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, 2006 ------------------ 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, 2006 Nuveen Investments Municipal 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: Woman and man 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: Woman Photo of: Man and child 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 twelve-month period covered by this report your Fund continued to provide you with attractive monthly tax-free income. For more details about the management strategy and performance of your Fund, please read the Portfolio Manager's Comments, the Dividend and Share Price Information, and the Performance Overview sections of this report. For some time, I've used these letters to remind you that municipal bonds can be an important building block in a well balanced investment portfolio. In addition to providing attractive tax-free monthly income, a municipal bond investment like your Fund may help you achieve and benefit from greater portfolio diversification. Portfolio diversification is a recognized way to try to reduce some of the risk that comes with investing. For more information about this important investment strategy, I encourage you to contact your personal financial advisor. "IN ADDITION TO PROVIDING ATTRACTIVE TAX-FREE MONTHLY INCOME, A MUNICIPAL BOND INVESTMENT LIKE YOUR FUND MAY HELP YOU ACHIEVE AND BENEFIT FROM GREATER PORTFOLIO DIVERSIFICATION." We also are pleased to be able to offer you a choice concerning how you receive your shareholder reports and other Fund information. As an alternative to mailed copies, you can sign up to receive future Fund reports and other Fund information by e-mail and the Internet. The inside front cover of this report contains information on how you can sign up. 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. 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. Sincerely, /s/ Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board November 16, 2006 Nuveen Investments New York Municipal Closed-End Funds NQN, NVN, NUN, NNF, NKO, NRK Portfolio Manager's COMMENTS Portfolio manager Cathryn Steeves discusses economic and municipal market conditions at both the national and state levels, key investment strategies, and the annual performance of these six New York Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility for the New York Funds in July 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL REPORTING PERIOD ENDED SEPTEMBER 30, 2006? In response to market concerns about oil prices, inflation, and the actions of the Federal Reserve over the past 12 months, bond yields exhibited some volatility during this reporting period, with longer-term rates peaking in October 2005 and again in June 2006. For the period as a whole, interest rates at the shorter end of the yield curve generally continued to rise, while longer rates posted smaller increases and even declined. As short-term rates approached and exceeded the levels of long-term rates, the yield curve became increasingly flat and the inverted. Consequently, bonds with longer durations1 generally outperformed those with shorter durations during this period. Between October 1, 2005 and September 30, 2006, the Federal Reserve announced increases in the fed funds rate at six of its eight Open Market Committee meetings, before leaving monetary policy unchanged at the August and September 2006 sessions. These six increases of 0.25% each raised the short-term target by 150 basis points, from 3.75% to 5.25%, its highest level since March 2001. During this same period, the yield on the benchmark 10-year U.S. Treasury note rose just 30 basis points to end September 2006 at 4.63%. By contrast, in the municipal market, the yield on the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal market rates, stood at 4.77% at the end of September 2006, down 27 basis points from the end of September 2005. Economic growth over the past year reflected the fluctuations in interest rates, energy prices, and the effects of a softening housing market. After expanding at a rate of 1.8% in the fourth quarter of 2005, the U.S. gross domestic product (GDP) rebounded sharply to 5.6% in the first quarter of 2006 before moderating to 2.6% in the second quarter of 2006 (all GDP numbers annualized). In the third quarter of 2006, GDP growth recorded a weaker-than-expected 1.6%, with the deceleration largely resulting from a 17% slump in residential investment, although consumer spending remained relatively solid. Despite slower growth, the markets continued to keep a close eye on inflation trends. While the year-over-year increase in the Consumer Price Index registered a relatively benign 2.1% in September 2006, the core rate (which excludes food and energy prices) rose 2.9% over the same period, the largest increase in 10 years. In general, the jobs picture remained 1 Duration is a measure of a bond's price sensitivity as interest rates change, with longer duration bonds displaying more sensitivity to these changes than bonds with shorter durations. 4 positive, with national unemployment at 4.6% in September 2006, down from 5.1% in September 2005. Over the 12 months ended September 2006, municipal bond issuance nationwide totaled $368.2 billion, down 9% from the previous 12 months. This total reflected the general decrease in the supply of municipal paper during 2006. After reaching record levels in calendar year 2005, municipal supply declined during the first nine months of 2006, with $261.6 billion in new securities coming to market, off 16% from the same period in 2005. A major factor in 2006's drop was the sharp reduction in pre-refunding volume, which fell more than 54% from last year's levels, as rising interest rates made advance refundings less economically attractive. Overall, demand for municipal bonds, especially those offering higher yields, continued to be strong and broad-based, with retail investors, property and casualty insurance companies, and hedge funds all participating in the market. HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING THIS PERIOD? New York ranked as the 25th fastest growing state economy in the nation in 2005, led by the financial, professional and business, and educational and health sectors. Despite New York's increased economic diversity, the financial services industry continued to be the key driver of the state's economy, representing 4% of the total number of jobs but 20% of the wages in the state. While tourism returned to pre-9/11 levels, the continued loss of manufacturing jobs, especially in upstate New York, meant that economic recovery was largely centered around New York City and its suburbs. As of September 2006, the unemployment rate in the state was 4.4%, down from 5.1% in September 2005 and the lowest since March 2001. New York's population trends, which have lagged the nation for years, remained weak, with growth of less than 2% over the past five years. Following several years of deficits and delays in budget enactment, New York's financial condition has shown gradual improvement. For fiscal 2006, the state erased the general fund's negative balance to end the year $384 million in the black. The $113.6 billion budget for fiscal 2007 was adopted on March 31, 2006, the second year in a row that New York passed its budget by the legally required April 1 deadline. This budget took some steps toward funding a 2005 mandate requiring New York City schools to guarantee a basic education for its children, with increased school operations aid of $1.3 billion and $1.8 billion in new school construction aid. The budget also authorized New York City's Transitional Finance Authority to issue $9.4 billion in bonds for school operations construction. In general, New York's revenues remain vulnerable to Wall Street cycles, with 51% of the 5 state's general fund receipts generated by personal income taxes, which are heavily dependent on high-paying jobs in the financial sector as well as securities prices and capital gains. The state continued to face forecasted budget deficits in fiscal 2008 ($3.2 billion) and 2009 ($5.4 billion). In December 2005, Moody's upgraded its rating on New York general obligation bonds to Aa3 from A1, citing improving financial operations. This rating was reconfirmed in March 2006, as was Standard & Poor's rating of AA. For the 12 months ended September 30, 2006, municipal issuance in New York totaled $34.6 billion, down 26% from the previous 12 months. During the first nine months of 2006, New York supply declined even more sharply, falling 37% from that of January-September 2005, to $20.5 billion. While New York remained the second largest state issuer in the nation for the 12-month period, the state slipped to fourth for the year-to-date. According to Moody's, the state's tax-supported debt has grown 37% since 2001, ranking New York second in the nation behind California in this category. In terms of debt per capita and debt as a percentage of personal income, New York ranks fifth. WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THIS REPORTING PERIOD? As the municipal yield curve flattened over this 12-month period, we continued to emphasize careful management of the Funds' underlying portfolios in line with our established targets. This included a disciplined approach to duration management and yield curve positioning. In watching the market for potential new additions to our portfolios, we focused mainly on attractively priced, premium coupon2 bonds in the 18- to 22-year part of the yield curve, which we considered to offer excellent value. Overall, we believed that the bonds we purchased provided strong performance potential, support for the Funds' income streams, and attractive reward opportunities without excessive risk. As part of our duration management strategies, we also selectively sold holdings with shorter durations. Selling these shorter duration bonds and reinvesting further out on the yield curve helped to improve the Funds' overall call protection profile. We also took advantage of opportunities to sell selected holdings when we believed that prevailing prices made these bonds attractive sales candidates. Although issuance in New York, as previously mentioned, declined sharply during this period, the reduction in supply did not have a major impact on the implementation of these or other strategies we had planned for these Funds. Since New York is a relatively high-quality state, much of the new supply was insured and/or highly rated, and we 2 Premium coupon bonds are credits that, at the time of purchase, are trading above their par values because their coupons are higher than current coupon levels. Historically, these bonds have held their value better than current coupon bonds when interest rates rise. 6 found opportunities to purchase bonds that helped us carry out our strategies, including insured health care bonds. We also bought insured bonds issued by New York City Industrial Development Agency to finance new stadiums for the New York Yankees and Mets, which were added to all six Funds. In NKO and NRK, which can invest up to 20% of their assets in uninsured investment-grade quality securities, we also continued to emphasize maintaining an exposure to BBB rated credits. However, as credit spreads continued to narrow and municipal supply tightened, we generally found few attractively structured lower-rated credit opportunities in the New York market that we believed would add value to these Funds. HOW DID THE FUNDS PERFORM? Individual results for these Nuveen New York Funds, as well as relevant index and peer group information, are presented in the accompanying table. TOTAL RETURNS ON NET ASSET VALUE* For periods ended 9/30/06 1-YEAR 5-YEAR 10-YEAR -------------------------------------------------------------------------------- NQN 4.03% 6.88% 6.66% -------------------------------------------------------------------------------- NVN 4.10% 7.12% 6.55% -------------------------------------------------------------------------------- NUN 4.06% 6.84% 6.48% -------------------------------------------------------------------------------- NNF 3.96% 6.43% 6.80% -------------------------------------------------------------------------------- NKO 4.29% NA NA -------------------------------------------------------------------------------- NRK 4.38% NA NA -------------------------------------------------------------------------------- Lehman Brothers NY Insured Tax-Exempt Bond Index3 4.60% 5.50% 6.10% -------------------------------------------------------------------------------- Lipper NY Insured Municipal Debt Funds Average4 4.88% 5.94% 6.23% -------------------------------------------------------------------------------- *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. 3 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. 4 The Lipper New York Insured Municipal Debt Funds average is calculated using the returns of all closed-end funds in this category for each period as follows: 1 year, 12; 5 years, 7; and 10 years, 6. Fund and Lipper returns assume reinvestment of dividends. 7 For the 12 months ended September 30, 2006, the total return on net asset value (NAV) for all six funds covered in this report underperformed relative to the return on the Lehman Brothers New York Insured Tax-Exempt Bond Index. The returns on all six of the insured New York Funds underperformed the average return for the Lipper New York Insured peer group. Factors that influenced the Funds' returns during this period included yield curve positioning and duration management, the use of financial leverage, allocations to lower-rated credits (or credit risk) in NKO and NRK (which can invest up to 20% of their assets in uninsured investment-grade quality securities), and advance refunding activity.5 As longer rates declined and the yield curve flattened over the course of this period, yield curve and duration positioning played an important role in the performance of these Funds. Overall, bonds in the Lehman Brothers Municipal Bond Index with maturities between two and six years were the most adversely impacted by changes in the interest rate environment over this period. As a result, these bonds generally underperformed intermediate and longer bonds (those with maturities of at least 12 years), with issues having the longest maturities (22 years and longer) achieving the best returns for the period. Even though these Funds were underexposed to the longest part of the curve that performed well, they held relatively fewer short bonds and a good allocation of intermediate bonds. This overall positioning benefited their performances. Another factor in the annual performance of these Funds, especially relative to that of the unleveraged Lehman Brothers New York Insured Tax-Exempt Bond Index, was the use of financial leverage. While leveraging can add volatility to a Fund's NAV and share price, this strategy can also provide opportunities for additional income and total return for common shareholders. The Funds' leveraging strategy positively impacted their results over this one year period, although not to the same extent as in the past. Over the long term, we firmly believe that the use of financial leverage should continue to work to the benefit of these Funds. This is demonstrated by the five-year and ten-year return performance--both absolute and relative to the Lehman Brothers New York Insured Tax-Exempt Bond Index--of NQN, NVN, NUN, and NNF. With bonds rated BBB or lower and non-rated bonds generally outperforming other credit quality sectors during this period, NKO and NRK benefited from their allocations of lower-quality credits. The performance of this sector was largely the result of investor demand for the higher yields typically associated with lower-quality bonds, which drove up their value and tightened credit spreads. As of September 30, 2006, bonds rated BBB accounted for 5% and 4% of the portfolios of NKO and NRK, respectively. Among the 5 Advance refundings, also known as pre-refundings or refinancings, 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. 8 lower-rated holdings making contributions to the returns of these two Funds for the period were healthcare credits (including hospitals) and industrial development bonds, which ranked as the top performing revenue sectors in the Lehman municipal index. Bonds backed by the 1998 master tobacco settlement agreement, which comprised between 2% and 3% of the portfolios of these two Funds as of September 30, 2006, also contributed to the Funds' performances. As noted earlier, we also continued to see positive contributions from advance refunding activity, which benefited these Funds through price appreciation and enhanced credit quality. While advance refundings generally enhanced performance for this 12-month period, the Funds' holdings of older, previously pre-refunded bonds tended to underperform the general municipal market, due primarily to their shorter effective maturities. Differences in Fund structure also accounted for some of the performance differentials during this period. HOW WERE THE FUNDS POSITIONED IN TERMS OF CREDIT QUALITY AND BOND CALLS AS OF SEPTEMBER 30, 2006? Maintaining strong credit quality remained an important requirement for the Funds. As of September 30, 2006, NQN, NVN, NUN, and NNF continued to be 100% invested in insured and/or U.S. guaranteed securities. NKO and NRK, which can invest up to 20% of their assets in uninsured investment-grade quality securities, had allocated 90% and 89% of their portfolios, respectively, to insured and/or U.S. guaranteed bonds. As of September 30, 2006, potential call exposure for the period October 2006 through the end of 2008 ranged from 8% in NRK and 10% in NKO to 13% in NNF, 14% in NVN, 15% in NUN, and 16% in NQN. The number of actual bond calls will depend largely on future market interest rates. 9 Dividend and Share Price INFORMATION As previously noted, all of these Funds use leverage to potentially enhance opportunities for additional income for common shareholders. During periods of rising short-term interest rates, as was the case during this reporting period, the Funds' borrowing costs also rise, reducing the extent of the benefits of leveraging. The Funds' income streams were also impacted as the proceeds from older, higher-yielding bonds that matured or were called were reinvested into bonds currently available in the market, which generally offered lower yields. These factors resulted in one monthly dividend reduction in NRK, two in NKO, three in NVN, NUN, and NNF, and four in NQN over the 12-month period ended September 30, 2006. Due to capital gains generated by normal portfolio activity, common shareholders of the Funds received capital gains and net ordinary income distributions at the end of December 2005, as follows: LONG-TERM CAPITAL GAINS ORDINARY INCOME (PER SHARE) (PER SHARE) -------------------------------------------------------------------------------- NQN $0.5347 -- -------------------------------------------------------------------------------- NVN $0.2710 -- -------------------------------------------------------------------------------- NUN $0.2704 $0.0011 -------------------------------------------------------------------------------- NNF $0.3294 -- -------------------------------------------------------------------------------- NKO $0.1858 $0.0005 -------------------------------------------------------------------------------- NRK $0.0216 $0.0038 -------------------------------------------------------------------------------- These distributions, which represented an important part of the total returns of these Funds for this period, were generated by bond calls and the sale of appreciated securities. This had a slight negative impact on the Funds' earning power per common share and was a minor factor in the common share dividend reductions noted above. All of the Funds in this report seek to pay stable dividends at rates that reflect each Fund's past results and projected future performance. During certain periods, each Fund may pay dividends at a rate that may be more or less than the amount of net investment income actually earned by the Fund during the period. If a Fund has cumulatively earned more than it has paid in dividends, it holds the excess in reserve as undistributed net investment income (UNII) as part of the Fund's NAV. Conversely, if a Fund has cumulatively paid dividends in excess of its earnings, the excess constitutes negative UNII that is likewise reflected in the Fund's NAV. Each Fund will, over time, pay all of its net investment income as dividends to shareholders. As of September 30, 2006, 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 and a negative UNII balance for financial statement purposes. 10 At the end of the reporting period, the Funds' share prices were trading at discounts to their NAVs as shown in the accompanying chart: 9/30/06 12-MONTH AVERAGE DISCOUNT DISCOUNT -------------------------------------------------------------------------------- NQN -7.84% -6.21% -------------------------------------------------------------------------------- NVN -7.12% -6.77% -------------------------------------------------------------------------------- NUN -7.23% -5.71% -------------------------------------------------------------------------------- NNF -6.86% -6.03% -------------------------------------------------------------------------------- NKO -3.19% -3.94% -------------------------------------------------------------------------------- NRK -5.63% -7.73% -------------------------------------------------------------------------------- 11 Nuveen New York Investment Quality Municipal Fund, Inc. NQN Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 89% U.S. Guaranteed 10% FHA/FNMA/GNMA Guaranteed 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0695 Nov 0.0695 Dec 0.065 Jan 0.065 Feb 0.065 Mar 0.0615 Apr 0.0615 May 0.0615 Jun 0.0585 Jul 0.0585 Aug 0.0585 Sep 0.0555 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 14.9 14.93 14.95 14.78 14.8 14.78 14.76 14.63 14.44 14.44 14.2 14.2 14.19 14.22 14.4 14.4 14.4 14.22 14.3 14.33 14.3 14.38 14.38 14.37 14.35 14.38 14.479 14.42 14.2 14.35 14.15 14.33 14.27 14.23 14.17 14.23 14.15 14.2 14.25 14.31 14.37 14.33 14.3 14.37 14.38 14.41 14.33 14.38 14.34 14.3 13.75 13.85 13.87 13.93 13.9 13.78 13.76 13.72 13.81 13.91 14.04 14.07 14.17 14.17 14.24 14.3 14.22 14.26 14.27 14.32 14.32 14.39 14.3 14.31 14.26 14.27 14.3 14.4 14.41 14.3699 14.34 14.48 14.43 14.43 14.46 14.42 14.37 14.41 14.63 14.67 14.62 14.64 14.64 14.73 14.77 14.8 14.9 14.89 15 14.95 15 15.1 15.17 15.16 15.1 14.96 14.74 14.65 14.64 14.56 14.54 14.4 14.49 14.3 14.5 14.49 14.5 14.6 14.6 14.6 14.49 14.53 14.44 14.43 14.2 14.32 14.3301 14.53 14.46 14.48 14.36 14.44 14.37 14.3 14.34 14.06 14.07 14.08 14 14.05 14.07 14.04 14.07 14 14.08 14.08 14.12 14.1 14.1 14.13 14.1 14.13 14.18 14.13 14.1 14.0754 14.1899 14.19 14.11 14.04 14.06 14.05 14.05 14.15 14.08 14.13 13.95 14.1 14.04 14.02 13.95 14 13.92 13.9 13.98 13.92 13.65 13.67 13.64 13.63 13.58 13.57 13.52 13.41 13.42 13.46 13.45 13.3601 13.4 13.36 13.54 13.52 13.54 13.64 13.58 13.51 13.45 13.43 13.39 13.4 13.36 13.4 13.47 13.6 13.6 13.63 13.6 13.69 13.81 13.77 13.88 13.92 14.04 14.15 14.05 14.03 14 13.99 14.03 14.02 14.07 14.15 14.09 13.98 14.04 14.15 14.11 14.16 14.22 14.2 14.17 14.2 14.15 14.15 14.05 13.88 13.89 13.91 13.95 13.92 13.92 13.9202 13.92 13.91 13.87 13.9 13.9296 13.91 13.93 13.95 13.97 13.96 13.99 9/30/06 13.99 FUND SNAPSHOT ------------------------------------ Common Share Price $13.99 ------------------------------------ Common Share Net Asset Value $15.18 ------------------------------------ Premium/(Discount) to NAV -7.84% ------------------------------------ Market Yield 4.76% ------------------------------------ Taxable-Equivalent Yield1 7.10% ------------------------------------ Net Assets Applicable to Common Shares ($000) $268,986 ------------------------------------ Average Effective Maturity on Securities (Years) 16.06 ------------------------------------ Leverage-Adjusted Duration 8.09 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/90) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 2.39% 4.03% ------------------------------------ 5-Year 6.87% 6.88% ------------------------------------ 10-Year 5.22% 6.66% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.4% ------------------------------------ Health Care 15.6% ------------------------------------ Transportation 11.4% ------------------------------------ U.S. Guaranteed 9.6% ------------------------------------ Tax Obligation/General 8.8% ------------------------------------ Education and Civic Organizations 8.2% ------------------------------------ Utilities 5.8% ------------------------------------ Other 8.2% ------------------------------------ 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 paid shareholders a capital gains distribution in December 2005 of $0.5347 per share. 12 Nuveen New York Select Quality Municipal Fund, Inc. NVN Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 86% U.S. Guaranteed 14% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0695 Nov 0.0695 Dec 0.066 Jan 0.066 Feb 0.066 Mar 0.0625 Apr 0.0625 May 0.0625 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0595 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 14.71 14.78 14.83 14.77 14.65 14.73 14.7 14.57 14.33 14.22 14.13 14.14 14.18 14.3 14.49 14.6 14.55 14.46 14.49 14.44 14.47 14.55 14.48 14.46 14.29 14.39 14.29 14.3 14.14 14.33 14.04 14.04 14.01 14.11 14.14 14.23 14.21 14.2 14.21 14.26 14.4 14.35 14.32 14.39 14.29 14.25 14.2 14.27 14.25 14.34 13.9 13.97 13.9 13.96 13.91 13.92 13.92 13.89 14.04 14.11 14.08 14.21 14.17 14.17 14.28 14.3 14.29 14.32 14.4601 14.47 14.46 14.44 14.49 14.5 14.5 14.5 14.59 14.6 14.53 14.52 14.38 14.4 14.28 14.4 14.43 14.46 14.52 14.4501 14.59 14.74 14.76 14.88 14.88 15 15.11 15.1 15.2 15.22 15.23 15.12 15.14 15.2 15.3 15.2799 15.1 14.94 14.77 14.74 14.94 14.84 14.75 14.7699 14.7 14.59 14.68 14.71 14.68 14.76 14.66 14.67 14.85 14.77 14.6 14.69 14.62 14.67 14.53 14.56 14.48 14.5 14.41 14.43 14.35 14.32 14.26 14.17 14.23 14.2 14.23 14.22 14.29 14.21 14.27 14.27 14.46 14.46 14.35 14.45 14.31 14.23 14.25 14.25 14.32 14.22 14.16 14.16 14.16 14.24 14.24 14.12 14.07 14.05 14.04 13.9201 13.97 13.99 14 14.02 13.9701 14.13 14 14.01 13.97 13.9501 14 14.03 13.75 13.71 13.74 13.76 13.77 13.74 13.66 13.63 13.58 13.65 13.55 13.69 13.77 13.52 13.7 13.66 13.67 13.75 13.63 13.64 13.55 13.55 13.54 13.54 13.48 13.56 13.58 13.61 13.69 13.62 13.64 13.67 13.87 14.02 14.05 14.06 14.18 14.24 14.13 14.0701 14.13 14.15 14.08 14.16 14.14 14.25 14.21 14.2 14.17 14.25 14.17 14.26 14.34 14.39 14.4 14.34 14.36 14.33 14.21 13.98 14.19 14.27 14.13 14.14 14.09 14.11 14.11 14.09 14.05 14.06 14.13 14.2 14.15 14.25 14.31 14.25 14.34 9/30/06 14.34 FUND SNAPSHOT ------------------------------------ Common Share Price $14.34 ------------------------------------ Common Share Net Asset Value $15.44 ------------------------------------ Premium/(Discount) to NAV -7.12% ------------------------------------ Market Yield 4.98% ------------------------------------ Taxable-Equivalent Yield1 7.43% ------------------------------------ Net Assets Applicable to Common Shares ($000) $361,945 ------------------------------------ Average Effective Maturity on Securities (Years) 16.26 ------------------------------------ Leverage-Adjusted Duration 8.51 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/22/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 4.53% 4.10% ------------------------------------ 5-Year 7.19% 7.12% ------------------------------------ 10-Year 5.76% 6.55% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.3% ------------------------------------ U.S. Guaranteed 13.6% ------------------------------------ Health Care 11.9% ------------------------------------ Tax Obligation/General 10.4% ------------------------------------ Education and Civic Organizations 8.0% ------------------------------------ Utilities 8.0% ------------------------------------ Transportation 7.9% ------------------------------------ Other 8.9% ------------------------------------ 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 paid shareholders a capital gains distribution in December 2005 of $0.2710 per share. 13 Nuveen New York Quality Income Municipal Fund, Inc. NUN Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 85% U.S. Guaranteed 14% FHA/FNMA/GNMA Guaranteed 1% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0665 Nov 0.0665 Dec 0.0665 Jan 0.0665 Feb 0.0665 Mar 0.063 Apr 0.063 May 0.063 Jun 0.0595 Jul 0.0595 Aug 0.0595 Sep 0.0565 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 14.51 14.6 14.63 14.53 14.55 14.48 14.46 14.25 14.05 13.97 13.75 13.75 13.78 13.8 14.14 14.2 14.15 14.04 14.09 14.11 14.15 14.1799 14.01 13.98 13.88 13.88 13.99 13.95 13.91 13.89 13.85 13.82 13.83 13.75 13.74 13.83 13.84 13.82 13.88 13.87 14 14.01 13.95 13.98 13.95 13.92 13.8601 14 13.96 13.98 13.71 13.7 13.69 13.72 13.75 13.75 13.6501 13.7 13.73 13.87 13.98 13.95 14.16 14.16 14.26 14.32 14.43 14.54 14.61 14.64 14.53 14.58 14.6 14.68 14.62 14.71 14.71 14.87 14.86 14.92 14.69 14.8 14.65 14.69 14.7 14.77 14.7 14.65 14.85 14.82 14.92 15.04 14.9999 15.1 15.11 15.08 15.2 15.24 15.22 15.16 15.16 15.2 15.2 15.17 15.08 15.02 14.81 14.89 14.91 14.86 14.92 14.73 14.73 14.6 14.6 14.75 14.75 14.68 14.67 14.63 14.7 14.63 14.63 14.65 14.59 14.58 14.66 14.63 14.59 14.7 14.7 14.65 14.53 14.38 14.35 14.27 14.4 14.28 14.22 14.3 14.3 14.36 14.42 14.31 14.38 14.38 14.36 14.4 14.47 14.33 14.4 14.47 14.44 14.32 14.27 14.2 14.19 14.18 14.09 14.08 14.04 14.05 14.01 14.06 14.0101 14.1 14.06 14.08 14.1 14.17 14.1 14.1 13.95 13.99 14.06 14.08 13.8 13.62 13.77 13.67 13.62 13.57 13.52 13.46 13.44 13.49 13.4901 13.59 13.63 13.7 13.81 13.78 13.8 13.73 13.63 13.64 13.5701 13.55 13.52 13.52 13.45 13.5 13.48 13.62 13.89 13.9 13.87 13.81 13.97 14 14.11 14.09 14.2 14.21 14.2 14.17 14.2 14.18 14.03 14.08 14.11 14.21 14.14 14.15 14.19 14.1 14.04 14.2 14.24 14.29 14.38 14.41 14.27 14.29 14.19 14.03 14.1 14.06 14.04 14.02 14 13.97 13.96 13.95 13.96 13.96 13.98 14.07 14.06 14.1 14.14 14.07 14.11 9/30/06 14.11 FUND SNAPSHOT ------------------------------------ Common Share Price $14.11 ------------------------------------ Common Share Net Asset Value $15.21 ------------------------------------ Premium/(Discount) to NAV -7.23% ------------------------------------ Market Yield 4.81% ------------------------------------ Taxable-Equivalent Yield1 7.18% ------------------------------------ Net Assets Applicable to Common Shares ($000) $366,405 ------------------------------------ Average Effective Maturity on Securities (Years) 15.59 ------------------------------------ Leverage-Adjusted Duration 8.41 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 4.27% 4.06% ------------------------------------ 5-Year 6.89% 6.84% ------------------------------------ 10-Year 5.94% 6.48% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.0% ------------------------------------ U.S. Guaranteed 14.2% ------------------------------------ Education and Civic Organizations 13.2% ------------------------------------ Health Care 9.9% ------------------------------------ Tax Obligation/General 8.6% ------------------------------------ Transportation 8.4% ------------------------------------ Utilities 7.3% ------------------------------------ Other 7.4% ------------------------------------ 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 paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.2715 per share. 14 Nuveen Insured New York Premium Income Municipal Fund, Inc. NNF Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 89% U.S. Guaranteed 11% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0665 Nov 0.0665 Dec 0.063 Jan 0.063 Feb 0.063 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.057 Jul 0.057 Aug 0.057 Sep 0.057 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 14.89 14.84 14.83 14.75 14.67 14.66 14.64 14.51 14.4 14.38 14.26 14.1 14.07 14.16 14.2 14.24 14.24 14 14.07 14.13 14.2 14.22 14.12 14.22 14.18 14.27 14.31 14.27 14.02 14.05 13.99 14.05 13.97 14.0401 14.02 14.07 14.1 14.16 14.25 14.2301 14.45 14.38 14.42 14.57 14.42 14.4001 14.6 14.49 14.29 14.22 13.8 13.8 13.8 13.81 13.8 13.82 13.81 13.68 13.8 13.89 13.93 14.05 14.08 14.08 14.18 14.2 14.26 14.28 14.37 14.44 14.33 14.45 14.42 14.46 14.42 14.45 14.39 14.45 14.44 14.5 14.45 14.43 14.4 14.43 14.44 14.42 14.39 14.36 14.37 14.3 14.36 14.38 14.3 14.34 14.45 14.31 14.38 14.42 14.45 14.5 14.65 14.89 15.05 15.08 14.99 14.88 14.85 14.87 14.8 14.83 14.81 14.82 14.85 14.76 14.9 14.8 14.79 14.79 14.52 14.7 14.52 14.531 14.48 14.45 14.25 14.32 14.26 14.38 14.25 14.18 14.01 14.08 13.9601 13.84 13.91 13.81 13.83 13.93 13.91 13.99 14.06 14.04 14 14 13.96 13.96 14.23 14.24 14.24 14.34 14.24 14.22 14.23 14.3 13.8 13.7 13.82 13.84 13.76 13.75 13.7401 13.7 13.74 13.73 13.82 13.77 13.94 13.95 14.1 14.26 14.27 14.14 14.15 14.05 14.1 14.11 14.04 13.87 14.1 14.01 13.91 13.95 13.83 13.75 13.83 13.82 13.86 13.8399 13.88 13.85 14 13.9 13.9 13.88 13.92 14.11 14.05 14.05 13.94 13.82 13.79 13.8 13.73 13.74 13.86 14 14.07 14.18 14.25 14.27 14.43 14.4 14.4 14.5 14.58 14.46 14.68 14.71 14.64 14.75 14.8 14.77 14.65 14.72 14.84 14.74 14.7 14.7301 14.72 14.6501 14.71 14.75 14.84 14.84 14.71 14.57 14.57 14.59 14.47 14.48 14.4 14.35 14.31 14.32 14.28 14.3 14.35 14.4 14.34 14.44 14.42 14.35 14.26 9/30/06 14.26 FUND SNAPSHOT ------------------------------------ Common Share Price $14.26 ------------------------------------ Common Share Net Asset Value $15.31 ------------------------------------ Premium/(Discount) to NAV -6.86% ------------------------------------ Market Yield 4.80% ------------------------------------ Taxable-Equivalent Yield1 7.16% ------------------------------------ Net Assets Applicable to Common Shares ($000) $127,546 ------------------------------------ Average Effective Maturity on Securities (Years) 15.73 ------------------------------------ Leverage-Adjusted Duration 8.15 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 3.30% 3.96% ------------------------------------ 5-Year 6.18% 6.43% ------------------------------------ 10-Year 6.63% 6.80% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.3% ------------------------------------ Health Care 14.2% ------------------------------------ Education and Civic Organizations 13.8% ------------------------------------ U.S. Guaranteed 10.9% ------------------------------------ Transportation 7.7% ------------------------------------ Tax Obligation/General 6.9% ------------------------------------ Water and Sewer 6.5% ------------------------------------ Other 7.7% ------------------------------------ 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. 2 The Fund paid shareholders a capital gains distribution in December 2005 of $0.3294 per share. 15 Nuveen Insured New York Dividend Advantage Municipal Fund NKO Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 82% U.S. Guaranteed 8% FHA/FNMA/GNMA Guaranteed 2% AA (Uninsured) 3% BBB (Uninsured) 5% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.068 Nov 0.068 Dec 0.068 Jan 0.068 Feb 0.068 Mar 0.0645 Apr 0.0645 May 0.0645 Jun 0.0615 Jul 0.0615 Aug 0.0615 Sep 0.0615 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 14.57 14.51 14.49 14.49 14.43 14.41 14.44 14.35 14.23 14.26 14.12 14 14.08 14.04 14.1 14.13 14.2 14.19 14.15 14.2 14.3 14.28 14.12 14.3 14.28 14.29 14.36 14.4 14.38 14.62 14.2 14.07 14.07 14 14.06 14.05 14.04 14.09 14.1099 14.1 14.36 14.34 14.21 14.38 14.36 14.23 14.15 14.21 14.27 14.3 14.17 14.52 14.45 14.72 14.82 14.78 14.85 14.86 15.19 14.9 15.19 15.25 15.32 15.32 15.3 15.49 15.5 15.47 15.37 15.22 14.94 14.95 14.95 15.08 14.92 15.15 14.97 15.3 15.03 15.12 15.02 15.2 15.05 14.83 14.84 14.83 15.1 15.05 15.25 15.15 15.18 15.17 15.25 15.28 15.29 15.27 15.29 15.19 15.3 15.11 15.21 15.03 15.05 15.26 15.22 14.93 15.05 15 15 14.88 15.03 15 15 14.88 15.05 14.9 15.15 15.15 14.98 15.07 15.17 15.019 15 15.03 14.9 15.17 15.23 15.22 15.13 14.99 14.95 14.51 14.47 14.47 14.5 14.54 14.53 14.49 14.38 14.45 14.45 14.26 14.3689 14.25 14.42 14.42 14.32 14.32 14.3 14.35 14.48 14.4 14.7 14.73 14.4 14.17 14.2 14.26 14.15 14.03 14 14.14 14.19 14.01 14.32 14.3 14.3 14.5 14.56 14.6 14.65 14.28 14.2 14.25 14.2 14.37 14.19 14 14.03 14.03 14 14.25 14.36 14.15 14.35 14.04 13.95 13.84 13.96 13.8 14.04 13.99 13.97 14.25 14.1285 14.51 14.2 14.07 14.2199 14.4 14.52 14.3 14.21 14.28 14.3 14.34 14.44 14.68 14.85 14.8 14.78 14.84 15.04 15.27 15.14 14.8 14.7399 14.61 14.51 14.53 15 14.71 14.64 14.46 14.47 14.49 14.6 14.65 14.77 14.74 14.67 14.7 14.61 14.7 14.53 14.3 14.34 14.46 14.42 14.52 14.58 14.53 14.37 14.3 14.26 14.45 14.4 14.6 14.7 14.84 14.82 14.6 14.85 9/30/06 14.85 FUND SNAPSHOT ------------------------------------ Common Share Price $14.85 ------------------------------------ Common Share Net Asset Value $15.34 ------------------------------------ Premium/(Discount) to NAV -3.19% ------------------------------------ Market Yield 4.97% ------------------------------------ Taxable-Equivalent Yield1 7.42% ------------------------------------ Net Assets Applicable to Common Shares ($000) $122,078 ------------------------------------ Average Effective Maturity on Securities (Years) 17.37 ------------------------------------ Leverage-Adjusted Duration 7.92 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 7.92% 4.29% ------------------------------------ Since Inception 6.40% 7.98% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 24.9% ------------------------------------ Health Care 16.7% ------------------------------------ Utilities 12.8% ------------------------------------ Education and Civic Organizations 10.1% ------------------------------------ Tax Obligation/General 10.0% ------------------------------------ Transportation 8.4% ------------------------------------ U.S. Guaranteed 8.1% ------------------------------------ Other 9.0% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a 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 paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.1863 per share. 16 Nuveen Insured New York Tax-Free Advantage Municipal Fund NRK Performance OVERVIEW As of September 30, 2006 Pie Chart: CREDIT QUALITY (as a % of total investments) Insured 71% U.S. Guaranteed 18% FHA/FNMA/GNMA Guaranteed 2% AA (Uninsured) 4% A (Uninsured) 1% BBB (Uninsured) 4% Bar Chart: 2005-2006 MONTHLY TAX-FREE DIVIDENDS PER SHARE2 Oct 0.0585 Nov 0.0585 Dec 0.0585 Jan 0.0585 Feb 0.0585 Mar 0.0585 Apr 0.0585 May 0.0585 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Line Chart: SHARE PRICE PERFORMANCE Weekly Closing Price Past performance is not predictive of future results. 10/01/05 13.99 13.94 14.04 14.04 13.96 13.91 13.95 13.85 13.61 13.61 13.45 13.3 13.28 13.35 13.37 13.4 13.4 13.36 13.5 13.3 13.3 13.29 13.38 13.5 13.33 13.22 13.41 13.4 13.35 13.35 13.13 13.05 12.93 12.92 12.98 13 12.97 13.01 12.99 12.97 13.18 13.19 13.2 13.07 13 13.0301 13.04 13.03 13.09 13.05 12.95 12.88 12.9 13.03 12.97 13.06 12.99 13.02 13.14 13.09 13.27 13.35 13.35 13.35 13.47 13.52 13.72 13.71 13.72 13.84 13.78 13.85 13.82 13.82 13.8 13.67 13.5 13.65 13.9 13.89 13.81 13.7 13.7 13.75 13.82 13.75 13.6 13.45 13.45 13.51 13.61 13.74 13.74 13.65 13.82 13.74 13.79 13.82 13.97 14.05 14.03 14 14.16 14.1 14.08 13.82 13.6701 13.51 13.8 13.9 13.9 13.75 13.91 13.91 13.98 13.95 13.9 13.9 13.9 13.9 14.13 13.94 13.88 13.9 13.91 14 14.04 13.99 13.73 13.68 13.51 13.58 14 13.94 13.94 13.94 13.61 13.69 13.5 13.48 13.38 13.42 13.46 13.51 13.79 13.79 13.79 13.75 13.66 13.75 13.75 13.6 13.6 13.6399 13.33 13.62 13.64 13.52 13.26 13.3476 13.26 13.33 13.35 13.2 13.17 13.2 13.35 13.35 13.69 13.66 13.72 13.49 13.45 13.44 13.43 13.41 13.23 13.32 13.55 13.69 13.69 13.41 13.41 13.4 13.37 13.23 13.09 13.2 13.15 13.13 13.31 13.31 13.31 13.31 13.17 13.48 13.54 13.54 13.35 13.32 13.08 13.21 13.19 13.36 13.4 13.33 13.25 13.37 13.4 13.48 13.49 13.54 13.77 13.76 13.9 13.93 13.92 13.82 13.85 13.77 13.82 13.8 13.8 13.9 14 13.98 13.98 14 13.91 14.04 14 13.98 13.95 13.99 13.9 13.74 13.74 13.74 13.88 13.88 13.75 13.8 13.87 13.67 13.62 13.72 13.8091 13.82 13.9 13.94 14.03 13.97 14.08 9/30/06 14.08 FUND SNAPSHOT ------------------------------------ Common Share Price $14.08 ------------------------------------ Common Share Net Asset Value $14.92 ------------------------------------ Premium/(Discount) to NAV -5.63% ------------------------------------ Market Yield 4.64% ------------------------------------ Taxable-Equivalent Yield1 6.93% ------------------------------------ Net Assets Applicable to Common Shares ($000) $52,425 ------------------------------------ Average Effective Maturity on Securities (Years) 14.92 ------------------------------------ Leverage-Adjusted Duration 8.14 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 5.79% 4.38% ------------------------------------ Since Inception 3.98% 6.55% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 28.2% ------------------------------------ U.S. Guaranteed 18.0% ------------------------------------ Health Care 15.2% ------------------------------------ Education and Civic Organizations 13.5% ------------------------------------ Utilities 8.5% ------------------------------------ Tax Obligation/General 5.8% ------------------------------------ Transportation 5.5% ------------------------------------ Other 5.3% ------------------------------------ 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 paid shareholders capital gains and net ordinary income distributions in December 2005 of $0.0254 per share. 17 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 (the Funds) as of September 30, 2006, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of September 30, 2006, by correspondence with the custodian and brokers. 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, 2006, 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 the financial highlights for each of the periods indicated therein in conformity with U.S. generally accepted accounting principles. /s/ Ernst & Young LLP Chicago, Illinois November 10, 2006 18 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.5% (8.2% OF TOTAL INVESTMENTS) $ 3,500 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA $ 3,641,190 Bonds, Culinary Institute of America, Series 1999, 5.000%, 7/01/22 - MBIA Insured 1,200 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,292,196 Bonds, Cooper Union, Series 1999, 6.250%, 7/01/29 - MBIA Insured 6,500 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 6,710,210 Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 - MBIA Insured 2,000 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,109,200 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/18 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 3,274,590 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 1,150 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 Aaa 1,226,728 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 2,031,850 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of Technology, Series 2006A: 575 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 654,040 460 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 524,970 4,500 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 4,860,450 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 1,250 New York City Industrial Development Agency, New York, Civic No Opt. Call AAA 1,356,650 Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 2,625 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 2,785,991 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 890 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 946,150 1,125 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 1,192,219 890 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 941,549 ------------------------------------------------------------------------------------------------------------------------------------ 31,430 Total Education and Civic Organizations 33,547,983 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.7% (15.6% OF TOTAL INVESTMENTS) 675 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 709,128 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured Dormitory Authority of the State of New York, FHA-Insured Mortgage Hospital Revenue Bonds, Montefiore Medical Center, Series 1999: 785 5.250%, 8/01/19 - AMBAC Insured 8/09 at 101.00 AAA 822,476 4,000 5.500%, 8/01/38 - AMBAC Insured 8/09 at 101.00 AAA 4,221,520 7,080 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 7,178,837 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 2,575 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,713,896 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 3,535 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 3,758,872 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 1,500 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 1,586,415 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 19 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA $ 8,452,239 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 6,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 6,430,620 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 4,065 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,440,565 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 3,280 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 AAA 3,390,536 North Shore Health System Obligated Group, Series 1998, 5.000%, 11/01/23 - MBIA Insured 8,525 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,066,081 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/26 - AMBAC Insured 3,135 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 3,230,837 Insured Revenue Bonds, Southside Hospital, Series 1998, 5.000%, 2/15/25 - MBIA Insured 2,000 New York City Health and Hospitals Corporation, New York, 2/09 at 101.00 AAA 2,080,680 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 3,384,266 2,100 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 2,256,177 ------------------------------------------------------------------------------------------------------------------------------------ 60,405 Total Health Care 63,723,145 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.9% (3.2% OF TOTAL INVESTMENTS) New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, Series 2005A: 1,230 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 1,333,000 1,230 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,334,698 5,740 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 6,122,973 35 New York State Housing Finance Agency, FHA-Insured 2/07 at 100.00 AAA 35,055 Multifamily Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: 1,570 6.100%, 11/01/15 - FSA Insured 11/06 at 102.00 AAA 1,604,242 2,655 6.125%, 11/01/20 - FSA Insured 11/06 at 102.00 AAA 2,713,410 ------------------------------------------------------------------------------------------------------------------------------------ 12,460 Total Housing/Multifamily 13,143,378 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.5% (1.1% OF TOTAL INVESTMENTS) 3,000 Castle Rest Residential Healthcare Facility, Syracuse, New York, 8/07 at 102.00 AAA 3,075,150 FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 1,185 East Rochester Housing Authority, New York, FHA-Insured 8/07 at 102.00 AAA 1,228,809 Mortgage Revenue Bonds, St. John's Meadows Project, Series 1997A, 5.750%, 8/01/37 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,185 Total Long-Term Care 4,303,959 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 13.4% (8.8% OF TOTAL INVESTMENTS) 3,000 Dormitory Authority of the State of New York, School Districts 10/15 at 100.00 AAA 3,168,060 Revenue Bond Financing Program, Peekskill City School District, Series 2005D, 5.000%, 10/01/33 - MBIA Insured 1,200 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 1,303,920 5.250%, 3/15/16 - FGIC Insured 635 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 694,900 5.250%, 4/01/13 - MBIA Insured 2,000 Hempstead Town, New York, General Obligation Bonds, 1/11 at 101.00 Aaa 2,147,280 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 744,821 General Obligation Bonds, Series 2000, 5.600%, 8/01/18 - MBIA Insured 1,000 Monroe County, New York, General Obligation Public Improvement 3/12 at 100.00 AAA 1,068,380 Bonds, Series 2002, 5.000%, 3/01/16 - FGIC Insured 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) New York City, New York, General Obligation Bonds, Fiscal Series 2004E: $ 3,000 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA $ 3,220,500 2,300 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 2,467,394 2,300 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 2,472,040 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 4,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 4,306,280 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured 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 530,835 500 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 530,835 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 1,797,626 1,815 5.000%, 6/15/18 - FSA Insured 6/15 at 100.00 AAA 1,966,734 1,145 Three Village Central School District, Brookhaven and No Opt. Call Aaa 1,264,962 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 1,768,376 New York, General Obligation Bonds, Series 2005, 5.000%, 10/01/16 - FSA Insured 6,110 Yonkers, New York, General Obligation Bonds, Series 2005A, 8/15 at 100.00 AAA 6,614,258 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 33,475 Total Tax Obligation/General 36,067,201 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 49.1% (32.4% OF TOTAL INVESTMENTS) 1,275 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue 9/15 at 100.00 AAA 1,371,326 State Aid Secured Bonds, Series 2005A, 5.000%, 9/01/20 - MBIA Insured 2,250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 2,322,765 Program Insured Revenue Bonds, St. Anne Institute, Issue 2, Series 1998E, 5.000%, 7/01/18 - AMBAC 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 1,712,450 500 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 528,835 75 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 76,595 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 - MBIA Insured 40 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 41,129 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 75 Dormitory Authority of the State of New York, Improvement No Opt. Call AAA 80,924 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.875%, 2/15/16 - FSA Insured 100 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 AAA 107,846 Revenue Bonds, Mental Health Services Facilities, Series 2001B, 5.500%, 8/15/19 - MBIA Insured 1,340 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,426,819 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 Revenue 7/09 at 101.00 AAA 2,129,580 Bonds, Special Act School District Program, Series 1999, 5.750%, 7/01/19 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue 8/11 at 100.00 AAA 1,063,960 Bonds, Nassau County Board of Cooperative Educational Services, Series 2001A, 5.250%, 8/15/21 - FSA Insured 1,500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 1,584,345 Bonds, Wayne-Finger Lakes Board of Cooperative Education Services, Series 2004, 5.000%, 8/15/23 - FSA Insured 2,410 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 2,584,147 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 1,270 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,338,783 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1: 2,120 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,306,221 1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,277,184 21 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 4,600 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA $ 4,965,378 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 401,550 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA 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 1,104,470 1,200 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,321,860 1,290 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,456,255 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 6,000 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 6,423,960 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 3,760 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 4,001,091 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 2,760 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 3,020,489 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 5,285,700 1,250 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 1,367,975 2,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 2,188,760 2,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,117,300 4,095 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,285,622 4,820 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 5,306,338 and Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 - AMBAC Insured Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 2,115 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA 2,274,133 1,305 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,365,539 1,305 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,362,237 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 1,599,630 2,200 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,343,000 1,600 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,701,744 5,370 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 5,685,004 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,581,690 2,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 2,159,720 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/20 - AMBAC Insured 1,660 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,786,625 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 2,137,820 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 3,910 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 4,133,535 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005: 2,100 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,222,094 5,200 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 5,436,964 2,265 New York State Environmental Facilities Corporation, 4/07 at 100.00 AAA 2,281,580 Special Obligation Revenue Refunding Bonds, Riverbank State Park, Series 1996, 5.125%, 4/01/22 - AMBAC Insured 3,000 New York State Local Government Assistance Corporation, No Opt. Call AAA 3,346,860 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 1,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 1,794,975 Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 7,350 New York State Thruway Authority, Highway and Bridge No Opt. Call AAA $ 8,554,591 Trust Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,750 New York State Thruway Authority, State Personal Income 9/14 at 100.00 AAA 1,859,078 Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC 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 6,793,164 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,075,850 4,500 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,833,090 1,000 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 1,053,690 Certificates of Participation, High School Facility, Series 2005, 5.000%, 6/15/28 - FSA Insured 1,435 Suffolk County Industrial Development Agency, New York, 10/10 at 102.00 Aaa 1,585,288 Revenue Bonds, Hampton Bays Public Library, Series 1999A, 6.000%, 10/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 122,495 Total Tax Obligation/Limited 132,167,558 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 17.3% (11.4% OF TOTAL INVESTMENTS) 2,000 Metropolitan Transportation Authority, New York, 11/12 at 100.00 AAA 2,199,700 Transportation Revenue Refunding Bonds, Series 2002A, 5.500%, 11/15/19 - AMBAC Insured 3,390 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 3,578,552 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 1,500 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 1,589,880 4,700 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 4,971,049 2,300 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,416,012 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 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 2,256,322 2,625 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 2,797,436 1,475 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 1,567,468 5,025 Port Authority of New York and New Jersey, Special Project 12/07 at 100.00 AAA 5,139,218 Bonds, JFK International Air Terminal LLC, Sixth Series 1997, 5.750%, 12/01/25 - MBIA Insured (Alternative Minimum Tax) Puerto Rico Ports Authority, Revenue Bonds, Series 1991D: 4,815 7.000%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/07 at 100.00 AAA 4,889,921 11,500 6.000%, 7/01/21 - FGIC Insured (Alternative Minimum Tax) 1/07 at 100.00 AAA 11,618,909 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 913,146 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,485,909 ------------------------------------------------------------------------------------------------------------------------------------ 44,490 Total Transportation 46,423,522 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 14.6% (9.6% OF TOTAL INVESTMENTS) (4) 3,655 Buffalo Municipal Water Finance Authority, New York, Water 7/09 at 101.00 AAA 3,928,540 System Revenue Bonds, Series 1999, 6.000%, 7/01/29 (Pre-refunded 7/01/09) - FSA Insured 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 71,985 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded 2/15/07) - MBIA Insured 3,000 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 3,205,800 Bonds, New Island Hospital, Series 1999A, 5.750%, 7/01/19 (Pre-refunded 7/01/09) - AMBAC Insured 965 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,144,895 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 - BIGI Insured (ETM) 1,000 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,081,790 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded 3/15/13) - FGIC Insured 3,405 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 3,528,602 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 23 Nuveen New York Investment Quality Municipal Fund, Inc. (NQN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 2,210 Metropolitan Transportation Authority, New York, Commuter 7/07 at 102.00 AAA $ 2,276,853 Facilities Revenue Bonds, Series 1997B, 5.000%, 7/01/20 - AMBAC Insured (ETM) Metropolitan Transportation Authority, New York, Dedicated Tax Fund Bonds, Series 1998A: 5,090 5.000%, 4/01/23 (Pre-refunded 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 5,582,661 7,600 4.750%, 4/01/28 (Pre-refunded 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 8,167,263 1,000 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 1,092,620 Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 5,030 New York City Trust for Cultural Resources, New York, Revenue 7/19 at 100.00 AAA 5,359,314 Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded 7/01/19) - AMBAC Insured 3,500 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 3,792,460 Fund Bonds, Series 2002A, 5.250%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 36,525 Total U.S. Guaranteed 39,232,783 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.8% (5.8% OF TOTAL INVESTMENTS) 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 2,614,025 2,500 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,654,350 2,620 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 2,811,679 Revenue Bonds, Series 2003C, 5.000%, 9/01/16 - CIFG Insured Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 4,540 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 4,872,691 6,160 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 6,585,964 2,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 2,115,540 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative Minimum Tax) New York State Power Authority, General Revenue Bonds, Series 2006A: 1,140 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,238,770 760 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 822,806 ------------------------------------------------------------------------------------------------------------------------------------ 22,220 Total Utilities 23,715,825 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.9% (3.9% OF TOTAL INVESTMENTS) 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,814,679 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,114,180 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 1,048,480 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER (continued) $ 5,030 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA $ 5,349,053 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 5,200 Suffolk County Water Authority, New York, Waterworks Revenue 6/15 at 100.00 AAA 5,520,840 Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,890 Total Water and Sewer 15,847,232 ------------------------------------------------------------------------------------------------------------------------------------ $ 382,575 Total Investments (cost $390,511,063) - 151.7% 408,172,586 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.8% 4,813,117 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.5)% (144,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 268,985,703 ====================================================================================================================
All of the bonds in the Portfolio of Investments, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 25 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 12.2% (8.0% OF TOTAL INVESTMENTS) $ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 543,845 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Lakeside Cottage Project, Series 2000B, 5.625%, 8/01/20 - AMBAC Insured 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 1,430,312 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 665,162 2,500 Dormitory Authority of the State of New York, General No Opt. Call AAA 3,023,875 Revenue Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 1,015 Dormitory Authority of the State of New York, Insured Revenue 1/07 at 100.00 AAA 1,017,923 Bonds, Fordham University, Series 1990, 7.200%, 7/01/15 - AMBAC Insured 695 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 739,376 Bonds, Fordham University, Series 2002, 5.000%, 7/01/18 - FGIC Insured 4,340 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,480,356 Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 - AMBAC Insured 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 1,457,136 800 5.500%, 7/01/20 - AMBAC Insured 7/11 at 100.00 AAA 863,488 600 5.500%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 647,616 2,125 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,241,025 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/19 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,183,060 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 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 1,067,300 2,875 5.250%, 7/01/30 - MBIA Insured 7/11 at 101.00 AAA 3,066,648 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,302,380 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of Technology, Series 2006A: 775 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 881,531 620 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 707,569 1,000 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 1,039,380 Revenue Refunding Bonds, Hofstra University, Series 1998, 5.000%, 7/01/23 - MBIA Insured 7,250 New York City Industrial Development Agency, New York, 1/09 at 101.00 AAA 7,447,780 Civic Facility Revenue Bonds, Horace Mann School, Series 1998, 5.000%, 7/01/28 - MBIA Insured 1,365 New York City Industrial Development Agency, New York, No Opt. Call AAA 1,481,462 Civic Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 2,750 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 2,918,658 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 1,195 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 1,270,393 1,350 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 1,430,662 1,195 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 1,264,214 ------------------------------------------------------------------------------------------------------------------------------------ 41,225 Total Education and Civic Organizations 44,171,151 ------------------------------------------------------------------------------------------------------------------------------------ 26 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 18.0% (11.9% OF TOTAL INVESTMENTS) $ 740 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA $ 777,414 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured 5,995 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 103.00 AAA 6,182,524 Mortgage Hospital Revenue Bonds, Millard Fillmore Hospitals, Series 1997, 5.375%, 2/01/32 - AMBAC Insured 5,730 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 6,047,327 Mortgage Hospital Revenue Bonds, Montefiore Medical Center, Series 1999, 5.500%, 8/01/38 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 3,041,880 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 2,655 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,798,211 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 6,500 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 102.00 AAA 6,767,020 Mortgage Revenue Refunding Bonds, United Health Services, Series 1997, 5.375%, 8/01/27 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,063,330 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 6,430 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 6,796,960 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA 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 2,679,425 3,210 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,411,877 4,065 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,440,565 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 12,020 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 12,782,908 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 2,153,527 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured 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 3,008,236 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,292,944 ------------------------------------------------------------------------------------------------------------------------------------ 61,735 Total Health Care 65,244,148 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.8% (3.1% OF TOTAL INVESTMENTS) New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, Series 2005A: 1,470 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 1,593,098 1,470 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,595,126 5,445 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,808,290 3,630 New York City Housing Development Corporation, New York, 10/06 at 105.00 AAA 3,819,250 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: 790 6.100%, 11/01/15 - FSA Insured 11/06 at 102.00 AAA 807,230 3,535 6.125%, 11/01/20 - FSA Insured 11/06 at 102.00 AAA 3,612,770 ------------------------------------------------------------------------------------------------------------------------------------ 16,340 Total Housing/Multifamily 17,235,764 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.5% (1.6% OF TOTAL INVESTMENTS) 2,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 2,142,480 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 6,368,580 Nursing Home Mortgage Revenue Bonds, Norwegian Christian Home and Health Center, Series 2001, 5.200%, 8/01/36 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 8,000 Total Long-Term Care 8,511,060 ------------------------------------------------------------------------------------------------------------------------------------ 27 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 15.7% (10.4% OF TOTAL INVESTMENTS) $ 1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa $ 1,629,900 5.250%, 3/15/16 - FGIC Insured 745 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 815,276 5.250%, 4/01/13 - MBIA Insured 2,000 Erie County, New York, General Obligation Bonds, Series 2005A, 12/15 at 100.00 AAA 2,173,960 5.000%, 12/01/18 - MBIA Insured 45 New York City, New York, General Obligation Bonds, Fiscal 2/07 at 100.00 AAA 45,095 Series 1992C, 6.250%, 8/01/10 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 1998H: 3,995 5.125%, 8/01/25 - MBIA Insured 8/08 at 101.00 AAA 4,123,799 5,430 5.375%, 8/01/27 - MBIA Insured 8/08 at 101.00 AAA 5,636,774 4,880 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 5,016,494 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 3,166,500 Series 2001D, 5.000%, 8/01/16 - FGIC Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 3,250 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 3,488,875 1,650 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,770,087 2,900 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 3,116,920 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 5,382,850 Series 2006F-1, 5.000%, 9/01/19 - XLCA 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 106,167 100 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 106,167 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 565,262 525 5.875%, 6/15/18 - FSA Insured 6/10 at 100.00 Aaa 565,262 525 5.875%, 6/15/20 - FSA Insured 6/10 at 100.00 Aaa 566,396 525 5.875%, 6/15/21 - FSA Insured 6/10 at 100.00 Aaa 566,396 525 5.875%, 6/15/22 - FSA Insured 6/10 at 100.00 Aaa 566,396 525 5.875%, 6/15/23 - FSA Insured 6/10 at 100.00 Aaa 566,396 525 5.875%, 6/15/24 - FSA Insured 6/10 at 100.00 Aaa 566,396 525 5.875%, 6/15/26 - FSA Insured 6/10 at 100.00 Aaa 564,412 525 5.875%, 6/15/28 - FSA Insured 6/10 at 100.00 Aaa 564,412 Rensselaer County, New York, General Obligation Bonds, Series 1991: 960 6.700%, 2/15/16 - AMBAC Insured No Opt. Call AAA 1,182,374 960 6.700%, 2/15/17 - AMBAC Insured No Opt. Call AAA 1,188,758 960 6.700%, 2/15/18 - AMBAC Insured No Opt. Call AAA 1,202,525 960 6.700%, 2/15/19 - AMBAC Insured No Opt. Call AAA 1,215,907 960 6.700%, 2/15/20 - AMBAC Insured No Opt. Call AAA 1,229,578 747 6.700%, 2/15/21 - AMBAC Insured No Opt. Call AAA 965,580 Rochester, New York, General Obligation Bonds, Series 1999: 735 5.250%, 10/01/20 - MBIA Insured No Opt. Call AAA 839,164 735 5.250%, 10/01/21 - MBIA Insured No Opt. Call AAA 841,046 730 5.250%, 10/01/22 - MBIA Insured No Opt. Call AAA 837,566 730 5.250%, 10/01/23 - MBIA Insured No Opt. Call AAA 840,332 730 5.250%, 10/01/24 - MBIA Insured No Opt. Call AAA 841,727 730 5.250%, 10/01/25 - MBIA Insured No Opt. Call AAA 842,705 725 5.250%, 10/01/26 - MBIA Insured No Opt. Call AAA 838,608 2,190 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,366,667 5.000%, 8/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 52,172 Total Tax Obligation/General 56,902,729 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 47.5% (31.3% OF TOTAL INVESTMENTS) Dormitory Authority of the State of New York, Improvement Revenue Bonds, Mental Health Services Facilities, Series 1996B: 45 5.375%, 2/15/26 - MBIA Insured 2/08 at 100.00 AAA 45,957 40 5.375%, 2/15/26 - FSA Insured 2/08 at 100.00 AAA 40,851 35 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 35,988 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 7,145 Dormitory Authority of the State of New York, Insured 7/09 at 101.00 AAA $ 7,607,925 Revenue Bonds, Special Act School District Program, Series 1999, 5.750%, 7/01/19 - MBIA Insured 3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,870,859 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 2,250 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 2,371,860 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1: 2,270 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,469,397 1,715 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,825,309 7,925 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,554,483 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 1,090 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,167,172 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA Insured 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 1,358,498 1,225 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,349,399 1,700 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,919,096 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 8,029,950 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 5,015 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 5,336,562 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 5,034,148 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 2,349,200 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,283,140 5,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 5,471,900 2,375 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,514,294 4,050 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,238,528 Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 4,000 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA 4,300,960 1,560 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,632,368 1,560 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,628,422 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 1,599,630 3,640 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,876,600 1,960 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,084,636 3,170 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,355,952 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,581,690 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 3,049,830 1,000 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 1,079,320 7,500 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 8,098,950 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 3,160 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,401,045 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 2,137,820 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 3,500 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,700,095 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 29 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005: $ 2,500 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA $ 2,645,350 6,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,273,420 2,000 New York State Environmental Facilities Corporation, Special 4/07 at 100.00 AAA 2,014,640 Obligation Revenue Refunding Bonds, Riverbank State Park, Series 1996, 5.125%, 4/01/22 - AMBAC Insured 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,183,575 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 7,750 New York State Local Government Assistance Corporation, 4/08 at 101.00 AAA 7,949,175 Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA 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 926,214 920 5.125%, 5/15/20 - AMBAC Insured 5/11 at 100.00 AAA 973,848 965 5.250%, 5/15/21 - AMBAC Insured 5/11 at 100.00 AAA 1,027,831 1,015 5.250%, 5/15/22 - AMBAC Insured 5/11 at 100.00 AAA 1,075,991 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,063,280 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/22 - MBIA Insured 8,455 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 9,840,690 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,000 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 1,062,330 Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC Insured New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 11,100 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 11,968,908 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,075,850 4,565 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,902,901 4,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 4,600,680 Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 159,585 Total Tax Obligation/Limited 171,986,517 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.9% (7.9% 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 6,599,100 2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,141,300 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 1,468,300 4,575 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 4,846,984 2,760 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,913,511 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 1,650 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 1,748,868 5,600 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 5,922,952 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,626,100 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 1,675 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 1,780,006 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/31 - XLCA Insured 7,000 Port Authority of New York and New Jersey, Consolidated 10/07 at 101.00 AAA 7,209,650 Revenue Bonds, One Hundred Twentieth Series 2000, 5.750%, 10/15/26 - MBIA Insured (Alternative Minimum Tax) 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 1,837,999 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 4,107,154 ------------------------------------------------------------------------------------------------------------------------------------ 40,465 Total Transportation 43,201,924 ------------------------------------------------------------------------------------------------------------------------------------ 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 20.7% (13.6% OF TOTAL INVESTMENTS) (4) $ 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA $ 71,985 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded 2/15/07) - MBIA Insured 2,095 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 2,279,360 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/18 (Pre-refunded 7/01/11) - FGIC Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,622,685 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded 3/15/13) - FGIC Insured 5,795 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,273,725 State University Educational Facilities, Series 2002A, 5.000%, 5/15/18 (Pre-refunded 5/15/12) - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, University of Rochester, Series 2000A: 1,990 0.000%, 7/01/17 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,755,578 2,235 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,971,717 2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,201,089 1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,649,714 505 Dormitory Authority of the State of New York, Suffolk County, 10/06 at 109.40 Baa1 (4) 689,471 Lease Revenue Bonds, Judicial Facilities, Series 1991A, 9.500%, 4/15/14 (ETM) Erie County, New York, General Obligation Bonds, Series 1999A: 700 5.500%, 10/01/17 (Pre-refunded 10/01/09) - FGIC Insured 10/09 at 101.00 AAA 746,641 700 5.250%, 10/01/19 (Pre-refunded 10/01/09) - FGIC Insured 10/09 at 101.00 AAA 741,685 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 5,650 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 5,855,095 4,000 5.250%, 12/01/26 (Pre-refunded 6/01/08) - MBIA Insured 6/08 at 101.00 AAA 4,153,280 Longwood Central School District, Suffolk County, New York, Series 2000: 1,000 5.750%, 6/15/19 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,106,430 1,000 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,106,430 4,695 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 5,057,125 Facilities Revenue Bonds, Series 1998A, 5.250%, 7/01/28 (Pre-refunded 7/01/11) - FGIC Insured 11,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 11,821,040 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded 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 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,370,480 3,250 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 3,551,015 2,330 Nassau County, North Hempstead, New York, General Obligation 3/08 at 101.00 Aaa 2,393,656 Refunding Bonds, Series 1998B, 4.750%, 3/01/18 (Pre-refunded 3/01/08) - FGIC Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 1998A: 10 5.000%, 8/15/27 (Pre-refunded 8/15/07) - MBIA Insured 8/07 at 101.00 AAA 10,231 50 5.000%, 8/15/27 (Pre-refunded 8/15/07) - MBIA Insured 8/07 at 101.00 AAA 51,157 1,075 New York City Trust for Cultural Resources, New York, Revenue 7/19 at 100.00 AAA 1,145,380 Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded 7/01/19) - AMBAC Insured New York City, New York, General Obligation Bonds, Fiscal Series 1998H: 155 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 160,994 10 5.375%, 8/01/27 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 10,431 120 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 125,516 Series 1999I, 5.000%, 4/15/29 (Pre-refunded 4/15/09) - MBIA Insured 5,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 5,417,800 Fund Bonds, Series 2002A, 5.250%, 4/01/19 (Pre-refunded 4/01/12) - FSA Insured New York State Urban Development Corporation, Service Contract Revenue Bonds, Correctional Facilities, Series 2000C: 6,000 5.125%, 1/01/23 (Pre-refunded 1/01/11) - FSA Insured 1/11 at 100.00 AAA 6,373,500 2,000 5.250%, 1/01/30 (Pre-refunded 1/01/11) - FSA Insured 1/11 at 100.00 AAA 2,134,300 ------------------------------------------------------------------------------------------------------------------------------------ 71,300 Total U.S. Guaranteed 74,847,510 ------------------------------------------------------------------------------------------------------------------------------------ 31 Nuveen New York Select Quality Municipal Fund, Inc. (NVN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.1% (8.0% OF TOTAL INVESTMENTS) 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 $ 1,925,560 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,847,520 15,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 6,634,650 3,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 1,267,890 4,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 1,816,470 3,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 1,156,200 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 3,136,830 3,125 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 3,317,938 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 6,010 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 6,450,413 7,735 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,269,875 6,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 6,346,620 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative Minimum Tax) New York State Power Authority, General Revenue Bonds, Series 2006A: 975 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,059,474 650 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 703,716 ------------------------------------------------------------------------------------------------------------------------------------ 60,995 Total Utilities 43,933,156 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.3% (4.2% OF TOTAL INVESTMENTS) 1,245 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,361,009 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 1,225 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,334,919 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.000%, 6/15/33 - MBIA Insured 5,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 5,285,450 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 5,920 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,295,506 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 7,100 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 7,538,070 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured 2,230 Upper Mohawk Valley Regional Water Finance Authority, No Opt. Call Aaa 1,128,402 New York, Water System Revenue Bonds, Series 2000, 0.000%, 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 22,720 Total Water and Sewer 22,943,356 ------------------------------------------------------------------------------------------------------------------------------------ $ 534,537 Total Investments (cost $516,936,353) - 151.7% 548,977,315 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 5,967,535 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.3)% (193,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 361,944,850 ====================================================================================================================
All of the bonds in the Portfolio of Investments, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. Such investments are normally considered to be equivalent to AAA rated securities. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 32 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.1% (13.2% OF TOTAL INVESTMENTS) $ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 543,845 Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Lakeside Cottage Project, Series 2000B, 5.625%, 8/01/20 - AMBAC Insured 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 1,158,390 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 665,162 6,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 6,583,020 Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/13 - MBIA Insured 1,000 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 1,209,550 Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 4,625 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 101.00 AAA 4,723,328 Bonds, Barnard College, Series 1996, 5.250%, 7/01/26 - AMBAC Insured 670 Dormitory Authority of the State of New York, Insured Revenue 7/12 at 100.00 AAA 712,780 Bonds, Fordham University, Series 2002, 5.000%, 7/01/19 - FGIC Insured 2,750 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,873,915 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/26 - AMBAC Insured 2,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 2,183,060 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,302,380 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of Technology, Series 2006A: 800 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 909,968 640 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 730,394 1,915 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,197,424 Resolution Consolidated Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/18 - FSA Insured 4,000 Dormitory Authority of the State of New York, State University No Opt. Call AAA 4,644,120 Educational Facilities Revenue Bonds, 1989 Resolution, Series 2000C, 5.750%, 5/15/16 - FSA Insured 2,000 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 2,073,200 Resolution Consolidated Revenue Bonds, City University System, Series 1998-1, 5.000%, 7/01/26 - FGIC Insured 6,415 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 6,667,623 Revenue Refunding Bonds, Hofstra University, Series 1998, 5.000%, 7/01/23 - MBIA Insured 4,775 New York City Industrial Development Agency, New York, 6/07 at 102.00 AAA 4,915,146 Civic Facility Revenue Bonds, Trinity Episcopal School, Series 1997, 5.250%, 6/15/27 - MBIA Insured 1,385 New York City Industrial Development Agency, New York, No Opt. Call AAA 1,503,168 Civic Facility Revenue Bonds, USTA National Tennis Center Inc., Series 2004, 5.000%, 11/15/13 - FSA Insured 2,750 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 2,918,658 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 1,215 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 1,291,654 1,350 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 1,430,662 1,215 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 1,285,373 13,500 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 13,766,084 Revenue Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/27 - MBIA Insured 33 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 6,250 New York City Trust for Cultural Resources, New York, Revenue 1/07 at 102.00 AAA $ 6,403,562 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 69,430 Total Education and Civic Organizations 73,692,466 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 15.1% (9.9% OF TOTAL INVESTMENTS) 750 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 787,920 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured 3,995 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 103.00 AAA 4,119,964 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 7,097,720 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 2,700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,845,638 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,063,330 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 9,000 Dormitory Authority of the State of New York, Hospital 7/09 at 101.00 AAA 9,513,630 Revenue Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA 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 2,679,425 3,300 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,507,537 4,070 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 4,446,027 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 9,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,571,230 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured 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 3,008,236 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,292,944 3,350 New York State Medical Care Facilities Finance Agency, 2/07 at 100.00 AAA 3,355,394 FHA-Insured Mortgage Revenue Bonds, Montefiore Medical Center, Series 1995A, 5.750%, 2/15/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 52,530 Total Health Care 55,288,995 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.8% (2.5% OF TOTAL INVESTMENTS) New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, Series 2005A: 1,500 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 1,625,610 1,500 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,627,680 5,515 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,882,961 3,019 New York City Housing Development Corporation, New York, 10/06 at 105.00 AAA 3,176,343 Multifamily Housing Revenue Bonds, Pass-Through Certificates, Series 1991C, 6.500%, 2/20/19 - AMBAC Insured 55 New York State Housing Finance Agency, FHA-Insured 2/07 at 100.00 AAA 55,086 Multifamily Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured 1,505 New York State Housing Finance Agency, Mortgage Revenue 11/06 at 102.00 AAA 1,538,110 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 13,094 Total Housing/Multifamily 13,905,790 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.3% (0.8% OF TOTAL INVESTMENTS) 4,450 Castle Rest Residential Healthcare Facility, Syracuse, New York, 8/07 at 102.00 AAA 4,561,473 FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 ------------------------------------------------------------------------------------------------------------------------------------ 34 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 13.0% (8.6% OF TOTAL INVESTMENTS) $ 1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa $ 1,629,900 5.250%, 3/15/16 - FGIC Insured 805 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 880,936 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 2,403,855 1,000 5.000%, 3/01/17 - FGIC Insured 3/12 at 100.00 AAA 1,061,540 New York City, New York, General Obligation Bonds, Fiscal Series 2001D: 5,360 5.250%, 8/01/15 - MBIA Insured 8/10 at 101.00 AAA 5,689,211 2,095 5.250%, 8/01/15 - FSA Insured 8/10 at 101.00 AAA 2,223,675 5,000 5.000%, 8/01/16 - FGIC Insured 8/10 at 101.00 AAA 5,277,500 5,000 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA 5,313,750 Series 2002C, 5.125%, 3/15/25 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 3,350 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 3,596,225 1,700 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,823,726 4,130 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 4,438,924 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 5,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 5,382,850 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 1,858,044 1,915 4.000%, 6/15/19 - FGIC Insured 6/12 at 100.00 AAA 1,921,702 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 565,262 525 5.875%, 6/15/25 - FSA Insured 6/10 at 100.00 Aaa 564,412 525 5.875%, 6/15/27 - FSA Insured 6/10 at 100.00 Aaa 564,412 2,305 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,486,657 5.000%, 8/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 44,830 Total Tax Obligation/General 47,682,581 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 47.1% (31.0% OF TOTAL INVESTMENTS) 3,340 Dormitory Authority of the State of New York, 853 Schools 7/09 at 101.00 AAA 3,534,689 Program Insured Revenue Bonds, Harmony Heights School, Issue 1, Series 1999C, 5.500%, 7/01/18 - AMBAC Insured 40 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 40,725 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.125%, 8/15/21 - MBIA Insured 40 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 41,129 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 370 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 388,615 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 - FSA 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 1,128,955 1,100 5.250%, 8/15/21 - FSA Insured 8/12 at 100.00 AAA 1,188,374 1,135 5.250%, 8/15/22 - FSA Insured 8/12 at 100.00 AAA 1,223,394 3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,870,859 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 1,490 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 1,570,698 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1: 2,300 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,502,032 1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,277,184 7,900 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,527,497 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 35 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,040 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA $ 1,113,632 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA Insured 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 1,325,364 1,000 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,101,550 1,710 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,930,385 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 8,029,950 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 5,100 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 5,427,012 Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 4,600 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 5,034,148 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 2,349,200 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,283,140 6,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 6,566,280 3,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 3,175,950 8,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 8,372,400 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 1,627,136 1,555 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,623,202 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 1,599,630 2,720 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,896,800 1,990 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,116,544 3,470 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,673,550 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,581,690 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 11,012,381 2,420 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 2,611,954 1,000 5.000%, 5/01/30 - MBIA Insured 11/11 at 101.00 AAA 1,042,820 6,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 6,479,160 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 1,995 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 2,147,179 Future Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 1,845 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 1,972,139 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 3,500 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 3,700,095 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005: 2,535 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,682,385 6,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,341,382 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,183,575 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,063,280 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/22 - MBIA Insured 8,455 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 9,840,690 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 New York State Thruway Authority, State Personal Income 9/14 at 100.00 AAA $ 1,062,330 Tax Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC Insured 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 13,370,672 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,074,020 3,190 New York State Urban Development Corporation, Revenue No Opt. Call AAA 3,553,947 Refunding Bonds, State Facilities, Series 1995, 5.600%, 4/01/15 - MBIA Insured 1,980 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 2,086,306 Certificates of Participation, High School Facility, Series 2005, 5.000%, 6/15/28 - FSA 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 3,366,390 6,000 5.500%, 7/01/18 - FSA Insured No Opt. Call AAA 6,901,020 ------------------------------------------------------------------------------------------------------------------------------------ 159,315 Total Tax Obligation/Limited 172,613,439 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.8% (8.4% 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 4,195,928 4,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 4,282,600 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 2,931,100 8,500 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 9,005,325 2,795 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 2,950,458 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 1,700 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 1,801,864 5,700 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 6,028,719 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,626,100 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 1,700 Port Authority of New York and New Jersey, Consolidated 6/15 at 101.00 AAA 1,806,573 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/31 - XLCA Insured 5,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 5,353,200 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 1,837,999 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 4,107,154 ------------------------------------------------------------------------------------------------------------------------------------ 43,745 Total Transportation 46,927,020 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 21.6% (14.2% OF TOTAL INVESTMENTS) (4) 70 Dormitory Authority of the State of New York, Improvement 2/07 at 102.00 AAA 71,985 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 (Pre-refunded 2/15/07) - MBIA Insured 3,500 Dormitory Authority of the State of New York, Insured Revenue 7/07 at 102.00 AAA 3,615,535 Bonds, Ithaca College, Series 1997, 5.250%, 7/01/26 (Pre-refunded 7/01/07) - AMBAC Insured 2,795 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 3,362,720 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 1,410 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 1,534,080 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/20 (Pre-refunded 7/01/11) - FGIC Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 1,622,685 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded 3/15/13) - FGIC Insured 37 Nuveen New York Quality Income Municipal Fund, Inc. (NUN) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 8,100 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA $ 8,820,414 State University Educational Facilities, Series 2002A, 5.125%, 5/15/19 (Pre-refunded 5/15/12) - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, University of Rochester, Series 2000A: 1,990 0.000%, 7/01/17 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,755,578 2,230 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,967,306 2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,201,089 1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,649,714 4,765 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 4,937,970 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured Longwood Central School District, Suffolk County, New York, Series 2000: 910 5.750%, 6/15/19 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,006,851 1,410 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,560,066 3,000 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 3,223,920 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded 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 10/01/14) - FSA Insured 10/14 at 100.00 AAA 4,370,480 1,000 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 1,092,620 Metropolitan Transportation Authority, New York, Transit Facilities Revenue Bonds, Series 1998B: 10,000 4.875%, 7/01/18 - FGIC Insured (ETM) 7/08 at 101.00 AAA 10,300,700 4,500 4.750%, 7/01/26 - FGIC Insured (ETM) 7/08 at 101.00 AAA 4,605,300 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,186,960 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.750%, 6/15/27 (Pre-refunded 6/15/11) - MBIA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 1998A: 15 5.000%, 8/15/27 (Pre-refunded 8/15/07) - MBIA Insured 8/07 at 101.00 AAA 15,347 75 5.000%, 8/15/27 (Pre-refunded 8/15/07) - MBIA Insured 8/07 at 101.00 AAA 76,735 4,930 New York State Thruway Authority, Highway and Bridge Trust 10/11 at 100.00 AAA 5,314,787 Fund Bonds, Series 2001B, 5.250%, 4/01/17 (Pre-refunded 10/01/11) - MBIA Insured 6,965 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 7,546,995 Fund Bonds, Series 2002A, 5.250%, 4/01/20 (Pre-refunded 4/01/12) - FSA Insured 6,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 6,402,900 Contract Revenue Bonds, Correctional Facilities, Series 2000C, 5.250%, 1/01/30 (Pre-refunded 1/01/11) - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 75,530 Total U.S. Guaranteed 79,242,737 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.1% (7.3% OF TOTAL INVESTMENTS) 1,650 Islip Resource Recovery Agency, New York, Revenue Bonds, No Opt. Call AAA 1,902,368 Series 1994B, 7.250%, 7/01/11 - AMBAC Insured (Alternative Minimum Tax) 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 1,925,560 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,847,520 5,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 2,211,550 7,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 2,958,410 10,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 4,238,430 7,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 2,697,800 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 2,614,025 2,500 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,654,350 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 6,180 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 6,632,870 8,020 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,574,583 38 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) New York State Power Authority, General Revenue Bonds, Series 2006A: $ 1,300 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA $ 1,412,632 865 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 936,484 ------------------------------------------------------------------------------------------------------------------------------------ 60,515 Total Utilities 40,606,582 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.3% (4.1% OF TOTAL INVESTMENTS) 830 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 907,339 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 1,360 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,482,033 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.000%, 6/15/33 - MBIA Insured 4,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 4,228,360 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 2,096,960 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 6,525 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,938,881 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 7,000 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 7,431,900 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 21,715 Total Water and Sewer 23,085,473 ------------------------------------------------------------------------------------------------------------------------------------ $ 545,154 Total Investments (cost $527,989,209) - 152.2% 557,606,556 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 5,798,665 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (53.8)% (197,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 366,405,221 ====================================================================================================================
All of the bonds in the Portfolio of Investments, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 39 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.6% (13.8% 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 $ 271,923 250 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 272,608 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 1,770,255 500 5.500%, 7/01/40 - AMBAC Insured No Opt. Call AAA 604,775 4,820 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,975,875 Bonds, Ithaca College, Series 1998, 5.000%, 7/01/21 - AMBAC Insured 810 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 854,226 Bonds, Yeshiva University, Series 2001, 5.000%, 7/01/20 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,091,530 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 700 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 805,833 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of Technology, Series 2006A: 250 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 284,365 200 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 228,248 1,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,148,060 State University Educational Facilities, Series 1993A, 5.500%, 5/15/19 - AMBAC Insured 1,270 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 1,365,212 State University Educational Facilities, Series 2002A, 5.000%, 5/15/16 - FGIC Insured 2,200 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,524,456 Resolution Consolidated Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/18 - FSA Insured 1,935 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 2,089,994 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 1,250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 1,326,663 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 415 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 441,182 450 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 476,887 415 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 439,037 4,000 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 4,081,400 Revenue Bonds, American Museum of Natural History, Series 1997A, 5.650%, 4/01/22 - MBIA Insured 1,250 New York City Trust for Cultural Resources, New York, Revenue 1/07 at 102.00 AAA 1,280,712 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 24,465 Total Education and Civic Organizations 26,333,241 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 21.2% (14.2% OF TOTAL INVESTMENTS) 3,000 Dormitory Authority of the State of New York, FHA-Insured 2/07 at 101.00 AAA 3,034,770 Mortgage Hospital Revenue Bonds, Ellis Hospital, Series 1995, 5.600%, 8/01/25 - MBIA Insured 200 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 210,112 Mortgage Hospital Revenue Bonds, Hospital for Special Surgery, Series 2005, 5.000%, 8/15/33 - MBIA Insured 2,910 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 2,950,624 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA $ 1,470,434 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured 1,405 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,480,786 Mortgage Revenue Bonds, Montefiore Hospital, Series 2004, 5.000%, 8/01/29 - FGIC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 3,169,590 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 2,740 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 2,936,650 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 2,435 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,659,970 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 1/08 at 102.00 AAA 1,556,355 Vassar Brothers Hospital, Series 1997, 5.250%, 7/01/17 - FSA Insured 3,450 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 3,668,971 Winthrop South Nassau University Health System Obligated Group, Series 2001A, 5.250%, 7/01/31 - AMBAC Insured 1,000 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 1,088,790 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 1,745,851 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,074,370 ------------------------------------------------------------------------------------------------------------------------------------ 25,665 Total Health Care 27,047,273 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.2% (2.7% OF TOTAL INVESTMENTS) New York City Housing Development Corporation, New York, Capital Fund Program Revenue Bonds, Series 2005A: 400 5.000%, 7/01/14 - FGIC Insured No Opt. Call AAA 433,496 400 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 434,048 2,165 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 2,309,449 1,990 New York State Housing Finance Agency, Mortgage Revenue 11/06 at 102.00 AAA 2,033,780 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,955 Total Housing/Multifamily 5,210,773 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.6% (1.1% OF TOTAL INVESTMENTS) 1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,071,240 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 898,289 Bonds, NYSARC Inc., Series 2001A, 5.000%, 7/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Long-Term Care 1,969,529 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 10.3% (6.9% OF TOTAL INVESTMENTS) 500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 543,300 5.250%, 3/15/16 - FGIC Insured 315 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 344,714 5.250%, 4/01/13 - MBIA Insured 210 Nassau County, New York, General Obligation Improvement No Opt. Call AAA 239,595 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 2,059,340 Series 1998F, 5.250%, 8/01/16 - FGIC Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 1,000 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,073,500 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,180,058 1,000 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 1,074,800 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 41 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL (continued) $ 2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA $ 2,153,140 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured 1,000 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 1,217,130 Public Improvement Bonds, Series 1994, 7.500%, 3/01/13 - MBIA Insured 1,000 Red Hook Central School District, Dutchess County, New York, 6/12 at 100.00 Aaa 1,070,310 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 545,795 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 1,650,858 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,150 Total Tax Obligation/General 13,152,540 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 48.3% (32.3% OF TOTAL INVESTMENTS) 690 Dormitory Authority of the State of New York, Department 7/15 at 100.00 AAA 750,216 of Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 - CIFG Insured 145 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 152,295 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 - FSA Insured 500 Dormitory Authority of the State of New York, Lease Revenue 8/14 at 100.00 AAA 528,115 Bonds, Wayne-Finger Lakes Board of Cooperative Education Services, Series 2004, 5.000%, 8/15/23 - FSA Insured 1,210 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 1,297,435 Department of Health, Series 2004-2, 5.000%, 7/01/20 - FGIC Insured 750 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 790,620 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D-1: 925 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 1,006,252 600 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 638,592 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 4,641,549 875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00 AAA 912,047 375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 401,550 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA Insured 750 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 828,353 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 564,440 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 2,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,676,650 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 1,700 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 1,809,004 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 1,350 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 1,477,413 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 1,761,900 1,500 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 1,641,570 2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,093,100 Nassau County Interim Finance Authority, New York, Sales Tax Secured Revenue Bonds, Series 2003A: 1,000 5.000%, 11/15/18 - AMBAC Insured 11/13 at 100.00 AAA 1,075,240 580 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 606,906 580 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 605,439 42 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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 $ 533,210 920 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 979,800 680 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 723,241 3,840 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 4,065,254 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 1,079,860 2,345 5.250%, 8/01/21 - AMBAC Insured 8/12 at 100.00 AAA 2,532,272 1,000 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,076,280 Future Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 1,068,910 Future Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 1,500 New York City Transitional Finance Authority, New York, 2/13 at 100.00 AAA 1,585,755 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005: 1,035 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 1,095,175 2,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 2,159,102 1,500 New York State Local Government Assistance Corporation, No Opt. Call AAA 1,673,430 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,061,290 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/23 - MBIA Insured 2,960 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 3,445,114 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 750 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 796,748 Revenue Bonds, Series 2004A, 5.000%, 3/15/24 - AMBAC Insured New York State Tobacco Settlement Financing Corporation, Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003A-1: 2,100 5.250%, 6/01/20 - AMBAC Insured 6/13 at 100.00 AAA 2,264,388 3,800 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,081,276 1,900 New York State Urban Development Corporation, Revenue No Opt. Call AAA 2,057,871 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 363,523 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 1,150,170 Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 - FSA Insured 1,500 Suffolk County Judicial Facilities Agency, New York, Service 10/09 at 101.00 AAA 1,570,815 Agreement Revenue Bonds, John P. Colahan Court Complex, Series 1999, 5.000%, 4/15/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,070 Total Tax Obligation/Limited 61,622,170 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.4% (7.7% 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 549,925 2,010 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 2,129,494 2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,118,900 Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/25 - MBIA Insured 1,475 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 1,557,040 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005G: 600 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA 635,952 1,900 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 2,009,573 43 Nuveen Insured New York Premium Income Municipal Fund, Inc. (NNF) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA $ 525,220 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) Port Authority of New York and New Jersey, Consolidated Revenue Bonds, One Hundred Fortieth Series 2005: 1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,065,690 565 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 600,420 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 913,146 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,485,909 ------------------------------------------------------------------------------------------------------------------------------------ 13,630 Total Transportation 14,591,269 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 16.2% (10.9% OF TOTAL INVESTMENTS) (4) 2,000 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 2,163,580 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded 3/15/13) - FGIC Insured 3,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 2,836,273 University of Rochester, Series 2000A, 0.000%, 7/01/24 (Pre-refunded 7/01/10) - MBIA Insured 3,440 Long Island Power Authority, New York, Electric System 6/08 at 101.00 AAA 3,564,872 General Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 500 Longwood Central School District, Suffolk County, New York, 6/11 at 101.00 Aaa 553,215 Series 2000, 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 1,500 Metropolitan Transportation Authority, New York, Dedicated 10/15 at 100.00 AAA 1,611,960 Tax Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded 10/01/15) - FGIC Insured 500 Metropolitan Transportation Authority, New York, Dedicated 10/14 at 100.00 AAA 546,310 Tax Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 750 New York State Thruway Authority, Highway and Bridge Trust 4/13 at 100.00 AAA 822,345 Fund Bonds, Second Generation, Series 2003A, 5.250%, 4/01/23 (Pre-refunded 4/01/13) - MBIA Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Series 2002A: 1,500 5.250%, 4/01/17 (Pre-refunded 4/01/12) - FSA Insured 4/12 at 100.00 AAA 1,625,340 1,000 5.250%, 4/01/18 (Pre-refunded 4/01/12) - FSA Insured 4/12 at 100.00 AAA 1,083,560 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,071,160 Fund Bonds, Series 2002B, 5.000%, 4/01/20 (Pre-refunded 4/01/12) - AMBAC Insured 2,000 New York State Urban Development Corporation, State 3/13 at 100.00 AAA 2,215,960 Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) - FGIC Insured 2,115 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,316,940 Water Treatment Plant Bonds, Series 1994, 8.500%, 11/01/08 - MBIA Insured (Alternative Minimum Tax) (ETM) 265 Suffolk County Water Authority, New York, Subordinate Lien No Opt. Call AAA 286,176 Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 19,785 Total U.S. Guaranteed 20,697,691 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.8% (3.9% OF TOTAL INVESTMENTS) 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 522,805 625 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 663,588 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 2,270 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 2,436,346 2,930 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 3,132,610 New York State Power Authority, General Revenue Bonds, Series 2006A: 375 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 407,490 250 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 270,660 ------------------------------------------------------------------------------------------------------------------------------------ 6,950 Total Utilities 7,433,499 ------------------------------------------------------------------------------------------------------------------------------------ 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 9.8% (6.5% OF TOTAL INVESTMENTS) $ 1,830 Monroe County Water Authority, New York, Water System 8/11 at 101.00 AAA $ 1,953,562 Revenue Bonds, Series 2001, 5.250%, 8/01/36 - MBIA Insured 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,814,679 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 1,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 1,057,090 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.250%, 6/15/33 - FGIC Insured 2,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 2,096,960 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 1,980 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 2,105,591 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 735 Suffolk County Water Authority, New York, Subordinate Lien No Opt. Call AAA 792,911 Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured 2,500 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 2,654,250 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,705 Total Water and Sewer 12,475,043 ------------------------------------------------------------------------------------------------------------------------------------ $ 178,225 Total Investments (cost $182,075,138) - 149.4% 190,533,028 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.6% 2,013,180 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.0)% (65,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 127,546,208 ====================================================================================================================
All of the bonds in the Portfolio of Investments, are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance, or are backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, any of which ensure the timely payment of principal and interest. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 45 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.8% (2.6% OF TOTAL INVESTMENTS) $ 2,650 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB $ 2,712,381 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 1,055,370 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 865 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 892,239 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,515 Total Consumer Staples 4,659,990 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.9% (10.1% OF TOTAL INVESTMENTS) 4,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 4,463,960 Bonds, Mount Sinai School of Medicine, Series 1994A, 5.150%, 7/01/24 - MBIA Insured 1,280 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 1,321,395 Bonds, New York Medical College, Series 1998, 5.000%, 7/01/21 - MBIA Insured 1,000 Dormitory Authority of the State of New York, Lease Revenue No Opt. Call AAA 1,091,530 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 575,595 City University of New York, Series 2005A, 5.500%, 7/01/18 - FGIC Insured 3,250 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 3,893,533 New York University, Series 1998A, 6.000%, 7/01/18 - MBIA Insured 1,250 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 1,326,663 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 395 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 419,921 450 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 476,887 395 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 417,878 25 New York City Trust for Cultural Resources, New York, 4/07 at 101.00 AAA 25,509 Revenue 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, 7/12 at 100.00 AAA 4,224,840 Revenue Bonds, Museum of Modern Art, Series 2001D, 5.125%, 7/01/31 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,545 Total Education and Civic Organizations 18,237,711 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.6% (16.7% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA 2,027,920 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 1,400 Dormitory Authority of the State of New York, FHA-Insured 8/12 at 100.00 AAA 1,470,434 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured 9,800 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 10,402,697 Mortgage Revenue Bonds, New York Hospital Medical Center of Queens, Series 1999, 5.600%, 2/15/39 - AMBAC Insured 1,500 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,594,995 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 2,050 Dormitory Authority of the State of New York, Hospital Revenue 7/09 at 101.00 AAA 2,168,101 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 170 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 179,610 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 1,725 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA $ 1,848,803 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 1,620 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,769,672 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 600 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 637,626 South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 2,500 Dormitory Authority of the State of New York, Secured Hospital 2/08 at 101.50 AAA 2,582,600 Revenue Bonds, Bronx Lebanon Hospital, Series 1998E, 5.200%, 2/15/15 - MBIA Insured 690 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 751,265 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 1,611,555 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,074,370 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 784,131 1,045 5.875%, 11/01/32 11/12 at 100.00 Baa1 1,112,162 ------------------------------------------------------------------------------------------------------------------------------------ 28,325 Total Health Care 30,015,941 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.5% (2.4% 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 2,828,605 1,375 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 1,426,068 ------------------------------------------------------------------------------------------------------------------------------------ 4,100 Total Housing/Multifamily 4,254,673 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.7% (1.8% OF TOTAL INVESTMENTS) 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 1,072,130 1,500 5.400%, 2/01/34 8/12 at 101.00 AAA 1,602,015 525 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA 567,158 Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 (WI/DD, Settling 10/12/06) ------------------------------------------------------------------------------------------------------------------------------------ 3,025 Total Long-Term Care 3,241,303 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.7% (10.0% 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 1,625,218 2,375 5.375%, 11/15/20 - MBIA Insured 11/12 at 100.00 AAA 2,590,531 1,240 Canandaigua City School District, Ontario County, New York, 4/12 at 101.00 Aaa 1,352,406 General Obligation Refunding Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured 3,000 New York City, New York, General Obligation Bonds, Fiscal 3/11 at 101.00 AAA 3,220,170 Series 2001H, 5.250%, 3/15/16 - FGIC Insured 3,250 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA 3,453,938 Series 2002C, 5.125%, 3/15/25 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 2004E: 1,700 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA 1,824,950 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,180,058 525 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 571,200 Series 2006C, 5.000%, 8/01/16 - FSA Insured 2,000 New York City, New York, General Obligation Bonds, Fiscal 9/15 at 100.00 AAA 2,153,140 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,680 Total Tax Obligation/General 17,971,611 ------------------------------------------------------------------------------------------------------------------------------------ 47 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 36.8% (24.9% OF TOTAL INVESTMENTS) $ 250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA $ 259,182 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 230,461 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 - FSA Insured 300 Dormitory Authority of the State of New York, Revenue Bonds, 2/15 at 100.00 AAA 316,248 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,238,290 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 160 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 171,328 Income Tax Revenue Bonds, Series 2005F, 5.000%, 3/15/21 - FSA Insured 400 Erie County Industrial Development Agency, New York, School 5/12 at 100.00 AAA 441,788 Facility Revenue Bonds, Buffalo City School District, Series 2003, 5.750%, 5/01/20 - FSA Insured 2,290 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,451,811 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 1,615 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 1,718,554 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 4,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 4,234,600 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 1,000 Nassau County Interim Finance Authority, New York, Sales 11/13 at 100.00 AAA 1,075,240 Tax Secured Revenue Bonds, Series 2003A, 5.000%, 11/15/18 - AMBAC 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 533,210 3,400 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,621,000 1,040 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,106,134 5,000 New York City Transitional Finance Authority, New York, Future 11/11 at 101.00 AAA 5,407,500 Tax Secured Bonds, Fiscal Series 2002B, 5.250%, 5/01/16 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 1,079,860 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 500 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 534,455 Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured New York Convention Center Development Corporation, Hotel Unit Fee Revenue Bonds, Series 2005: 500 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 529,070 1,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 1,045,570 2,625 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 3,055,211 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 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 2,048,732 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,074,020 750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 813,668 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 8,600 New York State Urban Development Corporation, Revenue No Opt. Call AAA 9,910,726 Refunding Bonds, State Facilities, Series 1995, 5.700%, 4/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 41,050 Total Tax Obligation/Limited 44,896,658 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.3% (8.4% 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 2,141,300 4,000 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 4,237,800 140 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 147,787 Series 2005F, 5.000%, 1/01/30 - AMBAC Insured 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) New York State Thruway Authority, General Revenue Bonds, Series 2005G: $ 350 5.000%, 1/01/30 - FSA Insured 7/15 at 100.00 AAA $ 370,972 1,000 5.000%, 1/01/32 - FSA Insured 7/15 at 100.00 AAA 1,057,670 85 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 89,287 Bonds, Buffalo Niagara International Airport, Series 1999A, 5.625%, 4/01/29 - MBIA Insured (Alternative Minimum Tax) 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 542,385 1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,065,690 345 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 366,628 4,000 Port Authority of New York and New Jersey, Consolidated 8/08 at 101.00 AAA 4,130,040 Revenue Bonds, One Hundred Twenty-Fourth Series 2001, 5.000%, 8/01/11 - FGIC Insured (Alternative Minimum Tax) 780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 913,146 Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,200 Total Transportation 15,062,705 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.0% (8.1% OF TOTAL INVESTMENTS) (4) 170 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 204,530 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 4,750 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 5,142,398 State University Educational Facilities, Series 2002A, 5.000%, 5/15/27 (Pre-refunded 5/15/12) - FGIC Insured 680 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 704,684 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 935 New York State Housing Finance Agency, Construction Fund No Opt. Call AAA 1,040,318 Bonds, State University, Series 1986A, 8.000%, 5/01/11 (ETM) 3,000 New York State Urban Development Corporation, State Personal 3/12 at 100.00 AAA 3,230,640 Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002A, 5.125%, 3/15/27 (Pre-refunded 3/15/12) 2,575 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,772,812 Bonds, Series 2000A, 5.500%, 10/01/40 1,420 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,539,408 Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 13,530 Total U.S. Guaranteed 14,634,790 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 18.8% (12.8% OF TOTAL INVESTMENTS) 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 5,228,050 2,715 5.250%, 9/01/28 - FSA Insured 9/11 at 100.00 AAA 2,882,624 Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 1,700 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,824,576 1,300 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 1,389,895 5,000 New York State Energy Research and Development Authority, 11/08 at 102.00 AAA 5,232,550 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 5,291,000 Series 2000HH, 5.250%, 7/01/29 - FSA Insured 1,090 Westchester County Industrial Development Agency, 7/07 at 101.00 BBB 1,110,666 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 21,805 Total Utilities 22,959,361 ------------------------------------------------------------------------------------------------------------------------------------ 49 Nuveen Insured New York Dividend Advantage Municipal Fund (NKO) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 3.3% (2.2% OF TOTAL INVESTMENTS) $ 1,500 Niagara Falls Public Water Authority, New York, Water and 7/15 at 100.00 AAA $ 1,581,180 Sewerage Revenue Bonds, Series 2005, 5.000%, 7/15/28 - XLCA Insured 2,295 Suffolk County Water Authority, New York, Waterworks Revenue 6/15 at 100.00 AAA 2,436,602 Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 3,795 Total Water and Sewer 4,017,782 ------------------------------------------------------------------------------------------------------------------------------------ $ 167,570 Total Investments (cost $170,984,877) - 147.4% 179,952,525 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.6% 3,125,391 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (50.0)% (61,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 122,077,916 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 50 Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK) Portfolio of INVESTMENTS September 30, 2006
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.7% (2.5% OF TOTAL INVESTMENTS) $ 1,500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB $ 1,583,055 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 350 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 361,022 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Consumer Staples 1,944,077 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.2% (13.5% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, Insured Revenue 9/12 at 100.00 AA 2,074,040 Bonds, Long Island University, Series 2003A, 5.000%, 9/01/32 - RAAI Insured 2,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 2,231,980 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, Lease Revenue No Opt. Call AAA 1,091,530 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, 7/13 at 100.00 AA 1,037,330 Mount St. Mary College, Series 2003, 5.000%, 7/01/32 - RAAI Insured 2,500 Dormitory Authority of the State of New York, Revenue Bonds, 7/12 at 100.00 Aaa 2,691,025 Rochester Institute of Technology, Series 2002A, 5.250%, 7/01/22 - AMBAC Insured Dormitory Authority of the State of New York, Revenue Bonds, Rochester Institute of Technology, Series 2006A: 100 5.250%, 7/01/20 - AMBAC Insured No Opt. Call Aaa 113,746 80 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 91,299 625 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 663,331 Revenue Bonds, Queens Baseball Stadium, Series 2006, 5.000%, 1/01/36 - AMBAC Insured New York City Industrial Development Authority, New York, Revenue Bonds, Yankee Stadium Project, Series 2006: 170 5.000%, 3/01/31 - FGIC Insured 9/16 at 100.00 AAA 180,725 225 5.000%, 3/01/36 - FGIC Insured 9/16 at 100.00 AAA 238,444 170 5.000%, 1/01/39 - AMBAC Insured 1/17 at 100.00 AAA 179,846 ------------------------------------------------------------------------------------------------------------------------------------ 9,870 Total Education and Civic Organizations 10,593,296 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 22.7% (15.2% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 100.00 AAA 2,086,420 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 3,120,600 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.000%, 2/01/31 - AMBAC Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,063,330 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 25 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 26,794 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 820 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 895,760 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 A3 532,750 North Shore Long Island Jewish Group, Series 2003, 5.375%, 5/01/23 750 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 797,033 South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 500 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 544,395 Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 - FSA Insured 51 Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 2,640 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA $ 2,836,337 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 11,235 Total Health Care 11,903,419 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 3.0% (2.0% OF TOTAL INVESTMENTS) 1,185 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,263,198 Nursing Home Mortgage Revenue Bonds, Shorefront Jewish Geriatric Center Inc., Series 2002, 5.200%, 2/01/32 300 New York State Dormitory Authority, GNMA Collateralized 2/17 at 103.00 AA 324,090 Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 (WI/DD, Settling 10/12/06) ------------------------------------------------------------------------------------------------------------------------------------ 1,485 Total Long-Term Care 1,587,288 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 8.6% (5.8% OF TOTAL INVESTMENTS) 2,310 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 2,384,474 Series 1998H, 5.125%, 8/01/25 - MBIA Insured 250 New York City, New York, General Obligation Bonds, Fiscal 11/14 at 100.00 AAA 268,375 Series 2004E, 5.000%, 11/01/19 - FSA Insured 225 New York City, New York, General Obligation Bonds, Fiscal 8/15 at 100.00 AAA 244,800 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 1,614,855 Series 2006F-1, 5.000%, 9/01/19 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,285 Total Tax Obligation/General 4,512,504 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 42.2% (28.2% OF TOTAL INVESTMENTS) 2,695 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue No Opt. Call AAA 2,934,963 State Aid Secured Bonds, Series 2004A, 5.250%, 8/15/12 - MBIA Insured 145 Dormitory Authority of the State of New York, Improvement 8/09 at 101.00 AAA 151,895 Revenue Bonds, Mental Health Services Facilities, Series 1999D, 5.250%, 2/15/29 - FSA Insured 3,000 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 3,238,290 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 715 Metropolitan Transportation Authority, New York, Dedicated 11/16 at 100.00 AAA 760,846 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 1,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA 1,058,650 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 587,776 Revenue Bonds, Series 2003, 5.500%, 1/01/34 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 649,650 555 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 590,292 3,000 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 3,239,580 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 2,114,340 Future Tax Secured Refunding Bonds, Fiscal Series 2003D, 5.000%, 2/01/22 - MBIA Insured 1,290 New York State Environmental Facilities Corporation, State 1/13 at 100.00 AAA 1,365,813 Personal Income Tax Revenue Bonds, Series 2002A, 5.000%, 1/01/23 - FGIC Insured 950 New York State Thruway Authority, Highway and Bridge Trust No Opt. Call AAA 1,105,696 Fund Bonds, Second Generation, Series 2005B, 5.500%, 4/01/20 - AMBAC Insured 1,200 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AAA 1,293,936 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- 813,668 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 100 New York State Urban Development Corporation, Revenue 1/08 at 102.00 AAA 103,567 Refunding Bonds, Correctional Capital Facilities, Series 1998, 5.000%, 1/01/20 - MBIA Insured 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 2,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AA- $ 2,136,760 Contract Revenue Bonds, Correctional and Youth Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) ------------------------------------------------------------------------------------------------------------------------------------ 20,570 Total Tax Obligation/Limited 22,145,722 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 8.2% (5.5% OF TOTAL INVESTMENTS) 1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 1,059,450 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 3,236,343 Revenue Bonds, One Hundred Twenty-Eighth Series 2002, 5.000%, 11/01/22 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,030 Total Transportation 4,295,793 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 26.9% (18.0% OF TOTAL INVESTMENTS) (4) 395 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 415,129 Bonds, State University Dormitory Facilities, Series 1999B, 5.125%, 7/01/28 (Pre-refunded 7/01/09) - MBIA Insured 2,500 Dormitory Authority of the State of New York, Revenue Bonds, 3/13 at 100.00 AAA 2,704,475 State Personal Income Tax, Series 2003A, 5.000%, 3/15/32 (Pre-refunded 3/15/13) - FGIC Insured 100 Erie County Water Authority, New York, Water Revenue Bonds, No Opt. Call AAA 115,132 Series 1990B, 6.750%, 12/01/14 - AMBAC Insured (ETM) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 1998A: 1,000 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,036,300 2,725 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 2,823,918 90 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 93,480 Series 1998H, 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 3,500 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 3,749,059 Fund Bonds, Series 2002B, 5.000%, 4/01/20 (Pre-refunded 4/01/12) - AMBAC Insured 500 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 553,990 Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) - FGIC Insured 1,975 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 2,126,265 Purpose Revenue Bonds, Series 2002A, 5.125%, 1/01/31 (Pre-refunded 1/01/12) - MBIA Insured 450 TSASC Inc., New York, Tobacco Flexible Amortization Bonds, 7/09 at 101.00 AAA 486,041 Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24) (Pre-refunded 7/15/09) ------------------------------------------------------------------------------------------------------------------------------------ 13,235 Total U.S. Guaranteed 14,103,789 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.8% (8.5% OF TOTAL INVESTMENTS) Long Island Power Authority, New York, Electric System General Revenue Bonds, Series 2006A: 1,130 5.000%, 12/01/23 - FGIC Insured 6/16 at 100.00 AAA 1,212,806 870 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 930,161 2,000 New York State Power Authority, General Revenue Bonds, 11/12 at 100.00 Aa2 2,130,580 Series 2002A, 5.000%, 11/15/20 New York State Power Authority, General Revenue Bonds, Series 2006A: 165 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 179,296 110 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 119,090 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 2,116,400 Series 2000HH, 5.250%, 7/01/29 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 6,275 Total Utilities 6,688,333 ------------------------------------------------------------------------------------------------------------------------------------ 53 Nuveen Insured New York Tax-Free Advantage Municipal Fund (NRK) (continued) Portfolio of INVESTMENTS September 30, 2006 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 1.3% (0.8% OF TOTAL INVESTMENTS) $ 640 Niagara Falls Public Water Authority, New York, Water and 7/15 at 100.00 AAA $ 674,637 Sewerage Revenue Bonds, Series 2005, 5.000%, 7/15/28 - XLCA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 73,475 Total Investments (cost $75,391,010) - 149.6% 78,448,858 =============----------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.9% 975,721 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.5)% (27,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 52,424,579 ====================================================================================================================
At least 80% of the Fund's net assets (including net assets attributable to Preferred shares) are invested in municipal securities that are either covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance which ensures the timely payment of principal and interest. Up to 20% of the Fund's net assets (including net assets attributable to Preferred shares) may be invested in municipal securities that are (i) either backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities (also ensuring the timely payment of principal and interest), or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's or Moody's rating. Ratings below BBB by Standard & Poor's Group or Baa by Moody's Investor Service, Inc. are considered to be below investment grade. (4) Backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities which ensure the timely payment of principal and interest. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. See accompanying notes to financial statements. 54 Statement of ASSETS AND LIABILITIES September 30, 2006
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME (NQN) (NVN) (NUN) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $390,511,063, $516,936,353 and $527,989,209, respectively) $408,172,586 $548,977,315 $557,606,556 Cash -- -- -- Receivables: Interest 5,807,318 7,527,534 7,620,331 Investments sold 3,996,975 4,922,013 5,186,913 Other assets 40,232 50,162 59,931 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 418,017,111 561,477,024 570,473,731 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,732,047 2,666,283 3,006,235 Payable for investments purchased 2,924,838 3,406,895 3,574,802 Accrued expenses: Management fees 210,769 281,281 285,386 Other 106,400 132,496 134,327 Preferred share dividends payable 57,354 45,219 67,760 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 5,031,408 6,532,174 7,068,510 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 144,000,000 193,000,000 197,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $268,985,703 $361,944,850 $366,405,221 ==================================================================================================================================== 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) $ 15.18 $ 15.44 $ 15.21 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 177,209 $ 234,352 $ 240,837 Paid-in surplus 248,904,099 327,923,797 335,102,933 Undistributed (Over-distribution of) net investment income 708,393 804,030 392,711 Accumulated net realized gain (loss) from investments and derivative transactions 1,534,479 941,709 1,051,393 Net unrealized appreciation (depreciation) of investments 17,661,523 32,040,962 29,617,347 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $268,985,703 $361,944,850 $366,405,221 ==================================================================================================================================== 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. 55 Statement of ASSETS AND LIABILITIES September 30, 2006 (continued)
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $182,075,138, $170,984,877 and $75,391,010, respectively) $190,533,028 $179,952,525 $78,448,858 Cash -- 156,519 -- Receivables: Interest 2,694,601 2,508,708 970,934 Investments sold 1,836,837 1,111,217 1,111,217 Other assets 5,791 5,979 2,596 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 195,070,257 183,734,948 80,533,605 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft 1,058,476 -- 746,535 Payable for investments purchased 1,299,928 559,897 319,941 Accrued expenses: Management fees 99,717 49,839 20,573 Other 39,966 34,761 16,428 Preferred share dividends payable 25,962 12,535 5,549 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 2,524,049 657,032 1,109,026 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 65,000,000 61,000,000 27,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $127,546,208 $122,077,916 $52,424,579 ==================================================================================================================================== 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) $ 15.31 $ 15.34 $ 14.92 ==================================================================================================================================== 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 278,452 15,184 (95,526) Accumulated net realized gain (loss) from investments and derivative transactions 319,881 95,163 (74,567) Net unrealized appreciation (depreciation) of investments 8,457,890 8,967,648 3,057,848 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $127,546,208 $122,077,916 $52,424,579 ==================================================================================================================================== Authorized shares: Common 200,000,000 Unlimited Unlimited Preferred 1,000,000 Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 56 Statement of OPERATIONS Year Ended September 30, 2006
NEW YORK NEW YORK NEW YORK INVESTMENT QUALITY SELECT QUALITY QUALITY INCOME (NQN) (NVN) (NUN) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $19,135,442 $25,959,191 $26,009,237 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,574,390 3,427,242 3,478,106 Preferred shares - auction fees 360,121 482,798 492,759 Preferred shares - dividend disbursing agent fees 30,000 30,000 40,000 Shareholders' servicing agent fees and expenses 37,055 39,313 37,767 Custodian's fees and expenses 104,408 130,735 149,315 Directors'/Trustees' fees and expenses 8,791 12,043 12,163 Professional fees 24,587 28,741 30,119 Shareholders' reports - printing and mailing expenses 41,040 50,829 53,576 Stock exchange listing fees 9,983 9,977 9,964 Investor relations expense 41,462 54,296 55,220 Portfolio insurance expense -- 6,428 -- Other expenses 34,321 42,617 40,092 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,266,158 4,315,019 4,399,081 Custodian fee credit (38,045) (69,909) (54,204) Expense reimbursement -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,228,113 4,245,110 4,344,877 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 15,907,329 21,714,081 21,664,360 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 1,505,810 782,279 923,472 Change in net unrealized appreciation (depreciation) of investments (2,357,937) (2,287,599) (1,988,253) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (852,127) (1,505,320) (1,064,781) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (2,983,982) (4,842,564) (4,914,770) From accumulated net realized gains (1,531,013) (1,136,286) (1,218,931) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (4,514,995) (5,978,850) (6,133,701) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $10,540,207 $14,229,911 $14,465,878 ====================================================================================================================================
See accompanying notes to financial statements. 57 Statement of OPERATIONS Year Ended September 30, 2006 (continued)
INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK DIVIDEND TAX-FREE PREMIUM INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $8,823,800 $8,451,802 $3,562,380 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 1,215,113 1,154,579 502,558 Preferred shares - auction fees 162,601 152,594 67,541 Preferred shares - dividend disbursing agent fees 20,000 10,000 10,000 Shareholders' servicing agent fees and expenses 15,495 1,997 872 Custodian's fees and expenses 52,985 50,711 25,058 Directors'/Trustees' fees and expenses 4,236 3,824 1,578 Professional fees 16,632 16,213 12,636 Shareholders' reports - printing and mailing expenses 14,194 19,717 11,394 Stock exchange listing fees 9,971 677 299 Investor relations expense 20,666 19,650 10,235 Portfolio insurance expense -- -- -- Other expenses 14,575 16,996 13,136 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 1,546,468 1,446,958 655,307 Custodian fee credit (21,353) (13,147) (8,014) Expense reimbursement -- (545,630) (251,783) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 1,525,115 888,181 395,510 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 7,298,685 7,563,621 3,166,870 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments 293,978 95,249 89,791 Change in net unrealized appreciation (depreciation) of investments (707,934) (701,606) (257,428) ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (413,956) (606,357) (167,637) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (1,528,170) (1,625,107) (745,283) From accumulated net realized gains (419,333) (237,461) (12,658) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (1,947,503) (1,862,568) (757,941) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $4,937,226 $5,094,696 $2,241,292 ====================================================================================================================================
See accompanying notes to financial statements. 58 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 9/30/06 9/30/05 9/30/06 9/30/05 9/30/06 9/30/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 15,907,329 $ 16,823,792 $ 21,714,081 $ 22,714,987 $ 21,664,360 $ 22,347,087 Net realized gain (loss) from investments 1,505,810 11,280,637 782,279 7,520,987 923,472 7,715,858 Net realized gain (loss) from forward swaps -- -- -- -- -- -- Change in net unrealized appreciation (depreciation) of investments (2,357,937) (14,661,338) (2,287,599) (9,640,550) (1,988,253) (9,585,443) Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- -- Distributions to Preferred Shareholders: From net investment income (2,983,982) (2,241,432) (4,842,564) (3,192,789) (4,914,770) (3,322,753) From accumulated net realized gains (1,531,013) (207,408) (1,136,286) (165,437) (1,218,931) (134,345) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 10,540,207 10,994,251 14,229,911 17,237,198 14,465,878 17,020,404 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (13,281,844) (16,586,798) (17,869,346) (21,419,779) (18,245,845) (21,167,079) From accumulated net realized gains (9,475,383) (4,864,391) (6,350,504) (2,999,710) (6,512,243) (2,167,643) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (22,757,227) (21,451,189) (24,219,850) (24,419,489) (24,758,088) (23,334,722) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (12,217,020) (10,456,938) (9,989,939) (7,182,291) (10,292,210) (6,314,318) Net assets applicable to Common shares at the beginning of year 281,202,723 291,659,661 371,934,789 379,117,080 376,697,431 383,011,749 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $268,985,703 $281,202,723 $361,944,850 $371,934,789 $366,405,221 $376,697,431 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 708,393 $ 1,076,914 $ 804,030 $ 1,962,665 $ 392,711 $ 2,027,816 ====================================================================================================================================
See accompanying notes to financial statements. 59 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 9/30/06 9/30/05 9/30/06 9/30/05 9/30/06 9/30/05 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,298,685 $ 7,599,744 $ 7,563,621 $ 7,780,214 $ 3,166,870 $ 3,159,002 Net realized gain (loss) from investments 293,978 3,350,095 95,249 1,654,938 89,791 194,563 Net realized gain (loss) from forward swaps -- -- -- -- -- (164,162) Change in net unrealized appreciation (depreciation) of investments (707,934) (4,007,124) (701,606) (804,193) (257,428) 748,362 Change in net unrealized appreciation (depreciation) of forward swaps -- -- -- -- -- 71,962 Distributions to Preferred Shareholders: From net investment income (1,528,170) (977,190) (1,625,107) (1,006,110) (745,283) (443,675) From accumulated net realized gains (419,333) (91,205) (237,461) (58,911) (12,658) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 4,937,226 5,874,320 5,094,696 7,565,938 2,241,292 3,566,052 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (6,067,834) (7,358,861) (6,203,208) (6,835,866) (2,409,814) (2,701,380) From accumulated net realized gains (2,743,643) (1,528,887) (1,482,563) (921,520) (89,226) -- ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (8,811,477) (8,887,748) (7,685,771) (7,757,386) (2,499,040) (2,701,380) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,874,251) (3,013,428) (2,591,075) (191,448) (257,748) 864,672 Net assets applicable to Common shares at the beginning of year 131,420,459 134,433,887 124,668,991 124,860,439 52,682,327 51,817,655 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $127,546,208 $131,420,459 $122,077,916 $124,668,991 $52,424,579 $52,682,327 ==================================================================================================================================== Undistributed (Over-distribution of) net investment income at the end of year $ 278,452 $ 602,243 $ 15,184 $ 279,899 $ (95,526) $ (109,502) ====================================================================================================================================
See accompanying notes to financial statements. 60 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. 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 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 forward swap contracts 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 a forward swap contract, 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 is unavailable or inappropriate, the Board of Directors/Trustees of the Funds, or its designee, may establish a fair value for the investment. Temporary investments in securities that have variable rate and demand features qualifying them as short-term investments are valued at amortized cost, which approximates market value. Investment Transactions Investment transactions are recorded on a trade date basis. Realized gains and losses from transactions are determined on the specific identification method. Investments purchased on a when-issued 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/delayed delivery purchase commitments. At September 30, 2006, Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) had outstanding when-issued/delayed delivery purchase commitments of $559,897 and $319,941, respectively. There were no such outstanding purchase commitments in any of the other Funds. Investment Income Interest income, which includes the amortization of premiums and accretion of discounts for financial reporting purposes, is recorded on an accrual basis. Investment income also includes paydown gains and losses, if any. 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, 2006, have been designated Exempt Interest Dividends. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 61 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 by the Funds on each Series is determined every seven days, pursuant to a dutch auction process overseen by the auction agent, and is payable at the end of each rate period. The number of Preferred shares outstanding, by Series and in total, for each Fund is as follows:
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 attributable to Preferred shares) in municipal securities which are either (i) backed by an escrow or trust containing sufficient U.S. Government or U.S. Government agency securities, or (ii) rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, S&P or Fitch) or unrated but judged to be of comparable quality by the Adviser. Each insured municipal security is covered by Original Issue Insurance, Secondary Market Insurance or Portfolio Insurance. Such insurance does not guarantee the market value of the municipal securities or the value of the Funds' Common shares. Original Issue Insurance and Secondary Market Insurance remain in effect as long as the municipal securities covered thereby remain outstanding and the insurer remains in business, regardless of whether the Funds ultimately dispose of such municipal securities. Consequently, the market value of the municipal securities covered by Original Issue Insurance or Secondary Market Insurance may reflect value attributable to the insurance. Portfolio Insurance, in contrast, is effective only while the municipal securities are held by the Funds. Accordingly, neither the prices used in determining the market value of the underlying municipal securities nor the Common share net asset value of the Funds include value, if any, attributable to the Portfolio Insurance. Each policy of the Portfolio Insurance does, however, give the Funds the right to obtain permanent insurance with respect to the municipal security covered by the Portfolio Insurance policy at the time of its sale. 62 Forward Swap Transactions The Funds are authorized to invest in certain derivative financial instruments. The Funds' use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the notional amount of the forward swap contract and the termination date of the swap (which is akin to a bond's maturity). The value of the Fund's swap commitment would increase or decrease based primarily on the extent to which long-term interest rates for bonds having a maturity of the swap's termination date increases or decreases. The Funds may terminate a swap contract prior to the effective date, at which point a realized gain or loss is recognized. When a forward swap is terminated, it ordinarily does not involve the delivery of securities or other underlying assets or principal, but rather is settled in cash on a net basis. 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 reduce 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, 2006, 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 None of the Funds engaged in transactions in their own shares during the fiscal year ended September 30, 2006, nor during the fiscal year ended September 30, 2005. 3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended September 30, 2006, 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 $66,266,905 $82,361,141 $79,222,563 $27,262,730 $20,287,785 $6,228,567 Sales and maturities 75,334,068 89,118,466 87,526,706 28,510,344 19,806,837 5,864,530 ============================================================================================================
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. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their Federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. 63 Notes to FINANCIAL STATEMENTS (continued) At September 30, 2006, 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 $390,288,399 $516,820,406 $527,870,711 ================================================================================ INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) -------------------------------------------------------------------------------- Cost of investments $182,024,297 $170,927,488 $75,509,660 ================================================================================ Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2006, were as follows: NEW YORK NEW YORK NEW YORK INVESTMENT SELECT QUALITY QUALITY QUALITY INCOME (NQN) (NVN) (NUN) -------------------------------------------------------------------------------- Gross unrealized: Appreciation $17,946,059 $32,202,215 $29,791,155 Depreciation (61,872) (45,306) (55,310) -------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $17,884,187 $32,156,909 $29,735,845 ================================================================================ INSURED INSURED INSURED NEW YORK NEW YORK NEW YORK PREMIUM DIVIDEND TAX-FREE INCOME ADVANTAGE ADVANTAGE (NNF) (NKO) (NRK) -------------------------------------------------------------------------------- Gross unrealized: Appreciation $8,539,582 $9,068,959 $3,060,352 Depreciation (30,851) (43,922) (121,154) -------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $8,508,731 $9,025,037 $2,939,198 ================================================================================ The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at September 30, 2006, the Funds' tax year end, 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 * $1,486,801 $2,127,474 $1,671,486 $728,205 $459,741 $101,272 Undistributed net ordinary income ** 39,794 220 22,007 133 -- -- Undistributed net long-term capital gains 1,534,546 941,709 1,060,604 319,882 95,163 44,282 =====================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on September 1, 2006, paid on October 2, 2006. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. 64 The tax character of distributions paid during the tax years ended September 30, 2006 and September 30, 2005, 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 2006 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) ----------------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income $16,493,057 $22,926,465 $23,334,752 $7,663,027 $7,871,436 $3,163,396 Distributions from net ordinary income ** -- -- 31,444 -- 4,227 -- Distributions from net long-term capital gains *** 11,006,407 7,486,790 7,731,174 3,162,976 1,716,383 104,088 =======================================================================================================================
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 -- =======================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds designated as a long-term capital gain dividend, pursuant to Internal Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and profits of the Funds related to net capital gain to zero for the tax year ended September 30, 2006. 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 Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"), 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 ================================================================================ 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, 2006, the complex-level fee rate was .1857%. 65 Notes to FINANCIAL STATEMENTS (continued) 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 its Officers, all of whom receive remuneration for their services to the Funds from the Adviser or its affiliates. The Board of Directors/Trustees has adopted a deferred compensation plan for independent Directors/Trustees that enables Directors/Trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from certain Nuveen advised Funds. Under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of select Nuveen advised Funds. For the first ten years of Insured 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. 66 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. NEW ACCOUNTING PRONOUNCEMENTS Financial Accounting Standards Board Interpretation No. 48 On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 Accounting for Uncertainty in Income Taxes (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and does not expect the adoption of FIN 48 will have a significant impact on the net assets or results of operations of the Funds. Financial Accounting Standards Board Statement on Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards (SFAS) No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this standard relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of September 30, 2006, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements included within the Statement of Operations for the period. 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, 2006, to shareholders of record on October 15, 2006, 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 $.0555 $.0595 $.0565 $.0570 $.0615 $.0545 ============================================================================================================
67 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: 2006 $15.87 $ .90 $ (.05) $(.17) $(.09) $ .59 $(.75) $(.53) $(1.28) 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) NEW YORK SELECT QUALITY (NVN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2006 15.87 .93 (.07) (.21) (.05) .60 (.76) (.27) (1.03) 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) NEW YORK QUALITY INCOME (NUN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2006 15.64 .90 (.05) (.20) (.05) .60 (.76) (.27) (1.03) 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) ==================================================================================================================================== 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: 2006 $ -- $15.18 $13.99 2.39% 4.03% 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 NEW YORK SELECT QUALITY (NVN) ------------------------------------------------------------------------------------------ Year Ended 9/30: 2006 -- 15.44 14.34 4.53 4.10 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 NEW YORK QUALITY INCOME (NUN) ------------------------------------------------------------------------------------------ Year Ended 9/30: 2006 -- 15.21 14.11 4.27 4.06 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 ========================================================================================== 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: 2006 $268,986 1.22% 5.92% 1.21% 5.94% 16% 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 NEW YORK SELECT QUALITY (NVN) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2006 361,945 1.20 6.03 1.18 6.05 15 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 NEW YORK QUALITY INCOME (NUN) ----------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2006 366,405 1.21 5.95 1.20 5.96 14 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 ============================================================================================================================= 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: 2006 $144,000 $25,000 $71,699 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 NEW YORK SELECT QUALITY (NVN) -------------------------------------------------------------------- Year Ended 9/30: 2006 193,000 25,000 71,884 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 NEW YORK QUALITY INCOME (NUN) -------------------------------------------------------------------- Year Ended 9/30: 2006 197,000 25,000 71,498 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 ====================================================================
* Total 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. 68-69 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: 2006 $15.78 $ .88 $ (.06) $(.18) $(.05) $ .59 $(.73) $(.33) $(1.06) 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) INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2006 15.67 .95 (.08) (.20) (.03) .64 (.78) (.19) (.97) 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: 2006 15.00 .90 (.05) (.21) --**** .64 (.69) (.03) (.72) 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: 2006 $ -- $15.31 $14.26 3.30% 3.96% 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 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ----------------------------------------------------------------------------------------------- Year Ended 9/30: 2006 -- 15.34 14.85 7.92 4.29 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: 2006 -- 14.92 14.08 5.79 4.38 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: 2006 $127,546 1.22% 5.75% 1.21% 5.77% 14% 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 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2006 122,078 1.20 5.79 .73 6.26 11 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: 2006 52,425 1.27 5.62 .77 6.13 8 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: 2006 $65,000 $25,000 $74,056 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 INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ---------------------------------------------------------------------------- Year Ended 9/30: 2006 61,000 25,000 75,032 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: 2006 27,000 25,000 73,541 2005 27,000 25,000 73,780 2004 27,000 25,000 72,979 2003(b) 27,000 25,000 71,894 ============================================================================
* Annualized. ** Total 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. **** Per Share Distributions from Capital Gain to Preferred Shareholders rounds to less than $.01 per share. + 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. 70-71 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, 167 3/28/49 the Board Inc., Nuveen Investments, LLC, Nuveen Advisory Corp. and 333 W. Wacker Drive and Board Nuveen Institutional Advisory Corp.(3); formerly, Director Chicago, IL 60606 Member (1996-2006) 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 Lead Independent 1997 Private Investor and Management Consultant. 167 8/22/40 Board member 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Lawrence H. Brown Board member 1993 Retired (since 1989) as Senior Vice President of The 167 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 167 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 and 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, Tippie College of Business, University of Iowa (since 167 3/6/48 June 2006); formerly, Dean and Distinguished Professor of Finance, 333 W. Wacker Drive School of Business at the University of Connecticut (2003-2006); Chicago, IL 60606 previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005 - October 2005). ------------------------------------------------------------------------------------------------------------------------------------ David J. Kundert Board member 2005 Retired (since 2004) as Chairman, JPMorgan Fleming Asset 165 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; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens. 72 NUMBER OF PORTFOLIOS IN POSITION(S) YEAR FIRST PRINCIPAL OCCUPATION(S) FUND COMPLEX NAME, BIRTHDATE HELD WITH ELECTED OR INCLUDING OTHER DIRECTORSHIPS OVERSEEN BY AND ADDRESS THE FUNDS APPOINTED(2) DURING PAST 5 YEARS BOARD MEMBER ------------------------------------------------------------------------------------------------------------------------------------ BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS (CONTINUED): ------------------------------------------------------------------------------------------------------------------------------------ William J. Schneider Board member 1997 Chairman of Miller-Valentine Partners Ltd., a real estate 167 9/24/44 investment company; formerly, Senior Partner and Chief 333 W. Wacker Drive Operating Officer (retired, 2004) of Miller-Valentine Chicago, IL 60606 Group; formerly, Vice President, Miller-Valentine Realty; Board Member, Chair of the Finance Committee and member of the Audit Committee of Premier Health Partners, the not-for-profit company of Miami Valley Hospital; Vice President, Dayton Philharmonic Orchestra Association; Board Member, Regional Leaders Forum, which promotes cooperation on economic development issues; Director, Dayton Development Coalition; formerly, Member, Community Advisory Board, National City Bank, Dayton, Ohio and Business Advisory Council, Cleveland Federal Reserve Bank. ------------------------------------------------------------------------------------------------------------------------------------ Judith M. Stockdale Board member 1997 Executive Director, Gaylord and Dorothy Donnelley 167 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, 167 1/22/50 Northwestern University (since 1997); Director (since 2003), 333 W. Wacker Drive Chicago Board Options Exchange; formerly, Director 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 167 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., Symphony Asset Management LLC (since 2003) Tradewinds NWQ Global Investors, LLC and Santa Barbara Asset Management, LLC; (since 2006); Chartered Financial Analyst. 73 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 167 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 167 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 and Treasurer of Nuveen Investments, LLC 167 11/28/67 and of Nuveen Investments, Inc. (since 1999); Vice President 333 W. Wacker Drive and Treasurer of Nuveen Asset Management (since 2002) Chicago, IL 60606 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); Treasurer of Symphony Asset Management LLC (since 2003) and Santa Barbara Asset Management, LLC (since 2006); Assistant Treasurer, Tradewinds NWQ Global Investors, LLC (since 2006); formerly, Vice President and Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Chartered Financial Analyst. ------------------------------------------------------------------------------------------------------------------------------------ John N. Desmond Vice President 2005 Vice President, Director of Investment Operations, Nuveen 167 8/24/61 Investments, LLC (since January 2005); formerly, Director, 333 W. Wacker Drive Business Manager, Deutsche Asset Management (2003-2004), Chicago, IL 60606 Director, Business Development and Transformation, Deutsche Trust Bank Japan (2002-2003); previously, Senior Vice President, Head of Investment Operations and Systems, Scudder Investments Japan, (2000-2002), Senior Vice President, Head of Plan Administration and Participant Services, Scudder Investments (1995-2002). ------------------------------------------------------------------------------------------------------------------------------------ Jessica R. Droeger Vice President 1998 Vice President (since 2002), Assistant Secretary and 167 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 167 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 167 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 (since 2001) of Nuveen Asset Management; Vice President (since 2002) of Nuveen Investments Advisers Inc.; Chartered Financial Analyst. 74 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): ------------------------------------------------------------------------------------------------------------------------------------ Stephen D. Foy Vice President 1998 Vice President (since 1993) and Funds Controller (since 1998) 167 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. ------------------------------------------------------------------------------------------------------------------------------------ Walter M. Kelly Chief 2003 Assistant Vice President and Assistant Secretary of the 167 2/24/70 Compliance Nuveen Funds (since 2003); Assistant Vice President and 333 West Wacker Drive Officer and Assistant General Counsel (since 2003) of Nuveen Investments, Chicago, IL 60606 Assistant LLC; previously, Associate (2001-2003) at the law firm of Vedder, Vice President Price, Kaufman & Kammholz. ------------------------------------------------------------------------------------------------------------------------------------ David J. Lamb Vice President 2000 Vice President (since 2000) of Nuveen Investments, 167 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). 167 8/27/61 333 W. Wacker Drive Chicago, IL 60606 ------------------------------------------------------------------------------------------------------------------------------------ Larry W. Martin Vice President 1988 Vice President, Assistant Secretary and Assistant General 167 7/27/51 and Assistant Counsel of Nuveen Investments, LLC; formerly, Vice President 333 W. Wacker Drive Secretary and 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), Symphony Asset Management LLC (since 2003) and Tradewinds NWQ Global Investors, LLC and Santa Barbara Asset Management, LLC (since 2006).
(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. 75 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS The Board of Trustees is responsible for overseeing the performance of the investment adviser to the Funds and determining whether to continue the advisory arrangements. At a meeting held on May 23-25, 2006 (the "May Meeting"), the Board of Trustees of the Funds, including the independent Trustees, unanimously approved the continuance of the Investment Management Agreement between each Fund and NAM (the "Fund Adviser"). THE APPROVAL PROCESS During the course of the year, the Board received a wide variety of materials relating to the services provided by the Fund Adviser and the performance of each Fund. To assist the Board in its evaluation of the advisory contract with the Fund Adviser at the May Meeting, the independent Trustees received extensive materials in advance of their meeting which outlined, among other things: o the nature, extent and quality of services provided by the Fund Adviser; o the organization and business operations of the Fund Adviser, including the responsibilities of various departments and key personnel; o the Fund's past performance, the Fund's performance compared to funds of similar investment objectives compiled by an independent third party and to customized benchmarks; o the profitability of the Fund Adviser and certain industry profitability analyses for unaffiliated advisers; o the expenses of the Fund Adviser in providing the various services; o the advisory fees (gross and net management fees) and total expense ratios of the Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by Lipper (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") to the respective Fund (as applicable); o the advisory fees the Fund Adviser assesses to other types of investment products or clients; o the soft dollar practices of the Fund Adviser, if any; and o from independent legal counsel, a legal memorandum describing, among other things, the duties of the Trustees under the Investment Company Act of 1940 (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 May Meeting, the Fund Adviser 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 the advisory contract with the Fund Adviser. 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 the Fund Adviser; (b) the investment performance of the Fund and the Fund Adviser; (c) the costs of the services to be provided and profitability of the Fund Adviser and its affiliates; (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 reviewing the Fund Adviser, the Trustees considered the nature, extent and quality of the Fund Adviser's services. The Trustees reviewed materials outlining, among other things, the Fund Adviser's organization and business; the types of services that the Fund Adviser or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and any initiatives and enhancements Nuveen has taken for its municipal fund product line. In connection with their continued service as Trustees, the Trustees also have a good understanding of the Fund Adviser's organization, operations and personnel. In this regard, the Trustees are familiar with and have evaluated the professional experience, qualifications and credentials of the Fund Adviser's personnel. The Trustees further reviewed materials describing, among other things, the teams and personnel 76 involved in the investment, research, risk-management and operational processes involved in managing municipal funds and their respective functions. Given the Trustees' experience with the Funds and Fund Adviser, the Trustees recognized the demonstrated history of care and depth of experience of the respective personnel in managing these Funds. In this regard, the Trustees considered the continued quality of the Fund Adviser's investment process in making portfolio management decisions as well as additional refinements and improvements adopted to the portfolio management processes noted below. With respect to the services provided to municipal funds, including the Funds, the Trustees noted that the Fund Adviser continues to make refinements to its portfolio management process including, among other things, the increased use of derivatives to enhance management of risk, additional analytical software for research staff and improved municipal pricing processes. In addition to advisory services, the independent Trustees considered the quality of any administrative or non-advisory services provided. The Fund Adviser 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 connection with the review of the Investment Management Agreement, the Trustees considered the extent and quality of these other services which include, among other things, providing: product management (e.g., product positioning, performance benchmarking, risk management); fund administration (e.g., daily net asset value pricing and reconciliation, tax reporting, fulfilling regulatory filing requirements); oversight of third party service providers; administration of board relations (e.g., organizing board meetings and preparing related materials); compliance (e.g., monitoring compliance with investment policies and guidelines and regulatory requirements); and legal support (e.g., helping prepare and file registration statements, amendments thereto, proxy statements and responding to regulatory requests and/or inquiries). As the Funds operate in a highly regulated industry and given the importance of compliance, the Trustees considered, in particular, the additions of experienced personnel to the compliance teams and the enhancements to technology and related systems to support the compliance activities for the Funds (including a new reporting system for quarterly portfolio holdings). In addition to the foregoing, the Trustees also noted the additional services that the Fund Adviser or its affiliates provide to closed-end funds, including, in particular, secondary market support activities. The Trustees recognized Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of initiatives designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include providing advertising and other media relations programs, continued contact with analysts, maintaining and enhancing its website for closed-end funds, and targeted advisor communication programs. With respect to funds that utilize leverage through the issuance of preferred shares, the Trustees noted Nuveen's continued support for the preferred shares by maintaining, among other things, an in-house preferred trading desk; designating a product manager whose responsibilities include creating and disseminating product information and managing relations in connection with the preferred share auction; and maintaining systems necessary to test compliance with rating agency requirements. Based on their review, the Trustees found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Investment Management Agreement were of a high level and were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUND AND FUND ADVISER The Board considered the investment performance for each Fund, including the Fund's historic performance as well as its performance compared to funds with similar investment objectives identified by an independent third party (the "Performance Peer Group") and portfolio level performance against customized benchmarks, as described below. In evaluating the performance information, in certain instances, the Trustees noted that the closest Performance Peer Group for a Fund still may not adequately reflect such Fund's investment objectives, strategies and portfolio duration, thereby limiting the usefulness of the comparisons of such Fund's performance with that of the Performance Peer Group. With respect to state specific municipal funds, the Trustees recognized that certain state municipal funds do not have a corresponding state specific Performance Peer Group in which case their performance is measured against a more general municipal category for various states. The closed-end state municipal funds that do not have corresponding state-specific Performance Peer Groups are from Arizona, Connecticut, Georgia, Maryland, Massachusetts, Missouri, North Carolina, Ohio, Texas, and Virginia. Further, due to a lack of state-specific unleveraged categories, certain unleveraged state municipal funds are included in their leveraged state category (such as, the Nuveen California Select Tax-Free Income Fund, Nuveen California Municipal Value Fund, Nuveen New York Select Tax-Free Income Fund and Nuveen New York Municipal Value Fund). In reviewing performance, the Trustees reviewed performance information including, among other things, total return information compared with the Fund's Performance Peer Group for the one-, three- and five-year periods (as applicable) ending December 31, 2005. The Trustees also reviewed the Fund's portfolio level performance (which does not reflect fund level fees and expenses) compared to customized portfolio-level benchmarks for the one- and three-year periods ending December 31, 2005 (as applicable). This analysis is designed to assess the efficacy of investment decisions against appropriate measures of risk and total return, within specific market segments. This information supplements the Fund performance information provided to the Board at each of their quarterly meetings. Based on their review, the Trustees determined that the respective Fund's absolute and relative investment performance over time had been satisfactory. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES In evaluating the management fees and expenses of a Fund, the Board reviewed, among other things, the Fund's advisory fees (net and gross management fees) and total expense ratios (before and after expense reimbursements and/or waivers) in absolute terms as well as comparisons to the gross management fees (before waivers), net management fees (after waivers) and total expense ratios (before and after waivers) of comparable funds in the Peer Universe and the Peer Group. The Trustees reviewed data regarding the construction of Peer Groups as well as the methods of measurement for the fee and expense analysis and the performance analysis. In certain cases, due to the small number of peers in the Peer Universe, the Peer Universe and Peer Group may be the same. Further, the Trustees recognized that in certain cases the closest Peer Universe and/or Peer Group did not 77 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) adequately reflect the Fund's investment objectives and strategies limiting the usefulness of comparisons. In reviewing comparisons, the Trustees also considered the size of the Peer Universe and/or Peer Group, the composition of the Peer Group (including differences in the use of leverage and insurance) as well as differing levels of fee waivers and/or expense reimbursements. In this regard, the Trustees considered the fund-level and complex-wide breakpoint schedules (described in further detail below) and any fee waivers and reimbursements provided by Nuveen (applicable, in particular, for certain funds launched since 1999). Based on their review of the fee and expense information provided, the Trustees determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS The Trustees further reviewed data comparing the advisory fees of the Fund Adviser with fees the Fund Adviser charges to other clients, including municipal managed accounts. In general, the fees charged for separate accounts are somewhat lower than the fees assessed to the Funds. The Trustees recognized that the differences in fees are attributable to a variety of factors, including the differences in services provided, product distribution, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Trustees noted, in particular, that the range of services provided to the Funds is more extensive than that provided to managed separate accounts. As described in further detail above, such additional services include, but are not limited to, providing: product management, fund administration, oversight of third party service providers, administration of board relations, and legal support. Funds further operate in a highly regulated industry requiring extensive compliance functions compared to the other investment products. In addition to the costs of the additional services, administrative costs may also be greater for funds as the average account size for separate accounts is notably larger than the retail accounts of funds. Given the differences in the product structures, particularly the extensive services provided to closed-end municipal funds, the Trustees believe such facts justify the different levels of fees. 3. PROFITABILITY OF FUND ADVISER In conjunction with its review of fees, the Trustees also considered the profitability of Nuveen Investments for advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers). The Trustees reviewed data comparing Nuveen's profitability with other fund sponsors prepared by three independent third party service providers as well as comparisons of the revenues, expenses and profits margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. The Trustees further reviewed the 2005 Annual Report for Nuveen Investments. In considering profitability, the Trustees recognized the inherent limitations in determining profitability as well as the difficulties in comparing the profitability of other unaffiliated advisers. Profitability may be affected by numerous factors, including the methodology for allocating expenses, the adviser's business mix, the types of funds managed, the adviser's capital structure and cost of capital. Further, individual fund or product line profitability of other sponsors is generally not publicly available. Accordingly, the profitability information that is publicly available from various investment advisory or management firms may not be representative of the industry. Notwithstanding the foregoing, in reviewing profitability, the Trustees reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. In this regard, the methods of allocation used appeared reasonable. The Trustees also, to the extent available, compared Nuveen's profitability margins (including pre- and post-marketing profit margins) with the profitability of various unaffiliated management firms. The Trustees noted that Nuveen's profitability is enhanced due to its efficient internal business model. The Trustees also recognized that while a number of factors affect profitability, Nuveen's profitability may change as fee waivers and/or expense reimbursement commitments of Nuveen to various funds in the Nuveen complex expire. To keep apprised of profitability and developments that may affect profitability, the Trustees have requested profitability analysis be provided periodically during the year. Based on their review, the Trustees were satisfied that the Fund Adviser's level of profitability was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Trustees also considered any other revenues paid to the Fund Adviser as well as any indirect benefits (such as soft dollar arrangements, if any) the Fund Adviser 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. 78 D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Trustees recognized the potential benefits resulting from the costs of a fund being spread over a larger asset base as a fund grows. To help ensure the shareholders share in these benefits, the Trustees have reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees as the applicable Fund's assets grow. In addition to advisory fee breakpoints as assets in a respective Fund rise, after lengthy discussions with management, the Board also approved a complex-wide fee arrangement that was introduced on August 1, 2004. Pursuant to the complex-wide fee arrangement, the fees of the funds in the Nuveen complex, including the Funds, are reduced as the assets in the fund complex reach certain levels. 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 noted that 2005 was the first full year to reflect the fee reductions from the complex wide fee arrangement. 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. E. INDIRECT BENEFITS In evaluating fees, the Trustees also considered any indirect benefits or profits the Fund Adviser or its affiliates may receive as a result of its relationship with each Fund. In this regard, the Trustees considered revenues received by affiliates of the Fund Adviser for serving as agent at Nuveen's preferred trading desk and for serving as a co-manager in the initial public offering of new closed-end exchange traded funds. In addition to the above, the Trustees considered whether the Fund Adviser received any benefits from soft dollar arrangements. With respect to NAM, the Trustees noted that 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; however, the Fund Adviser may from time to time receive and have access to research generally provided to institutional clients. 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 the Fund Adviser's fees are reasonable in light of the services provided to each Fund, and that the renewal of the Investment Management Agreements should be approved. 79 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 CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the 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. 80 Automatic Dividend REINVESTMENT PLAN NOTICE OF AMENDMENT TO THE TERMS AND CONDITIONS These Funds are amending the terms and conditions of their Automatic Dividend Reinvestment Plan (the "Plan") as further described below effective with the close of business on January 2, 2007. THESE CHANGES ARE INTENDED TO ENABLE PLAN PARTICIPANTS UNDER CERTAIN CIRCUMSTANCES TO REINVEST FUND DISTRIBUTIONS AT A LOWER AGGREGATE COST THAN IS POSSIBLE UNDER THE EXISTING PLAN. Shareholders who do not wish to continue as participants under the amended Plan may withdraw from the Plan by notifying the Plan Agent prior to the effective date of the amendments. Participants should refer to their Plan document for notification instructions, or may simply call Nuveen at (800) 257-8787. Fund shareholders who elect to participate in the Plan are able to have Fund distributions consisting of income dividends, realized capital gains and returns of capital automatically reinvested in additional Fund shares. Under the Plan's existing terms, the Plan Agent purchases Fund shares in the open market if the Fund's shares are trading at a discount to their net asset value on the payable date for the distribution. If the Fund's shares are trading at or above their net asset value on the payable date for the distribution, the Plan Agent purchases newly-issued Fund shares directly from the Fund at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. Under the Plan's amended terms, if the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value. This change will permit Plan participants under these circumstances to reinvest Fund distributions at a lower aggregate cost than is possible under the existing Plan. 81 Notes 82 Other Useful INFORMATION 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, 2006, 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 Company Boston, MA TRANSFER AGENT AND SHAREHOLDER SERVICES State Street Bank & Trust Company Nuveen Funds P.O. Box 43071 Providence, RI 02940-3071 (800) 257-8787 LEGAL COUNSEL Chapman and Cutler LLP Chicago, IL INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Ernst & Young LLP Chicago, IL 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 $149 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 Learn more o Fund details about Nuveen Funds at o Daily financial news WWW.NUVEEN.COM/CEF o Investor education o Interactive planning tools Logo: NUVEEN Investments EAN-B-0906D 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 the Audit Committee approved in advance all audit services and non-audit services that Ernst & Young LLP provided to the Fund, except for those non-audit services that were subject to the pre-approval exception under Rule 2-01 of Regulation S-X (the "pre-approval exception"). The pre-approval exception for services provided directly to the Fund waives the pre-approval requirement for services other than audit, review or attest services if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid by the Fund to its accountant during the fiscal year in which the services are provided; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the audit is completed. The Audit Committee has delegated certain pre-approval responsibilities to its Chairman (or, in his absence, any other member of the Audit Committee). SERVICES THAT THE FUND'S AUDITOR BILLED TO THE FUND
AUDIT FEES BILLED AUDIT-RELATED FEES TAX FEES ALL OTHER FEES FISCAL YEAR ENDED TO FUND (1) BILLED TO FUND (2) BILLED TO FUND (3) BILLED TO FUND (4) ---------------------------------------------------------------------------------------------------------------------- September 30, 2006 $ 10,589 $ 0 $ 400 $ 2,950 ---------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------------- September 30, 2005 $ 10,000 $ 0 $ 608 $ 2,750 ---------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services other than "Audit Fees", "Audit Related Fees", and "Tax Fees". 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 (1) SERVICE PROVIDERS -------------------------------------------------------------------------------------------------- September 30, 2006 $ 0 $ 2,200 $ 0 -------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception -------------------------------------------------------------------------------------------------- September 30, 2005 $ 0 $ 2,200 $ 0 -------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception --------------------------------------------------------------------------------------------------
(1) The amounts reported for the Fund under the column heading "Tax Fees" represents amounts billed to the Adviser exclusively for the preparation for the Fund's tax return, the cost of which is borne by the Adviser. In the aggregate, for all Nuveen funds for which Ernst & Young LLP serves as independent registered public accounting firm, these fees amounted to $275,000 in 2006 and $282,575 in 2005. NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the 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, 2006 $ 3,350 $ 2,200 $ 0 $ 5,550 September 30, 2005 $ 3,358 $ 2,200 $ 0 $ 5,558
"Non-Audit Fees billed to Adviser" for both fiscal year ends represent "Tax Fees" billed to Adviser in their respective amounts from the previous table. Audit Committee Pre-Approval Policies and Procedures. Generally, the Audit Committee must approve (i) all non-audit services to be performed for the Fund by the Fund's independent accountants and (ii) all audit and non-audit services to be performed by the Fund's independent accountants for the Affiliated Fund Service Providers with respect to operations and financial reporting of the Fund. Regarding tax and research projects conducted by the independent accountants for the Fund and Affiliated Fund Service Providers (with respect to operations and financial reports of the Fund) such engagements will be (i) pre-approved by the Audit Committee if they are expected to be for amounts greater than $10,000; (ii) reported to the Audit Committee chairman for his verbal approval prior to engagement if they are expected to be for amounts under $10,000 but greater than $5,000; and (iii) reported to the Audit Committee at the next Audit Committee meeting if they are expected to be for an amount under $5,000. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The registrant's Board 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. The registrant invests its assets primarily in municipal bonds and cash management securities. On rare occasions the registrant may acquire, directly or through a special purpose vehicle, equity securities of a municipal bond issuer whose bonds the registrant already owns when such bonds have deteriorated or are expected shortly to deteriorate significantly in credit quality. The purpose of acquiring equity securities generally will be to acquire control of the municipal bond issuer and to seek to prevent the credit deterioration or facilitate the liquidation or other workout of the distressed issuer's credit problem. In the course of exercising control of a distressed municipal issuer, NAM may pursue the registrant's interests in a variety of ways, which may entail negotiating and executing consents, agreements and other arrangements, and otherwise influencing the management of the issuer. NAM does not consider such activities proxy voting for purposes of Rule 206(4)-6 under the 1940 Act, but nevertheless provides reports to the registrant's Board of Trustees on its control activities on a quarterly basis. In the rare event that a municipal issuer were to issue a proxy or that the registrant were to receive a proxy issued by a cash management security, NAM would either engage an independent third party to determine how the proxy should be voted or vote the proxy with the consent, or based on the instructions, of the registrant's Board of Trustees or its representative. A member of NAM's legal department would oversee the administration of the voting, and ensure that records were maintained in accordance with Rule 206(4)-6, reports were filed with the SEC on Form N-PX, and the results provided to the registrant's Board of Trustees and made available to shareholders as required by applicable rules. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. THE PORTFOLIO MANAGER The following individual has primary responsibility for the day-to-day implementation of the registrant's investment strategies: NAME FUND Cathryn Steeves Nuveen Insured New York Dividend Advantage Municipal Fund Other Accounts Managed. In addition to managing the registrant, the portfolio manager is also primarily responsible for the day-to-day portfolio management of the following accounts: NUMBER OF PORTFOLIO MANAGER TYPE OF ACCOUNT MANAGED ACCOUNTS ASSETS* -------------------------------------------------------------------------------- Cathryn Steeves Registered Investment Company 67 $13.42 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of September 30, 2006. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, including these three elements, to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of August 30, 2006, the S&P/Investortools Municipal Bond index was comprised of 47,346 securities with an aggregate current market value of $879 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he/she serves as portfolio manager relative to any benchmarks established for those accounts, his/her effectiveness in communicating investment performance to stockholders and their representatives, and his/her contribution to the NAM investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. Each portfolio manager is eligible to receive bonus compensation in the form of equity-based awards issued in securities issued by Nuveen Investments, Inc. The amount of such compensation is dependent upon the same factors articulated for cash bonus awards but also factors in his long-term potential with the firm. Material Conflicts of Interest. Each portfolio manager's simultaneous management of the registrant and the other accounts noted above may present actual or apparent conflicts of interest with respect to the allocation and aggregation of securities orders placed on behalf of the Registrant and the other account. NAM, however, believes that such potential conflicts are mitigated by the fact that the NAM has adopted several policies that address potential conflicts of interest, including best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are to be treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of the September 30, 2006, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
------------------------------------------------------------------------------------------------------------------------- DOLLAR RANGE OF DOLLAR EQUITY RANGE OF SECURITIES EQUITY BENEFICIALLY SECURITIES OWNED IN BENEFICIALLY THE OWNED IN REMAINDER FUND OF NUVEEN FUNDS MANAGED BY NAM'S MUNICIPAL INVESTMENT NAME OF PORTFOLIO MANAGER FUND TEAM ------------------------------------------------------------------------------------------------------------------------- Cathryn Steeves Nuveen Insured New York Dividend Advantage Municipal Fund $0 $10,001-$50,000 -------------------------------------------------------------------------------------------------------------------------
PORTFOLIO MANAGER BIO: Cathryn Steeves, PhD is currently a portfolio manager for 68 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Cathryn has an undergraduate degree from Wake Forest University, an MA, MPhil and a PhD from Columbia University. 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 registrants 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 6, 2006 ------------------------------------------------------------------- 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 6, 2006 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: December 6, 2006 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.