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) Kevin J. McCarthy Nuveen Investments 333 West Wacker Drive Chicago, IL 60606 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (312) 917-7700 ------------------- Date of fiscal year end: September 30 ------------------ Date of reporting period: September 30, 2007 ------------------ 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, 2007 Nuveen Investments MUNICIPAL CLOSED-END FUNDS Photo of: Small child 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 IT'S NOT WHAT YOU EARN, IT'S WHAT YOU KEEP.(R) LOGO: NUVEEN Investments Photo of: Man working on computer LIFE IS COMPLEX. NUVEEN MAKES THINGS E-simple. ---------------------------------------------------------------------------- It only takes a minute to sign up for e-Reports. Once enrolled, you'll receive an e-mail as soon as your Nuveen Investments Fund information is ready--no more waiting for delivery by regular mail. Just click on the link within the e-mail to see the report and save it on your computer if you wish. FREE E-REPORTS RIGHT TO YOUR E-MAIL! www.investordelivery.com If you receive your Nuveen Fund dividends and statements from your financial advisor or brokerage account. OR www.nuveen.com/accountaccess If you receive your Nuveen Fund dividends and statements directly from Nuveen. Logo: NUVEEN Investments Chairman's LETTER TO SHAREHOLDERS Photo of: Timothy R. Schwertfeger Timothy R. Schwertfeger Chairman of the Board 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. I also wanted to take this opportunity to report some important news about Nuveen Investments. The firm recently was acquired by a group led by Madison Dearborn Partners, LLC. While this affects the corporate structure of Nuveen Investments, it has no impact on the investment objectives, portfolio management strategies or dividend policy of your Fund. With the recent volatility in the stock market, many have begun to wonder which way the market is headed, and whether they need to adjust their holdings of investments. No one knows what the future will bring, which is why we think a well-balanced portfolio that is structured and carefully monitored with the help of an investment professional is an important component in achieving your long-term financial goals. A well-diversified portfolio may actually help to reduce your overall investment risk, and we believe that investments like your Nuveen Investments Fund can be important building blocks in a portfolio crafted to perform well through a variety of market conditions. 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, 2007 Portfolio Manager's COMMENTS Nuveen Investments Municipal Closed-End Funds NQN, NVN, NUN, NNF, NKO, NRK Portfolio manager Cathryn Steeves discusses national and state economic and municipal market environments, key investment strategies, and the annual performance of these six Nuveen New York Funds. Cathryn, who joined Nuveen in 1996, assumed portfolio management responsibility for the Funds in July 2006. WHAT FACTORS AFFECTED THE U.S. ECONOMY AND MUNICIPAL MARKET DURING THE ANNUAL REPORTING PERIOD ENDED SEPTEMBER 30, 2007? On September 30, 2007, yields on the benchmark 10-year U.S. Treasury note and the Bond Buyer 25 Revenue Bond Index, a widely followed measure of longer-term municipal bond interest rates, stood about where they were one year earlier. But just looking at the yields on these two dates is misleading. Longer-term municipal bond interest rates actually declined during much of this twelve-month period. This changed in the summer of 2007, as developments in the financial sector, especially in the credit markets, led to increased volatility, tightened liquidity and a flight to quality. This was particularly evident in August, when market concerns about defaults on subprime mortgages resulted in a liquidity crisis across all fixed income asset classes. The inability to properly value collateralized debt products with exposure to subprime mortgages drove down bond prices and forced some owners of this type of debt to sell holdings into a very weak market. (These Nuveen New York Municipal Closed-End Funds had no exposure to the collateralized debt products that were at the center of this liquidity crisis.) After 14 months of remaining on the sidelines, the Federal Reserve responded to credit market volatility by cutting the fed funds rate by 50 basis points--from 5.25% to 4.75%-- in September 2007. (On October 31, 2007, after the close of this reporting period, the Fed reduced the fed funds rate another 25 basis points to 4.50%.) The decline in shorter-term municipal bond interest rates and the jump in longer-term municipal rates produced a slight steepening of the municipal bond yield curve late in the reporting period. In addition, as the markets repriced risk, credit spreads widened, and higher quality bonds generally outperformed lower quality credits. Discussions of specific investments are for illustrative purposes only and are not intended as recommendations of individual investments. The views expressed in this commentary represent those of the portfolio manager as of the date of this report and are subject to change at any time, based on market conditions and other factors. The Funds disclaim any obligation to advise shareholders of such changes. 4 The U.S. gross domestic product (GDP), a closely watched measure of economic growth, expanded at below-trend levels of 2.1% in the fourth quarter of 2006 and 0.6% in the first quarter of 2007, before rebounding sharply to 3.8% in the second quarter of 2007 (all GDP numbers annualized). In the third quarter of 2007, increases in consumer spending, business investment and exports helped GDP growth reach 3.9%. While the Consumer Price Index (CPI) registered a 2.8% year-over-year gain as of September 2007, the increase in this inflation gauge for the first nine months of 2007 was 3.6%, driven largely by rises in energy and food prices. The core CPI (which excludes food and energy prices) rose 2.1% between January and September 2007, remaining just above the Fedunofficial target of 2.0% or lower. The labor market continued to be tight, with a national unemployment rate of 4.7% in September 2007, up from 4.6% in September 2006. September 2007 marked the 49th consecutive month of employment growth, the longest string in U.S. history. Over the twelve months ended September 2007, municipal bond issuance nationwide totaled $466.6 billion, an increase of 21% from the previous twelve months. During the first nine months of 2007, municipal issuance remained on a record pace, as $319.7 billion in new securities came to market, up 19% over the same period in 2006. A major factor in 2007 volume was the 30% increase in advance refundings,1 driven by attractive borrowing rates for issuers during the first part of the year. For the majority of the period, the strength and diversity of demand for municipal bonds were as important as supply, as the surge in issuance was absorbed by a broad-based universe of traditional and nontraditional buyers, including retail investors, property and casualty insurance companies, hedge funds and arbitragers, and overseas investors. HOW WERE THE ECONOMIC AND MARKET ENVIRONMENTS IN NEW YORK DURING THIS REPORTINGPERIOD? New York state's GDP grew 3.4% in 2006, on par with the national average. The state's economy remained diverse, with financial services, education and health care, professional and business services, retail trade and government serving as key drivers. Although New York has seen its concentration of financial sector jobs drop since the early 1990s, the state continued to have more relative exposure to the financial industry than the rest of the nation on average. Recent events stemming from the subprime mortgage situation led to weaker financial performance by some major New York investment firms, layoffs in their subprime loan divisions, and a slower hiring outlook for the financial industry in New York City. Overall, however, the rate of job creation in New 1 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. 5 York City in 2006 and the first nine months of 2007 was almost twice that of the state as a whole. This reflected continued job losses in the manufacturing industry in upstate New York, especially auto manufacturing. As of September 2007, the unemployment rate in New York was 4.6%, up from 4.3% in September 2006 and above the historical low of 4.0% set in March 2007. Demographic trends in the state continued to lag those at the national level, with population growth of 1.7% over the past six years, compared with the national average of 6.4%, ranking New York 43rd in the nation. Due chiefly to tax receipt growth, New York ended fiscal 2006-2007 with a $1.5 billion budget surplus. For fiscal 2007-2008, the $120.4 billion state budget called for setting aside more than $1.6 billion in increased reserves, including $175 million to fund a new rainy day reserve established as part of budget reform. New York's budget remained extremely sensitive to fluctuations in the financial services industry, with more than half of the state's general fund receipts generated by personal income taxes, which continued to be heavily dependent on high-income Wall Street employment and capital gains. For much of the past decade, higher-than-projected revenues from this area of the state economy helped to erase potential budget gaps. Despite recent improvements, current forecasts estimate budget deficits of $3.6 billion in fiscal 2008-2009 and $6.6 billion in 2010-2011. Given recent events, we continued to monitor the situation in the financial industry for signs of potential impact on the state's economy and credit rating. As of September 30, 2007, Moody's, Standard & Poor's, and Fitch rated New York general obligation debt at Aa3/AA/AA-, respectively. Both Moody's and Standard & Poor's maintained stable outlooks for the state. For the twelve months ended September 30, 2007, municipal issuance in New York totaled $34.7 billion, down more than 4% from the previous twelve months. During the first nine months of 2007, New York supply was similar to that of January-September 2006, at $21.2 billion, an increase of 1%. For both the twelve-month and year-to date periods, New York ranked as the third largest state issuer in the nation, behind California and Texas. According to Moody's, the state's outstanding debt continued to grow, swelling from $14 billion in 1990 to $48 billion in 2006. As a result, debt service was expected to become an increasingly large burden on state finances. 6 WHAT KEY STRATEGIES WERE USED TO MANAGE THE NEW YORK FUNDS DURING THIS REPORTING PERIOD? In the municipal bond interest rate market environment of the past twelve months, we continued to emphasize a disciplined approach to duration2 management and yield curve positioning. Although New York issuance remained rather flat during this period, we continued to find opportunities to make purchases with the potential to add value to the Funds. In general, our focus was on buying attractively priced, premium coupon bonds with longer durations. Some of these purchases were made in the charter school, higher education, and health care segments of the market. Even though these are insured Funds, we were also able to capitalize on the credit situation by buying insured bonds with weaker underlying credits that represented value prospects. Toward the end of the period, we added some short-term insured securities to these Funds. These bonds, many of which had underlying credits with which we were familiar through our research efforts, offered higher yields and attractive pricing in the aftermath of the liquidity crisis. To generate cash for purchases and to help move the Funds' durations closer to our strategic target, we selectively sold holdings with shorter durations. As interest rates rose late in the period, we also found a variety of opportunities to sell holdings that were purchased when yields were lower and replace them with similar, newer credits that yielded comparatively more. This process allowed us to maintain the Funds' current portfolio characteristics while strengthening their future income streams. In all six of these Funds, our duration management strategies during this period included the use of inverse floating rate securities3, a type of derivative financial instrument. The inverse floaters had the dual benefit of bringing the Funds' durations closer to our preferred strategic target and enhancing the Funds' income- generation capabilities. As discussed in past shareholder reports, we also have used forward interest rate swaps (an additional type of derivative instrument) as a duration management tool when we believed this supported our overall investment management strategies. The goal of this strategy is to help us manage net asset value (NAV) volatility without having a negative impact on the Funds' income streams or common share dividends over the short term. During this reporting period, we employed interest rate swaps in NUN and NRK of these New York Funds. 2 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. 3 An inverse floating rate security is a financial instrument designed to pay long-term tax-exempt interest at a rate that varies inversely with a short-term tax-exempt interest rate index. For the Nuveen Funds, the index typically used is the Securities Industry and Financial Markets (SIFM) Municipal Swap Index (previously referred to as the Bond Market Association Index or BMA). Inverse floaters, including those inverse floating rate securities in which the Funds invested during the reporting period, are further defined within the "Notes to Financial Statements" and "Glossary of Terms Used in This Report" sections of this shareholder report. 7 HOW DID THE FUNDS PERFORM? Individual results for these Nuveen 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 9/30/07 1-Year 5-Year 10-Year NQN 2.22% 4.48% 6.19% NVN 1.75% 4.66% 5.98% NUN 1.81% 4.42% 5.78% NNF 1.85% 4.38% 5.89% NKO 2.36% 5.05% NA NRK 2.69% NA NA Lehman Brothers NY Insured Tax-Exempt Bond Index4 3.16% 4.10% 5.53% Lipper NY Insured Municipal Debt Funds Average5 2.20% 4.30% 5.53% For the twelve months ended September 30, 2007, the total return on NAV for all six of the Funds in this report underperformed the return on the Lehman Brothers New York Insured Tax-Exempt Bond Index. NQN, NKO, and NRK outperformed the average return for the Lipper New York Insured fund peer group, while NVN, NUN, and NNF trailed their peer group average. The major factors that influenced the Funds' returns during this period included the use of financial leverage, duration and yield curve positioning, the structure of various holdings and allocations to lower-rated credits in NKO and NRK, which can invest up to 20% of their assets in uninsured investment-grade quality securities. One of the key factors in the annual performance of these Funds relative to that of the unleveraged Lehman Brothers New York Insured Tax-Exempt Bond Index was the use of financial leverage. All of these Funds were negatively impacted by their use of leverage during this period. Although leveraging provides opportunities overtime for additional income and total returns for common shareholders, it can also expose shareholders to additional risk when market conditions are unfavorable. With the dramatic increase in yields on longer municipal bonds during the last part of this period, the impact of the valuation changes in these bonds was magnified by the use of leverage in these six Funds. *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. 4 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. 5 The Lipper New York Insured Municipal Debt Funds Average is calculated using the returns of all closed-end exchange-traded funds in this category for each period as follows: 1 year, 12 funds; 5 years, 9 funds; and 10 years, 7 funds. Fund and Lipper returns assume reinvestment of dividends. 8 Some of the differential in the one-year returns among these Funds can be attributed to the variation in the percentage of assets that was leveraged in each Fund. The greater the leverage, the greater the negative impact on that Fund's performance during this period. While the value provided by leverage was limited over this reporting period, we firmly believe that the use of this strategy should work to the benefit of the leveraged Funds over the long term. This is demonstrated by the five-year and ten-year return performances--both in absolute terms and relative to the Lehman Brothers New York Insured Tax-Exempt Bond Index--of the Funds in this report. In the interest rate environment over the past twelve months, bonds in the Lehman Brothers Municipal Bond Index with maturities between two and eight years benefited the most from changes in the interest rate environment. As a result, these bonds generally outperformed credits with longer maturities. Bonds having the longest maturities (22 years and longer) posted the worst returns for the period. In general, the New York Funds tended to be most heavily weighted in the intermediate part of the curve and relatively underexposed to the poorly-performing longest part of the curve. Overall, the Funds' overall yield curve positioning was a net positive for performance during this period. As interest rates backed up during the summer of 2007, structure also played a role in the relative performance of the bonds in our portfolios. Credits that had higher coupons tended to remain at a premium as rates rose, enabling these bonds to better retain their value during this period. At the same time, bonds that did not have higher coupons were priced at par or even a slight discount, leading to underperformance as spreads widened. Among these Funds, NQN held the greatest percentage of these higher coupon bonds. This was due in part to the greater availability of these bonds at the time NQN was assembled in 1990. In addition, credit exposure was a factor in the performance of NKO and NRK over this period. As interest rates on longer municipal bonds rose and credit spreads widened, lower credit quality bonds generally underperformed the municipal market as a whole for the first time in several years. As of September 30, 2007, bonds rated BBB or lower and non-rated bonds accounted for 4% of these Funds' portfolios. Generally, any bonds that carried credit risk, regardless of sector, tended to underperform during this period. Revenue bonds in general, and specifically the industrial development and health care sectors that had ranked among the top performers in the Lehman Brothers 9 Municipal Bond Index over the past few years, underperformed the general municipal market for this period. Bonds backed by the 1998 master tobacco settlement agreement also performed poorly during this period, due to the overall lower credit quality of the tobacco sector as well as the current ample supply and projected new issuance of these bonds. As of September 30, 2007, NKO and NRK held approximately 2% to 3% of their portfolios in lower-rated tobacco bonds. Sectors of the market that performed well during this period included transportation, water and sewer, and special tax-backed issues. Pre-refunded bonds, especially those that were advance refunded before longer municipal interest rates began to rise in mid-2007, also performed well during this period. 10 Dividend and Share Price INFORMATION As previously noted, all of these Funds use leverage to potentially enhance opportunities for additional income for common shareholders. Although the Funds' use of this strategy continued to provide incremental income, the extent of this benefit was reduced during this period due to short-term interest rates that remained relatively high, which--in turn--kept the Funds' borrowing costs high. 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 during the majority of this period. These factors resulted in a single monthly dividend reduction in NVN, NNF, and NKO and two reductions in NUN over the twelve-month period ended September 30, 2007. The dividends of NQN and NRK remained stable throughout this reporting period. Due to capital gains generated by normal portfolio activity, common shareholders of these Funds received capital gains and/or net ordinary income distributions at the end of December 2006 as follows: Short-Term Capital Gains Long-Term Capital Gains and/or Ordinary Income (per share) (per share) NQN $0.0711 $0.0018 NVN $0.0322 -- NUN $0.0395 $0.0007 NNF $0.0355 -- NKO $0.0105 -- NRK $0.0097 -- 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, 11 pay all of its net investment income as dividends to shareholders. As of September 30, 2007, all of the Funds in this report except NQN had positive UNII balances for tax purposes and negative UNII balances for financial statement purposes. NQN had positive UNII balances for both financial statement and tax purposes. SHARE REPURCHASE AND SHARE PRICE INFORMATION On July 10, 2007, the Funds' Board of Directors/Trustees approved an open market share repurchase program, as part of a broad, ongoing effort designed to support the market prices of the Funds' common shares. Repurchases not only help to support the market price but, because such purchases are made at a discount to NAV, they have the effect of augmenting NAV. Under the terms of the program, each Fund may repurchase up to 10% of its outstanding common shares. As of September 30, 2007, NQN had repurchased 97,300 common shares, NVN had repurchased 118,800 common shares and NUN had repurchased 171,600 common shares. As of September 30, 2007, the Fund's share prices were trading at discounts to their NAVs as shown in the accompanying chart: 9/30/07 Twelve-Month Average Discount Discount NQN -7.24% - 6.26% NVN -7.48% - 5.48% NUN -8.99% - 6.99% NNF -9.01% - 6.10% NKO -5.75% - 2.65% NRK -6.21% - 4.25% 12 NQN Performance OVERVIEW Nuveen New York Investment Quality Municipal Fund, Inc. as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 91% U.S. Guaranteed 8% FHA/FNMA/ GNMA Guaranteed 1% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.0555 Nov 0.0555 Dec 0.0555 Jan 0.0555 Feb 0.0555 Mar 0.0555 Apr 0.0555 May 0.0555 Jun 0.0555 Jul 0.0555 Aug 0.0555 Sep 0.0555 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.03 13.9603 13.89 13.8 13.83 13.9 14.02 14 13.9905 14.24 14.21 13.93 13.95 13.99 14.08 14.07 14.03 14.03 14.07 14.18 14.07 14.04 14.23 14.259 14.35 14.43 14.21 14.34 14.34 14.28 14.4 14.41 14.44 14.28 14.13 14.01 13.84 13.48 13.6 13.56 13.57 13.45 13.56 13.54 13.61 13.62 13.5 13.8 13.83 13.89 13.85 13.58 9/30/07 13.7 FUND SNAPSHOT ------------------------------------ Common Share Price $13.70 ------------------------------------ Common Share Net Asset Value $14.77 ------------------------------------ Premium/(Discount) to NAV -7.24% ------------------------------------ Market Yield 4.86% ------------------------------------ Taxable-Equivalent Yield1 7.24% ------------------------------------ Net Assets Applicable to Common Shares ($000) $260,224 ------------------------------------ Average Effective Maturity on Securities (Years) 15.83 ------------------------------------ Leverage-Adjusted Duration 8.12 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/90) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 3.22% 2.22% ------------------------------------ 5-Year 4.67% 4.48% ------------------------------------ 10-Year 4.15% 6.19% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.1% ------------------------------------ Health Care 15.8% ------------------------------------ Transportation 11.6% ------------------------------------ Tax Obligation/General 10.1% ------------------------------------ Education and Civic Organizations 8.9% ------------------------------------ U.S. Guaranteed 8.0% ------------------------------------ Utilities 5.2% ------------------------------------ Other 8.3% ------------------------------------ 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 32.9%. 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 2006 of $0.0729 per share. 13 NVN Performance OVERVIEW Nuveen New York Select Quality Municipal Fund, Inc. as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 88% U.S. Guaranteed 12% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.0595 Nov 0.0595 Dec 0.0595 Jan 0.0595 Feb 0.0595 Mar 0.0595 Apr 0.0595 May 0.0595 Jun 0.0565 Jul 0.0565 Aug 0.0565 Sep 0.0565 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.35 14.4 14.2 14.2051 14.3 14.42 14.61 14.56 14.59 14.7 14.51 14.45 14.39 14.43 14.45 14.44 14.65 14.58 14.75 14.87 14.59 14.58 14.73 14.84 14.83 14.9 14.84 14.9 14.63 14.64 14.55 14.69 14.52 14.46 14.35 14.34 14.11 13.83 13.71 13.71 13.75 13.6 13.58 13.7 13.95 13.75 13.71 13.89 14.05 14.16 13.99 13.7 9/30/07 13.86 FUND SNAPSHOT ------------------------------------ Common Share Price $13.86 ------------------------------------ Common Share Net Asset Value $14.98 ------------------------------------ Premium/(Discount) to NAV -7.48% ------------------------------------ Market Yield 4.89% ------------------------------------ Taxable-Equivalent Yield1 7.29% ------------------------------------ Net Assets Applicable to Common Shares ($000) $349,388 ------------------------------------ Average Effective Maturity on Securities (Years) 16.10 ------------------------------------ Leverage-Adjusted Duration 8.45 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 5/22/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 1.70% 1.75% ------------------------------------ 5-Year 4.52% 4.66% ------------------------------------ 10-Year 4.77% 5.98% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 31.8% ------------------------------------ Health Care 12.8% ------------------------------------ U.S. Guaranteed 12.4% ------------------------------------ Tax Obligation/General 10.7% ------------------------------------ Education and Civic Organizations 8.9% ------------------------------------ Transportation 7.3% ------------------------------------ Utilities 7.3% ------------------------------------ Other 8.8% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.9%. 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 2006 of $0.0322 per share 14 NUN Performance OVERVIEW Nuveen New York Quality Income Municipal Fund, Inc. as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 87% U.S. Guaranteed 12% FHA/FNMA/ GNMA Guaranteed 1% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.0565 Nov 0.0565 Dec 0.0565 Jan 0.0565 Feb 0.0565 Mar 0.054 Apr 0.054 May 0.054 Jun 0.051 Jul 0.051 Aug 0.051 Sep 0.051 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.07 14.07 13.9 13.9 13.99 14.06 14.09 14.01 14.01 14.15 14.22 14.05 14.06 14.05 14.03 13.98 14.005 14.07 14.13 14.22 14.12 14.08 14.19 14.3 14.23 14.29 14.36 14.33 14.2 14.1 14.12 14.1 14.06 13.98 13.77 13.86 13.7001 13.28 13.27 13.45 13.45 13.42 13.43 13.6 13.65 13.43 13.2 13.3 13.35 13.53 13.55 13.41 9/30/07 13.46 FUND SNAPSHOT ------------------------------------ Common Share Price $13.46 ------------------------------------ Common Share Net Asset Value $14.79 ------------------------------------ Premium/(Discount) to NAV -8.99% ------------------------------------ Market Yield 4.55% ------------------------------------ Taxable-Equivalent Yield1 6.78% ------------------------------------ Net Assets Applicable to Common Shares ($000) $353,564 ------------------------------------ Average Effective Maturity on Securities (Years) 15.69 ------------------------------------ Leverage-Adjusted Duration 8.81 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/20/91) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 0.21% 1.81% ------------------------------------ 5-Year 4.20% 4.42% ------------------------------------ 10-Year 4.69% 5.78% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.3% ------------------------------------ U.S. Guaranteed 12.2% ------------------------------------ Education and Civic Organizations 11.0% ------------------------------------ Health Care 11.0% ------------------------------------ Transportation 10.4% ------------------------------------ Tax Obligation/General 9.0% ------------------------------------ Utilities 6.8% ------------------------------------ Other 7.3% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.9%. 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 2006 of $0.0402 per share. 15 NNF Performance OVERVIEW Nuveen Insured New York Premium Income Municipal Fund, Inc. as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 92% U.S. Guaranteed 8% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.057 Nov 0.057 Dec 0.057 Jan 0.057 Feb 0.057 Mar 0.057 Apr 0.057 May 0.057 Jun 0.054 Jul 0.054 Aug 0.054 Sep 0.054 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.28 14.01 14.05 14.03 14.13 14.28 14.29 14.26 14.35 14.34 14.35 14.17 14.12 14.14 14.3 14.29 14.41 14.3 14.35 14.3 14.2 14.34 14.37 14.48 14.59 14.74 14.58 14.55 14.53 14.61 14.61 14.74 14.61 14.39 14.19 14.38 13.96 13.5 13.51 13.7 13.66 13.7 13.71 13.62 13.62 13.57 13.4 13.47 13.61 13.91 13.9 13.7 9/30/07 13.54 FUND SNAPSHOT ------------------------------------ Common Share Price $13.54 ------------------------------------ Common Share Net Asset Value $14.88 ------------------------------------ Premium/(Discount) to NAV -9.01% ------------------------------------ Market Yield 4.79% ------------------------------------ Taxable-Equivalent Yield1 7.14% ------------------------------------ Net Assets Applicable to Common Shares ($000) $123,956 ------------------------------------ Average Effective Maturity on Securities (Years) 15.98 ------------------------------------ Leverage-Adjusted Duration 8.40 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 12/17/92) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -0.20% 1.85% ------------------------------------ 5-Year 3.05% 4.38% ------------------------------------ 10-Year 5.16% 5.89% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 32.6% ------------------------------------ Health Care 15.1% ------------------------------------ Education and Civic Organizations 12.9% ------------------------------------ Transportation 9.6% ------------------------------------ Tax Obligation/General 8.3% ------------------------------------ U.S. Guaranteed 8.0% ------------------------------------ Water and Sewer 5.5% ------------------------------------ Other 8.0% ------------------------------------ 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 32.9%. 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 2006 of $0.0355 per share. 16 NKO Performance OVERVIEW Nuveen Insured New York Dividend Advantage Municipal Fund as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 82% U.S. Guaranteed 9% FHA/FNMA/GNMA Guaranteed 2% AA (Uninsured) 3% BBB (Uninsured) 4% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.0615 Nov 0.0615 Dec 0.0615 Jan 0.0615 Feb 0.0615 Mar 0.0615 Apr 0.0615 May 0.0615 Jun 0.058 Jul 0.058 Aug 0.058 Sep 0.058 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.85 14.81 14.44 14.32 14.51 14.68 14.54 14.64 14.7 14.85 14.95 14.76 15.05 14.92 14.85 15.17 15.06 15.05 15.04 14.78 15.22 15.45 15.29 15.6 15.38 15.37 15.49 15.55 15.43 15.175 15.2699 15.15 15.27 15.01 15.08 15.18 14.44 14.15 14.2 14.11 14.27 14.25 13.99 13.75 13.94 13.96 13.47 13.7 14.26 14.39 14.28 14.07 9/30/07 14.1 FUND SNAPSHOT ------------------------------------ Common Share Price $14.10 ------------------------------------ Common Share Net Asset Value $14.96 ------------------------------------ Premium/(Discount) to NAV -5.75% ------------------------------------ Market Yield 4.94% ------------------------------------ Taxable-Equivalent Yield1 7.36% ------------------------------------ Net Assets Applicable to Common Shares ($000) $119,131 ------------------------------------ Average Effective Maturity on Securities (Years) 16.44 ------------------------------------ Leverage-Adjusted Duration 7.74 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 3/25/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year -0.21% 2.36% ------------------------------------ 5-Year 4.66% 5.05% ------------------------------------ Since Inception 5.17% 6.94% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 27.1% ------------------------------------ Health Care 15.8% ------------------------------------ Education and Civic Organizations 11.3% ------------------------------------ Tax Obligation/General 9.4% ------------------------------------ U.S. Guaranteed 9.3% ------------------------------------ Transportation 8.4% ------------------------------------ Utilities 8.1% ------------------------------------ Other 10.6% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.9%. 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 2006 of $0.0105 per share. 17 NRK Performance OVERVIEW Nuveen Insured New York Tax-Free Advantage Municipal Fund as of September 30, 2007 Pie Chart: Credit Quality (as a % of total investments) Insured 73% U.S. Guaranteed 17% FHA/FNMA/GNMA Guaranteed 1% AA (Uninsured) 4% A (Uninsured) 1% BBB (Uninsured) 4% Bar Chart: 2006-2007 Monthly Tax-Free Dividends Per Share2 Oct 0.0545 Nov 0.0545 Dec 0.0545 Jan 0.0545 Feb 0.0545 Mar 0.0545 Apr 0.0545 May 0.0545 Jun 0.0545 Jul 0.0545 Aug 0.0545 Sep 0.0545 Line Chart: Share Price Performance -- Weekly Closing Price 10/01/06 14.11 14.01 13.85 13.91 14.17 14.14 14.17 13.96 14 14.2 14.45 14.29 14.02 14.3199 14.25 14 13.9 14.17 14.4399 14.72 14.7375 14.58 14.59 14.83 14.83 14.85 14.94 14.89 14.67 14.5 14.69 14.3225 14.29 14.4 14.2 14.2 13.9 13.65 13.76 13.73 13.59 13.68 13.5 13.4 13.46 13.71 13.32 13.39 13.95 14.05 13.75 13.65 9/30/07 13.74 FUND SNAPSHOT ------------------------------------ Common Share Price $13.74 ------------------------------------ Common Share Net Asset Value $14.65 ------------------------------------ Premium/(Discount) to NAV -6.21% ------------------------------------ Market Yield 4.76% ------------------------------------ Taxable-Equivalent Yield1 7.09% ------------------------------------ Net Assets Applicable to Common Shares ($000) $51,479 ------------------------------------ Average Effective Maturity on Securities (Years) 14.09 ------------------------------------ Leverage-Adjusted Duration 8.70 ------------------------------------ AVERAGE ANNUAL TOTAL RETURN (Inception 11/21/02) ------------------------------------ ON SHARE PRICE ON NAV ------------------------------------ 1-Year 2.24% 2.69% ------------------------------------ Since Inception 3.62% 5.74% ------------------------------------ INDUSTRIES (as a % of total investments) ------------------------------------ Tax Obligation/Limited 29.9% ------------------------------------ U.S. Guaranteed 17.8% ------------------------------------ Health Care 15.8% ------------------------------------ Education and Civic Organizations 13.4% ------------------------------------ Transportation 8.2% ------------------------------------ Tax Obligation/General 6.2% ------------------------------------ Utilities 5.9% ------------------------------------ Other 2.8% ------------------------------------ 1 Taxable-Equivalent Yield represents the yield that must be earned on a fully taxable investment in order to equal the yield of the Fund on an after-tax basis. It is based on a combined federal and state income tax rate of 32.9%. 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 2006 of $0.0097 per share. 18 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, 2007, 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, 2007, by correspondence with the custodian and brokers or by other applicable auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Nuveen New York Investment Quality Municipal Fund, Inc., Nuveen New York Select Quality Municipal Fund, Inc., Nuveen New York Quality Income Municipal Fund, Inc., Nuveen Insured New York Premium Income Municipal Fund, Inc., Nuveen Insured New York Dividend Advantage Municipal Fund and Nuveen Insured New York Tax-Free Advantage Municipal Fund at September 30, 2007, the results of their operations for the year then ended, the 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 20, 2007 19 NQN Nuveen New York Investment Quality Municipal Fund, Inc. Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.0% (8.9% OF TOTAL INVESTMENTS) $ 3,500 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA $ 3,606,365 Bonds, Culinary Institute of America, Series 1999, 5.000%, 7/01/22 - MBIA Insured 6,500 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 AAA 6,624,995 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 2,083,560 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 3,228,540 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 550 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 570,829 Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured 1,150 Dormitory Authority of the State of New York, Revenue Bonds, 7/15 at 100.00 Aaa 1,207,581 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 1,995,333 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 638,635 460 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 511,327 4,500 Dormitory Authority of the State of New York, State and Local 7/15 at 100.00 AAA 4,781,295 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 1,360 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 1,524,873 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) 2,390 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 2,449,463 PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 5.000%, 1/01/46 - AMBAC Insured 2,460 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 2,687,452 Revenue Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 2,000 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 2,063,520 Revenue Bonds, Ethical Culture Fieldston School, Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured 890 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 922,049 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured 740 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 793,702 Yankee Stadium, Series 2006, Residuals 1875, 6.870%, 3/01/46 - FGIC Insured (IF) 740 New York State Dormitory Authority, Revenue Bonds, 7/17 at 100.00 Aaa 770,991 New York University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 34,580 Total Education and Civic Organizations 36,460,510 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 25.0% (15.8% OF TOTAL INVESTMENTS) 675 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 692,341 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: 735 5.250%, 8/01/19 - AMBAC Insured 8/09 at 101.00 AAA 760,938 4,000 5.500%, 8/01/38 - AMBAC Insured 8/09 at 101.00 AAA 4,148,960 20 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 7,080 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA $ 7,117,736 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 1,780 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 1,858,213 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 2,575 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,655,392 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 3,692,590 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 1,560,570 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 8,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/09 at 101.00 AAA 8,317,440 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 1,325 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 1,398,935 Health Quest System Inc., Series 2007B, 5.250%, 7/01/27 - AGC Insured 6,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 6,338,700 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 2,035 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,206,062 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 1,805 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 AAA 1,847,002 North Shore Health System Obligated Group, Series 1998, 5.000%, 11/01/23 - MBIA Insured 1,585 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 1,620,552 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 8,525 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 8,954,149 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 3,196,383 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 2,055,120 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 3,334,086 2,100 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 2,222,724 935 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 1,047,312 North Shore Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 62,475 Total Health Care 65,025,205 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 5.1% (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 1,326,678 1,230 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,324,452 5,740 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,981,137 420 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 397,274 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) 35 New York State Housing Finance Agency, FHA-Insured Multifamily 2/08 at 100.00 AAA 35,057 Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured 21 NQN Nuveen New York Investment Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: $ 1,490 6.100%, 11/01/15 - FSA Insured 11/07 at 101.00 AAA $ 1,507,835 2,540 6.125%, 11/01/20 - FSA Insured 11/07 at 101.00 AAA 2,569,921 ------------------------------------------------------------------------------------------------------------------------------------ 12,685 Total Housing/Multifamily 13,142,354 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS) 2,770 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 2,804,625 PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 - XLCA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.2% (0.7% OF TOTAL INVESTMENTS) 3,000 Castle Rest Residential Healthcare Facility, Syracuse, New York, 2/08 at 102.00 AAA 3,037,590 FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 16.0% (10.1% OF TOTAL INVESTMENTS) 3,000 Dormitory Authority of the State of New York, School Districts 10/15 at 100.00 AAA 3,102,990 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, 3/13 at 100.00 Aaa 1,293,084 Series 2003A, 5.250%, 3/15/16 - FGIC Insured 635 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 687,095 5.250%, 4/01/13 - MBIA Insured 2,000 Hempstead Town, New York, General Obligation Bonds, 1/11 at 101.00 Aaa 2,120,040 Series 2001A, 5.250%, 1/15/14 - MBIA Insured 10,735 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 11,054,581 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 1,000 Monroe County, New York, General Obligation Public Improvement 3/12 at 100.00 AAA 1,056,350 Bonds, Series 2002, 5.000%, 3/01/16 - FGIC Insured 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 3,185,640 2,300 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 2,431,974 2,300 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 2,440,668 Series 2005J, 5.000%, 3/01/19 - FGIC 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 523,040 500 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 523,040 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 1,779,624 1,815 5.000%, 6/15/18 - FSA Insured 6/15 at 100.00 AAA 1,936,823 1,145 Three Village Central School District, Brookhaven and Smithtown, No Opt. Call Aaa 1,245,188 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, New York, 10/15 at 100.00 Aaa 1,750,815 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 6,578,393 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 39,510 Total Tax Obligation/General 41,709,345 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 50.8% (32.1% OF TOTAL INVESTMENTS) 1,275 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue 9/15 at 100.00 AAA 1,347,956 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 2,293,268 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 1,671,107 500 5.000%, 7/01/25 - CIFG Insured 7/15 at 100.00 AAA 519,340 22 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 10 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA $ 10,058 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 - MBIA Insured 10 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 10,218 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 10 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 10,617 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.875%, 2/15/16 - FSA Insured 25 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 AAA 26,589 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 1,401,988 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 2,092,520 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 1,048,500 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 1,560,540 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 2,550,310 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 1,308,240 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 2005D1: 2,120 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,278,067 1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,251,432 4,600 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 4,886,488 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 395,051 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 1,085,580 1,200 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,296,120 1,290 Erie County Industrial Development Agency, New York, School 5/14 at 100.00 AAA 1,433,822 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 5,630 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 6,308,190 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 6,000 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA 6,324,540 Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 1,760 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 1,832,565 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 2,972,906 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 5,184,855 1,250 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 1,346,425 2,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 2,152,460 2,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,073,300 4,095 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,201,839 4,820 Nassau County Interim Finance Authority, New York, Sales No Opt. Call AAA 5,255,198 and Use Tax Revenue Bonds, Series 2004H, 5.250%, 11/15/13 - AMBAC Insured 23 NQN Nuveen New York Investment Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) 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 $ 2,241,266 1,305 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,345,155 1,305 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,341,605 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 2,200 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 2,298,846 1,600 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,669,904 5,370 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 5,584,746 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450 1,435 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 1,530,399 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 1,759,633 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 2,121,300 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 4,088,531 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 2,178,687 5,200 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 5,320,692 3,000 New York State Local Government Assistance Corporation, No Opt. Call AAA 3,273,600 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 1,776,880 Revenue Bonds, Series 1997B, 4.875%, 4/01/20 - MBIA Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: 7,350 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 8,337,546 1,500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 1,581,930 1,750 New York State Thruway Authority, State Personal Income 9/14 at 100.00 AAA 1,826,773 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 6,704,145 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,062,580 4,500 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,774,590 1,000 New York State Urban Development Corporation, State 3/15 at 100.00 AAA 1,036,190 Personal Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 - FSA Insured 1,000 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 1,034,520 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 1,557,922 Revenue Bonds, Hampton Bays Public Library, Series 1999A, 6.000%, 10/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 124,060 Total Tax Obligation/Limited 132,131,979 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 18.3% (11.6% OF TOTAL INVESTMENTS) 2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,165,280 Revenue Refunding Bonds, Series 2002A, 5.500%, 11/15/19 - AMBAC Insured New York State Thruway Authority, General Revenue Bonds, Series 2005F: 1,955 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,065,751 7,090 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 7,344,744 24 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 1,500 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA $ 1,561,020 Series 2005G, 5.000%, 1/01/30 - FSA Insured 2,300 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,372,588 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 2,221,565 2,625 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 2,744,411 1,475 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 1,536,227 1,160 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,320,869 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) 5,025 Port Authority of New York and New Jersey, Special Project 12/07 at 100.00 AAA 5,040,025 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: 4,345 7.000%, 7/01/14 - FGIC Insured (Alternative Minimum Tax) 1/08 at 100.00 AAA 4,363,510 11,500 6.000%, 7/01/21 - FGIC Insured (Alternative Minimum Tax) 1/08 at 100.00 AAA 11,531,046 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 888,709 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,446,303 ------------------------------------------------------------------------------------------------------------------------------------ 46,135 Total Transportation 47,602,048 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.6% (8.0% OF TOTAL INVESTMENTS) (4) 3,655 Buffalo Municipal Water Finance Authority, New York, Water 7/09 at 101.00 AAA 3,849,117 System Revenue Bonds, Series 1999, 6.000%, 7/01/29 (Pre-refunded 7/01/09) - FSA Insured 65 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa 69,238 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.875%, 2/15/16 (Pre-refunded 8/15/10) - FSA Insured 75 Dormitory Authority of the State of New York, Improvement 8/11 at 100.00 Aaa 80,410 Revenue Bonds, Mental Health Services Facilities, Series 2001B, 5.500%, 8/15/19 (Pre-refunded 8/15/11) - MBIA Insured 1,200 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 1,267,968 Bonds, Cooper Union, Series 1999, 6.250%, 7/01/29 (Pre-refunded 7/01/09) - MBIA Insured 905 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 1,053,049 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 - BIGI Insured (ETM) 1,475 Dormitory Authority of the State of New York, Revenue Bonds, 11/08 at 101.00 Aaa 1,514,014 North Shore Health System Obligated Group, Series 1998, 5.000%, 11/01/23 (Pre-refunded 11/01/08) - MBIA Insured 700 Jericho Union Free School District, Nassau County, New York, 8/09 at 101.00 Aaa 733,621 General Obligation Bonds, Series 2000, 5.600%, 8/01/18 (Pre-refunded 8/01/09) - MBIA Insured 2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,659,550 Revenue Bonds, Series 2001A, 5.250%, 9/01/28 (Pre-refunded 9/01/11) - FSA Insured 945 Metropolitan Transportation Authority, New York, Commuter 1/08 at 102.00 AAA 964,892 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 5,556,040 7,600 4.750%, 4/01/28 (Pre-refunded 10/01/15) - FGIC Insured 10/15 at 100.00 AAA 8,165,060 1,000 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 1,086,360 Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 565 New York City Transitional Finance Authority, New York, 8/12 at 100.00 Aaa 607,929 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/20 (Pre-refunded 8/01/12) - AMBAC Insured 5,030 New York City Trust for Cultural Resources, New York, Revenue 7/09 at 101.00 AAA 5,270,585 Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded 7/01/09) - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 30,805 Total U.S. Guaranteed 32,877,833 ------------------------------------------------------------------------------------------------------------------------------------ 25 NQN Nuveen New York Investment Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 8.2% (5.2% OF TOTAL INVESTMENTS) $ 2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA $ 2,586,225 Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured 2,620 Long Island Power Authority, New York, Electric System General 9/13 at 100.00 AAA 2,802,535 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 4,786,340 6,160 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 6,453,216 625 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 644,256 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 2,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 2,072,360 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative Minimum Tax) Power Authority of the State of New York, General Revenue Bonds, Series 2006A: 1,140 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,220,039 760 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 808,693 ------------------------------------------------------------------------------------------------------------------------------------ 20,345 Total Utilities 21,373,664 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 6.0% (3.8% OF TOTAL INVESTMENTS) 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,778,009 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 5,030 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 5,243,674 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 6/15 at 100.00 AAA 5,413,096 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,890 Total Water and Sewer 15,519,799 ------------------------------------------------------------------------------------------------------------------------------------ $ 391,255 Total Investments (cost $399,092,377) - 158.2% 411,684,952 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (10,910,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 1.3% 3,449,105 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.3)% (144,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 260,224,057 ====================================================================================================================
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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 26 NVN Nuveen New York Select Quality Municipal Fund, Inc. Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 14.1% (8.9% OF TOTAL INVESTMENTS) $ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 536,055 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 1,409,825 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 652,682 2,500 Dormitory Authority of the State of New York, General Revenue No Opt. Call AAA 2,889,950 Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 105 Dormitory Authority of the State of New York, Insured Revenue 1/08 at 100.00 AAA 105,309 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 729,562 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 4,423,458 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 1,436,157 800 5.500%, 7/01/20 - AMBAC Insured 7/11 at 100.00 AAA 851,056 600 5.500%, 7/01/21 - AMBAC Insured 7/11 at 100.00 AAA 638,292 2,125 Dormitory Authority of the State of New York, Insured Revenue 7/11 at 100.00 AAA 2,213,783 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 2,152,360 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 735 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 762,834 Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC 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 1,054,510 2,875 5.250%, 7/01/30 - MBIA Insured 7/11 at 101.00 AAA 3,019,728 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,261,000 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 860,769 620 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 689,180 1,000 Nassau County Industrial Development Agency, New York, 7/08 at 102.00 AAA 1,028,990 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 7,373,975 Civic Facility Revenue Bonds, Horace Mann School, Series 1998, 5.000%, 7/01/28 - MBIA Insured 1,825 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 2,046,245 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) 27 NVN Nuveen New York Select Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006: $ 2,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA $ 2,063,420 3,200 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 3,279,616 3,245 New York City Industrial Development Agency, New York, Revenue 9/16 at 100.00 AAA 3,545,033 Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 1,195 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 1,238,032 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured 990 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 1,061,844 Yankee Stadium, Series 2006, Residuals 1875, 6.870%, 3/01/46 - FGIC Insured (IF) 995 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 1,036,671 University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 46,645 Total Education and Civic Organizations 49,360,336 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 20.3% (12.8% OF TOTAL INVESTMENTS) 740 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 759,011 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 2/08 at 102.00 AAA 6,122,034 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 5,943,385 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 3,015,990 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 2,385 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 2,489,797 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 2,655 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,737,889 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 6,662,305 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 1,044,580 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 6,687,393 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, Health Quest System Inc., Series 2007B: 955 5.250%, 7/01/27 - AGC Insured 7/17 at 100.00 AAA 1,008,289 825 5.125%, 7/01/37 - AGC Insured 7/17 at 100.00 AAA 849,849 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 2,641,125 3,210 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,356,633 2,820 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 3,057,049 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 2,120 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,167,552 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 12,020 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 12,625,086 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 2,126,939 Winthrop South Nassau University Health System Obligated Group, Series 2001B, 5.250%, 7/01/31 - AMBAC Insured 28 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) 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 $ 2,963,632 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,244,119 1,235 New York State Dormitory Authority, Revenue Bonds, North Shore No Opt. Call AAA 1,383,348 Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 68,010 Total Health Care 70,886,005 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 4.7% (2.9% 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 1,585,542 1,470 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,582,881 5,445 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,673,744 2,655 New York City Housing Development Corporation, New York, 10/07 at 105.00 AAA 2,793,360 Multifamily Housing Revenue Bonds, Pass-Through Certificates, Series 1991C, 6.500%, 2/20/19 - AMBAC Insured 540 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 510,781 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) New York State Housing Finance Agency, Mortgage Revenue Refunding Bonds, Housing Project, Series 1996A: 755 6.100%, 11/01/15 - FSA Insured 11/07 at 101.00 AAA 764,037 3,380 6.125%, 11/01/20 - FSA Insured 11/07 at 101.00 AAA 3,419,816 ------------------------------------------------------------------------------------------------------------------------------------ 15,715 Total Housing/Multifamily 16,330,161 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.1% (0.7% OF TOTAL INVESTMENTS) 3,715 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 3,761,438 PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 - XLCA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.4% (1.5% OF TOTAL INVESTMENTS) 2,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 2,099,740 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 6,233,040 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 8,332,780 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 17.0% (10.7% OF TOTAL INVESTMENTS) 1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 1,616,355 5.250%, 3/15/16 - FGIC Insured 745 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 806,120 5.250%, 4/01/13 - MBIA Insured 2,000 Erie County, New York, General Obligation Bonds, Series 2005A, 12/15 at 100.00 AAA 2,141,060 5.000%, 12/01/18 - MBIA Insured 14,405 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 14,833,837 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 45 New York City, New York, General Obligation Bonds, Fiscal 2/08 at 100.00 AAA 45,097 Series 1992C, 6.250%, 8/01/10 - FSA Insured New York City, New York, General Obligation Bonds, Fiscal Series 1998H: 3,780 5.125%, 8/01/25 - MBIA Insured 8/08 at 101.00 AAA 3,855,071 5,410 5.375%, 8/01/27 - MBIA Insured 8/08 at 101.00 AAA 5,530,318 3,920 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 3,989,894 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 3,137,790 Series 2001D, 5.000%, 8/01/16 - FGIC Insured 29 NVN Nuveen New York Select Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) 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: $ 3,250 5.000%, 11/01/19 - FSA Insured 11/14 at 100.00 AAA $ 3,451,110 1,650 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,744,677 2,900 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 3,077,364 Series 2005J, 5.000%, 3/01/19 - FGIC Insured Oneida County, New York, General Obligation Public Improvement Bonds, Series 2000: 100 5.375%, 4/15/18 - MBIA Insured 4/09 at 102.00 AAA 104,608 100 5.375%, 4/15/19 - MBIA Insured 4/09 at 102.00 AAA 104,608 Rensselaer County, New York, General Obligation Bonds, Series 1991: 960 6.700%, 2/15/16 - AMBAC Insured No Opt. Call AAA 1,160,851 960 6.700%, 2/15/17 - AMBAC Insured No Opt. Call AAA 1,165,642 960 6.700%, 2/15/18 - AMBAC Insured No Opt. Call AAA 1,176,086 960 6.700%, 2/15/19 - AMBAC Insured No Opt. Call AAA 1,185,523 960 6.700%, 2/15/20 - AMBAC Insured No Opt. Call AAA 1,194,547 747 6.700%, 2/15/21 - AMBAC Insured No Opt. Call AAA 937,246 Rochester, New York, General Obligation Bonds, Series 1999: 735 5.250%, 10/01/20 - MBIA Insured No Opt. Call AAA 818,378 735 5.250%, 10/01/21 - MBIA Insured No Opt. Call AAA 819,819 730 5.250%, 10/01/22 - MBIA Insured No Opt. Call AAA 814,264 730 5.250%, 10/01/23 - MBIA Insured No Opt. Call AAA 816,410 730 5.250%, 10/01/24 - MBIA Insured No Opt. Call AAA 816,344 730 5.250%, 10/01/25 - MBIA Insured No Opt. Call AAA 816,804 725 5.250%, 10/01/26 - MBIA Insured No Opt. Call AAA 813,320 2,190 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,323,787 5.000%, 8/01/19 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 55,657 Total Tax Obligation/General 59,296,930 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 50.4% (31.8% OF TOTAL INVESTMENTS) 10 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 10,058 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.375%, 2/15/26 - MBIA Insured 5 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 5,109 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 7,145 Dormitory Authority of the State of New York, Insured Revenue 7/09 at 101.00 AAA 7,475,528 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 3,820,174 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 2,317,748 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 2005D1: 670 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 719,955 1,715 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,788,505 7,925 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,418,568 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 1,148,282 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 1,335,263 1,225 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,323,123 1,700 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 1,889,533 School Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 7,545 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 8,453,871 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 30 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 7,500 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA $ 7,905,675 Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 2,015 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 2,098,078 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 4,954,844 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 2,304,380 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,231,420 5,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 5,381,150 2,375 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 2,462,044 4,050 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 4,155,665 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 4,238,800 1,560 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 1,608,001 1,560 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,603,758 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 3,640 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,803,545 1,960 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,045,632 3,170 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,296,768 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450 5,600 New York City Transitional Finance Authority, New York, Building 1/17 at 100.00 AAA 5,864,656 Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 - FGIC Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2002B: 2,820 5.250%, 5/01/16 - MBIA Insured 11/11 at 101.00 AAA 3,016,498 1,000 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 1,069,680 6,680 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 7,124,086 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 3,160 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 3,349,663 Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 2,000 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 2,121,300 Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 3,500 New York City Transitional Finance Authority, New York, Future Tax 2/13 at 100.00 AAA 3,659,810 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: 2,500 5.000%, 11/15/30 - AMBAC Insured 11/15 at 100.00 AAA 2,593,675 6,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,139,260 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,092,000 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 7,869,040 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 914,690 920 5.125%, 5/15/20 - AMBAC Insured 5/11 at 100.00 AAA 961,731 965 5.250%, 5/15/21 - AMBAC Insured 5/11 at 100.00 AAA 1,014,167 1,015 5.250%, 5/15/22 - AMBAC Insured 5/11 at 100.00 AAA 1,060,574 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA 1,051,830 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/22 - MBIA Insured 31 NVN Nuveen New York Select Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: $ 8,455 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA $ 9,591,013 1,500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 1,581,930 1,000 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 1,043,870 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 11,812,064 1,000 5.250%, 6/01/21 - AMBAC Insured 6/13 at 100.00 AAA 1,062,580 4,565 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,843,556 500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095 Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 - FSA Insured 4,000 Puerto Rico Highway and Transportation Authority, Highway No Opt. Call AAA 4,533,240 Revenue Refunding Bonds, Series 2002E, 5.500%, 7/01/18 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 165,705 Total Tax Obligation/Limited 176,238,935 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 11.6% (7.3% 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 6,495,840 2,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 2,109,980 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 1,445,324 4,575 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 4,745,327 New York State Thruway Authority, General Revenue Bonds, Series 2005F: 2,625 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,773,706 2,260 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 2,341,202 1,650 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,717,122 Series 2005G, 5.000%, 1/01/30 - FSA Insured 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,578,900 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 1,744,529 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 7,079,870 Revenue Bonds, One Hundred Twentieth Series 2000, 5.750%, 10/15/26 - MBIA Insured (Alternative Minimum Tax) 1,560 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,776,341 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) 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 1,788,811 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA ------------------------------------------------------------------------------------------------------------------------------------ 38,550 Total Transportation 40,638,670 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.8% (12.4% OF TOTAL INVESTMENTS) (4) 2,095 Dormitory Authority of the State of New York, Lease Revenue 7/11 at 100.00 AAA 2,241,608 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/18 (Pre-refunded 7/01/11) - 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 1,816,591 2,235 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,040,242 2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,277,586 1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,707,048 32 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 505 Dormitory Authority of the State of New York, Suffolk County, No Opt. Call Baa1 (4) $ 668,378 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 734,636 700 5.250%, 10/01/19 (Pre-refunded 10/01/09) - FGIC Insured 10/09 at 101.00 AAA 731,269 4,000 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 4,087,480 Revenue Bonds, Series 1998A, 5.250%, 12/01/26 (Pre-refunded 6/01/08) - MBIA Insured 3,125 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 3,324,438 Revenue Bonds, Series 2001A, 5.250%, 9/01/28 (Pre-refunded 9/01/11) - FSA Insured 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 1,086,640 1,000 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,086,640 4,695 Metropolitan Transportation Authority, New York, Commuter 7/11 at 100.00 AAA 4,982,569 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 11,817,849 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 4,345,440 3,250 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 3,530,670 2,330 Nassau County, North Hempstead, New York, General Obligation 3/08 at 101.00 Aaa 2,365,859 Refunding Bonds, Series 1998B, 4.750%, 3/01/18 (Pre-refunded 3/01/08) - FGIC Insured 820 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 882,304 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 1,075 New York City Trust for Cultural Resources, New York, Revenue 7/09 at 101.00 AAA 1,126,417 Bonds, American Museum of Natural History, Series 1999A, 5.750%, 7/01/29 (Pre-refunded 7/01/09) - AMBAC Insured New York City, New York, General Obligation Bonds, Fiscal Series 1998H: 370 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 378,754 30 5.375%, 8/01/27 (Pre-refunded 8/01/08) - MBIA Insured 8/08 at 101.00 AAA 30,771 1,080 New York City, New York, General Obligation Bonds, Fiscal 4/09 at 101.00 AAA 1,115,618 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 5,363,050 Fund Bonds, Series 2002A, 5.250%, 4/01/19 (Pre-refunded 4/01/12) - FSA Insured 6,000 New York State Urban Development Corporation, Service 1/11 at 100.00 AAA 6,298,380 Contract Revenue Bonds, Correctional Facilities, Series 2000C, 5.125%, 1/01/23 (Pre-refunded 1/01/11) - FSA Insured Putnam Valley Central School District, Putnam and Westchester Counties, New York, General Obligation Bonds, Series 1999: 525 5.875%, 6/15/17 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/18 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/20 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/21 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/22 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/23 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/24 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/26 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/28 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 ------------------------------------------------------------------------------------------------------------------------------------ 66,090 Total U.S. Guaranteed 69,056,252 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 11.6% (7.3% 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 1,901,440 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,802,840 15,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 6,403,950 3,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 1,214,340 4,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 1,718,730 3,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 1,086,750 33 NVN Nuveen New York Select Quality Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES (continued) $ 3,000 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA $ 3,103,470 Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured 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 6,336,103 7,735 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,103,186 750 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 773,108 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 6,000 New York State Energy Research and Development Authority, 9/08 at 102.00 AAA 6,217,080 Pollution Control Revenue Bonds, Rochester Gas and Electric Corporation, Series 1998A, 5.950%, 9/01/33 - MBIA Insured (Alternative Minimum Tax) Power Authority of the State of New York, General Revenue Bonds, Series 2006A: 970 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,038,104 650 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 691,646 ------------------------------------------------------------------------------------------------------------------------------------ 58,615 Total Utilities 40,390,747 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.8% (3.7% OF TOTAL INVESTMENTS) 1,245 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA 1,333,507 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 1,308,949 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.000%, 6/15/33 - MBIA Insured 3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020 Water and Sewerage System Revenue Bonds, Fiscal Series 2004C, 5.000%, 6/15/35 - AMBAC Insured 5,920 New York City Municipal Water Finance Authority, New York, 6/15 at 100.00 AAA 6,171,482 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 7,390,958 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured 2,230 Upper Mohawk Valley Regional Water Finance Authority, No Opt. Call Aaa 1,126,864 New York, Water System Revenue Bonds, Series 2000, 0.000%, 4/01/23 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 20,720 Total Water and Sewer 20,416,780 ------------------------------------------------------------------------------------------------------------------------------------ $ 547,422 Total Investments (cost $531,280,728) - 158.8% 554,709,034 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (14,635,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 0.6% 2,314,201 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.2)% (193,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 349,388,235 ====================================================================================================================
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. The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 34 NUN Nuveen New York Quality Income Municipal Fund, Inc. Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.4% (11.0% OF TOTAL INVESTMENTS) $ 500 Amherst Industrial Development Agency, New York, Revenue 8/10 at 102.00 AAA $ 536,055 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 1,141,797 610 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 652,682 6,000 Dormitory Authority of the State of New York, Consolidated No Opt. Call AAA 6,462,300 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 No Opt. Call AAA 1,155,980 Revenue Bonds, New York University, Series 2001-1, 5.500%, 7/01/40 - AMBAC Insured 670 Dormitory Authority of the State of New York, Insured 7/12 at 100.00 AAA 703,319 Revenue Bonds, Fordham University, Series 2002, 5.000%, 7/01/19 - FGIC Insured 2,750 Dormitory Authority of the State of New York, Insured 7/11 at 100.00 AAA 2,841,025 Revenue 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 2,152,360 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 745 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 773,213 Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured 2,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 2,261,000 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 888,536 640 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 711,411 4,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 4,572,960 State University Educational Facilities, 1989 Resolution, Series 2000C, 5.750%, 5/15/16 - FSA Insured 1,915 Dormitory Authority of the State of New York, Second General No Opt. Call AAA 2,161,365 Resolution Consolidated Revenue Bonds, City University System, Series 1993A, 5.750%, 7/01/18 - FSA Insured 2,000 Dormitory Authority of the State of New York, Third General 7/08 at 102.00 AAA 2,054,400 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 6,600,971 Revenue Refunding Bonds, Hofstra University, Series 1998, 5.000%, 7/01/23 - MBIA Insured 4,775 New York City Industrial Development Agency, New York, 12/07 at 102.00 AAA 4,875,562 Civic Facility Revenue Bonds, Trinity Episcopal School, Series 1997, 5.250%, 6/15/27 - MBIA Insured 1,850 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 2,074,276 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006: 2,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA 2,063,420 3,240 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 3,320,611 3,280 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 3,583,269 Revenue Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 35 NUN Nuveen New York Quality Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 1,215 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA $ 1,258,752 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured 6,250 New York City Trust for Cultural Resources, New York, Revenue 1/08 at 101.00 AAA 6,385,063 Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 1,005 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 1,077,933 Yankee Stadium, Series 2006, Residuals 1875, 6.870%, 3/01/46 - FGIC Insured (IF) 1,005 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 1,047,089 University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 57,730 Total Education and Civic Organizations 61,355,349 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 17.3% (11.0% OF TOTAL INVESTMENTS) 750 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 769,268 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 2/08 at 102.00 AAA 4,079,654 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 7,037,310 Mortgage Hospital Revenue Bonds, New York and Presbyterian Hospital, Series 1998, 4.750%, 8/01/27 - AMBAC Insured 2,420 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 2,526,335 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 2,700 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 2,784,294 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 1,044,580 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 Revenue 7/09 at 101.00 AAA 9,360,270 Bonds, Catholic Health Services of Long Island Obligated Group - St. Francis Hospital, Series 1999A, 5.500%, 7/01/24 - MBIA Insured 1,800 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 1,854,216 Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 - AGC 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 2,641,125 3,300 5.000%, 7/01/22 - MBIA Insured 7/13 at 100.00 AAA 3,450,744 2,635 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,856,498 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 2,150 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,198,225 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 9,000 Dormitory Authority of the State of New York, Revenue Bonds, 7/11 at 101.00 AAA 9,453,060 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 2,963,632 3,065 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 3,244,119 1,265 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 1,416,952 North Shore Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured 3,350 New York State Medical Care Facilities Finance Agency, 2/08 at 100.00 AAA 3,414,588 FHA-Insured Mortgage Revenue Bonds, Montefiore Medical Center, Series 1995A, 5.750%, 2/15/25 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 58,730 Total Health Care 61,094,870 ------------------------------------------------------------------------------------------------------------------------------------ 36 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.8% (2.4% 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 $ 1,617,900 1,500 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 1,615,185 5,515 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 5,746,685 2,208 New York City Housing Development Corporation, New York, 10/07 at 105.00 AAA 2,323,145 Multifamily Housing Revenue Bonds, Pass-Through Certificates, Series 1991C, 6.500%, 2/20/19 - AMBAC Insured 560 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 529,698 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) 45 New York State Housing Finance Agency, FHA-Insured 2/08 at 100.00 AAA 45,073 Multifamily Housing Mortgage Revenue Bonds, Series 1994B, 6.250%, 8/15/14 - AMBAC Insured 1,440 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 1,456,963 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 12,768 Total Housing/Multifamily 13,334,649 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.6% OF TOTAL INVESTMENTS) 3,765 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 3,812,063 PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 - XLCA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.3% (0.8% OF TOTAL INVESTMENTS) 4,450 Castle Rest Residential Healthcare Facility, Syracuse, New York, 2/08 at 102.00 AAA 4,505,759 FHA-Insured Mortgage Revenue Bonds, Series 1997A, 5.750%, 8/01/37 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.2% (9.0% OF TOTAL INVESTMENTS) 1,500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 1,616,355 5.250%, 3/15/16 - FGIC Insured 805 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 871,042 5.250%, 4/01/13 - MBIA Insured 14,630 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 15,065,535 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 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 2,376,788 1,000 5.000%, 3/01/17 - FGIC Insured 3/12 at 100.00 AAA 1,050,500 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 5,624,248 2,095 5.250%, 8/01/15 - FSA Insured 8/10 at 101.00 AAA 2,198,284 5,000 5.000%, 8/01/16 - FGIC Insured 8/10 at 101.00 AAA 5,229,650 125 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 AAA 130,955 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 3,557,298 1,700 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,797,546 4,130 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 4,382,591 Series 2005J, 5.000%, 3/01/19 - FGIC 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 1,844,908 1,915 4.000%, 6/15/19 - FGIC Insured 6/12 at 100.00 AAA 1,891,963 2,305 Yonkers, New York, General Obligation Bonds, Series 2005B, 8/15 at 100.00 AAA 2,435,670 5.000%, 8/01/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 48,010 Total Tax Obligation/General 50,073,333 ------------------------------------------------------------------------------------------------------------------------------------ 37 NUN Nuveen New York Quality Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 50.8% (32.3% OF TOTAL INVESTMENTS) $ 3,340 Dormitory Authority of the State of New York, 853 Schools 7/09 at 101.00 AAA $ 3,479,812 Program Insured Revenue Bonds, Harmony Heights School, Issue 1, Series 1999C, 5.500%, 7/01/18 - AMBAC Insured 5 Dormitory Authority of the State of New York, Improvement 2/08 at 100.00 AAA 5,026 Revenue Bonds, Mental Health Services Facilities, Series 1996B, 5.125%, 8/15/21 - MBIA Insured 5 Dormitory Authority of the State of New York, Improvement 2/08 at 101.00 Aaa 5,109 Revenue Bonds, Mental Health Services Facilities, Series 1997A, 5.750%, 8/15/22 - MBIA Insured 195 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 202,153 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 1,112,120 1,100 5.250%, 8/15/21 - FSA Insured 8/12 at 100.00 AAA 1,170,653 1,135 5.250%, 8/15/22 - FSA Insured 8/12 at 100.00 AAA 1,203,997 3,610 Dormitory Authority of the State of New York, Revenue Bonds, 7/14 at 100.00 AAA 3,820,174 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 1,534,864 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 2005D1: 2,300 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA 2,471,488 1,200 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 1,251,432 7,900 Dormitory Authority of the State of New York, Revenue Bonds, 10/12 at 100.00 AAA 8,392,012 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 1,040 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 1,095,609 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 1,302,696 1,000 5.750%, 5/01/22 - FSA Insured 5/12 at 100.00 AAA 1,080,100 1,710 Erie County Industrial Development Agency, New York, 5/14 at 100.00 AAA 1,900,648 School Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured Erie County Industrial Development Agency, New York, School Facility Revenue Bonds, Buffalo City School District Project, Series 2007A: 5,980 5.750%, 5/01/27 - FSA Insured (UB) 5/17 at 101.00 AAA 6,705,374 1,670 5.750%, 5/01/28 - FSA Insured (UB) 5/17 at 101.00 AAA 1,871,168 7,500 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 7,905,675 Tax Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 4,100 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 4,269,043 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 4,954,844 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 2,304,380 3,000 5.500%, 1/01/19 - MBIA Insured 7/12 at 100.00 AAA 3,231,420 6,000 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 6,457,380 3,000 5.000%, 7/01/25 - FGIC Insured 7/12 at 100.00 AAA 3,109,950 8,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 8,208,720 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 1,602,847 1,555 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 1,598,618 38 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: $ 2,720 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA $ 2,842,210 1,990 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 2,076,943 3,470 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,608,765 1,500 5.000%, 10/15/32 - AMBAC Insured 10/14 at 100.00 AAA 1,554,450 1,600 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AAA 1,675,616 Building Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 - FGIC Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2002B: 10,170 5.250%, 5/01/12 - MBIA Insured 11/11 at 101.00 AAA 10,860,744 2,420 5.250%, 5/01/17 - MBIA Insured 11/11 at 101.00 AAA 2,588,626 970 5/01/30 - MBIA Insured 11/11 at 101.00 AAA 995,589 5,345 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 5,700,336 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 2,114,740 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 1,956,899 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 3,659,810 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 2,629,986 6,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 6,205,769 3,750 New York State Local Government Assistance Corporation, No Opt. Call AAA 4,092,000 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 1,051,830 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/22 - MBIA Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: 8,455 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 9,591,012 2,600 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 2,742,012 1,000 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 1,043,870 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 13,195,457 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,061,020 3,190 New York State Urban Development Corporation, Revenue No Opt. Call AAA 3,494,390 Refunding Bonds, State Facilities, Series 1995, 5.600%, 4/01/15 - MBIA Insured 500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095 Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 - FSA Insured 1,980 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 2,048,350 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 3,332,430 6,000 5.500%, 7/01/18 - FSA Insured No Opt. Call AAA 6,799,860 ------------------------------------------------------------------------------------------------------------------------------------ 168,235 Total Tax Obligation/Limited 179,688,121 ------------------------------------------------------------------------------------------------------------------------------------ 39 NUN Nuveen New York Quality Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 16.4% (10.4% OF TOTAL INVESTMENTS) $ 9,700 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA $ 9,476,219 Revenue Bonds, Series 2006B, 4.500%, 11/15/36 - FSA Insured 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 4,130,272 4,000 5.125%, 11/15/22 - FGIC Insured 11/12 at 100.00 AAA 4,219,960 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 2,885,236 8,500 5.000%, 11/15/25 - MBIA Insured 11/12 at 100.00 AAA 8,816,455 New York State Thruway Authority, General Revenue Bonds, Series 2005F: 2,665 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 2,815,972 6,395 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 6,624,772 1,700 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 1,769,156 Series 2005G, 5.000%, 1/01/30 - FSA Insured 2,500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 2,578,900 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 1,770,567 Revenue Bonds, One Hundred Fortieth Series 2005, 5.000%, 12/01/31 - XLCA Insured 1,570 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 1,787,728 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) 5,000 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 5,275,250 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 1,788,811 3,800 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 4,041,718 ------------------------------------------------------------------------------------------------------------------------------------ 55,580 Total Transportation 57,981,016 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 19.2% (12.2% OF TOTAL INVESTMENTS) (4) 175 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa 183,439 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 (Pre-refunded 8/15/10) - FSA Insured 2,625 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 3,093,143 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 1,508,672 Bonds, State University Dormitory Facilities, Series 2001, 5.500%, 7/01/20 (Pre-refunded 7/01/11) - FGIC Insured 6,100 Dormitory Authority of the State of New York, Revenue Bonds, 5/12 at 101.00 AAA 6,572,018 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 1,816,591 2,230 0.000%, 7/01/18 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,035,678 2,495 0.000%, 7/01/19 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 2,277,586 1,870 0.000%, 7/01/21 (Pre-refunded 7/01/10) - MBIA Insured 7/10 at 101.00 AAA 1,707,048 2,765 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 2,823,176 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,659,550 Revenue Bonds, Series 2001A, 5.250%, 9/01/28 (Pre-refunded 9/01/11) - 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 988,842 1,410 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 6/11 at 101.00 Aaa 1,532,162 40 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 3,000 Metropolitan Transportation Authority, New York, Dedicated Tax 10/15 at 100.00 AAA $ 3,223,050 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 4,345,440 1,000 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured 10/14 at 100.00 AAA 1,086,360 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 10,187,898 4,500 4.750%, 7/01/26 - FGIC Insured (ETM) 7/08 at 101.00 AAA 4,544,865 2,000 New York City Municipal Water Finance Authority, New York, 6/11 at 100.00 AAA 2,151,940 Water and Sewerage System Revenue Bonds, Fiscal Series 2002A, 5.750%, 6/15/27 (Pre-refunded 6/15/11) - MBIA Insured 30 New York City Transitional Finance Authority, New York, Future 11/11 at 101.00 Aaa 31,987 Tax Secured Bonds, Fiscal Series 2002B, 5.000%, 5/01/30 (Pre-refunded 11/01/11) - MBIA Insured 655 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 704,767 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 4,875 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 Aaa 5,196,994 Series 2002C, 5.125%, 3/15/25 (Pre-refunded 3/15/12) - FSA Insured 6,965 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 7,470,729 Fund Bonds, Series 2002A, 5.250%, 4/01/20 (Pre-refunded 4/01/12) - FSA Insured Putnam Valley Central School District, Putnam and Westchester Counties, New York, General Obligation Bonds, Series 1999: 525 5.875%, 6/15/19 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/25 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 525 5.875%, 6/15/27 (Pre-refunded 6/15/10) - FSA Insured 6/10 at 100.00 Aaa 557,335 ------------------------------------------------------------------------------------------------------------------------------------ 65,080 Total U.S. Guaranteed 67,813,940 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 10.6% (6.8% OF TOTAL INVESTMENTS) 1,650 Islip Resource Recovery Agency, New York, Revenue Bonds, No Opt. Call AAA 1,846,878 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 1,901,440 4,000 0.000%, 6/01/25 - FSA Insured No Opt. Call AAA 1,802,840 5,000 0.000%, 6/01/26 - FSA Insured No Opt. Call AAA 2,134,650 7,000 0.000%, 6/01/27 - FSA Insured No Opt. Call AAA 2,833,460 10,500 0.000%, 6/01/28 - FSA Insured No Opt. Call AAA 4,010,370 7,000 0.000%, 6/01/29 - FSA Insured No Opt. Call AAA 2,535,750 2,500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,586,225 Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured 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 6,515,327 8,020 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 8,401,752 750 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 773,108 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured Power Authority of the State of New York, General Revenue Bonds, Series 2006A: 1,300 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 1,391,273 865 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 920,421 ------------------------------------------------------------------------------------------------------------------------------------ 58,765 Total Utilities 37,653,494 ------------------------------------------------------------------------------------------------------------------------------------ 41 NUN Nuveen New York Quality Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 5.5% (3.5% OF TOTAL INVESTMENTS) $ 830 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA $ 889,005 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 1,453,201 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.000%, 6/15/33 - MBIA Insured 3,000 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,085,020 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 6,802,182 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 7,286,860 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 18,715 Total Water and Sewer 19,516,268 ------------------------------------------------------------------------------------------------------------------------------------ $ 551,828 Total Investments (cost $536,134,644) - 157.5% 556,828,862 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.2)% (14,845,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.4% 8,579,681 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (55.7)% (197,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 353,563,543 ====================================================================================================================
FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ Goldman Sachs $2,250,000 Receive 3-Month USD-LIBOR 5.593% Semi-Annually 10/01/08 10/01/37 $(33,606) ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)
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. The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 42 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.0% (12.9% OF TOTAL INVESTMENTS) Amherst Industrial Development Agency, New York, Revenue Bonds, UBF Faculty/Student Housing Corporation, University of Buffalo Project, Series 2000A: $ 250 5.625%, 8/01/20 - AMBAC Insured 8/10 at 102.00 AAA $ 268,028 250 5.750%, 8/01/25 - AMBAC Insured 8/10 at 102.00 AAA 267,493 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 1,716,210 500 5.500%, 7/01/40 - AMBAC Insured No Opt. Call AAA 577,990 4,820 Dormitory Authority of the State of New York, Insured Revenue 7/08 at 101.00 Aaa 4,912,687 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 843,842 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 1,076,180 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 264,657 Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured 700 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 791,350 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 277,668 200 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 222,316 1,000 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 1,122,320 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 1,353,680 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 2,483,030 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 2,055,957 Appropriation Lease Bonds, Upstate Community Colleges, Series 2005A, 5.000%, 7/01/19 - FGIC Insured 635 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 711,981 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) 1,110 New York City Industrial Development Agency, New York, 1/17 at 100.00 AAA 1,137,617 PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006, 5.000%, 1/01/46 - AMBAC Insured 1,120 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 1,223,555 Revenue Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 1,000 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 1,031,760 Revenue Bonds, Ethical Culture Fieldston School, Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured 415 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 429,944 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured 1,250 New York City Trust for Cultural Resources, New York, 1/08 at 101.00 AAA 1,277,013 Revenue Refunding Bonds, Museum of Modern Art, Series 1996A, 5.500%, 1/01/21 - AMBAC Insured 43 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS (continued) $ 350 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA $ 375,400 Yankee Stadium, Series 2006, Residuals 1875, 6.870%, 3/01/46 - FGIC Insured (IF) 345 New York State Dormitory Authority, Revenue Bonds, New York 7/17 at 100.00 Aaa 359,449 University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 23,165 Total Education and Civic Organizations 24,780,127 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 23.3% (15.1% OF TOTAL INVESTMENTS) 3,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 100.00 AAA 3,004,380 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 205,138 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 2,925,510 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 1,465,744 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured 830 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 866,470 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 1,405 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,448,864 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 3,119,040 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 620 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 638,674 Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 - AGC Insured 2,740 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 2,894,673 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 1,910 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 2,070,555 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 740 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 756,598 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 1,500 Dormitory Authority of the State of New York, Revenue Bonds, 1/08 at 102.00 AAA 1,535,520 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 3,623,672 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 1,070,880 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 1,719,965 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,058,440 435 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 487,252 North Shore Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 27,765 Total Health Care 28,891,375 ------------------------------------------------------------------------------------------------------------------------------------ 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 431,440 400 5.000%, 7/01/16 - FGIC Insured 7/15 at 100.00 AAA 430,716 2,165 5.000%, 7/01/25 - FGIC Insured 7/15 at 100.00 AAA 2,255,952 44 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY (continued) $ 200 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA $ 189,178 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) 1,900 New York State Housing Finance Agency, Mortgage Revenue 11/07 at 101.00 AAA 1,922,382 Refunding Bonds, Housing Project, Series 1996A, 6.125%, 11/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 5,065 Total Housing/Multifamily 5,229,668 ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.7% OF TOTAL INVESTMENTS) 1,290 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA 1,306,125 PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 - XLCA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 1.6% (1.0% OF TOTAL INVESTMENTS) 1,000 Babylon Industrial Development Agency, New York, Revenue 8/09 at 101.00 AAA 1,049,870 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 885,641 Bonds, NYSARC Inc., Series 2001A, 5.000%, 7/01/26 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 1,850 Total Long-Term Care 1,935,511 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 12.8% (8.3% OF TOTAL INVESTMENTS) 500 Erie County, New York, General Obligation Bonds, Series 2003A, 3/13 at 100.00 Aaa 538,785 5.250%, 3/15/16 - FGIC Insured 315 Erie County, New York, General Obligation Bonds, Series 2004B, No Opt. Call Aaa 340,843 5.250%, 4/01/13 - MBIA Insured 5,005 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 5,153,999 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 210 Nassau County, New York, General Obligation Improvement No Opt. Call AAA 236,441 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 2,031,040 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 1,061,880 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,163,118 1,000 New York City, New York, General Obligation Bonds, Fiscal 3/15 at 100.00 AAA 1,061,160 Series 2005J, 5.000%, 3/01/19 - FGIC Insured 915 Niagara Falls, New York, General Obligation Bonds, Series 1994, No Opt. Call AAA 1,086,425 7.500%, 3/01/13 - MBIA Insured 1,000 Red Hook Central School District, Dutchess County, New York, 6/12 at 100.00 Aaa 1,055,530 General Obligation Refunding Bonds, Series 2002, 5.125%, 6/15/18 - FSA Insured 500 West Islip Union Free School District, Suffolk County, New York, 10/15 at 100.00 Aaa 540,375 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 1,641,907 5.000%, 8/01/16 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 15,070 Total Tax Obligation/General 15,911,503 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 50.3% (32.6% OF TOTAL INVESTMENTS) 690 Dormitory Authority of the State of New York, Department of 7/15 at 100.00 AAA 732,104 Health Revenue Bonds, Series 2005A, 5.250%, 7/01/24 - CIFG Insured 75 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 AAA 77,751 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 520,180 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 1,280,446 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 772,583 Mental Health Services Facilities Improvements, Series 2005B, 5.000%, 2/15/30 - AMBAC Insured 45 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) Dormitory Authority of the State of New York, Revenue Bonds, Mental Health Services Facilities Improvements, Series 2005D1: $ 925 5.000%, 2/15/15 - FGIC Insured No Opt. Call AAA $ 993,968 600 5.000%, 8/15/23 - FGIC Insured 2/15 at 100.00 AAA 625,716 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 4,567,803 875 5.000%, 10/01/30 - MBIA Insured 10/12 at 100.00 AAA 902,493 375 Dormitory Authority of the State of New York, State Personal 3/15 at 100.00 AAA 395,051 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 814,185 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 555,745 Facility Revenue Bonds, Buffalo City School District, Series 2004, 5.750%, 5/01/26 - FSA Insured 2,615 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 2,930,003 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 2,500 Metropolitan Transportation Authority, New York, Dedicated Tax 11/12 at 100.00 AAA 2,635,225 Fund Bonds, Series 2002A, 5.250%, 11/15/25 - FSA Insured 700 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 728,861 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 1,454,139 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 1,728,285 1,500 5.500%, 1/01/20 - MBIA Insured 7/12 at 100.00 AAA 1,614,345 2,000 5.000%, 7/01/30 - AMBAC Insured 7/12 at 100.00 AAA 2,052,180 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 1,059,700 580 4.750%, 11/15/21 - AMBAC Insured 11/13 at 100.00 AAA 597,847 580 4.750%, 11/15/22 - AMBAC Insured 11/13 at 100.00 AAA 596,269 New York City Sales Tax Asset Receivable Corporation, New York, Dedicated Revenue Bonds, Local Government Assistance Corporation, Series 2004A: 920 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 961,336 680 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 709,709 3,840 5.000%, 10/15/29 - AMBAC Insured 10/14 at 100.00 AAA 3,993,561 New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003C: 715 5.250%, 8/01/20 - AMBAC Insured 8/12 at 100.00 AAA 762,533 2,090 5.250%, 8/01/21 - AMBAC Insured 8/12 at 100.00 AAA 2,228,943 1,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,060,020 Tax Secured Bonds, Fiscal Series 2003E, 5.250%, 2/01/22 - MBIA Insured 1,000 New York City Transitional Finance Authority, New York, Future 2/14 at 100.00 AAA 1,060,650 Tax Secured Bonds, Fiscal Series 2004C, 5.000%, 2/01/19 - XLCA Insured 1,500 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 1,568,490 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 1,073,781 2,065 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 2,112,929 1,500 New York State Local Government Assistance Corporation, No Opt. Call AAA 1,636,800 Revenue Bonds, Series 1993E, 5.250%, 4/01/16 - FSA Insured 46 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/14 at 100.00 AAA $ 1,044,270 Fund Bonds, Second Generation, Series 2004, 5.000%, 4/01/23 - MBIA Insured New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: 2,960 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 3,357,706 500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 527,310 750 New York State Thruway Authority, State Personal Income Tax 9/14 at 100.00 AAA 782,903 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 2,234,715 3,800 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 4,031,875 1,900 New York State Urban Development Corporation, Revenue No Opt. Call AAA 2,030,758 Bonds, Correctional Facilities, Series 1994A, 5.250%, 1/01/14 - FSA Insured 500 New York State Urban Development Corporation, State Personal 3/15 at 100.00 AAA 518,095 Income Tax Revenue Bonds, Series 2005B, 5.000%, 3/15/30 - FSA Insured 345 Niagara Falls City School District, Niagara County, New York, 6/15 at 100.00 AAA 356,909 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 1,133,310 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 1,556,205 Agreement Revenue Bonds, John P. Colahan Court Complex, Series 1999, 5.000%, 4/15/16 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 58,575 Total Tax Obligation/Limited 62,377,687 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 14.8% (9.6% OF TOTAL INVESTMENTS) 3,000 Metropolitan Transportation Authority, New York, Transportation 11/16 at 100.00 AAA 2,930,790 Revenue Bonds, Series 2006B, 4.500%, 11/15/36 - FSA Insured 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 541,320 2,010 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 2,084,832 2,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 2,074,460 Revenue Refunding Bonds, Series 2002E, 5.000%, 11/15/25 - MBIA Insured New York State Thruway Authority, General Revenue Bonds, Series 2005F: 925 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 977,401 2,875 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 2,978,299 600 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 624,408 Series 2005G, 5.000%, 1/01/30 - FSA Insured 500 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 515,780 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 1,045,490 565 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 588,453 545 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 620,581 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) 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 888,709 2,300 5.250%, 11/15/22 - MBIA Insured 11/12 at 100.00 AAA 2,446,303 ------------------------------------------------------------------------------------------------------------------------------------ 17,600 Total Transportation 18,316,826 ------------------------------------------------------------------------------------------------------------------------------------ 47 NNF Nuveen Insured New York Premium Income Municipal Fund, Inc. (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 12.3% (8.0% OF TOTAL INVESTMENTS) (4) $ 70 Dormitory Authority of the State of New York, Improvement 8/10 at 100.00 Aaa $ 73,375 Revenue Bonds, Mental Health Services Facilities, Series 2000D, 5.250%, 8/15/30 (Pre-refunded 8/15/10) - FSA Insured 3,215 Dormitory Authority of the State of New York, Revenue Bonds, 7/10 at 101.00 AAA 2,934,845 University of Rochester, Series 2000A, 0.000%, 7/01/24 (Pre-refunded 7/01/10) - MBIA Insured 1,345 Long Island Power Authority, New York, Electric System General 6/08 at 101.00 AAA 1,373,299 Revenue Bonds, Series 1998A, 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 625 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 664,888 Revenue Bonds, Series 2001A, 5.250%, 9/01/28 (Pre-refunded 9/01/11) - FSA Insured 500 Longwood Central School District, Suffolk County, New York, 6/11 at 101.00 Aaa 543,320 Series 2000, 5.750%, 6/15/20 (Pre-refunded 6/15/11) - FGIC Insured 1,500 Metropolitan Transportation Authority, New York, Dedicated Tax 10/15 at 100.00 AAA 1,611,525 Fund Bonds, Series 1998A, 4.750%, 4/01/28 (Pre-refunded 10/01/15) - FGIC Insured 500 Metropolitan Transportation Authority, New York, Dedicated Tax 10/14 at 100.00 AAA 543,180 Fund Bonds, Series 1999A, 5.000%, 4/01/29 (Pre-refunded 10/01/14) - FSA Insured New York City Transitional Finance Authority, New York, Future Tax Secured Bonds, Fiscal Series 2003C: 285 5.250%, 8/01/20 (Pre-refunded 8/01/12) - AMBAC Insured 8/12 at 100.00 Aaa 306,654 255 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 8/12 at 100.00 Aaa 274,375 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,072,610 Fund Bonds, Series 2002A, 5.250%, 4/01/18 (Pre-refunded 4/01/12) - FSA Insured 1,000 New York State Thruway Authority, Highway and Bridge Trust 4/12 at 100.00 AAA 1,062,270 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 2,192,220 Personal Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) - FGIC Insured 85 Niagara Falls, New York, General Obligation Bonds, No Opt. Call AAA 101,257 Series 1994, 7.500%, 3/01/13 - MBIA Insured (ETM) 2,115 Niagara Falls, Niagara County, New York, General Obligation No Opt. Call AAA 2,224,261 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 283,102 Waterworks Revenue Bonds, Series 1993, 5.100%, 6/01/12 - MBIA Insured (ETM) ------------------------------------------------------------------------------------------------------------------------------------ 14,760 Total U.S. Guaranteed 15,261,181 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 5.6% (3.6% OF TOTAL INVESTMENTS) 500 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 517,245 Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured 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 2,393,170 2,930 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 3,069,468 250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 257,703 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured Power Authority of the State of New York, General Revenue Bonds, Series 2006A: 375 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 401,329 250 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 266,018 ------------------------------------------------------------------------------------------------------------------------------------ 6,575 Total Utilities 6,904,933 ------------------------------------------------------------------------------------------------------------------------------------ 48 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 8.6% (5.5% OF TOTAL INVESTMENTS) $ 1,660 New York City Municipal Water Finance Authority, New York, 6/10 at 101.00 AAA $ 1,778,009 Water and Sewerage System Revenue Bonds, Fiscal Series 2000B, 6.100%, 6/15/31 - MBIA Insured 3,305 New York City Municipal Water Finance Authority, New York, 6/14 at 100.00 AAA 3,398,664 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 2,064,110 Water and Sewerage System Revenue Bonds, Fiscal Series 2005C, 5.000%, 6/15/27 - MBIA Insured 735 Suffolk County Water Authority, New York, Subordinate No Opt. Call AAA 783,216 Lien 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 2,602,450 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,180 Total Water and Sewer 10,626,449 ------------------------------------------------------------------------------------------------------------------------------------ $ 181,895 Total Investments (cost $185,764,612) - 154.5% 191,541,385 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.1)% (5,080,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.0% 2,494,845 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (65,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 123,956,230 ====================================================================================================================
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. The Fund may invest in "zero coupon" securities. A zero coupon security does not pay a regular interest coupon to its holders during the life of the security. Tax-exempt income to the holder of the security comes from accretion of the difference between the original purchase price of the security at issuance and the par value of the security at maturity and is effectively paid at maturity. Such securities are included in the Portfolio of Investments with a 0.000% coupon rate in their description. The market prices of zero coupon securities generally are more volatile than the market prices of securities that pay interest periodically. (1) All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted. (2) Optional Call Provisions (not covered by the report of independent registered public accounting firm): Dates (month and year) and prices of the earliest optional call or redemption. There may be other call provisions at varying prices at later dates. Certain mortgage-backed securities may be subject to periodic principal paydowns. (3) Ratings (not covered by the report of independent registered public accounting firm): Using the higher of Standard & Poor's Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 49 NKO Nuveen Insured New York Dividend Advantage Municipal Fund Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.6% (2.3% OF TOTAL INVESTMENTS) $ 2,390 New York Counties Tobacco Trust II, Tobacco Settlement 6/11 at 101.00 BBB $ 2,390,406 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 1,016,530 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 840 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 836,472 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 4,230 Total Consumer Staples 4,243,408 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 17.3% (11.3% OF TOTAL INVESTMENTS) 4,000 Dormitory Authority of the State of New York, Insured Revenue No Opt. Call AAA 4,308,320 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 1,304,614 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 1,076,180 Bonds, State University Dormitory Facilities, Series 2003B, 5.250%, 7/01/32 (Mandatory put 7/01/13) - XLCA Insured 240 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 249,089 Barnard College, Series 2007A, 5.000%, 7/01/37 - FGIC Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, No Opt. Call AAA 565,250 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 3,815,078 New York University, Series 1998A, 6.000%, 7/01/18 - MBIA Insured 600 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 672,738 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) New York City Industrial Development Agency, New York, PILOT Revenue Bonds, Queens Baseball Stadium Project, Series 2006: 1,000 5.000%, 1/01/36 - AMBAC Insured 1/17 at 100.00 AAA 1,031,710 1,060 5.000%, 1/01/46 - AMBAC Insured 1/17 at 100.00 AAA 1,086,373 1,070 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 1,168,932 Revenue Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 395 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 409,224 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured 4,000 New York City Trust for Cultural Resources, New York, 7/12 at 100.00 AAA 4,174,640 Revenue Bonds, Museum of Modern Art, Series 2001D, 5.125%, 7/01/31 - AMBAC Insured 330 New York Industrial Development Agency, Revenue Bonds, 9/16 at 100.00 AAA 353,948 Yankee Stadium, Series 2006, Residuals 1875, 6.870%, 3/01/46 - FGIC Insured (IF) 330 New York State Dormitory Authority, Revenue Bonds, 7/17 at 100.00 Aaa 343,820 New York University, Series 2007, 5.000%, 7/01/32 - AMBAC Insured ------------------------------------------------------------------------------------------------------------------------------------ 19,055 Total Education and Civic Organizations 20,559,916 ------------------------------------------------------------------------------------------------------------------------------------ 50 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.2% (15.8% OF TOTAL INVESTMENTS) $ 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/08 at 101.00 AAA $ 2,010,660 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 1,465,744 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.125%, 2/01/22 - AMBAC Insured 785 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 819,493 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 9,800 Dormitory Authority of the State of New York, FHA-Insured 8/09 at 101.00 AAA 10,206,307 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 1,566,870 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 2,132,779 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 176,746 Catholic Health Services of Long Island Obligated Group - St. Charles Hospital and Rehabilitation Center, Series 1999A, 5.500%, 7/01/22 - MBIA Insured 585 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA 617,643 Health Quest System Inc., Series 2007B, 5.250%, 7/01/27 - AGC Insured 1,725 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 1,822,376 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 910 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 986,495 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 600 Dormitory Authority of the State of New York, Revenue 7/13 at 100.00 Baa1 615,858 Bonds, South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 700 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 715,701 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 690 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 738,907 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 1,587,660 1,000 5.250%, 2/15/22 - AMBAC Insured 2/13 at 100.00 AAA 1,058,440 395 New York State Dormitory Authority, Revenue Bonds, No Opt. Call AAA 442,447 North Shore Jewish Obligated Group, Series 2007A, 5.250%, 7/01/34 - FGIC Insured Suffolk County Industrial Development Agency, New York, Revenue Bonds, Huntington Hospital, Series 2002C: 725 6.000%, 11/01/22 11/12 at 100.00 Baa1 759,017 1,045 5.875%, 11/01/32 11/12 at 100.00 Baa1 1,074,730 ------------------------------------------------------------------------------------------------------------------------------------ 27,580 Total Health Care 28,797,873 ------------------------------------------------------------------------------------------------------------------------------------ HOUSING/MULTIFAMILY - 3.6% (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 2,774,050 1,375 5.500%, 11/01/34 (Alternative Minimum Tax) 5/12 at 100.00 AA 1,396,918 180 New York City, New York, Multifamily Housing Revenue Bonds, 1/17 at 100.00 AAA 170,260 Seaview Towers, Series 2006A, 4.750%, 7/15/39 - AMBAC Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 4,280 Total Housing/Multifamily 4,341,228 ------------------------------------------------------------------------------------------------------------------------------------ 51 NKO Nuveen Insured New York Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ INDUSTRIALS - 1.0% (0.7% OF TOTAL INVESTMENTS) $ 1,225 Syracuse Industrial Development Authority, New York, 1/17 at 100.00 AAA $ 1,240,313 PILOT Mortgage Revenue Bonds, Carousel Center Project, Series 2007A, 5.000%, 1/01/36 - XLCA Insured (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 2.7% (1.7% OF TOTAL INVESTMENTS) 525 Dormitory Authority of the State of New York, GNMA 2/17 at 103.00 AA 552,069 Collateralized Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 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 1,051,670 1,500 5.400%, 2/01/34 8/12 at 101.00 AAA 1,571,085 ------------------------------------------------------------------------------------------------------------------------------------ 3,025 Total Long-Term Care 3,174,824 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 14.4% (9.4% 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 1,601,616 2,375 5.375%, 11/15/20 - MBIA Insured 11/12 at 100.00 AAA 2,552,911 1,240 Canandaigua City School District, Ontario County, New York, 4/12 at 101.00 Aaa 1,333,880 General Obligation Refunding Bonds, Series 2002A, 5.375%, 4/01/17 - FSA Insured 4,760 Hudson Yards Infrastructure Corporation, New York, 2/17 at 100.00 AAA 4,901,705 Revenue Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 3,000 New York City, New York, General Obligation Bonds, 3/11 at 101.00 AAA 3,183,300 Fiscal Series 2001H, 5.250%, 3/15/16 - FGIC Insured 80 New York City, New York, General Obligation Bonds, 3/12 at 100.00 AAA 83,811 Fiscal 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 1,805,196 1,100 5.000%, 11/01/20 - FSA Insured 11/14 at 100.00 AAA 1,163,118 525 New York City, New York, General Obligation Bonds, 8/15 at 100.00 AAA 566,354 Fiscal Series 2006C, 5.000%, 8/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 16,270 Total Tax Obligation/General 17,191,891 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 41.5% (27.1% OF TOTAL INVESTMENTS) 250 Dormitory Authority of the State of New York, 853 Schools 7/08 at 101.00 AAA 255,458 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 227,696 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 309,033 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 3,186,840 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 168,555 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 434,232 Facility Revenue Bonds, Buffalo City School District, Series 2003, 5.750%, 5/01/20 - FSA Insured 2,485 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 2,784,343 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 2,290 Metropolitan Transportation Authority, New York, Dedicated 11/12 at 100.00 AAA 2,413,866 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 1,681,586 Tax Fund Bonds, Series 2006, 5.000%, 11/15/31 - MBIA Insured 52 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 4,000 Metropolitan Transportation Authority, New York, State Service 7/12 at 100.00 AAA $ 4,146,600 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 1,059,700 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: 3,400 5.000%, 10/15/25 - MBIA Insured 10/14 at 100.00 AAA 3,552,762 1,040 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 1,085,438 2,500 New York City Transitional Finance Authority, New York, 1/17 at 100.00 AAA 2,618,150 Building Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 - FGIC Insured 5,000 New York City Transitional Finance Authority, New York, 11/11 at 101.00 AAA 5,348,400 Future Tax Secured Bonds, Fiscal Series 2002B, 5.250%, 5/01/16 - MBIA Insured 890 New York City Transitional Finance Authority, New York, 8/12 at 100.00 AAA 949,167 Future Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 - AMBAC Insured 500 New York City Transitional Finance Authority, New York, 2/14 at 100.00 AAA 530,325 Future 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 518,735 1,000 5.000%, 11/15/44 - AMBAC Insured 11/15 at 100.00 AAA 1,023,210 New York State Thruway Authority, Highway and Bridge Trust Fund Bonds, Second Generation, Series 2005B: 2,625 5.500%, 4/01/20 - AMBAC Insured No Opt. Call AAA 2,977,695 500 5.000%, 4/01/21 - AMBAC Insured 10/15 at 100.00 AAA 527,310 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 2,021,885 1,000 5.250%, 6/01/22 - AMBAC Insured 6/13 at 100.00 AAA 1,061,020 750 New York State Tobacco Settlement Financing Corporation, 6/13 at 100.00 AA- 801,270 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 9,757,216 Refunding Bonds, State Facilities, Series 1995, 5.700%, 4/01/20 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 45,925 Total Tax Obligation/Limited 49,440,492 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.8% (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 2,109,980 4,000 5.000%, 11/15/25 - FGIC Insured 11/12 at 100.00 AAA 4,148,920 New York State Thruway Authority, General Revenue Bonds, Series 2005F: 865 5.000%, 1/01/20 - AMBAC Insured 1/15 at 100.00 AAA 914,002 140 5.000%, 1/01/30 - AMBAC Insured 1/15 at 100.00 AAA 145,030 350 New York State Thruway Authority, General Revenue Bonds, 7/15 at 100.00 AAA 364,238 Series 2005G, 5.000%, 1/01/30 - FSA Insured 85 Niagara Frontier Airport Authority, New York, Airport Revenue 4/09 at 101.00 AAA 87,683 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 534,030 1,000 5.000%, 12/01/28 - XLCA Insured 6/15 at 101.00 AAA 1,045,490 345 5.000%, 12/01/31 - XLCA Insured 6/15 at 101.00 AAA 359,321 4,000 Port Authority of New York and New Jersey, Consolidated 8/08 at 101.00 AAA 4,080,280 Revenue Bonds, One Hundred Twenty-Fourth Series 2001, 5.000%, 8/01/11 - FGIC Insured (Alternative Minimum Tax) 53 NKO Nuveen Insured New York Dividend Advantage Municipal Fund (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION (continued) $ 515 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA $ 586,420 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) 780 Triborough Bridge and Tunnel Authority, New York, Subordinate No Opt. Call AAA 888,709 Lien General Purpose Revenue Refunding Bonds, Series 2002E, 5.500%, 11/15/20 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ 14,580 Total Transportation 15,264,103 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 14.2% (9.3% OF TOTAL INVESTMENTS) (4) 160 Dormitory Authority of the State of New York, Judicial Facilities No Opt. Call AAA 188,534 Lease Revenue Bonds, Suffolk County Issue, Series 1986, 7.375%, 7/01/16 (ETM) 2,715 Long Island Power Authority, New York, Electric System General 9/11 at 100.00 AAA 2,888,271 Revenue Bonds, Series 2001A, 5.250%, 9/01/28 (Pre-refunded 9/01/11) - FSA Insured 110 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 Aaa 118,358 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/21 (Pre-refunded 8/01/12) - AMBAC Insured 3,170 New York City, New York, General Obligation Bonds, Fiscal 3/12 at 100.00 Aaa 3,379,379 Series 2002C, 5.125%, 3/15/25 (Pre-refunded 3/15/12) - FSA Insured 850 New York State Housing Finance Agency, Construction Fund No Opt. Call AAA 916,997 Bonds, State University, Series 1986A, 8.000%, 5/01/11 (ETM) 5,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 5,280,750 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 2,575 Puerto Rico Infrastructure Financing Authority, Special Obligation 10/10 at 101.00 AAA 2,716,419 Bonds, Series 2000A, 5.500%, 10/01/40 1,375 TSASC Inc., New York, Tobacco Asset-Backed Bonds, 7/12 at 100.00 AAA 1,475,609 Series 2002-1, 5.500%, 7/15/24 (Pre-refunded 7/15/12) ------------------------------------------------------------------------------------------------------------------------------------ 15,955 Total U.S. Guaranteed 16,964,317 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 12.5% (8.1% OF TOTAL INVESTMENTS) 5,000 Long Island Power Authority, New York, Electric System 9/11 at 100.00 AAA 5,172,450 General Revenue Bonds, Series 2001A, 5.000%, 9/01/27 - FSA Insured 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 1,792,242 1,300 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 1,361,880 250 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 257,703 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 5,000 New York State Energy Research and Development Authority, 11/08 at 102.00 AAA 5,164,750 Pollution Control Revenue Refunding Bonds, Niagara Mohawk Power Corporation, Series 1998A, 5.150%, 11/01/25 - AMBAC Insured 1,090 Westchester County Industrial Development Agency, 7/08 at 100.00 BBB 1,100,431 Westchester County, New York, Resource Recovery Revenue Bonds, RESCO Company, Series 1996, 5.500%, 7/01/09 (Alternative Minimum Tax) ------------------------------------------------------------------------------------------------------------------------------------ 14,340 Total Utilities 14,849,456 ------------------------------------------------------------------------------------------------------------------------------------ WATER AND SEWER - 2.0% (1.3% OF TOTAL INVESTMENTS) 2,295 Suffolk County Water Authority, New York, Waterworks 6/15 at 100.00 AAA 2,389,050 Revenue Bonds, Series 2005C, 5.000%, 6/01/28 - MBIA Insured ------------------------------------------------------------------------------------------------------------------------------------ $ 168,760 Total Long-Term Investments (cost $172,403,607) - 149.8% 178,456,871 =============----------------------------------------------------------------------------------------------------------------------- 54 PRINCIPAL AMOUNT (000) DESCRIPTION (1) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS - 3.4% (2.2% OF TOTAL INVESTMENTS) $ 4,000 Puerto Rico Government Development Bank, Adjustable VMIG-1 $ 4,000,000 Refunding Bonds, Variable Rate Demand Obligations, Series 1985, 3.620%, 12/01/15 - MBIA Insured (5) =============----------------------------------------------------------------------------------------------------------------------- Total Short-Term Investments (cost $4,000,000) 4,000,000 -------------------------------------------------------------------------------------------------------------------- Total Investments (cost $176,403,607) - 153.2% 182,456,871 -------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.1)% (4,830,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 2.1% 2,504,304 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (51.2)% (61,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 119,131,175 ====================================================================================================================
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, Standard &Poor's 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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. (5) Investment has a maturity of more than one year, but has variable rate and demand features which qualify it as a short-term investment. The rate disclosed is that in effect at the end of the reporting period. This rate changes periodically based on market conditions or a specified market index. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 55 NRK Nuveen Insured New York Tax-Free Advantage Municipal Fund Portfolio of INVESTMENTS September 30, 2007
PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ CONSUMER STAPLES - 3.6% (2.4% OF TOTAL INVESTMENTS) $ 1,500 New York Counties Tobacco Trust III, Tobacco Settlement 6/13 at 100.00 BBB $ 1,524,795 Pass-Through Bonds, Series 2003, 5.750%, 6/01/33 340 Puerto Rico, The Children's Trust Fund, Tobacco Settlement 5/12 at 100.00 BBB 338,572 Asset-Backed Refunding Bonds, Series 2002, 5.375%, 5/15/33 ------------------------------------------------------------------------------------------------------------------------------------ 1,840 Total Consumer Staples 1,863,367 ------------------------------------------------------------------------------------------------------------------------------------ EDUCATION AND CIVIC ORGANIZATIONS - 20.5% (13.4% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, Insured Revenue 9/12 at 100.00 AA 1,980,240 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 2,154,160 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 1,076,180 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 990,110 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 2,648,475 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 111,067 80 5.250%, 7/01/21 - AMBAC Insured No Opt. Call Aaa 88,926 260 New York City Industrial Development Agency, New York, 9/16 at 101.00 AAA 291,520 PILOT Revenue Bonds, Yankee Stadium Project, Residual Series 07-1032, 6.250%, 3/01/39 - FGIC Insured (IF) 475 New York City Industrial Development Agency, New York, 9/16 at 100.00 AAA 518,919 Revenue Bonds, Yankee Stadium Pilots, Trust 2148, 6.892%, 3/01/36 - FGIC Insured (IF) 500 New York City Industrial Development Agency, New York, 6/15 at 100.00 AAA 515,880 Revenue Bonds, Ethical Culture Fieldston School, Series 2005B-1, 5.000%, 6/01/35 - XLCA Insured 170 New York City Industrial Development Authority, New York, 9/16 at 100.00 AAA 176,122 PILOT Revenue Bonds, Yankee Stadium Project, Series 2006, 5.000%, 3/01/31 - FGIC Insured ------------------------------------------------------------------------------------------------------------------------------------ 10,085 Total Education and Civic Organizations 10,551,599 ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE - 24.2% (15.8% OF TOTAL INVESTMENTS) 2,000 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 100.00 AAA 2,058,180 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 3,086,130 Mortgage Hospital Revenue Bonds, St. Barnabas Hospital, Series 2002A, 5.000%, 2/01/31 - AMBAC Insured 345 Dormitory Authority of the State of New York, FHA-Insured 8/17 at 100.00 AAA 360,159 Mortgage Revenue Bonds, Hudson Valley Hospital Center, Series 2007, 5.000%, 8/15/27 (WI/DD, Settling 10/11/07) - FSA Insured 1,000 Dormitory Authority of the State of New York, FHA-Insured 2/15 at 100.00 AAA 1,044,580 Revenue Bonds, Montefiore Medical Center, Series 2005, 5.000%, 2/01/22 - FGIC Insured 56 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ HEALTH CARE (continued) $ 255 Dormitory Authority of the State of New York, Revenue Bonds, 7/17 at 100.00 AAA $ 262,681 Health Quest System Inc., Series 2007B, 5.125%, 7/01/37 - AGC Insured 25 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 AAA 26,411 Memorial Sloan-Kettering Cancer Center, Series 2003-1, 5.000%, 7/01/21 - MBIA Insured 810 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 878,089 New York and Presbyterian Hospital, Series 2004A, 5.250%, 8/15/15 - FSA Insured 750 Dormitory Authority of the State of New York, Revenue Bonds, 7/13 at 100.00 Baa1 769,823 South Nassau Communities Hospital, Series 2003B, 5.500%, 7/01/23 305 Dormitory Authority of the State of New York, Revenue Bonds, 8/14 at 100.00 AAA 311,841 The New York and Presbyterian Hospital Project, Series 2007, 5.000%, 8/15/36 - FSA Insured 500 New York City Health and Hospitals Corporation, New York, 2/12 at 100.00 AAA 535,440 Health System Revenue Bonds, Series 2002A, 5.500%, 2/15/17 - FSA Insured 2,640 New York City Health and Hospitals Corporation, New York, 2/13 at 100.00 AAA 2,794,282 Health System Revenue Bonds, Series 2003A, 5.250%, 2/15/21 - AMBAC Insured 320 New York State Dormitory Authority, Revenue Bonds, North 5/17 at 100.00 A3 319,984 Shore Jewish Obligated Group, Series 2007A, 5.000%, 5/01/32 ------------------------------------------------------------------------------------------------------------------------------------ 11,950 Total Health Care 12,447,600 ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM CARE - 0.6% (0.4% OF TOTAL INVESTMENTS) 300 Dormitory Authority of the State of New York, GNMA Collateralized 2/17 at 103.00 AA 315,468 Revenue Bonds, Cabrini of Westchester Project, Series 2006, 5.200%, 2/15/41 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/GENERAL - 9.4% (6.2% OF TOTAL INVESTMENTS) 2,055 Hudson Yards Infrastructure Corporation, New York, Revenue 2/17 at 100.00 AAA 2,116,177 Bonds, Series 2006A, 5.000%, 2/15/47 - FGIC Insured (UB) 2,185 New York City, New York, General Obligation Bonds, Fiscal 8/08 at 101.00 AAA 2,228,394 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 265,470 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 242,723 Series 2006C, 5.000%, 8/01/16 - FSA Insured ------------------------------------------------------------------------------------------------------------------------------------ 4,715 Total Tax Obligation/General 4,852,764 ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED - 45.7% (29.9% OF TOTAL INVESTMENTS) 2,695 Buffalo Fiscal Stability Authority, New York, Sales Tax Revenue No Opt. Call AAA 2,896,667 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 150,072 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 3,186,840 School Districts Financing Program, Series 2002D, 5.250%, 10/01/23 - MBIA Insured 1,085 Erie County Industrial Development Agency, New York, School 5/17 at 101.00 AAA 1,215,699 Facility Revenue Bonds, Buffalo City School District Project, Series 2007A, 5.750%, 5/01/28 - FSA Insured (UB) 715 Metropolitan Transportation Authority, New York, Dedicated Tax 11/16 at 100.00 AAA 744,479 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 1,036,650 Contract Refunding Bonds, Series 2002A, 5.000%, 7/01/25 - FGIC Insured 57 NRK Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued) Portfolio of INVESTMENTS September 30, (2007) PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ TAX OBLIGATION/LIMITED (continued) $ 560 Monroe Newpower Corporation, New York, Power Facilities 1/13 at 102.00 BBB $ 561,445 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 637,407 555 5.000%, 10/15/26 - MBIA Insured 10/14 at 100.00 AAA 579,248 740 New York City Transitional Finance Authority, New York, Building 1/17 at 100.00 AAA 774,972 Aid Revenue Bonds, Fiscal Series 2007S-2, 5.000%, 1/15/28 - FGIC Insured 3,000 New York City Transitional Finance Authority, New York, Future 8/12 at 100.00 AAA 3,199,440 Tax Secured Bonds, Fiscal Series 2003C, 5.250%, 8/01/18 - AMBAC Insured 2,000 New York City Transitional Finance Authority, New York, Future 2/13 at 100.00 AAA 2,091,320 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 1,342,980 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 1,077,642 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 1,276,980 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- 801,270 Tobacco Settlement Asset-Backed and State Contingency Contract-Backed Bonds, Series 2003B-1C, 5.500%, 6/01/21 1,860 New York State Urban Development Corporation, Service No Opt. Call AA- 1,967,341 Contract Revenue Bonds, Correctional and Youth Facilities, Series 2002A, 5.500%, 1/01/17 (Mandatory put 1/01/11) ------------------------------------------------------------------------------------------------------------------------------------ 22,155 Total Tax Obligation/Limited 23,540,452 ------------------------------------------------------------------------------------------------------------------------------------ TRANSPORTATION - 12.6% (8.2% OF TOTAL INVESTMENTS) 1,000 Metropolitan Transportation Authority, New York, Transportation 11/12 at 100.00 AAA 1,037,230 Revenue Refunding Bonds, Series 2002A, 5.000%, 11/15/25 - FGIC Insured 1,875 New York State Thruway Authority, General Revenue Bonds, 1/15 at 100.00 AAA 1,981,219 Series 2005F, 5.000%, 1/01/20 - AMBAC Insured 3,030 Port Authority of New York and New Jersey, Consolidated 11/12 at 101.00 AAA 3,190,560 Revenue Bonds, One Hundred Twenty-Eighth Series 2002, 5.000%, 11/01/22 - FSA Insured 225 Port Authority of New York and New Jersey, One Hundred and 8/17 at 100.00 AAA 256,203 Forty Eighth Consolidated Revenue Bonds, RITES Trust 1516, 6.651%, 8/15/32 - FSA Insured (IF) ------------------------------------------------------------------------------------------------------------------------------------ 6,130 Total Transportation 6,465,212 ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED - 27.2% (17.8% OF TOTAL INVESTMENTS) (4) 1,185 Dormitory Authority of the State of New York, FHA-Insured 2/13 at 102.00 AAA 1,297,314 Nursing Home Mortgage Revenue Bonds, Shorefront Jewish Geriatric Center Inc., Series 2002, 5.200%, 2/01/32 (Pre-refunded 2/01/13) 395 Dormitory Authority of the State of New York, Lease Revenue 7/09 at 101.00 AAA 410,132 Bonds, State University Dormitory Facilities, Series 1999B, 5.125%, 7/01/28 (Pre-refunded 7/01/09) - MBIA Insured 500 Dormitory Authority of the State of New York, Revenue Bonds, 5/13 at 100.00 Aaa 545,045 North Shore Long Island Jewish Group, Series 2003, 5.375%, 5/01/23 (Pre-refunded 5/01/13) 100 Erie County Water Authority, New York, Water Revenue Bonds, No Opt. Call AAA 112,530 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 1,021,040 1,310 5.125%, 12/01/22 (Pre-refunded 6/01/08) - FSA Insured 6/08 at 101.00 AAA 1,337,562 58 PRINCIPAL OPTIONAL CALL AMOUNT (000) DESCRIPTION (1) PROVISIONS (2) RATINGS (3) VALUE ------------------------------------------------------------------------------------------------------------------------------------ U.S. GUARANTEED (4) (continued) $ 215 New York City, New York, General Obligation Bonds, 8/08 at 101.00 AAA $ 220,087 Fiscal Series 1998H, 5.125%, 8/01/25 (Pre-refunded 8/01/08) - MBIA Insured 3,500 New York State Thruway Authority, Highway and Bridge 4/12 at 100.00 AAA 3,717,944 Trust Fund Bonds, Series 2002B, 5.000%, 4/01/20 (Pre-refunded 4/01/12) - AMBAC Insured 100 New York State Urban Development Corporation, Revenue 1/08 at 102.00 AAA 102,375 Refunding Bonds, Correctional Capital Facilities, Series 1998, 5.000%, 1/01/20 (Pre-refunded 1/01/08) - MBIA Insured 500 New York State Urban Development Corporation, State Personal 3/13 at 100.00 AAA 548,055 Income Tax Revenue Bonds, State Facilities and Equipment, Series 2002C-1, 5.500%, 3/15/21 (Pre-refunded 3/15/13) - FGIC Insured 2,000 Puerto Rico Electric Power Authority, Power Revenue Bonds, 7/10 at 101.00 AAA 2,112,300 Series 2000HH, 5.250%, 7/01/29 (Pre-refunded 7/01/10) - FSA Insured 1,975 Triborough Bridge and Tunnel Authority, New York, General 1/12 at 100.00 AAA 2,102,052 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 475,695 Series 1999-1, 6.250%, 7/15/34 (Mandatory put 7/15/24) (Pre-refunded 7/15/09) ------------------------------------------------------------------------------------------------------------------------------------ 13,230 Total U.S. Guaranteed 14,002,131 ------------------------------------------------------------------------------------------------------------------------------------ UTILITIES - 9.0% (5.9% 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 1,191,314 870 5.000%, 12/01/25 - FGIC Insured 6/16 at 100.00 AAA 911,412 125 Long Island Power Authority, New York, Electric System General 6/16 at 100.00 AAA 128,851 Revenue Bonds, Series 2006B, 5.000%, 12/01/35 - CIFG Insured 2,000 Power Authority of the State of New York, General Revenue 11/12 at 100.00 Aa2 2,106,540 Bonds, Series 2002A, 5.000%, 11/15/20 Power Authority of the State of New York, General Revenue Bonds, Series 2006A: 165 5.000%, 11/15/18 - FGIC Insured 11/15 at 100.00 AAA 176,585 110 5.000%, 11/15/19 - FGIC Insured 11/15 at 100.00 AAA 117,048 ------------------------------------------------------------------------------------------------------------------------------------ 4,400 Total Utilities 4,631,750 ------------------------------------------------------------------------------------------------------------------------------------ $ 74,805 Total Investments (cost $76,630,773) - 152.8% 78,670,343 =============----------------------------------------------------------------------------------------------------------------------- Floating Rate Obligations - (4.1)% (2,095,000) -------------------------------------------------------------------------------------------------------------------- Other Assets Less Liabilities - 3.7% 1,903,369 -------------------------------------------------------------------------------------------------------------------- Preferred Shares, at Liquidation Value - (52.4)% (27,000,000) -------------------------------------------------------------------------------------------------------------------- Net Assets Applicable to Common Shares - 100% $ 51,478,712 ====================================================================================================================
59 Nuveen Insured New York Tax-Free Advantage Municipal Fund (continued) Portfolio of INVESTMENTS September 30, (2007) FORWARD SWAPS OUTSTANDING AT SEPTEMBER 30, 2007:
FUND FIXED RATE UNREALIZED NOTIONAL PAY/RECEIVE FLOATING RATE FIXED RATE PAYMENT EFFECTIVE TERMINATION APPRECIATION COUNTERPARTY AMOUNT FLOATING RATE INDEX (ANNUALIZED) FREQUENCY DATE (5) DATE (DEPRECIATION) ------------------------------------------------------------------------------------------------------------------------------------ JPMorgan $750,000 Pay 3-Month USD-LIBOR 5.388% Semi-Annually 4/25/08 4/25/35 $ (6,878) Royal Bank of Canada 900,000 Pay SIFM 4.335 Quarterly 8/06/08 8/06/37 27,956 ------------------------------------------------------------------------------------------------------------------------------------ $21,078 ==================================================================================================================================== USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate) SIFM-The daily arithmetic average of the weekly SIFM (Securities Industry and Financial Markets) Municipal Swap Index.
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, Standard &Poor's 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 Group ("Standard & Poor's") or Moody's Investor Service, Inc. ("Moody's") rating. Ratings below BBB by Standard & Poor's or Baa by Moody's are considered to be below investment grade. (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. (5) Effective date represents the date on which both the Fund and counterparty commence interest payment accruals on each forward swap contract. WI/DD Purchased on a when-issued or delayed delivery basis. (ETM) Escrowed to maturity. (IF) Inverse floating rate investment. (UB) Underlying bond of an inverse floating rate trust reflected as a financing transaction pursuant to the provisions of SFAS No. 140. See accompanying notes to financial statements. 60 Statement of ASSETS & LIABILITIES September 30, 2007
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) ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Investments, at value (cost $399,092,377, $531,280,728, $536,134,644, $185,764,612, $176,403,607 and $76,630,773, respectively) $411,684,952 $554,709,034 $556,828,862 $191,541,385 $182,456,871 $78,670,343 Cash 773,885 -- 5,396,778 1,280,260 1,370,492 1,477,005 Unrealized appreciation on forward swaps -- -- -- -- -- 27,956 Receivables: Interest 5,631,279 7,380,780 7,241,645 2,605,993 2,487,239 992,378 Investments sold 41,142 41,143 15,429 20,572 -- -- Other assets 50,121 63,181 73,135 6,879 7,114 3,447 ------------------------------------------------------------------------------------------------------------------------------------ Total assets 418,181,379 562,194,138 569,555,849 195,455,089 186,321,716 81,171,129 ------------------------------------------------------------------------------------------------------------------------------------ LIABILITIES Cash overdraft -- 1,105,323 -- -- -- -- Floating rate obligations 10,910,000 14,635,000 14,845,000 5,080,000 4,830,000 2,095,000 Unrealized depreciation on forward swaps -- -- 33,606 -- -- 6,878 Payables: Investments purchased 1,855,792 2,486,553 2,523,044 865,341 818,425 359,690 Shares repurchased -- -- 48,356 -- -- -- Accrued expenses: Management fees 205,584 274,155 278,093 97,478 56,048 20,147 Other 99,877 130,220 136,533 40,178 33,679 21,583 Common share dividends payable 810,118 1,098,716 1,030,348 382,933 434,842 181,352 Preferred share dividends payable 75,951 75,936 97,326 32,929 17,547 7,767 ------------------------------------------------------------------------------------------------------------------------------------ Total liabilities 13,957,322 19,805,903 18,992,306 6,498,859 6,190,541 2,692,417 ------------------------------------------------------------------------------------------------------------------------------------ Preferred shares, at liquidation value 144,000,000 193,000,000 197,000,000 65,000,000 61,000,000 27,000,000 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $260,224,057 $349,388,235 $353,563,543 $123,956,230 $119,131,175 $51,478,712 ==================================================================================================================================== Common shares outstanding 17,623,633 23,316,402 23,912,139 8,329,215 7,964,131 3,513,360 ==================================================================================================================================== Net asset value per Common share outstanding (net assets applicable to Common shares, divided by Common shares outstanding) $ 14.77 $ 14.98 $ 14.79 $ 14.88 $ 14.96 $ 14.65 ==================================================================================================================================== NET ASSETS APPLICABLE TO COMMON SHARES CONSIST OF: ------------------------------------------------------------------------------------------------------------------------------------ Common shares, $.01 par value per share $ 176,236 $ 233,164 $ 239,121 $ 83,292 $ 79,641 $ 35,134 Paid-in surplus 247,581,994 326,283,892 332,786,619 118,406,693 113,014,433 49,509,303 Undistributed (Over-distribution of) net investment income 172,841 (463,260) (464,816) (156,836) (311,784) (21,367) Accumulated net realized gain (loss) from investments and derivative transactions (299,589) (93,867) 342,007 (153,692) 295,621 (105,006) Net unrealized appreciation (depreciation) of investments and derivative transactions 12,592,575 23,428,306 20,660,612 5,776,773 6,053,264 2,060,648 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares $260,224,057 $349,388,235 $353,563,543 $123,956,230 $119,131,175 $51,478,712 ==================================================================================================================================== Authorized shares: Common 200,000,000 200,000,000 200,000,000 200,000,000 Unlimited Unlimited Preferred 1,000,000 1,000,000 1,000,000 1,000,000 Unlimited Unlimited ====================================================================================================================================
See accompanying notes to financial statements. 61 Statement of OPERATIONS Year Ended September 30, 2007
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) ------------------------------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME $19,475,675 $26,344,151 $26,312,296 $9,006,074 $8,672,362 $3,650,880 ------------------------------------------------------------------------------------------------------------------------------------ EXPENSES Management fees 2,530,370 3,376,759 3,425,409 1,198,022 1,142,072 499,432 Preferred shares - auction fees 360,000 482,501 492,502 162,502 152,501 67,499 Preferred shares - dividend disbursing agent fees 30,000 30,000 40,000 20,000 10,000 10,000 Shareholders' servicing agent fees and expenses 32,649 34,240 33,008 11,488 1,444 761 Interest expense on floating rate obligations 463,960 624,068 631,384 212,857 215,245 77,556 Custodian's fees and expenses 117,953 131,736 122,293 52,907 54,561 24,128 Directors'/Trustees' fees and expenses 10,428 14,020 13,976 4,782 4,782 2,112 Professional fees 28,274 34,908 34,845 18,511 17,863 13,373 Shareholders' reports - printing and mailing expenses 40,906 49,441 49,321 18,336 19,868 11,335 Stock exchange listing fees 9,682 9,682 9,682 9,682 676 299 Investor relations expense 43,139 56,230 57,458 20,368 19,200 8,752 Portfolio insurance expense -- 1,595 -- -- -- -- Other expenses 28,828 40,815 41,330 20,410 17,077 10,540 ------------------------------------------------------------------------------------------------------------------------------------ Total expenses before custodian fee credit and expense reimbursement 3,696,189 4,885,995 4,951,208 1,749,865 1,655,289 725,787 Custodian fee credit (22,292) (22,974) (48,812) (14,240) (22,210) (9,536) Expense reimbursement -- -- -- -- (498,859) (252,159) ------------------------------------------------------------------------------------------------------------------------------------ Net expenses 3,673,897 4,863,021 4,902,396 1,735,625 1,134,220 464,092 ------------------------------------------------------------------------------------------------------------------------------------ Net investment income 15,801,778 21,481,130 21,409,900 7,270,449 7,538,142 3,186,788 ------------------------------------------------------------------------------------------------------------------------------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) from investments (289,832) (70,227) 489,723 (100,953) 290,925 14,123 Change in net unrealized appreciation (depreciation) of: Investments (5,068,948) (8,612,656) (8,923,129) (2,681,117) (2,914,384) (1,018,278) Forward swaps -- -- (33,606) -- -- 21,078 ------------------------------------------------------------------------------------------------------------------------------------ Net realized and unrealized gain (loss) (5,358,780) (8,682,883) (8,467,012) (2,782,070) (2,623,459) (983,077) ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO PREFERRED SHAREHOLDERS From net investment income (4,510,422) (6,304,083) (6,627,607) (2,107,436) (2,085,917) (815,059) From accumulated net realized gains (286,874) (213,591) (264,550) (78,002) (22,551) (10,487) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Preferred shareholders (4,797,296) (6,517,674) (6,892,157) (2,185,438) (2,108,468) (825,546) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations $ 5,645,702 $ 6,280,573 $ 6,050,731 $2,302,941 $2,806,215 $1,378,165 ====================================================================================================================================
See accompanying notes to financial statements. 62 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 9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 15,801,778 $ 15,907,329 $ 21,481,130 $ 21,714,081 $ 21,409,900 $ 21,664,360 Net realized gain (loss) from investments (289,832) 1,505,810 (70,227) 782,279 489,723 923,472 Change in net unrealized appreciation (depreciation) of: Investments (5,068,948) (2,357,937) (8,612,656) (2,287,599) (8,923,129) (1,988,253) Forward swaps -- -- -- -- (33,606) -- Distributions to Preferred Shareholders: From net investment income (4,510,422) (2,983,982) (6,304,083) (4,842,564) (6,627,607) (4,914,770) From accumulated net realized gains (286,874) (1,531,013) (213,591) (1,136,286) (264,550) (1,218,931) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 5,645,702 10,540,207 6,280,573 14,229,911 6,050,731 14,465,878 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (11,824,817) (13,281,844) (16,441,617) (17,869,346) (15,623,437) (18,245,845) From accumulated net realized gains (1,259,452) (9,475,383) (754,478) (6,350,504) (950,942) (6,512,243) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (13,084,269) (22,757,227) (17,196,095) (24,219,850) (16,574,379) (24,758,088) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Repurchased (1,323,079) -- (1,641,093) -- (2,318,030) -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions (1,323,079) -- (1,641,093) -- (2,318,030) -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (8,761,646) (12,217,020) (12,556,615) (9,989,939) (12,841,678) (10,292,210) Net assets applicable to Common shares at the beginning of year 268,985,703 281,202,723 361,944,850 371,934,789 366,405,221 376,697,431 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $260,224,057 $268,985,703 $349,388,235 $361,944,850 $353,563,543 $366,405,221 ------------------------------------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ 172,841 $ 708,393 $ (463,260) $ 804,030 $ (464,816) $ 392,711 ====================================================================================================================================
See accompanying notes to financial statements. 63 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 9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06 ------------------------------------------------------------------------------------------------------------------------------------ OPERATIONS Net investment income $ 7,270,449 $ 7,298,685 $ 7,538,142 $ 7,563,621 $ 3,186,788 $ 3,166,870 Net realized gain (loss) from investments (100,953) 293,978 290,925 95,249 14,123 89,791 Change in net unrealized appreciation (depreciation) of: Investments (2,681,117) (707,934) (2,914,384) (701,606) (1,018,278) (257,428) Forward swaps -- -- -- -- 21,078 -- Distributions to Preferred Shareholders: From net investment income (2,107,436) (1,528,170) (2,085,917) (1,625,107) (815,059) (745,283) From accumulated net realized gains 78,002) (419,333) (22,551) (237,461) (10,487) (12,658) ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from operations 2,302,941 4,937,226 2,806,215 5,094,696 1,378,165 2,241,292 ------------------------------------------------------------------------------------------------------------------------------------ DISTRIBUTIONS TO COMMON SHAREHOLDERS From net investment income (5,597,338) (6,067,834) (5,763,556) (6,203,208) (2,297,570) (2,409,814) From accumulated net realized gains (295,581) (2,743,643) (83,553) (1,482,563) (34,075) (89,226) ------------------------------------------------------------------------------------------------------------------------------------ Decrease in net assets applicable to Common shares from distributions to Common shareholders (5,892,919) (8,811,477) (5,847,109) (7,685,771) (2,331,645) (2,499,040) ------------------------------------------------------------------------------------------------------------------------------------ CAPITAL SHARE TRANSACTIONS Common shares: Repurchased -- -- -- -- -- -- Net proceeds from shares issued to shareholders due to reinvestment of distributions -- -- 94,153 -- 7,613 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares from capital share transactions -- -- 94,153 -- 7,613 -- ------------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in net assets applicable to Common shares (3,589,978) (3,874,251) (2,946,741) (2,591,075) (945,867) (257,748) Net assets applicable to Common shares at the beginning of year1 27,546,208 131,420,459 122,077,916 124,668,991 52,424,579 52,682,327 ------------------------------------------------------------------------------------------------------------------------------------ Net assets applicable to Common shares at the end of year $123,956,230 $127,546,208 $119,131,175 $122,077,916 $51,478,712 $52,424,579 ------------------------------------------------------------------------------------------------------------------------------------ Undistributed (Over-distribution of) net investment income at the end of year $ (156,836) $ 278,452 $ (311,784) $ 15,184 $ (21,367) $ (95,526) ====================================================================================================================================
See accompanying notes to financial statements. 64 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 may establish 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 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 or derivative transaction 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/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, 2007, New York Investment Quality (NQN), New York Select Quality (NVN), New York Quality Income (NUN), Insured New York Premium Income (NNF), Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK) had outstanding when-issued/delayed delivery purchase commitments of $1,855,792, $2,486,553, $2,523,044, $865,341, $818,425 and $359,690, respectively. 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. 65 Notes to FINANCIAL STATEMENTS (continued) 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. Net realized capital gains and ordinary income distributions paid by the Funds are subject to federal taxation. 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) 66 rated, at the time of investment, within the four highest grades (Baa or BBB or better by Moody's, Standard & Poor's or Fitch) or unrated but judged to be of comparable quality by Nuveen Asset Management (the "Adviser"), a wholly owned subsidiary of Nuveen Investments, Inc. ("Nuveen"). 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. Inverse Floating Rate Securities Each Fund may invest in inverse floating rate securities. An inverse floating rate security is created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. In turn, this trust (a) issues floating rate certificates, in face amounts equal to some fraction of the deposited bond's par amount or market value, that typically pay short-term tax-exempt interest rates to third parties, and (b) issues to a long-term investor (such as one of the Funds) an inverse floating rate certificate (sometimes referred to as an "inverse floater") that represents all remaining or residual interest in the trust. The income received by the inverse floater holder varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the inverse floater holder bears substantially all of the underlying bond's downside investment risk and also benefits disproportionately from any potential appreciation of the underlying bond's value. The price of an inverse floating rate security will be more volatile than that of the underlying bond because the interest rate is dependent on not only the fixed coupon rate of the underlying bond but also on the short-term interest paid on the floating rate certificates, and because the inverse floating rate security essentially bears the risk of loss of the greater face value of the underlying bond. A Fund may purchase an inverse floating rate security in a secondary market transaction without first owning the underlying bond (referred to as an "externally-deposited inverse floater"), or instead by first selling a fixed-rate bond to a broker-dealer for deposit into the special purpose trust and receiving in turn the residual interest in the trust (referred to as a "self-deposited inverse floater"). An investment in an externally-deposited inverse floater is identified in the Portfolio of Investments as an "Inverse floating rate investment". An investment in a self-deposited inverse floater is accounted for as a financing transaction in accordance with Statement of Financial Accounting Standards (SFAS) No. 140 "Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities". In such instances, a fixed-rate bond deposited into a special purpose trust is identified in the Portfolio of Investments as an "Underlying bond of an inverse floating rate trust", with the Fund accounting for the short-term floating rate certificates issued by the trust as "Floating rate obligations" on the Statement of Assets and Liabilities. In addition, the Fund reflects in Investment Income the entire earnings of the underlying bond and accounts for the related interest paid to the holders of the short-term floating rate certificates as "Interest expense on floating rate obligations" in the Statement of Operations. During the fiscal year ended September 30, 2007, each Fund invested in externally deposited inverse floaters and/or self-deposited inverse floaters. The average floating rate obligations outstanding and average annual interest rate and fees related to self-deposited inverse floaters during the fiscal year ended September 30, 2007, 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) ------------------------------------------------------------------------------------------------------------------- Average floating rate obligations $11,962,329 $16,090,685 $16,279,205 $5,487,918 $5,548,959 $1,998,767 Average annual interest rate and fees 3.88% 3.88% 3.88% 3.88% 3.88% 3.88% ===================================================================================================================
67 Notes to FINANCIAL STATEMENTS (continued) Forward Swap Transactions The Funds are authorized to invest in forward interest rate swap transactions. Each Fund's use of forward interest rate swap transactions is intended to help the Fund manage its overall interest rate sensitivity, either shorter or longer, generally to more closely align the Fund's interest rate sensitivity with that of the broader municipal market. Forward interest rate swap transactions involve each Fund's agreement with a counterparty to pay, in the future, a fixed or variable rate payment in exchange for the counterparty paying the Fund a variable or fixed rate payment, the accruals for which would begin at a specified date in the future (the "effective date"). The amount of the payment obligation is based on the 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. Custodian Fee Credit Each Fund has an arrangement with the custodian bank whereby certain custodian fees and expenses are reduced by net credits earned on each Fund's cash on deposit with the bank. Such deposit arrangements are an alternative to overnight investments. Credits for cash balances may be offset by charges for any days on which the Fund overdraws its accounts at the custodian bank. Indemnifications Under the Funds' organizational documents, their Officers and Directors/Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds enter into contracts that provide general indemnifications to other parties. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. Use of Estimates The preparation of financial statements in conformity with 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. 68 2. FUND SHARES On July 10, 2007, the Board of Directors of New York Investment Quality (NQN), New York Select Quality (NVN) and New York Quality Income (NUN) approved an open-market share repurchase program, as part of a board, ongoing effort designed to support the market prices of the Funds' Common shares. Under the terms of the program, each Fund may repurchase up to 10% of its outstanding Common shares. Transactions in Common shares were as follows:
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 9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06 ----------------------------------------------------------------------------------------------------------------- Common shares: Shares issued to shareholders due to reinvestment of distributions -- -- -- -- -- -- Shares repurchased (97,300) -- (118,800) -- (171,600) -- ----------------------------------------------------------------------------------------------------------------- Weighted average price per Common share repurchased $13.58 -- $13.79 -- $13.49 -- Weighted average discount per Common share 7.19% -- 7.12% -- 7.74% -- ================================================================================================================= 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 9/30/07 9/30/06 9/30/07 9/30/06 9/30/07 9/30/06 ----------------------------------------------------------------------------------------------------------------- Common shares: Shares issued to shareholders due to reinvestment of distributions -- -- 6,197 -- 512 -- Shares repurchased -- -- -- -- -- -- ----------------------------------------------------------------------------------------------------------------- Weighted average price per Common share repurchased -- -- -- -- -- -- Weighted average discount per Common share -- -- -- -- -- -- =================================================================================================================
3. INVESTMENT TRANSACTIONS Purchases and sales (including maturities but excluding short-term investments and derivative transactions) during the fiscal year ended September 30, 2007, 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 $90,644,298 $110,489,524 $124,915,207 $44,608,611 $36,840,936 $15,058,618 Sales and maturities 81,452,613 97,002,014 117,910,826 40,771,381 35,608,647 13,705,616 =====================================================================================================================
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, timing differences in recognizing certain gains and losses on investment transactions and the treatment of investments in inverse floating rate transactions subject to SFAS No. 140. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset values of the Funds. At September 30, 2007, the cost of investments was 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) --------------------------------------------------------------------------------------------------------------------- Cost of investments $387,927,131 $516,522,406 $521,168,503 $180,622,938 $171,520,998 $74,552,721 =====================================================================================================================
69 Notes to FINANCIAL STATEMENTS (continued) Gross unrealized appreciation and gross unrealized depreciation of investments at September 30, 2007, 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) --------------------------------------------------------------------------------------------------------------------- Gross unrealized: Appreciation $13,394,585 $24,068,679 $21,548,362 $6,125,729 $6,296,279 $2,083,219 Depreciation (539,116) (506,333) (724,881) (283,977) (186,366) (59,643) --------------------------------------------------------------------------------------------------------------------- Net unrealized appreciation (depreciation) of investments $12,855,469 $23,562,346 $20,823,481 $5,841,752 $6,109,913 $2,023,576 =====================================================================================================================
The tax components of undistributed net tax-exempt income, net ordinary income and net long-term capital gains at September 30, 2007, 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 * $964,095 $790,834 $714,768 $260,147 $111,030 $177,605 Undistributed net ordinary income ** -- 6,318 3 744 -- -- Undistributed net long-term capital gains 10,122 1,362 351,216 548 295,621 8,007 =====================================================================================================================
* Undistributed net tax-exempt income (on a tax basis) has not been reduced for the dividend declared on September 4, 2007, paid on October 1, 2007. ** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. The tax character of distributions paid during the Funds' the tax years ended September 30, 2007 and September 30, 2006, 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 2007 (NQN) (NVN) (NUN) (NNF) (NKO) (NRK) ----------------------------------------------------------------------------------------------------------------- Distributions from net tax-exempt income *** $16,282,164 $22,790,638 $22,339,468 $7,722,662 $7,871,954 $3,110,383 Distributions from net ordinary income ** 39,794 220 22,007 133 -- -- Distributions from net long-term capital gains **** 1,546,326 968,069 1,215,492 373,583 106,104 44,562 ================================================================================================================= 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 =================================================================================================================
** Net ordinary income consists of taxable market discount income and net short-term capital gains, if any. *** The Funds hereby designate these amounts paid during the fiscal year ended September 30, 2007, as Exempt Interest Dividends. **** The Funds hereby designate these amounts paid during the fiscal year ended September 30, 2007, as long-term capital gain dividends pursuant to Internal Revenue Code Section 852(b)(3). 70 The following Funds have elected to defer net realized losses from investments incurred from November 1, 2006 through September 30, 2007, the Funds' tax year end, ("post-October losses") in accordance with federal income tax regulations. Post-October losses are treated as having arisen on the first day of the following fiscal year: NEW YORK INSURED INSURED INVESTMENT NEW YORK NEW YORK NEW YORK QUALITY SELECT PREMIUM TAX-FREE MUNI QUALITY INCOME ADVANTAGE (NQN) (NVN) (NNF) (NRK) -------------------------------------------------------------------------------- $309,645 $95,228 $154,238 $96,747 ================================================================================ 5. MANAGEMENT FEES AND OTHER TRANSACTIONS WITH AFFILIATES Each Fund's management fee is separated into two components - a complex-level component, based on the aggregate amount of all fund assets managed by the Adviser, and a specific fund-level component, based only on the amount of assets within each individual fund. This pricing structure enables Nuveen fund shareholders to benefit from growth in the assets within each individual fund as well as from growth in the amount of complex-wide assets managed by the Adviser. The annual fund-level fee, payable monthly, for each Fund is based upon the average daily net assets (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, 2007, the complex-level fee rate was .1831%. 71 Notes to FINANCIAL STATEMENTS (continued) Effective August 20, 2007, the complex-level fee schedule is as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1691 $125 billion .1599 $200 billion .1505 $250 billion .1469 $300 billion .1445 ================================================================================ Prior to August 20, 2007, the complex-level fee schedule was as follows: COMPLEX-LEVEL ASSET BREAKPOINT LEVEL (1) EFFECTIVE RATE AT BREAKPOINT LEVEL -------------------------------------------------------------------------------- $55 billion .2000% $56 billion .1996 $57 billion .1989 $60 billion .1961 $63 billion .1931 $66 billion .1900 $71 billion .1851 $76 billion .1806 $80 billion .1773 $91 billion .1698 $125 billion .1617 $200 billion .1536 $250 billion .1509 $300 billion .1490 ================================================================================ (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 preferred stock issued by or borrowings by the Nuveen funds) of Nuveen-sponsored funds in the U.S. 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. 72 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. 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. Agreement and Plan of Merger On June 20, 2007, Nuveen Investments announced that it had entered into a definitive Agreement and Plan of Merger ("Merger Agreement") with Windy City Investments, Inc. ("Windy City"), a corporation formed by investors led by Madison Dearborn Partners, LLC ("Madison Dearborn"), pursuant to which Windy City would acquire Nuveen Investments. Madison Dearborn is a private equity investment firm based in Chicago, Illinois. The merger was consummated on November 13, 2007. The consummation of the merger was deemed to be an "assignment" (as that term is defined in the Investment Company Act of 1940) of the investment management agreement between each Fund and the Adviser, and resulted in the automatic termination of each Fund's agreement. The Board of Directors/Trustees of each Fund considered and approved a new investment management agreement with the Adviser. The new ongoing agreement was approved by the shareholders of each Fund and took effect on November 13, 2007. The investors led by Madison Dearborn include an affiliate of Merrill Lynch. As a result, Merrill Lynch is an indirect "affiliated person" (as that term is defined in the Investment Company Act of 1940) of each Fund. Certain conflicts of interest may arise as a result of such indirect affiliation. For example, the Funds are generally prohibited from entering into principal transactions with Merrill Lynch and its affiliates. The Adviser does not believe that any such prohibitions or limitations as a result of Merrill Lynch's affiliation will significantly impact the ability of the Funds to pursue their investment objectives and policies. 73 Notes to FINANCIAL STATEMENTS (continued) 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 Funds' 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. SEC guidance allows funds to delay implementing FIN 48 into NAV calculations until the fund's last NAV calculation in the first required financial statement reporting period. As a result, the Funds must begin to incorporate FIN 48 into their NAV calculations by March 31, 2008. At this time, management is continuing to evaluate 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 of Financial Accounting Standards No. 157 In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of 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, 2007, management does 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 EVENTS Distributions to Common Shareholders The Funds declared Common share dividend distributions from their tax-exempt net investment income which were paid on November 1, 2007, to shareholders of record on October 15, 2007, 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 $.0520 $.0530 $.0510 $.0505 $.0550 $.0545 ===================================================================================================================
74 Financial HIGHLIGHTS 75 Financial HIGHLIGHTS Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ============================================================================================================================ NEW YORK INVESTMENT QUALITY (NQN) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 $15.18 $ .89 $ (.29) $(.25) $(.02) $ .33 $(.67) $(.07) $ (.74) 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) NEW YORK SELECT QUALITY (NVN) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 15.44 .92 (.37) (.27) (.01) .27 (.70) (.03) (.73) 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) ============================================================================================================================ Total Returns ------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================== NEW YORK INVESTMENT QUALITY (NQN) ---------------------------------------------------------------------------------- Year Ended 9/30: 2007 $ -- $14.77 $13.70 3.22% 2.22% 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 NEW YORK SELECT QUALITY (NVN) ---------------------------------------------------------------------------------- Year Ended 9/30: 2007 -- 14.98 13.86 1.70 1.75 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 ================================================================================== Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** -------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== NEW YORK INVESTMENT QUALITY (NQN) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 $260,224 1.40% 1.22% 5.98% 1.39% 1.22% 5.99% 19% 2006 268,986 1.22 1.22 5.92 1.21 1.21 5.94 16 2005 281,203 1.19 1.19 5.88 1.18 1.18 5.89 30 2004 291,660 1.18 1.18 6.26 1.18 1.18 6.26 11 2003 297,312 1.19 1.19 6.42 1.18 1.18 6.42 19 NEW YORK SELECT QUALITY (NVN) ----------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 349,388 1.38 1.20 6.05 1.37 1.19 6.05 17 2006 361,945 1.20 1.20 6.03 1.18 1.18 6.05 15 2005 371,935 1.18 1.18 6.03 1.18 1.18 6.04 17 2004 379,117 1.19 1.19 6.31 1.19 1.19 6.32 8 2003 381,274 1.19 1.19 6.49 1.18 1.18 6.50 16 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ NEW YORK INVESTMENT QUALITY (NQN) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 $144,000 $25,000 $70,178 $10,910 $38,051 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 -- -- NEW YORK SELECT QUALITY (NVN) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 193,000 25,000 70,258 14,635 38,061 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 -- -- ================================================================================ * 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. 76-77 spread Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total ============================================================================================================================ NEW YORK QUALITY INCOME (NUN) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 $15.21 $ .89 $ (.33) $(.28) $(.01) $ .27 $(.65) $(.04) $ (.69) 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) INSURED NEW YORK PREMIUM INCOME (NNF) ---------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 15.31 .87 (.33) (.25) (.01) .28 (.67) (.04) (.71) 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) ============================================================================================================================ Total Returns ------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value* Value* ================================================================================ NEW YORK QUALITY INCOME (NUN) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 $ -- $14.79 $13.46 .21% 1.81% 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 INSURED NEW YORK PREMIUM INCOME (NNF) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 -- 14.88 13.54 (.20) 1.85 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 ================================================================================ Ratios/Supplemental Data ------------------------------------------------------------------------------------------------------------------ Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement** -------------------------------------------- ------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== NEW YORK QUALITY INCOME (NUN) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2007 $353,564 1.38% 1.20% 5.95% 1.37% 1.19% 5.96% 21% 2006 366,405 1.21 1.21 5.95 1.20 1.20 5.96 14 2005 376,697 1.19 1.19 5.86 1.18 1.18 5.86 17 2004 383,012 1.19 1.19 6.21 1.19 1.19 6.21 10 2003 387,439 1.20 1.20 6.31 1.19 1.19 6.32 14 INSURED NEW YORK PREMIUM INCOME (NNF) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2007 123,956 1.40 1.23 5.79 1.39 1.22 5.80 21 2006 127,546 1.22 1.22 5.75 1.21 1.21 5.77 14 2005 131,420 1.20 1.20 5.71 1.20 1.20 5.71 22 2004 134,434 1.21 1.21 6.11 1.20 1.20 6.11 16 2003 133,735 1.21 1.21 6.38 1.21 1.21 6.38 21 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ NEW YORK QUALITY INCOME (NUN) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 $197,000 $25,000 $69,868 $14,845 $38,087 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 -- -- INSURED NEW YORK PREMIUM INCOME (NNF) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 65,000 25,000 72,675 5,080 38,196 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 -- -- ================================================================================ * 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. ** After custodian fee credit and expense reimbursement, where applicable. + The amounts shown are based on Common share equivalents. ++ Ratios do not reflect the effect of dividend payments to Preferred shareholders; income ratios reflect income earned on assets attributable to Preferred shares. (a) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. See accompanying notes to financial statements. 78-79 spread Financial HIGHLIGHTS (continued) Selected data for a Common share outstanding throughout each period:
Investment Operations Less Distributions --------------------------------------------------------------- -------------------------------- Distributions Distributions from Net from Net Beginning Investment Capital Investment Capital Common Net Income to Gains to Income to Gains to Share Net Realized/ Preferred Preferred Common Common Net Asset Investment Unrealized Share- Share- Share- Share- Value Income Gain (Loss) holders+ holders+ Total holders holders Total =============================================================================================================================== INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 $15.34 $ .95 $(.34) $(.26) $ --**** $ .35 $(.72) $(.01) $ (.73) 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) INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ------------------------------------------------------------------------------------------------------------------------------- Year Ended 9/30: 2007 14.92 .91 (.29) (.23) --**** .39 (.65) (.01) (.66) 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 ------------------- Offering Based Costs and Ending on Preferred Common Based Common Share Share Ending on Share Net Underwriting Net Asset Market Market Asset Discounts Value Value Value** Value** ================================================================================ INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 $ -- $14.96 $14.10 (.21)% 2.36% 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 INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 -- 14.65 13.74 2.24 2.69 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 ------------------------------------------------------------------------------------------------------------------- Ratios to Average Net Assets Ratios to Average Net Assets Applicable to Common Shares Applicable to Common Shares Before Credit/Reimbursement After Credit/Reimbursement*** ------------------------------------------- -------------------------------------------- Ending Net Assets Applicable Expenses Expenses Net Expenses Expenses Net Portfolio to Common Including Excluding Investment Including Excluding Investment Turnover Shares (000) Interest++(a) Interest++(a) Income++ Interest++(a) Interest++(a) Income++ Rate ==================================================================================================================================== INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2007 $119,131 1.38% 1.20% 5.83% .94% .76% 6.27% 19% 2006 122,078 1.20 1.20 5.79 .73 .73 6.26 11 2005 124,669 1.18 1.18 5.75 .72 .72 6.21 12 2004 124,860 1.20 1.20 5.91 .74 .74 6.37 9 2003 122,901 1.20 1.20 6.07 .74 .74 6.53 15 INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) ------------------------------------------------------------------------------------------------------------------------------------ Year Ended 9/30: 2007 51,479 1.40 1.25 5.65 .90 .75 6.15 17 2006 52,425 1.27 1.27 5.62 .77 .77 6.13 8 2005 52,682 1.25 1.25 5.53 .76 .76 6.01 7 2004 51,818 1.26 1.26 5.85 .76 .76 6.35 16 2003(b) 50,645 1.19* 1.19* 5.10* .70* .70* 5.59* 5 ====================================================================================================================================
Floating Rate Obligations Preferred Shares at End of Period at End of Period -------------------------------------- -------------------------- Aggregate Liquidation Aggregate Amount and Market Asset Amount Asset Outstanding Value Coverage Outstanding Coverage (000) Per Share Per Share (000) Per $1,000 ================================================================================ INSURED NEW YORK DIVIDEND ADVANTAGE (NKO) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 $61,000 $25,000 $73,824 $4,830 $38,294 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 -- -- INSURED NEW YORK TAX-FREE ADVANTAGE (NRK) -------------------------------------------------------------------------------- Year Ended 9/30: 2007 27,000 25,000 72,665 2,095 38,460 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. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending market price. The actual reinvestment for the last dividend declared in the period takes place over several days, and in some instances may not be based on the market price, so the actual reinvestment price may be different from the price used in the calculation. Total returns are not annualized. Total Return on Common Share Net Asset Value is the combination of changes in Common share net asset value, reinvested dividend income at net asset value and reinvested capital gains distributions at net asset value, if any. The last dividend declared in the period, which is typically paid on the first business day of the following month, is assumed to be reinvested at the ending net asset value. The actual reinvest price for the last dividend declared in the period may often be based on the Fund's market price (and not its net asset value), and therefore may be different from the price used in the calculation. Total returns are not annualized. *** After custodian fee credit and expense reimbursement, where applicable. **** Per Share Distributions from Capital Gains 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) Interest expense arises from the application of SFAS No. 140 to certain inverse floating rate transactions entered into by the Fund as more fully described in Footnote 1 - Inverse Floating Rate Securities. (b) For the period November 21, 2002 (commencement of operations) through September 30, 2003. See accompanying notes to financial statements. 80-81 spread Board Members & Officers The management of the Funds, including general supervision of the duties performed for the Funds by the Adviser, is the responsibility of the Board Members of the Funds. The number of board members of the Fund is currently set at eight. 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.
Name, Position(s) Held Year First Number Principal Birthdate with the Funds Elected or of Portfolios Occupation(s) & Address Appointed in Fund Complex Including other and Term(2) Overseen by Directorships Board Member During Past 5 Years BOARD MEMBER WHO IS AN INTERESTED PERSON OF THE FUNDS: [] TIMOTHY R. SCHWERTFEGER(1) Former director (1994-November 12, 3/28/49 Chairman of 1994 2007), Chairman (1996-June 30, 2007), 333 W. Wacker Drive the Board ANNUAL 178 Non-Executive Chairman (July 1, Chicago, IL 60606 and Board Member 2007-November 12, 2007) and Chief Executive Officer (1996-June 30, 2007) of Nuveen Investments, Inc. and Nuveen Asset Management and certain other subsidiaries of Nuveen Investments, Inc.; formerly, Director (1992-2006) of Institutional Capital Corporation. BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: [] ROBERT P. BREMNER Private Investor and Management Consultant. 8/22/40 Lead 1997 333 W. Wacker Drive Independent CLASS III 178 Chicago, IL 60606 Board member [] JACK B. EVANS President, The Hall-Perrine Foundation, 10/22/48 1999 a private philanthropic corporation 333 W. Wacker Drive Board member CLASS III 178 (since 1996); Director and Vice Chicago, IL 60606 Chairman, United Fire Group, a publicly held company; Member of the Board of Regents for the State of Iowa University System; Director, Gazette Companies; Life Trustee of Coe College and Iowa College Foundation; Member of the Advisory Council of the Department of Finance in the Tippie College of Business, University of Iowa; 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 Dean, Tippie College of Business, 3/6/48 2004 University of Iowa (since July 2006); 333 W. Wacker Drive Board member CLASS II 178 formerly, Dean and Distinguished Chicago, IL 60606 Professor of Finance, School of Business at the University of Connecticut (2003-2006); previously, Senior Vice President and Director of Research at the Federal Reserve Bank of Chicago (1995-2003); Director (since 1997), Credit Research Center at Georgetown University; Director (since 2004) of Xerox Corporation; Director, SS&C Technologies, Inc. (May 2005-October 2005). 82 Name, Position(s) Held Year First Number Principal Birthdate with the Funds Elected or of Portfolios Occupation(s) & Address Appointed in Fund Complex Including other and Term(2) Overseen by Directorships Board Member During Past 5 Years BOARD MEMBERS WHO ARE NOT INTERESTED PERSONS OF THE FUNDS: [] DAVID J. KUNDERT Director, Northwestern Mutual Wealth 10/28/42 2005 Management Company; Retired (since 2004) 333 W. Wacker Drive Board member CLASS II 176 as Chairman, JPMorgan Fleming Asset Chicago, IL 60606 Management, President and CEO, Banc One Investment Advisors Corporation, and President, One Group Mutual Funds; prior thereto, Executive Vice President, Banc One Corporation and Chairman and CEO, Banc One Investment Management Group; Member, Board of Regents, Luther College; member of the Wisconsin Bar Association; member of Board of Directors, Friends of Boerner Botanical Gardens; member of Board of Directors, Milwaukee Repertory Theater. [] WILLIAM J. SCHNEIDER Chairman of Miller-Valentine Partners 9/24/44 1997 Ltd., a real estate investment company; 333 W. Wacker Drive Board member ANNUAL 178 formerly, Senior Partner and Chief Chicago, IL 60606 Operating Officer (retired, 2004) of Miller-Valentine 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 Executive Director, Gaylord and Dorothy 12/29/47 1997 Donnelley Foundation (since 1994); prior 333 W. Wacker Drive Board member CLASS I 178 thereto, Executive Director, Great Lakes Chicago, IL 60606 Protection Fund (from 1990 to 1994). [] CAROLE E. STONE Director, Chicago Board Options Exchange 6/28/47 2007 (since 2006); Chair New York Racing 333 West Wacker Drive Board member CLASS I 178 Association Oversight Board (since Chicago, IL 60606 2005); Commissioner, New York State Commission on Public Authority Reform (since 2005); formerly Director, New York State Division of the Budget (2000-2004), Chair, Public Authorities Control Board (2000-2004) and Director, Local Government Assistance Corporation (2000-2004). 83 Name, Position(s) Held Year First Number Principal Birthdate with the Funds Elected or of Portfolios Occupation(s) and Address Appointed(4) in Fund Complex During Past 5 Years Overseen by Officer OFFICERS OF THE FUND: [] GIFFORD R. ZIMMERMAN Managing Director (since 2002), 9/9/56 Chief Assistant Secretary and Associate 333 W. Wacker Drive Administrative 1988 178 General Counsel, formerly, Vice Chicago, IL 60606 Officer President and Assistant General Counsel, of Nuveen Investments, LLC; Managing Director (since 2002), Associate General Counsel and Assistant Secretary, of Nuveen Asset Management; Vice President and Assistant Secretary of NWQ Investment Management Company, LLC. (since 2002), Nuveen Investments Advisers Inc. (since 2002), Symphony Asset Management LLC, and NWQ Investment Management Company, LLC (since 2003), Tradewinds Global Investors, LLC, and Santa Barbara Asset Management, LLC (since 2006); Nuveen HydePark Group LLC and Richards & Tierney, Inc. (since 2007); Managing Director, Associate General Counsel and Assistant Secretary of Rittenhouse Asset Management, Inc. (since 2003); Managing Director (since 2004) and Assistant Secretary (since 1994) of Nuveen Investments, Inc., Assistant Secretary (since 2003) of Symphony Asset Management LLC. [] WILLIAMS ADAMS IV Executive Vice President, U.S. 6/9/55 Structured Products of Nuveen 333 West Wacker Drive Vice President 2007 120 Investments, LLC, (since 1999), prior Chicago, IL 60606 thereto, Managing Director of Structured Investments. [] JULIA L. ANTONATOS Managing Director (since 2005), formerly 9/22/63 Vice President (since 2002) of Nuveen 333 W. Wacker Drive Vice President 2004 178 Investments, LLC; Chartered Financial Chicago, IL 60606 Analyst. [] CEDRIC H. ANTOSIEWICZ Managing Director, (since 2004) 1/11/62 previously, Vice President (1993-2004) 333 W. Wacker Drive Vice President 2007 120 of Nuveen Investments, LLC. Chicago, IL 60606 [] MICHAEL T. ATKINSON Vice President (since 2002) of Nuveen 2/3/66 Vice President Investments, LLC. 333 W. Wacker Drive and Assistant 2000 178 Chicago, IL 60606 Secretary [] PETER H. D'ARRIGO Vice President and Treasurer of Nuveen 11/28/67 Investments, LLC and Nuveen Investments, 333 W. Wacker Drive Vice President 1999 178 Inc.; Vice President and Treasurer of Chicago, IL 60606 Nuveen Asset Management (since 2002), Nuveen Investments Advisers Inc. (since 2002); NWQ Investment Management Company, LLC. (since 2002); Rittenhouse Asset Management, Inc. (since 2003), Tradewinds NWQ Global Investors, LLC (since 2006), Santa Barbara Asset Management, LLC (since 2006) and Nuveen HydePark Group, LLC and Richards &Tierney, Inc. (since 2007); Treasurer of Symphony Asset Management LLC (since 2003); formerly, Vice President and Treasurer (1999-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3), Chartered Financial Analyst. [] LORNA C. FERGUSON Managing Director (since 2004), 10/24/45 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 1998 178 Investments, LLC, Managing Director Chicago, IL 60606 (2004) formerly, Vice President (1998-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Managing Director (since 2005) of Nuveen Asset Management. [] WILLIAM M. FITZGERALD Managing Director (since 2002), 3/2/64 formerly, Vice President of Nuveen 333 W. Wacker Drive Vice President 1995 178 Investments, LLC; Managing Director Chicago, IL 60606 (1997-2004) of Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp.(3); Managing Director (since 2001) of Nuveen Asset Management; Vice President (since 2002) of Nuveen Investments Advisers Inc.; Chartered Financial Analyst. 84 Name, Position(s) Held Year First Number Principal Birthdate with the Funds Elected or of Portfolios Occupation(s) and Address Appointed(4) in Fund Complex During Past 5 Years Overseen by Officer OFFICERS OF THE FUND: [] STEPHEN D. FOY Vice President (since 1993) and Funds 5/31/54 Vice President Controller (since 1998) of Nuveen 333 W. Wacker Drive and Controller 1998 178 Investments, LLC; formerly, Vice Chicago, IL 60606 President and Funds Controller (1998-2004) of Nuveen Investments, Inc.; Certified Public Accountant. [] WALTER M. KELLY Vice President (since 2006) formerly, 2/24/70 Chief Compliance Assistant Vice President and Assistant 333 West Wacker Drive Officer and 2003 178 General Counsel (2003-2006) of Nuveen Chicago, IL 60606 Vice President Investments, LLC; Assistant Vice President and Assistant Secretary of the Nuveen Funds (2003-2006); previously, Associate (2001-2003) at the law firm of Vedder, Price, Kaufman & Kammholz. [] DAVID J. LAMB Investments, Vice President (since 2000) of Nuveen 3/22/63 LLC; Certified Public Accountant. 333 W. Wacker Drive Vice President 2000 178 Chicago, IL 60606 [] TINA M. LAZAR Vice President of Nuveen Investments, LLC 8/27/61 (since 1999). 333 W. Wacker Drive Vice President 2002 178 Chicago, IL 60606 [] LARRY W. MARTIN Vice President, Assistant Secretary and 7/27/51 Vice President Assistant General Counsel of Nuveen 333 W. Wacker Drive and Assistant 1988 178 Investments, LLC; formerly, Vice Chicago, IL 60606 Secretary President and Assistant Secretary of Nuveen Advisory Corp. and Nuveen 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); NWQ Investment Management Company, LLC (since 2002), Symphony Asset Management LLC (since 2003), Tradewinds NWQ Global Investors, LLC, Santa Barbara Asset Management LLC (since 2006) and of Nuveen HydePark Group, LLC and Richards &Tierney, Inc. (since 2007). [] KEVIN J. MCCARTHY Vice President, Nuveen Investments, LLC 3/26/66 Vice President (since 2007); Vice President, and 333 W. Wacker Drive and Secretary 2007 178 Assistant Secretary, Nuveen Asset Chicago, IL 60606 Management, Rittenhouse Asset Management, Inc., Nuveen Investment Advisers Inc., Nuveen Investment Institutional Services Group LLC, NWQ Investment Management Company, LLC, Tradewinds Global Investors LLC, NWQHoldings, LLC, Symphony Asset Management LLC, Santa Barbara Asset Management LLC, Nuveen HydePark Group, LLC and Richards &Tierney, Inc. (since 2007); Vice President and Assistant General Counsel, Nuveen Investments, Inc. (since 2007). prior thereto, Partner, Bell, Boyd & Lloyd LLP (1997-2007). [] JOHN V. MILLER Managing Director (since 2007), 4/10/67 formerly, Vice President (2002-2007) of 333 W. Wacker Drive Vice President 2007 178 Nuveen Investments, LLC; Chartered Chicago, IL 60606 Financial Analyst. [] JAMES F. RUANE Vice President, Nuveen Investments since 7/3/62 Vice President 2007; prior thereto, Partner, Deloitte & 333 W. Wacker Drive and Assistant 2007 178 Touche USA LLP (since 2005), formerly, Chicago, IL 60606 Secretary senior tax manager (since 2002); Certified Public Accountant.
(1) Mr. Schwertfeger is an "interested person" of the Funds, as defined in the Investment Company Act of 1940, by reason of being the former Chairman and Chief Executive Officer of Nuveen Investments, Inc. and having previously served in various other capacities with Nuveen Investments, Inc. and its subsidiaries. It is expected that Mr. Schwertfeger will resign from the Board of Trustees by the end of the Second quarter of 2008. (2) For Insured New York Dividend Advantage (NKO) and Insured New York Tax-Free Advantage (NRK), Board Members serve three year terms, except for two board members who are elected by the holders of Preferred Shares. The Board of Trustees for NKO and NRK is divided into three classes, Class I, Class II, and Class III, with each being elected to serve until the third succeeding annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed, except two board members are elected by the holders of Preferred Shares to serve until the next annual shareholders' meeting subsequent to its election or thereafter in each case when its respective successors are duly elected or appointed. For New York Investment Quality (NQN), New York Select Quality (NVN) New York Quality Income (NUN) and Insured New York Premium Income (NNF), the Board Members serve a one year term to serve until the next annual meeting or until their successors shall have been duly elected and qualified. The first year elected or appointed represents the year in which the board member was first elected or appointed to any fund in the Nuveen Complex. (3) Nuveen Advisory Corp. and Nuveen Institutional Advisory Corp. were reorganized into Nuveen Asset Management, effective January 1, 2005. (4) Officers serve one year terms through July of each year. The year first elected or appointed represents the year in which the Officer was first elected or appointed to any fund in the Nuveen Complex. 85 Annual Investment Management Agreement APPROVAL PROCESS The Board Members are responsible for overseeing the performance of the investment adviser to the Funds and determining whether to continue the advisory arrangements. At the annual review meeting held on May 21, 2007 (the "May Meeting"), the Board Members of the Funds, including the Independent Board Members, unanimously approved the continuance of the Investment Management Agreement between each Fund (each, a "Fund") and Nuveen Asset Management ("NAM"). The foregoing Investment Management Agreements with NAM are hereafter referred to as the "Original Investment Management Agreements." Subsequent to the May Meeting, Nuveen Investments, Inc. ("Nuveen"), the parent company of NAM, entered into a merger agreement providing for the acquisition of Nuveen by Windy City Investments, Inc., a corporation formed by investors led by Madison Dearborn Partners, LLC ("MDP"), a private equity investment firm (the "Transaction"). Each Original Investment Management Agreement, as required by Section 15 of the Investment Company Act of 1940 (the "1940 Act"), provides for its automatic termination in the event of its "assignment" (as defined in the 1940 Act). Any change in control of the adviser is deemed to be an assignment. The consummation of the Transaction will result in a change of control of NAM as well as its affiliated sub-advisers and therefore cause the automatic termination of each Original Investment Management Agreement, as required by the 1940 Act. Accordingly, in anticipation of the Transaction, at a meeting held on July 31, 2007 (the "July Meeting"), the Board Members, including the Independent Board Members, unanimously approved new Investment Management Agreements (the "New Investment Management Agreements") with NAM on behalf of each Fund to take effect immediately after the Transaction or shareholder approval of the new advisory contracts, whichever is later. The 1940 Act also requires that each New Investment Management Agreement be approved by the respective Fund's shareholders in order for it to become effective. Accordingly, to ensure continuity of advisory services, the Board Members, including the Independent Board Members, unanimously approved Interim Investment Management Agreements to take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. Because the information provided and considerations made at the annual review continue to be relevant with respect to the evaluation of the New Investment Management Agreements, the Board considered the foregoing as part of its deliberations of the New Investment Management Agreements. Accordingly, as indicated, the discussions immediately below outline the materials and information presented to the Board in connection with the Board's prior annual review and the analysis undertaken and the conclusions reached by Board Members when determining to continue the Original Investment Management Agreements. I. APPROVAL OF THE ORIGINAL INVESTMENT MANAGEMENT AGREEMENTS During the course of the year, the Board received a wide variety of materials relating to the services provided by NAM and the performance of the Funds. At each of its quarterly meetings, the Board reviewed investment performance and various matters relating to the operations of the Funds and other Nuveen funds, including the compliance program, shareholder services, valuation, custody, distribution and other information relating to the nature, extent and quality of services provided by NAM. Between the regularly scheduled quarterly meetings, the Board Members received information on particular matters as the need arose. In preparation for their considerations at the May Meeting, the Independent Board Members received extensive materials, well in advance of the meeting, which outlined or are related to, among other things: [] the nature, extent and quality of services provided by NAM; [] the organization and business operations of NAM, including the responsibilities of various departments and key personnel; 86 [] each Fund's past performance as well as the Fund's performance compared to funds with similar investment objectives based on data and information provided by an independent third party and to customized benchmarks; [] the profitability of Nuveen and certain industry profitability analyses for unaffiliated advisers; [] the expenses of Nuveen in providing the various services; [] the advisory fees and total expense ratios of each Fund, including comparisons of such fees and expenses with those of comparable, unaffiliated funds based on information and data provided by an independent third party (the "Peer Universe") as well as compared to a subset of funds within the Peer Universe (the "Peer Group") of the respective Fund (as applicable); [] the advisory fees NAM assesses to other types of investment products or clients; [] the soft dollar practices of NAM, if any; and [] from independent legal counsel, a legal memorandum describing among other things, applicable laws, regulations and duties in reviewing and approving advisory contracts. At the May Meeting, NAM made a presentation to, and responded to questions from, the Board. Prior to and after the presentations and reviewing the written materials, the Independent Board Members met privately with their legal counsel to review the Boardduties in reviewing advisory contracts and considering the renewal of the advisory contracts. The Independent Board Members, in consultation with independent counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission ("SEC") directives relating to the renewal of advisory contracts. As outlined in more detail below, the Board Members considered all factors they believed relevant with respect to each Fund, including, but not limited to, the following: (a) the nature, extent and quality of the services to be provided by NAM; (b) the investment performance of the Fund and NAM; (c) the costs of the services to be provided and profits to be realized by Nuveen and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of the Fund's investors. In addition, as noted, the Board Members met regularly throughout the year to oversee the Funds. In evaluating the Original Investment Management Agreements, the Board Members also relied upon their knowledge of NAM, its services and the Funds resulting from their meetings and other interactions throughout the year. It is with this background that the Board Members considered each Original Investment Management Agreement. A. NATURE, EXTENT AND QUALITY OF SERVICES In considering the renewal of the Original Investment Management Agreements, the Board Members considered the nature, extent and quality of NAM's services. The Board Members reviewed materials outlining, among other things, Nuveen's organization and business; the types of services that NAM or its affiliates provide and are expected to provide to the Funds; the performance record of the applicable Fund (as described in further detail below); and, any initiatives Nuveen had taken for the municipal fund product line. As noted, at the annual review, the Board Members were already familiar with the organization, operations and personnel of NAM due to the Board Members' experience in governing the respective Funds and working with NAM on matters relating to the Funds. With respect to personnel, the Board Members recognized NAM's investment in additional qualified personnel throughout the various groups in the organization and recommended to NAM that it continue to review staffing needs as necessary. In addition, the Board Members reviewed materials describing the current status and, in particular, the developments in 2006 with respect to NAM's investment process, investment strategies (including additional tools used in executing such strategies), personnel (including portfolio management and research teams), trading process, hedging activities, risk management operations (e.g., reviewing credit quality, duration limits, and derivatives use, as applicable), and investment operations (such as enhancements to trading procedures, pricing procedures, and client services). The Board Members recognized NAM's investment of resources and efforts to continue to enhance and refine its investment process. In addition to advisory services, the Independent Board Members considered the quality of administrative and non-advisory services provided by NAM and noted that NAM and its affiliates provide the Funds with a wide variety of services and officers and other personnel as are necessary for the operations of the Funds, including: 87 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) [] product management; [] fund administration; [] oversight by shareholder services and other fund service providers; [] administration of Board relations; [] regulatory and portfolio compliance; and [] legal support. As the Funds operate in a highly regulated industry and given the importance of compliance, the Board Members considered, in particular, Nuveen's compliance activities for the Funds and enhancements thereto. In this regard, the Board Members recognized the quality of Nuveen's compliance team. The Board Members further noted Nuveen's negotiations with other service providers and the corresponding reduction in certain service providers' fees at the May Meeting. In addition to the foregoing services, the Board Members also noted the additional services that NAM or its affiliates provide to Nuveen's closed-end funds, including, in particular, its secondary market support activities. The Board Members recognized Nuveen's continued commitment to supporting the secondary market for the common shares of its closed-end funds through a variety of programs designed to raise investor and analyst awareness and understanding of closed-end funds. These efforts include: [] maintaining shareholder communications; [] providing advertising for the Nuveen closed-end funds; [] maintaining its closed-end fund website; [] maintaining continual contact with financial advisers; [] providing educational symposia; [] conducting research with investors and financial analysis regarding closed-end funds; and [] evaluating secondary market performance. With respect to the Nuveen closed-end funds that utilize leverage through the issuance of preferred shares ("Preferred Shares"), the Board Members noted Nuveen's continued support for the holders of Preferred Shares by, among other things: [] maintaining an in-house trading desk; [] maintaining a product manager for the Preferred Shares; [] developing distribution for Preferred Shares with new market participants; [] maintaining an orderly auction process; [] managing leverage and risk management of leverage; and [] maintaining systems necessary to test compliance with rating agency criteria. Based on their review, the Board Members found that, overall, the nature, extent and quality of services provided (and expected to be provided) to the respective Funds under the Original Investment Management Agreements were satisfactory. B. THE INVESTMENT PERFORMANCE OF THE FUNDS AND NAM At the May Meeting, 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 (the "Performance Peer Group") based on data provided by an independent third party (as described below). The Board Members also reviewed the respective Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) against customized benchmarks, described in further detail below. 88 In evaluating the performance information during the annual review at the May Meeting, in certain instances, the Board Members noted that the closest Performance Peer Group for a fund may not adequately reflect such fund's investment objectives and strategies, thereby limiting the usefulness of the comparisons of such fund's performance with that of the Performance Peer Group. With respect to state-specific municipal funds, the Board Members also recognized that certain 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. With respect to municipal closed-end funds, funds that do not have corresponding state-specific Performance Peer Groups are from states other than New York, California, Florida, New Jersey, Michigan and Pennsylvania. However, with respect to funds based in Florida, New Jersey, Michigan and Pennsylvania, the peer group may be so small or the Nuveen funds may dominate the category to such an extent that performance information for such funds was also compared to the more general category for all states (other than New York and California). The Board Members 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, 2006. The Board Members also reviewed the Fund's portfolio level performance (which does not reflect fund level fees and expenses, and leverage) compared to customized portfolio level benchmarks for the one- and three-year periods ending December 31, 2006 (as applicable). The analysis was used to assess the efficacy of investment decisions against appropriate measures of risk and total return, within specific market segments. This information supplemented the Fund performance information provided to the Board at each of its quarterly meetings. Based on their review, the Board Members determined that each Fund's investment performance over time had been satisfactory, subject to the following. With respect to various municipal closed-end funds, the Board Members noted relative total return underperformance in recent years compared to peers. The Board Members reviewed materials and discussed with NAM the factors contributing to the shift in performance including, among other things, the degree of risk undertaken by peers compared to the municipal closed-end funds (such as through the increased use of leverage or taking concentrated positions in high risk credits). In addition, the Board Members also considered a fund's dividend performance and the extent of any secondary market discounts. The Board Members noted NAM's efforts to evaluate the factors affecting performance and determine whether modification to a fund's investment strategy is necessary or appropriate, and concluded that they were satisfied with the steps being taken. C. FEES, EXPENSES AND PROFITABILITY 1. FEES AND EXPENSES During the annual review, 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. In reviewing the fee schedule for a Fund, the Board Members 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). The Board Members further 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 had significant overlap or even consisted entirely of the same unaffiliated funds. In reviewing the comparisons of fee and expense information, the Board Members recognized that in certain cases, the fund size relative to peers, the small size and odd composition of the Peer Group (including differences in objectives and strategies), expense anomalies, timing of information used or other factors impacting the comparisons thereby limited some of the usefulness of the comparative data. The Board Members also considered the differences in the use of leverage. Based on their review of the fee and expense information provided, the Board Members determined that each Fund's net total expense ratio was within an acceptable range compared to peers. 89 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) 2. COMPARISONS WITH THE FEES OF OTHER CLIENTS At the annual review, the Board Members further reviewed data comparing the advisory fees of NAM with fees NAM charges to other clients. With respect to municipal funds, such clients include NAM's municipal separately managed accounts. In general, the advisory fees charged for separate accounts are somewhat lower than the advisory fees assessed to the Funds. The Board Members considered the differences in the product types, including, but not limited to, the services provided, the structure and operations, product distribution and costs thereof, portfolio investment policies, investor profiles, account sizes and regulatory requirements. The Board Members noted, in particular, that the range of services provided to the Funds (as discussed above) is much more extensive than that provided to separately managed accounts. As described in further detail above, such additional services include, but are not limited to: product management, fund administration, oversight of third party service providers, administration of Board relations, and legal support. The Board Members noted that the Funds operate in a highly regulated industry requiring extensive compliance functions compared to other investment products. Given the inherent differences in the products, particularly the extensive services provided to the Funds, the Board Members believe such facts justify the different levels of fees. 3. PROFITABILITY OF NUVEEN In conjunction with its review of fees, the Board Members also considered the profitability of Nuveen for its advisory activities (which incorporated Nuveen's wholly-owned affiliated sub-advisers) and its financial condition. At the annual review, the Board Members reviewed the revenues and expenses of Nuveen's advisory activities for the last three years, the allocation methodology used in preparing the profitability data as well as the 2006 Annual Report for Nuveen. The Board Members noted this information supplemented the profitability information requested and received during the year to help keep them apprised of developments affecting profitability (such as changes in fee waivers and expense reimbursement commitments). In this regard, the Board Members noted the enhanced dialogue and information regarding profitability with NAM during the year, including more frequent meetings and updates from Nuveen's corporate finance group. The Board Members also 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 profit margins of various unaffiliated management firms with similar amounts of assets under management prepared by Nuveen. In reviewing profitability, the Board Members recognized the subjective nature of determining profitability which may be affected by numerous factors, including the allocation of expenses. Further, the Board Members recognized the difficulties in making comparisons as the profitability of other advisers generally is not publicly available and the profitability information that is available for certain advisers or management firms may not be representative of the industry and may be affected by, among other things, the adviser's particular business mix, capital costs, types of funds managed and expense allocations. Notwithstanding the foregoing, the Board Members reviewed Nuveen's methodology and assumptions for allocating expenses across product lines to determine profitability. Last year, the Board Members also designated an Independent Board Member as a point person for the Board to review the methodology determinations during the year and any refinements thereto, which relevant information produced from such process was reported to the full Board. In reviewing profitability, the Board Members recognized Nuveen's increased investment in its fund business. Based on its review, the Board Members concluded that Nuveen's level of profitability for its advisory activities was reasonable in light of the services provided. In evaluating the reasonableness of the compensation, the Board Members also considered other amounts paid to NAM by the Funds as well as any indirect benefits (such as soft dollar arrangements, if any) NAM and its affiliates receive, or are expected to receive, that are directly attributable to the management of the Funds, if any. See Section E below for additional information on indirect benefits NAM may receive as a result of its relationship with the Funds. Based on their review of the overall fee arrangements of each Fund, the Board Members determined that the advisory fees and expenses of the Funds were reasonable. 90 D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE With respect to economies of scale, the Board Members recognized the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure the shareholders share in these benefits, the Board Members reviewed and considered the breakpoints in the advisory fee schedules that reduce advisory fees. In addition to advisory fee breakpoints, the Board also approved a complex-wide fee arrangement in 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 Board Members noted that the last complex-wide asset level breakpoint for the complex-wide fee schedule was at $91 billion and that the Board Members anticipated further review and/or negotiations prior to the assets of the Nuveen complex reaching such threshold. Based on their review, the Board Members concluded that the breakpoint schedule and complex-wide fee arrangement were acceptable and desirable in providing benefits from economies of scale to shareholders, subject to further evaluation of the complex-wide fee schedule as assets in the complex increase. See Section II, Paragraph D - "Approval of the New Investment Management Agreements - Economies of Scale and Whether Fee Levels Reflect These Economies of Scale" for information regarding subsequent modifications to the complex-wide fee. E. INDIRECT BENEFITS In evaluating fees, the Board Members also considered any indirect benefits or profits NAM or its affiliates may receive as a result of its relationship with each Fund. With respect to closed-end funds, the Board Members considered the revenues received by affiliates of NAM 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 Board Members considered whether NAM received any benefits from soft dollar arrangements whereby a portion of the commissions paid by a Fund for brokerage may be used to acquire research that may be useful to NAM in managing the assets of the Funds and other clients. With respect to NAM, the Board Members noted that NAM does not currently have any soft dollar arrangements; however, to the extent certain bona fide agency transactions that occur on markets that traditionally trade on a principal basis and riskless principal transactions are considered as generating "commissions," NAM intends to comply with the applicable safe harbor provisions. Based on their review, the Board Members concluded that any indirect benefits received by NAM as a result of its relationship with the Funds were reasonable and within acceptable parameters. F. OTHER CONSIDERATIONS The Board Members did not identify any single factor discussed previously as all-important or controlling in their considerations to continue an advisory contract. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the Original Investment Management Agreements are fair and reasonable, that NAM's fees are reasonable in light of the services provided to each Fund and that the renewal of the Original Investment Management Agreements be approved. II. APPROVAL OF THE NEW INVESTMENT MANAGEMENT AGREEMENTS Following the May Meeting, the Board Members were advised of the potential Transaction. As noted above, the completion of the Transaction would terminate each of the Original Investment Management Agreements. Accordingly, at the July Meeting, the Board of each Fund, including the Independent Board Members, unanimously approved the New Investment Management Agreements on behalf of the respective Funds. Leading up to the July Meeting, the Board Members had several meetings and deliberations with and without Nuveen management present, and with the advice of legal counsel, regarding the proposed Transaction as outlined below. On June 8, 2007, the Board Members held a special telephonic meeting to discuss the proposed Transaction. At that meeting, the Board Members established a special ad hoc committee comprised solely of Independent Board Members to focus on the Transaction and to keep the Independent Board Members updated with developments regarding the Transaction. On June 15, 2007, the ad hoc committee discussed with representatives of NAM the Transaction and modifications to the complex-wide fee schedule that 91 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) would generate additional fee savings at specified levels of complex-wide asset growth. Following the foregoing meetings and several subsequent telephonic conferences among Independent Board Members and independent counsel, and between Independent Board Members and representatives of Nuveen, the Board met on June 18, 2007 to further discuss the proposed Transaction. Immediately prior to and then again during the June 18, 2007 meeting, the Independent Board Members met privately with their independent legal counsel. At that meeting, the Board met with representatives of MDP, of Goldman Sachs, Nuveen's financial adviser in the Transaction, and of the Nuveen Board to discuss, among other things, the history and structure of MDP, the terms of the proposed Transaction (including the financing terms), and MDP's general plans and intentions with respect to Nuveen (including with respect to management, employees, and future growth prospects). On July 9, 2007, the Board also met to be updated on the Transaction as part of a special telephonic Board meeting. The Board Members were further updated at a special in-person Board meeting held on July 19, 2007 (one Independent Board Member participated telephonically). Subsequently, on July 27, 2007, the ad hoc committee held a telephonic conference with representatives of Nuveen and MDP to further discuss, among other things, the Transaction, the financing of the Transaction, retention and incentive plans for key employees, the effect of regulatory restrictions on transactions with affiliates after the Transaction, and current volatile market conditions and their impact on the Transaction. In connection with their review of the New Investment Management Agreements, the Independent Board Members, through their independent legal counsel, also requested in writing and received additional information regarding the proposed Transaction and its impact on the provision of services by NAM and its affiliates. The Independent Board Members received, well in advance of the July Meeting, materials which outlined, among other things: [] the structure and terms of the Transaction, including MDP's co-investor entities and their expected ownership interests, and the financing arrangements that will exist for Nuveen following the closing of the Transaction; [] the strategic plan for Nuveen following the Transaction; [] the governance structure for Nuveen following the Transaction; [] any anticipated changes in the operations of the Nuveen funds following the Transaction, including changes to NAM's and Nuveen's day-to-day management, infrastructure and ability to provide advisory, distribution or other applicable services to the Funds; [] any changes to senior management or key personnel who work on Fund related matters (including portfolio management, investment oversight, and legal/compliance) and any retention or incentive arrangements for such persons; [] any anticipated effect on each Fund's expense ratio (including advisory fees) following the Transaction; [] any benefits or undue burdens imposed on the Funds as a result of the Transaction; [] any legal issues for the Funds as a result of the Transaction; [] the nature, quality and extent of services expected to be provided to the Funds following the Transaction, changes to any existing services and policies affecting the Funds, and cost-cutting efforts, if any, that may impact such services or policies; [] any conflicts of interest that may arise for Nuveen or MDP with respect to the Funds; [] the costs associated with obtaining necessary shareholder approvals and who would bear those costs; and [] from legal counsel, a memorandum describing the applicable laws, regulations and duties in approving advisory contracts, including, in particular, with respect to a change of control. 92 Immediately preceding the July Meeting, representatives of MDP met with the Board to further respond to questions regarding the Transaction. After the meeting with MDP, the Independent Board Members met with independent legal counsel in executive session. At the July Meeting, Nuveen also made a presentation and responded to questions. Following the presentations and discussions of the materials presented to the Board, the Independent Board Members met again in executive session with their counsel. As outlined in more detail below, the Independent Board Members considered all factors they believed relevant with respect to each Fund, including the impact that the Transaction could be expected to have on the following: (a) the nature, extent and quality of services to be provided; (b) the investment performance of the Funds; (c) the costs of the services and profits to be realized by Nuveen and its affiliates; (d) the extent to which economies of scale would be realized; and (e) whether fee levels reflect those economies of scale for the benefit of investors. As noted above, the Board Members had completed their annual review of the respective Original Investment Management Agreements at the May Meeting and many of the factors considered at the annual review were applicable to their evaluation of the New Investment Management Agreements. Accordingly, in evaluating the New Investment Management Agreements, the Board Members relied upon their knowledge and experience with NAM and considered the information received and their evaluations and conclusions drawn at the annual review. While the Board reviewed many Nuveen funds at the July Meeting, the Independent Board Members evaluated all information available to them on a fund-by-fund basis, and their determinations were made separately in respect of each Fund. A. NATURE, EXTENT AND QUALITY OF SERVICES In evaluating the nature, quality and extent of the services expected to be provided by NAM under the New Investment Management Agreements, the Independent Board Members considered, among other things, the expected impact, if any, of the Transaction on the operations, facilities, organization and personnel of NAM; the potential implications of regulatory restrictions on the Funds following the Transaction; the ability of NAM and its affiliates to perform their duties after the Transaction; and any anticipated changes to the current investment and other practices of the Funds. The Board noted that the terms of each New Investment Management Agreement, including the fees payable thereunder, are substantially identical to those of the Original Investment Management Agreement relating to the same Fund (with both reflecting reductions to fee levels in the complex-wide fee schedule for complex-wide assets in excess of $80 billion that have an effective date of August 20, 2007). The Board considered that the services to be provided and the standard of care under the New Investment Management Agreements are the same as the Original Investment Management Agreements. The Board Members further noted that key personnel who have responsibility for the Funds in each area, including portfolio management, investment oversight, fund management, fund operations, product management, legal/compliance and board support functions, are expected to be the same following the Transaction. The Board Members considered and are familiar with the qualifications, skills and experience of such personnel. The Board also considered certain information regarding anticipated retention or incentive plans designed to retain key personnel. Further, the Board Members noted that no changes to Nuveen's infrastructure or operations as a result of the Transaction were anticipated other than potential enhancements as a result of an expected increase in the level of investment in such infrastructure and personnel. The Board noted MDP's representations that it does not plan to have a direct role in the management of Nuveen, appointing new management personnel, or directly impacting individual staffing decisions. The Board Members also noted that there were not any planned "cost cutting" measures that could be expected to reduce the nature, extent or quality of services. After consideration of the foregoing, the Board Members concluded that no diminution in the nature, quality and extent of services provided to the Funds and their shareholders is expected. In addition to the above, the Board Members considered potential changes in the operations of each Fund. In this regard, the Board Members considered the potential effect of regulatory restrictions on the Funds' transactions with future affiliated persons. During their deliberations, it was noted that, after the Transaction, a subsidiary of Merrill Lynch is expected to have an ownership interest in Nuveen at a level that will make Merrill Lynch an affiliated person of Nuveen. The Board Members recognized that applicable law would generally prohibit the Funds from engaging in securities transactions with Merrill Lynch as principal, and would also impose restrictions on using Merrill Lynch for agency transactions. They recognized that having MDP and Merrill Lynch as affiliates may restrict the Nuveen funds' ability to invest in securities of issuers controlled by MDP or issued by Merrill Lynch and its affiliates even if not bought directly from MDP or Merrill 93 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) Lynch as principal. They also recognized that various regulations may require the Nuveen funds to apply investment limitations on a combined basis with affiliates of Merrill Lynch. The Board Members considered information provided by NAM regarding the potential impact on the Nuveen funds' operations as a result of these regulatory restrictions. The Board Members considered, in particular, the Nuveen funds that may be impacted most by the restricted access to Merrill Lynch, including: municipal funds (particularly certain state-specific funds), senior loan funds, taxable fixed income funds, preferred security funds and funds that heavily use derivatives. The Board Members considered such funds' historic use of Merrill Lynch as principal in their transactions and information provided by NAM regarding the expected impact resulting from Merrill Lynch's affiliation with Nuveen and available measures that could be taken to minimize such impact. NAM informed the Board Members that, although difficult to determine with certainty, its management did not believe that MDP's or Merrill Lynch's status as an affiliate of Nuveen would have a material adverse effect on any Nuveen fund's ability to pursue its investment objectives and policies. In addition to the regulatory restrictions considered by the Board, the Board Members also considered potential conflicts of interest that could arise between the Nuveen funds and various parties to the Transaction and discussed possible ways of addressing such conflicts. Based on its review along with its considerations regarding services at the annual review, the Board concluded that the Transaction was not expected to adversely affect the nature, quality or extent of services provided by NAM and that the expected nature, quality and extent of such services supported approval of the New Investment Management Agreements. B. PERFORMANCE OF THE FUNDS With respect to the performance of the Funds, the Board considered that the portfolio management personnel responsible for the management of the Funds' portfolios were expected to continue to manage the portfolios following the completion of the Transaction. In addition, the Board Members recently reviewed Fund performance at the May Meeting, as described above, and determined that Fund performance was satisfactory or better, subject to the following. With respect to certain municipal closed-end funds with relative short-term underperformance, the Board Members concluded NAM was taking steps to evaluate the factors affecting performance and those steps would continue following the Transaction. Further, the investment policies and strategies were not expected to change as a result of the Transaction. In light of the foregoing factors, along with the prior findings regarding performance at the annual review, the Board concluded that its findings with respect to performance supported approval of the New Investment Management Agreements. C. FEES, EXPENSES AND PROFITABILITY As described in more detail above, during the annual review, the Board Members considered, among other things, the management fees and expenses of the Funds, the breakpoint schedules, and comparisons of such fees and expenses with peers. At the annual review, the Board Members determined that the respective Fund's advisory fees and expenses were reasonable. In evaluating the costs of services to be provided by NAM under the New Investment Management Agreements and the profitability of Nuveen for its advisory activities, the Board Members considered their prior conclusions at the annual review and whether the management fees or other expenses would change as a result of the Transaction. As described above, the investment management fee is composed of two components--a fund-level component and complex-wide level component. The fee schedule under the New Investment Management Agreements to be paid to NAM is identical to that under the Original Investment Management Agreements, including the modified complex-wide fee schedule. As noted above, the Board recently approved a modified complex-wide fee schedule that would generate additional fee savings on complex-wide assets above $80 billion. The modifications have an effective date of August 20, 2007 and are part of the Original Investment Management Agreements. Accordingly, the terms of the complex-wide component under the New Investment Management Agreements are the same as under the Original Investment Management Agreements. The Board Members also noted that Nuveen has committed for a period of two years from the 94 date of closing of the Transaction that it will not increase gross management fees for any Nuveen fund and will not reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels. Based on the information provided, the Board Members did not expect that overall Fund expenses would increase as a result of the Transaction. In addition, the Board Members considered that additional fund launches were anticipated after the Transaction which would result in an increase in total assets under management in the complex and a corresponding decrease in overall management fees under the complex-wide fee schedule. Taking into consideration the Board's prior evaluation of fees and expenses at the annual renewal, and the modification to the complex-wide fee schedule, the Board determined that the management fees and expenses were reasonable. While it is difficult to predict with any degree of certainty the impact of the Transaction on Nuveen's profitability, at the recent annual review, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities was reasonable. During the year, the Board Members had noted the enhanced dialogue regarding profitability and the appointment of an Independent Board Member as a point person to review methodology determinations and refinements in calculating profitability. Given their considerations at the annual review and the modifications to the complex-wide fee schedule, the Board Members were satisfied that Nuveen's level of profitability for its advisory activities continues to be reasonable. D. ECONOMIES OF SCALE AND WHETHER FEE LEVELS REFLECT THESE ECONOMIES OF SCALE The Board Members have been cognizant of economies of scale and the potential benefits resulting from the costs of a Fund being spread over a larger asset base. To help ensure that shareholders share in the benefits derived from economies of scale, the Board adopted the complex-wide fee arrangement in 2004. At the May Meeting, the Board Members reviewed the complex-wide fee arrangements and noted that additional negotiations may be necessary or appropriate as the assets in the complex approached the $91 billion threshold. In light of this assessment coupled with the upcoming Transaction, at the June 15, 2007 meeting, the ad hoc committee met with representatives of Nuveen to further discuss modifications to the complex-wide fee schedule that would generate additional savings for shareholders as the assets of the complex grow. The proposed terms for the complex-wide fee schedule are expressed in terms of targeted cumulative savings at specified levels of complex-wide assets, rather than in terms of targeted marginal complex-wide fee rates. Under the modified schedule, the schedule would generate additional fee savings beginning at complex-wide assets of $80 billion in order to achieve targeted cumulative annual savings at $91 billion of $28 million on a complex-wide level (approximately $0.6 million higher than those generated under the then current schedule) and generate additional fee savings for asset growth above complex-wide assets of $91 billion in order to achieve targeted annual savings at $125 billion of assets of approximately $50 million on a complex-wide level (approximately $2.2 million higher annually than that generated under the then current schedule). At the July Meeting, the Board approved the modified complex-wide fee schedule for the Original Investment Management Agreements and these same terms will apply to the New Investment Management Agreements. Accordingly, the Board Members believe that the breakpoint schedules and revised complex-wide fee schedule are appropriate and desirable in ensuring that shareholders participate in the benefits derived from economies of scale. E. INDIRECT BENEFITS During their recent annual review, the Board Members considered any indirect benefits that NAM may receive as a result of its relationship with the Funds, as described above. As the policies and operations of Nuveen are not anticipated to change significantly after the Transaction, such indirect benefits should remain after the Transaction. The Board Members further considered any additional indirect benefits to be received by NAM or its affiliates after the Transaction. The Board Members noted that other than benefits from its ownership interest in Nuveen and indirect benefits from fee revenues paid by the Funds under the management agreements and other Board-approved relationships, it was currently not expected that MDP or its affiliates would derive any benefit from the Funds as a result of the Transaction or transact any business with or on behalf of the Funds (other than perhaps potential Fund acquisitions, in secondary market transactions, of securities issued by MDP portfolio companies); or that Merrill Lynch or its affiliates would derive any benefits from the Funds as a result of the Transaction (noting that, indeed, Merrill Lynch would stand to experience the discontinuation of principal transaction activity with the Nuveen funds and likely would experience a noticeable reduction in the volume of agency transactions with the Nuveen funds). 95 ANNUAL INVESTMENT MANAGEMENT AGREEMENT APPROVAL PROCESS (continued) F. OTHER CONSIDERATIONS In addition to the factors above, the Board Members also considered the following with respect to the Funds: [] Nuveen would rely on the provisions of Section 15(f) of the 1940 Act. Section 15(f) provides, in substance, that when a sale of a controlling interest in an investment adviser occurs, the investment adviser or any of its affiliated persons may receive any amount or benefit in connection with the sale so long as (i) during the three-year period following the consummation of a transaction, at least 75% of the investment company's board of directors must not be "interested persons" (as defined in the 1940 Act) of the investment adviser or predecessor adviser and (ii) an "unfair burden" (as defined in the 1940 Act, including any interpretations or no-action letters of the SEC) must not be imposed on the investment company as a result of the transaction relating to the sale of such interest, or any express or implied terms, conditions or understanding applicable thereto. In this regard, to help ensure that an unfair burden is not imposed on the Nuveen funds, Nuveen has committed for a period of two years from the date of the closing of the Transaction (i) not to increase gross management fees for any Nuveen fund; (ii) not to reduce voluntary expense reimbursement levels for any Nuveen fund from their currently scheduled prospective levels during that period; (iii) that no Nuveen fund whose portfolio is managed by a Nuveen affiliate shall use Merrill Lynch as a broker with respect to portfolio transactions done on an agency basis, except as may be approved in the future by the Compliance Committee of the Board; and (iv) that NAM shall not cause the Funds and other municipal funds that NAM manages, as a whole, to enter into portfolio transactions with or through the other minority owners of Nuveen, on either a principal or an agency basis, to a significantly greater extent than both what one would expect an investment team to use such firm in the normal course of business, and what NAM has historically done, without prior Board or Compliance Committee approval (excluding the impact of proportionally increasing the use of such other "minority owners" to fill the void necessitated by not being able to use Merrill Lynch). [] The Funds would not incur any costs in seeking the necessary shareholder approvals for the New Investment Management Agreements (except for any costs attributed to seeking shareholder approvals of Fund specific matters unrelated to the Transaction, such as approval of Board Members, in which case a portion of such costs will be borne by the applicable Funds). [] The reputation, financial strength and resources of MDP. [] The long-term investment philosophy of MDP and anticipated plans to grow Nuveen's business to the benefit of the Nuveen funds. [] The benefits to the Nuveen funds as a result of the Transaction including: (i) as a private company, Nuveen may have more flexibility in making additional investments in its business; (ii) as a private company, Nuveen may be better able to structure compensation packages to attract and retain talented personnel; (iii) as certain of Nuveen's distribution partners are expected to be equity or debt investors in Nuveen, Nuveen may be able to take advantage of new or enhanced distribution arrangements with such partners; and (iv) MDP's experience, capabilities and resources that may help Nuveen identify and acquire investment teams or firms and finance such acquisitions. [] The historic premium and discount levels at which the shares of the Nuveen funds have traded at specified dates with particular focus on the premiums and discounts after the announcement of the Transaction, taking into consideration recent volatile market conditions and steps or initiatives considered or undertaken by NAM to address discount levels. 96 G. CONCLUSION The Board Members did not identify any single factor discussed previously as all-important or controlling. The Board Members, including the Independent Board Members, unanimously concluded that the terms of the New Investment Management Agreements are fair and reasonable, that the fees therein are reasonable in light of the services to be provided to each Fund and that the New Investment Management Agreements should be approved and recommended to shareholders. III. APPROVAL OF INTERIM CONTRACTS As noted above, at the July Meeting, the Board Members, including the Independent Board Members, unanimously approved the Interim Investment Management Agreements. If necessary to assure continuity of advisory services, the Interim Investment Management Agreements will take effect upon the closing of the Transaction if shareholders have not yet approved the New Investment Management Agreements. The terms of each Interim Investment Management Agreement are substantially identical to those of the corresponding Original Investment Management Agreement and New Investment Management Agreement, respectively, except for certain term and escrow provisions. In light of the foregoing, the Board Members, including the Independent Board Members, unanimously determined that the scope and quality of services to be provided to the Funds under the respective Interim Investment Management Agreement are at least equivalent to the scope and quality of services provided under the applicable Original Investment Management Agreement. 97 Reinvest Automatically EASILY and CONVENIENTLY NUVEEN MAKES REINVESTING EASY. A PHONE CALL IS ALL IT TAKES TO SET UP YOUR REINVESTMENT ACCOUNT. NUVEEN CLOSED-END FUNDS DIVIDEND REINVESTMENT PLAN Your Nuveen Closed-End Fund allows you to conveniently reinvest dividends and/or capital gains distributions in additional Fund shares. By choosing to reinvest, you'll be able to invest money regularly and automatically, and watch your investment grow through the power of tax-free compounding. Just like dividends or distributions in cash, there may be times when income or capital gains taxes may be payable on dividends or distributions that are reinvested. It is important to note that an automatic reinvestment plan does not ensure a profit, nor does it protect you against loss in a declining market. EASY AND CONVENIENT To make recordkeeping easy and convenient, each month you'll receive a statement showing your total dividends and distributions, the date of investment, the shares acquired and the price per share, and the total number of shares you own. HOW SHARES ARE PURCHASED The shares you acquire by reinvesting will either be purchased on the open market or newly issued by the Fund. If the shares are trading at or above net asset value at the time of valuation, the Fund will issue new shares at the greater of the net asset value or 95% of the then-current market price. If the shares are trading at less than net asset value, shares for your account will be purchased on the open market. If the Plan Agent begins purchasing Fund shares on the open market while shares are trading below net asset value, but the Fund's shares subsequently trade at or above their net asset value before the Plan Agent is able to complete its purchases, the Plan Agent may cease open-market purchases and may invest the uninvested portion of the distribution in newly-issued Fund shares at a price equal to the greater of the shares' net asset value or 95% of the shares' market value on the last business day immediately prior to the purchase date. Dividends and distributions received to purchase shares in the open market will normally be invested shortly after the dividend payment date. No interest will be paid on dividends and distributions awaiting reinvestment. Because the market price of the shares may increase before purchases are completed, the average purchase price 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. 98 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. 99 NOTES 100 NOTES 101 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 the number of years to maturity of the bonds in a Fund's portfolio, computed by weighting each bond's time to maturity (the date the security comes due) by the market value of the security. This figure does not account for the likelihood of prepayments or the exercise of call provisions unless an escrow account has been established to redeem the bond before maturity. The market value weighting for an investment in an inverse floating rate security is the value of the portfolio's residual interest in the inverse floating rate trust, and does not include the value of the floating rate securities issued by the trust. [] INVERSE FLOATERS: Inverse floating rate securities are created by depositing a municipal bond, typically with a fixed interest rate, into a special purpose trust created by a broker-dealer. This trust, in turn, (a) issues floating rate certificates typically paying short-term tax-exempt interest rates to third parties in amounts equal to some fraction of the deposited bond's par amount or market value, and (b) issues an inverse floating rate certificate (sometimes referred to as an "inverse floater") to an investor (such as a Fund) interested in gaining investment exposure to a long-term municipal bond. The income received by the holder of the inverse floater varies inversely with the short-term rate paid to the floating rate certificates' holders, and in most circumstances the holder of the inverse floater bears substantially all of the underlying bond's downside investment risk. The holder of the inverse floater typically also benefits disproportionately from any potential appreciation of the underlying bond's value. Hence, an inverse floater essentially represents an investment in the underlying bond on a leveraged basis. [] LEVERAGE-ADJUSTED DURATION: Duration is a measure of the expected period over which a bond's principal and interest will be paid, and consequently is a measure of the sensitivity of a bond's or bond Fund's value to changes when market interest rates change. Generally, the longer a bond's or Fund's duration, the more the price of the bond or Fund will change as interest rates change. Leverage-adjusted duration takes into account the leveraging process for a Fund and therefore is longer than the duration of the Fund's portfolio of bonds. [] MARKET YIELD (ALSO KNOWN AS DIVIDEND YIELD OR CURRENT YIELD): An investment's current annualized dividend divided by its current market price. [] NET ASSET VALUE (NAV): A Fund's common share NAV per share is calculated by subtracting the liabilities of the Fund (including any MuniPreferred shares issued in order to leverage the Fund) from its total assets and then dividing the remainder by the number of shares outstanding. Fund NAVs are calculated at the end of each business day. [] TAXABLE-EQUIVALENT YIELD: The yield necessary from a fully taxable investment to equal, on an after-tax basis, the yield of a municipal bond investment. [] ZERO COUPON BOND: A zero coupon bond does not pay a regular interest coupon to its holders during the life of the bond. Tax-exempt income to the holder of the bond comes from accretion of the difference between the original purchase price of the bond at issuance and the par value of the bond at maturity and is effectively paid at maturity. The market prices of zero coupon bonds generally are more volatile than the market prices of bonds that pay interest periodically. 102 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 twelve-month period ended June 30, 2007, 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 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. INVESTMENT POLICY CHANGES In May 2007, the Funds' Board of Directors/Trustees voted to permit the Funds' to make loans from Fund assets to certain bond issuers. The amounts of these loans are subject to strict limits. This policy is designed to enhance the Funds' ability to meet their Funds' investment objectives by providing for increased portfolio management flexibility, greater diversification potential, and opportunities for increased capital appreciation over time. BOARD OF DIRECTORS/TRUSTEES Robert P. Bremner Jack B. Evans William C. Hunter David J. Kundert William J. Schneider Timothy R. Schwertfeger Judith M. Stockdale Carole E. Stone 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. During the period covered by this report, NQN, NVN, and NUN repurchased 97,300, 118,800, and 171,600 common shares, respectively. Any future repurchases will be reported to shareholders in the next annual or semi-annual report. 103 Nuveen Investments: -------------------------------------------------------------------------------- SERVING INVESTORS FOR GENERATIONS Since 1898, financial advisors and their clients have relied on Nuveen Investments to provide dependable investment solutions. For the past century, Nuveen Investments has adhered to the belief that the best approach to investing is to apply conservative risk-management principles to help minimize volatility. Building on this tradition, we today offer a range of high quality equity and fixed-income solutions that are integral to a well-diversified core portfolio. Our clients have come to appreciate this diversity, as well as our continued adherence to proven, long-term investing principles. WE OFFER MANY DIFFERENT INVESTING SOLUTIONS FOR OUR CLIENTS' DIFFERENT NEEDS. Managing $170 billion in assets as of September 30, 2007, 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 six distinct brands: Nuveen, a leader in fixed-income investments; NWQ, a leader in value-style equities; Rittenhouse, a leader in growth-style equities; Symphony, a leading institutional manager of market-neutral alternative investment portfolios; Santa Barbara, a leader in growth equities; and Tradewinds, a leader in global equities. FIND OUT HOW WE CAN HELP YOU REACH YOUR FINANCIAL GOALS. To learn more about the products and services Nuveen Investments offers, talk to your financial advisor, or call us at (800) 257-8787. Please read the information provided carefully before you invest. Be sure to obtain a prospectus, where applicable. Investors should consider the investment objective and policies, risk considerations, charges and expenses of the Fund carefully before investing. The prospectus contains this and other information relevant to an investment in the Fund. For a prospectus, please contact your securities representative or Nuveen Investments, 333 W. Wacker Dr., Chicago, IL 60606. Please read the prospectus carefully before you invest or send money. LEARN MORE ABOUT NUVEEN FUNDS AT: WWW.NUVEEN.COM/ETF SHARE PRICES FUND DETAILS DAILY FINANCIAL NEWS INVESTOR EDUCATION INTERACTIVE PLANNING TOOLS EAN-B-0907D 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, 2007 $ 11,140 $ 0 $ 500 $ 1,550 ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------------------------------- September 30, 2006 $ 10,589 $ 0 $ 400 $ 2,950 ---------------------------------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% 0% pursuant to pre-approval exception ----------------------------------------------------------------------------------------------------------------------------------
(1) "Audit Fees" are the aggregate fees billed for professional services for the audit of the Fund's annual financial statements and services provided in connection with statutory and regulatory filings or engagements. (2) "Audit Related Fees" are the aggregate fees billed for assurance and related services reasonably related to the performance of the audit or review of financial statements and are not reported under "Audit Fees". (3) "Tax Fees" are the aggregate fees billed for professional services for tax advice, tax compliance, and tax planning. (4) "All Other Fees" are the aggregate fees billed for products and services for agreed upon procedures engagements performed for leveraged funds. SERVICES THAT THE FUND'S AUDITOR BILLED TO THE ADVISER AND AFFILIATED FUND SERVICE PROVIDERS The following tables show the amount of fees billed by Ernst & Young LLP to Nuveen Asset Management ("NAM" or the "Adviser"), and any entity controlling, controlled by or under common control with NAM ("Control Affiliate") that provides ongoing services to the Fund ("Affiliated Fund Service Provider"), for engagements directly related to the Fund's operations and financial reporting, during the Fund's last two full fiscal years. The tables also show the percentage of fees subject to the pre-approval exception. The pre-approval exception for services provided to the Adviser and any Affiliated Fund Service Provider (other than audit, review or attest services) waives the pre-approval requirement if: (A) the aggregate amount of all such services provided constitutes no more than 5% of the total amount of revenues paid to Ernst & Young LLP by the Fund, the Adviser and Affiliated Fund Service Providers during the fiscal year in which the services are provided that would have to be pre-approved by the Audit Committee; (B) the Fund did not recognize the services as non-audit services at the time of the engagement; and (C) the services are promptly brought to the Audit Committee's attention, and the Committee (or its delegate) approves the services before the Fund's audit is completed.
FISCAL YEAR ENDED AUDIT-RELATED FEES TAX FEES BILLED TO ALL OTHER FEES BILLED TO ADVISER AND ADVISER AND BILLED TO ADVISER AFFILIATED FUND AFFILIATED FUND AND AFFILIATED FUND SERVICE PROVIDERS SERVICE PROVIDERS SERVICE PROVIDERS --------------------------------------------------------------------------------------------------------- September 30, 2007 $ 0 $ 0 $ 0 --------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception --------------------------------------------------------------------------------------------------------- September 30, 2006 $ 0 $ 0 $ 0 --------------------------------------------------------------------------------------------------------- Percentage approved 0% 0% 0% pursuant to pre-approval exception ---------------------------------------------------------------------------------------------------------
NON-AUDIT SERVICES The following table shows the amount of fees that Ernst & Young LLP billed during the Fund's last two full fiscal years for non-audit services. The Audit Committee is required to pre-approve non-audit services that Ernst & Young LLP provides to the Adviser and any Affiliated Fund Services Provider, if the engagement related directly to the Fund's operations and financial reporting (except for those subject to the 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, 2007 $ 2,050 $ 0 $ 0 $ 2,050 September 30, 2006 $ 3,350 $ 0 $ 0 $ 3,350
"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, Jack B. Evans, William J. Schneider and David J. Kundert. Mr. Eugene S. Sunshine, who also served as a member of the Committee during this reporting period, resigned from the Board of Directors effective July 31, 2007. 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 P. 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 P. Steeves Registered Investment Company 41 $8.157 billion Other Pooled Investment Vehicles 0 $0 Other Accounts 0 $0 * Assets are as of September 30, 2007. None of the assets in these accounts are subject to an advisory fee based on performance. Compensation. Each portfolio manager's compensation consists of three basic elements--base salary, cash bonus and long-term incentive compensation. The compensation strategy is to annually compare overall compensation, including these three elements, to the market in order to create a compensation structure that is competitive and consistent with similar financial services companies. As discussed below, several factors are considered in determining each portfolio manager's total compensation. In any year these factors may include, among others, the effectiveness of the investment strategies recommended by the portfolio manager's investment team, the investment performance of the accounts managed by the portfolio manager, and the overall performance of Nuveen Investments, Inc. (the parent company of NAM). Although investment performance is a factor in determining the portfolio manager's compensation, it is not necessarily a decisive factor. The portfolio manager's performance is evaluated in part by comparing manager's performance against a specified investment benchmark. This fund-specific benchmark is a customized subset (limited to bonds in each Fund's specific state and with certain maturity parameters) of the S&P/Investortools Municipal Bond index, an index comprised of bonds held by managed municipal bond fund customers of Standard & Poor's Securities Pricing, Inc. that are priced daily and whose fund holdings aggregate at least $2 million. As of October 31, 2007, the S&P/Investortools Municipal Bond Index was comprised of 51,960 securities with an aggregate current market value of $1,017 billion. Base salary. Each portfolio manager is paid a base salary that is set at a level determined by NAM in accordance with its overall compensation strategy discussed above. NAM is not under any current contractual obligation to increase a portfolio manager's base salary. Cash bonus. Each portfolio manager is also eligible to receive an annual cash bonus. The level of this bonus is based upon evaluations and determinations made by each portfolio manager's supervisors, along with reviews submitted by his peers. These reviews and evaluations often take into account a number of factors, including the effectiveness of the investment strategies recommended to the NAM's investment team, the performance of the accounts for which he serves as portfolio manager relative to any benchmarks established for those accounts, his effectiveness in communicating investment performance to stockholders and their representatives, and his contribution to the NAM's investment process and to the execution of investment strategies. The cash bonus component is also impacted by the overall performance of Nuveen Investments, Inc. in achieving its business objectives. Long-term incentive compensation. 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, although the allocation procedures may provide allocation preferences to funds with special characteristics (such as favoring state funds versus national funds for allocations of in-state bonds). In addition, NAM has adopted a Code of Conduct that sets forth policies regarding conflicts of interest. Beneficial Ownership of Securities. As of September 30, 2007, the portfolio manager beneficially owned the following dollar range of equity securities issued by the Registrant and other Nuveen Funds managed by NAM's municipal investment team.
DOLLAR RANGE OF EQUITY SECURITIES DOLLAR RANGE OF BENEFICIALLY OWNED EQUITY IN THE REMAINDER OF SECURITIES NUVEEN FUNDS MANAGED BENEFICIALLY BY NAM'S MUNICIPAL NAME OF PORTFOLIO MANAGER FUND OWNED IN FUND INVESTMENT TEAM ---------------------------------------------------------------------------------------------------------------- Cathryn Steeves Nuveen Insured New York Dividend Advantage $0 $10,000-$50,000 Municipal Fund
PORTFOLIO MANAGER BIO: Cathryn P. Steeves, PhD is currently a portfolio manager for 42 state-specific municipal bond funds. She joined Nuveen in 1996 and worked as a senior analyst in the healthcare sector. Ms. Steeves 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/ Kevin J. McCarthy ---------------------------------------------- Kevin J. McCarthy Vice President and Secretary Date: December 6, 2007 ------------------------------------------------------------------- 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, 2007 ------------------------------------------------------------------- By (Signature and Title)* /s/ Stephen D. Foy ---------------------------------------------- Stephen D. Foy Vice President and Controller (principal financial officer) Date: December 6, 2007 ------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.