveen which would ultimately result in a change of control of Nuveen and therefore NAM. As mandated by the 1940 Act, such a change in control would result in an assignment of the advisory agreement with NAM and the automatic termination of such agreement. Accordingly, the Board also considered for each Fund the approval of a New Investment Management Agreement with each Fund in light of, and which would take effect upon, the anticipated change of control. More specifically, the Board considered for each Fund a New Investment Management Agreement on substantially identical terms to the existing Investment Management Agreement, to take effect after the change of control has occurred and the contract has been approved by Fund shareholders. In its review, the Board considered whether the various transactions necessary to divest St. Paul's interest will have an impact on the various factors they considered in approving NAM, such as the scope and quality of services to be provided following the change of control. In reviewing the St. Paul transactions, the Board considered, among other things, the impact, if any, on the operations and organizational structure of NAM; the possible benefits and costs of the transactions to the respective Fund; the potential implications of any arrangements used by Nuveen to finance certain of the transactions; the ability of NAM to perform its duties after the transactions; whether a Fund's fee structure or expense ratio would change; any changes to the current practices of the respective Fund; any changes to the terms of the advisory agreement; and any anticipated changes to the operations of NAM. Based on its review, the Board determined that St. Paul's divestiture would not affect the nature and quality of services provided by NAM, the terms of the Investment Management Agreement, including the fees thereunder, and would not materially affect the organization or operations of NAM. Accordingly, the Board determined that their analysis of the various factors regarding their approval of NAM would continue to apply after the change of control. G. APPROVAL The Trustees did not identify any single factor discussed previously as all-important or controlling. The Trustees, including a majority of independent Trustees, concluded that the terms of the Investment Management Agreements were fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund, that the renewal of the NAM Investment Management Agreements should be approved, and that the new, post-change of control NAM Investment Management Agreements be approved and recommended to shareholders. 81 Reinvest Automatically EASILY AND CONVENIENTLY Sidebar text: NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN EXCHANGE-TRADED CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Exchange-Traded Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price per share may exceed the market price at the time of valuation, resulting in the acquisition of fewer shares than if the dividend or distribution had been paid in shares issued by the Fund. A pro rata portion of any applicable brokerage commissions on open market purchases will be paid by Plan participants. These commissions usually will be lower than those charged on individual transactions. FLEXIBLE You may change your distribution option or withdraw from the Plan at any time, should your needs or situation change. Should you withdraw, you can receive a certificate for all whole shares credited to your reinvestment account and cash payment for fractional shares, or cash payment for all reinvestment account shares, less brokerage commissions and a $2.50 service fee. You can reinvest whether your shares are registered in your name, or in the name of a brokerage firm, bank, or other nominee. Ask your investment advisor if his or her firm will participate on your behalf. Participants whose shares are registered in the name of one firm may not be able to transfer the shares to another firm and continue to participate in the Plan. The Fund reserves the right to amend or terminate the Plan at any time. Although the Fund reserves the right to amend the Plan to include a service charge payable by the participants, there is no direct service charge to participants in the Plan at this time. CALL TODAY TO START REINVESTING DIVIDENDS AND/OR DISTRIBUTIONS For more information on the Nuveen Automatic Reinvestment Plan or to enroll in or withdraw from the Plan, speak with your financial advisor or call us at (800) 257-8787. 82 Other Useful INFORMATION In April, 2005, The St. Paul Travelers Companies, Inc. ("St. Paul Travelers") sold the majority of its controlling equity interest in Nuveen Investments, Inc. ("Nuveen") to the general public. Nuveen is the parent of Nuveen Asset Management ("NAM"), which is each Fund's investment manager. This sale was deemed to be an "assignment" of the investment management agreement between each Fund and NAM and, if applicable, of the sub-advisory agreement between NAM and the Fund's sub-adviser. As required by law, the shareholders of each Fund were asked to approve a new investment management agreement and, if applicable, a new subadvisory agreement that reflected this change in ownership. The shareholders of each Fund voted this approval at a Shareholders' Meeting on July 26, 2005. There were no changes to the investment objectives or management of any Fund as a result of these actions. QUARTERLY PORTFOLIO OF INVESTMENTS AND PROXY VOTING INFORMATION Each Fund's (i) quarterly portfolio of investments, (ii) information regarding how the Funds voted proxies relating to portfolio securities held during the 12-month period ended June 30, 2005, and (iii) a description of the policies and procedures that the Funds used to determine how to vote proxies relating to portfolio securities are available without charge, upon request, by calling Nuveen Investments toll-free at (800) 257-8787 or on Nuveen's website at www.nuveen.com. You may also obtain this and other Fund information directly from the Securities and Exchange Commission ("SEC"). The SEC may charge a copying fee for this information. Visit the SEC on-line at http://www.sec.gov or in person at the SEC's Public Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours and operation. You may also request Fund information by sending an e-mail request to publicinfo@sec.gov or by writing to the SEC's Public References Section at 450 Fifth Street NW, Washington, D.C. 20549. CEO CERTIFICATION DISCLOSURE Each Fund's Chief Executive Officer has submitted to the New York Stock Exchange the annual CEO certification as required by Section 303A.12(a) of the NYSE Listed Company Manual. Each Fund has filed with the Securities and Exchange Commission the certification of its Chief Executive Officer and Chief Financial Officer required by Section 302 of the Sarbanes-Oxley Act. GLOSSARY OF TERMS USED IN THIS REPORT AVERAGE ANNUAL TOTAL RETURN: This is a commonly used method to express an investment's performance over a particular, usually multi-year time period. It expresses the return that would have been necessary each year to equal the investment's actual cumulative performance (including change in NAV or market price and reinvested dividends and capital gains distributions, if any) over the time period being considered. AVERAGE EFFECTIVE MATURITY: The average of all the maturities of the bonds in a Fund's portfolio, computed by weighting each maturity date (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions. LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. MODIFIED 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. NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Lawrence H. Brown Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Eugene S. Sunshine FUND MANAGER Nuveen Asset Management 333 West Wacker Drive Chicago, IL 60606 CUSTODIAN State Street Bank & Trust Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL Each Fund intends to repurchase shares of its own common or preferred stock in the future at such times and in such amounts as is deemed advisable. No shares were repurchased during the period covered by this report. Any future repurchases will be reported to shareholders in the next annual or semiannual report. 83 Nuveen Investments: SERVING Investors For GENERATIONS Photo of: 2 women looking at a photo album. Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing more than $125 billion in assets, Nuveen Investments offers access to a number of different asset classes and investing solutions through a variety of products. Nuveen Investments markets its capabilities under four distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; and Symphony, a leading institutional manager of market-neutral alternative investment portfolios. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. o Share prices o Fund details Learn more o Daily financial news about Nuveen Funds at o Investor education WWW.NUVEEN.COM/ETF o Interactive planning tools Logo: NUVEEN Investments EAN-B-0905D ITEM 2. CODE OF ETHICS. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There were no amendments to or waivers from the Code during the period covered by this report. The registrant has posted the code of ethics on its website at www.nuveen.com/etf. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then click on Code of Conduct.) ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Directors or Trustees determined that the registrant has at least one "audit committee financial expert" (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. The registrant's audit committee financial expert is Jack B. Evans, Chairman of the Audit Committee, who is "independent" for purposes of Item 3 of Form N-CSR. Mr. Evans was formerly President and Chief Operating Officer of SCI Financial Group, Inc., a full service registered broker-dealer and registered investment adviser ("SCI"). As part of his role as President and Chief Operating Officer, Mr. Evans actively supervised the Chief Financial Officer (the "CFO") and actively supervised the CFO's preparation of financial statements and other filings with various regulatory authorities. In such capacity, Mr. Evans was actively involved in the preparation of SCI's financial statements and the resolution of issues raised in connection therewith. Mr. Evans has also served on the audit committee of various reporting companies. At such companies, Mr. Evans was involved in the oversight of audits, audit plans, and the preparation of financial statements. Mr. Evans also formerly chaired the audit committee of the Federal Reserve Bank of Chicago. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Nuveen Insured New York Dividend Advantage Municipal Fund The following tables show the amount of fees that Ernst & Young LLP, the Fund's auditor, billed to the Fund during the Fund's last two full fiscal years. For engagements with Ernst & Young LLP entered into on or after May 6, 2003, the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND BILLED TO FUND BILLED TO FUND BILLED TO FUND ---------------------------------------------------------------------------------------------------------------------------------- September 30, 2005 $ 10,000 $ 0 $ 608 $ 2,750 ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------------------------- September 30, 2004 $ 9,504 $ 0 $ 1,399 $ 2,550 (1) ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------------------
The above "All Other Fees" are fees paid to audit firms to perform agreed upon procedures required by the rating agencies to rate fund preferred shares. The above "Tax Fees" were billed for professional services for tax advice, tax compliance, and tax planning. (1) The "All Other Fees Billed to Fund" for September 30, 2004 have been revised. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS ---------------------------------------------------------------------------------------------------------------- September 30, 2005 $ 0 $ 282,575 $ 0 ---------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------- September 30, 2004 $ 0 $ 0 $ 0 ---------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------
The above "Tax Fees" are primarily fees billed to the Adviser for Fund tax return preparation. NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. For engagements entered into on or after May 6, 2003, the Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the de minimis exception described above). The Audit Committee requested and received information from Ernst & Young LLP about any non-audit services that Ernst & Young LLP rendered during the Fund's last fiscal year to the Adviser and any Affiliated Fund Service Provider. The Committee considered this information in evaluating Ernst & Young LLP's independence.
FISCAL YEAR ENDED TOTAL NON-AUDIT FEES BILLED TO ADVISER AND AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES PROVIDERS (ENGAGEMENTS BILLED TO ADVISER AND RELATED DIRECTLY TO THE AFFILIATED FUND SERVICE TOTAL NON-AUDIT FEES OPERATIONS AND FINANCIAL PROVIDERS (ALL OTHER BILLED TO FUND REPORTING OF THE FUND) ENGAGEMENTS) TOTAL ------------------------------------------------------------------------------------------------------------------------------- September 30, 2005 $ 3,358 $ 282,575 $ 0 $ 285,933 September 30, 2004 (1) $ 3,949 $ 0 $ 0 $ 3,949
The above "Non-Audit Fees billed to Adviser" for 2005 include "Tax-Fees" billed to Adviser in the amount of $282,575 from previous table. (1) The "All Other Fees Billed to Fund" for September 30, 2004 have been revised. Audit Committee Pre-Approval Policies and Procedures. Generally, the audit committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the audit committee if they are expected to be for amounts greater than $10,000; (ii) reported to the audit committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the audit committee at the next audit committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board of Directors or Trustees has a separately designated audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (15 U.S.C. 78c(a)(58)(A)). The members of the audit committee are Robert P. Bremner, Lawrence H. Brown, Jack B. Evans, William J. Schneider and Eugene S. Sunshine. ITEM 6. SCHEDULE OF INVESTMENTS. See Portfolio of Investments in Item 1. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. In the rare event that a municipal issuer held by the Fund were to issue a proxy or that the Fund were to receive a proxy issued by a cash management security, the Adviser would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the Fund's Board of Directors or Trustees or its representative. In the case of a conflict of interest, the proxy would be submitted to the applicable Fund's Board to determine how the proxy should be voted. A member of the Adviser's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 204-2(c)(2) under the Investment Advisers Act of 1940 (17 CFR 275.204-2(c)(2)), reports were filed with the SEC on Form N-PX, and the results were provided to the Board of Directors or Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable at this time. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant's Board implemented after the registrant last provided disclosure in response to this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (the "Exchange Act") (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not applicable because the code is posted on registrant's website at www.nuveen.com/etf and there were no amendments during the period covered by this report. (To view the code, click on the Investor Resources drop down menu box, click on Fund Governance and then Code of Conduct.) (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) in the exact form set forth below: Ex-99.CERT Attached hereto. (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. (b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)); Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed "filed" for purposes of Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. Ex-99.906 CERT attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Nuveen Insured New York Dividend Advantage Municipal Fund ----------------------------------------------------------- By (Signature and Title)* /s/ Jessica R. Droeger ---------------------------------------------- Jessica R. Droeger Vice President and Secretary Date: December 8, 2005 ------------------------------------------------------------------- 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: December 8, 2005 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: December 8, 2005 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.